New Delhi, Apr 23 (PTI) Chartered accountants’ apex body ICAI will review the financial statements of crisis-hit Gensol Engineering Ltd and BluSmart Mobility Pvt Ltd for the 2023-24 fiscal.

The decision to review the two companies’ financial statements was taken at the board meeting of the ICAI’s Financial Reporting Review Board (FRRB) on Wednesday, according to the ICAI (Institute of Chartered Accountants of India) President Charanjot Singh Nanda.

Gensol Engineering has come under the regulatory scanner for alleged fund diversions and governance lapses, with regulator Sebi, last week, barring the company’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. BluSmart Mobility, which offers ride hailing services, is promoted by Anmol Singh Jaggi.

Nanda told PTI that FRRB has decided to undertake review of the financial statements and the statutory auditor’s report of Gensol Engineering and BluSmart Mobility for the financial year 2023-24.

FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others.

Also, FRRB assesses the compliance with various guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI).

In case serious accounting irregularities are found in the financial statements, the matter will be referred to ICAI’s Director Discipline for a detailed probe and also to the relevant regulatory bodies.

Sebi’s order on April 15 came against the Gensol promoters amid accusations of siphoning off loan funds from their publicly-listed company Gensol Engineering for personal use, raising concerns over corporate governance and financial misconduct.

On April 21, the corporate affairs ministry told PTI that it will take necessary action in the Gensol Engineering matter after examining market regulator Sebi’s order against the company.

The ministry is implementing the Companies Act, 2013 under which it has various powers to deal with instances of corporate misdoings. Among other options, the Registrar of Companies (RoC) can inspect the books of the company concerned and in case there are significant financial misdoings, a probe by the Serious Fraud Investigation Office (SFIO) can also be ordered. PTI RAM HVA