Gensol’s Finances Under NFRA Review After Fraud Allegations:

Gensol’s Finances Under NFRA Review After Fraud Allegations The basic investigation has been started by the National Financial Reporting Authority (NFRA) into the financial records of Gensol Engineering. This event took place after the fraud complaints came up. The review started based on a request which Sebi has made. This added pressure as there is already an investigation going on into the company. In April, strict actions were taken by SEBI on Gensol Engineering and its promoters, two brothers who were managing the company. SEBI ordered a forensic audit for checking on a deeper level into the company's finances and also stopped them from accessing the stock market. The initial reports showed the misuse of company's funds and improper corporate management. As the SEBI's record, the company borrowed Rs. 977.75 crore from lenders. Out of this, Rs. 663.89 were supposed to be used in buying of 6,400 electric vehicles (EVs) for leasing to Blusmart, a related company. Later in February, Gensol accepted that it only bought 4,704 EVs. This raised questions on the usage of the remaining money. The ICAI is also looking into this matter. ICAI is going to check thoroughly Gensol's financial statements and audit reports for the year 2023-24. It'll also look into the records of BluSmart. If any inaccuracies are found in the reports, then it'll be sent to disciplinary committee. This could also lead to action against the auditors involved. The share price of the company has also declined more than 40% in the last month since SEBI's report came out on April 15. The company's shares closed at Rs. 70.99 each on Tuesday on the BSE. The loans were taken from the government-backed lenders like the Indian Renewable Energy Development Agency and the Power Finance Corporation. According to SEBI the promoters used part of the fund for other purposes without following the corporate rules properly. These results in growing concerns regarding the improper financial management in the company.