annual report 2013 - 14 annual report 2013 - 14

157 Pages·2014·2.18 MB·English

AANNNNUUAALL RREEPPOORRTT 22001133 -- 1144
SSMMAARRTTEERR.. SSAAFFEERR.. SSUUSSTTAAIINNAABBLLEE..
WWEE DDOO IITT BBEETTTTEERR..
wwwwwwww..ssuuzzlloonn..ccoomm
Transforming society
through progressive thoughts
The Suzlon Impact
~ 49,700 GWh Lighting up
power generatedper year ~83 million lives*.
from 24.5 GW installations.
CO e
2
Over41 million tonnes
of carbon emissions
avoided annually.
Benefits comparable to Carbon emissions avoided
planting over 3.4 billion trees equivalent to ~ 6.8 million cars
every year. taken off the street annually.
Saving more than
23 million tonnes of coal
per annum.
Source: *In the Indian context
Suzlon Energy Limited, Annual Report 2013-14
COMPANY INFORMATION
SUZLON ENERGY LIMITED(CIN : L40100GJ1995PLC025447)
BOARD OF DIRECTORS
Mr. Tulsi R.Tanti (DIN: 00002283) Chairman & Managing Director
Mr. Vinod R.Tanti (DIN: 00002266) Non-Executive Director
Mr. Girish R.Tanti (DIN: 00002603) Non-Executive Director
Mr. V. Raghuraman (DIN: 00411489) Non-Executive Independent Director
Mr. Rajiv Ranjan Jha (DIN: 03523954) Non-Executive Director
a nominee of Power Finance Corporation Limited
Mr. Marc Desaedeleer (DIN: 00508623) Non-Executive Independent Director
Mrs. Bharati Rao (DIN: 01892516) Non-Executive Director
a nominee of State Bank of India
Mr. Ravi Uppal (DIN: 00025970) Non-Executive Independent Director
Mr. Ravi Kumar (DIN: 02362615) Non-Executive Director
(a nominee of IDBI Bank Limited,
who ceased to be a director w.e.f. May 3, 2014)
Mrs. Medha Joshi (DIN: 00328174) Non-Executive Director
a nominee of IDBI Bank Limited
(appointed as nominee director w.e.f. May 3, 2014)
CHIEF FINANCIAL OFFICER COMPANY SECRETARY
Mr. Amit Agarwal Mr. Hemal A.Kanuga
ICAI Membership No.056880 ICSI Membership No.F4126
AUDITORS
SNK & Co. S.R.Batliboi & Co., LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration No. 109176W ICAI Firm Registration No. 301003E
E-2-B, 4thFloor, The Fifth Avenue, C-401, 4thFloor, Panchshil Tech Park,
Dhole Patil Road, Yerawada, (Near Don Bosco School),
Pune - 411001, India Pune - 411006, India
BANKERS / INSTITUTIONS
Axis Bank Limited Indian Overseas Bank
Bank of Baroda Life Insurance Corporation of India
Bank of India Oriental Bank of Commerce
Bank of Maharashtra Power Finance Corporation Limited
Central Bank of India Punjab National Bank
Corporation Bank State Bank of Bikaner and Jaipur
Dena Bank State Bank of India
Export Import Bank of India State Bank of Patiala
ICICI Bank Limited The Saraswat Co-operative Bank Limited
IDBI Bank Limited Union Bank of India
Indian Renewable Energy Development Agency Limited
REGISTERED OFFICE CORPORATE OFFICE
“Suzlon”, 5, Shrimali Society,Near Shri Krishna Complex, One Earth, Hadapsar,
Navrangpura, Ahmedabad - 380009, India Pune - 411 028, India
Tel.: [phone], Fax: [phone] Tel.: [phone], Fax.: [phone]
Email: [email protected]; Website: www.suzlon.com
REGISTRAR AND SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17-24, Vittalrao Nagar, Madhapur, Hyderabad-500081, India
Tel: [phone]; Fax: [phone]; Toll Free No. 1800-3454-001
Email: [email protected]; Website: www.karvycomputershare.com
Suzlon Energy Limited, Annual Report 2013-14
BOARD OF DIRECTORS
Mr. Tulsi R.Tanti Mr. Ravi Uppal Mr. Marc Desaedeleer
Chairman & Managing Director Non-Executive Independent Director Non-Executive Independent Director
Mr. Vinod R.Tanti Mr. V.Raghuraman Mrs. Bharati Rao
Non-Executive Director Non-Executive Independent Director Non-Executive Director
a nominee of State Bank of India
Mr. Girish R.Tanti Mr. Rajiv Ranjan Jha Mrs. Medha Joshi
Non-Executive Director Non-Executive Director Non-Executive Director
(a nominee of Power a nominee of IDBI Bank Limited
Finance Corporation Limited) (appointed as nominee director
w.e.f. May 3, 2014)
Suzlon Energy Limited, Annual Report 2013-14
CONTENTS
Letter from the Chairman 2
Financial Highlights 6
Directors’ Report 14
Annexure to Directors' Report 21
Management Discussion and Analysis 26
Corporate Governance Report 34
Standalone Financial Statements 52
Section 212 Report 91
Consolidated Financial Statements 93
Notice 130
Suzlon Energy Limited, Annual Report 2013-14 | 1
LETTER FROM THE CHAIRMAN
Dear Shareholder, improvementsinmarginsandcashflow.Withthese
greenshoots,weareinacomfortablesituationto
We are now witnessing buoyancy in the business say that the worst is clearlybehind us and for the
environment after years of challenging times. industryasawhole.
As the global economy recovers and demand for
energy rebounds, the renewable sector is now Followingthemacrotrend,Suzlonisbackonthepath
poisedforanewphaseofhighergrowth.TheIndian to recovery. We have successfully completed our
windmarketisalsoheadedonagrowthtrajectory comprehensive liability management efforts during
withthereinstatementofAcceleratedDepreciation FY14 and have made good progress on the capital
(AD) by the new government. Furthermore, the rebalancing front. Overall, the performance during
successful restructuring efforts by the wind FY14hasbeenencouragingforSuzlonandwehopeto
turbine equipment manufacturers have led to capitalizeonthebuoyantmarketenvironment.
2 | Suzlon Energy Limited, Annual Report 2013-14
FY14:APositiveTransition
five years, Senvion has been one of the most
valuable and profitable asset in the wind energy
AlloureffortsduringFY14torestoreconfidencein space.Ithasconsistentlydemonstratedgrowthand
Suzlon have yielded considerable results. The posted profits even when others in the industry
volumesofSuzlonWindhavesignificantlyrisenby reported substantial losses. Continuing its stellar
188%owingtoanimprovementinworkingcapital performance, Senvion achieved 25% increase in
and business efficiencies. In FY14, our efforts to EBIT in FY14. In terms of cumulative installations
lower the breakeven volume have resulted in a globally, Senvion achieved a significant milestone
significant reduction in fixed costs. In the last of10,000MWinFY14.
quarter of FY14, Suzlon Group turned EBITDA
positiveforthefirsttimeineightquarters.Withthis, Market Outlook is Bright
the Group is now gradually transiting from a
restructuringmodetoastablephase.
As mentioned earlier, the global wind market is
poisedforanewphaseofgrowth.Thewindenergy
Best-in-class Operation, Maintenance & Service
marketislikelytosurgeby40%inFY15.Themedium
(OMS) has been one of our key strengths. We
to long term outlook for our business remains
decidedtocarveoutourOMSbusinessofIndiainto
robust as the life cycle cost of energy from wind
aseparatewhollyownedsubsidiarynamely,Suzlon
continues to target grid parity in most markets.
GlobalServicesLimitedwithanaimtobringbetter
Lowercostofenergy,energysecurity,provisionof
transparencyandhelprealizebusinessefficiencies.
clean energy for all and climate change mitigation
will drive the long term growth of wind energy
I am pleased to see that the Suzlon Group has
sector.
maintaineditsglobalmarketsharein2013despite
adversities.Yourcompanytodayisthefifthlargest
The medium term outlook for the wind sector in
wind turbine manufacturer in the world both in
Indiahasimprovedsignificantly.TheGovernment’s
terms of annual as well as cumulative installed
clear thrust on energy security and renewable
capacity.Indiahasbeenaflywheeltoourbusiness.
energy is epitomized in the recently presented
Expectedly,wecarryontomaintainourleadership
UnionBudgetthatoutlinedthemeasurestoboost
positionduringFY14.
the wind energy sector. Accelerated Depreciation
(AD) of 80% which was discontinued in 2012 has
Wecontinuetobolsterourorderbooktosecureour
beenreinstatedthisyeartostimulateinvestments
future business. The Group now boasts an order
and provide further momentum for the Wind
backlogofUS$7.6bnasofMarchend.
energy sector. AD also offers additional return for
those Indian companies, who would like to set up
Strong Performance of
captivepowerplantsandhedgetheirpowercostfor
Senvion Continues
25 years. Furthermore, the Government has now
announcedthatinvestmentinwindenergyasoneof
OurGermansubsidiaryREpower,nowrechristened thequalifiedCSRactivitiesundersection135ofthe
asSenvioncontinuedtoperformwell.Overthelast Companies Act, 2013. Income tax holiday under
Suzlon Energy Limited, Annual Report 2013-14 | 3
section80IAhasbeenextendedtill2017.Withthese Mostimportantlyweareonceagainpreparingthe
measures the Indian wind energy market is organizationforgrowth.AsaGroup,wecontinueto
expectedtosurgeandSuzloniswellpositionedto have a strong and sustainable long term outlook
capitalize on this. I am confident that this will with an endeavor to achieve cost and technology
enhancevaluecreationforourShareholders. leadershipwithintheindustry.
Building on our Edge We are thankful to all our stakeholders who
continue to show faith and confidence in us. My
specialthankstoalltheshareholdersandbankers
OurpriorityforFY15willbetofurtherstrengthenour
who have shown extra ordinary patience and
orderbookbyunlockingandexpandingoursharein
supporttowardsusthathaspavedthepathforour
thegrowingoffshoreandemergingmarkets.Wewill
resurgence. I, the Management Team of the
enhance our global competitiveness by leveraging
Company,andeverymemberoftheSuzlonfamily
ourtechnologyedgeandinvestingindevelopmentof
remaingratefulforyourcontinuoussupport–and,
newproductswithhighyields.
withit,weareconfidentofpoweringabetterand
greenertomorrow.
Senvion already has the distinction of having built
the largest commercial wind turbine, the 6.2 MW
Warmregards,
turbines. It continues to maintain its technology
leadership by introducing a range of new product
Tulsi Tanti
variantsinthe3MW&6MWseries. SuzlonGroupis
Chairman
intheprocessofdevelopingandcommercializingof
theS97-120m(hybridtower),S111,3M-122mand Pune, 25th July, 2014
6.2M-152m. These products will change the
businessdynamicsprovidingacompetitiveedgefor
the Group. The Group stands committed to bring
down the cost of energy and thereby maximize
returnoninvestmentsforourcustomers.
LookingAhead
We will bolster our balance sheet further by
rebalancing our capital structure and monetizing
non-coreassets,therebyreducingourIndianRupee
debtburdenandinterestcosts.Duringthelasttwo
yearswehavebeentransformedintoamoreleaner,
flexibleandscalablecompanyandtodayaremuch
better prepared for the future challenges the
industryposes.
4 | Suzlon Energy Limited, Annual Report 2013-14
Senvion offshore wind farm
in Ormande, U.K.
Suzlon Energy Limited, Annual Report 2013-14 | 5
FINANCIAL HIGHLIGHTS
SuzlonEnergyLimitedanditssubsidiaries
Rs in Crore
Particulars 2013-14 2012-13 2011-12 2010-11 2009-10
Revenuefromoperations 20,212 18,743 21,082 17,879 20,620
EBIDTA (141) (1,296) 1,821 1,047 943
Interest 1,792 1,518 1,379 1,136 1,195
Depreciation 777 740 661 657 663
Netprofit/(loss) (3,520) (4,724) (479) (1,324) (983)
Equitysharecapital 498 355 355 355 311
Networth (544) 320 4,978 6,526 6,601
Grossfixedassets 18,055 15,809 15,161 13,265 11,951
Netfixedassets 13,948 12,382 12,602 11,332 10,574
Totalassets 30,315 29,216 32,427 29,220 29,205
Bookvaluepershare*-Rs (2.2) 1.8 28.0 36.7 42.4
Turnoverpershare*-Rs 81.2 105.5 118.6 100.6 132.5
Earningpershare*-Rs (15.7) (26.6) (2.7) (7.8) (6.4)
EBIDTA/Grossturnover(%) -0.7% -6.9% 8.6% 5.9% 4.6%
Prior year amounts have been reclassified wherever necessary to confirm with current year
presentation.
Revenue from operations Net worth
21,082 6,601 6,526
20,620
20,212
4,978
18,743
17,879
320
(544)
2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14
Financial Year Financial Year
Book value per share
42.4
36.7
28.0
1.8
(2.2)
2009-10 2010-11 2011-12 2012-13 2013-14
Financial Year
Suzlon wind farm in Utah, USA
6 | Suzlon Energy Limited, Annual Report 2013-14