Why is the common man in India still not understanding that there is a lot fishy with Adanis company ?

Before arriving at this issue Why is the Common man not understanding that there is a need for investigation, 

lets first see what were the issues raised by Hindenburg in brief because am sure many must have not even read it but still supporting the Govt.

1. Key listed Adani companies have substantial debt and are over-leveraged.
2. Unconventional accounting practices to inflate its profits and understate its debt.
3. Gautam Adani’s oldest brother created a large number  of shell companies.
4. Five chief financial officers over the course of eight years. Appointing inexperienced Auditors.
5. Engaging in insider trading and tax evasion.
6. Engaging in large-scale deforestation, damaging fragile ecosystems.
7. Younger brother, accused by the Directorate of Revenue Intelligence (DRI) and was subsequently arrested twice .
8. Gautam Adani’s brother-in-law, Samir Vora, accused by the DRI in a diamond trading scam.
9. The Adani Group has previously been the focus of 4 major government fraud investigations .
10. Two-and-a-half years ago a court in Ahmedabad issued a gag order not to speak or write anything against the interests of the Adani Group.

For explanation of each point you can scroll down.

If even now one can not feel that Adanis should be investigated that lets be sure India is sure to be doomed BECAUSE CORRUPT DO NOT MAKE A NATION STRONG.

EXPLANATION .

One. Key listed Adani companies have substantial debt and are over-leveraged and its shares were pledged. Bombay Stock Exchange data shows the Adani Family Trust pledged stock as collateral across several of the listed companies.

Even The Securities and Exchange Board of India said over the weekend that it was aware of “unusual price movement in the stocks of a business conglomerate” and vowing to examine and take “appropriate” action “if any information comes to SEBI’s notice”. 

So, should this not be examined to plug this loop hole so that others do not resort to this.  For a layman its something like this ; you buy a car for Rs 30 lacs, and then take a loan of Rs 30 lacs by inflating its value to 60 lacs and pledging it as collateral. Had you not over valued it perhaps you would not have got so much of loan and if you are not able to pay back the loan , then even when the Bank auctions your car it won't even get 30 lacs. 

Should this not be examined.  Now the issue is should the Banks and the SEBI not investigated all this when Adanis were resorting to this practice.

Two. The report alleges that Adani Group has used unconventional accounting practices to inflate its profits and understate its debt. The report claims that the company has booked large amounts of revenue from subsidiaries and joint ventures, which are not consolidated in its financial statements, and that this provides a misleading picture of the company’s financial health and profitability. The subsidiary companies are not mentioned in the financial statements.

Three. Vinod Adani, Gautam Adani’s oldest brother has created a large number (38, by Hindenburg’s count) shell companies, based in Mauritius, and used them specifically for  stock parking / stock manipulation and laundering money through Adani’s private companies onto the listed companies’ balance sheets in order to maintain the appearance of Good financial health“,

Four. Report says Adani companies changed their chief financial officers (CFOs) frequently and that auditors used by the group are relatively unknown. It says Adani Enterprises has had five chief financial officers over the course of eight years, indicating potential accounting issues". The answer given by the adanis does not augur confidence; it said that the audit committee of each of the listed companies is composed entirely of independent directors, and auditors are appointed on their recommendation.

Then the questions arise ;

WHO ARE THE INDEPENDENT DIRECTORS and How Independent are they ?

Why did they employ inexperienced auditors to audit accounts of such a rich company and what benefits does it accrue when one appoints inexperience Auditors?

Now when one sees all these issues from ONE TO FOUR, one obviously finds a connection.  Should this not be examined or should all this be shoved under the carpet saying ; YEH DESH HIT MEY NAHIN HAI.

 Is it really in India’s interest to allow a company to inflate its value, fudge its accts and seek loans based on inflated values?

Five. It accuses Adani Group of engaging in insider trading and tax evasion. The report cites documents obtained from Indian government and regulatory agencies, which it claims support these allegations.

Now keeping in mind that Gautam Adanis samadhi Cyril Shroff is reportedly a part of the committee on corporate governance in SEBI i.e. The Securities and Exchange Board of India and is also the CEO of Adani ports and SEZ.

Should this issue not be investigated because many of us do not know How Insider trading would cause a harm to a common trader. Today we have 738 lac demat acct holders and many are indirectly involved in equity trading through SIPs in equity based MFs.

Should we allow our hard earned money be manipulated by crooks.

Six. The report also criticizes Adani Group for its environmental practices, accusing the company of engaging in large-scale deforestation, damaging fragile ecosystems, and polluting groundwater and air. The report claims that Adani Group has ignored the concerns of local communities and has not followed environmental regulations.

 Now this may appear to be trivial but it is not. Because We all know how big and small companies for their commercial benefits have flouted and are flouting the environmental rules and norms and causing harm. And it’s the common man who ultimately suffers because its his houses which get flooded, its he who does not get safe drinking water . for instance Builders in bangalore caused permanent damage to almost 50-60 lakes and the recent flooding was the result of this blatant violation. The same happened in uttrakhand. Should this not be investigated and adanis be compelled to follow environment norms. In Australia they could not start mining because of the same issues.

At the end of the report Hindenburg asked some VERY VERY IMPORTANT questions:

Seven . Gautam Adani’s younger brother, Rajesh Adani, was accused by the Directorate of Revenue Intelligence (DRI) of playing a central role in a diamond trading import/export scheme around 2004-2005. He was subsequently arrested twice over allegations of customs tax evasion, forging import documentation and illegal coal imports.

Given this kind of past record, why was he subsequently promoted to serve as Managing Director at the Adani Group?

Eight . Gautam Adani’s brother-in-law, Samir Vora, was accused by the DRI of being a ringleader of a diamond trading scam and of repeatedly making false statements to regulators.

Given his history, why was he subsequently promoted to Executive Director of the critical Adani Australia division?

Nine. The Adani Group has previously been the focus of 4 major government fraud investigations which have alleged money laundering, theft of taxpayer funds and corruption.

Ten. Now very important is the issue of Paranjoy Guha Thakurta, who was the editor of a very renowned Indian journal EPW – ECONOMIC AND POLITICAL WEEKLY .  whose name found prominent mention in the Hindenburg Research report  as this brought international glare on the standard of Indian probity in corporate governance.. Surpsingly, two-and-a-half years ago a court in Ahmedabad issued a gag order asking him not to speak or write anything that may go against the interests of the Adani Group. Do the courts behave like this. And the lawyers representing companies headed by Gautam Adani filed six defamation cases against him.

So, the recent happenings clealry indicate that You cannot silent people for ever, you may by hook or by crook force people to remain silent using coercive means  but in this INTERCONNECTED WORLD the voices will come from some where else and you will have no control over them.

If you do not act you will hurt country’s reputation and its business interests, as it has happened in last few days when FIIs have avoided Indian markets.

Let this be a lesson, transparency may appear to be a nuisance but at the end of the day it pays.

With our experience we all know Big fish in our country do have a tendency to manipulate the system.  

We have had numerous businessmen escaping after committing fraud and they have not returned,

Afterall, there are allegations which may or may not be true but we can arrive at the Conclusion only when these allegations are INVESTIGATED.

Decide for your self SHOULD THERE BE AN INVESTIGATION AGAINST THIS MAN or we should harm our nations interest by tarnishing the image of our Institutions.

Most of us have nothing to do with a Political a party nor with Adani but we have gone so far emotionally with current leadership that we find it difficult to look with in. 

Choice is yours Behave like Bhishmpitamah or like Sam i.e show Moral courage.