: Hindenburgs Adani Report Made Simple; Fallout of Exposé #WorldNEWSAll Adani Group is no different from a small family-owned business and its modus operandi is not to difficult to understand. The

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Hindenburgs Adani Report Made Simple; Fallout of Exposé #WorldNEWSAll
Adani Group is no different from a small family-owned business and its modus operandi is not to difficult to understand.
The Hindenburg Research report on the Adani empire makes for riveting reading, albeit takes about an hour at least.
While my friends have shared the report, very few seem to have read/understood the implications. I am no stock exchange person but was able to logically distill some facts from this voluminous report as follow:
1. Adani is no different from a small family-owned business. While Gautam bhai is the ultimate arbiter, his family moonlights as outsourced agents. The longer your criminal history, particularly criss-crossing the globe, the faster are promotion prospects in this group Chinese or Gujarati swindlers do not matter for they make excellent partners in bed.
2. The modus operandi is not to difficult to understand. Take an initial borrowed corpus from a willing lender like SBI and then rotate it among group companies, via LLPs and a network of shadowy private companies. Then shift these funds from company to company pushing up the cash balance of each at different time (within the same financial year), pushing up stock prices and then seeking more borrowings, particularly from SBI and other institutional investors.
3. As for group incomes, these too are siphoned into the network of private companies, and reinvested in listed group companies, yet again to shore tattered P&L accounts, mired in debt. (2) above + incomes together dress the P&L account and create an illusion of well-being of this group in the mind of an investor. In turn, that helps in mopping funds from investors and banks without ever having to think of debt default. In other words, this is a giant Ponzi scheme, in which you rob Peter to pay Paul.
4. As for auditors for this enterprise, these are no different from articled clerks at 23-24 years of age. Getting a true and fair view from these fellows is a breeze. How very thoughtful!!
Gautam Adani
5. How does this Ponzi operate? Say, Adani Enterprises borrows 0 million from SBI. It then takes it on its own balance sheet. Then it redistributes the surplus to either group companies or its network of dubious companies. The proceeds are held in relatively small denominations (say, -15 million) and act as a reserve pool for transfer whenever a group entity needs infusion to boost its cash balance and stock price without exciting any suspicion from enforcement agencies in India or overseas.
6. It is not difficult to launder proceeds of crime in this process. Generating fictitious invoices, over for export and under for import is a breeze in the overseas jurisdictions where the network is located; the physical existence of saleable output is not even a must.

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