Naman Shah - Blog

Throughout the past week, IndusInd bank has been in the news for an accounting discrepancy to the tune of around Rs. 1600 crores (about 2.35% of its net worth). This new comes amidst other developments such as resignation of the CFO in January and RBI's approval for extension of the CEO's term for 1 year  vis-à-vis  the requested period of 3 years.    1. The Accounting Discrepancy In simple terms, the bank entered into two types of foreign exchange transactions, one being deposits from NRI's (external transaction) and the other being foreign currency swaps (internal transaction) to hedge the foreign currency risk of the first transaction. If done properly, the impact of forex variation in both these transactions should cancel out each other, except, in this case it didn't. The reason for this lapse and what went wrong would soon be in the public, as the Bank has already appointed PwC for an accounting review. This Financial Express article has explained in detail ho...

Hello readers,   Having my own blog is something I have always dreamt of. Finally, on this day, 15th of March 2025, my blogging journey begins. The purpose of this journey is to get in depth and put forward well researched opinions on topics of my interest and document them in neatly crafted write ups. Well, what are my interests, you might ask. There is one small problem ... I am yet to figure out. So, for the initial days (or months) of this blog, I might post content across some select fields that I am currently into and we will see where it goes.  Being a student pursuing Chartered Accountancy, I will be writing about concepts and events affecting the ever changing business and regulatory landscape (majorly in India). Tax is not my favourite subject but since India is on the cusp of a mammoth change in regulations surrounding direct taxation, it makes perfect sense to delve deeper into the up and coming laws to understand the motive and strategy of the Government. I will a...