Deloitte to recast ftil account: jignesh shah

Vivek (CA ) (2368 Points)

26 September 2013

CHENNAI: A day after its auditor Deloitte Haskins & Sells withdrew its report for Financial Technologies (FTIL), promoter of the beleaguered National Spot Exchange (NSEL), citing irregularities in subsidiary accounts, FTIL founder-promoter Jignesh Shah said the auditor has been asked to recast the company's accounts.

NSEL is facing a settlement of Rs 5,500 crore worth of dues to 148 members, representing 13,000 investor clients, after its trade was suspended on July 31 by the government. Speaking to reporters after the annual general meeting (AGM), Shah said, "Let us satisfy our auditor first and come back to you. Deloitte will be asked to recast accounts for Financial Technologies."

Shah said he has started a consultative process with NSEL's investors to form a comprehensive strategy. After getting the master plan ready, he said he would approach the government .

"If we get any support from the government, it will be helpful," he added.

Stressing that he did not run away from the crisis, Shah said, "I have missed a few AGMs of Financial Technologies in the past. But, today, I am here mainly to show my solidarity with the company and shareholders and investors. I feel the pain of small investors , but I am the biggest loser ... my reputation has been hit," he said.

Action is being planned against the 23 borrowers of NSEL who have defaulted on payment. Several shareholders and NSEL investors, who lost money, protested outside the AGM venue. They sought government's intervention for a comprehensive probe by the Serious Fraud Investigation Office (SFIO) into the affairs of NSEL. He told the shareholders he was the victim of "management fraud" at NSEL.

Stressing that FTIL's profit hasn't been affected by the NSEL fiasco, Shah said: "People say 50%. But it was not," adding the facts would become clear after the earnings report for fiscal 2012-13 is revised. The share price of Financial Technologies plummeted 10.25% at the BSE on Wednesday to close at Rs 150.20 apiece.

Massey withdraws reappointment bid

New Delhi: Leading commodity bourse MCX on Wednesday said Joseph Massey, who was the only eligible candidate for reappointment as a director, has withdrawn his consent.

After withdrawing his reappointment bid, Massey said he will vacate office on September 30, according to a BSE filing. Meanwhile, MCX has appointed two independent directors R M Premkumar and Ravi Kamal Bhargava as chairman of the board and chairman of the audit committee, respectively.

Both the directors are retired IAS officers and nominated on the bourse's board by the commodity market regulator Forward Markets Commission (FMC), the exchange said in the filing. The AGM of MCX is scheduled to be held on September 30. On August 12, the FMC revised the guidelines for constitution of the board of directors for better corporate governance practice.