Hindenburg Report On Adani PDF Free Download

Hindenburg Report On Adani PDF Download Info

The New Allegations That Hindenburg Has Come Up With Against The Family Of Sebi Head Madhabi Puri Buch In The Adani Scandal Would Put More Pressure On The Already Pressurized Sensex And Nifty Last Week Due To Mostly External Forces.

Hindenburg Report On Adani PDF Free Download

There Could Be A Knee-jerk Response When The Stock Market Starts For Trade On Monday Morning Since Some Large Investors Might Decide To Play It Safe By Holding Modest Holdings And Then Let The Situation Develop.

The Latest Charges By Hindenburg Include Insidious, Wily, And Manipulative Decisions From Publicly Available Data To Reach Pre-determined Conclusions For Personal Profiteering With Reckless Disregard For The Truth And The Law.

We Categorically Deny These Accusations Against The Adani Group, Which Are Merely A Rehashing Of Totally Discredited Claims Already Rejected By The Hon’ble Supreme Court In January 2024 After An Exhaustive Examination And Proof That They Are Bereft Of Merit.

We Further Reiterate That Our Overseas Holding Structure Is Absolutely Transparent, Regularly Disclosing All Relevant Information In A Number Of Public Documents. Further, Anil Ahuja Was A Nominee Director Of Adani Power’s 3i Investment Fund From 2007 To 2008 And A Director Of Adani Enterprises Till 2017.

None Of The Individuals / Entities Named In This Malafide, Calculated Attempt To Discredit Our Stand Have Any Business Relationship With The Adani Group.

We Are Fully Committed To Transparency And Compliance With All Legal And Regulatory Requirements. The Allegations By Hindenburg Are Thus Nothing But Red Herrings Thrown By A Desperate Entity Completely Disdainful Of Indian Laws At A Discredited Short Seller Already Under Investigation For Several Violations Of Indian Securities Laws.

Today We Are Releasing The Results Of A Two-year Investigation That Show That The Indian Conglomerate Adani Group Is Worth Inr 17.8 Trillion Or About $218 Billion In The United States And Has Conducted An Outright Scheme Of Accounting Fraud And Stock Manipulation For Decades.

Founder-chairman Of The Adani Group, Gautam Adani, Has Aggregated A Net Worth In Excess Of $120 Billion, With More Than $100 Billion Added Over The Past Three Years, Much Of It On The Back Of Increases In The Stock Prices Of The Group’s Seven Biggest-listed Firms That Have Risen An Average Of 819% During That Period.

Our Research Involved Speaking With Dozens Of People, Including Some Ex-top Management Of Adani Group, Pouring Over Hundreds Of Documents, And Travel To Diligence Sites In Close To Six Countries.

Even If This Were To Be Rejected And The Case Of Over-exaggerating The Case And The Financials Are To Be Taken At Face Value For Adani Group, The Seven Large Listed Companies Of The Group Are On A Plain Basis Of Fundamental Grossly Overvalued By The Stock Market At The Moment, To The Tune Of 85% Is It From The Present Prices On The Downside.

Important Adani-listed Companies Have Also Taken Massive Loans, And Some Even Offer Shares In Their Overvalued Stock As Collateral For The Loans, Which Endangers The Group’s Finances. A Short-term Liquidity Strain Exists Because Five Of Seven Major Public Corporations Boast “Current Ratios” Below One.

Eight Of 22 Key Executives In The Company And The Senior Management Are Adani Family Members; This Process Centralizes Power Over The Group’s Money And Important Decisions In Very Few Hands. A Former Chief Executive Said The Adani Group Is “A Family Enterprise.”

The Adani Group Has Four Major Government Fraud Investigations: It Has Previously Been Charged With Money Laundering, Theft Of Public Funds, And Corruption In The Amount Of About $17 Billion. According To Allegations, Adani Family Members Acted In Unison To Create Dozens Of Overseas Shell Companies In Overseas Tax Havens Like Mauritius, The United Arab Emirates, And The Caribbean Islands. The Essence Of Their Scheme Was To Create Fake Import And Export Documents To Provide A Veneer Of Support For The False Or Unauthorized Turnover And Misappropriate Funds Of The Listed Companies.

In A Diamond Import/export Scam Between 2004–2005, The Dri Alleged That Rajesh Adani, The Younger Brother Of Gautam Adani, Was The Mastermind. At Least Two Separate Allegations Of Tax Fraud And Forgery Led To The Arrest Of Rajesh. He Was Later Promoted To Managing Director Of The Adani Group.

Dri Accused Samir Vora, Gautam Adani’s Brother-in-law, Of Being The Mastermind Behind The Same Diamond Trade Scheme And Of Having Lied Several Times To Regulators. That Key Adani Australia Subsidiary Would Then Have Him As An Executive Director.

“An Enigmatic Figure” Is How The Media Have Described Vinod Adani, Elder Brother Of Gautam Adani. The Government, But Primarily The Media, Has Time And Again Placed Him At The Core Of Its Prosecutions Against Adani On Suspicion Of Running A Web Of Offshore Companies Meant To Facilitate Fraud.

Our Results, Based On Downloading And Indexing The Whole Registry Of Mauritius Companies, Identified Vinod Adani As Running A Vast Network Of Offshore Shell Companies With The Help Of Some Close Colleagues.

We Have 38 Shell Companies In Mauritius Connected To Vinod Adani Or His Close Associates. We Have Companies Connected To Vinod Adani In Nominees Of Secret Holding Companies In Singapore, United Arab Emirates, Cyprus, And Many Caribbean Islands.

Several Companies Connected To Vinod Adani Show No Apparent Activity Is Taking Place, With No Visible Employees, Physical Office Addresses Or Contact Numbers And Virtually No Web Sites. Yet They Have Transferred Billions Of Dollars Between Them Into Both Publicly Listed And Private Adani Companies In India, Often Omitting To Disclose The Transactions Are Being Related Party Transactions.

We’ve Also Found Some Rather Basic Feints That Seem Like An Attempt To Obfuscate The Nature Of Some Of These Shell Companies. Thirteen Sites, For Instance, Had Been Put Up For Companies That Were Connected To Vinod Adani; Many Of These Sites Had Been Mistakenly Created On The Same Days, With Stock Photos Acting As The Only Text Together With All Those Other Sites, And No Actual Employee Names, And A List Of Services That Otherwise Didn’t Seem To Hang Together, Such “Commercial Presence” And “Consumption Overseas.”

The Vinod-adani Shells Seem To Be Serving Multiple Functions, That Is, (1) Parking Of Stock And Manipulation And (2) Subsequent Laundering Of Money Back From The Private Firms Of Adani Into The Balance Sheets Of Listed Companies To Maintain The Semblance Of Sound Financial Standing.

All Promoter Interests—are Called Insider Ownership In The Us—are Required To Be Disclosed Through Regulations Both In India And In The United States For Publicly Traded Corporations. While There Are Regulations Looking To Prevent Insider Trading And Manipulation, In Order To Try And Ensure That Listed Businesses Have At Least 25% Of Their Float Owned By Non-promoters, Four Of Adani’s Listed Companies Are On The Verge Of Crossing The Delisting Barrier Because Of Big Promoter Ownership.

Our Examination Revealed That Most Of The Largest “Public” (I.e., Non-promoter) Holders Of Adani Shares Are Actually Offshore Shells And Funds Near The Adani Group. If The Laid Down Rules And Regulations Of The Indian Securities Regulator, Sebi, Were To Be Adhered To Strictly, The Firms Would Basically Delist. Many Of These So-called “Public” Funds Have Obvious Irregularities, Including The Following: (1) They Are Mauritius- Or Offshore-based Entities, Which Are Often Shells; (2) Their Beneficial Ownership Is Readily Concealed Through The Use Of Nominee Directors; And (3) Their Portfolios Are So Thinly Diversified That They Consist Literally Almost Entirely Of Nothing Other Than Shares In Adani Listed Companies.

Our Applications Under The Rti To Sebi, After More Than A Year And A Half Of The Concerns First Being Raised, By Both Journalists And Parliamentarians, Show That The Offshore Funds Are Still Under Probe.

One Offshore Firm With About $3 Billion Worth Of Adani Shares Is The Former Trader For Elara. He Says That Firm Is 99% Concentrated In Adani Stock, As Is Another Fund Reading The Disclosure Fine Print Is The Point Of Funds’ Structure, He Says, Because It Conceal S Their Final Beneficial Ownership.

According To Leaked Emails, The Ceo Of Elara’s Close Business Associate Also Happened To Be A Fugitive Chartered Accountant Closely Working With The Notorious Stock Market Manipulator Ketan Parekh In Many Stock Manipulation Deals. The Emails Show That When Doshi Had Hidden, After Evading The Police, And Also Gained Fame As A Fugitive, The Ceo Of Elara Collaborated With Him On Stock Dealings.

Lei Records And Exchange Filings In India Show A Separate Company, Monterosa, To Be The Entity That Owns Five Ostensibly Different Funds That Together Own About Inr 360 Billion, Or About Us $4.5 Billion, Worth Of Shares In Listed Adani Companies.

The Chairman And Ceo Of Monterosa Was A Director In Three Firms That Allegedly Belonged To A Wanted Diamond Trader, Who Is Said To Have Siphoned Off $1 Billion In American Dollars Before Leaving India. The Daughter Of Vinod Adani Married The Son Of The Diamond Trader Who Absconded.

Corporate Filings Indicate That Some Affiliated-entity Company Of Adani Nearly Made A Substantial Investment Into One Of The Monterosa Funds Flowing, Via Investments In Adani Enterprises And Adani Power, In What Was A Vast Exposure To The Off-shore Dubious Funds, Thus Divesting The Adani Group.

For Example, New Leaina Investments, A Company Registered In Cyprus, At The End Of June–september 2021, Had Investments In Adani Green Energy Shares Worth Over $420 Million, Which Was Almost 95% Of Its Portfolio. According To Parliamentary Records, It Was And May Still Be A Shareholder In Other Listed Adani Companies.

Amicorp Is The Incorporation Services Provider For New Leaina. As Mentioned, The Said Incorporation Service Provider Has Played An Integral Part In Helping Adani Structure His Network Of Offshore Vehicles. Amicorp Incorporated A Minimum Of Seven Adani Promoter Companies, At Least 17 Offshore Shell Companies And Entities Related To Vinod Adani, And A Minimum Of Three Offshore Owners Of Adani Shares Located In Mauritius.

Amicorp Was One Of The Big Players In This Global Fraud, Which Depleted Us $4.5 Billion From The Malaysian Taxpayers. According To The Book That Detailed The Fraud—billion Dollar Whale—amicorp Had Set Up For The Main Offenders, What It Called “Investment Vehicles,” But Says For Him “Were Just A Mechanism To Launder A Client’s Money Through What Looked Like A Mutual Fund.”

A Special Daily Data Item, Referred To As “Delivery Volume,” Reveals The Institutional Investment Flows. Our Analysis Shows That It Is More Likely That 30–47% Of The Yearly “Delivery Volume” Of Many Of The Adani Listed Companies Have Their Origin In Such Offshore Suspected Stock Parking Entities. The Stark Irregularity Reveals That The Adani Stocks Have Probably Been The Target Of “Wash Trading” Or Other Manipulative Trading Through The Suspect Offshore Entities.

Chances Are That The Adani Listed Companies Too Might Have Indulged In Stock Manipulation. In The Last Couple Of Years, Sebi Has Investigated And Held More Than 70 Entities And Individuals, Which Also Include Adani Promoters, Culpable Of Indulging In Stock Rigging In The Scrip Of Adani Enterprises.

“The Accusations Filed Against Adani Promoters That They Aided And Abetted Ketan Parekh Companies In Manipulating The Adani Scrip Stand Substantiated,” According To A 2007 Sebi Verdict. Amongst The Most Well-known Stock Market Manipulators In India Is Ketan Parekh. Prohibitions First Occurred To The Adani Group Companies Because Of This Involvement But Were Eventually Lowered To Fines—a Sign Of Government Indulgence Toward The Group That Has Developed Into A Trend Spanning Decades.

The 2007 Inquiry Found That 14 Adani Private Firms Distributed Shares To Companies Controlled By Parekh, Who Then Manipulated The Market. In Its Response To Sebi, Adani Group Said It Had Synchronized The Financing For Beginning Its Operations At The Mundra Port With Ketan Parekh, Hence Apparently Making A Case That Distorting Stock Prices To Offload Shares Is An Acceptable Method Of Project Financing.

We Interviewed A Man, Barred From Trading On Indian Markets For Rigging Stock Using Money Routed Via Mauritius, As Part Of Our Inquiries. Nothing Has Changed, He Reports; “All The Previous Clientele Still Has Faith In Ketan And Is Still Dealing With Ketan”. And, He Added, He Personally Knew Him.

He Brings Out Many Instances Whereby Offshore Shells Were Used For The Transfer Of Funds From The Onshore Private Adani Firms To Listed Public Adani Companies And Even For Stock Parking On A Large Scale Using Offshore Cash.

From There, The Money Seems To Be Sent Back Out To Other Parts Of The Adani Empire Where Capital Is Needed, Or To Engineer Adani’s Accounts Itself, Either To Prop Up Its Reported Profit Or Cash Flows. We Also Found Widespread Undisclosed Related Party Transactions Of Both Listed And Unlisted Companies, Which Appear To Be A Systemic And Flagrant Violation Of Indian Disclosure Rules.

In One Case, A Private Adani Company Borrowed Inr 11.71 Billion (About $253 Million) From A Vinod Adani-controlled Mauritius Corporation Without Any Statement At All That It Was A Related Party Loan. The Private Company Turned Around And Loaned Monies To Publicly Traded Companies, One Of Them To Adani Enterprises For Inr 9.84 Billion Or $138 Million At More Current, Far Lower Currency Rates.

The Ceo Of Another Adani-controlled Company In The Uae, Emerging Market Investment Dmcc, Lives In An Apartment In The Country. There Is No Information On Its Customers Or Agreements, No List Of Staff On Linkedin, And No Significant Presence On The Web. This Company Advanced $1 Billion To A Subsidiary Of Adani Power.

It Would Appear That One More Use Of This Network Of Offshore Shells Is The Manipulation Of Profits. One Is The Tale Of A Succession Of Deals In Which Assets Passed, Without Disclosure Of The Related-party Nature Of The Transactions, From A Subsidiary Of Adani Enterprises, A Publicly Listed Corporation, To A Private Singaporean Company Controlled By Vinod Adani. Once Identified In The Private Company’s Books, The Assets Were Severely Impaired, Which Probably Helped The Public Company Avoid A Large Write-down And Negative Influence On Net Income.

Financial Controls Seem To Be Almost Nonexistent, And This May Well Have Something To Do With The In-your-face Nature Of The Adani Group’s Accounting Problems And Opaque Business Model. The Role Of The Chief Financial Officer In Adani-listed Companies Has Been A Revolving Door. In Adani Enterprises, The Post Has Recorded Five Chief Financial Officers In The Eight Years That Have Passed, A Major Red Light That Can Give Hints About The Accounting Flaw.

Shah Dhandharia Do Not Look For Other Clients, As They Are A Small Firm That Serves As An Independent Auditor To Adani Enterprises And Adani Total Gas, So The Website Is Considered Current. The Company Being Shah Dhandharia, A Company Of Only 4 Partners And Only 11 Staff Members, Pays Office Rent On A Monthly Basis Of Inr 32,000, Which Practically Amounts To The Equivalent Of $435 In The United States In 2021. With A Market Capitalization Of Only Around Inr 640 M (About $7.8 M In The Us), The Only Other Listed Company That We Could Find That It Audits Is.

Shah Dhandharia Barely Has An Appetite For Complex Audit Assignments. For Instance, The Current Vastness Of The Complexity Of The Firm Can Be Seen From Its Client Adani Enterprises, Which Has Around 156 Subsidiaries With Several Joint Ventures And Associates. Most Importantly, Information Available From Bse Filings Indicates That Just In The Last Financial Year For The Year Ended 2022, The Seven Large Adani Group Of Listed Companies Had 578 Subsidiaries And Undertook 6,025 Unique Related-party Transactions.

The Audit Partners At Shah Dhandharia Were 24 And 23 Years Old When They Signed Off The Annual Audits Of Adani Enterprises And Adani Total Gas, Respectively. The Thumping New Graduates Were In No Position To Go Over The Accounts And Certify The Same Of Some Of The Largest Companies Of The Country Led In Effect By Some Of The Most Powerful.

Addressing How He Views Critics In A Rare Interview, Gautam Adani Commented, “I Certainly Have Great Regard For Criticism. Anything Critical Coming To Me Gives Me The Opportunity To Improve As A Person.” Charges Like These Notwithstanding, Adani Has, Over The Years, Used His Immense Power To Goad Not Just The Authorities But The State To Bring Criminal Defamation Charges Against His Critics And To Leave No Stone Unturned To Either Put Them In Jail Or Silence Them.

Indeed, A Big Reason That We Feel Adani Group Has Been Able To Pull This Mammoth But Brazen Deception In Broad Daylight Without Batting An Eyelid Is The Fear Of Reprisals That Has Largely Kept Stakeholders—investors, Media, People, And Politicians—at Bay.

Towards The End Of The Report, We Have Added 88 Questions. These Should Be Easy Questions To Answer If Indeed Gautam Adani Believes In Openness, As He Claims He Does. And We Humbly Await Adani’s Response.