HomeFinanceDeloitte Resigns as Adani Group's Port Company Auditor Amidst Wider Remit Dispute

Deloitte Resigns as Adani Group’s Port Company Auditor Amidst Wider Remit Dispute

Deloitte, a prominent audit firm, has officially stepped down from its role as the auditor for the Adani Group’s port company, citing a desire for an expanded scope of responsibilities that encompassed other entities within the conglomerate led by billionaire Gautam Adani. Responding to this change, Adani Ports & Special Economic Zone (APSEZ) has affirmed the resignation and introduced M S K A & Associates as its new auditor.

Since 2017, Deloitte had served as the auditor for APSEZ. This association was extended for an additional five-year term in July 2022. However, recent developments have led to a rift between the two parties.

In the course of discussions between Deloitte and the management of APSEZ, the audit firm expressed its aspiration for a broader audit mandate that encompassed various publicly listed companies within the Adani portfolio. The Audit Committee of APSEZ, upon evaluating Deloitte’s request, found the reasoning provided for resignation lacking in persuasiveness or substance to warrant such a drastic step.

APSEZ clarified that its responsibility and authority, as well as that of its Board, did not encompass making group-wide appointments. Each of the listed Adani portfolio companies functioned as distinct entities, possessing separate boards, executive teams, and minority shareholders.

As a result of these differences, Deloitte chose not to continue its role as APSEZ’s statutory auditor. Consequently, both parties agreed to an amicable termination of their client-auditor contractual relationship.

In response to these developments, APSEZ released a statement on a Saturday, confirming that Deloitte had received all relevant information from the company’s management. Deloitte itself acknowledged this fact in its resignation letter dated August 12, 2023.

Regarding the concerns raised in Deloitte’s resignation letter, APSEZ reassured stakeholders that the highlighted “other matters” were fully disclosed and addressed in the financial statements for the fiscal year 2023. The company expressed unwavering confidence that these matters would be appropriately resolved in the upcoming filing for September 2023.

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