NEW DELHI: Ahmedabad-based chartered accountancy firm Shah Dhandharia & Co., which was named in Hindenburg Research’s stinging report on Adani Group, has resigned as statutory auditor of Adani Total Gas, citing ‘professional pre-occupation’ as the reason.
The resignation comes less than a year after Shah Dhandharia was appointed by the company on July 26, 2022, for a term of five years.
“We have carefully evaluated and due to increased professional pre-occupation in other assignment, we regrettably propose our resignation. Our resignation does not result from an inability to obtain sufficient appropriate audit evidence. There are no other circumstances connected with our resignation which we consider should be brought to the notice of the Board,” said Shah Dhandharia to the Board of Adani Total Gas.
Adani Total Gas appointed Walker Chandiok & Co as the new statutory auditor, effective May 2, for a period of five years in its first term. Hindenburg in a report published this January had accosted Adani Group of accounting frauds and stock manipulation among other things.
It had said that the use of auditor Shah Dhandharia & Co is a malpractice as the accounting firm just had four partners and 11 employees. Some employees were as young as 23-24 years of age, while the partner who signed off on the company’s financials was just 28.
Shah Dhandharia is also the auditor of the flagship company of the group, Adani Enterprises. It is not known whether they would continue to hold their position.