Gensol Engineering Limited has informed the Exchange about Initiation of Forensic Audit
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Awaiting price reaction for this filing.
Gensol Engineering has disclosed that SEBI has appointed M/s Raju and Prasad, Chartered Accountants to conduct a forensic audit of the company's financial statements for four financial years ending March 2022, March 2023, March 2024, and March 2025. This follows an SEBI Ex-Parte Interim Order dated April 15, 2025, in which SEBI stated it has reasonable grounds to believe the company's financial disclosures and business transactions may have been handled in a manner detrimental to investors. The forensic audit will examine potential manipulation of books of accounts, misstatements in financial statements, siphoning of company funds by promoters/directors/KMPs, tracing of equity and debt funds raised, related-party transactions, and the role of the audit committee and board. The company has stated it will cooperate with the forensic auditors.
This is a significant negative development for shareholders. A forensic audit signals serious regulatory scrutiny into the company's financials and governance, which could lead to penalties, restatements, or further enforcement action. The stock is likely to face heightened selling pressure and volatility as the investigation progresses.