EKI Energy’s dream run halts

Why read this story?

Editor's note: In early December, EKI Energy Services hired a new auditor. The previous auditor had resigned, citing other engagements. Walker Chandiok & Co., the Indian arm of accounting firm Grant Thornton, was brought in to ensure better scrutiny of the Indore-based company’s accounts and shore up corporate governance. When the new auditor signed off on EKI’s third-quarter results for the financial year 2022-23, it flagged certain concerns. The auditor said the company did not recognize its income as per accounting norms and that it overstated its revenue for the third quarter. It also noted that EKI Energy overstated its revenue for the first nine months of 2022-23 by Rs 190 crore and profit before tax by Rs 110 crore. To top it all, the third-quarter results were far from satisfactory. There was a drop in EKI Energy’s revenue and profits. The company, which was incorporated in 2011 and advises clients on generating, certifying and selling carbon credits, was hit hard owing to plummeting carbon credit prices in the wake of the Russia-Ukraine war and the resultant surge in oil prices over …