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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.
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.
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:
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.
SHAREHOLDER'S FUNDS
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
ASSETS
NON-CURRENT ASSETS
Long Term Loans And Advances 18.69 87.75 789.79 1,201.65 4,221.07
CURRENT ASSETS
Short Term Loans And Advances 3,168.19 3,782.93 6,923.67 8,530.05 5,938.43
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 (Rs.
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Cr)
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
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
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.
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.
Dividend Declared
Announcement Effective Dividend Dividend Remarks
Date Date Type (%)
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.