News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
Adani Auditor EY Faces Inquiry by Accounting Regulator NFRA
PrintThe National Financial Reporting Authority (NFRA), the country's accounting regulator, has initiated an inquiry against one of the member firms of Adani Group's longtime auditors EY, Bloomberg reported on October 25, citing sources privy to the development.
The inquiry was started in recent weeks against S.R. Batliboi, one of EY's member firms in India, the persons aware of the matter told the news agency.
The regulator has requested files and communications related to its audits on some of the companies controlled by billionaire Gautam Adani going as far back as 2014, the report claimed, adding that it was unclear how long NFRA’s inquiry could take or what repercussions, if any, could be faced by the auditor and Adani’ Group companies.
S.R. Batliboi, notably, is the statutory auditor of five listed Adani companies that produce about half of the group’s revenues. The inquiry, as claimed in the report, underscores the lingering questions around accounting and disclosures by the ports-to-power conglomerate that faced a brutal short seller attack in January.
Adani Group, which had forcefully denied Hindenburg’s allegations of corporate malfeasance, is also under a court-mandated probe by market regulator SEBI.
Besides being the current auditors for Adani Power Ltd., Adani Green Energy Ltd., the consumer goods firm Adani Wilmar Ltd. and the two cement makers the tycoon acquired from Holcim Ltd. last year, S.R. Batliboi also signed off on the books of Adani Ports & Special Economic Zone Ltd., the conglomerate’s crown jewel, for a decade leading to 2017.
Indian law prohibits foreign accounting firms from registering as auditors in the country. That’s why Big Four firms including EY operate through independently run affiliates.
Hindenburg raised questions over Adani’s accounting and audits in a January report that erased more than $150 billion in market value at one point from the conglomerate’s listed companies.
The group said in a January 29 rebuttal that its firms are audited by “duly certified and qualified" professionals. (With Bloomberg inputs)
The inquiry was started in recent weeks against S.R. Batliboi, one of EY's member firms in India, the persons aware of the matter told the news agency.
The regulator has requested files and communications related to its audits on some of the companies controlled by billionaire Gautam Adani going as far back as 2014, the report claimed, adding that it was unclear how long NFRA’s inquiry could take or what repercussions, if any, could be faced by the auditor and Adani’ Group companies.
S.R. Batliboi, notably, is the statutory auditor of five listed Adani companies that produce about half of the group’s revenues. The inquiry, as claimed in the report, underscores the lingering questions around accounting and disclosures by the ports-to-power conglomerate that faced a brutal short seller attack in January.
Adani Group, which had forcefully denied Hindenburg’s allegations of corporate malfeasance, is also under a court-mandated probe by market regulator SEBI.
Besides being the current auditors for Adani Power Ltd., Adani Green Energy Ltd., the consumer goods firm Adani Wilmar Ltd. and the two cement makers the tycoon acquired from Holcim Ltd. last year, S.R. Batliboi also signed off on the books of Adani Ports & Special Economic Zone Ltd., the conglomerate’s crown jewel, for a decade leading to 2017.
Indian law prohibits foreign accounting firms from registering as auditors in the country. That’s why Big Four firms including EY operate through independently run affiliates.
Hindenburg raised questions over Adani’s accounting and audits in a January report that erased more than $150 billion in market value at one point from the conglomerate’s listed companies.
The group said in a January 29 rebuttal that its firms are audited by “duly certified and qualified" professionals. (With Bloomberg inputs)
Category : Auditing | Comments : 0 | Hits : 966
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments