As the Hindenburg crisis continues, the Gautam Adani-led conglomerate Adani Group has reportedly hired accountancy firm Grant Thornton for conducting some independent audits. As per reports, the move has been taken by Adani to monitor some of its companies in an effort to “discredit claims” made by the scathing Hindenburg Research report.
According to a Reuters report, the scathing Hindenburg Research report has “battered its (Adani Group’s) stocks and bonds.” Hence, as per the report, the appointment of Grant Thornton marks the “first major effort by the Adani Group to defend itself in the wake of a Jan.24 report by Hindenburg that accused it of improper use of offshore tax havens and stock manipulation.”
Before this, media reports suggested that the Adani Group was also considering some independent evaluation of all issues from the legal point of view, especially of the ones related to party transactions and internal controls.
The report reads, “Grant Thornton has been hired to conduct independent audits of some Adani Group companies, said the sources, declining to be named as the appointment is confidential. One of the sources added that Grant Thornton would look at whether related-party transactions at the Adani Group complied with corporate governance standards.”
Recently, at the start of the week, the Adani Group also reassured its investors that the conglomerate and its entities had strong cashflows and was “confident” about its portfolio being capable enough to deliver returns to its investors. While Hindenburg report alleged fraud and stock manipulation by the Gautam Adani-led group, the latter refuted all such claims and called them baseless.