ICAI begins scrutiny of FTIL, NSEL issues

Business

oi-Staff

By Super

Published: Wednesday, September 25, 2013, 16:35 [IST]

New Delhi: With the auditors withdrawing their audit report on crisis-hit NSEL's promoter Financial Technologies, the accounting watchdog ICAI has begun looking into the matter and has sought all available details from the concerned stakeholders.

"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 concerned persons including various regulators and others concerning Financial Technologies India Ltd (FTIL) and NSEL," Institute of Chartered Accountants of India (ICAI)President Subodh Kumar Agrawal told the agency.

As per the practice, we would give them 20-21 days to submit the information, he added.Yesterday, FTIL auditor Deloitte Haskins & Sells withdrew its audit report on the company 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 shareholder meeting today but the auditor redflagged the financial statements and withdrew its report.

NSEL, a firm promoted by FTIL, is presently facing a crisis of settling Rs 5,500 crore dues to 148 members/brokers, representing 13,000 investor clients, after its trade was suspended on July 31 by government orders.

PTI