The Institute of Chartered Accountants of India (ICAI) has begun a probe into the accounting discrepancies in forex derivatives at IndusInd Bank.
The Financial Reporting Review Board of the ICAI has on Thursday initiated a suo moto review into the issue, said ICAI President Charanjot Singh Nanda.
In an interview with Business Today, Nanda said the FRRB in its 140th meeting on Thursday has decided to begin a review of IndusInd Bank. This will involve the financial statements and statutory auditor reports of the private sector lender for the financial years 2023-24 and 2024-25, he explained.
“This is a proactive decision taken by the FRRB. Based on its review, if any discrepancies are found, the matter will be referred to the disciplinary directorate of the ICAI,” Nanda said.
The FRRB is an important wing of the ICAI that looks into compliance with accounting principles and reviews the general financial statements of enterprises and their auditors’ reports.
It is currently also reviewing the books of Gensol Engineering and BluSmart Mobility for the financial year 2023-24.
Nanda said that both the reviews are likely to be completed within six months period.
The disciplinary committee of ICAI is also conducting hearings to investigate potential lapses by the auditors of Byju’s.
In the case of IndusInd Bank, Sebi in an interim order has imposed a trading ban on former IndusInd Bank CEO Sumant Kathpalia and four other senior executives for allegedly engaging in insider trading tied to a major financial irregularity at the bank.
