NFRA probes Adani Group firm auditors

The National Financial Reporting Authority (NFRA), which oversees audits, has contacted a number of organisations that audit the Adani Group's listed companies in an effort to get documents and correspondence about the audit firms' operations within this diverse conglomerate.

According to people familiar with the issue, the regulator's action, which is preliminary in nature, affects several audit firms for each of the seven listed companies in the Adani Group and covers various financial years through March 2022. This is thought to be NFRA's way of getting ready to do an audit quality review (AQR) of all the audit firms that are being investigated.

Over the years, the Adani Group has hired more than 35 audit firms to examine the statutory audit work of its many public and unlisted companies in India and overseas. These audit firms consist of a combination of reputable domestic audit firms and the Big Six audit firms.

Adani Group, which was the subject of a Hindenburg Research short-seller probe in January, has consistently said that it has appointed its auditors in accordance with the "highest standards" and "best governance practises" over the years.