Adani Group appoints Grant Thornton to spin off US short seller Hindenburg Research
The Adani Group has appointed accountancy firm Grant Thornton for an independent audit of some of its companies to fend off allegations made by US short seller Hindenburg Research and reassure investors and regulators. Sources said the audit would primarily focus on RBI. Bank (RBI) to show to the regulators that the group is not hiding anything and is complying with the relevant laws. The audit will specifically examine whether there was any misappropriation of funds or diversion of loans. He said that the audit would go a long way in showing that the books of accounts were properly maintained and the projects were executed properly.
Amid continued volatility in its shares, the Adani Group on Monday sought to reassure the market, saying that its expansion plans remain intact. The business plans are fully funded and the group is confident of delivering returns to shareholders. A January 24 report by US-based short seller Hindenburg Research alleges that Adani “swindled corporate history” by using offshore tax havens and stock manipulation. The biggest hoax in India” has been achieved.
The group denied all the allegations, calling them ‘malicious’, ‘baseless’ and a ‘planned attack on India’. It called Hindenburg the “Madoff of Manhattan”, and linked him to the late financier and fraudster Bernie Madoff. ‘Each of our companies has very good balance sheets,’ said a spokesman for the group. “We have industry leading growth capabilities, strong corporate governance, secure assets, strong cash flows. Our business plan is fully funded. The group also dismissed reports of reduction in growth targets and capital expenditure. Towards the group projects may be delayed, but none have been postponed.Plans for solar, green hydrogen and airport expansion are on track. PLC/GT