Certainly one of Gautam Adani’s greatest worldwide companions, TotalEnergies
(TOT), stated Friday that his Indian conglomerate is getting ready to nominate a world accounting agency to conduct a “common audit” of its enterprise.
In an announcement detailing what it described as its “restricted” publicity of $3 billion to Adani Group companies, the French firm stated it “welcomes the announcement by Adani to mandate one of many ‘massive 4’ accounting companies to hold out a common audit.”
Buyers have been fleeing Adani’s firms since a US quick 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 complete, Adani Group firms have misplaced $110 billion in market worth.
One of many world’s greatest vitality 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 Large 4 accounting companies 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 known 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 gives the agency’s web site tackle.
The tackle now seems invalid. In its report, Hindenburg Analysis stated 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 companies was halted Friday after they fell to each day limits set by the Indian inventory trade. They embrace Adani Complete Gasoline and Adani Inexperienced Power, ventures by which TotalEnergies has invested.
In its assertion, the French vitality big stated it had made investments in Adani’s entities “in full compliance” with Indian legal guidelines and with its personal inner governance processes. The due diligence had been accomplished to its “satisfaction” and was “according to greatest 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 an in depth ally of India’s prime minister, Narendra Modi, and is without doubt one of the world’s richest individuals. Final week, he had a internet value of $120 billion, making him the fourth-richest particular person globally. His internet value has now fallen to a bit 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.