APSEZ Appoints MSKA & Associates as Auditor Following Deloitte Resignation

Ahmedabad :  Adani Ports and Special Economic Zone (APSEZ) has undergone a significant change in its auditing landscape, with the Audit Committee/Board announcing the appointment of MSKA & Associates as the new auditor. The appointment comes in the wake of Deloitte’s resignation, highlighting the complex dynamics between auditors and Adani’s diverse portfolio of listed companies.

Since May 2017, Deloitte has held the position of APSEZ’s statutory auditor, a role that the firm continued through a reappointment in July 2022, extending their tenure by another five years. However, the recent developments indicate a shift in the audit framework due to the unique nature of Adani’s corporate structure.

In a meeting involving Deloitte, APSEZ management, and the Audit Committee, Deloitte raised concerns about the lack of a comprehensive audit role beyond APSEZ itself. The firm expressed reservations about serving as the auditor for other listed Adani portfolio companies, citing a need for a broader audit mandate.

Mr. Gopal Krishna Pillai, Chairman of the Audit Committee, APSEZ, conveyed that the committee found Deloitte’s reasons for resignation as the statutory auditor insufficient to warrant such a decision. The Audit Committee further clarified that APSEZ and its Board do not have the authority to recommend group-wide auditor appointments, as each listed Adani portfolio company operates independently with separate boards, executive teams, and minority shareholders.

In light of the differing perspectives, Deloitte opted to withdraw from its role as APSEZ’s statutory auditor. The decision was mutual, aiming to amicably end the contractual relationship between Deloitte and APSEZ. Deloitte confirmed that they have received all relevant information from APSEZ’s management, a confirmation stated in their resignation letter dated August 12, 2023.

The transition to a new auditor, MSKA & Associates, holds the promise of a fresh perspective and approach to auditing APSEZ’s operations. As an independent member firm of BDO International, a globally recognized audit firm, MSKA & Associates brings substantial experience and expertise to the table.