New Delhi: Auditor Deloitte Issuing a qualified opinion on the accounts of Adani Ports and Special Economic Zone, flagged three transactions including recovery from a contractor identified in the Hindenburg Report.
In the auditors’ report on the fourth quarter and 2022-23 financials audit, Deloitte Haskins & Sells LLP highlighted transactions with three entities, which the company said were unrelated parties.
Deloitte, however, said it could not authenticate the company’s statement as no independent external investigations had been conducted to substantiate the claims.
Hindenburg Research, in its January 24 report that leveled allegations of fraud, stock manipulation and money laundering against the Adani group, had also flagged inadequate disclosure of related party transactions.
While the group has denied all allegations, the Supreme Court Constituted an expert committee to assess the existing regulatory framework and asked the stock market regulator SEBI to complete the probe into the allegations.
Deloitte said Adani Group did not consider it necessary to conduct an independent external investigation into the allegations as they are under evaluation and investigation. Securities and Exchange Board of India (SEBI).
“The group’s assessment does not constitute sufficient appropriate audit evidence for the purposes of our audit,” Deloitte said in the notes to the APSEZ financial statements.
In the absence of an independent external investigation and pending completion of the investigation by SEBI, the auditor stated that it cannot comment whether the company was fully compliant with the law and if the transaction was flagged in the financial statements There may be potential adjustments and/or disclosures. in relation to the parties concerned.
A six-member expert panel appointed by the Supreme Court this month, in its interim report, found no regulatory failure or signs of price manipulation in Adani Group shares.
The transactions flagged by Deloitte include engineering, procurement and construction (PEC) purchase contracts with a subsidiary of a party identified in the Hindenburg Report.
“As on March 31, 2023, the net balance amount of Rs 2,749.65 crore is recoverable from this contractor,” it said. “Additionally, there were financing transactions (including equity) with/by certain other parties identified in the allegations made in the short seller report, which the group we represent were not related parties.
Deloitte said with respect to the financing transaction that all payments have no outstanding balance.
It said the group had “renegotiated the terms of the sale of its container terminal under construction in Myanmar” to Anguilla-incorporated Solar Power Ltd. The sale consideration was revised to Rs 246.51 crore from Rs 2,015 crore and an impairment charge. The group informed the auditor that it is not a related party.
Deloitte said it conducted its audit in accordance with the Standards on Auditing specified under the Companies Act, 2013. “We are independent of the group and its joint ventures in accordance with the code of conduct issued by the Institute of Chartered Accountants of India.”
In the auditors’ report on the fourth quarter and 2022-23 financials audit, Deloitte Haskins & Sells LLP highlighted transactions with three entities, which the company said were unrelated parties.
Deloitte, however, said it could not authenticate the company’s statement as no independent external investigations had been conducted to substantiate the claims.
Hindenburg Research, in its January 24 report that leveled allegations of fraud, stock manipulation and money laundering against the Adani group, had also flagged inadequate disclosure of related party transactions.
While the group has denied all allegations, the Supreme Court Constituted an expert committee to assess the existing regulatory framework and asked the stock market regulator SEBI to complete the probe into the allegations.
Deloitte said Adani Group did not consider it necessary to conduct an independent external investigation into the allegations as they are under evaluation and investigation. Securities and Exchange Board of India (SEBI).
“The group’s assessment does not constitute sufficient appropriate audit evidence for the purposes of our audit,” Deloitte said in the notes to the APSEZ financial statements.
In the absence of an independent external investigation and pending completion of the investigation by SEBI, the auditor stated that it cannot comment whether the company was fully compliant with the law and if the transaction was flagged in the financial statements There may be potential adjustments and/or disclosures. in relation to the parties concerned.
A six-member expert panel appointed by the Supreme Court this month, in its interim report, found no regulatory failure or signs of price manipulation in Adani Group shares.
The transactions flagged by Deloitte include engineering, procurement and construction (PEC) purchase contracts with a subsidiary of a party identified in the Hindenburg Report.
“As on March 31, 2023, the net balance amount of Rs 2,749.65 crore is recoverable from this contractor,” it said. “Additionally, there were financing transactions (including equity) with/by certain other parties identified in the allegations made in the short seller report, which the group we represent were not related parties.
Deloitte said with respect to the financing transaction that all payments have no outstanding balance.
It said the group had “renegotiated the terms of the sale of its container terminal under construction in Myanmar” to Anguilla-incorporated Solar Power Ltd. The sale consideration was revised to Rs 246.51 crore from Rs 2,015 crore and an impairment charge. The group informed the auditor that it is not a related party.
Deloitte said it conducted its audit in accordance with the Standards on Auditing specified under the Companies Act, 2013. “We are independent of the group and its joint ventures in accordance with the code of conduct issued by the Institute of Chartered Accountants of India.”