Deloitte has resigned as auditor of the Adani Group’s port company, with the firm run by billionaire Gautam Adani saying the auditor wanted a wider remit over other firms in the conglomerate.
In a statement, Adani Ports & Special Economic Zone (APSEZ) confirmed the resignation and appointment of M S K A & Associates as the new auditor.
Deloitte has been the auditor of APSEZ since 2017. In July 2022, it was given another five-year term.
“In Deloitte’s recent meeting with APSEZ management and its Audit Committee, Deloitte indicated a lack of a wider audit role as auditors of other listed Adani portfolio companies. 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 said.
APSEZ conveyed that it was not within the remit of the firm 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.
“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,” it said.
APSEZ in a statement on Saturday said, “In response to a query by the Audit Committee, Deloitte confirmed that they have received all the APSEZ information from the management of the company. The same has been confirmed by Deloitte in their resignation letter dated August 12, 2023, to the company.”
APSEZ said, “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’23 filing.”
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