boAt IPO: Auditors Flag Financial Discrepancies, Control Issues

• boAt's updated IPO papers reveal auditor concerns over financial discrepancies between lender submissions and internal records for FY23-FY25.
• Auditors flagged issues including short-term funds diverted for long-term needs, material uncertainty for two overseas subsidiaries, and delays in statutory payments.
• Other findings included non-compliance with audit trail requirements, inadequate data backups, and director remuneration exceeding limits, later regularized.
• boAt states it has taken corrective actions, but auditors caution similar issues could arise again, emphasizing stronger internal processes.
• The proposed ₹1,500 crore IPO includes a ₹500 crore fresh issue and a ₹1,000 crore offer for sale, with proceeds for working capital and brand building.

Why It Matters: boAt's IPO faces scrutiny due to auditor-flagged financial discrepancies.