Adani Total Gas Auditor Resigns Amid Hindenburg Report Fallout

Shah Dhandharia & Co, the auditor mentioned in Hindenburg Research’s report on the Adani Group, has resigned as Adani Total Gas’ statutory auditor, citing professional pre-occupation.

What Happened? Adani Total Gas had appointed the auditor on July 26, 2022, for a five-year term, and the resignation occurred less than a year later. Shah Dhandharia & Co also serves as the auditor for the group’s flagship company, Adani Enterprises.

In its resignation letter, Shah Dhandharia & Co clarified that the resignation was not due to an inability to obtain sufficient appropriate audit evidence and emphasized that no other circumstances should be brought to the board’s attention.

On January 24, US-based short-seller Hindenburg Research accused the Adani Group of accounting fraud, market manipulation, and carrying high levels of insecure debt in a published report. The report highlighted a “key accounting red flag” and claimed that the use of Shah Dhandharia & Co as an auditor was one such malpractice.

See also: Adani Wilmar Shares Slump As Q4 Numbers Disappoint Investors

According to the investigation, the accounting firm had only four partners and 11 employees, with some employees as young as 23-24 years old. The partner who signed off on the company’s financials was 28 years old. The four partners in Shah Dhandharia & Co are CA Pravin Dhandharia, CA Harshil Shah, CA Shubham Rohatgi, and CA Ankit Ajmera.

Walter Chandiok & Co, the Indian branch of accounting firm Grant Thornton, will replace Shah Dhandharia & Co as the auditor for Adani Total Gas.

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