Adani Ports switches to MSKA & Associates following Deloitte’s resignation

In an intriguing development, Adani Ports has announced the appointment of MSKA & Associates as their statutory auditors. This decision, effective from August 12, follows the recent board meeting where Deloitte Haskins & Sells LLP’s resignation was accepted. The arrangement with MSKA & Associates is set to last until the firm’s forthcoming annual general meeting, slated for 2024, according to the company’s disclosure to the regulators.

Back in May, the Indian arm of Deloitte ruffled some feathers by voicing concerns regarding financial transactions carried out between Adani Ports and three among Adani’s purportedly unrelated entities. At that juncture, Deloitte was unable to verify the claims made by Adani and determine their full compliance with local laws. Reports emerged on Friday, indicating Deloitte’s plan to step down.

In its resignation letter dated August 12, Deloitte Haskins & Sells stated that the resignation stemmed from them not serving as statutory auditors for a significant count of other Adani Group Companies.

This incident has sparked renewed emphasis on Adani Group’s fiscal management, with the business empire run by Indian tycoon, Gautam Adani, at its helm. Previously, Adani Group had rebuffed allegations made by Hindenburg concerning alleged misuse of tax havens and various business dealings.

Speaking about the matter for the primary instance, Adani Ports released a statement denoting that Deloitte, in its meetings with the company’s leadership, expressed frustration concerning the lack of a broader auditing role with other listed Adani companies.

However, Adani Ports responded to Deloitte by indicating that such appointments were beyond its scope as the other businesses were “completely independent”. Gopal Krishna Pillai, Chairman of Adani Ports’ Audit Committee, noted in a statement that the reasons given by Deloitte for its resignation from the Statutory Auditor role did not hold up to scrutiny.

Krishna Pillai stated, “The Audit Committee was of the view that the grounds advanced by Deloitte for resignation as Statutory Auditor were not convincing or sufficient to warrant such a move.” Pillai then confirmed that Deloitte was not keen on carrying on in their position and a decision was reached to “amicably end the client-auditor contractual relationship.” This saga serves as a pivotal example of the complexities within the corporate sphere, adding to our understanding of the intricate interrelations between major business entities.