Fin Tech auditor says fiscal nos not reliable

The ongoing crisis at National Spot Exchange (NSEL) has led Deloitte Haskins & Sells, statutory auditor of the commodity bourse’s parent company, Financial Technologies (FTIL), to withdraw its independent audit report on the latter’s financials for 2012-13.

The Jignesh Shah-led Financial Technologies, which holds its annual general meeting today, informed the stock exchanges on Tuesday that its statutory auditors had informed the company that the audit reports on standalone and consolidated financial statements of the company for fiscal 2013 should no longer be relied upon.

The reason? The auditor had approved the financials on May 30, while the first signs of trouble at its wholly owned subsidiary, NSEL, came to light on July 31.

Following this, the AGM will not consider or adopt the audited balance sheet and profit & loss statement for fiscal 2013, which was the first agenda item as per notice of AGM.
It will also defer ratifying the payment of interim dividend and declaring of final dividend for fiscal 2013, the company said in its release.

“The company on a conservative basis decided to defer the agenda item no 1, 2 & 5 of the Notice of AGM scheduled on 25th September 2013 to respect auditor’s views and will satisfy the statutory auditors of the company on standalone financial accounts though standalone and the consolidated financial statements has been audited prior to the event occurred at NSEL,” it said.

The company further clarified that both from total income & net Profit after tax perspective, the impact on account of NSEL is not material in the standalone financial statement.