We have few concerns over the accounting at Barito Renewables (BR) given the high level of regulatory oversight of its operations and financials. Our main concerns relate to the unrealistic share price performance and valuations of BR and other group companies which have worrying similarities to the scandal engulfing the Adani Group in India. We estimate BR’s fair value is more than 95% below the current level. Any share price correction to a reasonable level could prompt a margin call if over-priced equity has been used as collateral. There is no knowing how this will affect the listed company, such as triggering undisclosed but related debt covenants. Although we rate BR’s financials as a medium accounting risk, governance risks are elevated.

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