India’s accounting regulator is investigating an EY member firm that audits five companies that are part of billionaire Gautam Adani’s eponymous conglomerate, a source familiar with the matter said on Wednesday.
The National Financial Reporting Authority (NFRA) started an inquiry into S.R. Batliboi a few weeks back, the source said, declining to be named as they are not authorised to talk to the media on the matter.
S.R.Batliboi currently audits three listed Adani group firms —Adani Power, Adani Green Energy and Adani Wilmar — as well as recently acquired cement companies ACC and Ambuja Cements.
“The inquiry is a part of the investigation going on regarding Adani companies and all auditors who have audited Adani companies will go through the same process,” the source said, without sharing further details.
EY India, S.R. Batliboi, the NFRA and the Adani group did not respond to Reuters’ requests for comment. Bloomberg News first reported the news.
Bloomberg, citing people familiar with the matter, said the regulator had requested files and communications related to Batliboi’s audits on some Adani-controlled companies going as far back as 2014.
It was not clear how long the inquiry could take or the repercussions, if any, for either party, the report said.
The news comes months after the Adani conglomerate was thrown into turmoil after short-seller Hindenburg accused the group of improper use of tax havens and other business dealings, allegations it has denied.
In August, Deloitte resigned as auditor of Adani Ports , the first such move since that report in January, amid concerns over certain related-party transactions that Hindenburg had raised and which the company did not wish to look into independently.
The conglomerate’s seven listed firms lost about $150 billion of their combined market capitalisation after the Hindenburg report and have only recovered a part of those losses after paying down some debt.
The National Financial Reporting Authority (NFRA) started an inquiry into S.R. Batliboi a few weeks back, the source said, declining to be named as they are not authorised to talk to the media on the matter.
S.R.Batliboi currently audits three listed Adani group firms —Adani Power, Adani Green Energy and Adani Wilmar — as well as recently acquired cement companies ACC and Ambuja Cements.
“The inquiry is a part of the investigation going on regarding Adani companies and all auditors who have audited Adani companies will go through the same process,” the source said, without sharing further details.
EY India, S.R. Batliboi, the NFRA and the Adani group did not respond to Reuters’ requests for comment. Bloomberg News first reported the news.
Bloomberg, citing people familiar with the matter, said the regulator had requested files and communications related to Batliboi’s audits on some Adani-controlled companies going as far back as 2014.
It was not clear how long the inquiry could take or the repercussions, if any, for either party, the report said.
The news comes months after the Adani conglomerate was thrown into turmoil after short-seller Hindenburg accused the group of improper use of tax havens and other business dealings, allegations it has denied.
In August, Deloitte resigned as auditor of Adani Ports , the first such move since that report in January, amid concerns over certain related-party transactions that Hindenburg had raised and which the company did not wish to look into independently.
The conglomerate’s seven listed firms lost about $150 billion of their combined market capitalisation after the Hindenburg report and have only recovered a part of those losses after paying down some debt.
