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NSEL fallout: Financial Technologies' auditor withdraw report ahead of AGM

Citing purported crisis at NSEL, the auditor of Jignesh Shah's Financial Technologies has withdrawn his audit report for FY13 ahead of the company's AGM tomorrow

Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) said its auditor has withdrawn the audit report on the company's stand-alone and the consolidated financial statements owing to purported crisis at National Spot Exchange Ltd (NSEL).


In a regulatory filing, FTIL said, it will not discuss points one, two and five in the company's annual general meeting (AGM) on Wednesday. The company's auditor has said that the FY13 accounts cannot be relied upon and hence has withdrawn its audit report.


"Due to purported crisis at NSEL in the recent past and based on the communication of management of NSEL and the statutory auditor of NSEL on the financial statements of NSEL, the statutory auditors of the company on 23 September 2013, in accordance with Standard on Auditing (SA) 560 informed that the audit reports dated 30 May 2013, on the stand-alone and the consolidated financial statements of the company for the year ended 31 March 2013, should no longer be relied upon," the filing says.


Interestingly, the notice for the AGM does not even mention the name of the Exchange in the agenda. This is surprising especially as its main promoter, it is the responsibility of FT to answer questions arisen about the crisis at NSEL, especially since NSEL contributed more than Rs120 crore in profits to FT last year. (Financial Technologies silent about NSEL scam in its AGM agenda)


The first point in FTIL's AGM agenda says that the stand alone and consolidated financial statements of the company for the previous financial year should not be relied upon. The second point which was to be discussed was that the company's financial statement for the previous fiscal were audited before the occurrence of NSEL issue.


The filing also stated that FTIL stand alone and consolidated accounts of the company for the previous fiscal may undergo amendment together with revised auditors' report which will be approved and published once the amendment to stand alone and consolidated accounts is finalised.


In a clarification, the company said, "As per standalone financials of FTIL, the total income forms part of revenue generated from NSEL during the FY2012-13 is largely on account of technology services which contributes only 4.79% of the total income of FTIL, further there is no outstanding amount pending against the same."


The Jignesh Shah-led financial software company and promoter of several exchanges in India and abroad such as MCX, MCX-SX, DGCX in Dubai etc. is holding its 25th AGM on 25th September at Chennai.



Nagesh Kini

4 years ago

At least the Auditor had the courage of his convictions not to be a party to the misdemenours and rightly withdrew his report, certainly an unprecedented step.
Now that he has been served with the Notice to attend the AGM he ought to be present and state the true state of affairs across to the members at the AGM based on the audit carried out by him. He owes it to them.


4 years ago

Chor "independent" directors and auditors. They should be held liable.

Aadhaar wakeup call: Govt to introduce NID Bill in winter session

After threatening citizens with exclusion from services and benefits if they have not enrolled for Aadhaar and getting slapped by the Supreme Court, the UPA government now plans to introduce NID Bill to give legal status to the numbering scheme

After getting a rebuttal from the Supreme Court, the union government said it will push for passage of a long-pending Bill that would provide legal status to the Unique Identification Authority of India (UIDAI) during the upcoming winter session of the Parliament.


Rajiv Shukla, minister of state for parliamentary affairs and planning, told agencies that the government will bring the National Identification Authority of India Bill 2010 in Parliament during the forthcoming winter session for discussion and passage.


The working of the UIDAI has come under scrutiny of the Supreme Court, which in an interim order on Monday, said that Aadhaar can be issued only to Indian citizens and it cannot be made mandatory for availing of benefits of the government’s subsidy schemes. While trashing the Centre's claim of Rs50,000 crore expenses on the UIDAI project, a Bench of Justices BS Chauhan and SA Bobde said that Aadhaar number is not necessary for important services.


The United Progressive Alliance (UPA) government and the UIDAI have been complicit in the coercion and bullying that is now part of the UID enrolment process, and its silent acquiescence while people are threatened with exclusion from services and benefits if they have not enrolled.


The UIDAI, which issues 12—digit Aadhaar numbers to residents, currently operates through an executive order.


The Bill to provide the authority legal backing was approved by the union Cabinet in September 2010 and introduced in the Rajya Sabha in December that year. It was sent for scrutiny to the Parliamentary Standing Committee on Finance headed by former finance minister and BJP leader Yashwant Sinha.


“Now the Bill has been sent back to the Planning Commission by the Standing Committee with some amendments. We will soon take it to the Cabinet and try to push the draft for passage in the winter session,” Shukla said.


The minister said the UIDAI has not made enrolment for Aadhaar number mandatory for residents and it was for the central departments, ministries and state governments to decide how to verify the identity of beneficiaries.


“Aadhaar establishes the identity of a person and not the nationality. It also serves as proof of residence. Moreover, it is a voluntary facility and not mandatory,” he said.


This also raises question on the forceful implementation of Aadhaar by several government ministries, like the ministry of petroleum and natural gas, which is trying to make it mandatory for customers to provide the UID for subsidy on liquefied petroleum gas (LPG) cylinder. While minister for petroleum Veerappa Moily has been saying that all consumers of LPG will have to submit their Aadhaar numbers to receive subsidy, the union government itself has admitted that it is not mandatory.


Replying to an un-starred question on 8 May 2013, Shukla, had said, "Aadhaar card is not mandatory to avail subsidized facilities being offered by the Government like LPG cylinders, admission in private aided schools, opening a savings account etc."



Ramesh Iyer

4 years ago

The UPA govt should have got statutory approval for UIDAI BEFORE it embarked on its ambitious project, which also seems to overlap with the NPR database it maintains. But now that the SC has put a spanner in its works, the UPA govt has no choice but to do what it ought to have done much earlier.
Of course, having numbers in its favor, its NID Bill will sail thru like its other flagship bills like FSB and Land Acquisition Bill earlier this year. Pity it couldn't muster the same enthusiasm or consensus on Lokpal Bill, which remains in limbo.

ICICI Bank launches 'Pockets', a new app for Facebook

'Pockets by ICICI Bank' allows customers to carry out wide range of non-financial transactions including viewing a summary as well as a mini statement of savings bank account, knowing credit card details and getting demat holding statements

ICICI Bank has launched a new application that would allow its customers to carry out a slew of banking services on Facebook.


Using the app, 'Pockets by ICICI Bank', customers can carry out wide range of non-financial transactions including viewing a summary as well as a mini statement of savings bank account, knowing credit card details and getting demat holding statements. Through this app, a customer can open fixed or recurring deposit, order a cheque book, stop a cheque payment and upgrade debit card, the lender said in a statement.


Last year, the Bank launched 'Your Bank', its app on Facebook that allows customers to their savings account details and statements while on Facebook, as well as to order a cheque book and upgrade debit card.


'Pockets by ICICI Bank' offers a bouquet of unique features such as:

  • Split 'n' share: It allows customers to split and track group expenses and share them with friends on Facebook.  The app also gives the customer the option of sending messages to remind friends on pending payments.
  • Pay a friend:  It allows customers to transfer funds to their friends without knowing their bank account details like account number, bank branch, branch IFSC code etc. Through this facility, customers can create electronic coupons that can be redeemed by their friends on
  • Recharge prepaid mobile: 'Pockets by ICICI Bank' lets customers recharge their prepaid mobile instantly, from Facebook itself.
  • Book movie tickets: Users can now plan for their favourite movie with their Facebook friends and instantly book the tickets using 'Pockets by ICICI Bank'.




4 years ago

Now Big Brother knows what you do with your ICICI account!

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