First Leasing Co of India auditors red-flag over previous year's financial statements

CHENNAI: Auditors have raised the red flag over the previous year's financial statements of Chennai-based First Leasing Co of India Ltd, a joint venture of Farouk Irani and SPIC Group’s AC Muthiah.

In a late announcement to the stock exchanges Tuesday, First Leasing said it has received a letter on October 3 from M/s Sarathy and Balu, its statuary auditors, stating that certain audit reports/certificates issued by them regarding the previous year's financial statements should no longer be relied upon.

The move comes after the RBI, after inspecting its books last month, barred the firm from running any business. An ET report raising question marks about First Leasing's financial statements followed.

The period mentioned by the auditors includes fiscal 2013 (financial statements as also limited review reports for each quarter) and the first quarter of the current fiscal.

The announcement further said that the financial statements for 2013 may undergo amendments; they will be published with revised auditor reports once the amendments are finalised.

On Monday, foreign fund Jupiter South Asia Investment Co Ltd sold almost its entire stake of 2.94% in the firm in two separate open market transactions. Shareholding data shows the fund held the stake since March 2010.