"ADANI" the only talk of the market

Indian Market and its investors are some of the major talks in the news Since we all invest hard-earned which is not so hard to earn in various investment plans and schemes. Investing in any scheme carries some portion of the risk, and it is up to an individual to think before investing in any?scheme or plan. But we as individuals invest on the basis of market trends and not on the basis of our research on a particular stock. Ease in life comes at a cost that one has to bear.

So today we will go through some information on Adani and understand what has really happened in the market.

1) Adani Corp (established since1995) has got loans totaling Rs.622 Crores from four Companies and they are:

Private Companies- Adani Logistics & Adani Estate

Public Companies- Adani Enterprises & Adani Port.

Adani Corp has provided loans to Adani Ports which is a public Company, it has an audit committee whose Independent Director Chairman is Mr. Mukesh Shah who has an accounting firm in the name of Mukesh M Shah & Associates which is a statutory auditor of Adani Corp.

If not done this way, this arrangement would have attracted Related Party Disclosure. Ignoring the substance over form as one will ignore the information before investing in a stock.

The issue to be addressed:

The Size of the company compared to the loan taken makes it evident that repayment of the loan is to be questioned.

The Revenue and Profit of Adani Corp are Rs 64 Crore and Rs.68.6 Lakhs for the financial year ending 2020, the same has been decreased to Rs.33 crores and Rs.-76 Lakhs for the year ending 2021 and oRs.18.5 crores and Rs.14.29 lakhs respectively for the year ending 2022.

The auditor did not question the repayment of the loan after seeing the profit along with the revenue, It is skeptical that there will be questionable going concern analysis. The information which is available to the public, as this is just a start of an issue we will address further along with more information in part two.

Link to the video through which information has been taken - https://youtu.be/n8xsl53M9DU and thanks to Neeraj Arora Sir for making such an informative video.