Adani Group faces independent audit amid $92 billion meltdown: report
India’s Adani Group plans to hire one of the ‘Big Six’ accounting firms to assess its corporate governance and auditing practices following allegations of fraud by short seller Hindenburg. mint newspaper reports.
The audit is commissioned after the Group’s entity, Adani Enterprises Ltd, has completed a subsequent public offering and based on its findings legal avenues are being sought to mint reported citing two people with direct knowledge of the matter.
“The audit will cover eight of the group’s listed companies. The independent audit report will be submitted to the board of directors and based on the findings, the matter will be taken to court if the board of Adani Enterprises so decides.” mint quotes one of the sources as saying.
The audit will include a review of certain related party transactions, accounting practices and companies’ compliance with corporate governance standards, the report said, adding that it will also seek to verify whether Hindenburg’s claims are accurate.
Adani did not immediately respond to a Reuters request for comment after regular business hours.
Separately, India’s National Stock Exchange of India (NSE) on Monday revised listing limits for Adani Transmission Ltd, Adani Total Gas Ltd and Adani Green Energy Ltd from 20 percent to 10 percent, according to the exchange’s website.
These limits are set by the exchange to prevent large price movements in stocks in a very short period of time.
Hindenburg’s research report last week accused the conglomerate of abusing offshore tax havens and raising concerns about high debt, eroding the group’s combined market value by $65 billion ($92 billion).
https://www.smh.com.au/business/companies/adani-group-set-for-independent-audit-amid-92b-meltdown-report-20230131-p5cgp6.html?ref=rss&utm_medium=rss&utm_source=rss_business Adani Group faces independent audit amid $92 billion meltdown: report