Adani Ports auditor Deloitte likely to resign following differences over recording of transactions

economictimes.indiatimes.com:

Deloitte Haskins & Sells LLP is likely to resign as the auditor of Adani Port & SEZ citing difference of opinion with the management relating to few transactions, said multiple people aware of the development. The formal announcement of resignation is expected in a few days, said a person familiar with the development on the basis of anonymity as talks are private. Deloitte Haskins has been auditing the company since FY18, when it took over from SRBC & Co LLP, an EY affiliate.

It was reappointed as the statutory auditor just last year for a five-year period, according to the company’s annual report of FY22. A spokesperson of Deloitte Haskins said the firm does not comment on client matters. An email sent to the Adani group spokesperson remained unanswered till press time.

This would be the third change in auditors for Adani Group companies over the past few months. In May 2023, Shah Dhandharia & Co. LLP stepped down from their role as the auditor of Adani Total Gas.

It was replaced by Walker Chandiok & Co. LLP. In a statement uploaded on stock exchanges on August 8, 2023, Deloitte brought attention to specific matters within the auditor review report that were included in the June 2023 quarterly earnings statement of Adani Ports.

First, there was a net balance of Rs 3,871 crore recoverable from a contractor that provided EPC services, which the company believed was not a related party. However, the contractor was identified as a related party in a short seller report published in January 2023. The net balance with the contractor increased by Rs 122 crore on a sequential basis in the June 2023 quarter.