ANNUAL REPORT 2013 - 14

SMARTER. SAFER. SUSTAINABLE.

WE DO IT BETTER.

wwww.suzlon.com
 Transforming society
through progressive thoughts

The Suzlon Impact

~ 49,700 GWh Lighting up

*
power generated per year ~ 83 million lives .
from 24.5 GW installations.

CO2e
Over 41 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
th th
E-2-B, 4 Floor, The Fifth Avenue, C-401, 4 Floor, 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.: +91.79.6604 5000, Fax: +91.79.2656 5540 Tel.: +91.20.6702 2000, Fax.: +91.20.6702 2100
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: +91.40.4465 5000; Fax: +91.40.2342 0814; 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, improvements in margins and cash flow. With these

green shoots, we are in a comfortable situation to
We are now witnessing buoyancy in the business say that the worst is clearly behind us and for the
environment after years of challenging times. industry as a whole.
As the global economy recovers and demand for
energy rebounds, the renewable sector is now Following the macro trend, Suzlon is back on the path
poised for a new phase of higher growth. The Indian to recovery. We have successfully completed our
wind market is also headed on a growth trajectory comprehensive liability management efforts during
with the reinstatement of Accelerated Depreciation 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 FY14 has been encouraging for Suzlon and we hope to
turbine equipment manufacturers have led to capitalize on the buoyant market environment.

2 | Suzlon Energy Limited, Annual Report 2013-14

FY14: A Positive Transition five years, Senvion has been one of the most
valuable and profitable asset in the wind energy
All our efforts during FY14 to restore confidence in space. It has consistently demonstrated growth and
Suzlon have yielded considerable results. The posted profits even when others in the industry
volumes of Suzlon Wind have significantly risen by reported substantial losses. Continuing its stellar
188% owing to an improvement in working capital 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 of 10,000 MW in FY14.
quarter of FY14, Suzlon Group turned EBITDA
positive for the first time in eight quarters. With this, Market Outlook is Bright
the Group is now gradually transiting from a
restructuring mode to a stable phase. As mentioned earlier, the global wind market is
poised for a new phase of growth. The wind energy
Best-in-class Operation, Maintenance & Service market is likely to surge by 40% in FY15. The medium
(OMS) has been one of our key strengths. We to long term outlook for our business remains
decided to carve out our OMS business of India into robust as the life cycle cost of energy from wind
a separate wholly owned subsidiary namely, Suzlon continues to target grid parity in most markets.
Global Services Limited with an aim to bring better Lower cost of energy, energy security, provision of
transparency and help realize business efficiencies. 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.
maintained its global market share in 2013 despite
adversities. Your company today is the fifth largest The medium term outlook for the wind sector in
wind turbine manufacturer in the world both in India has improved significantly. The Government’s
terms of annual as well as cumulative installed clear thrust on energy security and renewable
capacity. India has been a flywheel to our business. energy is epitomized in the recently presented
Expectedly, we carry on to maintain our leadership Union Budget that outlined the measures to boost
position during FY14. the wind energy sector. Accelerated Depreciation
(AD) of 80% which was discontinued in 2012 has
We continue to bolster our order book to secure our been reinstated this year to stimulate investments
future business. The Group now boasts an order and provide further momentum for the Wind
backlog of US$ 7.6bn as of March end. energy sector. AD also offers additional return for
those Indian companies, who would like to set up
Strong Performance of captive power plants and hedge their power cost for
Senvion Continues 25 years. Furthermore, the Government has now
announced that investment in wind energy as one of
Our German subsidiary REpower, now rechristened the qualified CSR activities under section 135 of the
as Senvion continued to perform well. Over the last Companies Act, 2013. Income tax holiday under

Suzlon Energy Limited, Annual Report 2013-14 | 3

 section 80IA has been extended till 2017. With these Most importantly we are once again preparing the
measures the Indian wind energy market is organization for growth. As a Group, we continue to
expected to surge and Suzlon is well positioned to 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
enhance value creation for our Shareholders. leadership within the industry.

Building on our Edge We are thankful to all our stakeholders who

continue to show faith and confidence in us. My
special thanks to all the shareholders and bankers
Our priority for FY15 will be to further strengthen our
who have shown extra ordinary patience and
order book by unlocking and expanding our share in
support towards us that has paved the path for our
the growing offshore and emerging markets. We will
resurgence. I, the Management Team of the
enhance our global competitiveness by leveraging
Company, and every member of the Suzlon family
our technology edge and investing in development of
remain grateful for your continuous support – and,
new products with high yields.
with it, we are confident of powering a better and
greener tomorrow.
Senvion already has the distinction of having built
the largest commercial wind turbine, the 6.2 MW
Warm regards,
turbines. It continues to maintain its technology
leadership by introducing a range of new product
Tulsi Tanti
variants in the 3MW & 6MW series. Suzlon Group is
Chairman
in the process of developing and commercializing of
the S97-120m (hybrid tower), S111, 3M-122m and Pune, 25th July, 2014
6.2M-152m. These products will change the
business dynamics providing a competitive edge for
the Group. The Group stands committed to bring
down the cost of energy and thereby maximize
return on investments for our customers.

Looking Ahead
We will bolster our balance sheet further by
rebalancing our capital structure and monetizing
non-core assets, thereby reducing our Indian Rupee
debt burden and interest costs. During the last two
years we have been transformed into a more leaner,
flexible and scalable company and today are much
better prepared for the future challenges the
industry poses.

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

Suzlon Energy Limited and its subsidiaries

Rs in Crore
Particulars 2013-14 2012-13 2011-12 2010-11 2009-10

Revenue from operations 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
Net profit / (loss) (3,520) (4,724) (479) (1,324) (983)
Equity share capital 498 355 355 355 311
Net worth (544) 320 4,978 6,526 6,601
Gross fixed assets 18,055 15,809 15,161 13,265 11,951
Net fixed assets 13,948 12,382 12,602 11,332 10,574
Total assets 30,315 29,216 32,427 29,220 29,205
Book value per share* - Rs (2.2) 1.8 28.0 36.7 42.4
Turnover per share* - Rs 81.2 105.5 118.6 100.6 132.5
Earning per share* - Rs (15.7) (26.6) (2.7) (7.8) (6.4)
EBIDTA / Gross turnover (%) -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

6 | Suzlon Energy Limited, Annual Report 2013-14 Suzlon wind farm in Utah, USA
TRANSFORMATIVE, PROACTIVE AND
RESPONSIVE: THE CSR PHILOSOPHY

Suzlon is committed to
invest in resources which
promote sustainability
As a company involved in renewable energy and partnership in development, with all stakeholders
espousing economic, environmental and social making their own contributions to enhance natural,
sustainability, Corporate Social Responsibility is very financial, social, human and physical resources. We
much a core of Suzlon’s existence. CSR is have a multi-pronged approach: Transformative
implemented through the Suzlon Foundation (working with internal stakeholders), Responsive
covering neighbourhood villages in 8 states and the (working with neighbourhood communities to
Union Territory of Daman, with an approach of offset our footprint) and Proactive (working for
integrating CSR in all the business functions with overall sustainability of the planet).
a 5-capital sustainability framework. It is a

Education initiative in Gujarat, India

Suzlon Energy Limited, Annual Report 2013-14 | 7

 Touching lives in a myriad ways
• 347 villages, 31591 families, 237 schools, 18,686 • Plantation of 16,638 trees with cumulative
students and 1,041 community groups figure reaching over a million spread over 5 years
• Health care for 41,362 animals • 3,196 employees involved in CSR programs
contributing 5,053 days in the year
• 345 solar lights increased the availability of
electricity for many families
• 2,172 kg waste recycling reduced damage to
environment

8 | Suzlon Energy Limited, Annual Report 2013-14

Kind words for kind deeds
“Suzlon and the Suzlon Foundation are doing good "I am highly appreciative of Suzlon Foundation's
work for the community and they are the only wind social concern in health as well as environment
turbine company doing such activities in our areas. With SF and other organization's
Panchayat.” collaborations we are able to organize 22 camps in
------------------ Mundargi taluka and already 705 needy patients
Mr. John Peter underwent IOL free cataract operations. Impressed
President, Ukkirankottai Panchayat, Tamil Nadu, India with SF in promoting environmental activities in
Kapatgudda by involving community and students .
As a social concern team, I am happy to have Suzlon
“Partnership between CSR and Operations and
team in Mundargi area.”
Maintenance Services has helped the Rajasthan
OMS team to build a good relationship with the ------------------------
communities which in turn has helped us resolve Dr. P.B. Hiregoudar
many local issues.”
Medical Officer - AYUSH Department,
------------------ Taluk Government Ayurvedic Hospital, Mundargi,
Mr. Sunil Joshi
Dist. Gadag, Karnataka, India
State Head, OMS, Rajasthan, India

Livelihood tailoring training

in Rajasthan, India

Suzlon Energy Limited, Annual Report 2013-14 | 9

 Awarded widely, respected highly
• Corporate Social Responsibility Award
Business World-FICCI 2011-12
Socially responsible company
• Asia’s Best CSR Practice CMO Asia 2011-12
Best CSR Practices
• Green Business Leader FE-EVI 2010-11
Green Business Leader
• Aajtak Care Award Today’s Group 2011-12
Environment Category

Health checkup camp in Gujarat, India

10 | Suzlon Energy Limited, Annual Report 2013-14
REACHING HIGHER,
GOING FURTHER

Awards & Recognitions

Having crossed the 24,700 MW of global installed
capacity milestone, Suzlon bagged another honor
by receiving the “Top 100 CISO Award” for its
OMS information security project.

Some of the prestigious awards received by Suzlon &

it’s visionary leader were :

• Mr. Tulsi Tanti was honored with Champion of

the Earth title for Entrepreneurial Vision by the
United Nations Environment Program

• Times Heroes of the Environment Award for

Mr. Tulsi Tanti, for initiating action on Global
Climate Change

• Asia’s Most Promising Leader from India –

Mr. Tulsi Tanti, World Consulting & Research
Corporation

• Asia’s Most Promising Brand – by World

Consulting & Research Corporation

• ‘Superbrand’ status

• P.A.L.S is an acronym for the Pure Air Lovers

Society and is Suzlon’s impactful and successful
environment campaign. P.A.L.S. received the
Indian Digital Media award – Best Integrated
Campaign for social causes across all digital
platform

Suzlon wind turbines at the Renew Power Windfarm,

Welturi site in Maharashtra, India

Suzlon Energy Limited, Annual Report 2013-14 | 11