Winning Bizness Desk
Mumbai. It seems that one problem of Indian billionaire Gautam Adani and his companies doing business in different sectors does not end that another get ensuing. The Adani group, which is facing SEBI probe after Hindenburg's allegations, has now suffered a new setback. Adani Group's company Adani Ports and Special Economic Zone has got this blow. The reason for this is that its auditor does not have full confidence in the company. In fact, in the latest case, its auditor company itself is not able to have full confidence in Adani Ports and Special Economic Zone. According to a report, Adani Ports and Special Economic Zone has not given complete information about some transactions to its auditor company Deloitte Haskins & Sells LLP.
What does the report say ?
According to the report, Deloitte Haskins & Sells LLP on Tuesday expressed its concerns over the transactions with the three entities of Adani Ports and Special Economic Zone. Adani Ports and Special Economic Zone says that these three bodies are unrelated parties, that is, they do not have any relation with the company. At the same time, the auditor says that it cannot confirm that the concerned bodies are unrelated parties. The auditor also said that conducting an independent external investigation could have helped in confirming this, but Adani Ports refused for the same.
Assessment have incomplete information
Deloitte Haskins & Sells LLP says its assessment did not contain sufficient information to satisfy audit objectives. In such a situation, the auditor said that it is difficult to comment on whether the company i.e. Adani Ports is fully following the local laws. This is the first time that the Adani group has received a qualified opinion i.e. limited review from the auditor. American short seller firm Hindenburg Research made several allegations against the Adani group in a report released on 24 January. It was also said in Hindenburg's allegations that money has been invested in Adani group companies through shell companies. This issue has also taken political color in India. After Hindenburg's allegations, the Adani group has suffered a huge loss, which has not yet been recovered. On the other hand, under the supervision of the Supreme Court, market regulator SEBI is probing the allegations made by Hindenburg Research on the Adani group.
