Home / Companies / News /  Adani Group mulls independent review after Hindenburg's criticism

Adani Group is considering independent assessment into the issues of related party transactions, and others made by US shirt seller Hindenburg, according to the filings.

Adani Group-led by Gautam Adani has been facing the heat after US short seller Hindenburg Research accused the Adani Group of 'brazen stock manipulation and accounting fraud scheme over the course of decades.'

"We draw attention to Note 20 to the unaudited consolidated financial results, relating to allegations made by a short seller report on matters involving some of the Adani Group entities, including the Group. The management of the Group is evaluating an independent assessment to look into the issues and compliance with applicable laws and regulations, transaction specific issues, etc," showed Adani Green's regulatory filing.

In the last few weeks, Adani Group stocks have erased more than $118 billion in market value triggered by the report from Hindenburg Research.

According to Adani Green Energy, Adani Ports and Special Economic Zone, the regulatory filings noted 'certain issues against some' Adani group entities, they may be looked into.

Indian banks' exposures to the Adani Group are not large enough to affect their credit quality materially and the overall quality of the local lenders’ corporate loans will be stable, ratings agency Moody's Investors Service said on Tuesday.

However, it said that risks for banks can increase if Adani becomes more reliant on bank loans.

"While we estimate that the exposures are larger for public sector banks than for private sector banks, they are smaller than 1 per cent of total loans for most banks," Moody's said, adding, "Risks for banks can increase if Adani becomes more reliant on bank loans."

“We estimate that the bulk of the exposures are collateralized, either with operational assets or with projects under execution, rather than to the corporate level," it said.

Adani Ports and Special Economic Zone (ASPEZ) posted a consolidated PAT of 1,315.54 crore which is attributable to its owners, declining by 16.05% YoY due to a higher forex mark-to-market loss. Its net profit was at 1,567.01 crore in the third quarter of FY22.

dani Green Energy's consolidated net profit more than doubled to 103 crore in the December quarter, mainly on the back of higher revenues.

The consolidated net profit of the company was at 49 crore in the year-ago period, according to a BSE filing on Tuesday.

Total income in the third quarter of the current fiscal rose to 2,258 crore from 1,471 crore in the same period a year ago.

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