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withdrawn their audit reports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 31
st July by government orders.