THINK SCHOOL ADANI & Hindenburg

Hindenburg has Killed Adani Group?: Decoding Adani’s response to

Hindenburg (Business case study) - YouTube
https://www.youtube.com/watch?v=4WSAeT_XDaI

Hindenburg has Killed Adani Group?: Decoding Adani’s response to

Hindenburg (Business case study) - YouTube
https://www.youtube.com/watch?v=4WSAeT_XDaI

Transcript:
(05:11) well I use sold things solar shares for 90 crore rupees he bought
them back at just 80 crore rupees eventually making a profit of 10 crore
Rupees and then he would return the shares to Posh this is how ayush
would make money through Short Selling or as they say by shorting
things solar's stock and just like that even in this case

Hindenburg would have borrowed these stocks from a broker while

Adani's stock price were extremely high and they would have sold it in
the market and after that when they came out with a report when the
stock prices Came Crashing Down now or a few weeks later they would
buy back these stocks eventually they would make a profit so regardless
of whether these allegations are true or not if the fear-mongering
causes the stock to crash which it did Hindenburg would make a hefty
profit now short selling cannot be ignored
we all know that adani who had a net worth of roughly 120 billion
dollars he had gotten most of his wealth in the last three years at the
end of 2019 his net worth was around 20 billion dollars but the rest 100
billion dollars got accumulated in the past three years itself and this
according to Hindenburg is largely through the appreciation of his stock
prices in his group's seven key listed companies. if you see in the last
three years itself Adani Enterprises stock price has shot up by 1398 gas
has shorter by 2121 and green has shot up by 908 percent so the
question is how on Earth did Adani companies accumulate so much
wealth and what is a secret to their growth where apart from their
Cutting Edge execution one very very critical factor for their growth has
been their debt strategy and this is one of the most important things
that the Hindenburg report points out

so let's use a simple example to understand this and by any chance if

you remember
(07:02) this example from our video that we made about six months
back please skip to this timestamp if you don't here's an oversimplified
analogy to help you understand the adani's death strategy better let's
say we have a listed company called thing Enterprises with a market cap
of 10 000 crores a revenue of 2500 crores and a net profit of 500 crores
and under this company we have three more companies called thing
power think infra and think green these three daughter companies are
not listed yet but they have a huge potential to scale
(07:28) in the next 10 years now you see if think Enterprises bags are
tender to build a port that would cost 7500 crores think Enterprises will
have to reject it why because we do not have the profits to pay 7500
crores at the same time the banks would hesitate to give us a loan of 7
000 500 crores with such low profits of just 500 crores and the last Way
by which we could raise money would be by pledging our shares as in if
mice taking the company is worth 7 000 500 crores I would pledge 10 of
my shares in the company worth 750 crores and then
(08:00) the bank would do a risk analysis and give me a loan worth 350
crores but in this case today 7500 crores I can't pledge 80 percent of a
mistake and raise these loans right that would be ridiculous but this is
where a consultant designs an intricate framework to help me get these
projects effortlessly firstly we would decide to list all our daughter
companies in the stock market and because of the brand value of think
Enterprises all the three companies would have a stellar IPO so in the
next five years think green has a
(08:29) market cap of hundred thousand crores think power Hits 10 000
crores and think infra stands at 5000 crores and now our shareholdings
amount to 75 000 crores seven thousand crores and three thousand
five hundred crores respectively and now if think infra wants to raise
7500 crores here's how they would do it firstly it would raise 2 000
crores by projecting its profits so if you are companies generating 500
crores of profit the banks would not mind lending you 2 000 crores
because they know that you can easily repay the loan with just
(09:00) your profits of the next four years so this way 2000 crores has
been raised and now we need another 5500 crores this is where we
have method number two in this method what think would do is since
think Green's stock price is very very high it would pledge 10 percent of
its own shares to get a bank loan so in this case 12 percent stake worth
12 000 crores is pledged to the bank to get a loan of 6 000 crores and
once they get this loan they would loan 5 000 crores to think
Enterprises and use the rest one thousand crores for its expansion so
(09:32) now we have 7 000 stores in total and now we just need 500
crores extra for this we will just issue a bond of 500 crores and raise the
money directly from the people that's it 7500 crores of capital has been
traced and now we could take a giant project and make headlines in the
market this is all by taking a loan through pledging the shares of the
daughter company and then passing it on to another group company
think can help itself grab giant projects and now if you look at the adani
group you will see
(10:01)

something very very similar let shares is definitely a new Norm which is
used by several aggressive promoters and Gautam adani is no exception
to that adani group has pledged its entire Equity stake in the newly
acquired companies initially adari Enterprises was the only company
listed in the stock market but from 2008 onwards they started listing
their companies and now they have seven listed companies which are
adani Wilmer adani Enterprises adani ports and scg adani power adani
transmission and many of these companies also have their own
subsidies and then as per the requirements of the company they
orchestrated an intricate framework of cash flow, if we see their
statements we will see that adani transmission India is a subsidiary of
adani transmission and its financial statements for 2014-15 show that it
Borrowed 2794.24 crores by pledging all immovable and movable assets
of two transmission lines and almost half of this money that it
borrowed that is about 1222.97 crores went as a loan to another listed
company and that is adani Enterprises similarly between 2039 and 2018
adani power struggling with cash flow this was because when the
power project was built in Mundra it was expected to get cheap supply
of coal from Indonesia but when Indonesia raised the price of its
exported Coal adani Power Mundra claimed that its cost of coal had
risen so much that it could no longer Supply Power at original rates so
during this period the company's annual reports show several instances
whether adani Enterprises made loans to adani power directly and it
also gave out loans indirectly through its subsidiaries like Alani infra or
cutch power generation and if you look at the extent of the share
pledging you will see it in this graph whereby from 2019 to 2020 the
promoter gross pledge position actually went from 38 to 37 and 28 to
58. 54 and 50 and this was for three companies which are adani ports
transmission and Enterprises so we can see this entire complexity is a
permutation and combination of two moves using one group company's
loan eligibility to pass it on to another group company and lastly to
direct cash flow to a troubled group company and like we saw in a
previous episode this master plan of cash flow created a virtuous cycle
for the iranis whereby when an adani company wants to contest for a
tender they are able to easily raise funds after raising funds they bag
huge infra projects and once they do every single News Channel media
house starts screaming out the progress of the attorneys this in turn
boosts investor confidence and more people invest in adani stock so
again when the stock price of these companies go up they're able to
pledge the value of those stocks to get even bigger loans which again
helps them back giant government projects.

it's very risky because it could lead to a vicious cycle whereby if the
Share value drops the banks could sell the shares and when such huge
volumes of shares are released the investor sentiment would go
negative and that would cause the stock to crash and this would further
lead to more selling this is why the Hindenburg report says equity share
pledges are an inherently unstable source of lending collateral because
if share prices drop the lender can make a collateral call if no additional
collateral is available the lender could require a forced liquidation of
shares often perpetuating a self-fulfilling cycle as stock prices move
lower and selling continues

secondly they also point out something

(13:33) called the current ratio of the adani group for those who don't
know current ratio is a financial indicator that measures the company's
ability to pay its short-term obligations it's basically calculated by
dividing companies current assets by current liabilities now if you don't
understand this here's a very simple example of the same and if you
already understood this please keep to this time's time let's start with
current assets current assets are the assets that the company can
(13:55) immediately sell and generate cash and by immediate I mean in
less than one year this would include the cash receivable amounts
inventories Etc so in case of things solar which is a made-up company
we would have 100 crores in a bank balance from previous years of
profits we would have 50 crores worth of solar panels in our inventory
that could be sold plus we would have clients who are yet to pay us 40
crores for our products plus we would also have office spaces that could
be sold to generate another 30 crores so in total our current assets
(14:26) as in the assets that can give us Instant Cash are worth 100
crores plus 50 crores plus 40 crores plus 30 crores equal to 220 crores if
this is very very clear to you let's come to current liabilities current
liabilities are nothing but the amount of money that we are due to pay
in the next one year for example in our imaginary company called think
solar we have 50 crores in loan installment to be paid this year plus we
are yet to pay our glass and silicon suppliers a total of 40 crore rupees
plus we have salaries to be paid which
(14:54) is again going to cost us another 15 crore rupees so in total our
current liabilities are equal to 50 crores plus 40 crores plus 15 crores
which is equal to 105 crores so our current ratio is current assets
divided by current liability which is 220 divided by 105 which is 2.09 so
this is a healthy number why because I have 220 crores worth of assets
that I can immediately turn into cash but only 110 crores worth of
liabilities to be paid for but if this ratio goes less than one it becomes
risky why because it means that you do
(15:25) not have enough assets to liquidate and pay back your debt now
in case of think solar if I had 220 crores in liabilities to be paid for but
only 110 crores worth of assets that can give me cash it's very risky right
this is what the

Hindenburg report points out with the adani group whereby they stated
that 5 out of the seven adani companies have current ratios of less than
one in fact the current ratios of adani green and total gas stand at 0.5
and 0.
it is risky but is it wrong absolutely not and Common Sense is if
Hindenburg is smart enough to know this ICICI and SBI are not stupid to
oversee this isn't it and the funny thing is Hindenburg is telling this to
you in 2023 but the transactions that happened those are dated back to
2015 and 98 so it's not new information at all and the banks already
know it there's nothing too revealing about it if this

let's look at Adani’s response to this allegation to count under the

allegations regarding their debt the group said that the growth of their
EBITDA or profit before tax is 2x the growth of debt over the last five
years so while profits have grown at 22 percent the net debt which is
the total debt of the company minus its cash that has grown at a
smaller pace of 11 annually in the last decade so even though the value
of debt is high the debt to profit ratio has actually decreased over time
and a classic metric to understand the same would be the ratio called
net debt to RR EBITDA or net debt to run rate EBITDA
the company has two times more debt than its earnings can support so
higher the ratio the more risky the company gets
the group has come out of debt very very rapidly in the last three years

Net debt by RR a bit of less than 1 is no risk one to three is moderate

risk three to five is high risk and above 5 is very high risk
in 2013 adani had a net debt to ARA repeater of 7.6 which was very
very high risk but by 2016 it came down to 4 which was still high risk
but now in 2022 they have brought it down to 3.2 which is a little above
moderate risk in fact three out of the six adani companies are only in
moderate risk phase one of them is in low risk one of them is at high
risk and green is at very high risk but because they have a huge house
of companies to balance it out if you look at their total net debt to run
rate Vida it is slightly above moderate risk category.
secondly the adani is released this graph showing the pledged promoter
shares of adani group that have reduced drastically from 58 54 50 and
13 to just 17 7 4 percent and just three percent so we can see the risk
with share pledging has actually been reduced in the past three years

The miscellaneous and fraud related allegations by Hindenburg report

on the adani group now for the benefit of time I am skimming through
them in groups so that it can save us time and

The first set of allegations are regarding stock manipulations, acc to SEBI
rules once a company is listed on the stock market its promoters or the
Insiders or the owners of the company they can have a maximum of 75
stake in their own company and it's mandatory for 25 of the shares to
be held by the public but Hindenburg implies that there are several
shell companies related to the ADANIs which are buying their shares to
purposefully inflate the stock prices eventually to increase the overall
group's controlling stake to even more than 80 percent in some cases
companies have created shell companies countries including UAE
Caribbean island and Mauritius that led to corruption money laundering
and tax theft in the Hindenburg report they claim that Adani is accused
of stock price manipulation using shell companies Hindenburg accused
Adani group of a Brazen stock manipulation and accounting fraud
scheme a run over decades partly through the use of shell companies

if we look at the table we can see that there are these companies like
APMS, Cresta and opal that are based out of Mauritius and they have an
unusually high percentage of portfolio in just Adani companies so APMS
has 99.4 dedicated towards ADANI companies, LTS have 97% of Assets
in Adani and Opal is said to have 100 of its assets invested only in Adani
companies and all these funds are controlled by a single company called
Monte Rosa Holdings which together holds 4.5 billion dollars’ worth of
stake in Adani’s listed companies and the Hindu book report also points
out that Adani's niece is married into a relation of the Monterosa
company suggesting a connection between both these transactions and
the relation basically it's suggesting that they're creating a series of shell
companies that are buying Adani stock so that they're able to control
more than 75 of the entire stock which is against SEBI rules.

Adani's response to this is very simple they said each of the entities
referenced in the queries above are public shareholders in the listed
companies in the Adani portfolio and they are not related parties or the
promoters at all and secondly a public listed entity anyways does not
have any control over who buys sells owns their shares or how much
volume is traded or the source of the funds and they say we cannot
comment on the trading pattern or behavior of public shareholders so
this argument basically says that just like a public listed company is not
allowed to force somebody to buy their stock just like that they cannot
prevent anybody from buying their stock so if a shell company buys it a
gangster buys it or if Ganesh Prasad buys it the ADANIs have no control
over it because they're a public listed company and 25 percent of the
shares have to be floated out to the public and who buys them that is
not in their control.
The second type of allegation is regarding the people in the organic
group for this Hindenburg says he was accused for a Diamond Trading
scheme in 2004 & 2005 and that he was arrested twice over allegations
of Customs tax evasion forging import documentation and illegal coal
Imports similarly Gotham Adani's brother-in-law Sameer Bura he was
accused by the DRI of being a ringleader of a Diamond Trading scam but
even then the question is how was he promoted to the executive
director of the critical Adani Australia division this is the question put
forth by the Hindenburg report

The Adani Group denies the allegations of fraud and corruption, stating
that they have been disclosed in the public domain and dismissed in
their favor. They provide annexures of relevant documents and court
orders to support their claim. The Adani Group also notes that the
allegations have no relevance to the promotion of Mr. Samir Vora.

by saying each of the above matters are closed and dismissed in our
favor further these matters have been disclosed by us in the public
domain and all our stakeholders are aware of the same these points
have been cited solely in an attempt to further The Narrative of lice plus
the Adani team has also given sources and page numbers that can
actually refer to to find these disclosures so basically the argument says
acquisition is not equal to conviction and without conviction these
claims are baseless and whatever proceedings have happened when
they have already been revealed to the shareholders there is nothing to
be worried about if this.
just like this there's a detailed list of allegations on the people in adani
group and you can find it from the report in the description now for all
of this the group put out a straightforward response saying that

is very very clear to you let's come to the third category of allegations
which are the red flags in

the management of the company here's where they point out that five
Adani CFOs resign the company in just eight years for this the group
responded by saying first of all many of the former CFOs are still a part
of the organization in various other capacities including taking on larger
or key roles in the company secondly they said that the organization
allows and encourages development of individuals including them
taking on significantly larger roles from time to time for example Mr
Singh the current CFO of Adani Enterprises limited he was appointed as
CFO in May 2019 but has been with the organization since May 2012
itself where he played the role as the advisor in strategic Finance thirdly
other CFOs mentioned in the report have left to pursue individual
Ambitions including their Journey as entrepreneurs for example Mr. Ami
Desai resigned as CFO of Adani Enterprises limited to begin his journey
as an entrepreneur similarly Mr. B Ravi resigned as CFO of Adani ports
for similar entrepreneurial Ventures and lastly the Adani group points
out that the Hindenburg report conveniently fails to mention that none
of these resignations have ever been made pursuant to any alleged
concerns against any of the underlying companies and each of these
cited resignations and changes in CFOs have been duly disclosed from
time to time as per the regulated requirements for the public basically
the argument says that when most of the CFOs are still with the
company
when
(24:39) none of them have raised any red flags themselves when they
resigned when two of them have gone on to become entrepreneurs
what exactly is the problem and more importantly when all these
changes have been disclosed to the shareholders what is wrong with
that if this is very very clear to you let's come to
the fourth category of allegations which is regarding their auditing firms
is the current auditor there itself we are comfortable even total was
comfortable and is comfortable with the work done by yeah okay we
should not impugn people because they're small firm they're this they
pay rent because they they are sitting in an office where before we had
full leasing now our office is learning corporate house hmm here

Hindenburg says that the independent audit for Adani Enterprises and
Adani total gas is actually a very very tiny form that reported having
only four partners and 11 employees this company's name goes by the
name Shah Dhandaria and of the partners featured on its archived team
page they found that three of these Partners were in their 20s with
hardly the level of experience or seniority that is needed to scrutinize
such big and powerful companies.
for this the Adani group responded by saying all these Auditors have
been duly certified and qualified by the relevant statutory bodies who
are responsible to determine these benchmarks secondly all Auditors
have been appointed in compliance with the applicable law and the
company's public documents clearly disclosed Shah Dhandaria as their
auditor to all regulators and stakeholders so it's quite questionable as to
what exactly is wrong with this in fact the adani group points out that
the Hindenburg report had done a terrible thing by disregarding the
personal privacy and safety of these people because they literally
published private and personal information including the pictures of
government IDs without any consent or the attempt to safeguard the
identities of the people in question so it's not an attack on the company
anymore but on the individuals and their families

and that with no proven wrongdoings this is a story of the allegations

by Hindenburg the concepts and numbers behind them adani group's
response the concepts numbers and proofs behind the rebuttal and
now it's complete up to you to decide who's right and who is wrong and
my only opinion in this matter is that we should wait for a repeated
body like sebi or the courts of India to actually we come to a conclusion
as to whether something really went wrong with the adani group or not
until then all of our opinions are completely baseless
(27:12) meanwhile please find all the study materials attached in the
description that's all my time today guys if you learned something I will
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subscribe to our Channel thank you so much for watching I will see you
in the next one bye bye [Music] foreign [Music]

Hindenburg has Killed Adani Group?: Decoding Adani’s response to

Hindenburg (Business case study) - YouTube
https://www.youtube.com/watch?v=4WSAeT_XDaI
Transcript:
enterprises the incubating arm of irani group has delivered 1100 to
shareholders in the last five years indian infrastructure mogul goda
madani became the richest asian billionaire in history earlier this month
they are one of the largest developer and operator of coal mine in india
with a production capacity of 15.5 million ton shares of each of those
businesses are up between 19 and 195 this year as adani has led
aggressive expansion into renewable energy media airports and more
[Music] hi everybody the adani group is one of the most iconic
businesses in the indian business history and what's absolutely mind-
boggling about them is that in the past 10 years the adhani group
single-handedly went on to become india's largest private port operator
largest coal importer coal miner private power producer city gas
distributor andthe largest edible oil importer in the country they have
been buying giant companies as if you and i would buy a pair of
sneakers for example in 2018 the group bought reliance transmission
for 12 300 crores jmr chattisgarh for 5200 crores cutter pulley poured
for one thousand nine fifty crores and paid 228 crores for the power
transmission line from bikaner to sikker this one year of shopping alone
adds up to a bill of 19687 crores and as we all saw this year they bought
ambuja and acc for 81 000 crores and went on to become the
secondlargest civil manufacturer overnight and as a result of this
incredible speed of expansion in the past five years the stock price of
each of their companies has shot up by an insane rate while adani
power has shot up by eight hundred percent agani enterprise has shot
up by two thousand four hundred percent and adani green has shot up
by a mind boggling five thousand percent and while most of us would
be awestruck at these figures very few people realize that the adhani
group is not sitting on a mountain of profits but a mountain ofdebt and
the point to wonder over here is that while tata group and reliance both
have cash cows in the form of tcas and petrochemicals which are
extremely profitable businesses the adani group does not have a super
profitable business to bank on yet but even then they've managed to
gather a debt of 2.2 trillion rupees so the question is how are the
adani's getting such heavy loans to buy so many companies what
exactly is their business strategy and lastly what are the study materials
to help you understand the debt strategy of the adani's better before
you continue with this detailed adani story let me thank our partners of
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percent off on skillshare [Music] to understand the debt strategy of the
adhanis let's start with a simple relatable example now mind you
people this is an oversimplified example so let's try to understand this
oversimplified example first and then we'll have a look at the complex
flowchart of the adhanis let's say we have a listed company called think
enterprises with a market cap of 10 000 crores a revenue of 2500crores
and a net profit of 500 crores and under this company we have got
three more companies called think power think infra and think green
these three daughter companies are not listed yet but they have a huge
potential to scale in the next 10 years now at this point in time if think
enterprises gets an opportunity to build a port that is going to cost 7500
crores the company will have to reject it why because we don't have the
profits to pay 7500 crores and at the same time the banks would
hesitate to give us a loan of 7000 finder crows with such low profits of
just 500 crores and the last way by which thing could raise money
would be by pledging the shares as in if my stakes in the company is
worth 8 000 crores i would pledge 10 of my shares in the company
worth 800 crores to the bank then the bank would carry out the risk
analysis and may give me 500 crores in loan but in this case to raise 7
500 crores i cannot pledge 80 of my stake to the bank to get a loan right
that would be ridiculous but this is where a consultant comes inand he
designs an intricate framework by which we could back big project in
spite of having less profits and here's what the framework looks like
firstly think would list all their daughter companies in the stock market
and because of the brand value of think enterprises all the three
companies will have a stellar ipo so in the next five years think green
would have a market cap of hundred thousand crores think power hits
ten thousand crores and think infra stands at five thousand crores and
now our shareholdings amount to 75 000 crores7000 crores and 3500
crores respectively and now if think enterprises wants to raise 7500
crores here's how it would do it firstly it will raise 2000 crores by
projecting its profits so if your company is generating 500 cruiser profits
bank would not mind lending you 2 000 crores because they know that
merely through your profits you could repay back the loan along with
interest so this way 2000 crores has been raised from the bank loans
now we need another five thousand finder course this is where method
number twocomes in in this method what thing could do is since think
green stock price is very very high it would pledge 10 percent of its own
shares to get a bank loan so in this case ten percent stake worth ten
thousand crores is pledged to the bank to get a loan of six thousand
crews and once they get this loan they would loan five thousand crores
to think enterprises and use the rest of the 1000 crores for the
expansion and other projects so now in total we've got seven thousand
crores and we just need another findercruise for this we would just
issue a bond of 500 crores and raise the money directly from the people
and once these bond units are bought that's it 7500 crores of capital
has been raised and now we could take up a giant project and make
headlines in the market this is the first strategy to raise money that is by
taking a loan by pledging the shares of your daughter company and
then passing it to another group company to help them grab giant
projects and this brings me to the second strategy wherein one
groupcompany invests money into another group company and when
the time comes this company will sell its take in that group company
and then use the money for itself for example if thing infra has some
extra cash in the year of 2015 and think green is on the words of rapid
expansion think infra would buy one thousand crores worth of shares in
think green and as soon as think green expands investors would flock to
buy thin green stocks and in the next two years think a green stock
would shoot up by one hundred percent and because of this thevalue of
think infras investment shares in thin green would be worth two
thousand crores so when the time comes where think infra needs 2 000
extra for their damn construction project they would sell this take
steadily over time and get 2 000 crores to build their dam this is how a
company can leverage its brand value and can raise money by
circulating and cross investing with their own group companies
eventually to raise dead and bag giant projects and now if you look at
the adani group you will see something very very similarinitially adani
enterprises was the only company listed in the stock market but from
2008 onwards they started listing their companies and now they've got
seven companies listed which are adani wilmer adani enterprises adani
ports and sec adani power adani transmission green energy and adani
gas and then as per the requirements of the company they orchestrated
an intricate framework of cash flow just like the one that we learned
right now for example in 2015 16 agani properties which is a subsidiary
of adani enterprises they bought a 9.05percent stake in adani
transmission now you see both these firms are in a completely different
business but even then the stake was bought and in 2017-18 adani
properties exited adani transmission the question is what exactly
changed well if you look at the stock price difference of adani
transmission in 2015 and 2017 you will see that in july 2015 the stock
price stood at 27.6 rupees and by 2017 the value shot up to 126 rupees
so 100 crores invested in adani transmission in 2015 would be worth at
least 400 crores in 2017 and hence adani property's investment had
been appreciated because of which they could benefit from this
transaction so this way the money stays within the company and when
needed adani properties could sell off its take and use the appreciation
to carry out their construction projects secondly between 2013 and
2018 adhani power was struggling with cash flow this was because
when the power project wasbuilt in mundra it was expected to get
cheap supply of coal from indonesia but when indonesia raised the
price of its exported coal adani power mudra claimed that its cost of
coal had risen so much that it could no longer supply power at original
rates so during this period the company's annual report shows several
instances where adani enterprises made loans to adani power directly
and it also gave out loans indirectly through subsidies like adani infra
india or kutch power generation similarly adani transmissions financial
statements for2014-15 show that it borrowed 2794.24 crores by
pledging all movable and immobile assets of two transmission lines and
almost half of this money that it borrowed that is about one thousand
two twenty two point nine seven crores went as a loan to another listed
company adani enterprises similarly from 2014 to 18 adhani
transmission got money as loans and equity from adani enterprises and
its subsidiaries in 2014.transmission repaid a part of these loans in the
same year but also bought shares in another group company and set up
two subsidiaries then adani transmission repaid old loans and borrowed
fresh from adani ports and sec so you see this entire complexity is a
permutation and combination of just three moves buying equity in
group company to generate cash flow in the future using another group
company's loan eligibility to pass it on to another group company and
lastly to direct cash flow to a troubled company as and when needed
andwhen this method is applied for seven companies spanning seven
different industries having thousands of crores of investments you will
see the answer to the incredible rise and expansion of the adhani group
and you know what guys this master plan of cash flow creates a super
powerful virtuous cycle whereby when an adani company wants to
contest for a tender they are able to easily raise funds after raising
funds when they build a huge infra project every single new channel
media house screams out the progress of the idhaanis and this inturn
boosts investor confidence and more people go on to invest in adani
stock so again when the price of these stocks go up they are able to
pledge the value of the stock to get loans which again helps them bag
huge government projects now although this looks risky to me what we
cannot deny is the sheer genius of how intricate and mind-boggling this
entire process is because what i showed you are still an oversimplified
version of the transactions so what goes on every single day in the
finance department ofthe adani group is a calculation that's probably
only meant for the genius to understand this is the story of the
incredible rise of the adanis and this brings me to the last part of the
episode and that are the study materials to help you understand this
debt strategy of the adhani is better meanwhile if you're someone who
wants to take business related classes check out the classes on
skillshare on the link in the description and get a 30 off moving on to
the study materials the first thing i'm attaching is a scrollarticle that will
give you an in-depth idea about how the intricate financial framework
of the adani group works secondly i am attaching a wall street mojo
article that will help you understand the concept of pledged shares in
depth and lastly if you're fascinated by the growth of the adani group
and if you want to look at the reasons behind their acquisition do check
out our video on why adani's bought ambuja and acc and you'll be able
to understand what is the strategy that goes behind those acquisitions
that's all from my side oftoday guys if you learned something available
please make sure to hit the like button in order to make youtube bubba
happy and for more such insightful business and political case studies
please subscribe to our channel thank you so much for watching i will
see you in the next one bye bye [Music] you

Summarize the following.

Title: "How ADANI's Genius/RISKY DEBT STRATEGY fuelled the
SUPERFAST expansion of ADANI Group? : Case study - YouTube"
Transcript: "enterprises the incubating arm of irani group has delivered 1100 to shareholders in
the last five years indian infrastructure mogul goda madani became the richest asian billionaire
in history earlier this month they are one of the largest developer and operator of coal mine in
india with a production capacity of 15. 5 million ton shares of each of those businesses are up
between 19 and 195 this year as adani has led aggressive expansion into renewable energy
media airports and more [Music] hi everybody the adani group is one of the most iconic
businesses in the indian business history and what's absolutely mind-boggling about them is
that in the past 10 years the adhani group single-handedly went on to become india's largest
private port operator largest coal importer coal miner private power producer city gas
distributor and the largest edible oil importer in the country they have been buying giant
companies as if you and i would buy a pair of sneakers for example in 2018 the group bought
reliance transmission for 12 300 crores jmr chattisgarh for 5200 crores cutter pulley poured for
one thousand nine fifty crores and paid 228 crores for the power transmission line from bikaner
to sikker this one year of shopping alone adds up to a bill of 19687 crores and as we all saw this
year they bought ambuja and acc for 81 000 crores and went on to become the second largest
civil manufacturer overnight and as a result of this incredible speed of expansion in the past five
years the stock price of each of their companies has shot up by an insane rate while adani
power has shot up by eight hundred percent agani enterprise has shot up by two thousand four
hundred percent and adani green has shot up by a mind boggling five thousand percent and
while most of us would be awestruck at these figures very few people realize that the adhani
group is not sitting on a mountain of profits but a mountain of debt and the point to wonder
over here is that while tata group and reliance both have cash cows in the form of tcas and
petrochemicals which are extremely profitable businesses the adani group does not have a
super profitable business to bank on yet but even then they've managed to gather a debt of 2. 2
trillion rupees so the question is how are the adani's getting such heavy loans to buy so many
companies what exactly is their business strategy and lastly what are the study materials to help
you understand the debt strategy of the adani's better before you continue with this detailed
adani story let me thank our partners of this episode and that is skillshare skillshare is an online
learning community which enables learning and improves our skills our team previously took up
jerry mura's illustration class as well as jordi vandeput's basic premiere pro video editing class
which greatly improved the creativity of our videos this time we are looking at thomas dagger's
class on storytelling through film which talks about how to create engaging videos for youtube
as an education and information channel we must present even the most mundane facts in the
most interesting manner possible in order to engage our audience and this class has helped us a
lot to understand the principles behind that and that too from an industry expert himself we
learned how to build compelling narratives and create a sense of thrill in order to engage the
audience better in order to make them stately the end skillshare has experts on every possible
topic out there and you can learn on the go and get an opportunity to engage with people from
all across the world with similar interests and share your projects with them skillshare's annual
subscription cost less than 2728 rupees a year which is less than 229 rupees per month which is
lesser than the price of a starbucks coffee for things coolers check the custom link in the
description wherein the first thousand people to click on the link will get a thirty percent off on
skillshare [Music] to understand the debt strategy of the adhanis let's start with a simple
relatable example now mind you people this is an oversimplified example so let's try to
understand this oversimplified example first and then we'll have a look at the complex flowchart
of the adhanis let's say we have a listed company called think enterprises with a market cap of
10 000 crores a revenue of 2500 crores and a net profit of 500 crores and under this company
we have got three more companies called think power think infra and think green these three
daughter companies are not listed yet but they have a huge potential to scale in the next 10
years now at this point in time if think enterprises gets an opportunity to build a port that is
going to cost 7500 crores the company will have to reject it why because we don't have the
profits to pay 7500 crores and at the same time the banks would hesitate to give us a loan of 7
000 finder crows with such low profits of just 500 crores and the last way by which thing could
raise money would be by pledging the shares as in if my stakes in the company is worth 8 000
crores i would pledge 10 of my shares in the company worth 800 crores to the bank then the
bank would carry out the risk analysis and may give me 500 crores in loan but in this case to
raise 7 500 crores i cannot pledge 80 of my stake to the bank to get a loan right that would be
ridiculous but this is where a consultant comes in and he designs an intricate framework by
which we could back big project in spite of having less profits and here's what the framework
looks like firstly think would list all their daughter companies in the stock market and because of
the brand value of think enterprises all the three companies will have a stellar ipo so in the next
five years think green would have a market cap of hundred thousand crores think power hits ten
thousand crores and think infra stands at five thousand crores and now our shareholdings
amount to 75 000 crores 7000 crores and 3500 crores respectively and now if think enterprises
wants to raise 7500 crores here's how it would do it firstly it will raise 2000 crores by projecting
its profits so if your company is generating 500 cruiser profits bank would not mind lending you
2 000 crores because they know that merely through your profits you could repay back the loan
along with interest so this way 2000 crores has been raised from the bank loans now we need
another five thousand finder course this is where method number two comes in in this method
what thing could do is since think green stock price is very very high it would pledge 10 percent
of its own shares to get a bank loan so in this case ten percent stake worth ten thousand crores
is pledged to the bank to get a loan of six thousand crews and once they get this loan they
would loan five thousand crores to think enterprises and use the rest of the 1000 crores for the
expansion and other projects so now in total we've got seven thousand crores and we just need
another finder cruise for this we would just issue a bond of 500 crores and raise the money
directly from the people and once these bond units are bought that's it 7500 crores of capital
has been raised and now we could take up a giant project and make headlines in the market this
is the first strategy to raise money that is by taking a loan by pledging the shares of your
daughter company and then passing it to another group company to help them grab giant
projects and this brings me to the second strategy wherein one group company invests money
into another group company and when the time comes this company will sell its take in that
group company and then use the money for itself for example if thing infra has some extra cash
in the year of 2015 and think green is on the words of rapid expansion think infra would buy
one thousand crores worth of shares in think green and as soon as think green expands
investors would flock to buy thin green stocks and in the next two years think a green stock
would shoot up by one hundred percent and because of this the value of think infras investment
shares in thin green would be worth two thousand crores so when the time comes where think
infra needs 2 000 extra for their damn construction project they would sell this take steadily
over time and get 2 000 crores to build their dam this is how a company can leverage its brand
value and can raise money by circulating and cross investing with their own group companies
eventually to raise dead and bag giant projects and now if you look at the adani group you will
see something very very similar initially adani enterprises was the only company listed in the
stock market but from 2008 onwards they started listing their companies and now they've got
seven companies listed which are adani wilmer adani enterprises adani ports and sec adani
power adani transmission green energy and adani gas and then as per the requirements of the
company they orchestrated an intricate framework of cash flow just like the one that we
learned right now for example in 2015 16 agani properties which is a subsidiary of adani
enterprises they bought a 9.05 percent stake in adani transmission now you see both these
firms are in a completely different business but even then the stake was bought and in 2017-18
adani properties exited adani transmission the question is what exactly changed well if you look
at the stock price difference of adani transmission in 2015 and 2017 you will see that in july
2015 the stock price stood at 27. 6 rupees and by 2017 the value shot up to 126 rupees so 100
crores invested in adani transmission in 2015 would be worth at least 400 crores in 2017 and
hence adani property's investment had been appreciated because of which they could benefit
from this transaction so this way the money stays within the company and when needed adani
properties could sell off its take and use the appreciation to carry out their construction projects
secondly between 2013 and 2018 adhani power was struggling with cash flow this was because
when the power project was built in mundra it was expected to get cheap supply of coal from
indonesia but when indonesia raised the price of its exported coal adani power mudra claimed
that its cost of coal had risen so much that it could no longer supply power at original rates so
during this period the company's annual report shows several instances where adani
enterprises made loans to adani power directly and it also gave out loans indirectly through
subsidies like adani infra india or kutch power generation similarly adani transmissions financial
statements for 2014-15 show that it borrowed 2794.24 crores by pledging all movable and
immobile assets of two transmission lines and almost half of this money that it borrowed that is
about one thousand two twenty two point nine seven crores went as a loan to another listed
company adani enterprises similarly from 2014 to 18 adhani transmission got money as loans
and equity from adani enterprises and its subsidiaries in 2014. transmission repaid a part of
these loans in the same year but also bought shares in another group company and set up two
subsidiaries then adani transmission repaid old loans and borrowed fresh from adani ports and
sec so you see this entire complexity is a permutation and combination of just three moves
buying equity in group company to generate cash flow in the future using another group
company's loan eligibility to pass it on to another group company and lastly to direct cash flow
to a troubled company as and when needed and when this method is applied for seven
companies spanning seven different industries having thousands of crores of investments you
will see the answer to the incredible rise and expansion of the adhani group and you know what
guys this master plan of cash flow creates a super powerful virtuous cycle whereby when an
adani company wants to contest for a tender they are able to easily raise funds after raising
funds when they build a huge infra project every single new channel media house screams out
the progress of the idhaanis and this in turn boosts investor confidence and more people go on
to invest in adani stock so again when the price of these stocks go up they are able to pledge
the value of the stock to get loans which again helps them bag huge government projects now
although this looks risky to me what we cannot deny is the sheer genius of how intricate and
mind-boggling this entire process is because what i showed you are still an oversimplified
version of the transactions so what goes on every single day in the finance department of the
adani group is a calculation that's probably only meant for the genius to understand this is the
story of the incredible rise of the adanis and this brings me to the last part of the episode and
that are the study materials to help you understand this debt strategy of the adhani is better
meanwhile if you're someone who wants to take business related classes check out the classes
on skillshare on the link in the description and get a 30 off moving on to the study materials the
first thing i'm attaching is a scroll article that will give you an in-depth idea about how the
intricate financial framework of the adani group works secondly i am attaching a wall street
mojo article that will help you understand the concept of pledged shares in depth and lastly if
you're fascinated by the growth of the adani group and if you want to look at the reasons
behind their acquisition do check out our video on why adani's bought ambuja and acc and
you'll be able to understand what is the strategy that goes behind those acquisitions that's all
from my side of today guys if you learned something available please make sure to hit the like
button in order to make youtube bubba happy and for more such insightful business and
political case studies please subscribe to our channel thank you so much for watching i will see
you in the next one bye bye [Music] you"

Soch by Mohak

End of Adani? Hindenburg Report Explained - YouTube

https://www.youtube.com/watch?v=546ZWsF_cCE
Transcript:
enterprises the incubating arm of irani group has delivered 1100 to shareholders in the last five
years indian infrastructure mogul goda madani became the richest asian billionaire in history
earlier this month they are one of the largest developer and operator of coal mine in india with
a production capacity of 15.5 million ton shares of each of those businesses are up between 19
and 195 this year as adani has led aggressive expansion into renewable energy media airports
and more [Music] hi everybody the adani group is one of the most iconic businesses in the
indian business history and what's absolutely mind-boggling about them is that in the past 10
years the adhani group single-handedly went on to become india's largest private port operator
largest coal importer coal miner private power producer city gas distributor andthe largest
edible oil importer in the country they have been buying giant companies as if you and i would
buy a pair of sneakers for example in 2018 the group bought reliance transmission for 12 300
crores jmr chattisgarh for 5200 crores cutter pulley poured for one thousand nine fifty crores
and paid 228 crores for the power transmission line from bikaner to sikker this one year of
shopping alone adds up to a bill of 19687 crores and as we all saw this year they bought ambuja
and acc for 81 000 crores and went on to become the secondlargest civil manufacturer
overnight and as a result of this incredible speed of expansion in the past five years the stock
price of each of their companies has shot up by an insane rate while adani power has shot up by
eight hundred percent agani enterprise has shot up by two thousand four hundred percent and
adani green has shot up by a mind boggling five thousand percent and while most of us would
be awestruck at these figures very few people realize that the adhani group is not sitting on a
mountain of profits but a mountain ofdebt and the point to wonder over here is that while tata
group and reliance both have cash cows in the form of tcas and petrochemicals which are
extremely profitable businesses the adani group does not have a super profitable business to
bank on yet but even then they've managed to gather a debt of 2.2 trillion rupees so the
question is how are the adani's getting such heavy loans to buy so many companies what
exactly is their business strategy and lastly what are the study materials to help you understand
the debt strategy of the adani's better before you continue with this detailed adani story let me
thank our partners of this episode and that is skillshare skillshare is an online learning
community which enables learning and improves our skills our team previously took up jerry
mura's illustration class as well as jordi vandeput's basicpremiere pro video editing class which
greatly improved the creativity of our videos this time we are looking at thomas dagger's class
on storytelling through film which talks about how to create engaging videos for youtube as an
education and information channel we must present even the most mundane facts in the most
interesting manner possible in order to engage our audience and this class has helped us a lot to
understand the principles behind that and that too from an industry expert himself we learned
how to build compellingnarratives and create a sense of thrill in order to engage the audience
better in order to make them stately the end skillshare has experts on every possible topic out
there and you can learn on the go and get an opportunity to engage with people from all across
the world with similar interests and share your projects with them skillshare's annual
subscription cost less than 2728 rupees a year which is less than 229 rupees per month which is
lesser than the price of a starbucks coffee for things coolerscheck the custom link in the
description wherein the first thousand people to click on the link will get a thirty percent off on
skillshare [Music] to understand the debt strategy of the adhanis let's start with a simple
relatable example now mind you people this is an oversimplified example so let's try to
understand this oversimplified example first and then we'll have a look at the complex flowchart
of the adhanis let's say we have a listed company called think enterprises with a market cap of
10 000 crores a revenue of 2500crores and a net profit of 500 crores and under this company
we have got three more companies called think power think infra and think green these three
daughter companies are not listed yet but they have a huge potential to scale in the next 10
years now at this point in time if think enterprises gets an opportunity to build a port that is
going to cost 7500 crores the company will have to reject it why because we don't have the
profits to pay 7500 crores and at the same time the banks would hesitate to give us a loan of
7000 finder crows with such low profits of just 500 crores and the last way by which thing could
raise money would be by pledging the shares as in if my stakes in the company is worth 8 000
crores i would pledge 10 of my shares in the company worth 800 crores to the bank then the
bank would carry out the risk analysis and may give me 500 crores in loan but in this case to
raise 7 500 crores i cannot pledge 80 of my stake to the bank to get a loan right that would be
ridiculous but this is where a consultant comes inand he designs an intricate framework by
which we could back big project in spite of having less profits and here's what the framework
looks like firstly think would list all their daughter companies in the stock market and because of
the brand value of think enterprises all the three companies will have a stellar ipo so in the next
five years think green would have a market cap of hundred thousand crores think power hits ten
thousand crores and think infra stands at five thousand crores and now our shareholdings
amount to 75 000 crores7000 crores and 3500 crores respectively and now if think enterprises
wants to raise 7500 crores here's how it would do it firstly it will raise 2000 crores by projecting
its profits so if your company is generating 500 cruiser profits bank would not mind lending you
2 000 crores because they know that merely through your profits you could repay back the loan
along with interest so this way 2000 crores has been raised from the bank loans now we need
another five thousand finder course this is where method number twocomes in in this method
what thing could do is since think green stock price is very very high it would pledge 10 percent
of its own shares to get a bank loan so in this case ten percent stake worth ten thousand crores
is pledged to the bank to get a loan of six thousand crews and once they get this loan they
would loan five thousand crores to think enterprises and use the rest of the 1000 crores for the
expansion and other projects so now in total we've got seven thousand crores and we just need
another findercruise for this we would just issue a bond of 500 crores and raise the money
directly from the people and once these bond units are bought that's it 7500 crores of capital
has been raised and now we could take up a giant project and make headlines in the market this
is the first strategy to raise money that is by taking a loan by pledging the shares of your
daughter company and then passing it to another group company to help them grab giant
projects and this brings me to the second strategy wherein one groupcompany invests money
into another group company and when the time comes this company will sell its take in that
group company and then use the money for itself for example if thing infra has some extra cash
in the year of 2015 and think green is on the words of rapid expansion think infra would buy
one thousand crores worth of shares in think green and as soon as think green expands
investors would flock to buy thin green stocks and in the next two years think a green stock
would shoot up by one hundred percent and because of this thevalue of think infras investment
shares in thin green would be worth two thousand crores so when the time comes where think
infra needs 2 000 extra for their damn construction project they would sell this take steadily
over time and get 2 000 crores to build their dam this is how a company can leverage its brand
value and can raise money by circulating and cross investing with their own group companies
eventually to raise dead and bag giant projects and now if you look at the adani group you will
see something very very similarinitially adani enterprises was the only company listed in the
stock market but from 2008 onwards they started listing their companies and now they've got
seven companies listed which are adani wilmer adani enterprises adani ports and sec adani
power adani transmission green energy and adani gas and then as per the requirements of the
company they orchestrated an intricate framework of cash flow just like the one that we
learned right now for example in 2015 16 agani properties which is a subsidiary of adani
enterprises they bought a 9.05percent stake in adani transmission now you see both these firms
are in a completely different business but even then the stake was bought and in 2017-18 adani
properties exited adani transmission the question is what exactly changed well if you look at the
stock price difference of adani transmission in 2015 and 2017 you will see that in july 2015 the
stock price stood at 27.6 rupees and by 2017 the value shot up to 126 rupees so 100 crores
invested in adani transmission in 2015 would be worth at least 400 crores in 2017 and hence
adani property's investment had been appreciated because of which they could benefit from
this transaction so this way the money stays within the company and when needed adani
properties could sell off its take and use the appreciation to carry out their construction projects
secondly between 2013 and 2018 adhani power was struggling with cash flow this was because
when the power project wasbuilt in mundra it was expected to get cheap supply of coal from
indonesia but when indonesia raised the price of its exported coal adani power mudra claimed
that its cost of coal had risen so much that it could no longer supply power at original rates so
during this period the company's annual report shows several instances where adani
enterprises made loans to adani power directly and it also gave out loans indirectly through
subsidies like adani infra india or kutch power generation similarly adani transmissions financial
statements for2014-15 show that it borrowed 2794.24 crores by pledging all movable and
immobile assets of two transmission lines and almost half of this money that it borrowed that is
about one thousand two twenty two point nine seven crores went as a loan to another listed
company adani enterprises similarly from 2014 to 18 adhani transmission got money as loans
and equity from adani enterprises and its subsidiaries in 2014.transmission repaid a part of
these loans in the same year but also bought shares in another group company and set up two
subsidiaries then adani transmission repaid old loans and borrowed fresh from adani ports and
sec so you see this entire complexity is a permutation and combination of just three moves
buying equity in group company to generate cash flow in the future using another group
company's loan eligibility to pass it on to another group company and lastly to direct cash flow
to a troubled company as and when needed andwhen this method is applied for seven
companies spanning seven different industries having thousands of crores of investments you
will see the answer to the incredible rise and expansion of the adhani group and you know what
guys this master plan of cash flow creates a super powerful virtuous cycle whereby when an
adani company wants to contest for a tender they are able to easily raise funds after raising
funds when they build a huge infra project every single new channel media house screams out
the progress of the idhaanis and this inturn boosts investor confidence and more people go on
to invest in adani stock so again when the price of these stocks go up they are able to pledge
the value of the stock to get loans which again helps them bag huge government projects now
although this looks risky to me what we cannot deny is the sheer genius of how intricate and
mind-boggling this entire process is because what i showed you are still an oversimplified
version of the transactions so what goes on every single day in the finance department ofthe
adani group is a calculation that's probably only meant for the genius to understand this is the
story of the incredible rise of the adanis and this brings me to the last part of the episode and
that are the study materials to help you understand this debt strategy of the adhani is better
meanwhile if you're someone who wants to take business related classes check out the classes
on skillshare on the link in the description and get a 30 off moving on to the study materials the
first thing i'm attaching is a scrollarticle that will give you an in-depth idea about how the
intricate financial framework of the adani group works secondly i am attaching a wall street
mojo article that will help you understand the concept of pledged shares in depth and lastly if
you're fascinated by the growth of the adani group and if you want to look at the reasons
behind their acquisition do check out our video on why adani's bought ambuja and acc and
you'll be able to understand what is the strategy that goes behind those acquisitions that's all
from my side oftoday guys if you learned something available please make sure to hit the like
button in order to make youtube bubba happy and for more such insightful business and
political case studies please subscribe to our channel thank you so much for watching i will see
you in the next one bye bye [Music] you

The video explains the rapid expansion of the Adani Group, which has become India's
largest private port operator, coal miner, power producer, city gas distributor, and edible
oil importer in the last 10 years. The company has also aggressively expanded into
renewable energy, media, and airports. Despite not having a highly profitable business,
Adani has managed to gather a debt of 2.2 trillion rupees to fund its acquisitions. The
video discusses Adani's debt strategy and how the company is able to obtain such heavy
loans to buy many companies. The video also promotes Skillshare, an online learning
community.
Summarize the following. Title: Adani vs Hindenburg - is Hindenburg lying? Adani
Trilogy Part 1 | Abhi and Niyu - YouTube Transcript: Adani India's most controversial
person Whatever is said about him It becomes a political statement Because who
supports Adani They support Modiji And who is against Adani They are against Modiji
as well Today, this is the truth everyone On 24th January 2023 A company named
Hindenburg published a lengthy report to destroy Adani Group This is the business of
this research company First, they target a company And then take a short position on it
How much the market value of that company falls That is the profit which this company
earnsThis is our Adani trilogy Where we will answer 3 questions In today's video, we will
see that Is the Hindenburg research correct? Or else they just want to spread fake news
and earn profit out of it I am a Chartered Accountant And I don't do my analysis without
going through companies financial statements from start to end So I read all the claims
of Hindenburg Read Adani's 400 page response And also read all Adani company's
finiancials And with the help of numbers and facts came to this video's conclusionWe
will expose all of it in this video Doing all this work requires time and efforts too If you
feel that our efforts are worth it Then please hit the subscribe button This is free for you,
but it helps us a lot Chapter 1: What does the Hindenburg report say? In this report,
Hindenburg has raised 6 big points Out of which some points are valid, Some are
controversial and Some are so non-sensical, that I think some intern has written it who
cleared his exam after many failed attempts Because they have such huge gaps in
logicIn Chapter 2, we will divide these 6 points in 3 parts Valid, Controversial and
Nonsense Point no. 01 Adani violates SEBI's rules Holds shares more than the limit SEBI
says that in a public company at least 25% holding must be public Suppose we initiate
an IPO of "Abhi and Niyu" Then we as founders and our promoters can't hold more than
75% of the company minimum 25% must be public Report says that Adani is playing a
game In his company, almost 75% is owned by him and his promoters And this much of
the remainingare been held through shell companies Point no. 02 Ketan Parekh had
fooled the stock market In 2003, SEBI banned him for 14 years And for 14 years, he was
banned from trading in stock market With the help of companies linked to Ketan Parekh
Adani has increased the prices of his shares This is what Hindenburg says Point no.03
Adani does a lot of foul playing Adani has 7 listed entities They have 578 subsidiaries
And it has 6025 related party transactions Hindenburg says that Adani Group doesn't
show some transactions And some transactions which it shows it doesn't have any basis
or value Point no. 04 The report says that Adani is the factory of scams Their CFO's
change like trending reels Such a big company's audit is done by a small company
having 11 employees This company is so small that it's office rent is just Rs. 32000/-
Point no. 05 There are many different charges on Adani and the central agencies
investigate it But due to some miracle Adani gets out of all this Point no. 06 Research
houses don't research on Adani Mutual Funds don't invest in Adani Group Which
means, something's fishy These are so big claims, that it seems like this is not "Adani" It
is "Laxmi Chit Fund" But how much of it is true Chapter 2: Is Hindenburg lying? In short,
no they are not lying But they are exaggerating some pointsTheir understanding of
Indian Accounting Standards is equal to The understanding of Civil Engineering students
about girls Let's divide major claims of this report into 3 sections Red are concerning
Valid claims which really need to be investigated Yellow mean Contentious claims Which
has some ambiguity Our laws and our corporate governance Lack some clarity There are
loopholes, and advantages of this are taken by companies like Adani And Green means
stupid claims Firstly, let's talk about those pointsthat make no sense Hindenburg's
founder says that he likes to research But if he applies in our company for researching
with Abhi and Niyu Then we will kick him out Why? Because his strategy is simple He
has to reach a conclusion And to reach that conclusion He takes any path Their
conclusion comes first And their research comes later Let's understand through an
example They wanted to prove that few analysts research about Adani's companies And
to prove this they took one Adani company They saw how many people haveresearched
about them And started finding a company of the same size which has been researched
and analysed by other companies Let's look at their report itself Adani Green has been
covered by 1 Analyst And Bajaj Finance has been covered by 33 Analysts Adani Ports has
been covered by 22 Analysts And Mahindra & Mahindra is covered by 48 Analysts It
looks like Adani is not being covered by analysts Investment Bankers are not interested
in them Which means there is something fishy But, if they wanted to prove thisThen
they must compare it with a company working in the same sector If one compares it
with a company in a different sector Then how will the apples to apples comparison
happen Adani Green is a renewable energy company And Bajaj Finance is a finance
company Adani Ports operate ports Mahindra and Mahindra makes automobiles It is
like comparing Rohit Sharma with Ussain Bolt And watching who runs fast If Ussain Bolt
can run so fast Then why can't Rohit Sharma Hindenburg assumes that proper
investigation is not done on Adani40 other companies along with Adani were
investigated for inflating coal's value But the investigative agencies here sent letters of
request to foreign countries to get information But the court just said that you don't
have the authority to ask for information from other countries And on this basis the case
was thown out On one side, Hindenburg blames Adani that To audit their accounts they
hire a small company And on the other hand, the PAN card details of its partners are
publicly exposed by them No matter whatpublicly exposing PAN card details of anyone
is a breach of privacy PAN card is a sensitive information which can be used for scams
This was done only to prove that These auditors are so young How will they know how
to audit? Well ICAI has given them the degree So is Hindenburg also questioning the CA
institute? Having only 11 employees or paying less office rent doesn't indicate that the
company is fraudulent or is helping in hiding a scam Because in the history of Indian
scams many big audit firms helpedin covering up the scams So despite having a big
financial company scams can be covered up This shows that Hindenburg researchers
have very less knowledge of Indian Accounting Standards and Procedures They have a
disease of jumping on conclusions first Like our teachers use to say that for 8 marks
question in exam if you write a lengthy answer you will get more marks Then we repeat
the same point again and again This also seems like it Now come to the ambigous
points Report says that Adani is rolling its moneyin their own companies and hiding its
losses Here we need to have a look at the Indian Accounting Standards Every company
has to follow some standards And (IND AS) 24 defines related party transactions Let's
take an example of a reputed company TATA is a conglomerate It works in different
sectors Suppose if TATA Power wants to make a software And if it goes to TCS and pays
them Then this is a related party transaction Now the question is Is this illegal? Not at all
But it is important to disclose Why is it important?Just think, if 80 to 90% of TCS's
business is coming from TATA companies only Then as a investor, as a bank, as a
regulator you must know that this money is rolling in the same company It may happen,
that you are an investor of TCS And not of TATA Power If TATA Power faces some
problems tomorrow Then its impact is going to happen on TCS Because TCS is
overdependent on TATA companies only Disclosures are important and that's the point
Let's come to Adani's case Vinod Adani is Gautam Adani's brotherVinod Adani started a
company named Krunal Trade and Investment They gave a real estate company named
Sun Born in 2009 a loan of Rs. 1171 crores In 2020, this company gave Adani Enterprises
a loan of Rs. 984 crores And Adani had disclosed that this is a related party transaction
Hindenburg's report says that they must also show Krunal Trade and Investments as a
related party Whereas between Adani and Krunal Traders there is no direct transaction
Hindenburg assumes that the relation between Krunal Traders and Adani Enterprisesis
mandatory to be shown But our Accounting Standards state that just because "Krunal
Trade and Investment" was started by his brother This doesn't mean that he
automatically becomes a related party Now, this comes in the Yellow part because firstly
our Accounting Standards need to change or the courts need to define What is a related
party? Now let's come to the most important section of the video Let's look at the
serious claims Amongst this, even if one claim is true Then Adani's scam is really a very
big scamPoint no. 05 comes in this part Those Adani's issues and scandals which has no
result yet Our system is slow Judiciary is not able to take action in time And we are very
lenient This is the truth We can't ignore this Quite frequently, cases against Adani are
dismissed due to lack of evidence Lack of evidence doesn't mean that the allegations
are false But the responsibility of finding the right evidence and presenting the case
correctly is of the authorities This is the biggest allegation And if true then a pattern is
visibleWhich is very dangerous for India Today it is Adani, tomorrow it can be someone
else Then comes Point no. 02 Links with Ketan Parekh and trying to manipulate its own
stocks SEBI had prosecuted Adani Group in the past They had links with Ketan Parekh
The SEBI order says that In 1999, Adani company sold their shares to Ketan Parekh And
Ketan Parekh did "Circular Trading" Price matching happens in National Stock Exchange
Usually what happens is if a share's price is Rs.50 Then the seller adds Rs. 50 as price
And the buyer also adds the same price Price and quantity is matched and And then the
orders are executed But in Circular Trading On purpose, instead of Rs. 50 Sell orders of
Rs. 60, Rs. 70, Rs. 80 are added And the same person from a different fake account also
places the buy order of Rs.80 And thousands of orders like these are placed in NSE
again and again The system thinks that if people are able to sell the share even at this
high price Then let's increase the share's price But who is actually increasing the price?
Ketan Parekh, who had artificially increased the prices of companies like Adani in the
past He had manipulated it Now from 2020 till date, let's look at how the prices of
Adani's company has increased This data is of 23rd January, before the Hindenburg
report 2300 %3300 % So much of price increase only in 2 years is very odd And Adani
has a history with Ketan Parekh And after knowing this, it seems that What they did in
1999 They have done the same thing now Of course this is pure speculation Because,
Hindenburg has no proof about this Adani is growing And that too exponentially Before
2014, Adani was the 600th richest man in the world And before this report came he
became the 3rd richest man How did this magic happen? Because of debt In the second
video, we will properly explain itAnd here comes the most biggest point which is been
ignored by everyone The biggest red flag When a company takes a loan Then its
promoters can pledge their shares The way you can mortgage your gold And you can
take loans The same way promoters can pledge their shares and take loans This is
known as "Pledging of Shares" Here, suppose you want a 1000 crore loan Then shares of
minimum 2000 crore must be mortgaged Which means, you get the loan of only 50%
value of your share And that's the game If Adani has manipulated the sharesAnd has
increased the prices artificially Then the banks which have given loans to Adani They
have no value They just have inflated value Of course that is only if Adani's shares fall If
share prices don't fall Then banks don't care about Adani's value The only thing which
matters to them is What is the value of Adani's shares Chapter 3: Conclusion Today's
video is important, because It helps us understand the truth and also the baseless points
around this topic Through this we also get to knowthe flaws in the systems of India And
that should be the biggest take away from this In the coming videos We will talk about
Adani's growth And what should India do ab
The video "Adani vs Hindenburg - is Hindenburg lying? Adani Trilogy Part 1" by Abhi
and Niyu on YouTube discusses the controversial report published by Hindenburg on
Adani Group. The video divides the claims made by Hindenburg into valid, controversial,
and nonsensical. The report accuses Adani Group of violating SEBI's rules, manipulating
stock prices, and engaging in fraudulent activities. While the video concludes that
Hindenburg is not lying, it suggests that the company is exaggerating some of its claims
and has a poor understanding of Indian Accounting Standards. The video also argues
that Hindenburg's comparison of Adani Group with other companies is flawed and that
the report makes some silly claims.

Title: Adani has TWO SIDES | Adani vs Hindenburg story continues | Abhi and Niyu -
YouTube Transcript: Is Gautam Adani a hero or villain? Will Adani be over after the
Hindenburg report? And will this man drown India? If you have the same questions Then
this video is for you Hindenburg badly criticized Adani's share prices Showed hundreds
of flaws in their accounting But, is Adani's business genuine? Hindenburg is silent on
that Today, we have to see how powerful is Adani's business This is Adani Trilogy's part
2 Adani's whole business is made of 3 pillars If all the 3 pillars are strong Then no report
can damage AdaniBut even if one pillar trembles Then it is worrisome Video is very
interesting and There are many such points which are not touched by any other creators
Which will help you understand the story from both sides If you learnt anything new
from the video Then share it with your friends We make complicated economic concepts
simpler for you Explain it to you like a friend If you want to support us Please don't
forget to subscribe the channel It may be a small thing for you But it helps us a lot
Chapter 1: How big is Adani?When we see Adani's net-worth on a graph Then it is clear
that this is not a joke There are some dark secrets behind this Last year, not only of India
but Gautam Adani became Asia's richest person But, how? Adani is big, everyone knows
that But exactly how big? Adani has 7 listed companies Adani's funda is simple In a
developing country, invest in all those sectors which are important for its development
And increase your dominance This is Adani's first pillar Investment in India's futureBy
2025, India will be the 3rd largest country with air traffic Adani knows this Today, Adani
is the India's largest airport operator Operation, management & development of 7
airports is handled by Adani Interesting part is that Adani got into the airport business
only 3 years ago And today, 1/3rd of air traffic goes through some or the other airport
handled by Adani 1/4th i.e.25% of cargo coming in India goes through a port owned by
Adani Adani is India's largest coal trader And also the largest edible oil importer Do you
know what this means When we talk about airports or cargo ports Then Adani's biggest
rival is not Tata or Birla Instead its the Indian Govt. itself And that's why in September
2022 His wealth had reached 141 billion dollars And before the Hindenburg report It
was 124 billion dollars After Hindenburg, it has dropped to $50 billion Let's see his
journey's timeline And come to a point, after whichHis wealth got a nitro boost In 1978,
Gautam Adani started working during his teenage He left his college education in the
middle And he came to Mumbai Here he used to sort diamonds In 1981, he came back
to Ahmedabad His brother had purchased a plastic factory And Gautam Adani started
helping him But they needed such PVC material And IPCL was not able to deliver it on
time So in 1988, Gautam Adani started importing such plastic granules by himself And
not only for his business But he also started supplying it to othersThis business was
started only with 5 lakhs capital And in the next 4 years, his imports grew by 400% In
1994, Adani Exports was listed in the stock market Business was going on nicely But
losses also increased Because all the import was happening through Kandla or Mumbai
port The next step was to have your own port Mundra Port Situation was also ideal In
1991, economic liberalisation happened in India And India was finding private
partnership in ports Adani won this contract in 1995 In his infrastrusture journeyThis was
the 1st biggest win Simultaneously, he started developing connections with politicians
of Gujarat By 2000, the total turn over of all his companies crossed 3000 crores But his
biggest investment came in 2002 When riots happenned in Gujarat And CII stepped
back from investing in Gujarat Then Adani invested 1500 crores in Gujarat On one side,
Gujarat continued growing Which gave India a new Prime Minister And simultaneously
Adani also grew Power plants Mines Airports Solar power Edible Oils Media He tried his
hand in different fieldsWhy did I tell you this whole story Not to emotionally blackmail
you But to tell you how this extra ordinary growth happened Chapter 2: India's growth
secret Did such thing ever happened with you? That you went into the mall to buy one
jeans And after 4 hours, came home with 5 shopping bags If yes, then you have a hobby
of shopping Similarly, Adani has a hobby Hobby of buying companies From past 10
years, Adani has bought these many companies Why? Because if one wants to enter into
a new business Then it takes time to become an expert thereGrowth is slow, and slowly
One becomes a competitor in that business This is known as organic method of growth
But better than this is To buy a company which is successful in that sector Then their
assets are yours Their market share is yours And their expertise is also yours This is
known as inorganic method of growth This is the fastest way of growth Which Adani's
favourite But there is a small problem in this That it requires money A lot of money And
from where will this money come? From debt Debt is Adani's second pillarPlus, if you
look at Adani's projects Ports, solar power plants, mines All of them are capital intensive
Which means, first you have to spend a lot of money You have to develop the
infrastructure And as time passes Money starts flowing in From where will this capital
come? Through debt Taking a loan to buy companies is not an uncommon thing Lets
take an example Elon Musk bought Twitter in 44 billion dollars Though, Elon Musk has a
lot of money But he is not going to buy twitter through his own money He took a loanA
loan of 13 billion dollars And he has to pay 1.5 billion as interest every year If Elon Musk
is able to make twitter profitable Then it is fine Otherwise he would be bankrupt
Because the funda is simple Through debt if you buy something which is profitable
Which means an asset Then it is a good debt But through debt if you buy something
which is not profitable, then? Last year, a company named CreditSights flagged off the
high debt of Adani Group Market participants knew this that Adani group has taken a
lot of loanBecause growing so fast without debt is not possible Total debt of Adani
Group is 2.2 lakh crores This number sounds very high In fact one report claimed
Adani's debt to be 1% of India's economy Now, let's look into their financials and see
which company has taken how much of debt Let's have a look at this chart Adani Green
has taken the highest debt That is 52000 crores Number 2 is Adani Power at 48000
crores And Number 3 is Adani Ports at 45000 crores After looking at this table we come
to knowThat Adani is going to repay 51000 crore debt This year (2022-23) itself And the
rest over the long term If you read news reports Then Adani Group has borrowed
around 80000 crore in debt We can see that 51000 crores has come through bonds and
debentures Majority of Adani debt is secured debt Which means against this loan he has
mortgaged his assets or shares If the loan is not paid in time Then banks can sell these
assets and recover its money So when Hindenburg says that Adani is pulling the biggest
con in corporate historySo if we look at it, he is not scamming the banks The loans and
bonds which are unsecured Yes, their funds are at risk But this thing is not limited to
Adani Group only In 2020, a mutual fund named Franklin Templeton Closed 6 schemes
of them Because they had invested in some risky bonds Unsecured investments are risky
It may be any company After understanding this whole story let's come back to
Hindenburg Everyone is making noise under Hindenburg's name But the real problem is
that Hindenburg's allegationswere not tackled well by Adani Hindenburg's report came
recently But those people who work in finance Those who take their salary to study
companies like Adani Hindenburg's report does not matter to them at all Half the things
were known to them already How? Through Adani's financial statements There is risk in
Adani Group Even after knowing this, banks gave them money Why? The answer is -
Connections Chapter 3: Adani and the Govt's love story Govt.is Adani's biggest client
Because he is making many projects for the Govt. And the usual understanding is this
That the money coming from the Govt. can be late But can never be defaulted This gives
an assurance to banks Our favourite Rahul Gandhi Showed these photos in Parliament
Where Narendra Modiji is seen with Adani Good amount of drama happened on this
And the time to discuss important things was over But there are some more images,
which are important for you to see Like these, where Adani is seen with Rahul Gandhi's
brother in lawOr these images which are with West Bengal's CM If we search a little,
then with every politician we can find some image of a big businessman One photo
doesn't prove anything But yes, what is happening in India's politics To understand that,
You don't have to look at any photo Just think If an industry gives money to the Govt.for
its benefit Expects changes in their policy Gives favours to them And most importantly
expects favours from them Then you will call such a system, corrupt But in United States
of America, it is completely legal And it has a good name too - "Lobbying" Lobbying
means to influence the Govt. America's constitution allows lobbying So it is legal in
America But how ethical it is? How do companies use this right? The funda is simple
Election needs campaigning Candidate may be good or bad If the campaigning is not
done rightthen the election is a fail These lobbyists fund the elections of candidates And
once their candidate wins the elections They get favourable laws passed for their
industry opensecrets.org is a website where you can see which companies and which
groups are spending how much money on lobbying Companies like Meta and Amazon
are also included in this To get favourable laws from the Govt.These companies spend
millions of dollars every year There are Oligarchs in Russia Rich business families which
have maintained their power in business and also in politics Lobbying happens in
America, And it is widely accepted as well A similar system exists in India too
Traditionally political parties used to fund their campaigns only through two ways
Membership fees and private donations But, the "Representation of People Act" states
That any political party can accept donations from any corporateThis act was passed in
1951 The interesting part is that our Income Tax Act under section 80 GGB for donations
given to political parties provides tax deductions as well Which means if you donate to
political parties you have to pay less income tax Due to such loopholes Even after
demonetisation no politician got affected much The point being India and America too
has such systemic flaws Which create a link between political parties and corporates Due
to which frequently, different political parties work in favourof different companies
Once, Atal Bihari Vajpayee had said to a parliamentary committee that every legislator
starts his career with a lie as to how much he spent in his elections This is a systemic
problem And in this matter nobody is clean From past 15 years different political parties
took 14651 crore rupees as anonymous donations Let's come back to Adani It is said
that the Govt.has no business in doing business But many times for public good the
Govt. has to do business Here, instead of taking the whole burden The Govt. does
partnerships with private players So that the risk is distributed It is known as PPP (Public
Private Partnership) In 2019, the Govt.issued tenders through PPP for operation of a few
airports Airport operators submitted their bids And Adani got 6 airport contracts The
point to be noted is this That they won these bids surpassing GMR, which has more
experience in airport operations Department of Economic Affairs had given a suggestion
to the Govt. at this time That operating and developing an airport is a capital intensive
work Basically, it requires MONEY So, don't give more than 2 contracts to one player
NITI AAYOG had also supported this But Adani's bids were so aggressiveThat the Govt.
awarded the contracts to them And for the next 50 yrs, they were given to operate all
these airports The important question is - why? Answer is clearly visible in their bids The
thing is Whichever bidder finally gets this contract He has to give a per passenger fee to
AAI (Airports Authority of India) Which means, if one passenger passes through that
airport then Rs.X is to be given to AAI Look at this chart There's a lot of difference
between the bids of Adani
The video discusses the controversy surrounding Gautam Adani and Hindenburg's
report criticizing Adani's share prices and accounting. The video examines Adani's three
pillars of business, investment in India's future, debt, and diversification through
acquisitions. The video provides a timeline of Adani's growth and explains the organic
and inorganic methods of growth. The video concludes that Adani's business is strong
and that even if one pillar trembles, it is worrisome.

Title: Adani VS Hindenburg has a hidden message for India | Abhi and Niyu -
YouTube Transcript: What if Adani fails? India's 7 big airports will fail 13 ports will stop
working Who will provide electricity in Mumbai? We don't know What will happen to
our solar power? We don't know Adani cannot fail Because Adani is too big to fail If
Adani fails then It will impact the whole of India And there will be a full stop on India's
progress for the next 10 years Adani's success is linked with India's success But do you
think, this is correct? Do you think, we must be so dependent on one business
houseAnd if one business house is becoming so big Then to avoid the malpractices
there What should we do? This is the last video, from our Adani Trilogy And here we will
criticise India But constructively And ask a question to ourselves That for India's bright
future What can we do? One thing before starting the video For making these videos
We take a lot of efforts From past 2 weeks, we didn't even sleep properly Because we
didn't want to do some shallow research by going through just one report But we
wanted to make a special video for youWhere we can discuss the solutions as well If you
think our efforts are worth it Then don't forget to subscribe the channel Chapter 1:
Adani's big game Adani's business is based on 3 pillars India's growth A lot of debt And
political connections We came to know about these 3 pillars in the second video of this
trilogy But, why is Adani making these pillars? Adani's only one objective is to become
India's biggest integrated player And offer solutions to corporates & governments How
will that happen?Through vertical and horizontal integration What does it mean? When
one company in its own field acquires assets of other competing companies then it is
known as Horizontal Integration Today, through Adani's ports India's 1/3rd cargo
transport happens Adani has so many ports So naturally their market share is quite high
Vertical Integration means, to control all steps of production of a business Basically,
become your own manufacturer your own supplier your own distributor Purchase from
yourself And sell it to yourself onlyLet's take Adani Power's example Adani wants to
generate power So he has his own coal mines He has his own ports for transporting coal
The transmission is also done by himself India will become independent or not, we don't
know But, Adani has become independent Then what's the problem? The obvious
problem is that it requires a lot of money And loans have to be taken But, apart from
this There is one more problem It is said that Don't keep all of your eggs in the same
basket Today, Adani is too big to failIndia's so many important projects Ports, Airports,
Solar Power plants, Mines are operated by Adani So criticizing Adani is like an attack on
India India's success key must not go in the hands of just one corporate house And for
this, we have some laws in our country Competition Act 2002, has put some restrictions
as to which combinations will negatively impact free trade Today because so many
projects are with Adani Adani's market share is very big One monopoly is dangerous for
customers like usBecause then whatever price Adani quotes We have to buy things on
that price only My house gets electricity from Adani Power Now, if all over Mumbai we
didn't have any other electricity provider Then who will stop Adani from increasing its
rates Today, if I have frequent power cuts at my place Then I can change my distributor
As a consumer, I have an option Tomorrow, this option may not exist This is a simple
example But through this you will understand Why fair trade is important When we did
liberalisation in 1991We reduced restrictions in many sectors This reduced Govt. control
And businesses got an opportunity to grow This was important for India's future But, for
ambitious businesses like Adani It also created a Loophole A loophole of monopoly Just
think I live in Mumbai and if I want to catch a flight Then I have to go to Mumbai Airport
Mumbai Airport is under Adani's control Do I have an option? No Such things happen in
bigger projects That's why we need to be careful Chapter 2: Siphoning off money If you
want to travel from one city to otherAnd if you google it, you will see two routes One is
a long cut, which goes through a high way But has a toll in between And the other is a
shortcut Which is a criss cross road But doesn't has a toll in between Most of the jugadu
Indians Will prefer the second route Similarly, for a big company this toll means taxes
Which is very high in India So these companies take a shortcut Hindenburg report says
that Adani keeps rolling money within his ventures According to law, related party
transactions are not illegalThe important thing is to a follow a simple funda FMV = Fair
Market Value Suppose Adani Ports gets refined oil from Adani Wilmar But it takes 50%
discount on even the wholesale price Then this is not a fair market value All these
companies may have the name Adani But, in the eyes of law these companies are
different entities You may think like this That this is not a family but a society Where,
different people live and work Now, due to relations Giving some discount to each other
is common But if I am making some videofor my father's birthday And I don't charge
money for that Then that is different and it won't work here Why won't it work? Because
from where does this discount come? From the profits of some company When one
Adani's company gives a discount to Adani's other company At that time, It reduces its
profit Companies can misuse this To save its tax To take out its money from a profitable
company and investing it in a loss making company This is the second loohole of the
system Look at the loan figures of AdaniHere in Adani Power and Adani enterprises so
much of loan is shown through a related party This can be a way to hide profit Or else
to move money But nobody can be sure In Adani Erterprises's financials we can see
which subsidiary has taken how much of loan But who gave them this loan is not visible
Then this question is very valid From where did this money come? In Hindenburg's
report You must have heard this a lot Shell company What is a shell company? Basically,
a shell company is a company Which doesn't do any activityIt is just a registered
company It may not even have any employees But money is moved through its
accounts Big corporations use shell companies for evading taxes How? First they find a
country where the taxes are lower than India or there is no tax Then they establish a
shell company there They send funds to that company from India Mostly, it is done
through purchase transactions These funds are given to other companies based in
Mauritius as a loan And from Mauritius this money comes to India But as Foreign Direct
InvestmentA lot of money comes to India from Mauritius Most of it in the form of
Foreign Direct Investment or FDI Which means, when foreign investment is made
directly in some company's shares or bonds Then it is known as Foreign Direct
Investment Because that investment has happened directly in a company This same
money is moved again and again for evading taxes When an Indian company does a
payment to a foreign company Then it claims it as an expense And shows that its profits
are low Then on this income, that foreign companyhas to pay less tax in comparison to
India Then the same funds go to Mauritius But as a loan Same funds come to India as
FDI Again there is no tax here too This whole process is called Round Tripping Just think,
you have to go to Europe for honeymoon So you can take a flight from here to
Germany From Germany you can go to France And you can come to India from France
Similarly money is moved throughout the world Again, is it illegal? No From such tax
heaven countries India keeps getting such investment And Mauritius is always in the top
threeIn 2017-18, from Mauritius to India 13.2 billion dollars had come India is the
world's 5th largest economy And Mauritius is 124th Still which are these businesses
which are funding India? In 2021, even during the pandemic Mauritius invested 5 billion
dollars in India Why does India not do something about it? As a country, we do DTAA
with many other countries DTAA means, Double Tax Avoidance Agreement Which
means on the same income, tax won't be charged twice For example, if you go to work
in AmericaAnd started working in some company there And started earning in dollars
Then you will pay tax in America & not in India This is a loophole And even after
knowing about this The Govt. is not able to take any action Chapter 3: India vs Shell
companies Taking shortcuts is not illegal But, it is a loss for tolling booths To take action
against shell companies The big problem is this that Different companies have different
laws And in which country a shell company is based That company follows laws of that
country onlyBefore 2016, Swiss bank didn't share its account holders details with other
Governments Because... Its their wish So, it became a hot spot for black money Similarly,
shell companies have become a problem for India Because Cyprus British Virgin Islands
and countries like Mauritius are not transparent They don't share details Keep
company's true ownership secret Because in a way, these countries want Money from
India must come in their country May be less But they are able to charge tax on this
money Here, our foreign policy needs to be strongThrough this Adani case We need to
make changes in India's rules and policies So that, not only Adani No one else can
benefit from these loopholes Chapter 4: Then what can we do? No country is perfect It
needs to be perfected And when cases like Adani - Hindenburg come up It gives us an
opportunity To go through Indian laws in depth An opportunity to understand how
many holes we have in our ship Which can become weak spots tomorrow And drown
our ship completely You may be left wing or right wing Everyone wants just this
thatIndia doesn't become a beggar, right? Let's come to video's most important point
And see where do we need to improve Number 1 - Disclosures Hindenburg report says
that Adani doesn't disclose its related parties properly And Adani says that he does
everything which is legally required The truth is that there is a loophole in our
accounting standard which is exploited by Adani And not only Adani, many companies
do it SEBI has said that family businesses exploit this loophole SEBI started taking action
on this in 2019And made rules more strict in 2021 As these regulations become stricter,
regulators can take action more early Number 2 - Shell company's rules Stopping shell
companies And ultimately who benefits from these shell companies Proving this
becomes very difficult But there is some good news In the case of Adani Minister of
Mauritius has said that They will fully support SEBI Whatever documents are required
will be submitted and disclosed This is a good news for India Because this can be used
for tracking other shell companiesNot only Adani's shell companies This will disclose
other shell companies too India's needs to go through its tax agreements So that if they
need any improvements Then those changes are made Number 3 - Fair competition
Today, Adani comes in the too big to fail category So, tomorrow if Adani isn't able to
pay its loans Then the Govt.has to use taxpayers money to save him We don't have an
option The correct way is to maintain competition in the market And no player becomes
so big That due to his loss, India has to face losses At present Adani is going in the
direction of a complete monopoly But before becoming absolute monopoly We need to
think about this Number 4 - Stock price manipulation What was Adani's relation with
Ketan Parekh in the past? We have explained this in our first video But, SEBI had banned
Ketan Parekh till 2017 only Why so?Can't we introduce lifetime ban? Stock price
manipulation is a very serious allegation by Hindenburg's report And this must be
investigated Number 5 - Corporate Governance The last point is very important -
Corporate Governance And we all must keep an eye on it Because if SEBI saw many
malpractices in Adani's business And if stocks are delisted Then Adani will seriously be
blown up And recovering from that will be very difficult for Adani and India And more
than them It will be very difficult for their share holdersBecause they won't have the
market to sell the shares Many businesses in India are family run Where many important
roles are assigned within the family only Usually we see once the businesses become big
Their malpractices are ignored Actually the situation must be the opposite of it In India,
there are rules for corporate go
The video discusses the impact of Adani's potential failure on India's major
infrastructure, including airports, ports, and power supply. Adani's business strategy
involves vertical and horizontal integration, which has helped the company become
India's biggest integrated player. However, this strategy also poses a risk to India's
future as Adani's success is linked with the country's progress. The video argues that the
government needs to ensure fair competition, prevent monopoly, and encourage free
trade. The video also highlights Adani's related party transactions and argues that such
practices can reduce the company's profits and impact the economy. Overall, the video
suggests that India needs to be careful in allowing one corporate house to control
critical infrastructure and calls for constructive criticism and discussion on how to secure
India's future.