Six Adani Group firms received show-cause notices from the Securities and Exchange Board of India (Sebi), it was reported. The notices were related to alleged violation of related party transactions, non-compliance of listing rules and validity of auditor certificates in the past, the companies said in their regulatory filings to the stock exchanges as per Economic Times.
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Which Adani Group firms have received show-cause notices?
Adani Enterprises said it has received two show-cause notices in the quarter that ended on March 31 as per the report. Adani Ports & Special Economic Zone, Adani Power, Adani Energy Solutions, Adani Wilmar and Adani Total Gas also said that they received show-cause notices from Sebi.
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Could the show-causes notices impact companies’ financial statements?
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Auditors of firms, except Adani Wilmar and Adani Total Gas, issued a qualified opinion as per the report to reflect on whether the outcome of Sebi’s investigation might affect financial statements in the future.
Auditors of Adani Enterprises said in their qualified opinion as per Economic Times, “On account of pending adjudications/ outcome of the investigations by the Securities and Exchange Board of India and brd on our review of related documents, we are unable to comment on the possible adjustments and /or disclosures, if any, that may be required to be made in the accompanying Statement in respect of this matter. We will continue to evaluate the impact of this matter on our opinion brd on any changes in circumstances or additional information that may become available.”
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Meanwhile Adani Ports and SEZ said in its disclosures, “The allegations are that the company has not obtained the requisite approvals, and have not made the required disclosure in the financial statements/ annual report. Not recalling security deposits against terminated contracts leading to not using the funds for company’s core business purposes and thus not complying with the company’s code of conduct.”
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