Company Profile

Adani Enterprises Limited is the flagship entity of the Adani Group, one of India’s largest
business conglomerates. The US$ 11 bn Group enjoys significant interests across resources
(coal mining and integrated coal management), logistics (ports and logistics, shipping and
rail), energy (power generation and transmission) and ancillary industries. Through these
businesses, the Adani Group is integrated to the core of the world’s largest democracy,
touching millions of lives.

Adani Enterprises is one of the fastest growing diversified conglomerates with business
interests across – Integrated Coal Management and mining, solar cells and module
manufacturing, agri-storage infrastructure and services as well as edible oils and food
products.

This business mix - business-to-business and business-to-consumer – is directed at enhancing

access to basic services (electricity through timely coal availability), creating a less polluted
world, delivering quality food grain and providing healthy cooking media. In doing so, the
Company contributes to create a better world.

Company Vision
To be a world class leader in businesses that enrich lives and contribute to nations in building
infrastructure through sustainable value creation.
Ratio Analysis
Turnover Ratios :
Inventory Turnover Ratio
Year 2018 2017 2016 2015 2014
Ratio 7.38 13.08 15.36 25.53 11.03

Source: https://www.moneycontrol.com/financials/adanienterprises/ratiosVI/AE13#AE13
Interpretation
Higher the ratio indicates efficient performance. From year 2014 – 2015 it shows a huge
increase in the ratio , which is good for the company but after that it was highly declined
compared to other years.
In year 2018 it has inventory turnover ratio of 7.38 which is very low , and it means that the
company may be holding too much inventory compared to its sales.

Fixed Asset Turnover Ratio

Year 2018 2017 2016 2015 2014
Ratio 61.97 53.07 56.60 65.95 52.26

Source: https://www.moneycontrol.com/financials/adanienterprises/ratiosVI/AE13#AE13
Interpretation
The fixed-asset turnover ratio measures a company’s ability to generate net sales from fixed
asset investments. A higher fixed asset turnover ratio shows that the company has been more
effective in using the investment in fixed assets to generate revenues.
From the table we can say that from year 2014 – 2015 the fixed asset is efficiently managed
but after the year 2015 it shows a decline in the ratio till the year 2017.But in spite of the
decline the company managed to control the ratio in the year 2018 which is good for the
company.
Leverage Ratio:
Return on Asset Ratio:

Year 2018 2017 2016 2015 2014

Ratio 1.27 1.51 3.44 1.79 -0.79

Interpretation
In the year 2014 the company was unable to efficiently manage its assets to generate earnings
since the ratio is negative. But from 2015 – 2016 it showed a huge improvement.
From 2017 – 2018 the ratios are satisfactory but not as good as in the year 2016 which has
the highest ratio of 3.44.

Common Size Statements

They are those statements in which items reported in the financial statements are converted
into percentage by taking some common base. In common size income statement, the net
sales are assumed to be 100% and other items are expressed as a percentage of sales.
Similarly in common size balance sheet the total assets or total liabilities are assumed to be
100% and other items of assets and liabilities are expressed as a percentage of this total .i.e.,
100% common size statements because each statement is reduced to the total of 100 and each
individual item is expressed as a percentage.

Common Size Balance Sheet

A company balance sheet that displays all items as percentages of a common base with a base of total
liabilities and total assets. This type of financial statement allows for easy analysis between
companies or between time periods of a company.

Balance Sheet of Adani Enterprises ------------------- in Rs. Cr. -------------------

Particulars Mar 18 Mar 17 Mar 16 Mar 15 Mar 14

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 109.98 109.98 109.98 109.98 109.98

Total Share Capital 109.98 109.98 109.98 109.98 109.98

Reserves and Surplus 3,798.42 3,657.20 3,450.32 10,168.08 9,924.29

Total Reserves and Surplus 3,798.42 3,657.20 3,450.32 10,168.08 9,924.29

Total Shareholders Funds 3,908.40 3,767.18 3,560.30 10,278.06 10,034.27

NON-CURRENT LIABILITIES

Long Term Borrowings 1,596.99 1,857.82 1,615.79 2,535.15 2,040.58

Other Long Term Liabilities 105.54 78.16 552.59 250.59 250.09

Long Term Provisions 17.99 16.36 9.12 5.69 6.11

Total Non-Current Liabilities 1,720.52 1,952.34 2,177.50 2,791.43 2,296.78

CURRENT LIABILITIES

Short Term Borrowings 4,971.34 4,905.40 4,416.23 2,635.20 3,973.50

Trade Payables 3,693.18 3,217.95 2,964.98 5,781.89 4,984.40

Other Current Liabilities 1,089.77 788.14 1,248.15 961.19 1,082.25

Short Term Provisions 27.45 27.27 30.02 193.69 185.88

Total Current Liabilities 9,781.74 8,938.76 8,659.38 9,571.97 10,226.03

Total Capital And Liabilities 15,410.66 14,658.28 14,397.18 22,641.46 22,557.08

ASSETS

NON-CURRENT ASSETS

Tangible Assets 623.61 511.96 429.22 874.24 906.64

Intangible Assets 629.79 650.05 654.07 23.43 17.33

Capital Work-In-Progress 413.90 621.60 851.15 270.37 254.86

Other Assets 9.37 9.37 0.00 0.00 0.00

Fixed Assets 1,676.67 1,792.98 1,934.44 1,168.04 1,178.83

Non-Current Investments 3,007.97 3,090.20 1,081.43 6,953.42 6,550.59

Deferred Tax Assets [Net] 214.01 246.57 127.67 88.05 111.15

Long Term Loans And Advances 18.69 87.75 789.79 1,201.65 4,221.07

Other Non-Current Assets 696.27 499.43 0.00 1.36 0.00

Total Non-Current Assets 5,613.61 5,716.93 3,933.33 9,412.52 12,061.64

CURRENT ASSETS

Current Investments 1.00 1.00 1.00 1.00 1.00

Inventories 1,294.42 594.56 530.38 584.92 1,068.51

Trade Receivables 2,635.37 2,923.44 2,641.97 3,794.76 3,113.02

Cash And Cash Equivalents 524.66 364.21 147.07 238.25 260.88

Short Term Loans And Advances 3,168.19 3,782.93 6,923.67 8,530.05 5,938.43

OtherCurrentAssets 2,173.41 1,275.21 219.76 79.96 113.60

Total Current Assets 9,797.05 8,941.35 10,463.85 13,228.94 10,495.44

Total Assets 15,410.66 14,658.28 14,397.18 22,641.46 22,557.08

Source : Dion Global Solutions Limited

 Current liabilities were continuously decreasing from the year 2014 till 2017 but in
the last year it has increased a bit.

CAPITAL STRUCTURE
The capital structure is how a firm finances its overall operations and growth by using different
sources of funds. Debt comes in the form of bond issues or long-term notes payable, while
equity is classified as common stock, preferred stock or retained earnings. Short-term
debt such as working capital requirements is also considered to be part of the capital structure.

Capital Structure - Adani Enterprises Ltd.

Period Instrument Authorized Capital Issued Capital -PAIDUP-

Capital (Rs.
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Cr)

2017 2018 Equity Share 485.9 110.0 1099810083 1.0 110.0

2016 2017 Equity Share 485.9 110.0 1099810083 1.0 110.0

2015 2016 Equity Share 485.9 110.0 1099810083 1.0 110.0

2014 2015 Equity Share 320.8 110.0 1099810083 1.0 110.0

2013 2014 Equity Share 320.8 110.0 1099810083 1.0 110.0

2012 2013 Equity Share 320.8 110.0 1099810083 1.0 110.0

Debt Equity Ratio of Adani Enterprises Ltd

Year 2018 2017 2016 2015 2014
Ratio 1.68 1.80 1.69 0.50 0.60
Source:
https://www.moneycontrol.com/financials/adanienterprises/balancesheetVI/AE13#AE13

Interpretation
In the year 2014 and 2015 the company is having debt equity ratio of 0.60 and 0.50 which is
less than 1 and it means that the company has more security to the creditors and the company
is financially stable. But from the year 2016 to 2018 the company has a debt equity ratio
greater than 1 which means the company can have benefit of trading but also at the same time
Debt servicing is burdeneous.
Debt Equity Ratio of Abans Enterprises Ltd (Competitor of Adani)
Year 2018 2017 2016 2015 2014
Ratio 0.33 0.30 0.31 0.09 0.11

Source: https://www.moneycontrol.com/financials/abansenterprises/ratios/MST03
Interpretation
In the past 5 years Abans Enterprises has Debt to Equity ratio less than 1 , which means that the
company has more security to the creditors and the company is financially stable.
Comparision between Adani Enterprises and Abans Enterprises
In the past 5 years Adani Enterprise’s Debt Equity ratio has increased from less than 1 to
greater than 1, and for Abans Enterprises it is less than 1 consistently. So according to the
data, Abans Enterprises is more stable than Adani Enterprises.

AUDITOR REPORT

To

The Members of Adani Enterprises

Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Adani
Enterprises Limited (“the Company”), which comprise the Balance Sheet as at 31st March,
2018, the Statement of Profit and Loss including Other Comprehensive Income, the
Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and
a summary of significant accounting policies and other explanatory information (herein after
referred to as “Standalone Ind AS Financial Statements”).
Management’s Responsibility for the Standalone Ind AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of
the Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these
Standalone Ind AS Financial Statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally
accepted in India, including the applicable Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the Standalone Ind
AS Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

Director Report
Mar 2018
Dear Shareholders,
The Directors are pleased to present the 26th Annual Report along with the audited financial
statements of your Company for the financial year ended on 31st March, 2018.
Financial Performance Summary
The summarised financial highlight is depicted below: (Rs. in Crores)

Consolidated Standalone
Particulars Results Results

2017-18 2016-17 2017-18 2016-17

FINANCIAL RESULTS
Total Revenue 37,984.37 37,342.62 10,166.42 8,466.49
Total Expenditure other than Financial Costs and Depreciation 34,982.07 34,679.13 8,923.72 7,208.39
Profit before Depreciation, Finance Costs and Tax 3,002.30 2,663.49 1,242.70 1,258.11
Finance Costs 1,306.02 1,257.31 666.35 781.80
Depreciation, Amortisation and Impairment Expense 814.57 315.46 87.41 78.86
Profit / (Loss) for the year before Exceptional Items and Tax 881.71 1090.72 488.94 397.45
Add / (Less) Exceptional Items (183.49) 26.95 (181.05) -
Profit / (Loss) for the year before Taxation 698.22 1,117.67 307.89 397.45
Total Tax Expenses 206.96 271.15 96.91 166.88
Net Profit / (Loss) for the year from Continuing Operations 491.26 846.52 210.98 230.57
Net profit / (Loss) for the year from Discontinuing Operations (113.93) (38.80) (13.95) (8.93)
Profit for the year 377.33 807.72 197.03 221.64
Add / (Less) Share in Joint Venture & Associates 216.87 117.53 - -
Net Profit / (Loss) after Joint Venture & Associates (A) 594.20 925.25 197.03 221.64
Add / (Less) Other Comprehensive Income (after tax) classified to Reserve
& Surplus (B) (5.07) (183) (2.87) 0.46
Add / (Less) Other Comprehensive Income (after tax) classified to Foreign
Currency Translation Reserve 57.62 (230.52) - -
Total Comprehensive Income for the year 842.56 692.90 194.16 222.10
Add / (Less) Share of Minority Interest (C) 163.17 62.37 - -
Net Profit / (Loss) for the year after Minority Interest (A B C) 752.30 985.79 194.16 222.10

APPROPRIATIONS
Net Profit / (Loss) for the year after Minority Interest (A B C) 752.30 985.79 194.16 222.10
Balance brought forward from previous year Profit / (Loss) 10,930.81 9,959.75 2,325.07 2,112.97
Add / (Less) : On account of Consolidation Adjustments 0.42 (4.73) - -
Amount available for appropriations 11,683.53 10,940.81 2,519.23 2,335.07

Less : Appropriations
Proposed Dividend on Equity Shares (43.99) - (43.99) -
Tax on Dividend (Including surcharge) (net of credit) (8.96) - (8.96) -
Transfer to General Reserve (10.00) (10.00) (10.00) (10.00)
Balance carried to Balance Sheet 11,620.58 10930.81 2,456.28 2,325.07

Note :
1. There are no material changes and commitments affecting the financial position of the Company
between the end of the financial year and the date of this report.
2. Previous year figures have been regrouped / re-arranged wherever necessary.
Performance of your Company Consolidated Financial Results:
The audited consolidated financial statements of your Company as on 31st March, 2018, prepared in
accordance with the relevant applicable IND AS and Regulation 33 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and provisions of the
Companies Act, 2013, forms part of this Annual Report.
The key aspects of your Company’s consolidated performance during the financial year 2017-18 are
as follows:
Operational Highlights:
Coal Trading volumes stood at 66.05 Million Metric Tons (“MMT”).
- Coal Mine Development and Operations volumes stood at 7.04 MMT.
- Renewable Power Generation was 1652.70 Million Units of KWh.
- City Gas Distribution volumes up 17% to 478.60 Million Metric Standard Cubic Meters
(“MMSCM”).
Financial Highlights:
- Consolidated total revenue from operations for FY 18 was Rs.37,984.37 Crore.
- Consolidated EBIDTA for FY 18 was Rs.3,002.30 Crore.
- Consolidated PAT for FY 18 stood at Rs.752.30 Crore.
Standalone Financial Results :
On standalone basis, your Company registered total revenue of Rs.10,166.42 Crore and PAT of
Rs.197.03 Crore.
The detailed operational performance of your Company has been comprehensively discussed in the
Management Discussion and Analysis Report which forms part of this Report.
Dividend
Your Directors have recommended a dividend of 40% (Rs.0.40/- per Equity Share of Rs.1 each) on
the Equity Shares out of the profits of the Company for the financial year 2017-18. The said dividend,
if approved by the shareholders, would involve a cash outflow of Rs.53.04 Crore including tax
thereon.

Status of the Scheme of Arrangements

(A) The Scheme of Arrangement among Adani Enterprises Limited (AEL) and Adani Green Energy
Limited (AGEL) and their respective Shareholders and Creditors.
During the year under review, the Hon’ble National Company Law Tribunal, Bench at Ahmedabad
(‘NCLT’) had, vide its order dated 16th February, 2018 sanctioned the Scheme of Arrangement
among Adani Enterprises Limited (‘AEL) and Adani Green Energy Limited (‘AGEL’) and their
respective Shareholders and Creditors under Sections 230 to 232 and other applicable provisions of
the Companies Act, 2013 (‘the scheme’). The scheme was approved by the shareholders, secured and
unsecured creditors of the Company with requisite majority on 10th January, 2018. The Scheme
provided for demerger of the Renewable Power Undertaking (as defined in the scheme) of AEL and
transfer of the same to AGEL with effect from the Appointed Date i.e. 1st April, 2018.
In terms of the above Scheme, AGEL was required to issue and allot to each member of AEL whose
name was recorded in the register of members and records of AEL as on the Record Date in the
following ratio - - 761 (Seven Hundred Sixty One) equity shares of Rs.10/- (Rupees Ten Only) each
of AGEL credited as fully paid-up for every 1000 (One Thousand) equity shares of Rs.1/- (Rupee One
Only) each held by such shareholder in AEL.
The Company had fixed 6th April, 2018 as the record date to determine its shareholders who would
be entitled to the shares of AGEL as aforesaid, pursuant to the Scheme.
Accordingly, the Board of Directors of AGEL had on 8th April, 2018 allotted Equity Shares to those
shareholders of AEL whose names appeared in the Register of Members as on the Record Date in the
above mentioned ratio.
(B) The Composite Scheme of Arrangement among Adani Gas Holdings Limited (AGHL’) and Adani
Gas Limited (AGL’) and Adani Enterprises Limited (‘AEL’) and their respective Shareholders and
Creditors.
In order to simplify the holding structure resulting in reduction of managerial overlaps and reduction
in multiplicity of legal and regulatory compliances and to segregate Gas Sourcing and Distribution
Business from other businesses of the Company, the Board of Directors of your Company at its
meeting held on 18th January, 2018, approved the Composite Scheme of Arrangement among Adani
Gas Holdings Limited (‘AGHL) and Adani Gas Limited (‘AGL) and Adani Enterprises Limited
(‘AEL’) and their respective Shareholders and Creditors under Sections 230 to 232 and other
applicable provisions of the Companies Act, 2013 (‘the Scheme’). The Scheme is subject to requisite
Statutory and Regulatory approvals and sanction by the respective shareholders and creditors of each
the companies involved in the scheme. The Scheme, with effect from respective effective date (as
defined in the scheme), inter alia, provides for:
DIVIDEND POLICY
Dividend Summary

For the year ending March 2018, Adani Enterprises has declared an equity dividend of
40.00% amounting to Rs 0.4 per share. At the current share price of Rs 138.60 this results in
a dividend yield of 0.29%.

The company has a good dividend track report and has consistently declared dividends for the
last 5 years.

* As per the Profit & Loss account

Dividend Declared
Announcement Effective Dividend Dividend Remarks
Date Date Type (%)

10-05-18 27-07-18 Final 40.00 Rs.0.4000 per share(40%)Final Dividend

24-05-17 31-07-17 Final 40.00 Rs.0.4000 per share(40%)Dividend

09-03-16 22-03-16 Interim 40.00 Rs.0.4000 per share(40%)Interim Dividend

13-05-15 31-07-15 Final 140.00 Rs.1.4000 per share(140%)Final Dividend

19-05-14 31-07-14 Final 140.00 Rs.1.4000 per share(140%)Dividend

WORKING CAPITAL MANAGEMENT

A managerial accounting strategy focusing on maintaining efficient levels of both
components of working capital, current assets and current liabilities, in respect to each other.
Working capital management ensures a company has sufficient cash flow in order to meet its
short-term debt obligations and operating expenses.
Source: http://www.investopedia.com/terms/w/workingcapitalmanagement.asp
CURRENT ASSETS 2017 2016 2015 2014
Current Investments 1.00 1.00 1.00 1.00 1.00
Inventories 1,294.42 594.56 530.38 584.92 1,068.51
Trade Receivables 2,635.37 2,923.44 2,641.97 3,794.76 3,113.02
Cash And Cash Equivalents 524.66 364.21 147.07 238.25 260.88
Short Term Loans And Advances 3,168.19 3,782.93 6,923.67 8,530.05 5,938.43
OtherCurrentAssets 2,173.41 1,275.21 219.76 79.96 113.60
Total Current Assets 9,797.05 8,941.35 10,463.85 13,228.94 10,495.44
CURRENT LIABILITIES
Short Term Borrowings 4,971.34 4,905.40 4,416.23 2,635.20 3,973.50
Trade Payables 3,693.18 3,217.95 2,964.98 5,781.89 4,984.40
Other Current Liabilities 1,089.77 788.14 1,248.15 961.19 1,082.25
Short Term Provisions 27.45 27.27 30.02 193.69 185.88
10,226.03
Total Current Liabilities 9,781.74 8,938.76 8,659.38 9,571.97
Net Working Capital Requirement 15.31 2.59 1804.47 3656.97 269.41

A Positive working capital figures of the adani ltd shows that company will able to pay the all
the current liabilities. In year 2015 the company reported the highest amount of working
capital so that shows the company having the higher amount of efficiency in 2015.