New Delhi: A member firm of EY India, a longtime auditor of Adani Group companies, is being scrutinised by India's accounting regulator National Financial Reporting Authority (NFRA), news agency Bloomberg reported Wednesday, quoting sources. The report said the NFRA recently launched an inquiry into SR Batliboi, the EY member firm. In its response, the Adani Group said it "rejects" any suggestion of a violation of regulations on its part.
With reference to the Bloomberg report, a spokesperson for the Adani Group said: “We strongly reject any suggestion that Adani Group and its businesses have not acted as per the regulations and accounting standards of the jurisdictions in which we operate."
The statement added: “The Adani Group has always conducted its business in compliance with all applicable laws and regulations and is confident about its practices, governance and disclosures.”
Batliboi audits five Adani firms – Adani Power, Adani Green Energy, Adani Wilmar, besides ACC and Ambuja Cements, the two cement companies recently acquired by the group.
NFRA Probe 'Part Of Ongoing Investigation'
According to the Bloomberg report, the NFRA has requested files and communications linked to audits of some of Adani's companies going as far back as 2014.
Quoting a source familiar with the matter, meanwhile, a Reuters report said the NFRA probe is "a part of the investigation going on regarding Adani companies". It said all audit firms that have audited Adani companies "will go through the same process".
The Bloomberg report comes two months after Deloitte resigned as auditor of Adani Ports and nine months after short-seller Hindenburg came out with a damaging report accusing the Adani Group of improper use of tax havens and other business deals. The Adani Group has thoroughly denied the allegations raised in the Hindenburg report. On Deloitte's decision to quit as auditor, the group had said the grounds — "difference of opinion" — was "not convincing or sufficient to warrant such a move".