Adani Accuses National Broadcaster Of Inaccurate Claims
Image Credit: CC BY-SA 3.0 Nick Youngson Alpha Stock Images
A Forensic Accounting Specialist from the University of Sydney claims Adani could be headed for corporate collapse.
Adani has responded saying the claims are 'false and misleading'.
Professor Sandra van der Laan telling the ABC it has all the hallmarks of the big corporate failures we've seen over the last 20 to 30 years.
She and fellow academic, Sue Newberry, previously warned that childcare provider, ABC Learning, was in danger of folding and it did.
Adani Mining, which is behind the controversial Carmichael coal mine in the Galilee Basin, recently provided ASIC with its financial accounts to March 31.
The ABC reports that as a private company, they can release financial statements with limited detail.
But Professor van der Laan told the national broadcaster, the accounts show the owners have contributed less than $9 million in equity to the business and total liabilities exceed total assets by more than half a billion dollars.
She said current assets of less than $30 million are swamped by current liabilities, due over the next 12 months, of more than $1.8 billion.
Professor van der Laan added that "Adani Mining is in a very fragile, even perilous, financial position" according to the ABC.
An Adani spokesperson responded to the claims made in the ABC article regarding the Adani Group’s financial position.
The spokesperson said claims made "by Professor Sandra van der Laan and IEEFA to the ABC are false and misleading".
"The claims misrepresent Adani’s financial accounts in an attempt to discredit our business in what is nothing more than a smear campaign.
“Despite requesting advice from the ABC as to the source of their story and on what basis they were making misleading allegations, the ABC would not provide that information or further context in order for us to fully respond. It was not until we had provided our statement that they were willing to provide further context and partial advice on their source.
“Adani has been operating successfully in Australia for nine years and has invested more than $3.6 billion into the Australian economy during that time.
“Over nine years our contractors, employees, consultants and other business partners have been paid.
“Our operations here are Australian businesses, operating under Australian financial regulations and taxation legislation.
“Like other Australian businesses, our accounts are annually audited and tested for matters such as insolvency and assessed against other financial responsibilities and accountabilities.
“Like other Australian companies Adani Mining is required to report its balance sheet to ASIC under Australian law, and our balance sheet has been publicly available for the past eight years for people to view.
“Just like every mining project, our project will not generate income until the mine and rail are built and operating and coal can be sold and exported. Until we start producing and selling coal, we will be continuing to invest in the development of the mine and rail and therefore this will be treated as an accounting loss.
“With Adani’s approvals for construction now in place, construction on the Carmichael mine and rail Project is progressing well. The construction stage is due for completion approximately two years after approvals were received, and production of coal will shortly follow.
“The investment in the delivery of the Carmichael Project was always expected to be a long-term investment, which is why Adani has remained committed to the Project.
“Already Adani’s businesses in Australia have had major impacts on the Queensland economy, through its ownership and operation of Abbot Point Port Terminal, Adani Renewables’ solar farm in Rugby Run, and now with the delivery of the Carmichael Project.
“Adani looks forward to continuing its operations and the significant financial contribution it makes to the Australian economy over the coming years.
”We expect anti-coal activists will continue their attempts to discredit and misrepresent our organisation and operations. Despite this we will deliver our Carmichael Project and the benefits it will bring to regional Queensland communities.”
By Michelle Price