Adani Ports auditor Deloitte Huskins quits owing to differences over recording transactions

14 Aug 2023 , 10:07 AM

Deloitte Haskins & Sells LLP quits as Adani Ports & SEZ's auditor, after only a year on the job, due to disagreements with business management regarding the auditor's position on some transactions.

Following this development, Adani Ports fell over 3% in today’s trade to Rs 771.55.

At around 9.55 AM, Adani Ports was trading 3.37% lower at Rs 771.55, against the previous close of Rs 801.05 on NSE.

According to the company's FY22 annual report, the audit firm was reappointed as the statutory auditor just last year for a five-year term.

This would be the third auditor change for Adani Group entities in the last few months. Shah Dhandharia & Co. LLP left their position as Adani Total Gas' auditor in May 2023. Walker Chandiok & Co. LLP took its place.

Deloitte drew notice of certain issues in the auditor review report that were included in Adani Ports' June 2023 quarterly results statement in a filing with the stock exchanges on August 8, 2023.

First, the business reported a net balance of Rs 3,871 crore receivable from an EPC contractor who was not a related party. However, in a short seller report produced in January 2023, the contractor was recognized as a related party. In the June 2023 quarter, the net balance with the contractor increased by Rs 122 crore sequentially. Several other issues were flagged by Deloitte.

According to a recent release from Adani Ports, top professional services firm MSKA Associates, an affiliate of BDO International, will succeed Deloitte Haskins & Sells LLP as statutory auditor of Adani Ports & SEZ (APSEZ).

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