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NSEL crisis: Financial Technologies shares nosedive over 14% as auditor withdraws report

Financial Technologies's auditor Deloitte Haskins & Sells has withdrawn its audit report.

Written by Press Trust Of India | Mumbai | Published: September 25, 2013 2:24:32 pm

Financial Technologies India Ltd (FTIL) shares today slumped over 14 per cent after its auditor said the company’s financial statements for 2012-13 can no longer be “relied upon”,making the ongoing crisis at Jignesh Shah‘s NSEL worse.

Reacting to this,Financial Technologies’s scrip opened the day on a weak note and further tanked 14.4 per cent to Rs 143.25 on the BSE.

The shares,however,later pared some of the losses and was trading at Rs 154.05,down 7.95 per cent,in the late morning trade.

Financial Technologies’s statutory auditor Deloitte Haskins & Sells has withdrawn its audit report certifying accounts of the company for 2012-13 fiscal as the Rs 5,500 crore payment crisis at NSEL ballooned.

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

National Spot Exchange Ltd (NSEL),a firm owned by Financial Technologies,has defaulted for five consecutive weeks on payments to be made to its 13,000 investors.

“… 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,” Financial Technologies said in a filing to the BSE yesterday.

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