Deloitte flags Adani Ports transactions

May 31, 2023 15:50

Auditor Deloitte flagged three transactions, including recoveries from a contractor identified in the Hindenburg report, as it issued a qualified opinion on the accounts of Adani Ports & Special Economic Zone.

In the auditors' report on the audit of the fourth quarter and 2022-23 financials, Deloitte Haskins & Sells LLP highlighted transactions with three entities, which the company said were unrelated parties.

Deloitte however said it could not attest to the company's statement as no independent external examination has been done to prove the claims. Hindenburg Research in its January 24 report that levelled allegations of fraud, stock manipulation, and money laundering against the Adani group, had also flagged inadequate disclosures of related party transactions.

While the group has denied all allegations, the Supreme Court constituted an expert committee for assessment of the extant regulatory framework and asked stock market regulator SEBI to complete its probe into allegations. Deloitte said the Adani group did not consider it necessary to have an independent external examination of these allegations because of their evaluation and the ongoing investigation by the Securities and Exchange Board of India (SEBI).

"The evaluation performed by the group does not constitute sufficient appropriate audit evidence for the purposes of our audit," Deloitte said in notes to APSEZ financial statement. In the absence of the independent external examination and the pending completion of investigation by SEBI, the auditor said it cannot comment if the company was fully compliant with the law and if the transactions flagged may result in possible adjustments and/or disclosures in the financial statement in respect of related parties.

The six-member expert panel appointed by the Supreme Court this month found no regulatory failure or signs of price manipulation in the Adani Group stocks in its interim report.

The transactions flagged by Deloitte included engineering, procurement and construction (PEC) purchase contracts with a subsidiary of a party identified in the Hindenburg report.

« Back to LIVE

TOP STORIES

Class 10 Gurugram student kills minor girl amid theft bid, sets afire body

The families of the victim and the accused both stay in two separate towers of Signature Global Solera, Sector 107, Gurugram and they were on good terms, they said.

Wimbledon PIX: Gauff, Osaka, Alcaraz in second round

IMAGES from Day 1 of the Wimbledon Championships, at the All England Lawn Tennis and Croquet Club, London, on Monday.

Sabalenka, Azarenka out of Wimbledon with shoulder injuries

Sabalenka, who was set to face American Emina Bektas, was replaced in the draw by Russian Erika Andreeva, while fellow Belarusian Azarenka's spot was taken up by another lucky loser in Frenchwoman Elsa Jacquemot.

Euro PIX: Kolo Muani scores late as France beat Belgium

Images from the Euro 2024 Round of 16 match between France and Belgium, at Dusseldorf Arena, Dusseldorf, Germany, on Monday.

India takes first steps to meet 2070 net-zero goal, Niti Aayog forms panels

Three years after India declared its goal to become a net-zero economy by 2070, the policy design for achieving the target has begun, with the NITI Aayog forming dedicated multi-sectoral committees to prepare a transition plan. In 2021,...