Sify Technologies has said in a press release that it is unable to file its audited financial statements for the year ended March 31st 2010, because of disputes over financial results from a subsidiary – MF Global Sify Securities – in which the company has a minority 29.85% stake.
MF Global Sify Securities provides intermediary and matched principal brokering services, offering online and offline equity and derivatives trading for retail customers, as well as execution and clearing services for financial institutions. MF Global Holdings Ltd owns the remaining 70.15% in the company. Sify has to report “share of profit of equity accounted investee” as net income after tax, and hence the filing will be delayed until the matter is sorted out.
According to the statement:
Sify has disputed certain recorded cross charges of corporate expenses made by MF Global Holdings Ltd. and affiliated entities, to MF Global Sify Securities and believes the charges, and various related actions, violate a shareholders’ agreement among the parties. As a result of the ongoing dispute, MF Global Sify Securities has advised Sify that its auditors are unable to issue an unqualified report on its March 31, 2010 financial statements.
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