Mumbai: Adani PortsStatutory Auditors of Deloitte expressed concern over some deals entered into by the company, including one with an engineering, procurement and construction (EPC) contractor that was named in the company Hindenburg report, as it could not confirm whether these were non-related-party transactions.
Consequently, it has issued a “qualified opinion” on FY23 results. A qualified opinion means that the audit report is not clean. In other words, an auditor has reservations about certain transactions that prevent it from issuing an unqualified or clean report.
This is the first time that a major auditor has issued a qualified opinion on Adani GroupThe financial statements cited the Hindenburg Report which accused the group of financial impropriety. It also focuses on the information gaps that persist in the group’s financial dealings and hinder its efforts to move beyond Hindenburg’s allegations.
According to Deloitte, Adani Ports told the audit firm that the three transactions it had identified were not related-party transactions. It added that the company refused to conduct an independent external investigation to address its concerns.
Since the assessment made by the “(Adani) Group does not constitute sufficient appropriate audit evidence for the purposes of the audit,” Deloitte said it cannot comment “on whether there are potential disclosures in relation to the related parties of these transactions.” can” and “whether the group should have followed the applicable rules”. Deloitte identified three deals that it could not confirm as non-related-party transactions.
Late on Wednesday, a spokesperson for the Adani Group said that the audit committee of Adani Ports as well as the company believed that an independent probe was not appropriate as the investigation SEBI And the expert committee appointed by SC was going on. “Deloitte’s qualification this year is due pending conclusion of these investigations.”
Consequently, it has issued a “qualified opinion” on FY23 results. A qualified opinion means that the audit report is not clean. In other words, an auditor has reservations about certain transactions that prevent it from issuing an unqualified or clean report.
This is the first time that a major auditor has issued a qualified opinion on Adani GroupThe financial statements cited the Hindenburg Report which accused the group of financial impropriety. It also focuses on the information gaps that persist in the group’s financial dealings and hinder its efforts to move beyond Hindenburg’s allegations.
According to Deloitte, Adani Ports told the audit firm that the three transactions it had identified were not related-party transactions. It added that the company refused to conduct an independent external investigation to address its concerns.
Since the assessment made by the “(Adani) Group does not constitute sufficient appropriate audit evidence for the purposes of the audit,” Deloitte said it cannot comment “on whether there are potential disclosures in relation to the related parties of these transactions.” can” and “whether the group should have followed the applicable rules”. Deloitte identified three deals that it could not confirm as non-related-party transactions.
Late on Wednesday, a spokesperson for the Adani Group said that the audit committee of Adani Ports as well as the company believed that an independent probe was not appropriate as the investigation SEBI And the expert committee appointed by SC was going on. “Deloitte’s qualification this year is due pending conclusion of these investigations.”