Adani Enterprises got 2 Sebi show cause notices over Hindenburg report in Q4FY24

However, the company in a statement has clarified that there is no material consequential effect of above SCNs to FY24's financial statements and there is no material non-compliance of applicable laws and regulations.

The company said following the report published on Adani Group companies last year, Adani Enterprises undertook a review of transactions referred to in short-seller's report (SSR) in April 2023 through an independent assessment by a law firm.

The law firm's assessment revealed that none of the alleged related parties mentioned in the SSR were related parties to the parent company or its subsidiaries, the exchange filing claimed. The law firm also found Adani Enterprises in compliance with the requirements of applicable laws and regulations.

During the quarter ended March 31, 2023, Hindenburg published a report raising several governance related concerns surrounding the Adani Group companies and alleged improper use of tax havens and stock manipulation by the ports-to-energy conglomerate. The group has denied all the allegations.

In this regard certain writ petitions were filed with the Supreme Court, seeking independent investigation of the allegations made in the Hindenburg report. During the proceedings, SC observed that the Securities and Exchange Board of India (Sebi) was investigating the matter. The apex court also constituted an to investigate as well as suggest measures to strengthen existing laws and regulations and also directed the Sebi to consider certain additional aspects in its scope.

The Expert Committee submitted its report dated May 6, 2023, concluding that there was no regulatory failure with respect to applicable laws and regulations. The Sebi also concluded its investigations in 22 of the 24 matters as per the status report of August 25, 2023, filed with the SC.

The SC on January 3, 2024, disposed of all matters in various petitions, including those relating to separate independent investigations regarding the allegations in the short seller's report (SSR). The top court also directed Sebi to complete the pending two investigations in three months.

Adani Enterprises on Thursday reported a consolidated net profit of Rs 451 crore for the quarter ended March 2024, down 38% on a year-on-year basis versus Rs 722.48 crore posted in the corresponding quarter of the last financial year. The consolidated revenue from operations for the quarter stood at Rs 29,180 crore, marginally up 0.81% from Rs 28,944 crore reported in the year-ago period.

Also Read:


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)