Financial Tech gets audit shocker before today's AGM

Deloitte says FY13 accounts can't be relied upon due to NSEL crisis

Deloitte Haskins & Sells, the auditor of Financial Technologies (FT), has said the company’s results for the year ended March should no longer be relied upon due to the crisis at group company National Spot Exchange Ltd (NSEL). As a result, the company was deferring the passing of three items from its 25th annual general meeting on Wednesday, it said in a release to stock exchanges on Tuesday.

These items include audited results for 2012-13, dividends, and re-appointment of Deloitte Haskins & Sells as chartered accountant.

NSEL, which contributed roughly 56 per cent to Financial Technologies’ net profit in 2012-13, is embroiled in a crisis after failing to settle trades worth Rs 5,600 crore. Following this, the FT group and promoter Jignesh Shah have been facing the ire of investors, regulators and the government.

FT said its standalone and consolidated results for 2012-13 would be amended with a revised auditor’s report.

“The company will satisfy its statutory auditors on standalone financial accounts, though standalone and consolidated financial statements were audited before the event (the current crisis) occurred at NSEL,” the Financial Technologies release to BSE said.

Deloitte Haskins & Sells said it would not comment on client proprietary matters.

Mukesh P Shah & Co, which audited NSEL’s accounts last financial year did not immediately respond to a request for comment. An email had not elicited any response till the time of going to press, while a person who answered at the office telephone said he was unaware of the development.

According to Amarjit Chopra, former president of the Institute of Chartered Accountants of India, reports are withdrawn only if the auditor and management are not able to agree on a revised report.

WOES SPILL OVER
Three items that have been removed from agenda for Wednesday’s AGM

* Item 1: To receive, consider and adopt 2012-13 balance sheet

* Item 2: To ratify the payment of interim and final dividends

* Item 5: To re-appoint Deloitte Haskins & Sells as the auditor