The Adani Group, one of India’s most prominent conglomerates, has changed auditors for its numerous subsidiaries based in the United Kingdom, leaving behind Crowe UK for a smaller London-based firm.
What Happened: As per a Reuters report on Tuesday, the Adani Group has transitioned the auditing of its main UK subsidiaries to Ferguson Maidment & Co. The previous auditor, Crowe UK, had stepped down in March. Ferguson Maidment & Co was responsible for auditing the annual accounts that Adani Energy Holdings and its subsidiaries filed with the British government agency Companies House last month.
Earlier in August, Deloitte, the auditor of Adani Ports, resigned citing concerns over certain transactions that were flagged in Hindenburg’s short-seller report. The conglomerate, led by billionaire Gautam Adani, later stated that Deloitte’s reason for resigning as the company’s auditor was “not convincing or sufficient to warrant such a move”.
Why It Matters: This change of auditors comes at a critical time for the Adani Group, as it faces increased scrutiny over its financial dealings. The departure of Deloitte as the auditor for Adani Ports earlier this year, coupled with the recent change in auditors for the UK subsidiaries, raises questions about the conglomerate’s financial transparency. With the appointment of the new auditor, the Adani Group aims to regain the confidence of investors and stakeholders potentially unsettled by the departure of the previous auditor.
This development adds another chapter to the ongoing narrative surrounding the Adani Group’s financial practices, and the market will be watching closely to see how the new auditing relationship unfolds.
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