SA 560
Annual General Meeting scheduled to be held in Chennai today
Mumbai, Sept. 24:
In what could lead to a major furore at the Financial
Technologies Annual General Meeting scheduled for Wednesday in Chennai,
the auditors refused to authenticate the financial statement of the
company due to the Rs 5,600-crore trade settlement crisis at its
subsidiary, National Spot Exchange Ltd (NSEL).
This development may also delay dividend payment to investors as the
company deferred consideration of this proposal at the AGM. Statutory
auditor Deloitte Haskins & Sells said the financial statement of
Financial Technologies could not be relied upon due to the crisis in
NSEL.
In a statement, Financial Technologies said: “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 statement of
NSEL, the statutory auditors of the company on September 23, in
accordance with Standard on Auditing 560 informed that the audit reports
dated May 30 on the standalone and the consolidated financial statement
of the company for the year March 31 should no longer be relied upon.”
The company has decided to defer three agenda items, including
consideration of audit report, dividend payment and reappointment of
Deloitte Haskins as auditor for this financial year, at the AGM.
Following this development, the company said the financial accounts
may undergo amendment together with revised Auditors’ Report which will
be approved and published once the accounts are finalised.
The company also said the balance sheet was approved by the auditors
and recommended to the shareholders on May 30 while the NSEL crisis
broke out on July 31.
The total income generated from NSEL last fiscal was largely on
account of technology services, which contributes only 4.79 per cent of
the total income of FTIL. There is no outstanding amount against the
same, it added.
The contribution from revenue generated from NSEL in the net profit of Rs 323 crore was 6.56 per cent.
Given the above facts, the impact on account of NSEL on income and
net profit is not material in the standalone financial statement, said
Financial Technologies. by leading newspaper