Three weeks after Hindenburg research came out with its report alleging Adani Group of accounting frauds, stock manipulations, and money laundering, the conglomerate has appointed US-based?accountancy firm Grant Thornton for independent audits of some of its companies.
This move is aimed to discredit the claims by short-seller Hindenburg Research, which have rattled the Adani group¡¯s stocks as well as the net worth of its Chairman Gautam Adani.
The appointment of this US-based accounting firm marks the first major effort by 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, a?Reuters report mentioned quoting two people familiar with the matter.
The accounting firm Grant Thornton is amongst the largest and leading?fully integrated assurance, tax and advisory firms in the US as well as the world.
Ever since Hindenburg came out with its allegations, Adani Group has strongly denied the allegations but investors remain concerned. Shares in the group's seven listed subsidiaries have cumulatively lost about $120 billion in market value in the last three weeks.
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Adani Group had said last week it was considering an independent evaluation of issues relating to legal compliance, related party transactions and internal controls following the Hindenburg report.?
Grant Thornton has been hired to conduct independent audits of some Adani Group companies, said the sources.
As per Reuters, one of the sources added that Grant Thornton would look at whether related-party transactions at the Adani Group complied with corporate governance standards.
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