Mumbai, Sept. 24: Auditors of Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) have raised doubts over the company’s financial statements for 2012-13, following the crisis at National Spot Exchange Ltd (NSEL), a subsidiary of FTIL.
According to the annual report for 2012-13, FTIL’s ownership interest in NSEL stood at 99.99 per cent. The latter has defaulted for five consecutive weeks on payments to be made to investors.
Just a day ahead of the annual general meeting of FTIL, the company told the stock exchanges that its statutory auditor Deloitte Haskins & Sells had informed that audit reports dated May 30, 2013 on the financial statements of FTIL for the year-ended March 31 should “no longer be relied upon’’.
It is learnt that both Deloitte Haskins & Sells and NSEL’s auditor Mukesh P Shah & Co have withdrawn their reports.
In 2012-13, FTIL posted a consolidated net profit of Rs 227 crore. NSEL, with a profit of Rs 127 crore profit, contributed more than 50 per cent to the parent’s performance.
Audit circles said the statutory auditors of FTIL red-flagged the report as the auditors of NSEL were not certain of its financials.
FTIL said it had decided to defer three items for which it was scheduled to obtain shareholders approval at the AGM to respect the auditor’s view.