LOVELY PROFESSIONAL UNIVERSITY

MITTAL SCHOOL OF BUSINESS

FINANCIAL REPORTING STATEMENTS & ANALYSIS-1
ASSIGNMENT – 1
ADANI GREEN ENERGY Ltd.

Date of Allotment: 09/10/2021

Date of Submission: 20/10/2021

SUBMITTED BY: SUBMITTED TO:

VISHVJEET SINGH PANWAR GAGANDEEP SINGH
SECTION: Q2141 COURSE CODE: ACC506
ROLL No: RQ2141A83
 ADANI GREEN ENERGY Ltd.

Company Overview
Adani Green Energy Limited (AGEL) is an Indian renewable energy company
headquartered in Ahmedabad, Gujarat. It is owned by Indian conglomerate Adani
Group. The company operates Kamuthi Solar Power Project, one of the largest
solar photovoltaic plants in the world. Adani Green Energy Limited (AGEL) is one
of the largest renewable companies in India, with a current project portfolio of
13,990 MW. AGEL is a part of the Adani Group’s promise to provide a better,
cleaner and greener future for India. Driven by the Group’s philosophy of ‘Growth
with Gudness’, the company develops, builds, owns, operates and maintains
utility-scale grid-connected solar and wind farm projects. The electricity
generated is supplied to central and state government entities and government-
backed corporations.

History of the Company

The company was incorporated on January 23, 2015 as Adani Green Energy
Limited under the Companies Act 2013. During the initial days of existence, AGEL
and Inox Wind together established a 20 MW capacity wind power project in
Lahori, Madhya Pradesh. Also, AGEL bought Inox wind’s 50 MW wind power
project at Dayapar village in Kutch. The project was conceived by the latter when
it won a Solar Energy Corporation of India’s capacity bids for wind power projects
connected to the National Grid. In 2015-16 Adani Renewable Energy park Limited,
a subsidiary of AGEL, signed a joint venture agreement with the Government of
Rajasthan. In 2017, the company took the complete control of overall solar energy
portfolio of Adani Enterprises and got itself listed at National Stock Exchange of
India and Bombay Stock Exchange.
Operations of the company
Currently, the company managers 5,290 MW of wind energy and solar power
plants including 46 operational projects in 11 states of India namely Uttar
Pradesh, Rajasthan, Punjab, Maharashtra, Gujarat, Madhya Pradesh,
Chhattisgarh, Andhra Pradesh, Karnataka, Tamil Nadu and Telangana. AGEL has a
current project portfolio of ~5.29 GW and an operational capacity of ~2.32 GW.
As of March 31, 2019, AGEL has one joint venture and 39 subsidiaries. In May
2020 AGEL won the world’s largest solar bid worth $6 billion by the Solar Energy
Corporation of India (SECI). The bid entails AGEL building an 8,000 MW
photovoltaic power plant. In May 2021, AGEL confirmed its decision to buy
Softbank Group Corp backed SB Energy Holding Limited for $3.5 billion.

Editors Synopsis
1.AGEL wins the single largest solar development bid ever awarded, totaling 8GW
to de delivered over a period of 60 months.
2.The $6 billion investment announced is the single largest since the launch of the
Atma Nirbhar Bharat (Self Reliant India program) by Hon’ble PM Shri Modi.
3.The investment will lead to the creation of 400,000 direct and indirect jobs.
4.The renewable energy generated will displace 900 million tonnes of CO2.
5.AGEL now has 15 GW capacity under operation, construction or contract and
moves closer to achieving its 25 GW renewable power target by 2025.
Ahmedabad, (India), 9th June, 2020
Adani Green Energy Limited (AGEL, NSE: ADANIGREEN) has won the first of its
kind manufacturing linked solar agreement from the Solar Energy Corporation of
India (SECI). As a part of the award, AGEL will develop 8GW of solar projects along
with a commitment that will see Adani Solar establish 2GW of additional solar cell
and module manufacturing capacity. This award, the largest of its type, ever, in
the world, will entail a single investment of Rs. 45,000 crores (US $6 billion) and
will create 400,000 direct and indirect jobs. It will also displace 900 million tonnes
of carbon dioxide over its lifetime.
 Part 1
A. Comparative Statement
Comparative Statement (Balance sheet)
Particulars 2021 2020 2019 Absolute Percentage Absolute Percentage
change change 2021 change change 2020
2021-2020 -2020 2020-2019 -2019
EQUITIES
AND LIABILITIES
Equity Share
Capital 1564.00 1564.0 1564.01 0 0 0 0
1
TOTAL SHARE
CAPITAL 1564.00 1564.0 1564.01 0 0 0 0
1
Reserves and
Surplus 157.00 -124.57 -155.20 281.57 1736.479 31.05 -22.23

TOTAL
RESERVES 157.00 -124.57 -155.20 281.57 1736.479 31.05 -22.23
AND SURPLUS
TOTAL
SHAREHOLDE 1721.00 1439.4 1408.82 281.56 17.81 30.62 2.15
RS FUNDS 4

NON-
CURRENT 0 0 0 0 0 0 0
LIABILITIES
Long Term
Borrowings 2148.00 1215.8 1738.51 932.17 55.42 522.68 35.38
3
Deferred Tax 0 0 0 0 0 0 0
Liabilities [Net]
Other long 0 0 0 0 0 0 0
Term Liabilities
Long Term 21.00 10.67 7.21 10.33 65.23 3.46 38.70
Provisions
TOTAL NON-
CURRENT 2169.00 1226.5 1745.72 942.49 55.5139 519.21 34.93
LIABILITIES 1
CURRENT - - - - - - -
LIABILITIES
 Short Term
Borrowings 3162.00 415.29 541.13 2746.71 153.56 125.84 26.31

Trade payables 625.00 194.33 89.72 430.67 105.12 104.61 73.65

Other Current
Liabilities 5865.00 2368.4 874.20 3496.57 84.96 1494.23 92.16
3
Short Term
Provisions 6.00 3.12 2.98 2.88 63.15 0.14 4.59

TOTAL
CURRENT 9658.00 2981.1 1508.03 6676.83 105.65 1473.14 65.63
LIABILITIES 7
TOTAL CAPITAL
AND 14,297.0 6396.2 5411.71 7900.73 76.36 984.56 16.67
LIABILITIES 0 7
ASSETS - - - - - - -

NON-CURRENT - - - - - - -
ASSETS
Tangible Assets 60.00 60.38 60.77 0.38 0.63 0.39 0.64

Intangible 7.00 1.57 0.79 5.43 126.72 0.78 66.10

Assets
Capital Work- 1.00 0.75 1.15 0.25 28.57 0.4 42.10
In-Progress
Other Assets 0 0 0 0 0 0 0

FIXED ASSETS 68.00 62.71 62.72 5.3 8.11 0.01 0.01

Non-Current
Investments 2920.00 682.11 2029.71 2857.29 191.59 1347.6 99.38

Deferred Tax
Assets [Net] 321.00 69.65 10.13 251.35 128.68 59.52 149.21

Long Term Loans

and Advances 4557.00 0 0 0 0 0 0
Other Non-
Current Assets 230.00 21.20 50.09 208.8 166.24 28.89 81.04
TOTAL NON-
CURRENT 8096.00 835.66 2152.65 7260.34 162.57 1316.99 88.14
ASSETS
CURRENT
ASSETS 0 0 0 0 0 0 0
Current
Investments 0 0 0 0 0 0 0

Inventories 2429.00 414.90 251.40 2014.1 41.64 163.5 49.07

Trade
Receivables 2534.00 91.06 314.95 2442.94 86.12 223.89 110.28

Cash and Cash

Equivalents 182.00 209.88 119.71 27.88 14.22 90.17 54.71

Short Term
Loans and 0 3245.0 2092.47 0 0 1152.56 43.18
Advances 3
Other Current
Assets 1056.00 1599.7 480.52 543.74 40.94 1119.22 107.62
4
TOTAL
CURRENT 6201.00 5560.6 3259.06 640.39 10.88 2301.55 52.19
ASSETS 1

TOTAL 14,297.0 6396.2 5411.71 7900.73 76.36 984.56 16.67

ASSETS 0 7
 (B)
Comment upon the Assets and Liabilities
Comparative Statement

Co. Names Current Assets Fixed Assets Current Liability Long-Term Liabilities

Years 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021

3,259.0 5,560.6 6,201.0 62.72 62.7 68.00 1,508 2,981 9,658. 1745. 1226. 2169.00
AGEL 6 1 0 .03 .17 00 72 51
1

45,666. 57,947. 58,729. 216,8 230,1 239,8 57,62 57,37 60,43 125,8 156,7 163,799
NTPC 55 94 40 27.31 70.58 87.36 0.18 6.46 4.55 49.42 21.55 .35

TATA
7,025.8 5,887.5 5,244.8 7997. 8439. 8541. 12,66 11,58 10,54 9,777. 10,76 13,942.
Power Co. 4 8 3 95 16 59 7.17 6.50 7.62 81 8.01 77

Current Assets- Current assets represent all the assets of a company that are expected to be
conveniently sold, consumed, used or exhausted through standard business operations with
one year. Current assets appear on a company’s balance sheet, one of the required financial
statements that must be completed each yea. The current assets of the company is increasing
from 2019 to 2021 which means that the company is purchasing more or heading toward the
expansion.

Fixed Assets- Fixed assets are long-term assets that a company has purchased and is using for
the production of its goods and services. Fixed assets are noncurrent assets, meaning the assets
have a useful life of more than one year. Fixed assets include vehicles, office furniture,
machinery, buildings, land and are recorded on the balance sheet. Fixed assets are also referred
to as tangible assets, meaning they’re physical assets. During the year 2019-2020 the fixed
assets of the company has been constant which means the company is not increasing its
production or they are not moving towards buying new technologies. There is a increase in
fixed assets in year 2020-2021 which means the production capacity of the company has been
increased in this year.
Current Liabilities- The Current liabilities of the company in the year 2019 to 2020 has been
increased 1,473.14 which means the short-term money of the company has been increased. In
the year 2020 to 2021 it increased 6676.83, the company has enough current assets to pay off
its current liabilities.

Long-Term Liabilities- Long-Term liabilities are financial obligations of a company that are
due more than one year in the future. The current portion of long-term debt is listed separately
to provide a more accurate view of a company’s current liquidity and the company’s ability to
pay current liabilities as they become due. Long-Term liabilities are also called long-term debt
or noncurrent liabilities. In this company the long-term liabilities has been decreased in year
2020 which shows how company has got benefited, and then in year 2021 again it increased.

Part 2-
Liquidity Ratio
Liquidity ratios are an important class of financial metrics used to determine a debtor’s ability
to pay off current debt obligations without raising external capital. Liquidity ratio measure a
company’s ability to pay debt obligations and its margin of safety through the calculation of
metrics.
1. Current Ratio

Current ratio

Adani Green Energy 2021 2020 2019

Ltd. 0.85 1.66 2.17

Current Ratio= Current Assets/Current Liabilities

Source- https://www.business-standard.com/company/adani-green-70666/financials-
ratios
 Interpretation
1. The current ratio of the company is 0.85:1. It means the current liabilities of the company is
35% more than the current assets.
2. The company is not having sufficient current assets to pay off current liabilities.
3. The company may have problems meeting its short-term obligations.
4. The company’s liquidity position is not satisfactory.
5. Short-Solvency position is not satisfactory.

2. Debt-Equity Ratio

Debt-Equity Ratio

Adani Green Energy 2021 2020 2019

Ltd. 1.58 1.02 1.62

Debt Equity Ratio= Long-Term debts/Shareholders funds

Source- https://www.business-standard.com/company/adani-green-70666/financials-ratios

Interpretation
1. The debt equity ratio of the company is decreased in year 2020 which is 1.02.
2. After getting decreased 1.02 in year 2020 it again increased which is 1.58 in year 2021.
3. Proprietary Ratio

Proprietary Ratio

Adani Green Energy 2021 2020 2019

Ltd. 0.12 0.22 0.26

Proprietary Ratio= Shareholder funds/Total Assets

Source-https://www.moneycontrol.com/financials/adanigreenenergylimited/balance-
sheetVI/ADANI54145

Interpretation
1. It represents the relationship between shareholders fund and total assets of the company.
2. This means the company is more dependent on loans.
3. In 2019 26% belong to shareholders and remaining 74% based upon outsider’s fund.
4. In 2020 22% belong to shareholders and remaining 78% based upon outsider’s fund.
5. In 2021 12% belong to shareholders and remaining 88% based upon outsider’s fund.
6. The company has a strong financial position of the company and greater security for the
creditors.
4. Stock Turnover Ratio

Stock Turnover Ratio

Adani Green Energy 2021 2020 2019
Ltd. 1.00 3.00 1.26

Stock Turnover Ratio = Cost of Goods Sold

Average Inventory

Source - https://www.moneycontrol.com/financials/adanigreenenergylimited/balance-
sheetVI/ADANI54145

Interpretation
1. It is used to determine the efficiency which converts the inventory ratio.
2. The efficiency of the company is quickly converted into cash.
3. The company managing its stock in an appropriate manner.
Profitability Ratio

1. Net Profit Ratio

Competitors
Net Profit Ratio AGEL NTPC Tata Power Co
446.11 867.89 2140.48

Net profit ratio = Net Profit/Net Sales*100

Sources –
https://www.business-standard.com/company/adani-green-70666.html
https://www.business-standard.com/company/ntpc-12001.html
https://www.business-standard.com/company/tata-power-co-554.html

Interpretation
Spending of every 100 rupees the company got profit of.
2. Operating profit ratio

Competitors
Operating Profit AGEL NTPC Tata Power Co.
Ratio 104.38 287.745 365.01

Operation Profit Ratio = Operating Profit Ratio/Net Sales*100

Sources –
https://www.business-standard.com/company/adani-green-70666.html
https://www.business-standard.com/company/ntpc-12001.html
https://www.business-standard.com/company/tata-power-co-554.html

Interpretation
Spending of every 100 rupees the company got operating profit of.
On the basis of information collected and analysis made above, decide with
suitable reasons whether you would like to invest in the shares of the company
and why/why not ?
In the analysis of company Adani Green Energy Ltd. the company’s earnings per share are
increasing in an appropriate manner, and the company is paying out a little more than half of its
profit. With a reasonable payout ratio, profit being reinvested and some earnings growth, Adani
Green Energy have strong prospects for future increases to the dividend. Investing in shares gives
you the chance for long-term capital appreciation. Also, you can earn profits through dividends paid out
by the company including Adani Green Energy Ltd. Adani Green Energy Ltd. gives investors an appropriate
dividend.