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Adani Group to hire ‘Big Four’ firms to conduct general audit

Vivid News 24: The largest foreign partner of Gautam Adani, TotalEnergies, announced on Friday that his Indian conglomerate is getting ready to hire a worldwide accounting firm to perform a “general audit” of its operations. The French company described its $3 billion in “limited” exposure to Adani Group operations and said it “welcomes the announcement by Adani to compel one of the “big four” accounting firms to carry out a general audit.”

Investors have started to leave Adani’s businesses ever since a US short seller, Hindenburg Research, accused the company of fraud and stock market manipulation last month. Although Adani has refuted the accusations, his main company’s stock has fallen more than 60% since they first surfaced last week. Overall, the market capitalization of Adani Group companies has declined by $110 billion.

Also Read Nirmala Sitharaman Says “Regulators Will Do Their Job” On Adani Fraud Allegations

One of the biggest energy companies in the world, TotalEnergies, is exposed to Adani through investments in four joint ventures in India. Regarding whether it intended to hire one of the Big 4 accounting firms as its auditor, Adani Group declined to comment. CNN contacted the four auditors, Deloitte, EY, KPMG, and PwC, but none of them responded right away to a request for comment.

According to its annual report, Adani Enterprises contracted with a small Indian firm called Shah Dhandharia & Co to examine its financial records for the years 2021–2022. Shah Dhandharia is listed as “statutory auditors” in a document on Adani Enterprises’ website dated January 13, 2023, which also gives the website address of the company.

The address now seems to be incorrect. According to Hindenburg Research’s analysis, the firm had only four partners and 11 employees when historical archives of the website were examined. Five Adani companies that are publicly traded had their trading halted on Friday after they reached the Indian stock exchange’s daily limitations.

They consist of the businesses TotalEnergies has invested in, Adani Total Gas and Adani Green Energy. In a statement, the French energy titan asserted that its investments in Adani’s companies were made “in total compliance” with Indian law and its internal governance practices.

It stated that the completion of the due diligence was to its “satisfaction” and was “compatible with best procedures.” The assured tone is in sharp contrast to the horrifying claims made by Hindenburg Research in their report on January 24. The Adani Group has called it “baseless” and “malicious,” but analysts claim the group hasn’t provided a credible response to the issues the report raises.

Adani, one of the wealthiest people alive, is thought to as a close ally of India’s Prime Minister, Narendra Modi. He was the fourth richest person in the world as of last week because of his $120 billion net worth. He currently holds the 21st position on Bloomberg’s Billionaires Index with a net worth of just over $61 billion.

Also Read Adani crisis: Reserve Bank of India says, “The banking sector is resilient and stable”

Vivid News-24 Desk
Vivid News-24 Deskhttps://vividnews24.com
Vivid News-24 News India's new growing news website. Which provides some specific categories of news, top world news, entertainment, sports, new technology, politics etc.
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