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Deloitte resigns as statutory auditor of Financial Technologies

LiveMint logoLiveMint 10-06-2014 Ashish Rukhaiyar

Mumbai: Deloitte Haskins and Sells Llp has resigned as the statutory auditor of Financial Technologies India Ltd (FTIL), the promoter of National Spot Exchange Ltd (NSEL), which is embroiled in a `5,574.35-crore payments crisis.

“Financial Technologies (India) Ltd has informed BSE that M/s. Deloitte Haskins & Sells Llp, the statutory auditors of the company vide their letter dated 9 June 2014, have informed about their inability to offer themselves for reappointment as the auditors of the company at the forthcoming annual general meeting. Further, they have tendered their resignation as the statutory auditors of the company with immediate effect,” said a stock exchange announcement on Tuesday.

The announcement added that the audit of stand-alone financials of FTIL for the year ended 31 March 2014, has been completed by Deloitte.

The global auditing company is also the statutory auditor of Multi Commodity Exchange of India Ltd (MCX), in which FTIL owns a 26% stake.

On 9 May, Mint reported that the Forward Markets Commission (FMC) had asked MCX to assess whether Deloitte had failed to raise a red flag over issues like related-party transactions that emerged from a special audit conducted by PricewaterhouseCoopers (PwC).

FMC had said that any auditor earlier associated with the exchange should be barred until MCX assesses whether they could have highlighted issues raised in the PwC report, extracts from which were disclosed by MCX on 29 April.

The PwC report said MCX and its parent, the Financial Technologies (FT) Group, had about 235 related parties and around 676 additional entities either directly or indirectly related to MCX or the FT Group, key management personnel at FTIL or their immediate family members by virtue of being common directors or shareholders.

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