Adani Enterprises Ltd


BSE: 512599 | NSE: ADANIENT | ISIN: INE423A01024 
Market Cap: [Rs.Cr.] 47,863 | Face Value: [Rs.] 1
Industry: Trading

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Auditor's Report

INDEPENDENT AUDITOR'S REPORT

To the Members of Adani Enterprises Limited Report on the Financial Statements

We have audited the accompanying financial statements of Adani Enterprises Limited("the Company"), which comprise the Balance Sheet as at March 31, 2013, and theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 ("the Act"). This responsibility includesthe design, implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a) in the case of the Balance Sheet, of the stateof affairs of the Company as at March 31, 2013; b) in the case of the Statement of Profitand Loss, of the profit for the year ended on that date; and c) in the case of the CashFlow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.

2. As required by section 227(3) of the Act, we report that: a) we have obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit; b) in our opinion proper books of account asrequired by law have been kept by the Company so far as appears from our examination ofthose books; c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statementdealt with by this Report are in agreement with the books of account; d) in our opinion,the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with theAccounting Standards referred to in subsection (3C) of section 211 of the Companies Act,1956; e) on the basis of written representations received from the directors as on March31, 2013, and taken on record by the Board of Directors, none of the directors isdisqualified as on March 31, 2013, from being appointed as a director in terms of clause(g) of sub-section (1) of section 274 of the Companies Act, 1956.

For DHARMESH PARIKH & CO.
Chartered Accountants
Firm Reg. No: 112054W
Anuj Jain
Place : Ahmedabad Partner
Date : 20th May, 2013 Membership No. 119140

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT RE: ADANI ENTERPRISES LIMITED

(Referred to in Paragraph 1 of our Report of even date.)

(i) (a) The Company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets.

(b) As explained to us, fixed assets, according to the practice of the Company, arephysically verified by the management at reasonable intervals, in a phasedverification-programme, which, in our opinion, is reasonable, looking to the size of theCompany and the nature of its business. No material discrepancies were noticed on suchverification.

(c) As the Company has disposed off an insignificant part of the fixed assets duringthe year, provisions of clause 4 (i) (c) of the Order are not applicable.

(ii) (a) During the year, the inventories, except transit stock have been physicallyverified by the management.

For stocks lying with third parties, which have, however, been confirmed by them. Inour opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) On the basis of our examination of the record of inventories, we are of the opinionthat, the Company is maintaining proper records of inventories. The discrepancies noticedon physical verification of inventories as compared to book records were not material andhave been properly dealt with in the books of account.

(iii) (a) The Company has given loans to nine subsidiaries of the Company. In respectof the said loans, the maximum amount outstanding at any time during the year was Rs.7,889.96 Crores and the year end balance is Rs. 6,765.87 Crores (including interest freeloan of Rs. 703.70 Crores). The Company has not given any loans to firms or other partiescovered in the Register maintained under Section 301 of the Companies Act, 1956.

(b) In our opinion and explanation given to us, the rate of interest, where applicableand the other terms and conditions, are not prima facie prejudicial to the interest of thecompany.

(c) The principal amounts are repayable as per the terms of the loan, while theinterest where applicable is payable annually at the discretion of the Company.

(d) In respect of the said loans and interest thereon, there are no overdue amounts.

(e) According to the information and explanation given to us and record produced to usfor verification, the Company has taken unsecured loan from a subsidiary company coveredin the register maintained under Section 301 of the Companies Act, 1956. The maximumamount involved during the year was Rs. 744.52 Crores and the year end balance was Rs.Nil. The Company has not taken loan during the year from any firm or other parties coveredin the register maintained under section 301 of the companies Act, 1956.

(f) In our opinion, the rate of interest and other terms and conditions on which suchloan had been taken are not prima facie, prejudicial to the interest of the Company.

(g) In respect of the loan taken by the Company, the terms of repayments of principalamount and interest thereon are regular.

(iv) According to the information and explanations given to us, there is an adequateinternal control system commensurate with the size of the Company and the nature of itsbusiness for the purchase of inventory and fixed assets and for the sale of goods andservices. During the course of our audit, no major weakness has been noticed in theinternal control system.

(v) (a) In our opinion and according to the information and explanations given to us,the transactions made in pursuance of contracts or arrangements, that need to be enteredin Register maintained under section 301 of the Companies Act,1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, thetransactions made in pursuance of contracts or arrangements referred to in (a) above andexceeding the value of Rs. 5,00,000/- in respect of each party during the year have beenmade at prices which appear reasonable as per information available with the Company.

(vi) The Company has not accepted deposits from the public within the meaning ofsection 58A & 58AA of the Companies Act, 1956 or any other relevant provisions of theAct and the Rules framed there under.

We are informed that no order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vii) As per the information and explanations given to us by the management, theCompany's internal control procedures together with the internal checks conducted by thegroup internal audit team during the year can be considered as an internal auditcommensurate with the size and nature of its business.

(viii) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Accounting Records) rules 2011 prescribed by the Central Governmentunder section 209(1) (d) of the Companies Act, 1956 in respect of the company's RenewableEnergy (Solar Power) division and are of the opinion that prima facie the prescribed costrecords have been made and maintained. However, we have not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete.

(ix) (a) As explained to us, the statutory dues payable by the Company comprises ofProvident Fund, Investors Education and Protection Fund, Employees State Insurance, IncomeTax, Sales Tax/VAT, Wealth Tax, Service Tax, custom duty, excise duty, cess, octroi, entrytax, purchase tax, Municipal tax and other applicable statutory dues. According to therecords of the Company, the Company is generally regular in depositing undisputedstatutory dues with the appropriate authorities; however there has been delay in few caseswhich is not in arrears for more than Six months at the end of financial year. There areno undisputed statutory dues as referred to above as at March 31, 2013 outstanding for aperiod of more than six months from the date they become payable.

(b) According to the records of the Company and representation made by the Management,the following are the disputed amounts in respect of various statutes:

Name of Statute Nature of the dues Amount Period to which the amount relates Forum where dispute is pending
(Rs. In Crores)
Income Tax Act, 1961 Income Tax and Interest 1.46 2001-02 ITAT, Ahmedabad
Income Tax Act, 1961 Income Tax 0.02 1988-89 High Court of Gujarat
1990-91
Income Tax Act, 1961 Income Tax and Interest 0.05 2003-04 ITAT, Ahmedabad
Income Tax Act, 1961 Income Tax and Interest 3.97 2007-08 CIT (Appeal), Ahmedabad
Income Tax Act, 1961 Income Tax and Interest 1.36 2008-09 High Court, Gujarat
Income Tax Act, 1961 Withholding tax and Interest 4.93 2009-10 ITAT, Ahmedabad
Income Tax Act, 1961 Withholding tax and Interest 3.89 2009-10 ITAT, Ahmedabad
Income Tax Act, 1961 Income Tax and Interest 9.45 2008- 09 Assessing Officer
Gujarat Sales Tax Act Sales Tax, Penalty and Interest 0.07 1999-00 Dy. Commissioner Appeals, Ahmedabad
Gujarat Sales Tax (CST) Sales Tax, Penalty and Interest 0.90 2004-05 Jt. Commissioner Commercial Tax
Gujarat Sales Tax (CST) Sales Tax, Penalty and Interest 0.78 2005-06 Jt. Commissioner Commercial Tax
Gujarat Value Added Tax (VAT) Sales Tax, Penalty and Interest 28.83 2006-07 Jt. Commissioner Commercial Tax
Gujarat Value Added Tax (CST) Sales Tax, Penalty and Interest 4.80 2006-07 Jt. Commissioner Commercial Tax
Gujarat Value Added Tax (VAT) Sales Tax, Penalty and Interest 4.85 2007-08 Jt. Commissioner Commercial Tax
Gujarat Value Added Tax (CST) Sales Tax, Penalty and Interest 4.59 2007-08 Jt. Commissioner Commercial Tax
Gujarat Value Added Tax (VAT) Sales Tax, Penalty and Interest 25.14 2008-09 Jt. Commissioner Commercial Tax
Gujarat Value Added Tax (CST) Sales Tax, Penalty and Interest 0.07 2008-09 Jt. Commissioner Commercial Tax
Maharashtra Central Sales Tax Sales Tax, Penalty and Interest 15.13 2001-02 Appellate Tribunal, Mumbai, Maharashtra
Maharashtra Central sales Tax Sales Tax, Penalty and Interest 17.61 2002-03 Appellate Tribunal, Mumbai, Maharashtra
Maharashtra Sales Tax Sales Tax, Penalty and Interest 1.03 2002-03 Joint Commissioner Appeal, Mumbai
Maharashtra Central Sales Tax Sales Tax, Penalty and Interest 7.00 2002-05 Joint Commissioner Appeal, Mumbai
Maharashtra Value Added Tax Sales Tax, Penalty and Interest 18.58 2005-06 Joint Commissioner Appeal, Mumbai
Kerala VAT Tax Sales Tax and Interest 0.98 2005-07 Dy. Commissioner Appeals, Kochin
Andhra Pradesh Central Sales Tax Sales Tax, Penalty and Interest 2.67 2008-09 Dy. Commissioner Appeals
2009-10
Orissa Value Value Added Tax, 0.03 2006-10 Additional
Added Tax Penalty and Interest Commissioner, Appeals
Orissa Entry Tax Entry Tax, Penalty and Interest 11.47 2006-10 Supreme Court
Orissa Entry Tax Entry Tax, Penalty and Interest 59.46 2010-12 Additional Commissioner, Appeal
Orissa Central Sales Tax Sales Tax, Penalty and Interest 0.93 2006-11 Additional Commissioner, Sales Tax
Orissa Central Sales Tax Sales Tax, Penalty and Interest 7.39 2011-12 High Court
Madhya Pradesh Entry Tax Entry Tax, Penalty and Interest 0.47 2005-06 Appellate Board
Madhya Pradesh Central Sales Tax Sales Tax and Interest 1.06 2004-05 Appellate Board
Uttar Pradesh Sales Tax Sales Tax and Interest 0.18 2006-07 Dy. Commissioner, Appeal
The Finance Act 1994 (Service Tax) Cenvat Credit availed against Service Tax and Interest and Penalty on Service Tax 13.99 2004-05 to 2009-10 Customs, Excise and Service Tax appellate Tribunal, Ahmedabad
The Finance Act 1994 (Service Tax) Demand of Service Tax and Interest and Penalty on Service Tax 2.54 2004-05 to 2009-10 Additional Commissioner (Service Tax)
Customs Act, 1962 Custom Duty and Penalty 0.74 1997-1998 Supreme Court
Customs Act, 1962 Custom Duty and Penalty 0.41 1998-1999 Supreme Court
Customs Act, 1962 Custom Duty and Penalty 0.83 1999-2000 Supreme Court
Customs Act, 1962 Custom Duty 0.25 1997-1998 Supreme Court
Foreign Exchange Regulation Act Penalty 4.00 1998-1999 High Court of Gujarat
Foreign Exchange Regulation Act Penalty 4.10 2000-01 Appellate Tribunal for Foreign Exchange, New Delhi
Customs Act, 1962 Custom Duty and Interest 0.22 2003-2004 Customs, Excise and Service Tax appellate Tribunal, Chennai.
Customs Act, 1962 Custom Duty and Penalty 2.31 1997-1998 CESTAT, Mumbai
Customs Act, 1962 Custom Duty 0.14 1997-1998 With various Assessing & Appeal Authorities.
1999-2000
2000-2001
Foreign Exchange Regulation Act Penalty 0.16 1997-1998 Special Director (Appeals) Commissioner of Income Tax Appeals-V, Chennai
Central Excise Rules Recovery Excess Rebate and Penalty 0.61 1998-1999 Joint Secretary, Ministry of Finance. New Delhi
1999-2000
Customs Act, 1962 Custom Duty 0.30 1997-1998 Commissioner of Customs, ICD, Tuglakabad
Customs Act, 1962 Custom Duty 13.48 1993-1994 Commissioner of Customs, Mumbai
1995-1996
Customs Act, 1962 Custom Duty 0.07 2004-2005 Asst. Commissioner of Customs, Mundra
Customs Act, 1962 Custom Duty 0.50 2006-2007 Deputy Comm. of Customs, Murmugao
Customs Act, 1962 Custom Duty 0.14 2005-2006 Commissioner of Customs (Appeals)
Customs Act, 1962 Custom Duty 0.30 2003-2004 Commissioner of Customs, Mumbai
2004-05
Customs Act, 1962 Duty Drawback 0.31 2006-07 Asst. Commissioner of Customs, Mundra
2007-08
Customs Act, 1962 Custom Duty 29.98 2004-05 Commissioner of Customs (import), Air Cargo, Mumbai
Customs Act, 1962 Customs duty and penalty 1.74 1996-97 High Court of Gujarat
Customs Act, 1962 Customs duty 1.63 2004-05 Comm. of Customs Appeals, Ahmedabad
Customs Act, 1962 Agriculture Cess 0.003 2005-06 Asst. Comm. of Customs (Export), GAPL, Mundra
Customs Act, 1962 Customs duty & Penalty 6.93 1992-93 to 1993-94 Customs, Excise and Service Tax appellate Tribunal, Ahmedabad
Customs Act, 1962 Customs duty & Penalty 9.90 2006-07 Customs, Excise and Service Tax appellate Tribunal, Ahmedabad
2007-08
Customs Act, 1962 Penalty 0.05 1998-99 Supreme Court
Customs Act, 1962 Penalty 25.00 2004-05 Customs, Excise and Service Tax appellate Tribunal, Mumbai
2005-06
Customs, Central Excise Duties & drawback Service Tax Rules, 1995 Recovery of duty 0.55 2001-09 Assistant Commissioner of Customs (Drawback) Vishakhapatnam

(x) The Company has no accumulated losses at the end of the financial year and it hasnot incurred any cash losses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and on the information and explanations given by themanagement, we are of the opinion that the Company has not defaulted in repayment of duesto a bank. The Company has not borrowed any sums through financial institution ordebentures.

(xii) According to the information and explanations given to us, the Company has notgranted loans and advances on the basis of security by way of pledge of shares, debenturesand other securities. Accordingly, the provisions of Clause 4(xii) of the Order are notapplicable.

(xiii) According to the information and explanations given to us, the Company is not achit fund or a nidhi/mutual benefit fund/society. Accordingly, the provisions of clause4(xiii) of the Order are not applicable. (xiv) In respect of dealing in securities andother investments, in our opinion and according to the information and explanations givento us, proper records have been maintained of the transactions and contracts and timelyentries have been made therein. All investments at the end of the year are held in thename of the company and its nominees, wherever required.

(xv) In respect of guarantees given by the Company for loans taken by others frombanks, the terms and conditions are prima facie not prejudicial to the interest of theCompany.

(xvi) To the best of our knowledge and as explained, the term loans raised during theyear have been applied for the purpose for which they were raised.

(xvii) According to the Cash-flow statement and other records examined by us and theinformation and explanations given to us, on an overall basis, funds raised on short termbasis have not, prima facie, been used during the year for long term investment exceptpermanent working capital.

(xviii) The Company has not made any preferential allotment of shares to parties andcompanies covered in the Register maintained under section 301 of the Companies Act, 1956.Accordingly, the provisions of Clause 4(xviii) of the Order are not applicable.

(xix) The Company has not issued any debentures during the year and there are nodebentures outstanding as at the year end. Accordingly, the provisions of Clause 4(xix) ofthe Order are not applicable.

(xx) During the year, since the Company has not raised money by way of public issue.Accordingly, the provisions of Clauses 4 (xx) of the Order are not applicable.

(xxi) Based upon the audit procedures performed and information and explanations givenby the management, no fraud on or by the Company were reported or noticed during the year.

For DHARMESH PARIKH & CO.
Chartered Accountants
Firm Reg. No: 112054W
Place : Ahmedabad Anuj Jain
Date : 20th May, 2013 Partner
Membership No. 119140

 

   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Adani Enterp. 47,863.30 0.00 4.77 103.18 -1.8 2.4 0.60
MMTC 7,550.00 46.32 5.63 191.63 11.6 8.7 1.78
3M India 5,522.30 128.44 7.90 30.74 6.3 10.0 0.22
Westlife Develop 5,400.70 0.00 11.36 408.81 13.0 13.4 0.00
CCL Inter 4,071.64 0.00 113.16 89.45 3.6 6.2 0.29
PTC India 2,467.24 9.93 0.98 7.65 5.6 7.9 0.00
Sunrise Asian 2,223.87 0.00 28.57 434.09 0.7 1.0 0.07
Future Consumer 1,613.03 52.79 1.68 393.27 0.0 0.0 0.00
Rain Industries 1,330.26 91.98 4.05 25.47 4.4 8.4 0.85
S T C 1,245.30 16.96 2.11 11.06 12.1 6.7 2.78
Pantaloons Fash 1,168.23 0.00 2.02 0.00 0.0 0.0 2.25
Ushdev Intl. 1,150.56 11.01 2.05 8.05 15.1 17.6 1.41
Effingo Textile 1,093.40 0.00 5.43 0.00 0.3 0.6 0.29
Aegis Logistics 1,023.21 62.27 3.18 12.50 6.0 8.6 0.53
Pearl Electronic 991.27 0.00 29.20 145.40 0.6 0.9 0.00

Futures & Options Quote

 
Expiry Date
433.85 5.05  [1.2]%
Instrument: FUTSTK
Expiry Date: 31 Jul 2014
Open Price: 437.90
Average Price: 439.50
No. of Contracts Traded: 8,775,000
Open Interest: 1,661,000
Underlying: ADANIENT
Market Lot: 1000
Previous Close: 433.85
Day’s High | Low: 444.45 | 431.45
Turnover (Cr.): 385.66
Open Int. Change: -3,239,000.00 ( [66.1]% )
View detailed F& O quotes >>

Key Information

Key Executives:

Gautam S Adani , Chairman  

Rajesh S Adani , Managing Director  

Vasant S Adani , Director  

Anil Ahuja , Director  


Company Head Office / Quarters:
Adani House Shrimali Society,
Mithakhali Six Rd Navrangpura,
Ahmedabad,
Gujarat-380009
Phone : 91-79-26565555/25555555
Fax : 91-79-26565500/25555500
E-mail : investor@adani.in
Web : http://www.adani.com
Registrars:
Sharepro Services India Pvt Lt
Devnandan Mega Mall
Office No 416-420
4th Floor Ashram Rd
Ahmedabad-380006

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