Amidst squabble on the Hindenburg reports, Adani group has appointed accountancy firm Grant Thronton for an independent audit of some of its companies in a bid to clear the damning allegations leveled by the US short-seller Hindenburg Research and assure its investors and regulators.
The appointment marks the first major effort by Adani Group to defend itself in the wake of a Jan. 24 report by Hindenburg that accused it of improper use of offshore tax havens and stock manipulation.
The audit according to sources, aims to prove to regulators like the RBI that the group is clean and is abiding by the relevant laws and regulations. The source added that Thrompton would look at whether related-party transactions at the Adani Group complied with corporate governance standards. It would see if there was any misappropriation or repatriation of funds and if loans were used for any purpose other than the one they were intended for, the source added.
The conglomerate has strongly denied the allegations, calling them “malicious”, “baseless” and a “calculated attack on India”. It called Hindenburg the “Madoffs of Manhattan”, referring to the late financier and fraudster Bernie Madoff. However, the accusations have impacted heavily leading to a loss of about $120 billion in market value in the last three weeks.
The group debunked reports of a cut in growth goal and capex. Projects may be delayed but none is shelved or deferred and plans for expansion of solar, green hydrogen and airports were on track, officials from the group said.
Grant Thronton is one of the world’s leading organizations of independent assurance, tax, and advisory firms spread across 140 countries. It is one of the largest fully integrated Assurance, Tax, and Advisory firms in the country.