Deloitte to resign as Adani auditor over concerns raised by Hindenburg

Deloitte decided to step down as auditor of India’s Adani Ports because to concerns over some transactions highlighted in a Hindenburg report that the business did not want to independently investigate, as per a source with direct knowledge stated.

Deloitte alluded to specific transactions reported by the US short seller in its report in May and provided only a qualified opinion, indicating concerns by a company’s auditor.

The auditor’s action sheds a new light on Adani business’s financial management, which has taken the brunt of Hindenburg’s charges over alleged unlawful use of tax havens, complicated related party transactions, and the business’s debt levels since January, which the group has rejected.

Its group stocks have lost roughly Rs 12.43 lakh crore i.e. $150 billion in market value since the disclosure, but have now recovered part of that ground as it serviced its debt and regained investor trust.

As per the source cited, Deloitte resigned after asking Adani Ports to conduct an independent investigation of related party transactions reported by Hindenburg, to which the firm refused.

Deloitte and Adani Ports did not reply to Reporters’ calls for comment right away.

Deloitte’s decision to resign as Adani Ports’ auditor might come as soon as Monday, the source further stated.

In May, a court-appointed panel stated that India’s markets watchdog had “drawn a blank” in its investigations into the charges against Adani Group, adding that the case’s pursuit may be a “journey without a destination.”

Last month, Adani Chairman Gautam Adani described Hindenburg’s report as a “malicious attempt” to harm the conglomerate’s reputation and stated that the company was confident in its governance and disclosure standards after the panel identified no flaws.