Hindenburg row: Adani Group ropes in Grant Thornton to conduct independent audit

The Adani Group, which is facing public scrutiny after revelations of financial irregularities and stock manipulation by a Hindenburg report, has roped in accountancy firm Grant Thornton to conduct independent audits of some of its companies to absolve itself of the allegations, Reuters said.

Also read: Adani Group seeks to calm market, says business plans fully-funded

Even though the Gautam Adani-helmed conglomerate has denied the findings of the January 24 report, mistrust among investors has triggered a slide in its business, with shares in the group’s seven listed companies losing around $120 billion in market value in just three weeks.

One of the sources that Reuters spoke to said that the audit firm would evaluate whether related-party transactions at the Adani Group followed corporate governance standards.

The hiring of the accountancy firm is the first such step by the Adani Group to manage the crisis.

Last week, the company, after facing the allegations from the Hindenburg report had hinted that it may consider independent evaluation of issues related to legal compliance, related party transactions, and internal controls.

The group on Monday had assured investors that its cashflow was strong, business plans were backed by funds and that shareholders should rest assured of superior returns on its portfolio.

Also read: Under Hindenburg cloud, questions rise on Adani’s 6 airport deals

The announcement came even as the group was reported of holding negotiations with Abu Dhabi’s International Holding Corp (IHC) for capital infusion into Adani Enterprises or other companies in the Group.