New Delhi: Deloitte, Haskins & Sells LLP has resigned as the statutory auditors of Adani Ports and Special Economic Zone (APSEZ).In May, the audit firm had flagged some transactions by Adani Group, citing allegations from US-based short seller Hindenburg Research’s report that wiped off half of the market value of the ports-to-power conglomerate.The Morning Context had reported that the auditor said the group’s evaluation of the Hindenburg report is insufficient evidence for the purpose of audit.The report had said, citing Deloitte’s note, that the company has also refused to get an independent external examination that would help prove so. This is because the Securities and Exchange Board of India (SEBI) is investigating the allegations made by Hindenburg Research against Adani Group.Deloitte, therefore, said that it cannot comment if the company was fully compliant with local laws, Bloomberg reported.APSEZ said Deloitte had resigned because it was not given a “wider audit role” covering other listed Adani portfolio companies, the Telegraph reported.It claimed that Deloitte had indicated its position at a recent meeting with the APSEZ management and its audit committee, which comprises four independent directors. “There are no other reasons other than (that) mentioned in the resignation letter received from the statutory auditors dated August 12.”The resignation letter from Deloitte, which was appended to the regulatory filing, said: “We are tendering our resignation …with immediate effect because we are not statutory auditors of a substantial number of other Adani group companies…including an Adani group company (and its subsidiaries) after our completion of our term of five years.”It wasn’t clear which Adani group company Deloitte was referring to.Adani Ports said in a regulatory filing that Deloitte had been its statutory auditor since May 2017.In July 2022, the company reappointed Deloitte as its statutory auditor for another term of five years.
