Financial Technologies shares slumps 10% as auditor says 2013 audit not reliable

Deloitte Haskins & Sells had cited irregularities at a commodities exchange it runs.

The shares of Financial Technologies India Ltd’s (FTIL) on Wednesday settled over 10 per cent lower after its auditor said the company’s financial statements for 2012-13 can no longer be “relied upon” in the wake of payment crisis at the firm’s subsidiary,NSEL.

After falling 14.4 per cent to Rs 143.25 in intra-day trade on the BSE,the stock finally ended at Rs 150.20,down 10.25 per cent.

Following the dip in the stock,the company’s market value slipped by Rs 79 crore to Rs 692 crore.

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On the volume front,29.18 lakh shares of the company changed hands on the BSE during the day.

FTIL’s statutory auditor Deloitte Haskins & Sells has withdrawn its audit report certifying accounts of the company for 2012-13 fiscal as the Rs 5,500 crore payment crisis at NSEL grew bigger.

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

The National Spot Exchange Ltd (NSEL),a firm owned by FTIL,has defaulted for six straight weeks on payments to be made to its 13,000 investors.

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“… the statutory auditors of the company on September 23 informed that the audit report dated May 30,2013,on the standalone and the consolidated financial statements of the company for the year-ended March 31,2013,should no longer be relied upon,” FTIL had said in a filing to the BSE yesterday.

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