Adani Ports shares fall as Deloitte resigns as statutory auditor; Adani firm appoints MSKA & Associates

Shares of Adani Ports and Special Economic Zone Ltd (Adani Ports) fell nearly 4 per cent in Monday's trade after Deloitte Haskins & Sells LLP tendered its resignation as statutory auditor of the company and its material subsidiaries. Adani Ports had in July 2022 reappointed Deloitte as its statutory auditor for another term of five years.

As per Adani Ports, Deloitte in its recent meeting indicated a lack of a wider audit role as auditors of other listed Adani portfolio companies. Following the development, the stock fell 3.61 per cent to hit a low of Rs 771.70 on BSE.

"The Audit Committee was of the view that the grounds advanced by Deloitte for resignation as statutory auditor were not convincing or sufficient to warrant such a move. It was also conveyed that it is not within the remit of the APSEZ and its board to recommend group-wide appointments as other listed Adani portfolio companies are completely independent, with separate boards, executive teams and minority shareholders," Adani Ports said.

Following this, Deloitte was not willing to continue as APSEZ’s statutory auditor and, therefore, it was agreed to amicably end the client-auditor contractual relationship between APSEZ and Deloitte, Adani Ports told stock exchanges.

Deloitte, however, confirmed that it received all the Adani Ports information from the management of the company.

"The ’Other Matters’ highlighted in the auditor’s resignation are adequately disclosed and addressed in our FY23 financial statements. We are fully confident that these matters will be appropriately resolved in our September 2023 filing," Adani Ports said.

Adani Ports, meanwhile, announced the appointment of MSKA & Associates Chartered Accountants as its new auditor.

G. K. Pillai, Chairman of the Audit Committee of APSEZ, stated, "The Audit Committee/Board is pleased to appoint M/s. M S K A & Associates, a member firm of BDO International, a Top 6 global audit firm, as APSEZ's auditor."

Also read: ITC to share Q1 results today. Profit to growth in double-digits, margins to expand

Also read: Stocks in news: ITC, Adani Ports, Tata Steel, Nykaa, Vodafone Idea, HDFC Bank & CarTrade