After taking over 4% on Wednesday, Adani Enterprises share price recovered on Thursday ahead of the company's Q4FY23 results. Adani Total Gas shares also recovered after falling more than 3% yesterday after Adani company's auditor named in the Hindenburg Research report resigned
Adani Enterprises is among a dozen companies that will announce its quarterly results on Thursday. So far this year, the stock has cracked more than 50%. In the last one year, Adani Enterprises share price has cracked 17%.
Shah Dhandharia & Co, the independent auditor at Adani Group flagship Adani Enterprises and Adani Total Gas, has resigned as statutory auditor of Adani Total Gas. It will be replaced by Walter Chandiok & Co.
The scathing Hindenburg report in January 2023, which eroded the value of several Adani group companies, had questioned the appointment of Shah Dhandharia & Co as the independent auditor. It had argued that the firm lacked the experience to handle such a huge mandate as it had only four partners and 11 employees and operated out of a tiny rented apartment
As per the Hindenburg report, some employees were as young as 23-24 years of age, while the partner who signed off on the company’s financials were 28. The 4 partners in Shah Dhandharia & Co are - CA Pravin Dhandharia (46), CA Harshil Shah (27), CA Shubham Rohatgi (28) and CA Ankit Ajmera (28)
“Our resignation does not result from an inability to obtain sufficient appropriate audit evidence. There are no other circumstances connected with our resignation which we consider should be brought to the notice of the board,” Shah Dhandharia said in its resignation letter
“We have completed our statutory audit (at Adani Total Gas) for the year-end March 31, 2023, and issued our reports on May 2, 2023,” the resignation letter added. Shah Dhandharia also said it had decided to step away “due to increased professional preoccupation in other assignments”.
Shah Dhandharia had been appointed as the statutory auditor of both Adani Total Gas and Adani Enterprises for a five-year term at the annual shareholders’ meeting in 2022. It has not been made clear whether the firm would also step down at Adani Enterprises, whose board is due to meet on Today to consider its financial results
Meanwhile, Adani Wilmar share increased marginally on Thursday as the Adani Group firm reported a 60% fall in net profit for the March 2023 quarter. The stock was last trading at Rs 398 on NSE against the previous close of Rs 397.