Adani Group appoints MSKA & Associates as new auditor for Adani Ports and Special Economic Zone

Deloitte's resignation as the auditor of the Adani Group's port company comes after the firm led by billionaire Gautam Adani stated that the auditor wanted a broader scope involving other companies within the conglomerate, following a report from a US short seller.

This move to replace the auditor comes in the wake of Deloitte raising concerns over certain transactions highlighted in the report by Hindenburg Research.

In an official statement, Adani Ports & Special Economic Zone (APSEZ) confirmed the resignation of Deloitte and the appointment of M S K A & Associates as the new auditor.

Deloitte had been the auditor for APSEZ since 2017, and in July 2022, it was granted an additional 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 clarified that the responsibility and authority of the firm and its Board do not extend to recommending group-wide appointments. This is because other listed Adani portfolio companies operate independently, with distinct 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.