Certainly one of Gautam Adani’s largest worldwide companions, TotalEnergies
(TOT), mentioned Friday that his Indian conglomerate is making ready to nominate a world accounting agency to conduct a “common audit” of its enterprise.
In a press release detailing what it described as its “restricted” publicity of $3 billion to Adani Group companies, the French firm mentioned it “welcomes the announcement by Adani to mandate one of many ‘huge 4’ accounting corporations to hold out a common audit.”
Buyers have been fleeing Adani’s firms since a US brief vendor, Hindenburg Analysis, accused the group of fraud and inventory market manipulation final month. Adani has denied the allegations however shares in Adani Enterprises, his flagship agency, have misplaced greater than 60% since they surfaced final week. In whole, Adani Group firms have misplaced $110 billion in market worth.
One of many world’s largest power firms, TotalEnergies is uncovered to Adani by way of investments in 4 joint ventures in India.
Adani Group declined to touch upon whether or not it was planning to nominate one of many Massive 4 accounting corporations as auditor. CNN contacted the 4 auditors — Deloitte, EY, KPMG and PwC — however none of them responded instantly to a request for remark.
Adani Enterprises used a small Indian agency referred to as Shah Dhandharia & Co to audit its 2021-2022 accounts, in accordance with its annual report. A doc on Adani Enterprises’ web site dated January 13, 2023, additionally names Shah Dhandharia as “statutory auditors” and offers the agency’s web site tackle.
The tackle now seems invalid. In its report, Hindenburg Analysis mentioned historic archives of the agency’s web site confirmed that it had solely 4 companions and 11 staff.
Buying and selling in 5 listed Adani corporations was halted Friday after they fell to every day limits set by the Indian inventory alternate. They embody Adani Complete Gasoline and Adani Inexperienced Power, ventures through which TotalEnergies has invested.
In its assertion, the French power big mentioned it had made investments in Adani’s entities “in full compliance” with Indian legal guidelines and with its personal inside governance processes. The due diligence had been accomplished to its “satisfaction” and was “in step with finest practices,” it added.
The assured tone stands in stark distinction to the devastating allegations made by Hindenburg Analysis in its January 24 report. The Adani Group has denounced it as “baseless” and “malicious,” however analysts say the group hasn’t convincingly answered the questions raised by the report.
Adani is seen as a detailed ally of India’s prime minister, Narendra Modi, and is likely one of the world’s richest individuals. Final week, he had a internet value of $120 billion, making him the fourth-richest individual globally. His internet value has now fallen to a bit of greater than $61 billion and claims the twenty first spot on Bloomberg’s Billionaires Index.
— Diksha Madhok in New Delhi and Anna Cooban in London contributed to this text.