‘Market rumour’: Adani Group issues clarification on reports of hiring Grant Thornton to conduct fresh audit

Adani Group has issued a clarification on media reports that stated that the conglomerate had hired accountancy firm Grant Thornton for independent audits of some of its companies. The conglomerate called the hiring news “market rumour”. 

“We would like to clarify that the said news item appears to be a market rumour and hence it would be inappropriate on our part to comment on it. We wish to confirm that we have made and will continue to make disclosures in compliance with our obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and our agreements with the stock exchanges,” it said in an exchange filing. 

Multiple reports had said that Grant Thornton was hired by Adani Group to discredit claims by short seller Hindenburg Research, whose damning report battered the conglomerate’s stocks and bonds. 

It said that Grant Thornton’s hiring was the first major effort by Adani Group to defend itself following the Hindenburg report. The hiring of Grant Thornton came about after Adani Group previously suggested independent evaluation of issues relating to legal compliance, related party transactions and internal controls.

The accountancy firm was hired, reports added, to conduct independent audits of some Adani Group companies, and look at whether related-party transactions at the Adani Group complied with corporate governance standards.

Hindenburg had raised questions on Adani’s independent auditor, Shah Dhandharia too. It said that the local auditor hardly appeared capable of auditing a company of Adani’s size. Hindenburg said that the firm had four partners and 11 employees. The only other listed company it audited had an m-cap of $7.8 million. Its partners who signed off on Adani Enterprises and Adani Total Gas’ audit reports were 24 and 23 years old, who Hindenburg said, appeared to be fresh out of college. 

Also read: Adani hires Grant Thornton for some independent audits after Hindenburg fallout

Also read: Adani Power’s Rs 7,017-crore acquisition deadline of DB Power expires