Gautam AdaniImage Credit source: File Photo : PTI
The troubles of Adani Group and Gautam Adani are not showing any signs of ending. The latest case is of the audit firm associated with the group. On which the government agency has tightened its grip. This firm audits 5 companies of Gautam Adani. According to Bloomberg report, National Financial Reporting Authority i.e. NFRA has started investigation against SR Batliboi.
The Bloomberg report quoted sources as saying that NFRA has demanded files related to the audit of some companies of Adani Group from the audit company. The agency has asked the audit company to provide all the audit files from 2014 till now. There is no information yet about when the agency’s investigation will end and who will come under the scanner of this investigation. On the other hand, no official statement has come yet in this matter.
Company audits 5 companies of Adani
Audit company SR Batliboi audits 5 listed companies of Adani Group. The special thing is that more than 50 percent of the group’s revenue is from these five companies. In the last week of January, Hindenburg Research had presented a report. In this report, serious questions were raised on the accounting of the group. It was even called the world’s biggest accounting fraud in the report. After which Adani Group had denied all these allegations. Later the matter reached the court and the Supreme Court asked SEBI to investigate Hindenburg’s allegations.
Audits these companies
Audit firm SR Batliboi audits the work of Adani Power, Adani Green Energy, Adani Wilmar and ACC and Ambuja Cements. Earlier, this firm had also audited Adani Ports and Special Economic Zone for 10 years. According to law, foreign accounting firms cannot be registered as auditors in the country. This is the reason why foreign companies work in India through companies working independently. Audit firm SR Batliboi is a member firm of EY.
Allegation of world’s largest accounting fraud
The Hindenburg report in January said that Adani Group had committed the world’s largest accounting fraud. Questions were raised on both accounting and audit in the report. After which there was a decline in the shares of group companies and the market cap of the group was reduced by 150 billion dollars. Adani Group had denied all these allegations and said that their companies are audited by certified and qualified professionals. In the month of May, Adani Total Gas had finalized Volker Chandiok & Company as the auditor in place of Shah Dhandhariya & Company. In the month of May itself, Deloitte Haskins had raised questions on the transactions of Adani Ports and had resigned in August.
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