Auditors flag boAt's financial discrepancies, subsidiary risks in DRHP

• boAt's auditors, BSR & Co LLP, flagged financial discrepancies and compliance lapses in its revised DRHP.
• Discrepancies included mismatches in financial data submitted to lenders and diversion of short-term borrowings for long-term subsidiary needs.
• Auditors noted compliance issues and material uncertainty over the ability of two overseas subsidiaries (Kaha Pte Ltd, Imagine Marketing Singapore Pte Ltd) to meet liabilities.
• Other red flags included statutory due arrears, audit-trail non-compliance, inadequate record backup, and excess director remuneration.
• boAt plans to raise Rs 1,500 crore through its IPO, down from Rs 2,000 crore, and claims to have taken corrective actions for the flagged issues.

Why It Matters: Auditor concerns raise red flags for boAt's IPO and financial stability.