Adani Ports Dismisses Deloitte’s Reasons for Resignation as Auditor, Calls for Scrutiny Unwarranted
Adani Ports, in response to Deloitte’s decision to step down as the company’s auditor, has expressed its disagreement with the rationale provided, deeming it insufficient to justify such a move. A reliable source revealed that Deloitte’s resignation stemmed from concerns regarding specific transactions highlighted in a report by Hindenburg Research. However, the auditing firm opted not to investigate these transactions independently. This development has led to renewed examination of Adani Group’s financial practices. The conglomerate firmly refuted the allegations made by Hindenburg in January, which pertained to alleged improper utilization of tax havens, complex related-party dealings, and the group’s overall debt levels.
In recent discussions between Adani Ports’ leadership and Deloitte, the auditing firm alluded to its limited audit scope concerning other publicly listed companies within the Adani portfolio. Deloitte clarified that it lacks the authority to propose appointments that encompass the entire group, as these entities operate independently, each governed by distinct boards.
The Audit Committee of Adani Ports, however, expressed dissent towards Deloitte’s justifications for resigning as the Statutory Auditor. The committee found the provided grounds unconvincing and inadequate to warrant such a drastic step.
In response to this situation, Adani Ports has chosen to appoint a new auditor: MSKA & Associates, an independent member firm of BDO International.
In May, Deloitte had highlighted specific transactions mentioned in Hindenburg Research’s report, which led to the issuance of a qualified opinion—a signal from a company’s auditor indicating concerns.