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Adani Total Gas' Auditor Resigns Amidst Hindenburg Case Criticism

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Sparsh Goel
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Adani Hindenburg Row

Adani Hindenburg Row: The statutory auditor of Adani Total Gas was a tiny, Ahme­dabad-based chartered accountancy practise headed by a group of inexperienced auditors. The selection of Shah Dhandharia & Co as the independent auditor at group flagship Adani Enterprises and Adani Total Gas had been called into question in the report by US short-seller Hindenburg Research. It had contended that because the company only had four partners, 11 workers, and worked out of a small rental unit, it had the experience to execute such a large mandate.

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Shah Dhandharia writes a resignation letter

Shah Dhandharia wrote in its resignation letter on Tuesday, 'Our resignation did not come from an inability to gather adequate relevant audit proof.' There are no other circumstances related to our resignation that we believe the board should be made aware of. The choice was made public following a board meeting where the directors approved the financial outcomes for both the full fiscal year that concluded on March 31 and the fourth quarter (January to March). The resignation letter said, 'We have finished our statutory audit (at Adani Total Gas) for the year end March 31, 2023, and issued our reports on May 2, 2023.'

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Tycoon Gautam Adani and his accomplices were charged in the Hindenburg Research study

At the annual shareholders meeting in 2022, Shah Dhandharia had been chosen to serve as the statutory auditor for Adani Total Gas and Adani Enterprises for a five-year period. If the chartered accounting firm would also leave Adani Enterprises was not immediately clear. On May 4, the board of directors of the group's flagship will convene to discuss its financial performance. Tycoon Gautam Adani and his accomplices were charged in the Hindenburg Research study with manipulating stock prices and transferring money to the group's domestic enterprises through shadowy corporations based in foreign tax havens. The report, which was released on January 24, created a stock market earthquake and briefly caused the market capitalization of the Adani group to drop by approximately $140 billion. Gautam Adani, who is reported to be close to Prime Minister Narendra Modi, rose to the top of the list of the world's wealthiest people thanks to the phenomenal increase in the worth of the Adani enterprises during the previous two years.

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Adani Total Gas reported an increase in consolidated net profits of 21%

The Big Six accounting firms are Price Waterhouse, Ernst & Young, Deloitte & Touche, Ernst & Young, and Coopers & Lybrand. With the formation of PricewaterhouseCoopers in 1998 as a result of a merger and the demise of Arthur Andersen in 2002 as a result of the Enron scandal, they have since expanded into the Big 4. For the fourth quarter ended March 31, 2023, Adani Total Gas reported an increase in consolidated net profits of 21%. Net income increased to Rs 97.91 crore from Rs 81.09 crore during the same period the year before. Revenues increased from Rs. 1,185.50 crore to Rs. 1,197.31 crore over the same period last year.

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DNP India Adani Hindenburg Row Adani Total Gas
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