Adani Ports Auditor, Deloitte Resigns Over Concern Of Adani-Hindenburg Saga.
On January 24, 2023, US Short Seller Hindenburg Published a report accusing Adani of Money Laundering and Tampering with Financial Account Statements.
The Report Was named How Adani Is Pulling Off The World’s Largest Corporate Con In History.
Adani, at the time, ranked as the world’s third-richest person.
The Hindenburg Report damaged the company’s reputation, and the stocks fell overnight.
SEBI researched the case
Supreme Court appointed 6 member expert panel.
There was no evidence found against Adani Enterprises.
Adani was adamant and said all the accusations were false and were an attempt to damage the company’s reputation.
Deloitte is a British Company providing clients with audit, consulting, financial advisory, risk advisory, tax, and legal services.
It has been the auditor of Adani Ports and Special Economic Zone (APSEZ) since 2017. In July 2022, it was given another five-year term.
The Auditor Company is no longer working with Adani Ports and has resigned and terminated the contract with the company.
Why Did Deloitte Resign?
The Auditor Company raised some concerns over the financial statements of APSEZ and wanted to conduct a more thorough search over the entire Adani Enterprise and its various groups.
APSEZ refused, as the other companies have separate boards, teams and shareholders and are entirely independent and unrelated to APSEZ.
The Refusal of a wide audit is why the Adani-Deloitte contract was terminated.
Deloitte wasn’t convinced by the research conducted by SEBI and Supreme Court and wanted a personal audit of the entire enterprise.
The refusal of a wide audit ended the 6-year-long work relationship of Adani-Deloitte.
Is there a reason behind the refusal of a comprehensive search?