EY's S.R. Batliboi, Longtime Adani auditor, Under NFRA scrutiny

EY's Indian affiliate, S.R. Batliboi, a longstanding auditor for the Adani Group, is currently under investigation by India’s accounting regulator, the National Financial Reporting Authority (NFRA)

The NFRA has recently initiated an inquiry, seeking files and communications pertaining to audits of companies controlled by Gautam Adani dating back to 2014. The extent and potential consequences of NFRA's investigation remain uncertain. NFRA and EY representatives have refrained from comment. S.R. Batliboi, serving as the statutory auditor for five listed Adani firms that contribute roughly half of the group’s revenues, faces increased scrutiny.

This development highlights ongoing concerns regarding accounting and disclosures within the extensive conglomerate, which faced intense scrutiny from short sellers earlier this year. Additionally, Adani Group is subject to a court-mandated investigation by India's markets regulator. Adani Group responded, emphasizing their adherence to regulations and accounting standards in all jurisdictions of operation and expressing confidence in their practices, governance, and disclosures.