WAR OF WORDS

HINDENBURG ALLEGATION

Adani companies have taken on substantial debt, putting the group on a precarious financial footing

Adani’s elder brother Vinod Adani, through several close associates, manages a vast labyrinth of offshore shell entities; 38 of them were identified

Adani Enterprises has had a high turnover of Chief Financial Officers—five over eight years— which indicates potential accounting issues

Shah Dhandharia, the independent auditor for Adani Enterprises and Adani Total Gas, seemed inexperienced and incapable of complex audit work

Adani’s younger brother, Rajesh, was accused by the DRI in a diamond scam and was arrested. He is an MD. Brother-in-law Samir Vora, too, was accused by the DRI

ADANI REBUTTAL

The group has consistently reduced debt, with its portfolio net debt to Ebitda ratio coming down from 7.6x to 3.2x

These are “reckless statements” made without presenting any evidence and without any understanding of the Indian laws around related party transactions

Several of the past CFOs that Hindenburg claimed have left are in fact still part of the organisation in various other capacities, including in larger or key roles

Shah Dhandharia is a peer-reviewd CA firm. There are more than 35 statutory audit firms that audit the various entities within Adani Enterprises, including a mix of the Big 6 statutory auditors

An appellate tribunal had set aside all the allegations of the DRI and confirmed that all the transactions of the diamond business were valid and genuine, and the Supreme Court had upheld the order of the tribunal