Deloitte to resign as Adani Ports auditor

livemint.com:

MUMBAI : Deloitte Haskins & Sells has decided to resign as the statutory auditor of Adani Ports and Special Economic Zone Ltd, a person directly aware of the development said, raising concerns about the company’s accounting practices yet again. A formal announcement of Deloitte Haskins’ resignation is expected soon, the person said, declining to be named, citing the sensitivity of the matter.

“Deloitte Haskins sought some information and clarification. There seems to be a difference of opinion with the company’s top management about certain transactions," the person said.

The resignation comes just days before the much-anticipated probe report on the Adani Group by the Indian market regulator. The Supreme Court directed the Securities and Exchange Board of India (Sebi) to submit its investigation report on Adani Group’s market transactions involving 13 suspicious foreign portfolio investors by 14 August.

Emailed queries to spokespeople for Deloitte and Adani Group did not elicit any response. Deloitte Haskins, which has been auditing Adani Ports since FY18 and was reappointed as the statutory auditor for a five-year period last year, mentioned in the company’s FY23 financial results that “there were financing transactions (including equity) with/by certain other parties identified in the allegations made in the short-seller report, which the group has represented to us were not related parties." On 24 January, US-based short-seller Hindenburg Research alleged that the Gautam Adani-led group executed the “largest con in corporate history," triggering a collapse in Adani group stocks, resulting in a market value loss of over $150 billion and removing Gautam Adani from the top 10 ranking of the global rich list.