Red Flags in Reliance Group, India? A Probe into Reliance Infrastructure Ltd.
商品編號：W25252
出版日期：2022/01/14
再版日期：
商品來源：
商品主題：Accounting; Finance
商品類型：Case (Pub Mat)
涵蓋議題：red flags;financial distress;accounting
難易度： -
內容長度：10 頁
地域：India
產業：
事件年度：2020
In early 2021, an investor had a substantial amount invested in three companies in the Reliance Anil Dhirubhai Ambani Group Reliance Group: Reliance Communications Ltd., Reliance Infrastructure Ltd., and Reliance Capital Ltd. The market price of Reliance Group shares had fallen steeply during the past five years (2016–2020), eroding the wealth of shareholders; consequently, the investor had lost almost all of his investments in the three group companies. Further, in 2019, Reliance Communications Ltd. had filed for bankruptcy. In 2020, the chair of the Reliance Group mentioned that Reliance Capital Ltd. had stopped its lending business and initiated stake sales. The investor decided to sell his shares in Reliance Communication Ltd. and Reliance Capital Ltd. at a huge loss. However, good dividend payments, and positive signals from the Reliance Group chair regarding betterment in the top line, a promotors’ stake increase, and his intention to reduce the companies’ debt to zero in 2020 made the investor hold their Reliance Infrastructure Ltd. shares. Nevertheless, to understand the possibility of improved fundamentals, the investor had to analyze the financial statements of Reliance Infrastructure Ltd., examining these for potential red flags that could identify significant threats to the future of the company and his investments.
教學手冊：W25253;
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