Refuting the accounting investigation by US-based Hindenburg Research, Adani Enterprises (AEL) said that out of the group’s nine listed forms, eight are audited by one of the big six auditing firms.
The detailed statement came as Adani Group stocks lost more than Rs 4 trillion in market capitalisation and the group’s 20,000-crore follow-on-public (FPO) opened on January 27 got just one per cent subscription on day one.
According to the group’s statement, Adani Ports and SEZ and Adani Transmission are audited by Deloitte Haskins & Sells. SRBC & C. (EY) audits Adani Power and Adani Green Energy. The company added that it is an incubator and has businesses in different sectors and subsidiaries and associates in eight jurisdictions. There are more than 27 statutory audit firms that audit different entities within Adani Enterprises. For instance, Grant Thornton audits Adani Airports subsidiary MIAL (Mumbai International Airport). The six other airports are audited as per Airport Authority of India panel provisions in the concession agreement by the audit firm, Gayendra & Co.
Referring to the allegation of revenue or balance sheet inflation, the company statement said that six of its nine listed firms are subjected to specific sector regulatory reviews for revenue, costs, and capital expenditure. Moreover, it is consistently filing reports for market regulators like Sebi, BSE, and NSE.
Regarding the corporate governance issue, the company said four of its large companies are in the top seven per cent of the peer group in emerging markets. The overall promoter leverage is less than four per cent of the promoter holding, said the company on the leverage against shares (LAS) issue.
The company also said that the 21 questions on related-party transactions by Hindenburg and reference to court cases come from the group companies’ public disclosures from 2015 onwards. Commenting on the allegation of leverage or over-leverage of group companies, AEL said that 100 of its different companies are rated by top firms such as Moody’s.