Adani Enterprises Faces Sebi Notices Over Compliance Issues

Adani Enterprises discloses receiving two show-cause notices from Sebi alleging non-compliance in March quarter.

  • Adani Enterprises discloses receiving two show-cause notices from Sebi alleging non-compliance in March quarter.
  • Notices relate to party transactions and validity of peer review certificates.
  • Despite notices, company states no material impact on financial statements; reports 38% YoY fall in net profit.

Adani Enterprises has revealed that it received two show-cause notices from the Securities and Exchange Board of India (Sebi) in the March quarter of FY2024. These notices, disclosed as part of the company’s Q4 FY24 results, pertain to alleged non-compliance with Sebi’s provisions regarding listing agreements and disclosure requirements. The notices relate to party transactions with third parties and the validity of peer review certificates from previous years.

While acknowledging the notices, Adani Enterprises clarified that they have no material impact on the financial statements for FY24 and asserted that there is no significant non-compliance with applicable laws and regulations. These notices come in the wake of an independent assessment conducted by a law firm following allegations made in a short-seller’s report in January 2023. The assessment revealed that the parties mentioned in the report were not related to Adani Group companies.

Despite these regulatory challenges, Adani Enterprises reported a 38% year-on-year decline in net profit for the fiscal fourth quarter, attributed to exceptional expenditure and rising material and operating costs. However, the company’s revenue from operations saw a marginal 1% YoY increase. Additionally, Adani Enterprises declared a dividend of Rs 1.3 per share for the full fiscal year 2023-24.