ICAI says Paytms issue might be reviewed; Byju’s scrutiny going well

In the midst of the Paytm Payments Bank Ltd crisis, ICAI President said that the fintech firm's financial reporting review board may meet in the near future to discuss issues.

Scrutiny of Fintechs Firms

Reetu | Feb 26, 2024 |

ICAI says Paytms issue might be reviewed; Byju’s scrutiny going well

ICAI says Paytms issue might be reviewed; Byju’s scrutiny going well

In the midst of the Paytm Payments Bank Ltd crisis, Institute of Chartered Accountants of India President Ranjeet Kumar Agarwal said on Sunday that the fintech firm’s financial reporting review board (FRRB) may meet in the near future to discuss issues.

The statutory body’s FRRB is now reviewing the finances of tech-based education unicorn Byju’s due to claimed governance difficulties, and the process is going smoothly, according to the ICAI president.

“So far, we have not considered it (the Paytm issue), but the FRRB board will meet in the near future and will consider appropriate measures if necessary. So far, we have not made a decision on this topic,” said ICAI President Ranjeet Kumar Agarwal in an interview.

Newly elected ICAI committees, including the FRRB, are anticipated to meet beginning in March, he noted.

Notably, the banking sector regulator, the Reserve Bank of India, has already imposed limits on Paytm Payments Bank Ltd for purported regulatory problems.

The FRRB may decide whether to examine the accounts in light of claims of regulatory violations and their impact on the payment bank’s accounting, he said.

“The board has the choice of who and when to evaluate. It has a strong system,” the newly elected ICAI chairman stated.

When asked if the ICAI was waiting for a complaint on Paytm, Agarwal responded, “The institute can take cognizance both suo motu and through complaints. In Byju’s case, it was suo motu.”

Speaking about Byju’s, he stated that the board’s review is “going well, and the report is expected by the end of this year”.

The ICAI chief explained the FRRB structure, saying, “The board has a three-tier structure–technical, group, and then finally the board review.”

According to him, the FRRB has the authority to analyze listed companies’ financial statements.

“In cases of egregious carelessness, we conduct further investigation. If there are minor issues, we provide advisory guidance,” Agarwal explained.

It was established in July 2002 as a key wing of the ICAI, working to improve financial reporting processes and thereby increase investor confidence in audited statements.

Meanwhile, investors and the founder of Byju’s, a problematic edu-tech startup, clashed over alleged mismanagement and governance difficulties.

In an Extraordinary General Meeting on Friday, investors voted in favour of a leadership change and the relocation of NCLT.

The six investors who moved the resolutions own more than 32% of Think & Learn (T&L), which controls the online tuition platform Byju’s.

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