NSEL fallout: ICAI begins probing Financial Technologies, NSEL issues
Moneylife Digital Team 25 September 2013

The accounting watchdog has begun looking into the matter where auditors of Jighesh Shah-led Financial Technologies and NSEL have withdrawn their audit reports

With Deloitte Haskins & Sells, the auditors of Financial Technologies (India) Ltd (FTIL), withdrawing their audit report, the Institute of Chartered Accountants of India (ICAI) has begun probe into the matter. FTIL is the promoter of crisis-hit National Spot Exchange Ltd (NSEL). 


Subodh Kumar Agrawal, president of ICAI, said, “There are certain provisions in the auditing standards that allow an auditor to withdraw report...We are looking into it and will gather information from the persons concerned including various regulators and others concerning Financial Technologies India Ltd (FTIL) and NSEL”.


As per the practice, we would give those 20-21 days to submit the information, he added.


On Tuesday, Deloitte Haskins & Sells withdrew its audit report on FTIL saying the financial statements for 2012-13 financial year cannot be “relied upon” any “longer” in the wake of NSEL payment crisis.


According to sources, the withdrawal came since NSEL’s auditor Mukesh P Shah & Co also withdrew the report.


The audited accounts were to be placed for FTIL’s annual shareholders meeting today but the auditor red-flagged the financial statements and withdrew its report.


NSEL, a company promoted by FTIL, is facing a crisis of settling Rs5,500 crore dues to 148 members-brokers, representing 13,000 investor clients, after its trade was suspended on 31st July by government orders.

R Balakrishnan
1 decade ago
Delightful- ICAI still has no clue about what is to be done. Seems to be plugged with morons at all end.
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