Adani Total’s auditor resigns, citing other work – Times of India

Mumbai: Months later Hindenburg Research Questioned the ability of a “small firm” Shah Dhandhariya & Co to audit the books of a big conglomerate like Adani, the accounting firm has resigned Adani Total gas. It has cited professional engagement in other works as the reason for his resignation.
The resignation comes within 10 months of his re-appointment as the statutory auditor of Adani Total Gas for a second five-year term. Shah Dhandharia, which converted from a partnership firm to Limited Liability Partnership (LLP) on April 9, 2021, is also the auditor of the group’s flagship Adani Enterprises, which operates airports and data center businesses.
“Our resignation is not a result of our inability to obtain sufficient appropriate audit evidence,” Shubham Rohatgi, partner at Shah Dhandhariya & Co, said in the resignation letter. “There are no other circumstances connected to our resignation that we believe should be brought to the attention of the Board.”
Adani Total Gas has appointed Walker Chandiok & Co, an associate of Grant Thornton, in place of Shah Dhandharia for five years.
Hindenburg, in his report, questioned the decision of the Adani Group to hand over such a huge audit mandate to a virtually unknown entity. It said a “small firm” with a handful of people “does not seem capable of conducting a complex audit” of Adani Total Gas and Adani Enterprises.
According to Hindenburg’s findings, Shah Dhandhariya, based in Ahmedabad, had only four partners and 11 employees, some of whom were in the age group of 23-24 years.
However, the Adani Group justified its selection following the allegations. Its CFO Jugshinder Singh had said that as a large corporate “it is our responsibility to develop Indian vendors”. “So, if we support the growth of a small firm to become a proper, good, accounting firm, how is that a bad thing?” He had asked.