•BoAt's IPO faces scrutiny after auditors flagged financial irregularities and compliance issues in its new DRHP.
•Auditors found discrepancies in financial statements, misuse of short-term loans, and deficiencies in financial controls.
•Compliance problems include foreign subsidiaries unable to meet FY23-24 financial obligations, and issues with audit-trails and accounting record backups.
•BoAt paid directors excess salaries in FY23 (later rectified) and lacked proper physical verification of assets; the company states it has taken corrective actions.
•The IPO aims to raise ₹1,500 crore, including a ₹500 crore fresh issue and a ₹1,000 crore Offer-for-Sale by founders and early investors.
Why It Matters: Auditors found financial irregularities in BoAt, raising IPO investment risks.
