Business
Crypto
Markets
INDIA
Stocks
Sources familiar with the matter have revealed that Deloitte Haskins & Sells LLP, the auditing firm responsible for billionaire Gautam Adani’s ports business, is in the process of planning its resignation. This development is likely to amplify worries about the accuracy of accounting within the Indian conglomerate, which has recently been targeted by the short seller Hindenburg Research.
Adani Ports & Special Economic Zone Ltd. has reportedly been informed about Deloitte’s intention to resign, and an official announcement is anticipated in the upcoming days. The individual sharing this information requested anonymity due to the sensitivity of the subject. Back in May, the Indian arm of the global accounting powerhouse expressed concerns regarding transactions between Adani Ports and three other entities. Adani had asserted that these entities were unrelated, but Deloitte couldn’t verify these claims or confirm the business’s adherence to local laws.
This impending resignation casts a renewed spotlight on the governance of Adani’s extensive business empire, occurring shortly before the Securities and Exchange Board of India (SEBI) is set to disclose the findings of its investigation into Hindenburg’s far-reaching allegations of market manipulation and accounting fraud. Despite the persistent denials of any misconduct by Adani, the move is likely to draw further attention to the situation.
It has been suggested that BDO India LLP’s audit arm, MSKA & Associates, might step in to replace Deloitte Haskins & Sells as the auditor. However, neither Adani nor Deloitte representatives provided any comment when contacted.
Notably, this isn’t the first instance where auditors have expressed reservations about Adani’s companies. Ernst & Young’s affiliate, S.R. Batliboi, has repeatedly issued qualified opinions on Adani Power Ltd.’s financials.
Moreover, a member of KPMG, another prominent global accounting firm, resigned as co-auditor of Adani Green Energy in 2021 and declined a request from the conglomerate to audit additional entities due to heightened scrutiny of India’s accounting industry.
The Adani Group has consistently asserted its compliance with Indian regulations and has welcomed SEBI’s investigation. The allegations from Hindenburg resulted in a staggering loss of market value, exceeding $150 billion, for Adani’s listed firms at one point.
Despite this setback, the group has been actively pursuing new fundraising avenues, securing substantial investments from GQG Partners and Qatar Investment Authority. Additionally, it has sought financial refinancing from international banks as part of its efforts to rebound from the short seller’s attack and restore normalcy to its operations.
