Adani Ports names new auditors after Deloitte resigns

afr.com:

Gautam Adani’s ports business appointed MSKA & Associates as its statutory auditors after Deloitte Haskins & Sells resigned, a move that may again put the spotlight on governance at the Indian conglomerate.

Deloitte has resigned as auditor of Adani. Bloomberg

The appointment at Adani Ports and Special Economic Zone is effective from August 12 until the date of its next annual general meeting to be held in 2024, the company said in a filing on Saturday. MSKA is a member of international accounting network BDO.

The Indian unit of Deloitte raised concerns in May over transactions between Adani Ports and three entities that Adani said were unrelated parties. Deloitte said at the time it could not verify Adani’s claims or determine if the business was fully compliant with local laws.

The resignation brings back into focus governance of Adani’s empire just before the Securities and Exchange Board of India is due to submit the results of a probe into short seller Hindenburg’s wide-ranging allegations of accounting fraud and market manipulation.

Adani has repeatedly denied any wrongdoing and a panel appointed by India’s Supreme Court found no regulatory failure or signs of stock price manipulation.

Deloitte Haskins & Sells said in a letter it is tendering its resignation because “we are not statutory auditors of a substantial number of other Adani Group of companies”. Because Deloitte could not look into the accounts of several other group companies and its transactions with each other, suppliers or customers, it had to qualify its audit of the company, as per its auditor notes dated May 30.

The reasons for Deloitte’s resignation “were not convincing or sufficient to warrant such a move”, GK Pillai, the chairman of Adani Ports