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COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Tulsi R. Tanti Chairman & Managing Director
Mr. Vinod R.Tanti Executive Director
(appointed w.e.f. 01/11/2010)
Mr. Girish R. Tanti Non-Executive Director
(ceased as executive director w.e.f. 30/07/2011)
Mr. Ajay Relan Independent Director
Mr. Ashish Dhawan Independent Director
Mr. V. Raghuraman Independent Director
Ms. Mythili Balasubramanian Independent Director
(a nominee of IDBI Bank Limited w.e.f. 01/11/2010)

SECTION 2
Mr. Rajiv Ranjan Jha Independent Director
(a nominee of Power Finance Corporation Limited w.e.f. 28/04/2011)
Mr. Pradip Kumar Khaitan (resigned w.e.f. 28/04/2011) Non-Executive Director

COMPANY SECRETARY

Mr. Hemal A. Kanuga

AUDITORS

SNK & Co. S.R.Batliboi & Co.

Chartered Accountants Chartered Accountants
E-2-B, The Fifth Avenue, C-401, 4th Floor, Panchshil Tech Park,
Dhole Patil Road, Near Regency Hotel, Yerawada,
Pune - 411001, India Pune - 411006, India

BANKERS / INSTITUTIONS
Axis Bank Indian Overseas Bank
Bank of Baroda Life Insurance Corporation of India
Bank of India Power Finance Corporation Limited
Bank of Maharashtra Punjab National Bank
Central Bank of India State Bank of Bikaner and Jaipur
Citibank, N.A. State Bank of India
Corporation Bank State Bank of Patiala
Dena Bank The Saraswat Co-operative Bank Limited
Export Import Bank of India Union Bank of India
ICICI Bank Yes Bank Limited
IDBI Bank Limited

REGISTERED OFFICE CORPORATE OFFICE

“Suzlon”, 5, Shrimali Society, One Earth, Hadapsar, Pune - 411 028, India
Near Shri Krishna Complex, Tel.: +91.20.6135 6135, 6702 2000
Navrangpura, Ahmedabad - 380 009, India Fax: +91.20.6702 2100
Tel.: +91.79.26471100; Fax: +91.79.2656 5540
Email: [email protected] Website: www.suzlon.com

REGISTRAR AND SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17-24, Vittalrao Nagar, Madhapur, Hyderabad - 500 081, India
Tel: (91 40) 44655000; Fax: (91 40) 23420814; Toll Free No. 1800-3454-001
Email: [email protected], Website: www.karvy.com

Suzlon Energy Limited, Annual Report 2010-11

 contents
Section 1
Vision 1
Letter from the Chairman 2
Financial Highlights 4
Human Resources 7
Technology, Research & Development 11
Manufacturing and Supply Chain 15
Operations, Maintenance and Services 17
Quality, Environment, Health & Safety 19
Corporate Social Responsibility 23
Markets 27

Section 2
Directors’ Report 31
Conservation of Energy, etc. 37
Group under MRTP Act, 1969 38
Management Discussion and Analysis 39
Corporate Governance Report 47
Employee Stock Options Plan 63
Financial Statements 66
Section 212 Report 105
Consolidated Financial Statement 108

Suzlon Energy Limited, Annual Report 2010-11

 Vision
To be the technology leader in the wind
sector.

To be in the top three wind companies in all

the key markets of the world.

To be the global leader in providing

profitable, end-to-end wind power solutions.

To be the “stakeholders’ choice” company.

Suzlon wind farm in Minnesota, USA.

Suzlon Energy Limited, Annual Report 2010-11 1

Letter from the Chairman
The defining focus for the global economy over the past year report by the US Energy Information Administration projects
has been the slow road to recovery, and even as governments that, by 2016, wind will be cheaper than even coal in pure
and policy makers tried to make this a sustainable recovery, cost-per-kilowatt/hour terms.
the central issue facing the world today remains energy and
However, wind today competes as not only a cost effective
how we meet our growing need for it.
energy source, but as a sustainable, environment-friendly and
The evidence is clearly before us, there are today 1.5 billion long-term energy solution. With the developing world’s ever
people around the world with no regular access to power – no increasing need for power, and the global need for more secure
light, no electricity for basic day-to-day appliances, and no energy supplies – there is no doubt that wind will be the key
power to operate machines for agriculture, or to pump water. renewable resource for the world in the years to come.
A lack of access to energy for them results in no access to
This is reflected in the rapid growth of wind in key growth
food, water or decent health facilities. Sustainable
markets the world over. Emerging markets have delivered
development requires we not only focus on urban
strong growth, India – our home market – showed strong
development, but bringing basic – and essential –
momentum which we see continuing over the mid-term.
development to those who need it the most.
Other emerging markets, such as Brazil, China and South
With sustainable development as a clear priority alongside Africa, offer strong potential and remain a priority for us. Our
climate change and energy security concerns, a roadmap to a depth of experience in emerging economies, as well as our
sustainable energy mix is clearly a global priority. unique business model, put us in an extremely strong
position to compete in these high growth markets.
Over the past year the wind energy sector has continued to
consolidate its position as a mature, cost effective and While some developed markets continued to present a
increasingly mainstream source of power. Global macro- challenging environent due to macro-economic challenges,
economic trends have had a visible impact on the growth of Europe’s 20 per cent by 2020 renewable targets, alongside
the sector with growing momentum in emerging markets, developments like Germany’s recent decision to shut down
and offshore wind showing strong promise in select mature its nuclear plants and Australia fixing a price for carbon – have
markets. all put in place strong drivers for the wind sector. With
Europe’s limitations in land area, the opportunity for this
The increasingly large scale of projects and advances in
growth is clearly offshore. And with REpower’s leadership in
technology, alongside external factors like increasing
offshore wind technology, this is again a market we are well
volatility in fossil fuel supplies and prices, have reinforced
positioned in.
wind’s position as a cost competitive power source in
comparison with conventional fuels. Industry estimates show Looking at our business performance, we have over the past
that the cost of wind power has come down by over 30 per year focused on driving improvements on all our key
cent in just the last three years, and a recently published operational parameters – and the results are clearly seen in

2 Suzlon Energy Limited, Annual Report 2010-11

 Looking ahead, I believe we are strongly positioned to
compete and win in the global marketplace. We have focused
our efforts on five key areas:
First, market positioning: our decision to focus on emerging
Wind today competes as not only a markets like Brazil, China, India and South Africa, and Europe
and UK for offshore, has clearly been well founded with these
cost effective energy source, but as a markets driving growth for the entire sector. With our global
sustainable, environment-friendly reach, customer relationships with 11 out of the top 15 wind
customers, high reliability and uptime, 17 GW of installations –
and long-term energy solution. With including 220 MW installed and nearly 600 MW in
development offshore – we present a compelling value
the developing world's ever
proposition.
increasing need for power, and the Second, product portfolio: from the latest S9X and 3XM
global need for more secure energy offerings, to the REpower 6M – the world’s largest
commercially available wind turbine – we have the the widest
supplies – there is no doubt that wind product portfolio, and a turbine for every type of site in the
world.
will be the key renewable resource
Third, low-cost manufacturing and supply chain: with our
for the world in the years to come. manufacturing base concentrated in low-cost countries we
have among the lowest production costs in the industry. At a
time when the wind industry is still exploring manufacturing in
India and China, we are successfully leveraging our well
developed and mature low cost supply chain in these countries.
Fourth, consolidation: with the current economic climate
there is an opportunity for consolidation in the sector; at
Suzlon we have the opportunity to achieve this within the
Group. We have rationalized and strengthened internal
the steady improvement in our Group performance over the processes, leading to improved efficiency and effectiveness
fiscal. across all key operational parameters.

In terms of strategic priorities, with a challenging global Fifth, performance: we have placed a strong emphasis on
economic environment and a highly competitive wind market strengthening our balance sheet, optimizing our debt profile,
– we have placed a high priority on technology and and building a strong orderbook. We believe that the steady
innovation with a focus area lowering the cost for energy and consistent improvement in our Group financial
from wind making wind more competitive, and therefore performance over the past five quarters underscores that we
more mainstream. are headed in the right direction, and that our strategy is
delivering.
As part of this strategic focus on technology, we have over the
year successfully taken to market the Suzlon S9X suite and the Looking at the big picture, what all this adds up to is our
REpower 3XM, both of which have found wide marketplace commitment to powering sustainable development the
acceptance and major orders. These turbines have been world over. With over 17 GW of wind turbines already
designed with improved aerodynamic efficiency, larger rotor installed, and new projects going into the ground every day,
diameters and increased hub heights to deliver greater Plant we are helping generate the power that will drive the
Load Factor (PLF) and yields in medium-to-low wind regimes. sustainable, low carbon economy of tomorrow.
These products are key to our future growth strategy as the I firmly believe we are on the road to a bright future, and on
wind sector shifts from high-wind sites – which are in now in behalf of the entire Suzlon family – 13,000 strong and
relatively short supply the world over – to the more abundant working across 32 countries on six continents – I thank you for
medium-to-low wind speed sites. With these new offerings your support, perseverance and encouragement in making a
and our fleet availability (uptime) maintained at over 97 per greener tomorrow a reality, today.
cent, we present a compelling and attractive value
Regards,
proposition to our customers.
In another key step forward, we crossed the 95 per cent Tulsi R. Tanti
holding in our German subsidiary, REpower Systems SE, Chairman and Managing Director
allowing us to trigger “squeeze-out” proceedings towards Pune, June 2011
achieving 100 per cent ownership. REpower, with its
leadership in offshore technology – with offshore wind
energy projected to grow at nearly 40 per cent CAGR – and
strong position in key developed markets, forms an important
part of our strategy.

Suzlon Energy Limited, Annual Report 2010-11 3

Financial Highlights
Suzlon Energy Limited and its subsidiaries
Rs in crore

Particulars 2010-11 2009-10 2008-09 2007-08 2006-07

Sales and service income 17,879 20,620 26,082 13,679 7,986

Total Income 18,197 20,849 26,531 13,947 8,082
EBIDTA 808 943 2,816 2,051 1,393
Interest 1,136 1,195 901 532 252
Depreciation 657 663 573 289 172
Net (loss) / profit (1,324) (983) 236 1,030 864
Equity share capital 355 311 300 299 288
Networth 6,526 6,601 8,532 8,101 3,422
Gross fixed assets 13,272 11,951 17,086 6,720 4,775
Net fixed assets 11,338 10,574 15,265 5,688 4,073
Total assets 29,220 29,205 37,806 26,575 12,687
Book value per share* 36.71 42.4 56.9 54.1 23.8
Turnover per share* 100.6 132.5 174.1 91.4 55.5
Earning per share* (7.8) (6.4) 1.6 7.1 6.0
EBIDTA/Gross turnover (%) 4.5 4.6 10.8 15.0 16.8

* Figures have been adjusted for the issue of bonus shares allotted in June 2005 and stock split in January 2008 wherever
applicable.

4 Suzlon Energy Limited, Annual Report 2010-11

 Turnover Networth
30,000 26,082

25,000 20,620 8532

8101
17,879 9000
20,000 8000 6601
13,679 6526
7000
15,000 6000
7,986 5000 3422
10,000 4000
3000
5,000 2000
1000
0 0
2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 2010-11

Year Year

Book Value per share*

56.94
60.00 54.12

50.00 42.40
36.71
40.00
30.00 23.78

20.00
10.00
2006 -07 2007 -08 2008 -09 2009 -10 2010 -11

Suzlon wind farm at Hallett, Australia

Suzlon Energy Limited, Annual Report 2010-11 5

 Human Resources

Suzlon OMS team at the wind farm, in Weihai China

Human Resources: Talent to succeed
(2) To build a customer-centric organization

We are building a customer-centric organisation by

initiating employee recognition and reward and
fostering this approach in every area of business.

(3) To build a performance oriented organization

Our employees are as much a part of our competitive

advantage as our technology and innovation. We
Suzlon's HR team supports the encourage open communication, reward
development of a highly motivated, performance and provide opportunity for growth.

well-trained, work force in pursuit of (4) Quality, health, safety and environment is in our
DNA
excellence. Flexible staffing models
ensure manpower efficiency and cost We encourage every individual to implement QHSE
and offer support where there is any difficulty with
effectiveness. this implementation.

(5) Integrity – no compromise

The HR team’s contribution is vital to Suzlon’s pursuit of Project Evolution, instituted in partnership with
excellence across the business. The team’s mission is to KPMG, will assess, evaluate, strengthen and
ensure the existence of a highly talented, motivated and institutionalise integrity as a value across Suzlon
creative workforce. High quality training to develop India. It supports ethical business practice and
employee skills is viewed as a priority. HR also focuses on formalises good corporate governance processes.
building a work environment that encourages high
performance and rewards on merit. Global Learning & Development (L&D)

Hiring the best people is crucial to the company’s success. Learning and development remained a priority in 2010-11.
To achieve, this Group-level recruitment policies and HR The investment in skills development is illustrated below.
processes help attract and retain high-calibre employees.
We focus on manpower efficiency and managing Technical & functional skill development:
employee costs within budgets to deliver shareholder
value and cost management. Our flexible staffing models Program Type Wise effort Distribution
(Based on no. of Programs 2010-2011)
ensure the right numbers of employees are deployed in
Induction LDP
any business area. Behavioral
Functional 6% 1% QHSE
24% 34% Functional
The HR business objectives support the overall strategic Induction
business plans and objectives:
LDP

(1) ‘One Group - One Goal’ QHSE

Behavioral
9% Technical
Suzlon aims to foster a culture that is based on Technical
performance and teamwork. Suzlon believes that 26%

‘feeling part of a successful team’ engages and

LDP – Leadership Development Programmes
motivates employees. We are creating a culture
QHSE – programmes related to ‘quality’, ‘health’, ‘safety’, and
where 'One Team - One Goal' crosses geographies, ‘environment’
functions and business lines.

Suzlon Energy Limited, Annual Report 2010-11 7

Integration of learning & development and talent (b) Supplier training: GLD contributed towards the
management pursuit of excellence by training suppliers. Global
suppliers of critical components globally were
During 2010-11 Global L&D (GLD) and Talent Management identified. During 2010-11, 80 representatives from
functions were integrated. An ‘ISER’ framework to identify, 50 suppliers were trained on the Production Part
segment, engage and retain talent now underpins the Approval Process (PPAP).
talent management processes. A nine block performance-
based model is used to segment employees. The (c) Productivity improvement: 180 trainers have been
segmentation has been completed for 250 ‘critical’ developed through a ‘train the technical trainer’
employees in the senior leadership band. A leadership programme. These trainers trained and guided shop
competency framework has also been developed. floor employees on several key processes using
internally developed audio-visual modules
Aligning learning interventions with new product
development Collaboration with academia and institutes:

To support the organization’s new product development Suzlon is supporting The Energy Research Institute (TERI)
drive, GLD developed and implemented a learning for the two year M.Tech course in Renewable Energy
framework which caters to the needs of employees and Engineering and Management (REEM). This support
some external stakeholders. This framework has been includes faculty exchange, conducting ‘credit course’ on
integrated with the new product development process in wind energy, internship for the M.Tech students and
a staged manner. recruitment from the first batch of the programme.

L&D cost optimisation Suzlon’s learning and development programmes have

been acknowledged by the American Society for Training
In-house capability to design and deliver learning and Development (ASTD) and the International
solutions has been increased, reducing dependency on Federation of Training & Development Organisations.
external facilitators. The result is better cost control and Suzlon won the coveted ASTD BEST award for the second
consistency in the quality of delivery. In 2010-11, 195 time in a row. Suzlon received a ‘Certificate of Merit’ in
internal trainers were certified through a ‘train the the ‘Knowledge Management’ category of IFTDO Global
trainer’ process. The ratio of training days provided by HRD awards, 2011.
internal faculty to external faculty has improved from
30:70 (2008-09), 40:60 (2009-10), 47:53 (2010-11).

Support for quality improvement initiatives:

Suzlon’s Central Quality Organisation helped identify

several product and process quality improvement tracks
supported by GLD. The following are some of the
significant interventions.

(a) Quality improvement projects: 73 critical quality

improvement projects have been identified. They
allowed us to optimize the cost of production and
operations while improving the quality of products.
They were executed using ‘Define-Measure-
Analyse-Improve-Control’ (DMAIC) and 8D
methodologies. GLD designed and delivered on-the-
job training to the project teams.

Suzlon office in Chicago, USA

8 Suzlon Energy Limited, Annual Report 2010-11

 Technology, Research
& Development

REpower offshore wind farm in Thornton Bank

Technology, Research & Development: Global leader in
wind turbine generators
Suzlon continues to expand its intellectual property
rights (IPR) developing a substantial amount of new IP
and increasing the number of patent families.

Technology teams

The Technology Organisation continued to build capacity

The focus of our R&D is on overall life during the year at Technical Centres in Germany,
Netherlands, Denmark, India and China.
cycle costs and customer return on
investment. In the past year extra Suzlon global technical centres driving innovation and
cost leadership
emphasis has been placed on project
management, systems engineering, Technology-related development is carried out in
collaboration with the supply chain organisation, third
and certification. party suppliers, and with the business units which sell and
operate wind turbines across regions.

The Technology Organisation is home to applied research,

The company continues to expand its technological
product development and technical support. The full
capability since technology is central to wind market
spectrum of expertise is covered, including mechanical
leadership. The focus is on overall life cycle costs and
design, aerodynamics, material science, electrical design
customers’ return on investment mean continued
and software development. In the past year, extra
improvements in reliability, product, operation and
emphasis has been placed on project management,
maintenance cost and energy cost reductions. Suzlon’s
systems engineering, and certification.
Technology Organisation is a global leader in wind
turbine generator research and development.

Research Centre, Hamburg - Germany

WTG Product Development, Hamburg, Berlin & Rostock - Germany
Blade Development and WTG Product Development,
Aarhus - Denmark
Blade Development, Hengelo - The Netherlands

WTG Product Development

and Technical Services
Group, USA

Blade Testing Center, Vadodara - India

Technical Services Group, Pune - India Technical Services Group and
WTG Product Development, Pune WTG Product Development,
Gearbox Tech Support, Chennai - India Shanghai and Tianjin - China
Technology Centres
Proposed Technology Centres
OMS Engineering Regions

Suzlon Energy Limited, Annual Report 2010-11 11

As wind turbine generator development becomes more
complex, additional focus is required on the sub-projects
which produce enhancements or new products. The
Department continues to raise the standard for the level of
coordination within and across these sub-teams. This
requires increased expertise in project management. In
addition, the array of internal interfaces and sub-system
interactions grows in complexity. For this reason, more
formal systems and engineering practices are being used to
ensure optimum WTG performance and reliability. Third
party WTG certification becomes increasingly important
for our customers and their financiers. The Technology
Organisation has expanded its capacity, strengthened
internal processes and instituted formal management
reviews with the key certifying agencies.

Safety guidelines that are an integral part of the

Technology Organisation curriculum are followed to the Asia's first state-of-the-art Rotor
letter. The health and safety record remains exemplary.
Blade Testing Facility in Gujarat, India
Tighter collaboration with RETC

Research work by RETC (Renewable Energy Technical These products deliver 14 - 19 per cent additional energy
Centre) – a Suzlon / REpower joint venture, is being yield and offer improved ease of operation, transport,
integrated with WTG product development teams. RETC is installation & commissioning, and improved
active in basic research, training, innovation, and serviceability. Customers benefit from improved cost of
development of superior technical processes. energy and return on investment.

S9X product development During 2010-11, REpower commenced two new series
3.XM variants. The series includes two different turbine
The S9X development during 2010-11 has been an types. The turbines can also be deployed optimally in
excellent example of fully integrated, cross-functional lower wind speed areas and in hilly or forested terrains.
collaboration across all parts of Suzlon. The various
technical centres, supply chain and the regional offices A new MM series wind turbine was introduced by
have worked together. The S95 and S97 models have been REpower. The turbines, the REpower MM100, are
built on the proven S88 platform which has a fleet-wide specially adapted for the North American market. The
availability (up-time) of better than 97 per cent world- product is suitable for low wind speeds, and will enhance
wide – in all weather conditions, voltage and grid output.
requirements.
5M and 6M onshore / offshore wind turbines were also
The S95 2.1 MW turbine has been optimized for Wind added to the turbine portfolio in the large turbine
Class IIa and introduces DFIG (Doubly Fed Induction segment. With rated output of 5,075 kilowatts and rotor
Generation), third generation rotor blade design and an diameter of 126.5 meters, the 5M is one of the largest
array of other advances over the S88 2.1 MW turbine. and best performing wind turbines. With rated output of
The S97 2.1 MW turbine is similar to the S95 2.1 MW 6.15 MW, the 6M turbines are the technological
turbine and has been optimized for Wind Class IIIa. successor to the 5M as well as being suited for use in deep
waters.

12 Suzlon Energy Limited, Annual Report 2010-11

 Manufacturing and
Supply Chain

Suzlon manufacturing facility

in Puducherry, India
Manufacturing and Supply Chain Management (SCM):
World class manufacturing in the US, Asia and Europe
requirements and pressure to bring down costs despite
rising commodity prices.

SCM’s focus was on establishing supply security,

production flexibility, product reliability, and statutory
compliance.

From a customer service perspective, SCM made

improvements in product quality and on time delivery
during the year. The process of resolving field non-
compliances has been expedited. SCM has also extended
In 2010/11 SCM's focus was on full service and spares support to SBUs.
e s t a b l i s h i n g s u p p l y s e c u r i t y,
During the year SCM utilised the Potential Failure Modes
production flexibility, product and Effects Analysis (PFMEA) quality tool to enhance the
reliability, and statutory compliance. manufacturing process and skill deployment. It also
made use of a Production Part Approval Process (PPAP)
drive to enhance the supplier’s manufacturing processes
and bring ‘first time right’ product and focus on EHS.

SCM also embarked on a cost management drive. As a

Supply Chain Management (SCM) is the largest business result, the objective to bring the lowest delivered cost to
vertical in Suzlon and supports the manufacturing of the customer has been achieved.
parts for wind turbine generators (WTG). It operates
world-class manufacturing plants in India, China, USA, Overall SCM has undertaken a structured engagement
Germany and Portugal. programme with all its stakeholders - customer side as
well as supply side - and it is now fully aligned at an
During 2010-11 SCM met many challenges, including operational and strategic level. Going forward SCM’s
constrained and volatile demand, changing customer focus will be on capability enhancement.

Comprehensive product portfolio

Suzlon REpower

Model Rating Application Model Rating Application

S52 600 kW Onshore MM100 1.8 MW Onshore

S64/66 1.25 MW Onshore MM92 2 MW Onshore

S82 1.5 MW Onshore MM82 2 MW Onshore

S88 2.1 MW Onshore 3.2M114 3.2 MW Onshore

S95 2.1 MW Onshore 3.4M104 3.4 MW Onshore

S97 2.1 MW Onshore 5M 5.0 MW Onshore / Offshore

S88 DFIG 2.25 MW Onshore 6M 6 MW Onshore / Offshore

Suzlon Energy Limited, Annual Report 2010-11 15

 Operations, Maintenance
and Services

Suzlon windfarm at snowtown, Australia

Operations, Maintenance and Services: Excellence in
customer service
to determine the level of satisfaction among wind farm
operators. Regular services as well as maintenance and
repairs service, are evaluated. Among all the established
manufacturers, the Company secured the second place
in 2010, against the fourth place it occupied in the
previous year.

Suzlon opened a new 66,000 sq. ft.

facility in Chicago, Illinois which is the
hub for pre-planned logistics across
the US. This further improves the
service level to customers and lowers
overall operating costs.

Suzlon’s Global Operations Maintenance & Services

(OMS) teams work 24 hours, and provides customer
tailored service and maintenance options.

To support its North America operations, Suzlon opened

a new 66,000 sq. ft. facility in Chicago, Illinois. It is the hub
for pre-planned logistic runs that flow out on four
pathways across the United States on a regularly
scheduled ground network to deliver and pick up parts.
This further improves the service level to customers and
lowers overall operating costs.

As a part of their training programme OMS, field

technicians and monitoring centre specialists rotate
assignments to further improve collaboration, processes,
and overall enterprise knowledge.

Five Suzlon Monitoring Centres (SMC) across the globe

utilise Suzlon’s own Supervisory Control & Data Suzlon windfarm at
Acquisition (SCADA) network. Using SCADA, the SMCs Ocotillo, USA
collect data on power output, system performance,
meteorological conditions, as well as monitoring key
components such as generators and gearboxes to control
and regulate the vast Suzlon fleet. Customers can also
dial into the SCADA system, using the secure Suzlon
Customer Portal, to check the current status and
performance of their assets.

The German Wind Energy Association (BWE) carries out

an annual service survey for the German market in order

Suzlon Energy Limited, Annual Report 2010-11 17

 Quality, Environment,
Health & Safety

Suzlon manufacturing unit at Puducherry, India

Quality: Cornerstone of success
New product development

We use this methodology to define what a new product is

and from that definition agree responsibilities and roles.
Work is divided into small tasks and well defined work
modules linked to the structure of the organisation.

Our stage gate methodology for new product

development ensures:

• Customer focused new product, ideally with clear

differentiation factor
• Effective research before development begins

Cross functional collaboration and a • Spiral development loops with users throughout
development
systematic approach to problem • Effective, cross-functional teams as major key to
solving are key to the ongoing pursuit reduce cycle time
• Metrics, accountable teams, profit/loss reports for
of excellence.
continuous learning
• Lean, scalable and adaptable stage gate process

Design change management:

Quality management is central to Suzlon’s pursuit of
excellence. At Suzlon, quality management covers the The major objectives of the design change management
entire value chain and involves the implementation of process are:
sustained quality improvement initiatives against
benchmarks. Quality management is geared to meeting • Pre-agreed budget and resource allocation for each
customers’ expectations with respect to quality standards. product
• Techno-commercial evaluation and prioritisation of
The quality management vision is allied to the Group’s change requests and upfront project planning
vision. It seeks to ensure quality performance reviews are
• Cost, quality and time service level agreements for
measured against historical performance and company
solution development
benchmarks.
• Stage gate processes including sufficient testing and
Quality management: Strategy to reality validation
• Version release post cross functional commercial
During 2010-11 the following quality improvement reviews
initiatives were undertaken:
• Coordinated implementation of changes in
PDCA (Plan, Do, Check and Action): manufacturing, projects and OMS

The PDCA principle is used as an iterative problem-solving Skills enhancement programme:

methodology and self-evaluation tool. By focusing on NCR
The Quality Management team has worked hard during
review, QMS and HSE OSHAS (ES) certifications the
the year to identify learning needs and introduce training
business has achieved its next level of excellence.
to increase skill levels.
Failure Modes and Effects Analysis (FMEA):
Quality improvement programs:
FMEA is used to assess root cause of failures and to
Quality improvement programmes in the critical areas of
identify quality improvement programmes. Through the
operations were used to address issues such as product
use of FMEA Kaizens and QCP implementations we are
failures, component failures, rejection rate, line and field
eliminating repetitive failures.
non-conformances and customer complaints. Cross
functional collaboration and a systematic approach to
problem solving are key to our ongoing pursuit of
excellence.

Suzlon Energy Limited, Annual Report 2010-11 19

Management system certifications
(Quality, Environment, Occupational Health and Safety):

Suzlon is an ISO 9001:2008, ISO 14001:2004 and OHSAS

18001:2007 certified company. The process, systems and
documents continue to be audited by external agencies.
They help us establish our performance against industry
benchmarks while our quality records demonstrate the
efficacy of the quality management system.

ReQIE (Renewable Quality Improvement to Excellence):

ReQIE – an annual recognition model implemented in

2009-10 - reinforces the importance of manufacturing
excellence. Teams are recognized for their achievements
against organizational benchmarks.

Global HSE Council

Suzlon HSE (Occupational Health, Safety & Environment) is

a global initiative that establishes a company-wide
practice setting up and maintaining the highest HSE
standards. With senior leadership support, Suzlon’s HSE
vision and mission are being institutionalised by the Global
HSE Council. This body plays a pivotal role in tracking key
HSE initiatives, development of global management
policies, governing guidelines and HSE best practices.

Research & Development Centre

at Edegem, Belgium

20 Suzlon Energy Limited, Annual Report 2010-11

Corporate Social
Responsibility

Education initiative in Rajasthan, India

Corporate Social Responsibility: Beyond business
Suzlon Foundation maps impacts on social, natural,
human, financial and physical capital around its businesses
and undertakes programmes to offset those. In 2010-11
the scope of its CSR activities continued to grow as shown
below:-

During the year the Suzlon Foundation:

• Strengthened the 125 programmes introduced in

previous years
During the year the Suzlon Foundation, • Partnered with 32 civil society organizations and 13
Government departments
strengthened the 125 programmes
introduced in previous years. It Social capital:

partnered with 32 civil society Suzlon’s CSR activities are designed in consultation with
community-based organisations (CBOs).
organizations and 13 Government
departments. In 2011-12: Suzlon Foundation worked with:

• 2,029 CBOs
• 1,746 self-help groups

Suzlon’s corporate social responsibility (CSR) activities are • 283 village development committees, user groups
facilitated and overseen by Suzlon Foundation. and producer cooperatives.

Suzlon employees are encouraged to participate in a range All villages in the immediate vicinity of Suzlon’s operations
of ‘Responsible Citizen’ programmes. In the past year, as have at least one forum committed to village
well as contributing their time, Suzlon employees donated development; 20,106 community members lead these
Rs. 2.8 million towards various programmes. development initiatives and half are women.

More than 115,000 families have benefitted from Suzlon’s Natural capital:
CSR activities in the past year.
As a responsible custodian of the land, Suzlon’s CSR
initiatives include natural resource management (NRM)
Locations
projects such as rainwater harvesting, fodder production
60
53 53
and tree planting.
50 48

40
In 2010-11:
10
30
5
• NRM projects were undertaken on 1,862 hectares of
20 land, across the five Indian states where Suzlon has
10 wind farms
0 • 3,771,376 M³ of water was conserved
2006-07 2007-08 2008-09 2009-10 2010-11
• 233,226 trees were added to the 800,000 planted in
previous years
Villages
900
Human capital:
846
800
700 Suzlon Education projects touched 51,500 students in
600
408
more than 800 villages through 471 schools. Activities
500
353 included teacher training, introduction of basic
400
300
100 technologies in schools, provision of teaching aids, set-up
25
200 and stocking of libraries, and the upgrading of school
100 infrastructure.
0
2006-07 2007-08 2008-09 2009-10 2010-11

Suzlon Energy Limited, Annual Report 2010-11 23

• 1,960 students in Maharashtra received technical The 2010-11 CSR budget utilisation:
education in schools
• 1,770 students in Gujarat benefitted from Proactive Transformative
environmental education and life skills training Physical CSR CSR
Capital 1% 2%
Human 15%
Community Health programmes benefited over 85,569 Capital
individuals with preventative health care 4%

Social Capital Financial Capital

• Suzlon’s Community Outreach programme reached
17% 43%
out to 61,856 patients with 19 doctors and 20 mobile
clinics Natural Capital
18%

Financial capital:

To assist the communities in which we operate, Suzlon

Foundation introduced an ‘Integrated Agriculture Based Operational excellence:
Livelihood Programme’ in five states. As a result:
Suzlon Foundation carries out a six-month 360 degree
• 80,000 animals received a round-the-year preventive assessment of all CSR projects. Stakeholder responses
health care. Approx. 400 acre of land is now yielding show CSR projects to be highly relevant. Future focus is on
fodder providing nutrition to livestock. Healthier improving adequacy of coverage, efficiency in use of
cattle and higher yields improve the financial well resources and sustainability.
being of communities
Overall Parameter-wise Rating 2010
• Self-help group members saved Rs.20 million and
Relevance
accessed credit of over Rs.30 million, of which nearly
60 per cent was used for agriculture and livestock 82.45

purposes
• 71,443 families are benefitting from increased
incomes
Sustainability 73.24 74.04 Adequacy

Physical capital:
74.46
Most of the villages around our wind farms lack basic
infrastructure for sanitation, drinking water and electricity.
Suzlon Foundation has supported 846 remote villages in Efficiency
reviving drinking water sources, providing solar electricity,
and improving sanitation.
Awards and recognition:
Civic amenities No. of No. of families
units benefitting Suzlon received the Financial Express and EVI’s “Green
Business Leader” award 2010.
Drinking water sources 143 29,828
Sanitary blocks / soakpits 1017 2,500
Solar electrification 978 978
Commodity stores 50 6,250
Libraries / computer centers 17 1,000

Building drinking water resources

in Gujarat, India

24 Suzlon Energy Limited, Annual Report 2010-11

 Markets

Suzlon wind farm in Dhule, India

Markets: Meeting demand across the world
Several new initiatives were launched during the year. The
turbine installation manning model was varied to include
external cranes. Three-section towers for the S88 were
introduced. Tower cables materials were changed from
copper to aluminium reducing costs and minimising
delays. The introduction of lifts in towers has reduced
service technician fatigue.

Significant achievements in the year

On the Indian subcontinent a total
• Australian S88 turbine fleet achieved more than 97
capacity of 955MW was commissioned
per cent availability
during 2010-11 maintaining Suzlon's • Two S97 and S95 prototype installations were
market leadership for the 13th approved at Snowtown and Bluff Wind Farm in South
Australia
consecutive year. Growth markets
include eastern Europe and a new REpower is present in this market through its subsidiary
REpower Australia Pty Ltd. and is also based out of
business in Canada. Melbourne. It is the exclusive distributor of REpower wind
turbine technology in Australia, New Zealand and the
Southern Pacific Region.

Suzlon businesses continued to show strong performance The Group has an employee base of over 320 in Australia,
in all regions. Highlights are included below. spread across its head offices, nine site offices and
warehousing facilities in Jamestown, South Australia.
India operations
On the Indian subcontinent a total capacity of 955MW was Brazil operations
commissioned during 2010-11. This meant the company
maintained its market leadership for the 13th year in a Arthur Lavieri was approinted CEO and Suzlon expanded
row. its presence with new offices in São Paulo and
Riode Janeiro. The sales function was strengthened.
Significant achievements in the last year
Significant achievements in the last year
• Repeat business of approximately 45 per cent of total
order volume shows value of dedicated customer • The fleet of 185 S88 turbines ran above 99 per cent
relationship management availability

• Suzlon commissioned its maiden 10 MW project in • The company installed the first wind turbine of the
Sri Lanka, a neighbouring country to India Alhandra I project in a record 70 days
• Four projects and over 140 MW installed capacity
Award and Recognition mean Suzlon retained pole -position in Brazil
Suzlon won two awards, Best Capacity Addition and Best
Service Provider, from the "Wind India Awards 2011" held
by the World Institute of Sustainable Energy (WISE). China operations
Richard He became CEO of the Chinese subsidiary. We
Australia operations conducted workshops which brought together Suzlon SBU
Heads, Chinese financial institutions and Chinese
There are four projects under construction with total developers. A Chinese vice ministerial delegation visited
160MW of installations. the One Earth campus in Pune, India. They were
accompanied by government officials with renewable
These concurrent EPC projects across three states were energy portfolios and Chinese developers.
managed through the MATRIX Management structure
introduced the previous year.

Suzlon Energy Limited, Annual Report 2010-11 27

The first S88 was chosen by CEPRI as a pilot for grid related The Suzlon Group has a collective employee base of over
testing in Zhangbei wind farm. 2,700 in Europe including REpower and an installed base
of 4,800 MW.
New financing services for provision of turnkey EPC services
and vendor financing for equipment were introduced.
US operations
REpower is represented in China by REpower North
(China) Co. Ltd. catering to the North China market with A deal to co-develop a 150-megawatt project was signed
its headquarters at Baotou, in Inner Mongolia, and with Affinity Wind. SWECO also signed co-development
REpower Wind Systems Trading (Beijing) Co. Ltd. agreements with Apex Wind Energy to supply 200 MWs of
Suzlon's integrated wind turbine manufacturing facility in WTGs by January 1, 2014.
Tianjin and offices in Beijing and Shanghai along with the
REpower establishments have an employee base of During the year Suzlon made a strategic expansion into the
over 950 in China. REpower also has a wind turbine neighboring and fast growing Canadian market.
manufacturing unit in Inner Mongolia.
The installed fleet availability for more than 1,000 turbines
in the USA is stable, competitive, and consistently operates
Europe and rest of the world operations above 95 per cent availability.

Suzlon established subsidiaries in Spain, Portugal and Italy. While the group is mainly present in the USA through
The company also expanded into Romania and has a Suzlon and REpower. In the offshore led Canadian market,
sizable project pipeline in other growth markets in Eastern REpower has a strong and large footprint.
Europe. A sales office was established in Sweden.
REpower Systems SE has wholly-owned subsidiaries
Significant achievements in the last year REpower USA Corp, located in Denver, Colorado and
REpower Systems Inc. located in Montreal, in Canada to
• Two turnkey projects were completed in Nicaragua cater to North America. Both companies were founded in
both projects were completed smoothly in spite of 2007 to take advantage of the growing wind industry in the
their remote location and the limited availability of Midwest and West of the United States and offshore
subcontractors markets of Canada.
• In Bulgaria a six-turbine project was completed and
OMS capability launched
• SWEAS received ISO:9001 certification from Det
Norske Veritas (DNV)

The lead player of the group in this region is REpower for

whom this is the home market. With an impressive
presence in Europe with sales offices in the UK, Spain,
France, Italy, Portugal, Poland and Sweden, REpower is a
leading player in several European markets.

A global leader in offshore wind turbine technology,

REpower has a clear focus on markets with strong offshore
potential. It has three manufacturing units in Germany at
Trampe, Husum and Bremerhaven.

Suzlon wind farm in Paracuru, Brazil

28 Suzlon Energy Limited, Annual Report 2010-11

SECTION 2
Directors' report
Dear Shareholders,

The Directors present the 16th Annual Report of your Company together with the audited accounts for the financial year ended March 31,
2011.

FINANCIAL PERFORMANCE

The standalone and consolidated audited financial results for the year ended March 31, 2011 are as follows:

Particulars Standalone Consolidated

Rs.
Rs. in crore USD in million* Rs. in crore USD in million*
2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10
Sales and service income 4,357.55 3,488.68 977.14 776.99 17,879.13 20,619.66 4,009.22 4,592.35
Other operating income 8.84 20.25 1.98 4.51 211.10 159.55 47.34 35.53
Earnings / (loss) before 180.05 (242.70) 40.37 (54.05) 808.13 943.05 181.22 210.03
interest, depreciation and tax
(EBIDTA)
Add: Other non operating 331.67 222.89 74.37 49.64 106.60 69.46 23.90 15.47
income
Less: Interest 578.04 653.59 129.62 145.57 1,135.67 1,195.03 254.66 266.15
Less: Depreciation 156.89 126.27 35.18 28.12 657.40 662.97 147.42 147.65
Loss before tax & exceptional (223.21) (799.67) (50.05) (178.10) (878.34) (845.49) (196.96) (188.30)
Items
Less: Exceptional items 37.28 439.02 8.36 97.78 253.28 (211.89) 56.80 (47.19)
Loss before tax (260.49) (1,238.69) (58.41) (275.88) (1,131.62) (633.60) (253.75) (141.11)
Less: Current tax (19.19) - (4.30) - 146.90 181.65 32.94 40.46
(Net of earlier years tax and
MAT credit entitlement)
Less: Deferred tax (55.64) 175.40 (12.48) 39.06 38.37 174.45 8.60 38.85
Less: Fringe benefit tax 0.03 - 0.01
Loss after tax (185.66) (1,414.09) (41.63) (314.94) (1,316.89) (989.73) (295.30) (220.43)
Add: Share in associate's N.A. N.A. N.A. N.A. (27.83) 16.12 (6.24) 3.59
profit / (loss) after tax

Less: Share of loss / ( profit) of N.A. N.A. N.A. N.A. (20.75) 8.95 (4.65) 1.99
minority
Net Loss (185.66) (1,414.09) (41.63) (314.94) (1,323.97) (982.56) (296.89) (218.83)

Add: Balance brought 386.00 1,800.09 85.97 400.91 943.03 1,925.60 210.03 428.86
forward
Profit available for 200.34 386.00 44.34 85.97 (380.94) 943.04 (86.86) 210.03
appropriations
Less: Tax on dividends - - - - - 0.01 - 0.00
Less: Transfer to legal and - - - - 142.22 - 31.89 -
statutory reserve
Less: Transfer to capital - - - - 30.00 - 6.73 -
redemption reserve
Surplus carried to balance sheet 200.34 386.00 44.34 85.97 (553.16) 943.03 (125.48) 210.03

*1 USD = Rs. 44.60 as on March 31, 2011 (1 USD = Rs. 44.90 as on March 31, 2010)

Suzlon Energy Limited, Annual Report 2010-11 31

2. OPERATIONS REVIEW

On a standalone basis, the Company achieved sale of Rs.4,357.55 crore as against Rs.3,488.68 crore in the previous year. Net loss
after tax is lower at Rs.185.66 crore as compared to net loss after tax of Rs.1,414.09 crore in the previous year. Though the volumes
and performance improved compared to previous year, the costs could not be recovered fully as recessionary trends continue to
persist in Europe and the USA.

On consolidated basis, the sale is lower at Rs.17,879.13 crore as against Rs.20,619.66 crore in the previous year. Net loss after tax,
share in associate’s profit and minority interest is Rs. 1,323.97 crore as compared to loss of Rs. 982.56 crore in the previous year. In
the previous year, sale of Hansen stake contributed profit of Rs. 211.89 crore while in the current year provision towards diminution
in investment in Hansen resulted into increase in loss by Rs. 216.00 crore.

3. DIVIDEND

In view of losses incurred during the financial year 2010-11, the Board of Directors does not recommend any dividend for the year
under review.

4. CAPITAL

The movement in Authorised Share Capital and Paid-up Share Capital during the year under review is given as under:

Changes in Authorised Share Capital

The Authorised Share Capital of the Company was increased from Rs.445,00,00,000/- to Rs.700,00,00,000/- by creation of
127,50,00,000 equity shares of Rs.2/- each.

Changes in Paid-up Share Capital

The Company allotted 8,000 equity shares of Rs.2/- each at a premium of Rs.49/- per equity share i.e. at an issue price of Rs.51/- per
share pursuant to exercise of stock options by the eligible employees under the Employee Stock Option Plan-2005.

Further, the Company allotted 18,86,33,322 equity shares of Rs.2/- each at a premium of Rs.61/- per equity share i.e. at an issue
price of Rs.63/- per equity share on rights basis to the existing equity shareholders of the Company in the ratio of 2 equity shares for
every 15 fully paid-up equity shares held by the existing equity shareholders on the record date i.e. June 10, 2010 in terms of Letter
of Offer dated May 31, 2010.

Further, in terms of the Shareholders’ Agreement and Share Subscription Agreement inter alia entered into between the Company
and IDFC Private Equity Fund III (“IDFCPE”), the Company allotted 3,19,92,582 equity shares of Rs.2/- each to IDFCPE on November
16, 2010 at a premium of Rs.58/- per equity share i.e. at an issue price of Rs.60/- per share for a consideration other than cash i.e. as
purchase consideration for purchase of 4,12,54,125 equity shares of Rs.10/- each held by the said IDFCPE in SE Forge Limited, a
subsidiary of the Company.

As on date, the Authorised Share Capital of the Company is Rs.700,00,00,000/- divided into 350,00,00,000 equity shares of Rs.2/-
each and the paid-up capital of the Company is Rs.355,47,31,294/- divided into 177,73,65,647 equity shares of Rs.2/- each.

Foreign Currency Convertible Bonds (“FCCBs”)

In May 2010, the Company successfully concluded a consent solicitation exercise on the existing five series of bonds (FCCBs). The
bondholders of all the five series were asked to vote on an extraordinary resolution for removal of financial covenants on the USD
300 Million and USD 200 Million bonds and waiver of any prior breaches. As a part of this exercise, the Company paid; an aggregate
incentive fee of USD 6,019,220.00 across all existing five series of bonds.

Further, as an incentive to the above waiver and to enhance the chances of conversion of the USD 300 Million and the USD 200
Million bonds the Company reduced the conversion price of the USD 300 Million bonds from Rs.359.68 per equity share to Rs.97.26
per equity share and the USD 200 Million bonds from Rs.371.55 per equity share to Rs.97.26 per equity share and amended the
fixed exchange rates on these bonds to 1 USD = Rs.44.6000.

The shares to be allotted on such conversion of the USD 300 Million bonds and USD 200 Million bonds will aggregate to 7.90% of the
post-conversion equity base of the Company based on the equity base of March 31, 2011.

The entire exercise was carried out in accordance with the Ministry of Finance press release dated February 15, 2010 and March 15,
2010 and as per the approval of Reserve Bank of India.

The total FCCBs outstanding on the books of the Company is USD 47,90,39,000 as at March 31, 2011.

Post March 31, 2011, Company issued USD 175 Million, 5% Foreign Currency Convertible bonds at par. The Bonds are convertible at
any time on and after May 23, 2011 up to the close of business on April 6, 2016 by holders of the Bonds into fully paid equity shares
with full voting rights with a par value of Rs.2/- each of the Company at an initial conversion price of Rs.54.01 per share with a fixed
rate of exchange on conversion of Rs.44.5875 to US$1.00

5. PARTICULARS OF CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO

Information as required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in
the report of board of directors) Rules, 1988 has been provided which forms part of the Directors’ Report.

32 Suzlon Energy Limited, Annual Report 2010-11

6. SUBSIDIARIES & CONSOLIDATED FINANCIAL STATEMENTS

As on March 31, 2011, the Company has 79 subsidiaries, a list of which is given in the notes to the accounts.

I. UPDATES ON SUBSIDIARIES

Companies which became subsidiaries during the year under review

Suzlon Wind Energy South Africa PTY Ltd., Suzlon Energy Australia CYMWFD Pty. Ltd., Sure Power LLC, Renewable Energy
Contractors Australia Pty. Ltd., REpower Systems Polska Sp.zo.o, REpower Systems Scandinavia AB, REpower Portugal -
Sistemas Eolicos, S.A., Ventipower S.A. and RiaBlades S.A. became step down subsidiaries of the Company.

Companies which ceased to be subsidiaries during the year under review

Windpark Meckel/Gilzem GmbH & Co KG ceased to be subsidiary of the Company and Sister – sistemas e Technologia de
Energias renovaveis Lda was liquidated.

Changes during the year under review

The name of Einundzwanzigste Vittorio Verwaltungs GmbH was changed to REpower Systems GmbH.

Updates on REpower

The Company through AE-Rotor Holding BV, The Netherlands (‘AERH’), a step down wholly owned subsidiary of the
Company acquired an additional 4.86% voting power of REpower Systems SE (‘REpower’). AERH directly and indirectly holds
95.16% of the registered share capital of REpower. Under the German Stock Corporation Act, a shareholding of 95% in a
German stock corporation enables the majority shareholder to initiate squeeze-out proceedings in respect of minority
shareholders. The Company, through AERH, had provided a notice to the Executive Board of REpower requesting the
conduct of a squeeze-out proceeding. Accordingly squeeze-out proceeding has been initiated in accordance with German
Regulations. A successful completion of the squeeze-out proceedings will result in REpower becoming a step-down wholly
owned subsidiary of the Company. Further, AERH has informed the Executive Board of REpower that it has set the cash
compensation for the transfer of the shares from the minority shareholders of REpower to AERH at EUR 142.77 per no-par
value share in compliance with the provisions of the German Stock Corporation Act. A resolution on the squeeze-out is
proposed to be passed at the annual general meeting of REpower, which is scheduled to take place on September 21, 2011.

Updates on Hansen

The Company presently holds 26.06% in Hansen Transmissions International NV (‘Hansen’). Post March 31, 2011, AERH has
signed an irrevocable undertaking in favour of ZF Friedrichshafen AG (‘ZF’) to sell its entire equity interest in Hansen i.e.
26.06% pursuant to cash offer to be made by ZF International BV (“ZF Bidco”), a wholly owned subsidiary of ZF, for the entire
issued and to be issued share capital of Hansen at 66 pence per ordinary share which will aggregate to 115 million GBP (USD
187 million). AERH’s obligation to accept the Offer under the Irrevocable Undertaking will lapse in certain circumstances,
including if a firm intention to make an offer for Hansen’s shares is made by a third party for a consideration that is at least
12.5 per cent higher than consideration offered under the Offer or if the Offer lapses or is withdrawn.

Updates on Amalgamation and Demerger

During the year under review, a Petition under Section 391 to 394 read with Section 78 and 100 to 103 of the Companies Act,
1956 has been filed by the Company, Suzlon Towers And Structures Limited (STSL) and Suzlon Gujarat Wind Park Limited
(SGWPL) with the Honourable High Court of Gujarat at Ahmedabad and by Suzlon Infrastructure Services Limited (SISL) and
Suzlon Engitech Limited (SENL) with the Honourable High Court of Judicature at Bombay for sanctioning the Composite
Scheme of Arrangement and Restructuring (De-merger and Amalgamation) between STSL, SISL, SGWPL, SENL, the wholly
owned subsidiaries of the Company and the Company (SEL) for De-merger and Transfer of Power Generation Division of
STSL to SENL, De-merger of Project Execution Division of SISL to SGWPL, Amalgamation of STSL (after the above referred de-
merger) with the Company and Amalgamation of SISL (after the above referred de-merger) with the Company. The
Appointed Date fixed for the purpose is April 1, 2010.

The benefits that would be derived from Amalgamation and Demerger are as under:

a. Benefits of Demerger to the Resulting Companies i.e. SENL and SGWPL

i. Power Generation business requires separate and different skills altogether and hence demerging it into SENL
will help to run it more efficiently.

ii. Project Execution is part of infrastructure building in which SGWPL is currently engaged into. The business of
erection and commissioning presently undertaken by SISL, primarily in nature of infrastructure development,
requires different skills and approach to the business for which the company has to select and train its
employees to achieve high performance standards so as to meet the standards of its large and reputed
competitors in the infrastructure space. With the proposed demerger and transfer of the said division,
SGWPL would be better placed to scale up its skills in the infrastructure business and able to hire best talent
available in the industry.

iii. De-merger would help in better evaluation of performance of this business.

b. Benefits of Amalgamation to the Transferee Company i.e. SEL

Suzlon Energy Limited, Annual Report 2010-11 33

 i. Tower Business:

- The Tower business requires scaling up in view of the increased domestic market and needs focused efforts to bring
the cost down on a continuous basis with equal emphasis on the quality side as well. Synergies of Supply Chain
Management can be derived by bringing the Tower business into SEL.

- Better and efficient material management along with stores management can be achieved, ensuring on time
delivery in full.

- Quick and more responsive product improvement and R&D on tower can be made possible through well established
and more resourceful set up of SEL. Better compatibility of tower with each version of nacelle and better use of
design and technical core competence of SEL would be the key benefits accruing as a result of this merger;

- Better negotiating powers resulting into competitive sourcing of materials and services through more active support
of well established Supply Chain Management Team of SEL.

ii. Operation and Maintenance Business

- Customers will get more comfort and surety of after sales services for 20 years post commissioning, which is
becoming a key factor to get more business.

- Existing customers would feel more convinced from the fact that the equipment supplier itself is taking care of the
OMS part. Long term visibility will be provided to large customers by providing OMS services through equipment
supplier (SEL) only and thereby improving chances of availing more business from Utilities, Multi National
Companies and other big corporate customers.

- Availability of critical components from third party gets guaranteed for OMS.

- With Indian business profile picking up and with the changing scenario, customers expect OMS Service provider to
have a stronger Balance Sheet. SEL is better placed than SISL.

- Regular and online feedback from OMS Team provides enormous help in improving and upgrading the overall quality
of its equipments, which would be possible with this amalgamation.

- Better working capital management through maintenance of common stock of spares for OMS as well as for regular
production and also better Machine Availability of WTGs resulting into higher customer satisfaction.

iii. The proposed amalgamation will enhance the bargaining power resulting in cost optimization through economical
procurements from common vendors and suppliers.

iv. The proposed arrangement will consolidate the business activity of all the companies, thereby resulting into time,
transactions and cost optimization and improvisation of overall operational efficiency and quality.

v. The proposed arrangement shall improve the efficiency in cash management, organizational capability from pooling of
human capital having skill, talents and vast experience and thereby increase in competitiveness in the industry.

vi. The proposed arrangement will create enhanced value for shareholders and allow a focused strategy in operations, which
would be in the best interest of all its shareholders, creditors and all persons connected with the companies.

II. CONSOLIDATED FINANCIAL STATEMENTS

In terms of Section 212(8) of the Companies Act, 1956 read with the General Circular No.2/2011 dated February 8, 2011 issued by
the Ministry of Corporate Affairs, Government of India, general exemption has been provided to companies from compliance of the
provisions of Section 212(1) of the Companies Act, 1956 subject to compliance with conditions as referred to in the said General
Circular No.2/2011 dated February 8, 2011. The Board of Directors of the Company, accordingly, has given its consent for not
attaching the balance-sheet of the subsidiaries and accordingly, the balance sheet, profit and loss account and other documents of
the subsidiary companies are not being attached with the balance sheet of the Company. However, some key information of the
subsidiary companies as required to be provided in terms of the said circular, is disclosed under “Section 212 Report” forming part
of this Annual Report.

The annual accounts of the subsidiary companies and the related detailed information will be made available to any member of the
Company / its subsidiaries who may be interested in obtaining the same. The annual accounts of the subsidiary companies will also
be kept for inspection by any member at the Company’s Registered Office and Corporate Office and that of the respective
subsidiary companies.

The Annual Report of the Company contains the consolidated audited financial statements prepared pursuant to Clause 41 of the
listing agreement entered into with the stock exchanges and prepared in accordance with the accounting standards prescribed by
the Institute of Chartered Accountants of India (ICAI).

7. PARTICULARS OF EMPLOYEES

In terms of the provisions of section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended, the names and other particulars of the employees are required to be set out in the Directors’ Report.
However, as per the provisions of section 219(1)(b)(iv) of the said Act, the Annual Report excluding the aforesaid information is
being sent to all the members of the Company and others entitled thereto. Any member interested in obtaining such particulars
may write to the Company Secretary at the registered office of the Company.

34 Suzlon Energy Limited, Annual Report 2010-11

8. DIRECTORS

Mr. Girish R.Tanti and Mr. Ajay Relan, the Directors of the Company retire by rotation at the ensuing 16th Annual General Meeting
and being eligible offer themselves for re-appointment. Mr. Vinod R.Tanti had been appointed as an Additional Director and
Wholetime Director designated as Executive Director of the Company with effect from November 1, 2010. Ms. Mythili
Balasubramanian, a nominee of IDBI Bank Limited and Mr. Rajiv Ranjan Jha, a nominee of Power Finance Corporation Limited were
appointed as Additional Directors of the Company with effect from November 1, 2010 and April 28, 2011 respectively. In terms of
Section 260 of the Companies Act, 1956, Mr. Vinod R.Tanti, Ms. Mythili Balasubramanian and Mr. Rajiv Ranjan Jha hold office up to
the ensuing 16th Annual General Meeting of the Company and being eligible offer themselves for appointment as the Directors of
the Company.

The Board of Directors of the Company at its meeting held on February 4, 2011 has reappointed Mr. Tulsi R.Tanti as a Managing
Director and Mr. Girish R.Tanti as a Wholetime Director designated as Executive Director of the Company without remuneration for
a further period of three years with effect from April 1, 2011.

Post March 31, 2011, Mr. Pradip Kumar Khaitan, the Non-Executive Director resigned from the directorship of the Company with
effect from April 28, 2011. The Board expresses its appreciation for the valuable service rendered and matured advice provided by
him during his association with the Company. Mr. Girish R.Tanti ceased to be the Executive Director of the Company with effect from
July 30, 2011, however continues as a Non-Executive Director on the Board of the Company. The Board expresses its appreciation
for the valuable service rendered and matured advice provided by him during his association with the Company as an Executive
Director.

Further in terms of approval of the Remuneration Committee and the Board of Directors at their respective meetings held on July
30, 2011, it has been decided to pay remuneration to Mr. Tulsi R.Tanti, Managing Director and Mr. Vinod R.Tanti, Executive Director
and accordingly approval of members is being sought for ratification and appointment of Mr. Tulsi R.Tanti as Managing Director and
Mr. Vinod R.Tanti as Executive Director at the ensuing 16th Annual General Meeting of the Company.

The details of Mr. Girish R.Tanti, Mr. Ajay Relan, Ms. Mythili Balasubramanian, Mr. Rajiv Ranjan Jha, Mr. Tulsi R.Tanti and Mr. Vinod
R.Tanti, the Directors as required to be given in terms of Clause 49 of the Listing Agreement have been provided under Profile of
Directors seeking appointment / reappointment forming part of Notice convening the ensuing 16th Annual General Meeting of the
Company.

9. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956, the directors confirm to the best of their knowledge and belief that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed and that there are no
material departures;

b. the directors had selected such accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2011 and
of the loss of the Company for the year ended on that date;

c. the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities; and

d. the directors had prepared the annual accounts on a going concern basis.

10. PUBLIC DEPOSITS

During the year under review, the Company did not accept any deposits within the meaning of the provisions of Section 58A of
the Companies Act, 1956.

11. MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report on the operations and financial position of the Company has been provided
forming part of the Directors’ Report.

12. CORPORATE GOVERNANCE

As required by Clause 49 (VI) of the listing agreement entered into by the Company with the stock exchanges, a detailed report on
corporate governance is provided which forms part of the Directors’ Report. The Company is in compliance with the requirements
and disclosures that have to be made in this regard. The auditors’ certificate on compliance with corporate governance
requirements by the Company is attached to the Corporate Governance Report and forms part of the Directors’ Report.

13. EMPLOYEES STOCK OPTION PLANS (ESOPs)

As required under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999, the information pertaining to various Employee Stock Option Plans (ESOPs) of the Company has been
provided which forms part of the Directors’ Report.

14. GROUP

Pursuant to intimation from the Promoters, the name of the Promoters and entities comprising the ‘group’ as defined under the
Monopolies and Restrictive Trade Practices (“MRTP”) Act, 1969 have been provided which forms part of the Directors’ Report.

Suzlon Energy Limited, Annual Report 2010-11 35

15. AUDITORS AND AUDITORS’ OBSERVATIONS

I. AUDITORS

M/s. SNK & Co., Chartered Accountants, Pune, (Firm Registration No.109176W) and M/s. S.R. Batliboi & Co., Chartered
Accountants, Pune, (Firm Registration No.301003E) the joint statutory auditors of the Company hold office until the
conclusion of the ensuing 16th Annual General Meeting of the Company. Both the statutory auditors have confirmed their
eligibility and willingness to accept office, if reappointed.

II. AUDITORS’ OBSERVATIONS AND MANAGEMENT’S RESPONSE TO AUDITORS’ OBSERVATIONS

The Directors refer to the qualification and Matter of Emphasis in the Auditor’s Report and as required by section 217(3) of
the Companies Act, 1956, provide their explanation as under:

Qualification:

Note 3 of Schedule P of standalone financial statements and Note 5 of Schedule P of consolidated financial statements
regarding recognition of deferred tax asset aggregating Rs.55.64 crore. Auditors are of the opinion that recognition of
deferred tax asset does not satisfy the conditions of virtual certainty prescribed under Accounting Standard – 22,
Accounting for Taxes on Income as notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and have
expressed qualified opinion.

Management response:

The Company has brought forward losses which can be set off against tax liabilities which would arise on its’ future profits
and also available for set off against profits of subsidiaries getting amalgamated with the Company post implementation of
the Composite Scheme of Arrangement and Restructuring (De-merger and Amalgamation). The Company believes that
profitability in first quarter of next financial year and healthy order book in hands of the Company and the current advanced
stage of the said Scheme satisfy the conditions of virtual certainty prescribed under Accounting Standard – 22 for
recognition of deferred tax assets.

Matter of Emphasis:

Note 4 of Schedule P of standalone financial statements and Note 7 of Schedule P of consolidated financial statements
regarding non provision of proportionate premium on redemption of foreign currency convertible bonds amounting to
Rs.579.21 crore in securities premium as the ultimate outcome of the matter cannot presently be ascertained.

Management response:

In the opinion of the management, redemption of foreign currency convertible bonds is contingent in nature and the
likelihood of the same cannot presently be ascertained. Accordingly no provision for any liability has been made in the
financial statements and the proportionate premium has been shown as a contingent liability. Further, the Company has
adequate securities premium to absorb the proportionate premium on redemption as at March 31, 2011, in case the
contingency materialises.

Matter of Emphasis:

Note 6 of Schedule P of consolidated financial statements regarding non provision of Infrastructure Development Charges
('IDC') aggregating Rs.64.80 crore.

Management response:

The Indian Wind Energy Association (‘InWEA') of which the Company is a member has filed a civil appeal in the Supreme
Court against an order of the Appellate Tribunal for Electricity in regard to levy of IDC by Tamil Nadu State Electricity Board.
The matter is pending the hearing of the Supreme Court. The Company has obtained a legal opinion which states that InWEA
(and consequently the Company) has a strong case and accordingly the Company has shown it as a contingent liability.

16. ACKNOWLEDGEMENT

The directors wish to place on record their appreciation for the co-operation and support received from the government and semi-
government agencies, especially from the Ministry of New and Renewable Energy (MNRE), Government of India, all state level
nodal agencies and all state electricity boards.

The directors are thankful to all the bankers and financial institutions for their support to the Company. The Board places on record
its appreciation for continued support provided by the esteemed customers, suppliers, bankers, financial institutions, consultants,
bond holders and shareholders.

The directors also acknowledge the hard work, dedication and commitment of the employees. The enthusiasm and unstinting efforts
of the employees have enabled the Company to survive through the tough times and to show improvements on many fronts enabling it
to continue as one of the leading players in the wind industry and maintain its dominant position in the domestic markets.

For and on behalf of the Board of Directors of

Suzlon Energy Limited

Place: Pune Tulsi R.Tanti

Date: July 30, 2011 Chairman & Managing Director

36 Suzlon Energy Limited, Annual Report 2010-11

PARTICULARS OF CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO –
Information as required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the
report of board of directors) Rules, 1988 are set out hereunder.

A. Conservation of energy

The Company’s new corporate headquarter in Pune, India named ‘ONE EARTH’ is an environmental-friendly campus, with a
minimal carbon footprint on the surrounding environment. The Campus was awarded the coveted LEED (Leadership in Energy and
Environmental Design) Platinum rating and GRIHA (Green Rating for Integrated Habitat Assessment) green building certifications
for its approach towards sustainability and green practices towards infrastructure.

Suzlon continues its efforts to reduce and optimise the use of energy consumption at its manufacturing facilities by installing hi-
tech energy monitoring and conservation systems to monitor usage, minimise wastage and increase overall efficiency at every
stage of power consumption.

Particulars 2010-11 2009-10

A. Power and fuel consumption

Electricity
(a) Through purchases
Purchased units 1,15,24,219 93,93,691
Total amount (Rs.) 5,04,52,468 3,93,08,392
Rate / unit (Rs.) 4.38 4.18
(b) Own generation through diesel generator
Units generated 11,43,890 6,70,626
Units per litre of diesel oil 2.99 2.52
Cost/unit 13.20 12.81

B. Consumption per unit of production (Units / MW) 10,940.12 10,097.64

B. Research and development

The Company and its subsidiaries operate several research and testing centres in India and overseas locations. Its Blade testing
centre at Baroda, India and innovation centre at Denmark along with joint research centre with REpower (Renewable Energy
Technology Centre) continues to drive its R&D programme towards developing cost efficient and reliable wind turbine technology.

Expenditure on R&D (Rs. in crore)

Particulars 2010-11 2009-10

Capital (including technical know-how) 50.99 93.34

Recurring 25.41 21.58
Total 76.40 114.92
R&D expenditure as a % of sales 1.75 3.29

C. Technology absorption, adoption and innovation

Efforts towards technology absorption, adoption and innovation are briefly noted below:

1. Initiatives like Kaizen, Six Sigma, O&M studies, started last year, have improving productivity, reduced quality problems and
have also helped in harnessing the creative capabilities of the employees.

2. Planning for starting a product development group within India is complete and will be implemented in the coming year.
This will hasten the process of technology absorption and will also bring down the cost of development in the long run.

3. Design Change Management process has been implemented and is being made to ensure better control on cost benefit
analysis and prioritization of the design changes to ensure that we derive the maximum benefit from the limited resources.
This process will be made more robust over the next year.

4. The Company has launched 2 new products S 95 and S 97 recently and the prototypes are under measurement and
certification.

D. Foreign exchange earnings and outgo

Total foreign exchange earned by the Company during the year under review was Rs.215.07 Crore compared to Rs.1,103.93 Crore
during the previous year. Total foreign exchange outgo during the year under review was Rs.2,354.67 Crore, compared to
Rs.1,716.27 Crore during the previous year.

Suzlon Energy Limited, Annual Report 2010-11 37

PROMOTERS AND ENTITIES COMPRISING THE ‘GROUP’ AS DEFINED UNDER THE MONOPOLIES AND
RESTRICTIVE TRADE PRACTICES (“MRTP”) ACT, 1969 –
Persons forming part of the Group coming within the definition of "Group" as defined in Monopolies and Restrictive Trade Practices Act,
1969 for the purpose of inter-se transfer of shares of the Company under regulation 3(1)(e)(I) of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations,1997 include the following :

Sr. No. Name

1. Tulsi R. Tanti

2. Gita T. Tanti

3. Tulsi Ranchhodbhai HUF

4. Ranchhodbhai Ramjibhai HUF

5. Tulsi R. Tanti J/W Vinod R. Tanti J/W Jitendra R. Tanti

6. Tanti Holdings Private Limited

7. Rambhaben Ukabhai

8. Pranav T. Tanti

9. Nidhi T. Tanti

10. Vinod R. Tanti

11. Sangita V. Tanti

12. Rajan V. Tanti

13. Jitendra R. Tanti

14. Lina J. Tanti

15. Brij J. Tanti

16. Trisha J. Tanti

17. Girish R. Tanti

18. Radha G. Tanti

19. Aarav G. Tanti

20. Anya G. Tanti

21. Vinod Ranchhodhbhai HUF

22. Jitendra Ranchhodhbhai HUF

23. Girish Ranchhodbhai HUF

24. Suruchi Holdings Private Limited

25. Sugati Holdings Private Limited

26. Sanman Holdings Private Limited

27. Samanvaya Holdings Private Limited

28. Salene Power Infrastructure Limited (formerly known as Sarjan Infrastructure Finance Limited)

29. Colossus Holdings Pte. Limited

30. SE Energy Park Limited

31. Any Company / entity promoted by any of the above

38 Suzlon Energy Limited, Annual Report 2010-11

Management Discussion and Analysis
1. WIND ENERGY – A MAJOR CONTRIBUTOR TO ENERGY SUPPLY

With new installation of 38 GW during the calendar year 2010, worldwide installations of wind energy generation crossed 197 GW
which covers almost 4% of the global electricity supply.

Traditional energy sources such as coal, oil or gas are not only facing limitation of resources, but they are also causing greenhouse
gas emissions and hence cannot be seen as sustainable energy sources. At the same time, recent incidents have indicated very
clearly that nuclear power, also due to its big risks and high capex costs, is not a very viable option economically, socially and
environmentally either.

Instead, the world has to look for wind energy, in combination with other renewable energy sources. It is important to underline
that wind energy offers a very broad range of applications. It is versatile, can serve the needs of rural areas in unserved areas in
developing countries, and cater to energy intensive industries in industrialised regions and countries.

By 2015, total worldwide installation of wind energy is expected to cross over 442 GW which is almost 2.3 times of the current
installation. This will cover about 7.5% of the global electricity supply by then.

2010 2015 (expected)

Wind Energy
Wind Energy 7.43%
3.91%

Other sources Other sources

96.09% 96.09%

2. SECTOR OUTLOOK

The sector outlook is progressively looking bright for

the wind industry as it is exploiting an inexhaustible Annual Wind Market Size Expected to Rise
resource (i.e. wind) and is amongst the cheapest 60 55.82
51.16
sources of renewable energy. Improvement in wind 47.59 48.02
Annual Installation (GW)

50
42.02
power’s technical effectiveness, development of larger 38.27
40
wind turbines, and improved knowledge of siting,
30
servicing and maintenance has made wind power a
economically viable and competitive source of energy. 20

10
The other key drivers include climate change, the
0
Kyoto Protocol, the industry’s job creation potential 2010 (Actual) 2011 2012 2013 2014 2015
and a desire for greater “security of supply” for energy. ROW 2.10 3.68 5.78 7.36 9.09 10.08
Policy support models like Fixed Tariffs for the “feed China 18.93 18.98 20.20 19.43 19.58 20.03

–in” of wind powered electricity, Renewable Portfolio USA 5.12 6.50 7.50 6.25 7.00 8.00
Europe 9.98 9.86 11.11 11.79 12.19 13.81
Standards, price premium, energy taxes and other tax
India 2.14 3.00 3.00 3.20 3.30 3.90
related benefits, Investment grants and Green Total 38.27 42.02 47.59 48.02 51.16 55.82
Certificates, continue to boost development of wind
market across the globe.

Wind energy has been accepted as a mainstream renewable technology by utilities across the world, to meet their renewable
portfolio targets as mandated international and country based targets.

During the period 2011-2015, wind power is expected to grow at an annual growth rate of about 17%. In Asia strong growth is
expected, especially in China. India will continue to demonstrate high level capacity additions approximately to the tune of 3 to 4
GW per year. Growth in emerging markets such as Latin America, Southern and Eastern Europe and Africa will offset probable
short-term sluggish growth rates in the mature markets of the world.

3. SUZLON POSITIONING

This year was an important one for the Company, marking 15 years of existence and 17 GW installations worldwide. Suzlon has
achieved over 6 GW of cumulative installations in India, nearly half of the country’s total wind installations. Suzlon is the fifth largest
supplier in the world having a cumulative market share of ~ 9%.

Suzlon offers one of the most comprehensive product portfolios, ranging from 0.60 MW onshore turbines to one of the world’s
largest commercial 6.15 MW offshore turbines, built on a vertically integrated, low cost manufacturing base. Added to that proven
technology, global R&D centers, 24 X 7 monitoring system with dedicated team focusing each day on the customer satisfaction, has

Suzlon Energy Limited, Annual Report 2010-11 39

 helped Suzlon to spread its operation across 5 continents, 32 countries and more than 1,600 customers across the globe making
Suzlon a global player.

Suzlon’s contribution towards combating climate change, building a greener and sustainable tomorrow was recognized at the
COP16 global submit in Mexico where it was presented with Gigaton Award for global leadership in emissions control and
sustainability practices in the energy category.

Mr. Tulsi Tanti, Chairman and Managing Director, was conferred the title “Wind Visionary of Asia” by the Asian Development Bank.
The recognition emphasizes Suzlon’s commitment to build the case for wind across the world and highlights a decade of
tremendous work in key markets of Asia.

4. BUSINESS STRATEGY

Suzlon’s strategic intent for its business is enumerated as follows:

• Increased customer outreach

Suzlon operations are now spread across Asia, Australia, Europe, Africa and North and South America with operations in 32
countries. Suzlon boosted its customer profiles by signing biggest contracts from IPP (Independent Power Producer) in the
Indian market - a 1000 MW order from Caparo Energy and a 202 MW order from the Techno Electric Group. Suzlon also
secured 218 MW order in Brazil from the Martifer Group reinforcing Suzlon’s presence in the global market.

In the European Onshore segment, the company’s international business arm, Suzlon Wind Energy A/S, broke new ground
with its first order in Sweden. The Company has also entered into an agreement with Volkswind Bulgaria, a subsidiary of
Germany’s Volkswind GmbH. This aims to accelerate the manufacturer’s growth in the Bulgarian wind energy market and
will develop projects exclusively using Suzlon wind turbines. In April 2011, REpower entered into its biggest onshore
framework agreement in Europe with Juwi for 720 MW covering upto 240 wind turbines of 3 MW systems.

In the European Offshore segment, REpower has signed a contract with Belgian offshore project development company, C-
Power for development of 295 MW project in phase II and III of the first Belgian offshore wind farm, Thornton Bank. A bank
consortium of seven commercial banks together with European investment bank is providing necessary financing for the
said project. This represents the biggest ever project financing in the offshore wind industry. REpower has also signed
another major contract with RWE Innogy for development of 295 MW project at Nordsee Ost. This is the first supply under
the framework agreement concluded between REpower and RWE Innogy in February 2009 for the delivery of up to 250
turbines of 5M/6M turbines.

• Improving product portfolio

Suzlon and REpower have R&D and technology centers in Germany, the Netherlands, India and China. Its R&D initiatives
have led to the development of Suzlon’s new S9X suite of turbines – comprising the S88-2.25 MW, S95 and S97 2.1 MW
turbines. This suite of products, is an evolution of Suzlon’s proven S88-2.1 MW platform, and is built around the core doubly
fed induction generator based technology.

A compact and modular DFIG design allows ease of serviceability and meets the latest grid requirements for smoother wind
power plant connectivity. New blade designs with rotor diameter of 95 meter and 97 meter offers a larger swept area with
greater energy capture and power production from moderate to low wind speeds. To ensure the highest standards in
quality, Suzlon’s blade testing facilities far exceeds industry baseline by simulating total life cycle of blade (1 million cycles) in
most extreme onsite conditions.

In the onshore segment, REpower has launched two new variant for low wind speed regions. One in its 3XM series-3.2M114
and another new MM series turbine, MM100 with rated output of 3.17 MW and 1.80 MW respectively. The construction of
3.2M114 uses the economical hybrid tower type of construction with concrete and steel. The manufacturing principle also
makes it extremely easy to dismantle. The MM100 is specially adapted for the North American market. In February 2011,
REpower received a unit certificate from GL Renewables certification for its 3.4M104 turbines. This confirms that the wind
turbines meet the technical requirements of the Renewable Energy Act and the System Service ordinance. In addition to the
3.4M104, the MM82 and MM92 were also certified last year. As a result REpower is the first wind turbine manufacturer to
have received unlimited unit certificates (EZE) for its onshore turbines.

In the offshore segment, REpower has gained a level of skills that sets it apart from majority of its competitors. The machine
availability of REpower offshore turbines have shown result at par with onshore turbines despite the adverse conditions in
the open ocean.

• Internal Operational Excellence Program

Suzlon transformation program christened ACE (Achieving Collective Excellence) started in June 2009, has brought
significant improvements in the areas of manufacturing, technology, product design, market strategy, leadership and the
like. Turbine availability (uptime) has been consistently exceeding 97 per cent for its global operating fleet. New products
under S9X and 3XM series were timely launched with strong cross functional collaborations. Margin improvements were
achieved through effective capacity utilisation and value engineering. Efforts are in place to reduce the deployment of
working capital through improvement in operational efficiencies.

40 Suzlon Energy Limited, Annual Report 2010-11

5. RISK AND RISK MITIGATION

Some of the key risks identified and steps taken to mitigate the adverse impact of same are noted below:

5.1 Operational Risk

• Technology

Wind turbine technology is constantly evolving. A shift towards direct drive turbines, more particularly in large multi
– MW turbines in commercial market was witnessed last year. The promoters of direct drive concept claims that it is
a simpler mechanism – no gearbox means less maintenance and fewer components and it is likely to become
competitive with traditional drive train machines. Further development of technologically superior turbines
requires investments, which may not turn out to be a business opportunity.

Suzlon believes that traditional drive-train designs with continuous innovations are a proven technology and would
continue to be competitive in the years to come. The 97% machine availability of Suzlon models demonstrates the
strength of the technology. The risk of investments in innovation projects are addressed by structured periodic
reviews of all programs and investment by senior management. The research and testing centres at Baroda, India
and Netherlands are focussed on WTG performance improvements and development of next generation wind
turbine generators. Suzlon always believe in providing its customers with the best value for their investment, and
they would drive their technological work, to provide the same, at all times.

• Supply Chain Risk

Increase in commodity prices has the effect of putting pressure on margins. Also shortage of critical components like
gear box, slew rings, pitch bearing, towers, control panels, glass fibre etc. may affect timely delivery of wind turbines.

Suzlon has mitigated supply chain risk to a great extent through its backward integration strategy, rate negotiation
with vendors, alternative sourcing, indigenisation of critical components and various other measures like part of
Copper cables was replaced with Rubber Cables and Aluminium Cables etc and thereby leveraging Suzlon’s ability to
timely source components at competitive prices.

5.2 Financial Risk

• Foreign Exchange Risk

A significant part of Suzlon’s revenue, costs, assets and liabilities, are denominated in foreign currency. Unhedged
trade and financial exposure thus creates potential to adversely impact our project and overall profitability.

Suzlon’s presence across geographies helps in providing natural hedging by offsetting purchase and sales
transactions amongst various currencies. Risks are recognized at the contractual juncture and are hedged
progressively at various stages of project life cycle, depending upon the nature of the transactions and in accordance
with the Hedging Policy of the company. During the year, risk management practices continued to focus on
minimising the economic impact on Company profitability arising from fluctuations in exchange rates.

• Interest rate risk

Suzlon is exposed to interest rate fluctuation at the group level. The Corporate Finance Team is continuously involved
in working out interest rate sensitivity and propositions to mitigate the interest rate risk.

• Credit risk

Suzlon is exposed to high debt, taken to fund its inorganic growth. With increased interest rates and credit squeeze
across the globe, funding of Wind Projects still remains a challenge, leading to slow order inflow in markets like
Europe and USA.

Suzlon has been able to bring down its net debt - equity ratio to around 1.4. Company has also undertaken USD
175mn Foreign Currency Bond issue in April 2011. Focus on cost reduction, improved operational efficiencies and
reduction in working capital deployment, is expected to help in reducing the liquidity pressure.

6. INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

Suzlon’s internal management audit team periodically undertake independent reviews of risks, controls, operations and
procedures, identify control and process gaps and recommend business solutions for risk mitigation. Management has launched
“Project Evolution” to assess, evaluate, strengthen and institutionalise the “Corporate Value System” covering process, people and
cultural alignment from ethical business practice standpoint.

The Audit Committee of the Board periodically reviews the management audit reports, audit plans and recommendation of the
auditors and management’s response to those recommendations. The Audit Committee met four times during the year under
review.

Suzlon Energy Limited, Annual Report 2010-11 41

Highlights of consolidated results:

A. Sources of funds

1. Share capital Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Authorised share capital 700 445

Subscribed and paid up share capital 355 311

The share capital increased by Rs. 44 crore from Rs. 311 crore as at March 31, 2010 to Rs. 355 crore as at March 31, 2011
mainly on account of

(1) Issuance of 18.86 crore equity shares of Rs. 2 each @ premium of Rs. 61 each on rights basis to the existing shareholders of
the Company.

(2) Issuance of 3.20 crore equity shares of Rs. 2 each @ premium of Rs. 58 each on preferential basis to ‘IDFC Private Equity Fund
III’ (IDFC PE) as a consideration for acquisition of 4.13 crore equity shares of Rs. 10 each in SE Forge Limited (SEFL), a
subsidiary of the Company. Consequent to acquisition of IDFC PE’s stake in SEFL, SEFL became a wholly owned subsidiary of
the Company.

2. Reserves and surplus

A summary of reserves and surplus is provided in the table below: Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Capital redemption reserve 45 15

Unrealised gain on dilution 160 295
Securities premium account 5,306 3,979
General reserve 951 951
Capital reserve on consolidation 0* 0*
Legal and statutory reserve 142 -
Minority share of losses (38) -
Foreign currency translation reserve 137 91
Profit and loss account (553) 943
Total 6,150 6,274

*Less than Rs. 1 crore

(a) Capital redemption reserve(CRR)

Capital redemption reserve increased by Rs. 30 crore due to redemption of preference shares of few subsidiaries
during the current year.

(b) Unrealised gain on dilution

During the year there was a reduction in unrealised gain on dilution by Rs. 135 crore due to acquisition of 17.1% stake
back from ‘IDFC Private Equity Fund III’ (IDFC PE) in SE Forge Limited (SEFL) which was diluted in 2009.

(c) Securities premium account

The securities premium account increased by Rs. 1,336 crore as a result of issuance of shares on rights issue and
preferential allotment of shares. It reduced by Rs. 9 crore due to expenses incurred on issuance of shares under rights
issue.

(d) Foreign currency translation reserve (FCTR)

The change in FCTR is due to exchange fluctuation resulting from translation of the accounts of overseas subsidiaries
into reporting currency of the parent company i.e. INR.

(e) Profit and Loss account

There is debit balance of Rs. 553 crore in profit and loss account as at March 31, 2011 after transfer of Rs. 30 crore to
CRR and Rs. 142 crore to Legal and statutory reserve.

(f) Minority share of losses

REpower acquired control of RiaBlades S.A and Ventipower S.A on February 03, 2011 and holds 3% stake. Minority share
of losses represents losses of RiaBlades S.A and Ventipower S.A over the minority's share in equity on acquisition.

(g) General reserve and Capital reserve on consolidation

There is no movement in General reserve and Capital reserve on consolidation as compared to previous year.

42 Suzlon Energy Limited, Annual Report 2010-11

 3. Loan funds
Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Secured loans 9,257 8,123

Unsecured loans 3,007 4,545
Total 12,264 12,668

During the current year, the group has availed long term loans of Rs. 1,599 crore mainly under debt consolidation and
refinancing arrangement and this increase has been primarily offset by conversion of unsecured loan from promoters worth
of Rs. 1,187 crore into equity apart from repayment of short term loans of Rs. 726 crore and term loans of Rs. 151 crore.

4. Deferred tax liability (Net)

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Deferred tax Liabilities 294 183

Deferred tax assets 161 86
Total (Net) 133 97

Net increase in deferred tax liability by Rs. 36 crore is on account of changes in temporary allowances and disallowances
calculated as per the tax regulations applicable to respective entities within the group. We have assessed the likelihood that
our deferred tax assets will be recovered from future taxable profits.

B. Application of funds

1. Fixed assets

a. Movement in gross block and capital work in progress

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Gross block (Including Goodwill) 12,852 11,538

Less: Accumulated depreciation / amortisation 1,933 1,377
Net block 10,919 10,161
Capital work-in-progress 419 413
Total 11,338 10,574

Major addition to Gross block is on account of following:

(1) Goodwill of Rs. 221 crore primarily due to acquisition of additional stake in Repower and acquisition of
balance 50% stake in REpower Portugal - Sistemas Eolicos, S.A (REpower Portugal) by REpower Systems AG.

(2) Addition of Rs. 207 crore is on account of acquisition of 50% stake of REpower Portugal - Sistemas Eolicos, S.A
by REpower Systems AG.

(3) Net additions to Plant & Machinery stood at Rs. 172 crore, technology related design and drawings at Rs. 163
crore.

(4) Increase of Rs. 388 crore is on account of foreign currency translation.

b. Capital commitments

Capital commitment stands at Rs. 106 crore as at March 31, 2011 as compared to Rs. 115 crore as at March 31, 2010.

2. Investments

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Long Term Investment – Associates 807 985

Long Term Investment – Non Trade Investment 22 7
Short Term Investment 138 100
Total (Net) 967 1,092

Reduction in “long term investment – Associates” is primarily on account of provision for diminution in value of investment
in Hansen Transmissions International NV (‘Hansen’) of Rs. 216 crore.

Movement in other investments is mainly due to Investment in mutual funds which are purely temporary in nature.

Suzlon Energy Limited, Annual Report 2010-11 43

3. Current assets, loans and advances

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Inventories 5,351 5,994

Sundry debtors 4,237 3,174
Cash and bank balances 3,121 2,904
Other current assets 1,679 3,018
Loans and advances 2,366 2,108
Total 16,754 17,198

a. Inventories

During the current year Inventory holding period has reduced from 81 days to 72 days resulting in better utilisation of net
working capital. There is a sizeable reduction of Rs. 643 crore despite targets of higher sale in the forthcoming quarters. All
this could be made possible through consistent efforts of Supply Chain Management by value engineering, identification of
alternative sources, indigenisation of critical components, reduction in lead time and proper production planning and
forecasting.

b. Sundry debtors

Debtors balance has gone up to Rs. 4,237 crore, as against Rs. 3,174 crore as at the end of previous financial year. This is
primarily due to higher proportionate sale in India towards end of the year, delayed realisation from a large Chinese
customer (since realised) and movement from un-billed debtors to billed debtors.

c. Cash and bank balances

As of March 31, 2011, the cash and bank balance stands at Rs. 3,121 crore as compared to Rs. 2,904 crore in previous year.
Corporate Treasury places the temporary surplus funds with banks and asset management companies for short term
maturities.

d. Other current assets

Other current assets representing unbilled revenue in relation to construction contracts have come down significantly to Rs.
1,679 crore as at March 31, 2011 as compared to Rs. 3,018 crore last year due to completion of relevant contract billing
milestone.

e. Loans and advances

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Deposits 184 168

Advance against taxes 42 103
MAT credit entitlement 167 153
Inter Corporate deposits 54 152
Advances recoverable in cash or in kind or for value to be received 1,919 1,532
Total 2,366 2,108

Loans and advances stood at Rs. 2,366 crore and Rs. 2,108 crore as at 31st March 2011 and 31st March 2010 respectively.

4. Current liabilities and provisions

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10

Sundry creditors 4,537 3,942

Other current liabilities 1,203 1,237
Interest accrued but not due 27 29
Due to customers 157 484
Advances from customers 2,570 2,735
Provisions 1,333 995
Total 9,827 9,422

There is an overall increase of Rs. 405 crore in current liabilities and provisions. This is primarily on account of the following reasons

(a) Increase in sundry creditors is due to higher purchase in last quarter of the year to meet the demand of increased business
volumes.

44 Suzlon Energy Limited, Annual Report 2010-11

 (b) Increase in provision for operation, maintenance & warranty and performance guarantees.

(C) Decrease in “Due to customers” on completion of contract milestones.

C. Cash Flow

Net cash inflow from operating activities amounted to Rs. 1,214 crore is mainly due to operating profit. Net cash in investing
activities amounting to Rs. 828 crore has primarily been applied towards purchase of fixed assets and acquisition of stake in
subsidiaries. Net cash in financing activities amounting to Rs. 464 crore has been applied towards payment of interest.

D. Results of operations

On November 24, 2009, AE-Rotor Holding B.V. (‘AERH’), a wholly owned subsidiary of the Company sold 35.22% of equity stake in
Hansen Transmissions International NV (‘Hansen’). Following this disposal, the Group had a voting and economic interest in Hansen
of 26.06% as a result of which Hansen ceased to be subsidiary of the Company. Hence, the consolidated financial figures for the year
ended March 31, 2010 inter alia included the financial figures of Hansen till November 30, 2009, as subsidiary and subsequently as
an associate.

For management analysis, the element of Hansen has been excluded from FY 2009-10 to have better analysis with the current year
figures.

Rs. in crore

Particulars FY - 2010-11 FY - 2009-10 FY- 2009-10

(Excl. Hansen) (As Reported)

Sales and service income 17,879 18,133 20,620

Other operating income 211 151 160
EBIDTA 808 703 943
Depreciation 658 482 663
EBIT 150 220 280
Interest 1,136 1,112 1,195
Other Income 107 65 69
Profit / (Loss) before tax and exceptional items (878) (827) (846)
Exceptional items (gain)/ loss 253 (212) (212)
Tax 185 355 356
Profit / (Loss) after tax (1,317) (970) (990)

Principal components of results of operation

1. Sales

Sales decreased by Rs. 254 crore ( 1.4%), from Rs. 18,133 crore in FY 2009-10 to Rs. 17,879 crore in FY 2010-11. The decrease was
primarily due to the reduction in demand as a result of financing difficulties faced by our customers caused by ongoing
difficulties in the credit markets, more so in first half of the financial year. However, the sales in second half of the year picked up.

2. Other income

Other income increased by Rs. 102 crore from Rs. 216 crore in FY 2009 – 10 to Rs. 318 crore in FY -2010 -11. This increase was
primarily due to increase in interest income received from banks due to increased level of fixed deposits and increase in
operating income.

3. Cost of goods sold (COGS)

COGS as % of sale increased marginally from 68.1% in FY 2009-10 to 69.7% in FY 2010 -11.This is primarily due to change in
sales mix, increase in commodity prices and currency translation impact on COGS of overseas subsidiaries. The overall trend
of cost per model continues to be under control and consistent efforts being taken to bring the cost down through value
engineering, better rate negotiation and expansion of vendor base.

4. Operating and other expenses

The operating and other expenses have come down by more than 12% to Rs. 3,152 crore in 2010-11 as compared to Rs.
3,599 crore in 2009-10. The effort to bring overheads down is paying off.

5. Employees’ remuneration and benefits

Employees’ remuneration and benefit cost has remained almost static in proportion to sales. It has increased marginally
from Rs. 1,629 crore in FY 2009-10 to Rs. 1,676 crore in FY 2010 -11 representing 9.0% and 9.4% of sales respectively.

6. Interest

Interest has remained almost static in proportion to sales representing 6.4% and 6.1% of sales in 2010-11 and 2009-10
respectively. It has marginally increased to Rs. 1,136 crore in 2010-11 as compared to Rs. 1,112 crore in 2009 -10.

Suzlon Energy Limited, Annual Report 2010-11 45

7. Depreciation

The Group provided a sum of Rs. 657 crore and Rs. 482 crore towards depreciation for the year ended March 31, 2011 and
March 31, 2010 respectively. The current year depreciation includes Rs. 51 crore provided by REpower towards impairment
losses. Increase in depreciation is also on account of additional capitalisation made during the current and towards the end
of the previous year.

8. Exceptional items

Charge on account of exceptional items stood at Rs. 253 crore in FY 2010-11 as against gain of Rs. 212 crore in FY 2009-10.
Current year figure includes a) exceptional loss of Rs. 216 crore provided towards diminution in value of investment in
26.06% stake in Hansen Transmissions International NV (‘Hansen’) and b) loss of Rs. 37 crore towards cost incurred for reset
of conversion price of certain series of foreign currency convertible bonds.

In comparison, exceptional gain in the FY 2009-2010 included a) gain of Rs. 252 crore on partial sale of stake in Hansen, b) net
gain of Rs. 122 crore from buyback and exchange of foreign currency convertible bonds after setting off costs for
restructuring and refinancing of financial facilities and c) charge on account of amortization of foreign exchange losses on
convertible bonds amounting to Rs.162 crore.

9. Profit

The consolidated EBIDTA has increased by 15% to Rs. 808 crore as compared to Rs.702 crore in FY 2009-10. The same has
arisen primarily on account of better operational efficiencies in the business.

Loss before tax and exceptional items amounted to Rs. 878 crore and Rs. 827 crore for the FY 2010-11 and FY 2009-10,
representing 4.9% and 4.6% of total sales respectively. PBT is negative as EBIDTA for the year has been insufficient to absorb
interest and depreciation.

Tax expenses reduced to Rs. 186 crore in FY 2010-11 from Rs. 355 crore in FY 2009-10. In the previous year, a major part of tax
expense was on account of re-assessment of deferred tax assets.

Loss after tax amounted to Rs. 1,317 crore and Rs. 970 crore for the financial year FY 2010-11 and FY 2009-10 representing
7.4% and 5.4% of total sales respectively.

Losses attributable to minority is Rs. 21 crore in FY 2010-11, as against profit of Rs. 9 crore in FY 2009-10 and share of the
company in associate loss after tax recorded at Rs. 28 crore in FY 2010-11 as against profit of Rs. 16 crore in FY -2009-10.

As a result of the foregoing factors, net loss increased from Rs. 983 crore in FY 2009-10 to loss of Rs. 1,324 crore in FY 2010-
11.

Cautionary Statement

Suzlon has included statements in this discussion, that contain words or phrases such as “will”, “aim”, “will likely result”, “believe”,
“expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”,
“project”, “should”, “will pursue” and similar expressions or variations of such expressions that are “forward-looking statements”.

All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ
materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results
to differ materially from Suzlon’s expectations include:

• Variation in the demand for electricity;

• Changes in the cost of generating electricity from wind energy and changes in wind patterns;
• Changes in or termination of policies of state governments in India that encourage investment in power projects;
• General economic and business conditions in India and other countries;
• Suzlon’s ability to successfully implement it’s strategy, growth and expansion plans and technological initiatives;
• Changes in the value of the INR and other currencies;
• Potential mergers, acquisitions or restructurings and increased competition;
• Changes in laws and regulations;
• Changes in political conditions;
• Changes in the foreign exchange control regulations; and
• Changes in the laws and regulations that apply to the wind energy industry, including tax laws.

46 Suzlon Energy Limited, Annual Report 2010-11

Corporate Governance Report
(As required by Clause 49 of the Listing Agreement)

1. Company’s Philosophy on Corporate Governance

The Company’s corporate governance philosophy rests on the pillars of integrity, accountability, equity, transparency and
environmental responsibility that conform fully with laws, regulations and guidelines. The Company’s philosophy on corporate
governance is to achieve business excellence and maximising shareholder value through ethical business conduct. The Company’s
philosophy also includes building partnerships with all stakeholders, employees, customers, vendors, service providers, local
communities and government. The Company has always set high targets for the growth, profitability, customer satisfaction, safety
and environmental performance and continues its commitment to high standards of corporate governance practices. During the
year under review, the Board continued its pursuit of achieving its objectives through the adoption and monitoring of corporate
strategies and prudent business plans.

The Company is in compliance with all the requirements of the corporate governance code as per Clause 49 of the Listing
Agreement with the stock exchanges.

2. Board of Directors (the Board)

The Board is entrusted and empowered to oversee the management, direction and performance of the Company with a view to
protect interest of the stakeholders and enhance value for shareholders. The Board monitors the strategic direction of the
Company.

Composition

The Company has a balanced mix of executive and non-executive directors. The Board consists of eight directors as on March 31,
2011, out of which three are executive directors and five are non-executive directors. The Chairman of the Board is an executive
director and half of the Board comprises of independent directors. Post March 31, 2011, following changes took place in the
composition of the Board of the Company:

• Mr. Pradip Kumar Khaitan, the non-executive director resigned from the directorship of the Board w.e.f. April 28, 2011.

• Mr. Rajiv Ranjan Jha, the nominee of Power Finance Corporation Limited was appointed as independent director on the
Board w.e.f. April 28, 2011.

• Mr. Girish R.Tanti ceased to be the executive director of the Company w.e.f. July 30, 2011 however he continues on the Board
as the non-executive director.

The Board presently consists of eight directors, out of which two are executive directors, five are independent directors and one is a
non-executive director. The composition of the Board is in compliance with the requirements of Clause 49(I)(A) of the Listing
Agreement with the stock exchanges.

Board Procedure

Board meets at regular intervals and apart from regular Board business, it discusses policy and strategy matters. The agenda for the
Board is accompanied by the required documents and information, prescribed under Annexure IA to Clause 49 pertaining to the
matters to be considered at each Board and Committee meetings, to enable the Board to discharge its responsibilities effectively.

Board meetings held during the financial year 2010-11

All the directors have certified that they are not members of more than ten mandatory committees and do not act as chairman of
more than five mandatory committees in terms of the Listing Agreement across all companies in which they are directors.

During the year 2010-11, the Board met five times on May 29, 2010, August 13, 2010, October 11, 2010, October 30, 2010 and
February 4, 2011. The gap between any two board meetings did not exceed four months. Apart from the physical meetings, the
board of directors also considered and approved certain matters by circular resolutions, which matters were as a matter of good
corporate practice ratified at the next meeting of the Board. The names and categories of the directors on the Board, their
attendance record, the number of directorships and committee positions as on March 31, 2011, are noted below:

Suzlon Energy Limited, Annual Report 2010-11 47

 Name of the Category Attendance at meetings Total no. Total no. of membership of Total no. of chairmanship of
director during 2010-11 of director- the committees of Board the committees of Board
ships as on
March 31,
Board 15th AGM 2011 Membership in Membership in Chairmanship in Chairmanship in
(out of 5) on August audit/investors' other audit/investors' other committees
13, 2010 grievance committees grievance
committees committees

Mr. Tulsi R. Chairman & 5 Yes 1 1 2 - 2

Tanti Managing
Director
Mr. Girish R. Executive 5 Yes 2 1 2 - -
Tanti1 Director
Mr. Vinod R. Executive 1 NA 13 8 - 5 -
Tanti2 Director
Mr. Ajay Independent 3 No 1 1 1 - -
Relan Director
Mr. Ashish Independent 3 Yes 1 1 1 1 -
Dhawan Director
Mr. Pradip Non-Executive 1 No 15 6 11 1 2
Kumar Khaitan3 Non-Independent
Director
Mr. V. Independent 5 Yes 1 1 1 - -
Raghuraman Director
Ms. Mythilli Independent 1 NA 1 - - - -
Balasubramanian, Director
a nominee of IDBI
Bank Limited4
Mr. Rajiv Ranjan Jha, Independent NA NA NA NA NA NA NA
a nominee of Power Director
Finance Corp. Ltd.5

Changes during the year and post March 31, 2011:

1
Mr. Girish R.Tanti ceased to be an executive director w.e.f. July 30, 2011 however continues as a non-executive director.
2
Mr. Vinod R.Tanti was appointed as an executive director w.e.f. November 1, 2010.
3
Mr. Pradip Kumar Khaitan resigned from the Board w.e.f. April 28, 2011.
4
Ms. Mythili Balasubramanian, a nominee of IDBI Bank Limited, was appointed as an independent director w.e.f. November 1, 2010.
5
Mr. Rajiv Ranjan Jha, a nominee of Power Finance Corporation Limited, was appointed as an independent director w.e.f. April 28, 2011.

Notes:

• While considering the total number of directorships, directorships in private companies, foreign companies and Section 25
companies have been excluded.

• As per terms of clause 49(IV)(G)(ia), it is hereby disclosed that Mr. Tulsi R.Tanti, Chairman & Managing Director, is a brother of Mr. Girish
R.Tanti, the non-executive director and Mr. Vinod R.Tanti, the Executive Director. Except for the relationship between Mr. Tulsi R.Tanti,
Mr. Girish R.Tanti and Mr. Vinod R.Tanti, there is no other inter-se relationship amongst other directors.

Code of Ethics

The Company has prescribed a Code of Ethics for its directors and senior management. The Code of Ethics of the Company has been
posted on its website www.suzlon.com. The declaration from the Chairman & Managing Director stating that as of March 31, 2011,
all the Board members and the senior management personnel of the Company have affirmed compliance with the Code of Ethics
for the financial year 2010-11 has been included in this report.

3. Committees of Board

The Board Committees focus on certain specific areas and make informed decisions within the delegated authority. Each
committee of the Board functions according to its charter that defines its composition, scope, power and role in accordance with
the Companies Act, 1956 and the Listing Agreement. Presently, the Board has the following committees:

I. Audit Committee II. Investors' Grievance Committee III. Remuneration Committee

IV. Securities Issue Committee V. ESOP Committee VI. Rights Issue Committee

The composition, meetings, attendance and the detailed terms of reference of the aforesaid committees of the Board are noted below:

I. Audit Committee

The Audit Committee of the Company has been constituted as per the requirements of Clause 49 of the Listing Agreement. The
composition of Audit Committee is in compliance with the requirements of Clause 49(II)(A) of the Listing Agreement. During the
year, the Audit Committee was re-constituted w.e.f. April 27, 2010, by inducting Mr. Ajay Relan as the member of the Audit
Committee. Post March 31, 2011, the following change took place in the constitution of the Audit Committee of the Company:

• Mr. Pradip Kumar Khaitan resigned from the Board and consequently ceased to be a member of the Audit Committee
w.e.f. April 28, 2011.

48 Suzlon Energy Limited, Annual Report 2010-11

 Presently, the Audit Committee of the Company consists of three members all of whom including the Chairman are
independent directors. The Chairman & Managing Director, Chief Financial Officer, representatives of the statutory
auditors and senior officials of the Company are invited to attend the meetings of the Audit Committee from time to
time. The Company Secretary of the Company acts as the secretary to the Audit Committee. The Chairman of the
Audit Committee was present at the 15th Annual General Meeting held on August 13, 2010.

During the financial year 2010-11, the Audit Committee met four times on May 29, 2010, August 13, 2010, October
30, 2010 and February 4, 2011 and the quorum was present at all the meetings. The gap between two meetings did
not exceed four months. The attendance of the members is noted below:

Name of the member Chairman / Member No. of meetings

attended

Mr. Ashish Dhawan Chairman 3

Mr. Pradip Kumar Khaitan* Member 1
Mr. V. Raghuraman Member 4
Mr. Ajay Relan Member 2

*resigned from Board and consequently ceased to be a member w.e.f. April 28, 2011

The broad terms of reference of this Committee includes the following as is mandated in Clause 49 of Listing
Agreement and Section 292A of Companies Act, 1956:

a. Oversight of the Company’s financial reporting process and the disclosure of its financial information to
ensure that the financial statement is correct, sufficient and credible.

b. Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal
of the statutory auditors and the fixation of audit fees.

c. Approval of payment to statutory auditors for any other services rendered by them.

d. Reviewing, with the management, the annual financial statements before submission to the Board for
approval, with particular reference to:

• Matters required to be included in the directors’ responsibility statement to be included in the Board’s
report in terms of clause 2AA of Section 217 of the Companies Act, 1956,
• Changes, if any, in accounting policies and practices and reasons for the same,
• Major accounting entries involving estimates based on the exercise of judgement by management,
• Significant adjustments made in the financial statements arising out of the audit findings,
• Compliance with listing and other legal requirements relating to financial statements,
• Disclosure of any related party transactions, and
• Qualifications in the draft audit report.

e. Reviewing, with the management, the quarterly financial statements before submission to the Board for
approval.

f. Reviewing, with the management, the statement of uses/application of funds raised through an issue (public
issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those
stated in the offer document/prospectus/notice and the report submitted by the monitoring agency
monitoring the utilisation of proceeds of a public or rights issue and making appropriate recommendations to
the Board to take up steps in this matter.

g. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal
control systems.

h. Reviewing the adequacy of internal audit function, including the structure of the internal audit department,
staffing and seniority of the official heading the department, reporting structure coverage and frequency of
internal audit.

i. Discussion with internal auditors any significant findings and follow-up thereon.

j. Review the findings of any internal investigations by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the
matter to the Board.

k. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well
as post-audit discussion to ascertain any area of concern.

l. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders,
shareholders (in case of non-payment of declared dividends) and creditors.

m. To review the functioning of the whistle blower mechanism.

n. Carrying out any other function as is mentioned in the terms of reference of the audit committee.

Suzlon Energy Limited, Annual Report 2010-11 49

II. Investors’ Grievance Committee

The Investors’ Grievance Committee of the Company has been constituted as per the requirements of Clause 49 of the
Listing Agreement. Post March 31, 2011, following changes took place in the constitution of the Investors’ Grievance
Committee:

• Mr. Pradip Kumar Khaitan resigned from Board and consequently ceased to be a member of the Investors’ Grievance
Committee w.e.f. April 28, 2011.
• Mr. V.Raghuraman was inducted as a member and Chairman of the Investors’ Grievance Committee w.e.f. May 14,
2011.
• Mr. Girish R.Tanti ceased to be a member of the Investors’ Grievance Committee w.e.f. July 30, 2011.
• Mr. Vinod R.Tanti was inducted as a member of the Investors’ Grievance Committee w.e.f. July 30, 2011.

Presently, the Investors' Grievance Committee of the Company consists of three directors out of which the Chairman is a
non-executive independent director and other two members are executive directors of the Company. The composition of
the investors’ grievance committee is in compliance with the requirements of Clause 49(IV)(G) of the Listing Agreement.

During the financial year 2010-11, the Investors’ Grievance Committee met three times on August 12, 2010, October 30,
2010 and February 4, 2011. The attendance of the members is noted below:

Name of the member Chairman / Member No. of meetings

attended

Mr. Pradip Kumar Khaitan* Chairman* 2

Mr. Tulsi R.Tanti Member 3
Mr. Girish R.Tanti@ Member 3
Mr. V.Raghuraman# Chairman# Not Applicable
Mr. Vinod R.Tanti$ Member Not Applicable

*resigned from Board and consequently ceased to be a member w.e.f. April 28, 2011.
@
Ceased to be member w.e.f. July 30, 2011.
#
Inducted as member and chairman w.e.f. May 14, 2011.
$
Inducted as member w.e.f. July 30, 2011.

The broad terms of reference of this Committee include the following:

a. Redressal of shareholder and investors complaints including, but not limiting to transfer of shares and issue of
duplicate share certificates, non-receipt of balance sheet, non-receipt of declared dividends, etc.;

b. Monitoring transfers, transmissions, dematerialisation, rematerialisation, splitting and consolidation of shares

issued by the Company;

c. And such other acts, deeds, matters and things as may be stipulated in terms of Listing Agreement with the Stock
Exchanges and / or such other regulatory provisions and as also as the Board of Directors may consider think fit for
effective and efficient redressal of shareholders and / or investors’ grievances.

III. Remuneration Committee

The Remuneration Committee of the Company consists of three members, all of whom are non-executive independent
directors. The Chairman for the Remuneration Committee is decided by the committee members from amongst themselves
from time to time. During the year, the following changes took place:

• Mr. Pradip Kumar Khaitan ceased to be a member of the Remuneration Committee w.e.f. February 4, 2011.
• Mr. Ajay Relan was inducted as a member of the Remuneration Committee w.e.f. February 4, 2011.

During the financial year 2010-11, the Remuneration Committee met two times on August 13, 2010 and October 30, 2010.
Apart from the physical meetings, the Remuneration Committee also considered and approved of certain matters by
circular resolutions, which matters were as a matter of good corporate practice ratified at the next meeting of the
Remuneration Committee. The attendance of the members is noted below:

Name of the member Chairman / Member No. of meetings

attended

Mr. Ashish Dhawan Member 2

Mr. Pradip Kumar Khaitan* Member 1
Mr. V. Raghuraman Member 2
Mr. Ajay Relan@ Member Not Applicable

*ceased to be member w.e.f. February 4, 2011.

@
inducted as member w.e.f. February 4, 2011.

50 Suzlon Energy Limited, Annual Report 2010-11

 The broad terms of reference of this Committee include the following:

a. To determine the remuneration of the directors of the Company;

b. Ensure effective implementation and operations of various existing and future employee stock option plans of the
Company, to do all such acts, deeds, matters and things including, but not limiting itself to:

• Determining the number of options to be granted to each employee, in the aggregate and at the times at
which such grants shall be made,
• Determining the eligible employee(s) to whom options be granted,
• Determining the eligibility criteria(s) for grant of options,
• Determining the performance criteria(s), if any for the eligible employees,
• Laying down the conditions under which options vested in the optionees may lapse in case of termination of
employment for misconduct, etc.,
• Determining the exercise price which the optionee shall pay to exercise the options,
• Determining the vesting period,
• Determining the exercise period within which the optionee should exercise the options and that options
would lapse on failure to exercise the same within the exercise period,
• Specifying the time period within which the optionee shall exercise the vested options in the event of
termination or resignation of the optionee,
• Laying down the procedure for making a fair and reasonable adjustment to the number of options and to the
exercise price in case of rights issues, bonus issues, sub-division, consolidation and other corporate actions,
• Providing for the right to an optionee to exercise all the options vested in him/her at one time or at various
points of time within the exercise period,
• Laying down the method for satisfaction of any tax obligation arising in connection with the options or such
shares,
• Laying down the procedure for cashless exercise of options, if any,
• Providing for the grant, vesting and exercise of options in case of employees who are on long leave or whose
services have been seconded to any other Company or who have joined any other subsidiary or other
company at the instance of the employer company.

Remuneration policy and remuneration to directors

a. Executive Directors

The Company has been paying remuneration to its executive directors on the basis of their experience and contribution
made to the Company subject however to the limits prescribed under the Companies Act, 1956. However at the 15th
Annual General Meeting of the Company held on August 13, 2010, it was requested by shareholders of the Company that
since the Company had incurred losses in the financial year 2009-10, Mr. Tulsi R. Tanti and Mr. Girish R. Tanti should not
receive any remuneration in the financial year 2009-10 and 2010-11. In light of the losses incurred by the Company during
the financial year 2009-10 and respecting the sentiments of the shareholders of the Company, it was decided to accept the
request of the shareholders for non payment of any remuneration to Mr. Tulsi R.Tanti, Chairman and Managing Director and
Mr. Girish R.Tanti, Executive Director for the financial year 2009-10 and thereafter in case of losses during the balance tenure
of their respective offices in terms of their earlier appointment. Accordingly, the remuneration paid during the financial year
2009-10 and 2010-11, as the case may be, was refunded by Mr. Tulsi R.Tanti, Chairman and Managing Director and
Mr. Girish R.Tanti, Executive Director.

Further, Mr. Vinod R.Tanti was appointed as the Wholetime Director designated as “Executive Director” for a period of three
years w.e.f. November 1, 2010. In line with the decision to not to pay any remuneration to Mr. Tulsi R. Tanti, Chairman and
Managing Director and Mr. Girish R. Tanti, Executive Director in loss making years during the balance tenure of offices of
their earlier appointment, it was decided not to pay any remuneration to Mr. Vinod R.Tanti, the Executive Director.

Further, in terms of the resolutions passed, after reviewing the business prospects, by the Remuneration Committee and
the Board of Directors at their respective meetings held on July 30, 2011, it was decided to pay the remuneration to Mr. Tulsi
R.Tanti and Mr. Vinod R.Tanti with effect from April 1, 2011. The remuneration as approved would be subject to the
provisions of Section 198 and 309 of the Companies Act, 1956. However, in the event of loss or inadequacy of profits, they
would be paid remuneration in terms of Part II Section II (B) of Schedule XIII to the Companies Act, 1956. Accordingly, the
proposed remuneration would be as under:

Executive Salary Retirement Gratuity Bonus Total Service contract Notice

Director (Rs.) benefits commission (Rs.) period
(Rs.) / Stock options

Mr. Tulsi R. 1,84,88,004 10,80,000 4,32,000 - 2,00,00,000 three years upto 3 months
Tanti March 31, 2014

Mr. Vinod R. 1,10,92,800 6,48,000 2,59,200 - 1,20,00,000 three years upto 3 months
Tanti October 30, 2013

Note: Mr. Girish R.Tanti ceased to be executive director w.e.f. July 30, 2011 however continues to be non-executive director.

Suzlon Energy Limited, Annual Report 2010-11 51

b. Non-executive Directors:

The non-executive directors are not paid any remuneration except sitting fees for attending the meetings of the Board of
Directors and / or Committees thereof. The sitting fees paid / payable to the non-executive directors is within the limits
prescribed by the Companies Act, 1956. The Company does not have material pecuniary relationship or transactions with its
non-executive directors. The details of the sitting fees paid, stock options granted and shares held by the non-executive
directors during 2010-11 are as under:

Name of the non-executive director Sitting fees Stock options Shareholding

(Rs.) granted in the company

Mr. Ajay Relan* - - -

Mr. Ashish Dhawan 1,60,000 - -
Mr. Pradip Kumar Khaitan@ 1,00,000 - -
Mr. V. Raghuraman 2,40,000 - -
Ms. Mythili Balasubramanian# 20,000 - -
Mr. Rajiv Ranjan Jha$ Not Applicable - -
Mr. Girish R.Tanti& Not Applicable - 11,60,82,000
*
Since Mr. Ajay Relan has voluntarily agreed not to accept sitting fees, he is not being paid any sitting fees for attending the
meeting of Board of Directors and Board Committees of the Company.
@
resigned from the directorship of the Board w.e.f. April 28, 2011.
#
Ms. Mythili Balasubramanian, being a nominee of IDBI Bank Limited, the sitting fees for attending the Board Meeting was
paid to IDBI Bank Limited.
$
appointed on Board w.e.f. April 28, 2011.
&
Ceased to be executive director w.e.f. July 30, 2011, how ever continues as non-executive director.

IV. Securities Issue Committee

The Securities Issue Committee of the Company consists of two members who are executive directors. Apart from the
physical meetings, the Securities Issue Committee also considered and approved of certain matters by circular resolutions.
Post March 31, 2011, following changes took place in the constitution of the Securities Issue Committee of the Company:

• Mr. Girish R.Tanti ceased to be member of the Securities Issue Committee w.e.f. July 30, 2011.
• Mr. Vinod R.Tanti was inducted as member of the Securities Issue Committee w.e.f. July 30, 2011.

During the financial year 2010-11, the Securities Issue Committee met five times on April 6, 2010, April 16, 2010, May 17,
2010, November 16, 2010 and March 31, 2011. The attendance of the members is noted below:

Name of the member Chairman / Member No. of meetings

attended

Mr. Tulsi R.Tanti Chairman 5

Mr. Girish R.Tanti* Member 5
Mr. Vinod R.Tanti@ Member Not Applicable
*
Ceased to be member w.e.f. July 30, 2011
@
inducted as member w.e.f. July 30, 2011

The broad terms of reference includes the following:

a. to create, offer, issue and allot in one or more tranches, whether rupee denominated or denominated in foreign
currency, in the course of international and / or domestic offering(s) in one or more foreign markets and / or
domestic market, representing such number of Global Depository Receipts (GDRs), American Depository Receipts
(ADRs), Foreign Currency Convertible Bonds (FCCBs) and / or Fully Convertible Debentures and / or Non Convertible
Debentures with warrants or any Other Financial Instruments (OFIs) convertible into or linked to equity shares and /
or any other instruments and / or combination of instruments with or without detachable warrants with a right
exercisable by the warrant holders to convert or subscribe to the equity shares or otherwise, in registered or bearer
form (hereinafter collectively referred to as the ‘Securities’) or any combination of Securities to any person including
foreign / resident investors, whether institutions, incorporated bodies, mutual funds and / or individuals or
otherwise, Foreign Institutional Investors, Promoters, Indian and / or Multilateral Financial Institutions, Mutual
Funds, Non-Resident Indians, employees of the Company and / or any other categories of investors, whether they be
holders of shares of the Company or not through public issue(s) by prospectus, rights issue(s), private placement(s)
or a combination thereof at such time or times, at such price or prices, at a discount or premium to the market price
or prices and on such terms and conditions including security, rate of interest, etc. as may be thought fit in its
absolute discretion;

b. to take initiatives for liability management including debt reduction initiatives;

52 Suzlon Energy Limited, Annual Report 2010-11

 c. to allot equity shares of the Company as may be required to be allotted on exercise of the conversion rights to such
bondholders of various series of bonds issued by the Company and / or as may be issued by the Company from time
to time including but not limiting to US$ 300 million Zero Coupon Foreign Currency Convertible Bonds due 2012, US$
200 million Zero Coupon Foreign Currency Convertible Bonds due 2012, US$ 35,592,000 7.5% Foreign Currency
Convertible Bonds due 2012, US$ 20,796,000 7.5% Foreign Currency Convertible Bonds due 2012, US$ 90 million
Zero Coupon Foreign Currency Convertible Bonds due 2014, US$ 175 million 5% Zero Coupon Foreign Currency
Convertible Bonds due 2016;

d. to do all such other acts, deeds, matters and things as already delegated and / or as may be delegated by the Board of
Directors from time to time;

e. to do all such other acts, deeds, matters and things as may be incidental and ancillary to one or more of the above and
/ or to such other acts as already delegated and / or as may be delegated by the Board of Directors from time to time;

f. to sign deeds, documents, forms, letters and such other papers as may be necessary, desirable and expedient.

V. ESOP Committee

The ESOP Committee of the Company consists of two members who are executive directors. Post March 31, 2011, following
changes took place:

• Mr. Girish R.Tanti ceased to be member of the ESOP Committee w.e.f. July 30, 2011.
• Mr. Vinod R.Tanti was inducted as member of the ESOP Committee w.e.f. July 30, 2011.

During the financial year 2010-11, the ESOP Committee met only once on April 6, 2010. The attendance of members is noted
below:

Name of the member Chairman / Member No. of meetings

attended

Mr. Tulsi R.Tanti Chairman 1

Mr. Girish R.Tanti* Member 1
Mr. Vinod R.Tanti@ Member Not Applicable
*
Ceased to be member w.e.f. July 30, 2011
@
inducted as member w.e.f. July 30, 2011

The broad terms of reference includes allotment of shares pursuant to exercise of options granted in terms of various
employee stock option plans to the employees of the Company and its subsidiary companies in terms of various employee
stock option plans of the Company including but not limiting to ESOP-2005, ESOP-2006, ESOP-2007, Special ESOP-2007,
ESOP-Perpetual-I and such other future employee stock option plans of the Company.

VI. Rights Issue Committee

The Rights Issue Committee of the Company was formed for the specific purpose of Rights Issue of the Company. It consisted
of four members, out of which two of the members were executive directors and remaining two members were non-
executive independent directors.

During the financial year 2010-11, the Rights Issue Committee met three times on May 31, 2010 (twice) and July 12, 2010.
The attendance of members is noted below:

Name of the member Chairman / Member No. of meetings

attended

Mr. Tulsi R.Tanti Chairman 2

Mr. Girish R.Tanti Member 1
Mr. Ajay Relan Member 2
Mr. V.Raghuraman Member 1

The Rights Issue Committee was formed for the specific and limited purpose of offer, issue and allotment of equity shares on
rights basis to the existing equity shareholders of the Company (“Rights Issue”). Upon conclusion of the said Rights Issue of
the Company, the Rights Issue Committee stands dissolved.

Suzlon Energy Limited, Annual Report 2010-11 53

4. Annual General Meetings (AGMs)

I. The details of the last three annual general meetings of the Company are noted below:

Financial Year AGM No. Venue Day & Date Time

2007-08 13th Bhaikaka Bhavan, Law College Road, Wednesday, July 30, 2008 11.00 AM.
Ahmedabad - 380 006.

2008-09 14th Gajjar Hall, Nirman Bhavan, Thursday, August 13, 2009 11.00 AM.
Opposite Law Garden, Ellisbridge,
Ahmedabad- 380 006.

2009-10 15th Bhaikaka Bhavan, Law College Road, Friday, August 13, 2010 11.00 AM.
Ahmedabad - 380 006.

II. Special Resolutions passed at last three AGMs:

a. At the 13th AGM held on July 30, 2008-

Create, offer, issue and allot equity shares, FCCB, ADR, GDR, IDR and / or such other equity linked instruments to an
extent of Rs.5,000 Crores.

b. At the 14th AGM held on August 13, 2009-

(i) Create, offer, issue and allot equity shares, GDR, ADR, FCCB, FCD, NCD with warrants, OFI convertible into or
linked to equity shares and / or any other instruments and / or combination of instruments with or without
detachable warrants to an extent of Rs.5,000 Crores;

(ii) Increase in the ceiling limit on total holdings of FII, SEBI approved sub-account of FII from 24% to 49% of the
paid-up equity share capital of the Company pursuant to the provisions of Foreign Exchange Management
(Transfer or Issue of Security by a person resident outside India), Regulations, 2000;

(iii) To issue equity shares of the Company to the eligible employees of the Company in terms of ESOP-Perpetual-I;

(iv) To issue equity shares of the Company to the eligible employees of the Company’s subsidiary companies in
terms of the ESOP-Perpetual-I.

c. At the 15th AGM held on August 13, 2010-

(i) Modification in terms of Special ESOP-2007 scheme for Employees of the Company;

(ii) Modification in terms of Special ESOP-2007 scheme for employees of the Company’s Subsidiary
Companies;

(iii) Appointment of Mr. Pranav T.Tanti, son of the Managing Director of the Company in a subsidiary of the
Company.

III. Details of resolution passed by way of Postal Ballot

Pursuant to section 192A of the Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal Ballot)
Rules, 2001, during the financial year 2010-11, the Company had conducted a postal ballot process vide notice dated
October 11, 2010, for obtaining approval of shareholders on the following special resolutions, the results of which were
declared on November 16, 2010. The details of special resolutions passed and voting pattern are noted below:

a. Special Resolution for issue and allotment of 3,19,92,582 equity shares of Rs.2 each of the Company as Preferential
Allotment to IDFC PE:

Results of Postal Ballot

Sr. No. Particulars No. of Postal Ballots No. of votes
received (No. of (No. of Equity
Equity Shareholders) Shares)

i. Total Postal Ballot Forms received from the 374 110,79,25,483

the Shareholders
ii. Invalid Postal Ballots / Votes 16 1,30,67,853
iii. Total Valid Postal Ballots / Votes 358 109,48,57,630
iv. Total Postal Ballots / Votes ‘In Favour’ 338 109,47,86,573
In Favour % (iv / iii) 94.41% 99.99%
v. Total Postal Ballots / Votes ‘Against’ 20 71,057
Against % (v / iii) 5.59% 0.01%

54 Suzlon Energy Limited, Annual Report 2010-11

 b. Special Resolution for increase of Authorised Share Capital to Rs.700 Crores:

Sr. Particulars Results of Postal Ballot

No. No. of Postal Ballots No. of votes
received (No. of (No. of Equity
Equity Shareholders) Shares)

i. Total Postal Ballot Forms received from the Shareholders 374 110,79,25,483
ii. Invalid Postal Ballots / Votes 24 1,30,73,228
iii. Total Valid Postal Ballots / Votes 350 109,48,52,255
iv. Total Postal Ballots / Votes ‘In Favour’ 338 109,48,45,456
In Favour % (iv / iii) 95.57% 100.00%
v. Total Postal Ballots / Votes ‘Against’ 12 6,799
Against % (v / iii) 3.43% 0.00%

c. Special Resolution for issue of Securities up to Rs. 5,000 Crores:

Sr. Particulars Results of Postal Ballot

No. No. of Postal Ballots No. of votes
received (No. of (No. of Equity
Shareholders) Equity Shares)

i. Total Postal Ballot Forms received from the Shareholders 374 110,79,25,483
ii. Invalid Postal Ballots / Votes 28 1,31,08,305
iii. Total Valid Postal Ballots / Votes 346 109,48,17,178
iv. Total Postal Ballots / Votes ‘In Favour’ 274 104,46,28,263
In Favour % (iv / iii) 79.19% 95.42%
v. Total Postal Ballots / Votes ‘Against’ 72 5,01,88,915
Against % (v / iii) 20.81% 4.58%

Name of scrutinizer

Mr. Ashwin Lalbhai Shah, Advocate, Gujarat High Court, Ahmedabad.

Procedure of postal ballot

The postal ballot process was conducted in accordance with the provisions of Section 192A of the Companies Act, 1956 read
with the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001.

5. Disclosures:

a. Subsidiary Companies

(i) None of the Company’s Indian subsidiary companies fall under the definition of “material non-listed Indian
subsidiary”.

(ii) The Audit Committee of the Company reviews the financial statements and in particular the investments made by
unlisted subsidiary companies of the Company.

(iii) The minutes of the Board meetings of unlisted subsidiary companies are periodically placed before the Board which
is also periodically informed about all significant transactions and arrangements entered into by the unlisted
subsidiary companies.

b. Disclosure on materially significant related party transactions

Besides the transactions mentioned elsewhere in the Annual Report, there were no other materially significant related
party transactions during the financial year 2010-11 that may have potential conflict with the interest of the Company at
large. The details of related party transactions as per Accounting Standard-18 forms part of notes to the accounts.

c. Disclosure of accounting treatment

The Company follows accounting standards notified pursuant to the Companies (Accounting Standards) Rules, 2006
(as amended) and in the preparation of financial statements and in the opinion of the Company, it has not adopted a
treatment different from that prescribed in any accounting standard.

d. Board disclosures-risk management

The risk assessment and minimisation procedures are in place and the Audit Committee of the Board is regularly informed
about the business risks and the steps taken to mitigate the same.

Suzlon Energy Limited, Annual Report 2010-11 55

e. Proceeds from public issues, rights issues, preferential issues etc.

The proceeds raised in previous years from Initial Public Offering (IPO), Qualified Institutional Placement (QIP), private
placement of Non-Convertible Debentures, Global Depository Receipts (GDRs) and Rights issue have been fully utilised in
terms of the objects of the issue as stated in the respective Offering Documents.

f. Management Discussion and Analysis Report

The Management Discussion and Analysis Report forms part of the Directors’ Report.

g. Profile of directors seeking appointment / re-appointment

Profile of the directors seeking appointment / re-appointment forms part of the Notice convening the 16th Annual General
Meeting of the Company.

h. Certification from Managing Director and Chief Financial Officer

The requisite certification from the Chairman & Managing Director and Chief Financial Officer for the financial year 2010-11
required to be given under clause 49(V) was placed before the Board of Directors of the Company at Board Meeting held on
July 30, 2011.

i. Details of non-compliance with regard to capital market

With regards to the matters related to capital markets, the Company has complied with all requirements of the Listing
Agreement as well as SEBI regulations and guidelines. No penalties were imposed or strictures passed against the Company
by the Stock Exchanges, SEBI or any other statutory authority during the last three years in this regard. The Company has
paid listing fees to the stock exchanges and annual custodial fees to the depositories for the financial year 2011-12 in terms
of Clause 38 of Listing Agreement. There were no penalties imposed nor strictures passed on the Company by the Stock
Exchanges, SEBI or any other statutory authority on any matter related to capital markets, during last three years.

j. Details of compliance with mandatory requirements and adoption of non-mandatory requirements of Clause 49 of the
Listing Agreement

The Company has complied with all the mandatory requirements as mandated under Clause 49 of the Listing Agreement. A
certificate from the statutory auditors of the Company to this effect has been included in this report. Besides mandatory
requirements, the Company has constituted a Remuneration Committee to consider and recommend the remuneration to
the executive directors and approval and administration of Employee Stock Option Plans (ESOPs).

k. Whistle Blower Policy

The Company has adopted a whistle blower policy, which is available on its website www.suzlon.com. The employees are
free to express their concerns through e-mail, telephone, fax or any other method to the persons as mentioned in the policy.

As disclosed in our Annual Report for the year 2008-09, a formal criminal complaint/FIR has been lodged against an ex-
employee of the Company, suspected of having committed fraud arising out of certain commission payments made by
suppliers to entities alleged to be owned by suspected ex-employee, and the matter is currently under investigation by the
Police.

l. Means of Communication

(i) Quarterly / Annual Results

The quarterly / annual results and notices as required under Clause 41 of the Listing Agreement are normally
published in the ‘The Financial Express’ (English & Gujarati editions).

(ii) Posting of information on the website of the Company

The annual / quarterly results of the Company, shareholding pattern, the official news releases, notifications to the
stock exchanges and the presentations made by the Company to analysts and institutional investors are regularly
posted on its website www.suzlon.com. The Company is in compliance of Clause 54 of the Listing Agreement.

m. Details of unclaimed shares in terms of Clause 5A of Listing Agreement

In terms of Clause 5A of the Listing Agreement, the details of shares allotted pursuant to the Initial Public Offering (IPO)
which are unclaimed and are lying in demat suspense account are given below:

Particulars No. of Cases No. of Shares

Aggregate number of shareholders and the outstanding shares in the 116 10200
suspense account lying at the beginning of the year i.e. as on April 1, 2010
Number of shareholders who approached to Issuer / Registrar for transfer 6 540
of shares from suspense account during the year 2010-11
Number of shareholders to whom shares were transferred from suspense 4 400
account during the year 2010-11
Aggregate number of shareholders and the outstanding shares in the 112 9800
suspense account lying at the end of the year i.e. as on March 31, 2011

The voting rights on these shares transferred to suspense account shall remain frozen till the rightful owner of such shares
claims the shares.

56 Suzlon Energy Limited, Annual Report 2010-11

6. General Shareholder Information

I. Annual General Meeting : 16th Annual General Meeting

Day and date : Tuesday, September 27, 2011
Time : 11:00 am
Venue : J.B. Auditorium, AMA Complex, ATIRA,
Dr. Vikram Sarabhai Marg, Ahmedabad-380015.
II. Financial calendar for 2011-12 (tentative schedule)
Financial year : April 1 to March 31
Board meetings for approval of quarterly results:
1st Quarter ended on June 30, 2011 : within 45 days from the close of quarter
2nd Quarter ended on September 30, 2011 : within 45 days from the close of quarter
3rd Quarter ended on December 31, 2011 : within 45 days from the close of quarter
4th Quarter ended on March 31, 2012 : within 45 days from the close of quarter
Annual results for financial year ended March 31, 2012 (audited) : Within 60 days of the close of financial year
Annual general meeting for the year 2011-12 : In accordance with Section 166 of Companies Act,
1956
III. Book closure date : Monday, September 19, 2011 to
Tuesday, September 27, 2011 (both days inclusive)
IV. Dividend payment date : Not Applicable
V. Listing on stock exchanges : The equity shares of the Company are listed on the
following stock exchanges in India:
a. National Stock Exchange of India Limited (NSE)
“Exchange Plaza”, Bandra-Kurla Complex,
Bandra (East), Mumbai-400051
b. Bombay Stock Exchange Limited (BSE)
P.J. Towers, Dalal Street, Mumbai-400001
VI. Stock code
For equity shares:
National Stock Exchange of India Limited (NSE) : SUZLON
Bombay Stock Exchange Limited (BSE) : 532667
International Security Identification Number (ISIN) : INE040H01021
for equity shares held in Demat form with NSDL & CDSL
VII. Corporate Identity Number : L40100GJ1995PLC025447
VIII. Market Price Data
Monthly high, low quotations and trading volumes of the Company’s equity shares during the financial year 2010-11 at NSE
and BSE are noted below:

Stock Exchange NSE BSE

Month High Low No. of shares High Low No. of shares
traded traded
Apr-10 76.20 67.65 26,91,94,830 76.20 67.70 6,59,16,111
May-10 71.75 55.60 39,26,36,680 71.75 55.55 11,48,76,642
Jun-10 59.10 52.10 35,42,61,768 59.10 52.15 9,76,58,406
Jul-10 62.45 51.80 25,01,68,062 62.45 56.05 6,76,05,992
Aug-10 59.00 45.85 29,03,56,969 58.80 45.90 8,12,80,563
Sep-10 59.00 45.95 40,33,70,208 57.85 43.05 11,07,51,105
Oct-10 60.90 53.05 35,90,10,491 60.80 52.70 8,84,29,087
Nov-10 58.90 43.00 26,73,46,872 66.30 43.00 5,78,53,302
Dec-10 55.35 46.00 34,51,76,400 55.35 45.95 8,75,89,360
Jan-11 57.30 46.35 44,75,02,518 57.30 46.45 11,70,76,754
Feb-11 51.70 42.80 36,84,24,168 51.75 42.80 8,72,31,367
Mar-11 50.00 43.40 36,32,12,191 50.00 43.80 7,61,58,096

Suzlon Energy Limited, Annual Report 2010-11 57

IX. Performance of share price of the Company in comparision with the broad-based indices

Comparison of the Company's share price with NSE Nifty

Nifty (LHS) Suzlon Share Price (RHS)

7000 80
6000 70

5000 60

Share Price
50
4000
Nifty

40
3000
30
2000 20
1000 10
0 0

Comparison of the Company's share price with BSE Sensex

Sensex (LHS) Suzlon Share Price (RHS)

25,000 80
70
20,000 60

Share Price
15,000 50
Sensex

40
10,000 30
5,000 20
10
- -

Comparison of the Company's share price with BSE capital goods index

Capital Goods Index (LHS) Suzlon Share Price (RHS)

18,000 80
16,000 70
14,000 60
Capital Goods

12,000 50 Share Price

10,000
40
8,000
30
6,000
4,000 20
2,000 10
0 0

X. Registrar and share transfer agents : Karvy Computershare Private Limited

17-24, Vittalrao Nagar, Madhapur,
Hyderabad-500081
Tel: (+91 40) 44655000
Fax: (+91 40) 23420814
Toll Free No. 1800-3454-001
Email: [email protected]
Website: www.karvy.com
Contact person: Mr. V.K.Jayaraman, General Manager and
Mr. S. Krishnan, Senior Manager.

XI. Share transfer system:

The shares of the Company are compulsorily traded in dematerialised form. Shares received in physical form are transferred
within a period of 30 days from the date of lodgement subject to documents being valid and complete in all respects. In
order to expedite the process of share transfer in line with corporate governance requirements, the Company has delegated
the power of share transfer to registrar and share transfer agent - Karvy Computershare Private Limited.

All communications regarding change of address (if the shares are held in physical form), transfer of shares and change of
mandate (if the shares are held in physical form) can be addressed to Karvy Computershare Private Limited, Hyderabad, our
Registrar & Share Transfer Agent.

58 Suzlon Energy Limited, Annual Report 2010-11

 XII. Distribution of shareholding

a. The distribution of shareholding of the Company as on March 31, 2011 is as under:

No. of shares held No. of share-holders % to total Nominal amount % to total

(of Rs. 2 each) shareholders of shares held shares
of Rs. 2 each

Up to 5000 9,60,031 98.29% 46,35,27,832 13.04%

5001-10000 10,293 1.05% 7,40,78,426 2.08%
10001-20000 3,717 0.38% 5,37,53,370 1.51%
20001-30000 918 0.09% 2,28,59,858 0.64%
30001-40000 453 0.05% 1,62,13,098 0.46%
40001-50000 233 0.02% 1,06,45,096 0.30%
50001-100000 483 0.05% 3,52,83,794 0.99%
100001 & above 603 0.06% 287,83,69,820 80.97%
Total 9,76,731 100.00% 355,47,31,294 100.00%

b. Shareholding pattern as on March 31, 2011

The shareholding pattern of the Company as on March 31, 2011 was as under:

Category of shareholders No. of shares of % of total

Rs. 2 each shares

Promoters (including persons acting in concert) 97,47,41,588 54.84%

Foreign Institutional Investors 21,98,19,697 12.37%
Non-resident Indians / Overseas Corporate Bodies / Foreign Nationals 2,26,92,071 1.28%
Mutual Funds, Financial Institutions and Banks 6,02,49,028 3.39%
Private Corporate Bodies 12,70,42,337 7.15%
Resident Indians 36,85,62,362 20.74%
GDRs 42,58,564 0.24%
Total 177,73,65,647 100.00%

XIII. Dematerialisation of shares

The equity shares of the Company are compulsorily traded in dematerialised form and are available for trading under
National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The International
Security Identification Number (ISIN) of the Company under Depository System is INE040H01021. Number of shares held in
dematerialised and physical mode as on March 31, 2011 are noted below:

Particulars No. of shares % of total

capital issued

Shares held in dematerialised form with NSDL 163,28,18,760 91.87%

Shares held in dematerialised form with CDSL 13,57,54,251 7.64%
Shares held in physical form 87,92,636 0.49%
Total 177,73,65,647 100.00%

XIV. Status of investors' complaints

The status of investors' complaints as on March 31, 2011 is as follows:

Number of complaints as on April 1, 2010 0

Number of complaints received during the financial year 2010-11 87
Number of complaints resolved up to March 31, 2011 87
Number of complaints pending as on March 31, 2011 0

The complaints received were mainly in the nature of non-receipt of refund orders, non-receipt of electronic credits, non-
receipt of dividend warrants/mandates, non-receipt of annual reports, etc.

There were no pending requests for transfer of shares of the Company as on March 31, 2011

Suzlon Energy Limited, Annual Report 2010-11 59

XV. Name, designation and contact details of the Compliance Officer

Mr. Hemal A. Kanuga, Company Secretary, is the Compliance Officer of the Company. The Compliance Officer can be
contacted at:

“Suzlon”, 5, Shrimali Society,

Near Shri Krishna Complex,
Navrangpura, Ahmedabad-380009
Tel.: +91-79-26471100
Fax: +91-79-26565540 / 26442844
Email: [email protected]

Separate email-id for redressal of investors’ complaints

As per Clause 47(f) of the Listing Agreement with stock exchanges, the Company has designated a separate email id
([email protected]) exclusively for redressal of investors’ complaints.

XVI. Outstanding GDRs/warrants or any other convertible instruments, conversion date and likely impact on equity:
GDRs:
In July 2009, the Company issued 1,46,00,000 Global Depositary Receipts (the “GDRs”) representing 5,84,00,000 equity
shares of par value Rs.2 per share raising a total of USD 108.04 Million. The outstanding GDRs as on March 31, 2011 are
10,64,641 representing 42,58,564 equity shares.
FCCBs:
In May 2010, the Company successfully concluded a consent solicitation exercise on the existing five series of bonds (FCCBs).
The bondholders of all the five series were asked to vote on an extraordinary resolution for removal of financial covenants
on the USD 300 Million and USD 200 Million bonds and waiver of any prior breaches. As a part of this exercise, the Company
paid; an aggregate incentive fee of USD 6,019,220.00 across all existing five series of bonds.
Further, as an incentive to the above waiver and to enhance the chances of conversion of the USD 300 Million and the USD
200 Million bonds the Company reduced the conversion price of the USD 300 Million bonds from Rs.359.68 per equity share
to Rs.97.26 per equity share and the USD 200 Million bonds from Rs.371.55 per equity share to Rs.97.26 per equity share
and amended the fixed exchange rates on these bonds to 1 USD = Rs.44.6000.
The shares to be allotted on such conversion of the USD 300 Million bonds and USD 200 Million bonds will aggregate to
7.90% of the post-conversion equity base of the Company based on the equity base of March 31, 2011.
The entire exercise was carried out in accordance with the Ministry of Finance press release dated February 15, 2010 and
March 15, 2010 and as per the approval of Reserve Bank of India.
The total FCCBs outstanding on the books of the Company is USD 47,90,39,000 as at March 31, 2011.
Post March 31, 2011, Company issued USD 175 Million, 5% Foreign Currency Convertible bonds at par. The Bonds are
convertible at any time on and after May 23, 2011 up to the close of business on April 6, 2016 by holders of the Bonds into
fully paid equity shares with full voting rights with a par value of Rs.2/- each of the Company at an initial conversion price of
Rs.54.01 per share with a fixed rate of exchange on conversion of Rs.44.5875 to US$1.00.

XVII. Plant / Office locations

Office locations

1-8-304/307, 3rd Floor, Kamala Tower, Pattigadda "Suzlon", 5, Shrimali Society, Near Shri Krishna
Street # 1, S.P.Road, Secunderabad 500003 Complex, Navrangpura, Ahmedabad-380009
301 & 302, Omega Towers, 9th Lane, Rajarampuri, Main 4th Floor, 99A, Park Street, Kolkata – 700016
Road, Kolhapur- 416008, Maharashtra
House No. A 31, Guru Kripa, Dharam Narayan ji ka
312, 3rd Floor, 305, S.C.O. 215-217, Sector 34-A, hatha, Paota, Jodhpur – 342001, Rajasthan
Chandigargh-160034
2nd, 5th Floor, Godrej Millennium, 9, Koregaon Park
1102, Raheja Towers, 12th Floor, 214, Nariman Point, Road, Pune-411001, Maharashtra
Free Press Journal Marg, Mumbai - 400021,
Maharashtra 1/4, Amrut Commercial Centre, Sardar Nagar, Main
Road, Near Aston Cinema, Rajkot, Gujarat
Shop No. 238, 240 & 241, 2nd Floor, Lalganga Shopping
Mall, Raipur, Chhattisgarh G-3, Sky, Hi Chambers, 5, Park Road, Hazaratganj,
Lucknow – 226001, U.P.
6th Floor, East Quadrant, IL & FS Financial Centre, Plot
No C-22, G Block, Bandra Kurla Complex, Bandra (E), 206, Golden Arcade, Plot No. 141/142, 2nd Floor,
Mumbai-400051, Maharashtra Sector-8, OSCI Road, Gandhidham, Kutch-370201,
Gujarat
Flat No.4, Eros Corporate Towers, 9th Floor, Nehru
Place, New Delhi-110019 S. 170/1 to 8, Village: Sadesatra Nali, One Earth, Opp.
Magarpatta City, Hadapsar, Tal.: Haveli, Pune – 411028
Jasol House, Opp. Nobel Int. School, Jodhpur – 342010,
Rajasthan

60 Suzlon Energy Limited, Annual Report 2010-11

 4th Floor, Shiv Towers, Patto, Panjim-Goa Ashirwad Complex, 1st Floor, Door No.49-A, Advaitha Ashram
Road, Salem-636004, Tamilnadu
JMD Twins, 101 Ground Floor, Opp. Loyala College
Auditorium, Venkateswara Nagar, Srinagar Colony, Ethibiz Towers, Jalana Road, Near Venkateshwara Gas Agency,
Vijayawada – 520008 Aurangabad-431005, Maharashtra
Unit No.101A, 801, Prestige Towers, No. 100/25, Ward SCO No. 32, 1st Floor, Feroze Gandhi Market, Ludhiana
No.76 Field Marshal K.M.Karriappa Road, (Residency
"Avadh House" 57, Jay Park, Rajnagar Chowk, Nana Mauva
Road), Bangalore-560025, Karnataka
Main Road, Rajkot- 360004. Gujarat
1st Floor, "Neelkanth", A1-Bhavani Singh Road, Opp.
Ground Floor & First Floor, 285/10, Koregaon Park, Behind
Nehru Sahkar Bhavan, C-Scheme, Jaipur 302001,
Singh Motors, Opposite Hotel Gulmohar Jupiter, Pune
Rajasthan
Ground Floor, Centre Point # 501/1741, Kharvel Nagar,
2nd Floor, No. 457/1, B1, Vivekanand Hospital Road,
Janapath, Bhubaneshwar-751001, Orissa
Deshpande Nagar, Hubli.-580029, Karnataka
"Deeplaxmi" Plot No. 28, Vijay Colony, Government Colony
201, Business Centre, 1, Madhuvan, Udaipur,
(East), Vishrambag, Sangli-416416
Rajasthan.
“Manas”, Block No.2, Lokmanya Nagar, Behind Natraj Cinema,
Door No. 37/6C7& 37/6C10, Maruti Arcade, 2nd Main,
Dhule-424001
9th Cross, PJ Extension, Akammadevi Road, Davangere-
2, Karnataka Factory locations
106, Delta Wing, 1st Floor, Raheja Towers, 177, Anna
Survey No.588, Paddar, Bhuj-370105, Gujarat Survey No.282,
Salai (Mount Road), Near LIC Building, Chennai 600002,
Chhadvel (Korde), Sakri, Dhule-424305
Tamilnadu
Plt No. H-24 & H-25, M.G. Udyognagar Indl. Estate, Dabhel,
C-12/13, 2nd Floor, Commercial Complex, LHH Road,
Daman-396210
Opp. KMC Mangalore- 425880, Karnataka
Survey No.574, 59, Thiruvandarkoil, Thribhuvani Road,
Office No.6, Wellington Plaza Shopping-cum-Office
Pondicherry-605107
complex, 90, Anna Salai, Chennai-600002, Tamilnadu
Plot No.306/1 & 3, Bhimpore, Nani Daman, Daman-396210
Block No.141-144, Shriramshyam Tower, 1st Floor, S.V.
Patel Marg, Sadar, Near NIT Building, Nagpur-440012, Block No.93, National Highway No.8, Varnama-Vadsala, Dist.
Maharashtra Vadodara-391240
Plot No. 108/4 1st & 2nd Floor (East Wing), Srivari Gokul Survey No.42/2 & 3, 54, 1 to 8, Bhenslore Road, Dunetha,
Tower, Race Course Road Coimbatore-641018, Daman-396210
Tamilnadu
Survey No.86/3-4, 87/1-3-4, 88/1-2-3, 89/1-2, Kadaiya Road,
Office No. S.F.13, IInd Floor, Manasarover Complex, Daman-396210
MH-12 (Hoshingabad Road), Near MPSRTC Depot,
Plot No. 4, OIDC, M.G.Udhyog Nagar,Dabhel, Nani Daman,
Bhopal-462016 Madhya Pradesh
DAMAN 396210
4 & 5 Aparna, A.A.Tower, 2nd Floor, By- Pass Road,
Plot No.77, 13, Opp.GDDIC, Vanakbara Road, Village Malala,
Madurai-625010, Tamilnadu
Diu-362520
Orbit Mall, 3rd Floor, Office No. 328 & 335, Scheme No.
54, PU- 4, 305 / 306, AB Road, Indore, Madhya Pradesh- Survey No.282, Chadvel (Korde), Sakri, Dhule 424305
452001
Technical service centre:

Plt No. H-24 & H-25, M.G. Udyognagar Indl. Estate, Dabhel,
Daman – 396210

XVIII. Address for correspondence

Registered Office: “Suzlon”, 5, Shrimali Society, Near Shri Krishna Complex, Navrangpura, Ahmedabad-380009
Tel.: +91-79-26471100, Fax: +91-79-26565540 / 26442844, Email: [email protected]

For and on behalf of the Board of Directors

Place: Pune Tulsi R.Tanti

Date: July 30, 2011 Chairman & Managing Director

Suzlon Energy Limited, Annual Report 2010-11 61

 DECLARATION FOR COMPLIANCE WITH CODE OF ETHICS OF THE COMPANY AS PER
CLAUSE 49(1)(D)(ii) OF THE LISTING AGREEMENT

I, Tulsi R. Tanti, Chairman & Managing Director of Suzlon Energy Limited hereby declare that, as of March 31, 2011, all the Board members
and senior management personnel have affirmed compliance with the Code of Ethics laid down by the Company.

For Suzlon Energy Limited

-sd-.
Tulsi R.Tanti
Date: July 22, 2011 Chairman & Managing Director

_____________________________________________________________________________________________________________

Auditors’ certificate
To

The Members of Suzlon Energy Limited,

We have examined the compliance of conditions of corporate governance by Suzlon Energy Limited, for the year ended on March 31, 2011,
as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges.

The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to
procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the corporate
governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the company has complied
with the conditions of corporate governance as stipulated in the above mentioned Listing Agreement.

We further state that such compliance is neither an assurance to the future visibility of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

For SNK & Co. For S.R. BATLIBOI & Co.

Firm Registration No. 109176W Firm Registration No. 301003E
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi

Partner Partner
Membership No: 46238 Membership No: 89802
Place : Pune Place : Pune
Date : July 30, 2011 Date : July 30, 2011

62 Suzlon Energy Limited, Annual Report 2010-11

 Employee Stock Option Plans (ESOPs)
The exponential growth of the Company has, in large measure, been possible owing to the wholehearted support, commitment and teamwork of its personnel. Accordingly, the Company has introduced
Employees Stock Option Plan-2005 (ESOP-2005), Employees Stock Option Plan-2006 (ESOP-2006), Employees Stock Option Plan-2007 (ESOP-2007), Special Employee Stock Option Plan-2009 (forming part of
ESOP Perpetual-I) (Special ESOP-2009) and Special Employees Stock Option Plan-2007 (Special ESOP-2007) for its employees and employees of its Subsidiaries. The details of options granted under various ESOPs
of the Company as required to be provided in terms of Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (SEBI ESOP Guidelines) are
given as under:

Sr. Particulars ESOP-2005 ESOP-2006 ESOP-2007 Special ESOP-2009 forming part of ESOP Perpetual-I Special ESOP-
No. (Tranche-I) (Tranche-II) (Tranche-III) (Tranche-IV) (Tranche-V) 2007
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
1 Options granted under the Plan as at 4605000 519500 1878000 10916787 135000 175000 50000 75000 14143500
March 31, 2011 (Nos.)
2 Pricing formula 50% of final The average of The closing For all Employees (except US ) - 20% Discount to 20% Discount The closing The closing
issue price daily weighted price of the the closing price of the Equity Shares of the to the closing price of the price of the

Suzlon Energy Limited, Annual Report 2010-11

determined in average price of Equity Shares of Company on BSE as on date of grant; price of the Equity Shares of Equity Shares of
the IPO of the Company's the Company Equity Shares of the Company the Company
Company shares listed on on BSE as on For US Employees – the closing price of the the Company on BSE as on on BSE as on
BSE for the date of grant Equity Shares of the Company on BSE as on date on BSE as on date of grant date of grant
period from of grant date of grant
October 19,
2005 to March

63
31, 2006
3 Options outstanding as at 348000 383000 1699000 10204496 135000 Nil Nil Nil Nil
April 1, 2010 (Nos.)
4 Options granted during the year Nil Nil Nil Nil Nil 175000 50000 75000 14143500
ended March 31, 2011 (Nos.)
5 Options Vested during the year Nil 83000 1026000 3947711 67500 Nil Nil Nil Nil
ended March 31, 2011 (Nos.)
6 Options exercised during the year 8000 Nil Nil Nil Nil Nil Nil Nil Nil
ended March 31, 2011 (Nos.)
7 Total number of shares arising as 8000 Nil Nil Nil Nil Nil Nil Nil Nil
a result of exercise of options (Nos.)
8 Options forfeited / lapsed / Nil 51000 331000 2375607 Nil Nil Nil Nil 2931000
cancelled during the year ended
March 31, 2011 (Nos.)
9 Options in force as at 340000 332000 1368000 7828889 135000 175000 50000 75000 11212500
March 31, 2011 (Nos.)
10 Variation of terms of options during Nil Nil Nil Nil Refer Note 1
the year ended March 31, 2011
11 Money realised by exercise of 408000 Nil Nil Nil Nil Nil Nil Nil Nil
options (Rs.)
 Contd.

Sr. Particulars ESOP-2005 ESOP-2006 ESOP-2007 Special ESOP-2009 forming part of ESOP Perpetual-I Special ESOP-
No. (Tranche-I) (Tranche-II) (Tranche-III) (Tranche-IV) (Tranche-V) 2007
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
12 Employee wise details of options
granted to:
(I) Senior Managerial Personnel Refer Note 2 Refer Note 2 Refer Note 2 Refer Note 2 Refer Note 2
(ii) Employees receiving 5% or Nil Nil Nil Refer Note 3 Nil
more of the total number of
options granted during the year
(iii) Employees granted options Nil Nil Nil Nil Nil Nil Nil Nil Nil
equal to or exceeding 1%
of the issued capital
13 Diluted EPS on issue of shares on
exercise calculated in accordance -1.09
with AS 20 (Rs)
14 Difference between the employee The Company has provided Rs.0.57 Crore (Rs. 0.28 Crore) at the rate of Rs.182.60 per option under Scheme II, Rs.0.01 Crore (Rs.0.28 Crore) at the rate of Rs.2.20
compensation cost calculated using per option under Scheme III, Rs.5.19 Crore (Rs.6.98 Crore) at the rate of Rs.22.25 per option and Rs.4.75 per option under Scheme IV-Tranche I, Rs.0.07 Crore
the intrinsic value of stock options (Rs.0.01 Crore) at the rate of Rs.15.45 per option and Rs. Nil per option under Scheme V-Tranche II, Rs. 0.08 Crore (NIL) at the rate of Rs.12.29 per option and
and the employee compensation Rs.0.60 per option under Scheme VI – Tranche III and Rs.0.02 Crore (NIL) at the rate of Rs.11.09 per option under scheme VII– Tranche IV for the year ended March

64
cost that shall have been 31, 2011. The value of option is calculated as a difference between intrinsic value of options and exercise price. Had the company adopted the fair value method
recognised if the fair value of the based on ‘Black-Scholes’ model for pricing and accounting the options, the cost would have been Rs.51.84 (Rs.56.76) per option for Scheme I, Rs.231.32
options had been used and the (Rs.246.77) per option for Scheme II, Rs. 46.31 (Rs.51.31) per option for Scheme III, Rs.39.75 (Rs.45.03) per option and Rs.46.25 (Rs.50.86) per option for Scheme
impact of this difference on profits IV-Tranche-I, Rs.35.91 (Rs.40.32) per option, Rs.41.39 (Rs.45.25) per option for Scheme V-Tranche-II, Rs.22.76 (Nil) per option, Rs.28.13 (Nil) per option for
and EPS of the Company Scheme VI-Tranche-III, Rs.28.09 (Nil) per option for Scheme VII – Tranche IV and Rs.22.48 (Nil) per option for Scheme VIII – Tranche V, Rs.29.53 (Nil) per option for
Scheme IX and accordingly the loss after tax would have been higher by Rs.34.33 Crore (Rs.18.15 Crore).
15 Weighted average exercise price and weighted average fair value of options, exercise price of which is less than the market price on the date of grant:
(I) Weighted average exercise 51.00 192.20 90.50 70.00/87.50 61.80/77.25 46.76/58.45 44.36 47.70 72.70
price (Rs.)
(ii) Weighted average fair 51.84 231.32 46.31 46.25/39.75 41.39/35.91 28.13/22.76 28.09 22.48 29.53
value (Rs.)
16 Significant assumptions used to estimate fair values of options granted during the year
(I) Risk free interest rate 8.20% 8.20% 8.20% 8.20% 8.20% 8.20% 8.20% 8.20% 8.20%
(ii) Expected life (years) 6 6 6 5 5 5 5 5 4
(iii) Expected volatility 48.90% 48.90% 48.90% 48.90% 48.90% 48.90% 48.90% 48.90% 48.90%
(iv) Dividend yield Nil Nil Nil Nil Nil Nil Nil Nil Nil
(v) The price of the underlying Not Applicable 374.80 92.70 92.25 77.25 59.05 55.45 47.70 71.85
share in market at the time
of option grant (Rs.)

Suzlon Energy Limited, Annual Report 2010-11

The Securities and Exchange Board of India (SEBI) has issued Securities and Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines 1999. This is effective for all stock option schemes established after June 19, 1999. In
accordance with these guidelines, the excess of the market price of the underlying equity shares as of the date of grant over the exercise
price of the option, including upfront payments, if any, is to be recognised and amortised on a straight line basis over the vesting period.
Post March 31, 2011, the remuneration committee of the Board of Directors of the Company has granted 226500 options in terms of
Special ESOP-2007 and 50000 options in terms of Special ESOP-2009 on April 27, 2011 and 65000 options in terms of Special ESOP-2009 on
July 30, 2011 to the eligible employees of the Company’s Subsidiaries. Since the options under Special ESOP-2007 and Special ESOP-2009
have been granted post March 31, 2011, the details required to be provided under SEBI ESOP Guidelines has not been provided.
The equity shares issued / to be issued under the ESOP-2005, ESOP-2006, ESOP-2007, Special ESOP-2009 and Special ESOP-2007 of the
Company shall rank pari passu in all respects including dividend with the existing equity shares of the Company.
Notes:
1. During the year under review, the terms of Special ESOP-2007 were modified in terms of recommendation of the Remuneration
Committee and as approved and ratified by the members at the 15th Annual General Meeting of the Company held on August 13,
2010. The details of modification / variation are given as under:
i. Total number of options granted / to be granted to each eligible employee has been increased from 750 options to 1500 options.
ii. Earlier the total number of options approved under the Special ESOP-2007 was 15000000 options, out of which 4000000
options were reserved for employees of the Company and 11000000 Options were reserved for employees of its
subsidiaries. As per modified terms, the total number of options granted / to be granted under Special ESOP-2007 to the
employees of the Company and its subsidiaries, in aggregate shall not exceed 15000000.
iii. The vesting period of 3 years from the date of grant is changed as under:
500 options at the end of 1st year from the date of grant;
500 options at the end of 2nd year from the date of grant; and
500 options at the end of 3rd year from the date of grant.
iv. The Exercise Period approved was 1 year from the date of vesting. It is now changed to anytime after the date of vesting for
the vested options, subject to the condition that all vested options must be exercised latest by March 31, 2014.
v. The employees of REpower and Hansen were specifically excluded in the earlier resolution. Hansen has ceased to be a
subsidiary of the Company. Six eligible employees of the Company’s subsidiary in Turkey have been excluded due to huge
regulatory costs involved.
2. The details of options granted to senior managerial personnel under various ESOPs of the Company are given as under:
Name of Senior Designation No. of Stock options Granted
Managerial Personnel *Under *Under Under Under Special Under Special
ESOP-2005 ESOP-2006 ESOP-2007 ESOP-2007 ESOP-2009
Kirti Vagadia Head Corporate Finance 200000 43000 50000 Nil 500000
Dr. V. V. Rao Chief Quality Officer Nil 23500 Nil Nil 85572
Andris E. Cukurs Chief Executive Officer – USA Nil Nil 50000 Nil 500000
Dan Kofoed Hansen Chief Executive Officer – Nil Nil 50000 Nil 500000
Australia & New Zealand
Frans Visscher Chief Executive Officer - Europe & Nil Nil Nil Nil 500000
Chief Human Resource Officer
Robin Banerjee Chief Financial Officer Nil Nil Nil Nil 500000
Duncan Koerbel President Global Services Nil Nil Nil Nil 139402
Sundar Rajagopalan Chief Legal Officer Nil Nil Nil Nil 100119
John O' Halloran Chief Technology Officer Nil Nil Nil Nil 60000
Arthur Lavleri Chief Executive Officer - Brazil Nil Nil Nil Nil 40000
Richard He Chief Executive Officer - China Nil Nil Nil Nil 75000
* The figures for number of options granted under ESOP-2005 and ESOP-2006 have been adjusted for the impact of share split and have accordingly been
restated as per par value of Rs.2 per share.

3. During the year under review, the Company has granted total 300000 Options under Special ESOP-2009 (Tranche III, IV and V). The
list of employees who have received a grant in any one year exceeding 5% or more of the options granted during the year under
Special ESOP-2009 is given as under:

Name of the Designation Name of the Company / Subsidiary Number of Stock

Employee Options granted
during the year
Manjusha Raulkar Sr. GM – HR Corporate Services Suzlon Energy Limited, India 25000
Jens Henkner VP Program Management Suzlon Energy GmbH, Germany 35000
Stephan Mey* Chief Executive Officer Suzlon Wind Energy AS, Denmark 75000
Arthur Lavleri, Chief Executive Officer Suzlon Energia Eólica do Brasil Ltda., Brazil 40000
Soren Knudsen CEO - Composites Division Suzlon Wind Energy AS, Denmark 50000
Richard He Chief Executive Officer Suzlon Energy (Tianjin) Ltd. China 75000

*resigned

Suzlon Energy Limited, Annual Report 2010-11 65

Standalone Financial Statements
Auditors Report

To,

The Members of Suzlon Energy Limited

1. We have audited the attached Balance Sheet of Suzlon Energy Limited (‘the Company’) as at March 31, 2011 and also the Profit and
Loss account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on
our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for
the purposes of our audit;

ii. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
examination of those books;

iii. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books
of account;

iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

v. On the basis of the written representations received from the directors, as on March 31, 2011, and taken on record by the
Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being appointed as a
director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi. Without qualifying our opinion, we draw attention to Note 4(c), Schedule P in the financial statements regarding non-
provision of proportionate premium on redemption of ‘US$ 479.04 million (Rs. 2,136.27 Crores as at March 31, 2011)
Foreign Currency Convertible Bonds amounting to Rs. 579.21 Crores which has been considered by the Company as a
contingent liability. Since the ultimate outcome of the matter cannot be presently ascertained, no provision for the above
liability that may result in future has been made in the accompanying financial statements.

vii. We draw attention to Note 3, Schedule P in the financial statement. During the year ended March 31, 2011, the Company has
recognised deferred tax asset aggregating approximately Rs 55.64 crores on tax losses of Suzlon Energy Limited. In our
opinion, the recognition of deferred tax asset aggregating approximately Rs 55.64 crores does not satisfy the conditions of
virtual certainty prescribed under Accounting Standard – 22, Accounting for Taxes on Income as notified by the Companies
(Accounting Standards) Rules, 2006 (as amended). Had the above-mentioned deferred tax asset not been recognised, the
net loss for the year would have been higher and the deferred tax gain for the year in the profit and loss account would have
been lower by approximately Rs 55.64 crores. Accordingly, the deferred tax asset in the Balance Sheet has been overstated by
approximately Rs. 55.64 crores.

viii. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the
information required by the Companies Act, 1956, in the manner so required and subject para 5(vii) above, give a true and
fair view in conformity with the accounting principles generally accepted in India;

(a) in the case of the balance sheet, of the state of affairs of the Company as at March 31, 2011;
(b) in the case of the profit and loss account, of the loss for the year ended on that date; and
(c) in the case of cash flow statement, of the cash flows for the year ended on that date.

For SNK & Co. For S.R. BATLIBOI & Co.

Firm Registration number: 109176W Firm Registration number: 301003E
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi

Partner Partner
Membership No: 46238 Membership No: 89802
Place : Pune Place : Pune
Date : July 30, 2011 Date : July 30, 2011 :

66 Suzlon Energy Limited, Annual Report 2010-11

Annexure referred to in paragraph 3 of our report of even date

Re: Suzlon Energy Limited

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.

(b) Fixed assets have been physically verified by management during the year in accordance with a regular programme of
verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As
informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

2. (a) The management has conducted physical verification of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by management are reasonable and adequate in relation to
the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical
verification.

3. (a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(iii) (a) to (d)
of the CARO are not applicable.

(b) The Company has taken a loan from a Company covered in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year-end balance of the loan taken from such party was Rs.
145.32 crores.

(c) In our opinion and according to the information and explanations given to us, the rate of interest, and other terms and
conditions for such loan are prima facie not prejudicial to the interest of the Company.

(d) The loan taken by the company is a long term loan. According to the information and explanations given to us, no
repayment was due in respect of the principal portion till the balance sheet date. The payment of interest has been regular.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, we have not observed any major weakness or continuing failure to
correct any major weakness in the internal control system of the company in respect of these areas.

5. (a) According to the information and explanations provided by management, we are of the opinion that the particulars of
contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under
section 301 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such
contracts or arrangements exceeding value of Rupees five lakhs have been entered into during the financial year at prices
which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public. Accordingly, the provisions of clause 4(vi) of the CARO are not
applicable.

7. In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained in respect of generation of electricity from wind
power.

9. (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees’ state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues have
generally been regularly deposited with the appropriate authorities.

Further, since the Central Government has till date not prescribed the amount of cess payable under section 441 A of the
Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the company in depositing
the same.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund,
investor education and protection fund, employees' state insurance, income-tax, wealth-tax, service tax, sales-tax, customs
duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year end, for a period of more than six
months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of income tax, sales-tax, wealth tax, service tax,
customs duty, excise duty and cess which have not been deposited on account of any dispute.

10. The Company has no accumulated losses at the end of the financial year. It has incurred cash losses in the current and immediately
preceding financial year.

Suzlon Energy Limited, Annual Report 2010-11 67

11. Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. According to the information and explanations given to us and based on the documents and records produced to us, the Company
has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the CARO are not applicable.

13. In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the CARO are not applicable.

14. In our opinion, the Company does not deal or trade in shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the CARO are not applicable.

15. According to the information and explanations given to us, the Company has given guarantee for loans taken by others from banks
or financial institutions, the terms and conditions whereof in our opinion are prima-facie not prejudicial to the interests of the
Company.

16. In our opinion and according to the information and explanations given to us, on an overall basis, the term loans have been applied
for the purposes for which they were obtained.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we
report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(xviii) of the CARO are not applicable.

19. No debentures have been issued by the Company during the year. Further, the Company has unsecured Foreign Currency
Convertible Bonds outstanding during the year on which no security or charge is required to be created.

20. We have verified that the end use of money raised from Rights Issue of equity shares is as disclosed in the notes to the financial
statements.

21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as
per the information and explanations given by management, we report that no fraud on or by the Company has been noticed or
reported during the course of our audit.

For SNK & Co. For S.R. BATLIBOI & Co.

Firm Registration number: 109176W Firm Registration number: 301003E
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi

Partner Partner
Membership No: 46238 Membership No: 89802
Place : Pune Place : Pune
Date : July 30, 2011 Date : July 30, 2011

68 Suzlon Energy Limited, Annual Report 2010-11

 Balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars Schedule As at March 31,

2011 2010

SOURCES OF FUNDS

Shareholders' funds
Share capital A 355.47 311.35
Share application money pending allotment - 0.04
Employee stock options outstanding B 20.43 15.68
Reserves and surplus C 6,418.58 5,277.24
6,794.48 5,604.31

Loan funds
Secured loans D 4,395.74 3,891.16
Unsecured loans E 2,281.59 3,710.06
6,677.33 7,601.22
13,471.81 13,205.53
APPLICATION OF FUNDS
Fixed assets (including intangible assets) F
Gross block 1,439.52 1,355.74
Less: Depreciation/amortisation 576.35 438.58
Net block 863.17 917.16
Capital work-in-progress (including advances for capital goods) 38.15 10.38
901.32 927.54

Investments G 7,845.07 7,592.60

Deferred tax assets, net 55.64 -
Foreign currency monetary item translation difference account - 133.39
[See Schedule P, Note 10(d)]
Current assets, loans and advances H
Inventories 1,014.95 797.80
Sundry debtors 2,283.90 2,986.81
Cash and bank balances 431.06 599.22
Loans and advances 4,938.39 4,054.40
8,668.30 8,438.23

Less: Current liabilities and provisions I

Current liabilities 3,606.83 3,641.87
Provisions 391.69 244.36
3,998.52 3,886.23

Net current assets 4,669.78 4,552.00

13,471.81 13,205.53

Significant accounting policies and notes to accounts P

The Schedules referred to above and the notes to accounts form an integral part of the balance sheet.
As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited
For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tantii
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Executive Director
Chartered Accountants Chartered Accountants Director
per Jasmin B. Shah per Arvind Sethi Hemal Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802
Place: Pune Place: Pune Place: Pune
Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

Suzlon Energy Limited, Annual Report 2010-11 69

 Profit and loss account for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars Schedule Year ended March 31,

2011 2010

INCOME

Sales and service income [See Schedule P, Note 7 & Note 8] 4,357.55 3,488.68
Other income J 340.51 243.14
4,698.06 3,731.82

EXPENDITURE

Cost of goods sold K 2,746.75 2,517.49

Operating and other expenses L 1,173.50 974.82
Employees' remuneration and benefits M 215.23 181.01
Financial charges N 628.90 731.90
Depreciation / amortisation F 156.89 126.27
4,921.27 4,531.49

LOSS BEFORE TAX AND EXCEPTIONAL ITEMS (223.21) (799.67)

Less: Exceptional items O 37.28 439.02

LOSS BEFORE TAX (260.49) (1,238.69)

Tax
Earlier year tax (19.19) -
Deferred tax (55.64) 175.40

NET LOSS (185.66) (1,414.09)

Balance brought forward 386.00 1,800.09

Surplus carried to balance sheet 200.34 386.00

Earnings/(Loss) per share (in Rs.) [See Schedule P, Note 16]

Basic and Diluted [Nominal value of share Rs. 2/-] (1.09) (9.19)

Significant accounting policies and notes to accounts P

The Schedules referred to above and the notes to accounts form an integral part of the profit and loss account.

As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R.Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Executive Director
Chartered Accountants Chartered Accountants Director

per Jasmin B. Shah per Arvind Sethi Hemal Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802

Place: Pune Place: Pune Place: Pune

Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

70 Suzlon Energy Limited, Annual Report 2010-11

 Cash flow statement for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars Year ended March 31,

2011 2010

CASH FLOW FROM OPERATING ACTIVITIES

Profit/(loss) before tax and exceptional items (223.21) (799.67)

Adjustments for:
Depreciation / amortisation 156.89 126.27
(Profit) / loss on assets sold / discarded, net 2.93 1.41
(Profit) / loss on sale of investments, net 0.01 -
Interest income (292.74) (222.79)
Interest expenses 578.04 653.59
Dividend income (38.93) (0.11)
Provision for dimunition of investments 6.91 -
Provision for operation, maintenance and warranty 134.97 99.58
Provision for performance guarantee 118.91 119.25
Provision for liquidated damages 41.36 54.48
Bad debts written off 2.29 0.91
Provision for doubtful debts and advances 10.47 1.24
Employee stock option scheme 4.80 7.55
Exchange differences, net (4.11) 41.55
Wealth-tax (0.02) 0.02

Operating profit before working capital changes 498.57 83.28

Movements in working capital

(Increase) / decrease in sundry debtors 696.30 1,760.80
(Increase) / decrease in inventories (217.15) 585.82
(Increase) / decrease in loans and advances 65.19 55.53
(Increase) / decrease in margin money deposit (171.52) 11.55
Increase / (decrease) in current liabilities and provisions (177.56) (65.61)
Cash generated from operations 693.83 2,431.37
Direct taxes (paid) / refunded (net) 68.30 (7.75)

Net cash generated from operating activities 762.13 2,423.62

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (142.95) (219.96)
Proceeds from sale of fixed assets 9.36 1.68
Investments in subsidiaries (147.31) (990.24)
Sale / Redemption of Investments in subsidiaries 29.87 -
Redemption of investments in mutual funds 50.00 -
Repayment of inter corporate deposits 2.04 34.21
Loans granted to subsidiaries (2,126.64) (3,491.98)
Repayments of loans by subsidiaries 1,249.00 1,837.60
Interest received 286.18 220.76
Dividend received 38.93 11.40
Net cash used in investing activities (751.52) (2,596.53)

Suzlon Energy Limited, Annual Report 2010-11 71

 Cash flow statement for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars Year ended March 31,

2011 2010

CASH FLOW FROM FINANCING ACTIVITIES

Share application money received - 0.04
Share application money refunded - (95.00)
Proceeds from issuance of Global Depository Receipts - 522.97
Proceeds from issuance of share capital including premium, under stock option scheme - 0.12
Proceeds from rights issue 1.01 -
Convertible bond and share issue expenses (9.30) (16.38)
Proceeds from long term borrowings 993.56 2,781.42
Proceeds from issuance of zero coupon convertible bonds - 452.64
Payment towards buy-back of FCCB (shown under Exceptional Items) - (200.13)
Expenses incurred towards restructuring of FCCB (shown under Exceptional Items) (37.28) (104.88)
Repayment of long term borrowings (12.88) (99.36)
Proceeds from short term borrowings, net (708.00) (2,023.57)
Interest paid (578.02) (646.02)

Net cash (used in) / generated from financing activities (350.91) 571.85
Effect of Exchange Difference on Cash and Cash Equivalents 0.62 (0.57)
NET INCREASE IN CASH AND CASH EQUIVALENTS (339.68) 398.37
Cash and cash equivalents at the beginning of the year 469.32 70.95
Cash and cash equivalents at the end of the year 129.64 469.32

Particulars As at March 31,

2011 2010

Components of cash and cash equivalents

Cash and cheques on hand 35.87 10.04

- in current account* 93.25 458.80

- in Margin Accounts 301.42 129.90

Less: Margin Money Deposit (301.42) (129.90)

With non-scheduled banks in current account 0.52 0.48

129.64 469.32

*includes a balance of Rs. 0.19 crore (Rs. 0.19 crore) not available for use by the Company as they represent corresponding unpaid dividend
liabilities.
Notes
1 The figures in brackets represent outflows.
2 Previous periods' figures have been regrouped / reclassified, wherever necessary, to confirm to current year presentation.

As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Executive Director
Chartered Accountants Chartered Accountants Director

per Jasmin B. Shah per Arvind Sethi Hemal Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802
Place: Pune Place: Pune Place: Pune
Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

72 Suzlon Energy Limited, Annual Report 2010-11

 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars As at March 31,

2011 2010

SCHEDULE - A : SHARE CAPITAL

Authorised

3,500,000,000 (2,225,000,000) equity shares of Rs 2/- each 700.00 445.00

700.00 445.00

Issued
Equity

1,796,297,624 (1,556,731,743) equity shares of Rs 2/- each 359.26 311.35

Subscribed & paid-up

Equity
1,777,365,647 (1,556,731,743) equity shares of Rs. 2/- each fully paid-up 355.47 311.35
[Of the above equity shares, 1,259,276,500 (1,259,276,500) shares
of Rs 2/- each were allotted as fully paid bonus shares by utilisation
of Rs 174.04 crore (Rs 174.04 crore) from general reserve, Rs 1.03 crore
(Rs 1.03 crore) from capital redemption reserve and Rs 76.80 crore (Rs 76.80 crore)
from securities premium account]
[Of the above equity shares 58,400,000 (58,400,000) equity shares of
Rs.2 each were issued by way of Global Depository Receipts (GDR)]
[Of the above equity shares 31,992,582 (nil) equity shares of
Rs.2 each are alloted as fully paid up for consideration other than
cash (See Schedule P, Note 10(b))]
[Outstanding Employee stock options exercisable into 5,679,945
(635,250) equity shares of Rs. 2/- each fully paid (See Schedule P, Note 9)]
355.47 311.35

SCHEDULE - B : EMPLOYEE STOCK OPTIONS OUTSTANDING

Employee stock options outstanding 23.46 29.77

Less: Deferred employee compensation outstanding 3.03 14.09
20.43 15.68

SCHEDULE - C : RESERVES AND SURPLUS

Capital redemption reserve 15.00 15.00

Securities premium account

As per last balance sheet 3,979.09 3,465.17
Add: Additions during the year 1,336.30 530.29
5,315.39 3,995.46

Less: Expenses on issue of debentures 9.30 –

Expenses on issue of Global Depository Receipts – 11.07
Expenses on issue of Foreign Currency Convertible – 5.30

5,306.09 3,979.09

General reserve 897.15 897.15

Profit and loss account 200.34 386.00

6,418.58 5,277.24

Suzlon Energy Limited, Annual Report 2010-11 73

 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars As at March 31,

2011 2010

SCHEDULE - D : SECURED LOANS [See Schedule-P, Note-6]

Term loans
From banks 1,787.59 1,773.37
From others 1,432.64 609.41

3,220.23 2,382.78

Working capital facilities from banks and financial institutions

Rupee loans 881.51 1,261.63
Foreign currency loans 294.00 246.75

1,175.51 1,508.38

4,395.74 3,891.16

SCHEDULE - E : UNSECURED LOANS

Long-term
Foreign currency convertible bonds [See Schedule P, Note 4] 2,136.27 2,150.89
From other than banks 145.32 1,184.03

2,281.59 3,334.92

Short-term

From banks - 0.14

From other than banks - 375.00

- 375.14

2,281.59 3,710.06

74 Suzlon Energy Limited, Annual Report 2010-11

 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

SCHEDULE - F : FIXED ASSETS (INCLUDING INTANGIBLE ASSETS)

ASSETS Gross block Depreciation / amortisation Net block

As at Additions Deductions/ As at As at Additions Deductions / As at As at As at

April 1, 2010 adjustments March 31, 2011 April 1, 2010 adjustments March 31, 2011 March 31, 2011 March 31, 2010

Freehold land 101.94 - - 101.94 - - - - 101.94 101.94

Leasehold land 0.96 - - 0.96 0.11 0.01 - 0.12 0.84 0.85
Buildings 426.07 12.34 0.92 437.49 82.88 24.94 0.21 107.61 329.88 343.19

Suzlon Energy Limited, Annual Report 2010-11

Plant and machinery 362.78 29.64 25.45 366.97 205.06 44.91 14.86 235.11 131.86 157.72
Wind research & 16.78 0.04 2.68 14.14 14.41 1.07 2.48 13.00 1.14 2.37
measuring equipments
Computers and office equipments 131.36 15.95 1.79 145.52 49.40 20.05 1.27 68.18 77.34 81.96
Furniture & fixtures 132.17 15.14 0.42 146.89 22.38 23.41 0.20 45.59 101.30 109.79
Vehicles 6.81 0.68 0.13 7.36 4.89 0.67 0.10 5.46 1.90 1.92

75
Intangible assets
Designs and drawings 156.14 39.22 - 195.36 45.91 38.85 - 84.76 110.60 110.23
SAP and other software 20.73 2.16 - 22.89 13.54 2.98 - 16.52 6.37 7.19
TOTAL 1,355.74 115.17 31.39 1,439.52 438.58 156.89 19.12 576.35 863.17 917.16

Capital work-in-progress 38.15 10.38

TOTAL 1,355.74 115.17 31.39 1,439.52 438.58 156.89 19.12 576.35 901.32 927.54

Previous year 915.83 497.79 57.88 1,355.74 364.33 127.51 53.26 438.58 917.16

Notes:
1. Depreciation charge for the current year amounting to Rs. 156.89 crore (Rs. 127.51 crore), is including Rs. Nil (Rs. 1.24 crore) which has been capitalized as part of
self manufactured assets. The depreciation charged in the profit and loss account amounting to Rs. 156.89 crore (Rs. 126.27 crore) is net of the amount capitalised.
2. Capital work-in-progress includes advances for capital goods Rs. 1.12 crore (Rs. 4.99 crore).
3. Borrowing costs amounting to Rs. Nil (Rs. 11.21 crore) have been capitalised to qualifying assets.
 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars As at March 31,

2011 2010

SCHEDULE - G : INVESTMENTS

LONG-TERM INVESTMENTS (At cost, fully paid)

OTHER THAN TRADE - UNQUOTED
(i) Government and other securities
Investment in NSC and post office deposit placed with government authorities 0.01 0.01
0.01 0.01
(ii) Other investments
(a) Subsidiaries
Domestic
40,000,000 (40,000,000) equity shares of Rs. 10 each of 77.80 77.80
Suzlon Towers and Structures Limited
23,000,000 (23,000,000) equity shares of Rs. 10 each of 118.26 118.26
Suzlon Infrastructure Services Limited
14,524,600 (14,524,600) equity shares 17.80 17.80
of Rs. 10 each of Suzlon Structures Limited
26,226,800 (26,226,800) equity shares of Rs. 10 each of 26.23 26.23
Suzlon Generators Limited
900,000 (900,000) 10% cumulative redeemable 9.00 9.00
preference shares of Rs. 100 each of
Suzlon Infrastructure Services Limited
750,000 (750,000) 8% cumulative 7.50 7.50
redeemable preference shares of
Rs. 100 each of Suzlon Structures Limited
241,254,125 (200,000,000) equity shares of 391.96 200.00
Rs. 10 each of SE Forge Limited
Nil (500,000) 13% cumulative - 5.01
redeemable preference shares of
Rs. 100 each of Suzlon Towers and Structures Limited
2,000,000 (2,000,000) equity shares of 2.00 2.00
Rs. 10 each of Suzlon Gujarat Wind Park Limited**
3,010,000 (3,010,000) equity shares of Rs. 10 each of 3.01 3.01
Suzlon Power Infrastructure Limited**
10,000,000 (10,000,000) equity shares of 10.00 10.00
Rs. 10 each of SE Electricals Limited
10,000,000 (10,000,000) equity shares of 10.00 10.00
10 each of Suzlon Wind International Limited
15,000,000 (15,000,000) equity shares 15.00 15.00
of 10 each of SE Composites Limited
1,500,000 (1,500,000) equity shares of 1.50 1.50
Rs. 10 each of Suzlon Engitech Limited
5,000,000 (5,000,000) 1% cumulative 50.00 50.00
redeemable preference shares of Rs. 100 each of
Suzlon Infrastructure Services Limited
19,329,550 (19,329,550) 9% cumulative redeemable 193.30 193.30
preference shares of Rs. 100 each of
Suzlon Wind International Limited
8,590,000 (8,590,000) 9% cumulative redeemable preference 85.90 85.90
shares of Rs 100 each of SE Electricals Limited

76 Suzlon Energy Limited, Annual Report 2010-11

 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars As at March 31,

2011 2010

22,398,000 (22,398,000) 9% cumulative redeemable preference 223.98 223.98

shares of Rs 100 each of SE Composites Limited
3,500,000 (6,000,000) 7% optionally convertible redeemable cumulative 35.00 60.00
preference shares of Rs 100 each of Suzlon Infrastructure Services Limited
Total - domestic subsidiaries 1,278.24 1,116.29
Overseas
244,000 (244,000) equity shares of Euro 10 each fully paid up of AE Rotor Holding B.V., 13.15 13.15
The Netherlands
1,422,337 (1,422,337) equity shares of DKK 100 each fully paid up of Suzlon Energy A/S**, 503.72 503.72
Denmark (DKK 437,604,350 (DKK 437,604,350) invested as additional paid in capital)
1,000 (1,000) equity shares of USD 1 each fully paid up of Suzlon Rotor Corporation, USA** 116.47 116.47
(USD 27,999,000 (USD 27,999,000) invested as additional paid in capital)
Suzlon Energy (Tianjin) Limited, China 233.30 233.30
4,284,695,253 (4,193,813,790) equity shares of MUR 10 each of Suzlon Energy Limited, Mauritius 6,275.24 6,130.25
Suzlon Wind Energy Equipment Trading (Shanghai) Co. Limited, China** 6.91 4.60
Total - overseas subsidiaries 7,148.79 7,001.49
Total - subsidiaries*** 8,427.03 8,117.78
*** Refer Schedule P, Note 6 for pledge of investments in certain
subsidiaries for loans availed.
Less: **Provision for dimunition in value of long term investments 632.11 625.20
Total - subsidiaries (net) 7,794.92 7,492.58
(b) Other than subsidiaries
2,550 (2,550) equity shares of Rs 10 each of Saraswat Co-operative Bank Limited* 0.00 0.00
30 (30) equity shares of Rs 10 of Godrej Millenium Condominium * 0.00 0.00
0.00 0.00
Aggregate book value of unquoted investments 7,794.93 7,492.59
CURRENT INVESTMENTS (At lower of Cost and Market Value)
OTHER THAN TRADE - QUOTED
(i) Investment in Mutual Funds
SBI Magnum Insta cash fund - Daily Dividend Fund 25.14 100.01
(15,007,514 units of Rs. 16.75 each (99,686,882 units of Rs. 10.03 each))
SBI Ultra short term fund 25.00 -
(24,985,009 units of Rs. 10.006 each (Nil))
Aggregate book value of quoted investments 50.14 100.01
(Market value Rs 50.14 crore (Rs 100.01 crore))
Aggregate amount of investments 7,845.07 7,592.60
*amount below Rs 0.01 crore
The following investments were purchased and sold during the year
45,850,000 (Nil) units of Rs. 10 each of IDBI Liquid fund - Daily Dividend-Reinvestment 45.85 -
390,000 (Nil) units of Rs. 1000 each of IDBI Liquid fund - Daily Dividend-Reinvestment 39.00 -
61,000,000 (Nil) units of Rs. 10 each of IDBI Ultra Short Term fund - Daily Dividend-Reinvestment 61.00 -
172,120,201 (Nil) units of Rs. 16.75 each of SBI Magnum Insta Cash Fund - Daily Dividend Option 288.31 -
24,985,009 (Nil) units of Rs. 10.01 each of SBI- SHF - Ultra Short Term Fund - Daily Dividend 25.00 -
20,757,553 (50,051,789) units of Rs. 10 each of LIC MF Floating Rate Fund 20.76 50.05
18,897,824 (Nil) units of Rs.10.98 each of LIC NOMURA MF Liquid Fund - Dividend Plan 20.75 -
10,750,000 (Nil) units of Rs. 10 each of LIC NOMURA MF Income Plus Fund - Daily Dividend Plan 10.75 -

Suzlon Energy Limited, Annual Report 2010-11 77

 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars As at March 31,

2011 2010

SCHEDULE - H : CURRENT ASSETS, LOANS AND ADVANCES

Current assets
Inventories
Raw materials (including goods-in-transit Rs 137.32 crore (Rs 92.15 crore)) 543.65 547.87
Semi finished goods and work-in-progress 424.89 203.30
Land and land lease rights 24.85 22.75
Stores and spares 21.56 23.88
1,014.95 797.80
Sundry debtors

(Unsecured)
Outstanding for a period exceeding six months
considered good 1,335.85 1,633.14
considered doubtful 22.75 18.43
1,358.60 1,651.57

Others, considered good 948.05 1,353.67

2,306.65 3,005.24
Less: Provision for doubtful debts 22.75 18.43
2,283.90 2,986.81

Cash and bank balances

Cash on hand 0.17 0.20
Cheques on hand 35.70 9.84
Balances with Scheduled banks
in current accounts 93.25 458.80
in margin accounts 301.42 129.90
394.67 588.70

Balances with non Scheduled banks in current accounts

Bank of China RMB account - Beijing 0.08 0.06
(Maximum balance during the year Rs. 0.09 crore (Rs. 0.49 crore))
Bank of China USD account - Beijing 0.02 0.02
(Maximum balance during the year Rs. 0.02 crore (Rs. 0.12 crore))
Bank of China RMB account - Shanghai 0.10 0.09
(Maximum balance during the year Rs. 0.10 crore (Rs. 0.11 crore))
Bank of China USD account - Shanghai 0.02 0.02
(Maximum balance during the year Rs. 0.02 crore (Rs. 0.02 crore))
Millenium Bank - Portugal 0.30 0.29
(Maximum balance during the year Rs. 0.32 crore (Rs. 40.67 crore))
431.06 599.22
Loans and advances
(Unsecured and considered good, except otherwise stated)
Loans to subsidiaries
in indian rupees 1,266.39 993.64
in foreign currency 2,840.85 2,113.67
4,107.24 3,107.31
Deposits
with customers as security deposit 13.56 13.56
with others 89.96 73.29
103.52 86.85

78 Suzlon Energy Limited, Annual Report 2010-11

 Schedules to the balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars As at March 31,

2011 2010

Advance against taxes 11.30 83.30

[Net of provision for income tax Rs. 4.69 crore (Rs. 181.83 crore)]

MAT credit entitlement 161.88 139.00

Inter corporate deposits - 2.04

Advances recoverable in cash or in kind or for value
to be received
Considered good 554.45 635.90
Considered doubtful 17.75 11.17
572.20 647.07
Less: Provision for doubtful loans and advances 17.75 11.17
554.45 635.90
4,938.39 4,054.40
8,668.30 8,438.23

SCHEDULE - I : CURRENT LIABILITIES AND PROVISIONS

Current liabilities

Sundry creditors
Others 831.55 762.16
Micro and small enterprises [See Schedule P, Note 22] 6.70 35.80
Acceptance [See Schedule P, Note 10(e)] 448.75 454.58
Subsidiaries 1,963.14 2,102.94
Unclaimed Dividend 0.19 0.19
Other current liabilities 159.29 197.46
Interest accrued but not due 17.79 23.17
Advances from customers 179.42 65.57

3,606.83 3,641.87

Provisions
Wealth tax - 0.03
Gratuity, superannuation and leave encashment 28.96 24.46
Performance guarantee, operation, maintenance and 362.73 219.87
warranty, liquidated damages
391.69 244.36

3,998.52 3,886.23

Suzlon Energy Limited, Annual Report 2010-11 79

 Schedules to the profit and loss account for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars Year ended March 31,

2011 2010

SCHEDULE - J : OTHER INCOME

Interest income
From banks [TDS Rs. 1.77 crore (Rs. 0.98 crore)] 17.41 11.01
From others [TDS Rs. 4.01 crore (Rs. 2.45 crore)] 275.33 211.77

Dividend income
From long term investments in subsidiaries 36.02 0.05
From other investments 2.91 0.06

Royalty income - 15.66

Miscellaneous income 8.84 4.59

340.51 243.14

SCHEDULE - K : COST OF GOODS SOLD

Consumption of raw materials (including project business)

Opening stock 547.87 871.05
Add: Purchases 2,943.22 1,895.19
3,491.09 2,766.24
Less: Closing stock 543.65 547.87
(A) 2,947.44 2,218.37

Trading purchases (B) 23.00 44.15

(Increase) / decrease in stocks

Opening balance:
Semi finished goods and work-in-progress 203.30 459.14
Land and land lease rights 22.75 21.88

(C) 226.05 481.02

Closing balance:
Semi finished goods and work-in-progress 424.89 203.30
Land and land lease rights 24.85 22.75
(D) 449.74 226.05

(Increase) / decrease in stock (E) = (C) - (D) (223.69) 254.97

(A) + (B) + (E) 2,746.75 2,517.49

SCHEDULE - L : OPERATING AND OTHER EXPENSES

Stores and spares consumed 30.44 21.64

Power and fuel 5.05 3.93
Factory expenses 15.09 19.58
Repairs and maintenance:
Plant and machinery 1.57 1.15
Building 2.69 1.63
Others 6.08 4.41
Operation and maintenance charges 225.50 123.37
Design change and technological upgradation charges 66.83 91.13
Operating lease charges [See Schedule P, Note 12(b)] 2.50 2.45
Rent [See Schedule P, Note 12(a)] 9.92 19.89

80 Suzlon Energy Limited, Annual Report 2010-11

 Schedules to the profit and loss account for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated

Particulars Year ended March 31,

2011 2010

Rates and taxes 0.68 15.50

Provision for operation, maintenance and warranty 134.97 99.58
Provision for performance guarantee 118.91 119.25
Provision for liquidated damages 41.36 54.48
Quality assurance expenses 85.77 59.93
R & D, certification and product development 25.41 21.58
Insurance 4.45 5.61
Advertisement and sales promotion 16.08 33.29
Infrastructure development expenses 24.56 25.76
Freight outward and packing expenses 110.55 106.47
Sales commission 5.09 1.16
Travelling, conveyance and vehicle expenses 27.38 29.81
Communication expenses 10.00 10.25
Auditors' remuneration and expenses [See Schedule P, Note 23 (a)] 2.37 2.41
Consultancy charges 95.01 78.89
Charity and donations - 3.26
Corporate social welfare expense 0.35 2.86
Other selling and administrative expenses 47.91 42.35
Exchange differences, net 34.37 (30.36)
Bad debts written off 2.29 0.91
Provision for doubtful debts and advances 10.47 1.24
Loss on sale of investments, net 0.01 -
Provision for dimunition of investments 6.91 -
(Profit) / loss on assets sold / discarded, net 2.93 1.41
1,173.50 974.82

SCHEDULE - M : EMPLOYEES' REMUNERATION AND BENEFITS

Salaries, wages, allowances and bonus 195.70 165.64

Contribution to provident fund 7.19 6.01
Contribution to other funds [See Schedule P, Note 13] 4.39 1.72
Staff welfare expenses 7.95 7.64
215.23 181.01

SCHEDULE - N : FINANCIAL CHARGES

Interest
Fixed loans 404.73 67.57
Debentures - 31.96
Others 173.31 554.06
Bank charges 50.86 78.31
628.90 731.90
SCHEDULE - O : EXCEPTIONAL ITEMS [See Schedule P, Note 2]

Foreign exchange loss on the convertible bonds - 162.34

(Gain)/loss on restructuring and refinancing of financial facilities (net) 37.28 (248.76)
Provision towards dimunition in investments - 525.44
37.28 439.02

Suzlon Energy Limited, Annual Report 2010-11 81

SCHEDULE P: SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
(All amounts in Rupees crore unless otherwise stated)

Nature of operations

Suzlon Energy Limited ('SEL' or 'Suzlon' or the 'Company') is engaged in the manufacture of wind turbine generators ('WTGs') of various
capacities and its components.

1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting except in case of
assets for which provision for impairment is made and revaluation is carried out to comply in all material respects, with the
mandatory accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended ('the Rules')
and the relevant provisions of the Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied
by the Company; and the accounting policies not referred to otherwise, are in conformity with Indian Generally Accepted
Accounting Principles ('Indian GAAP').

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and
assumptions that may affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities
as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period.
Although these estimates are based upon management’s best knowledge of current events and actions, actual results could
differ from these estimates.

(c) Revenue recognition

Revenue comprises sale of WTGs and wind power systems; service income; interest; dividend and royalty. Revenue is
recognised to the extent it is probable that the economic benefits will flow to the Company and that the revenue can be
reliably measured. Revenue is disclosed, net of discounts, excise duty, sales tax, service tax, VAT or other taxes, as applicable.

Sales

Sale of individual WTGs and wind power systems ("supply only projects") are recognised in the profit and loss account
provided that the significant risks and rewards in respect of ownership of goods have been transferred to the buyer as per
the terms of the respective sales order, and provided that the income can be measured reliably and is expected to be
received.

Fixed price contracts to deliver wind power systems (turnkey contracts and projects involving installation and/or
commissioning apart from supply) are recognised in revenue based on the stage of completion of the individual contract
using the percentage of completion method, provided the order outcome as well as expected total costs can be reliably
estimated. Where the profit from a contract cannot be estimated reliably, revenue is only recognised equalling the expenses
incurred to the extent that it is probable that the expenses will be recovered.

Due from customers, if any are measured the selling price of the work performed, based on the stage of completion less the
cost of the work already billed to the customer and expected losses. The stage of completion is measured by the proportion
that the contract expenses incurred to date bear to the estimated total contract expenses. The value of self-constructed
components is recognised in 'Contracts in progress' upon dispatch of the complete set of components which are specifically
identified for a customer and are within the scope of supply, as per the terms of the respective sale order for the wind power
systems. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is
recognised immediately as an expense in the profit and loss account.

Where the selling price of a contract cannot be estimated reliably, the selling price is measured based on the expenses
incurred to the extent that it is probable that these expenses will be recovered. Prepayments from customers are recognised
as liabilities. A contract in progress for which the selling price of the work performed exceeds interim billings and expected
losses is recognised as an asset. Contracts in progress for which interim billings and expected losses exceed the selling price
is recognised as a liability. Expenses relating to sales work and the winning of contracts are recognised in the profit and loss
account as incurred.

Operation and Maintenance

Revenues from operation and maintenance contracts are recognised pro-rata over the period of the contract as and when
services are rendered, net of taxes charged.

Project execution income

Revenue from services relating to project execution is recognised on completion of respective service, as per terms of
respective sales order.

Interest income

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate
applicable. In case of interest charged to customers, interest is accounted for on availability of documentary evidence that
the customer has accepted the liability.

82 Suzlon Energy Limited, Annual Report 2010-11

 Dividend income

Dividend income from investments is recognised when the right to receive payment is established. Dividend from subsidiary
companies declared after the year end till the adoption of accounts by Board of Directors, is accounted during the year as
required by Schedule VI to the Act.

Royalty income

Royalty income is recognised on accrual basis in accordance with the terms of the relevant agreements.

(d) Fixed assets and intangible assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost includes purchase price
and all expenditure necessary to bring the asset to its working condition for its intended use. Own manufactured assets are
capitalised inclusive of all direct costs and attributable overheads. Capital work-in-progress comprises of advances paid to
acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. In
the case of new undertaking, preoperative expenses are capitalised upon the commencement of commercial production.
Assets held for disposal are stated at the lower of net book value and the estimated net realisable value.

In respect of accounting periods commencing on or after December 7, 2006, exchange differences arising on reporting of
the long-term foreign currency monetary items at rates different from those that at which they were initially recorded
during the period, or reported in the previous financial statements are added to or deducted from the cost of the asset and
are depreciated over the balance life of the asset, if these monetary items pertain to the acquisition of a depreciable fixed
asset.

Intangible assets are recorded at the consideration paid for their acquisition. Cost of an internally generated asset
comprises all expenditure that can be directly attributed, or allocated on a reasonable and consistent basis, to create,
produce and make the asset ready for its intended use.

The carrying amounts of the assets belonging to each cash generating unit ('CGU') are reviewed at each balance sheet date
to assess whether they are recorded in excess of their recoverable amounts and where carrying amounts exceed the
recoverable amount of the asset’s CGU, assets are written down to their recoverable amount. Recoverable amount is the
greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying amount of the asset
over its remaining useful life. The impairment loss recognised in prior accounting periods is reversed if there has been a
change in estimates of recoverable amount. The carrying value after reversal is not increased beyond the carrying value that
would have prevailed by charging usual depreciation if there was no impairment.

(e) Depreciation and amortisation

Depreciation is provided on the written down value method (‘WDV’) unless otherwise stated, pro-rata to the period of use
of assets and is based on management’s estimate of useful lives of the fixed assets or intangible assets or at rates specified in
schedule XIV to the Act, whichever is higher:

The following are the rate of depreciation / amortisation applied:

Depreciation

Type of asset Rate (%)

Office building 5.00

Factory building 10.00
Moulds 13.91 or useful life based on usage
Plant and machinery
- Single Shift 13.91
-Double Shift 20.87
- Triple Shift 27.82
Patterns 30.00 or useful life based on usage
Plugs for moulds 50.00 or useful life based on usage
Wind research and measuring Equipment 50.00
Computers 40.00
Office equipment 13.91
Furniture and fixtures 18.10
Motor car and others 25.89
Trailers 30.00

Suzlon Energy Limited, Annual Report 2010-11 83

 Amortisation

Type of asset Basis

Leasehold land Period of lease

Design and drawings Straight line basis over a period of five years
SAP and other software Straight line basis over a period of five years

(f) Inventories

Inventories of raw materials including stores, spares and consumables; packing materials; work-in-progress; project work
in progress; semi-finished goods and finished goods are valued at the lower of cost and estimated net realisable value. Cost
is determined on weighted average basis.

The cost of work-in-progress, semi-finished goods and finished goods includes the cost of material, labour and
manufacturing overheads.

Stock of land and land lease rights is valued at lower of cost and estimated net realisable value. Cost is determined on
weighted average basis. Net realisable value is determined by management using technical estimates.

(g) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long term investments. Current investments are carried at lower of cost
and fair value, determined on an individual basis. Long-term investments are carried at cost. However, provision is made to
recognise a decline, other than temporary, in the value of long-term investments.

(h) Foreign currency transactions

Transactions in foreign currencies are recorded at the average exchange rate prevailing in the period during which the
transactions occur.

Outstanding balances of foreign currency monetary items are reported using the period end rates. Pursuant to the
notification of the Companies (Accounting Standards) Amendment Rules 2009 issued by Ministry of Corporate Affairs on
March 31, 2009 amending Accounting Standard – 11 (AS - 11) ‘The Effects of Changes in Foreign Exchange Rates (revised
2003), exchange differences in respect of accounting periods commencing on or after December 7, 2006, relating to long
term monetary items are dealt with in the following manner:

(a) Exchange differences relating to long term foreign currency monetary items, arising during the year, in so far as they
relate to the acquisition of a depreciable capital asset are added to/deducted from the cost of the asset and
depreciated/recovered over the balance life of the asset.

(b) In other cases, such differences are accumulated in the "Foreign Currency Monetary Item Translation Difference
Account" and amortised to the profit and loss account over the balance life of the long term monetary item but not
beyond March 31, 2011.

All other exchange differences are recognised as income or expense in the profit and loss account.

Non-monetary items carried in terms of historical cost denominated in a foreign currency are reported using the exchange
rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation
denominated in a foreign currency are reported using the exchange rate that existed, when the values were determined.

Exchange differences arising as a result of the above are recognised as income or expense in the profit and loss account.

Foreign currency transactions entered into by branches, which are integral foreign operations are accounted in the same
manner as foreign currency transactions described above. Branch monetary assets and liabilities are restated at the year
end rates.

Derivatives

In case of forward contracts, the difference between the forward rate and the exchange rate, being the premium or
discount, at the inception of a forward exchange contract is recognised as income/expense over the life of the contract.
Exchange differences on such contracts are recognised in the profit and loss account in the reporting period in which the
rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as
expense for the period.

As per the Institute of Chartered Accountants of India (‘ICAI’) announcement, derivative contracts, other than those
covered under AS-11, are marked to market on a portfolio basis and the net loss after considering the offsetting effect on the
underlying hedge items is charged to the profit and loss account. Net gains on marked to market basis are not recognised.

(i) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get
ready for intended use. Costs incurred in raising funds are amortised equally over the period for which the funds are
acquired. All other borrowing costs are charged to profit and loss account.

84 Suzlon Energy Limited, Annual Report 2010-11

 (j) Retirement and other employee benefits

Defined contributions to provident fund and employee state insurance are charged to the profit and loss account of the year
when the contributions to the respective funds are due. There are no other obligations other than the contribution payable
to the respective statutory authorities.

Defined contributions to superannuation fund are charged to the profit and loss account on accrual basis.

Retirement benefits in the form of gratuity are considered as defined benefit obligations, and are provided for on the basis
of an actuarial valuation, using projected unit credit method, as at each balance sheet date.

Short-term compensated absences are provided based on estimates. Long term compensated absences and other long
term employee benefits are provided for on the basis of an actuarial valuation, using projected unit credit method, as at
each balance sheet date.

Actuarial gains/losses are taken to profit and loss account and are not deferred.

(k) Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions
are not discounted to their present value and are determined based on best estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed by way of notes to accounts unless the possibility of an outflow is remote. Contingent
assets are not recognised or disclosed.

(l) Taxes on Income

Tax expense for a year comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid
to the tax authorities, after taking into consideration, the applicable deductions and exemptions admissible under the
provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there
is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be
realised. If there is unabsorbed depreciation or carry forward of losses under tax laws, all deferred tax assets are recognised
only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will
be available against which such deferred tax assets can be realised.

Deferred tax resulting from timing differences which originate during the tax holiday period but are expected to reverse
after such tax holiday period is recognised in the year in which the timing differences originate using the tax rates and laws
enacted or substantively enacted at the balance sheet date.

At each balance sheet date, the company reassesses unrecognised deferred tax assets. It recognises unrealised deferred tax
assets to the extent it has become reasonably certain or virtually certain, as the case may be, that sufficient taxable income
will be available against which the deferred tax can be realised. Further the carrying amounts of deferred tax assets are
reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent
that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be
available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available

Minimum alternative tax ('MAT') credit is recognised as an asset only when and to the extent there is convincing evidence
that the Company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be
set off under the Income Tax Act, 1961 (specified period). In the year, in which the MAT credit becomes eligible to be
recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of
Chartered Accountants of India (ICAI), the said asset is created by way of a credit to the profit and loss account and shown as
MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of
MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay income
tax higher than MAT during the specified period.

(m) Operating leases

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating lease. Lease rentals are charged off to the profit and loss account as incurred.

(n) Earnings/(loss) per share

Basic earnings/(loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity
shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of equity shares outstanding during the period are
adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial
statements are approved by the board of directors.

Suzlon Energy Limited, Annual Report 2010-11 85

 For the purpose of calculating diluted earnings/(loss) per share, the net profit/(loss) for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive
potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential
equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

(o) Employee stock options

Stock options granted to employees under the employees’ stock option scheme are accounted as per the intrinsic value
method permitted by the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999
and the 'Guidance Note on Share Based Payments' issued by the ICAI. Accordingly, the excess of market price of the shares as
on the date of grant of options over the exercise price is recognised as deferred employee compensation and is charged to
profit and loss account on straight-line basis over the vesting period.

The number of options expected to vest is based on the best available estimate and are revised, if necessary, if subsequent
information indicates that the number of stock options expected to vest differs from previous estimates.

(p) Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand, cheques on hand and short-term
investments with an original maturity of three months or less.

2. Exceptional Items

The details of exceptional items aggregating to Rs 37.28 crore (Rs 439.02 crore) are as below:

(a) Loss on account of amortization of foreign exchange losses on all convertible bonds aggregating Rs Nil (Rs 162.34 crore) which
includes Rs Nil (Rs 120.06 crore) being losses on Phase I bonds and Phase II bonds cancelled due to buy back and exchange.

(b) (Gain)/loss on restructuring and refinancing of financial facilities aggregating Rs 37.28 crore (gain of Rs 248.76 crore)
pertaining primarily to net gains arising from the buy-back and exchange of Phase I and Phase II bonds after offsetting
various costs incurred in connection with the buy-back and exchange including consent fees, expenses of merchant bankers,
etc.

(c) Diminution, other than temporary, of the value of investments in certain subsidiaries aggregating Rs Nil crore (Rs 525.44
crore).

3. During the year the Company has recognised deferred tax asset of Rs 55.64 crore on its brought forward losses of Suzlon Energy
Limited. The Company believes that the recognition of deferred tax asset satisfies the conditions of virtual certainty prescribed
under Accounting Standard – 22, Accounting for Taxes on Income as notified by the Companies (Accounting Standards) Rules, 2006
(as amended).

4. Foreign Currency Convertible Bonds

(a) Initial terms of issue

On June 11, 2007 the Company made an issue of zero coupon convertible bonds aggregating USD 300 million (Rs 1,223.70
crore) [Phase I bonds]. Further, on October 10, 2007, the Company made an additional issue of zero coupon convertible
bonds aggregating USD 200 million (Rs 786.20 crore) [Phase II bonds] and on July 24, 2009, the company made an additional
issue of zero coupon convertible bonds aggregating USD 93.87 million (Rs 452.64 crore) at an issue price of 104.30% of the
principal amount of USD 90.00 million.

The key terms of these bonds at the time of issue were as follows:

Particulars Phase I Phase II Phase III

Issue size (USD) 300 million 200 million 90 million

Face value per bond (in USD) 1,000 1,000 1,000
No. of equity shares per bond 113.50 107.30 533.2762
Initial conversion price per share (Rs) 359.68 371.55 90.38
Fixed exchange rate (Rs/USD) 40.83 39.87 48.1975
Redemption amount as a % of principal amount (%) 145.23 144.88 134.198
Maturity date June 12, 2012 October 11, 2012 July 18, 2014

(b) Restructuring of Phase I and Phase II bonds

i. During the year 2009-10 , the Company restructured Phase I and Phase II Zero Coupon Convertible Bonds with an
approval of the Reserve Bank of India ('RBI') wherein the bondholders were offered the following options as part of
the restructuring;

• Buyback of bonds @ 54.55% of the face value of US $ 1000 per bond.

86 Suzlon Energy Limited, Annual Report 2010-11

 • Issue of new bonds (‘Phase I New Bonds’ in case of Phase I Bonds and ‘Phase II New Bonds’ in case of Phase II
Bonds) in place of old bonds at a fixed ratio of 3:5 (60 cents to dollar) bearing a coupon of 7.5 per cent per
annum, payable semi-annually. Unless previously redeemed, converted or purchased and cancelled, the
Company will redeem each Phase I New Bond at 150.24 per cent of its principal amount and each Phase II New
Bond at 157.72 per cent of its principal amount on the relevant Maturity Date. The conversion price is set at Rs
76.68 per share. These bonds do not have any financial covenants and are of the same maturity as the old
bonds.

• Consent fee of USD15 Million to be paid across both the series, for those bondholders who consent to the
relaxation of covenants.

As a result of the restructuring, the outstanding position of the foreign currency convertible bonds is as follows:

Particulars Phase I Bonds Phase II Bonds Total

(Amount in USD) (Amount in USD) (Amount in USD)

Old bonds exchanged [A] 59,332,000 34,672,000 94,004,000

New Bonds issued in the ratio of 3:5 [B] 35,592,000* 20,796,000 56,388,000*
Bonds bought back for cash [C] 29,366,000 43,960,000 73,326,000
Cash paid for buyback [D] 16,019,702 23,980,180 39,999,882
Old bonds outstanding [E] 211,302,000 121,368,000 332,670,000
Value of total bonds outstanding [F]=[B]+[E] 246,894,000 142,164,000 389,058,000
Value of old bonds [G]=[A]+[C]+[E] 300,000,000 200,000,000 500,000,000
Consent fee paid 11,846,947 1,869,863 13,716,810
Maturity date June 12, 2012 October 11, 2012
Redemption amount as a % of principal 150.24 157.72
amount of New Bonds (%)
Redemption amount as a % of principal amount 145.23 144.88
of Old Bonds carried forward (%)

* 19,000 bonds were converted into equity shares during the year 2009-10

ii. On April 29, 2010, the Company convened meetings of Bondholders of each of the series, who approved the
respective resolutions proposed to them. Accordingly post receipt of regulatory approvals, the Company changed
the conversion price of the Phase I bonds from Rs.359.68 per equity share to Rs.97.26 per equity share and for Phase
II bonds from Rs.371.55 to Rs.97.26 per equity share, subject to adjustments in accordance with terms and
conditions of the bonds. The floor price for Phase I and Phase II bonds has been revised to Rs.74.025 per equity share.
The fixed exchange rate was changed to 1USD=Rs 44.60 from 1USD=Rs 40.83 for Phase I bonds and 1USD=Rs 39.87
for Phase II bonds. The Company has incurred Rs.37.28 crore towards consent fee to bondholders and other cost and
disclosed under exceptional items for the year ended March 31, 2011.

(c) Redemption Premium:

The Phase I, Phase II, Phase I New, Phase II New, and Phase III bonds are redeemable subject to satisfaction of certain
conditions mentioned in the offering circular and hence have been designated as monetary liability.

The Company has not provided for the proportionate premium on these bonds aggregating Rs 579.21 crore (Rs 377.22
crore) as shown below:

Phase March 31, 2011 March 31, 2010

Phase I 309.57 221.09

Phase II 159.12 109.98
Phase I (new) 43.22 18.53
Phase II (new) 25.40 10.98
Phase III 41.90 16.64
Total 579.21 377.22

In the opinion of the management, the likelihood of redemption of these bonds cannot presently be ascertained.
Accordingly no provision for any liability has been made in the financial statements and hence the proportionate premium
has been shown as a contingent liability. The Company has adequate securities premium to absorb the proportionate
premium on redemption as at March 31,2011.

5. The Company is in the process of seeking the required statutory and regulatory approvals, for implementing a Scheme of
Arrangement and Restructuring (SOA). The following are the salient features of the SOA:

I. De-merger and consequent transfer of (a) Power Generation Division of Suzlon Towers And Structures Limited (‘STSL’) a
wholly owned subsidiary (WOS) of the Company to Suzlon Engitech Limited another wholly owned subsidiary (WOS) of the
Company and (b) Project Execution Division of Suzlon Infrastructure Services Limited (‘SISL’) a wholly owned subsidiary
(WOS) of the Company to Suzlon Gujarat Wind Park Limited another wholly owned subsidiary (WOS) of the Company.

Suzlon Energy Limited, Annual Report 2010-11 87

 II. Amalgamation of STSL and SISL with the Company after giving effect to the above-mentioned de-merger and consequent
transfer of their respective division.

The ‘Appointed Date’ fixed for this purpose is April 1, 2010. This SOA is subject to sanctions u/s 391 and 394 of the Companies Act,
1956 by the respective Honourable High Courts. Since the SOA is yet to be implemented, the financial statement does not contain
any effect on account of this SOA

6. Suzlon Energy Limited ('SEL' or 'the Company') along with its 10 Indian subsidiaries, collectively referred as “Suzlon Entities”
executed a debt consolidation and refinancing arrangement (the ‘Arrangement’) on February 5, 2010 with a consortium
comprising of various banks and financial institutions (‘Consortium’) lead by the State Bank of India as the Facility Agent and SBI Cap
Trustee Company Limited as the Security Trustee.

The entities covered includes Suzlon Energy Limited (‘SEL’), Suzlon Towers and Structures Limited (‘STSL’), Suzlon Infrastructure
Services Limited (‘SISL’), Suzlon Structures Limited (‘SSL’), Suzlon Power Infrastructure Limited (‘SPIL’), Suzlon Generators Limited
(‘SGL’), Suzlon Gujarat Wind Park Limited (‘SGWPL’), SE Electricals Limited (‘SEEL’), Suzlon Wind International Limited (‘SWIL’), SE
Composites Limited (‘SECL’), Suzlon Engitech Limited (‘SENL’) (hereinafter collectively referred to as the ‘Suzlon Entities’ or
individually as the ‘Borrower’).

The details of security for the secured loans are as follows:

(i) Term loans from banks and financial institutions of Rs 3,214.59 crore (Rs. 2,373.37 crore) and working capital facilities from
banks and financial institutions of Rs 1,175.51 crore (Rs. 1,508.38 crore) availed under debt consolidation and refinancing
arrangement are secured by first charge on all present and future tangible/intangible movable assets of each of the
Borrowers, first charge on all present and future immovable assets (excluding the identified properties) of each of the
Borrowers, first charge on all present and future chargeable current assets of each of the Borrowers, first charge over Trust
and Retention Account (“TRA”) accounts of the Borrower, pledge of equity shares held by SEL in its 10 Indian subsidiaries
forming part of the Suzlon Entities, pledge on equity shares of certain overseas subsidiaries held by step down overseas
subsidiaries of SEL including Repower Systems AG (“REPower”), pledge of certain equity shares of SEL held by it’s promoters,
guarantee of overseas subsidiary, personal guarantee of the managing director of SEL and limited personal guarantee of
director of SSL.

(ii) Term loan from others of Rs. 5.64 crore is secured by specific FD against it.

7. Sales & Service Income

Particulars Year ended

March 31, 2011 March 31,2010

Sale of wind turbines (a) 4,187.16 3,267.98

Excisable sales (b) 12.33 18.03
Less: Excise duty (c) 1.11 1.38
Net excisable sales (d)=(b)-(c) 11.22 16.65
Income from Operation and maintenance service (e) 14.61 11.99
Other sales (f) 144.56 192.06
Total [a+d+e+f] 4,357.55 3,488.68

Break-up of Sale of wind turbines is as follows:

Revenue using percentage of completion method (See Schedule P, Note 4) 169.31 184.03

Revenue using dispatch method 4,017.85 3,083.95

Total 4,187.16 3,267.98

8. Disclosures pursuant to Accounting Standard-7 (AS-7) 'Construction Contracts'

Particulars Year ended

March 31, 2011 March 31, 2010

Contract revenue recognised during the period 169.31 184.03

Aggregate amount of contract cost incurred and recognised profits - -
(less recognised losses) for all contracts in progress up to the reporting date
Amount of customer advances outstanding for contracts in progress up - -
to the reporting date
Retention amount due from customers for contract in progress up to - -
the reporting date
Due from customers - -
Due to customers - -

88 Suzlon Energy Limited, Annual Report 2010-11

9. Employee stock option scheme

The Company has provided various Employee Stock Option Schemes to its employees. During the year ended March 31, 2011 the
following schemes were in operation:

Particulars ESOP 2005 ESOP 2006 ESOP 2007 ESOP ESOP ESOP ESOP ESOP Special
Perpetual-I Perpetual-I Perpetual-I Perpetual-I Perpetual-I ESOP
(Tranche I) (Tranche II) (Tranche II) (Tranche IV) (Tranche V) 2007
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
Grant date 16-Jun-05 23-Nov-07 21-May-09 5-Oct-09 30-Jan-10 28-Jul-10 30-Oct-10 21-Feb-11 1-Apr-10
Board approval date 25-Mar-05 29-Jan-07 15-Apr-08 16-Jun-08 16-Jun-08 16-Jun-08 16-Jun-08 16-Jun-08 15-Apr-08
Shareholder approval 16-Jun-05 10-Mar-07 22-May-08 13-Aug-09 13-Aug-09 13-Aug-09 13-Aug-09 13-Aug-09 22-May-08
Options granted (Nos) 4,605,000 519,500 1,878,000 10,916,787 135,000 175,000 50,000 75,000 14,143,500
Exercise Price (Rs) 51.00 192.20 90.50 70.00/87.50 61.80/77.25 46.76/58.45 44.36 47.70 72.70
Method of settlement Equity Equity Equity Equity Equity Equity Equity Equity Equity
Vesting period
Tranche 1 16-Jun-06 23-Nov-08 21-May-10 5-Oct-10 30-Jan-11 28-Jul-11 30-Oct-11 21-Feb-12 1-Apr-11
Tranche 2 16-Jun-07 23-Nov-09 21-May-11 5-Oct-11 30-Jan-12 28-Jul-12 30-Oct-12 21-Feb-13 1-Apr-12
Tranche 3 16-Jun-08 23-Nov-10 - 5-Oct-12 30-Jan-13 28-Jul-13 30-Oct-13 21-Feb-14 1-Apr-13
Vesting %
Tranche 1 30% 50% 75% 50% 50% 50% 50% 50% 33.33%
Tranche 2 30% 25% 25% 25% 25% 25% 25% 25% 33.33%
Tranche 3 40% 25% - 25% 25% 25% 25% 25% 33.34%
Exercise period Till 16-Jun- Till 23-Nov- Till 21-May- Till 5-Oct- Till 30-Jan- Till 28-July- Till 30-Oct- Till 21-Feb- Till 31-Mar-
(end date) 2011 2013 2015 2014 2015 2015 2015 2016 2014

The movement in the stock options during the year ended March 31, 2011 was as per the table below:

Particulars ESOP 2005 ESOP 2006 ESOP 2007 ESOP ESOP ESOP ESOP ESOP Special
Perpetual-I Perpetual-I Perpetual-I Perpetual-I Perpetual-I ESOP
(Tranche I) (Tranche II) (Tranche II) (Tranche IV) (Tranche V) 2007
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
Opening balance 348,000 383,000 1,699,000 10,204,496 135,000 - - - -
Granted during the year - - - - - 175,000 50,000 75,000 14,143,500
Forfeited/cancelled - 51,000 331,000 2,375,607 - - - - 2,931,000
during the year
Exercised during the year 8,000 - - - - - - - -
Expired during the year - - - - - - - - -
Closing balance 340,000 332,000 1,368,000 7,828,889 135,000 175,000 50,000 75,000 11,212,500
Exercisable at the end 340,000 332,000 1,026,000 3,914.445 67,500 - - - -
of the year (Included
in closing balance of
option outstanding)

The weighted average share price during the period ended March 31, 2011 was approximately Rs 55.20 (Rs 87.83) per share.

Fair value of options

The Company applies intrinsic value based method of accounting for determining compensation cost for Scheme I to Scheme IX.,
Following are the details of the amounts charged to the profit and loss account, rate per option, and cost per option calculated
based on ‘Black-Scholes’ Model.
ESOP ESOP ESOP ESOP Perpetual-I ESOP Perpetual-I ESOP Perpetual-I ESOP ESOP Special
(Tranche I) (Tranche II) (Tranche III) (Tranche (Tranche ESOP
VI) V) 2007
Particulars Scheme Scheme Scheme Scheme IV Scheme V Scheme VI Scheme Scheme Scheme
I II III VII VIII IX
Non-US US Non-US US Non-US US
Charge to profit Nil 0.57 0.01 5.18 0.07 0.08 0.02 Nil Nil
and loss account (Nil) (1.15) (0.28) (6.98) (0.01) (Nil) (Nil) (Nil) (Nil)
Rate per option 51.00 182.60 2.20 22.75 4.75 15.45 Nil 12.29 0.60 11.09 Nil Nil
(Rs)
Black Scholes' 51.84 231.32 46.31 46.25 39.75 41.39 35.91 28.13 22.76 28.09 22.48 29.53
Model - Cost (56.76) (246.77) (51.31) (50.86) (45.03) (45.25) (40.32) (Nil) (Nil) (Nil) (Nil) (Nil)
per option (Rs)

If the Cost per option was calculated based on the 'Black-Scholes' model, the loss after tax would have been higher by Rs. 34.33
crore (Rs. 18.15 crore)

Suzlon Energy Limited, Annual Report 2010-11 89

 Particulars Year ended March 31,
2011 2010
Earnings / (loss) per share
- Basic (1.29) (9.31)
- Diluted (1.29) (9.31)

10. Other Notes

(a) On July 12, 2010, the Company raised Rs 1,188.39 crore pursuant to a Rights Issue. The Company allotted 188,633,322
equity shares of Rs 2 each at a premium of Rs 61 per equity share on a rights basis to the existing equity shareholders of the
Company in the ratio of 2 equity shares for every 15 fully paid-up equity shares held by the existing equity shareholders on
the record date. The primary objective of the rights issue was to discharge certain existing loans availed by the Company
from its promoters. Consequently, loans of Rs 1,175.00 crore along with accrued interest of Rs 12.38 crore were discharged
by conversion into equity shares of the Company.

(b) On receipt of shareholders’ approval by way of Postal Ballot, on November 16, 2010, the Company issued and allotted
31,992,582 equity shares of Rs 2 each at a price of Rs 60 per share on preferential basis to ‘IDFC Trustee Company Ltd. A/c
IDFC Infrastructure Fund 3 A/c IDFC Private Equity Fund III’ (IDFC PE) as a consideration for acquisition of 41,254,125 equity
shares of Rs 10 each in SE Forge Limited (SEFL), a subsidiary of the Company. Consequent to acquisition of IDFC PE’s stake in
SEFL, SEFL became a wholly owned subsidiary of the Company.

(c) On April 12, 2011, the Company has made an issue of 5% Foreign Currency Convertible Bonds due 2016 for a total amount of
USD 175.00 million (Rs.776.83 crores). The initial conversion price is set at Rs.54.01 per share and the same is subject to
adjustments in certain circumstances.

(d) Net foreign exchange gains aggregating Rs 136.90 crore (gain Rs 62.88 crore) on long term foreign currency monetary items
have been adjusted in the foreign currency monetary item translation difference account during the year. Further, foreign
exchange gains aggregating Rs 3.50 crore (Rs 202.99 crore) have been amortised during the year.

(e) Creditors include acceptances of Rs 448.75 crore (Rs 454.58 crore).

(f) Expenditure amounting to Rs 2.89 crore (Rs 1.42 crore) and Rs 1.58 crore (Rs 1.56 crore) pertaining to employee
remuneration and benefits; and operating and other expenditure respectively, being expenditure incurred in connection
with the construction of certain self manufactured assets have been deducted from the respective expenditure heads and
have been capitalised under appropriate asset heads.

(g) The Company incurs expenditure on development of infrastructure facilities for power evacuation arrangements as per
authorization of the state electricity boards (SEB)/nodal agencies. In certain cases the expenditure is reimbursed, on agreed
terms, by the SEB/nodal agencies and in certain other cases the Company recovers it from the customers. Where the
expenditure is reimbursed by the SEB/nodal agency, the cost incurred is reduced by the reimbursements received and the
net amount is charged to profit and loss account. Where an arrangement is entered into with customers for power
evacuation charges, the proportionate direct cost computed on per mega watt basis is netted off from the amount charged
to customers and the net deficit/(surplus) is charged / credited to profit and loss account. The deficit/surplus from
infrastructure development across all SEBs / nodal agencies is shown under "infrastructure development expenses" or
"other income" as the case may be. Indirect expenses not directly relatable to power evacuation are charged to the
respective account heads in profit and loss account.

11. Statement showing the use of proceeds from Right Issue Allotment up to March 31, 2011

On July 12, 2010, the Company has raised Rs 1,188.39 crore through issuance of 188,633,322 equity shares of Rs 2 each at a
premium of Rs 61 per equity share.. The details of utilization of Right issue proceeds are given below:

Sr. No. Particulars As at March 31, 2011

I Sources of funds
Proceeds from Issue 1,188.39
II Utilisation of funds
Repayment of loan from Promoter companies 1,187.38*
Payment of issue expenses in part 1.01
Total 1,188.39
III Unutilised funds -

*Loans availed by the Company from its promoters were discharged by conversion of same into equity shares which have been
included in proceeds from issue above.

12. Operating leases

(a) Premises

The Company has taken certain premises under cancellable operating leases. The total rental expense under cancellable
operating leases during the period was Rs 8.65 crore (Rs 11.74 crore). The Company has also taken furnished/unfurnished
offices and certain other premises under non-cancellable operating lease agreement. The lease rental charge during the
year is Rs 1.27 crore (Rs 8.15 crore) and maximum obligations on long–term non-cancellable operating lease payable as per
the rentals stated in respective agreement are as follows:

90 Suzlon Energy Limited, Annual Report 2010-11

 Obligation on non-cancellable operating leases Year ended March 31,
2011 2010
Not later than one year 0.79 8.52
Later than one year and not later than five years 0.08 5.77
Later than five years 0.00 0.19

(b) WTG's

The Company has taken WTGs on non-cancellable operating lease, chargeable on per unit basis of net electricity generated
and delivered. The lease amount would be determined in the future on the number of units generated. Lease rental
expense for the period is Rs 2.50 crore (Rs 2.45 crore).

Sublease rental income recognised in the statement of profit and loss account for the period is Rs 2.41 crore (Rs 2.45 crore).

13. Post employment benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible for
gratuity. Gratuity is computed based on 15 days salary based on last drawn salary for each completed year of service. The scheme
is funded with an insurance company in the form of a qualifying insurance policy.

Changes in the present value of the defined benefit obligation are as follows:

Particulars Year ended March 31,

2011 2010
Opening defined benefit obligation 10.68 9.15
Interest cost 0.82 0.71
Current service cost 2.56 2.53
Benefits paid (1.40) (0.38)
Actuarial (gains)/losses on obligation 0.92 (1.33)
Closing defined benefit obligation 13.58 10.68

Changes in the fair value of plan assets are as follows:

Particulars Year ended March 31,

2011 2010
Opening fair value of plan assets 9.47 7.12
Expected return 0.87 0.67
Contributions by employer* 2.95 2.01
Benefits paid (1.40) (0.38)
Actuarial gains / (losses) (0.02) 0.05
Closing fair value of plan assets 11.87 9.47

* The contribution made by the employer during the year was Rs 3.11 crore (Rs 2.01 crore) of which Rs 2.95 crore (Rs 2.01 crore) was
paid towards approved fund and Rs 0.16 crore (Nil) was towards OYRGTA premium. The actual return on plan assets during the year
was Rs 0.84 crore (Rs 0.61 crore).

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

Particulars As at March 31,

2011 2010
Investments in approved fund 100% 100%

Details of defined benefit obligation

Particulars Year ended March 31,

2011 2010
Defined benefit obligation (A) 13.58 10.68
Fair value of plan assets (B) 11.87 9.47
Present value of unfunded obligations (C=A-B) 1.71 1.21
Less: Unrecognised past service cost (D) - -
Plan liability/(asset) (E=C-D) 1.71 1.21

Suzlon Energy Limited, Annual Report 2010-11 91

 Net employees benefit expense recognised in the profit and loss account

Particulars Year ended March 31,

2011 2010
Current service cost 2.56 2.53
Interest cost on benefit obligation 0.82 0.71
Expected return on plan assets (0.87) (0.67)
Net actuarial (gain) / loss recognised in the year 0.94 (1.39)
Past service cost Nil Nil
Net benefit expense 3.45 1.18

Amounts for the current and previous periods are as follows:

Particulars Year ended March 31,

2011 2010 2009 2008 2007

Defined benefit obligation 13.58 10.68 9.15 4.49 2.66

Plan assets 11.87 9.47 7.12 4.81 1.92
Surplus/(deficit) (1.71) (1.21) (2.03) 0.32 (0.74)
Experience adjustments (0.92) 0.95 (1.61) - -
on plan liabilities
Experience adjustments (0.02) 0.05 (0.35) - -
on plan assets

The principal assumptions used in determining defined benefit obligation are shown below:

Particulars Year ended March 31,

2011 2010

Discount rate 8.20% 8.20%

Expected rate of return on plan assets 8.50% 8.50%
Salary escalation rate 8.00% 8.00%
Attrition rate 10% at younger 10% at younger
ages and reducing age and reducing
to 1% at older age to 1% at older age
according to according to
graduated scale graduated scale

The estimated future salary increase considered in actuarial valuation, takes into account the effect of inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market. The overall expected rate of return
on plan assets is determined based on the market prices prevailing as on balance sheet date, applicable to the period over which
the obligation is to be settled.

14. Provisions

In pursuance of Accounting Standard-29 (AS-29) ‘Provisions, contingent liabilities and contingent assets’, the provisions required
have been incorporated in the books of account in the following manner:

Particulars Performance Operation, Provision for

guarantee maintenance and liquidated
warranty damages

Opening balance 85.04 99.55 35.28

(160.89) (158.98) (27.51)
Additions during the year 118.91 134.97 41.36
(119.25) (99.58) (54.48)
Utilisation 74.42 70.79 7.17
(195.10) (159.01) (46.71)
Closing balance 129.53 163.73 69.47
(85.04) (99.55) (35.28)

The provision for performance guarantee ('PG') represents the expected outflow of resources against claims for performance
shortfall expected in future over the life of the guarantee assured. The period of performance guarantee varies for each customer
according to the terms of contract. The key assumptions in arriving at the performance guarantee provisions are wind velocity,
plant load factor, grid availability, load shedding, historical data, wind variation factor etc.

92 Suzlon Energy Limited, Annual Report 2010-11

 The provision for operation, maintenance and warranty ('O&M')represents the expected liability on account of field failure of parts
of WTG and expected expenditure of servicing the WTGs over the period of free operation, maintenance and warranty, which
varies according to the terms of each sales order.
Provision for liquidated damages ('LD') represents the expected claims which the Company may need to pay for non fulfilment of
certain commitments as per the terms of the sales order. These are determined on a case to case basis considering the dynamics of
each sales order and the factors relevant to that sale.
15. Deferred tax assets, net
Particulars As at During the year As at
March 31, 2010 2010-11 March 31, 2011

Deferred tax assets

Carried forward losses and unabsorbed - 55.64 55.64
depreciation
Total deferred tax assets - 55.64 55.64

16. Earnings / (loss) per share ('EPS')

(All amounts in Rs. crore except per share data)
Particulars Year ended March 31,
2011 2010

Basic
Net profit/(loss) after tax A (185.66) (1,414.09)
Weighted average number of equity shares B 1,704,579,510 1,538,477,796
Basic earnings/(loss) per share of Rs 2 each A/B (1.09) (9.19)
Diluted
Net profit/(loss) after tax C (185.66) (1,414.09)
Add: Interest on foreign currency convertible bonds (net of tax) D 12.88 17.54
Adjusted net loss after tax E=C-D (172.78) (1,396.55)
Weighted average number of equity shares F 1,704,579,510 1,538,477,796
Add: Equity shares for no consideration arising on grant of share options G 19,411 1,066,418
Add: Potential weighted average equity shares that could arise on H 237,164,922 102,922,093
conversion of foreign currency convertible bonds
Weighted average number of equity shares for diluted EPS I = (F+G+H) 1,941,763,843 1,642,466,307
Diluted earnings/(loss) per share (Rs) of face value of Rs 2 each (1.09) (9.19)
[see note below]*

*Since the earnings / (loss) per share computation based on diluted weighted average number of shares is anti-dilutive, the basic
and diluted earnings / (loss) per share is the same.
17. Managerial remuneration to directors
Particulars Year ended March 31,
2011 2010
(i) Salaries (-) 1.19*
(ii) Contribution to superannuation and provident fund (-) 0.15*
(iii) Sitting fees 0.05 0.07
Total 0.05 2.13
*During the year, managerial remuneration paid to the directors in financial year 09-10 has been recovered in view of the losses
during the financial year 09-10 and decision taken at the Fifteenth Annual General Meeting of the company.
As the liabilities for gratuity are provided on an actuarial basis for the Company as a whole, the amounts to the directors are not included above.

18. (a) Contingent liabilities

Particulars As at March 31,
2011 2010
Guarantees given on behalf of subsidiaries in respect of loans 3,302.75 2,371.67
granted to them by banks/financial institutions
Premium on redemption of convertible bonds 579.21 377.22
Claims against the Company not acknowledged as debts* 41.95 42.24
Income tax matters pending in appeal 21.96 12.71
Others 3.84 2.79
*Claims against the company not acknowledged as debts include claims raised on the company by vendors of goods, which
have not been accepted by the company as liabilities.

Suzlon Energy Limited, Annual Report 2010-11 93

 The Company is a co-guarantor towards loan granted to its subsidiaries.

(b) Capital commitments

Particulars As at March 31,

2011 2010

Estimated amount of contracts remaining to be executed on capital account 156.00 143.26

and not provided for net of advances

19. (a) Derivative instruments and unhedged foreign currency exposure

Particulars of derivatives Purpose

Forward contract outstanding as at balance sheet date:

Buy Euro 4,000,000 (Euro Nil) Hedge of forex EURO liabilities

Sell USD Nil (USD 38,600,000) Hedge of forex USD receivable

Principal only currency swaps contracts outstanding as at balance sheet date:

USD 46,665,379 (USD Nil) Notional Amount Hedge of forex USD receivables
Euro 18,948,075 (Euro Nil) Notional Amount Hedge of forex Euro loans given

(b) Particulars of unhedged foreign currency exposure as at the Balance Sheet date:

Particulars As at March 31,

2011 2010

Current liabilities 3,240.77 2,672.97

Foreign currency convertible bonds 2,136.27 2,150.89
Loans payable 299.64 258.20
Debtors 1,178.79 1,908.67
Loans receivable 2,840.85 2,113.67
Bank balance in current and term deposit accounts 12.05 3.27
Investments in overseas subsidiaries 7,148.79 7,001.49

20. Related party disclosure

As per Accounting Standard – 18 (AS 18) – ‘Related Party Disclosure’, as notified by the Rules, the disclosures of transactions with
the related parties as defined in the accounting standard are given below:

a. List of related parties and nature of relationships where control exists

Name of the party Nature of relationship

AE Rotor Holding B.V. Subsidiary company

Age Parque Eolico El Almendro S.L. Subsidiary company
Cannon Ball Wind Energy Park-1, LLC Subsidiary company
PowerBlades GmbH Subsidiary company
PowerBlades SA Subsidiary company
Rep Ventures Portugal S.A. Subsidiary company
REpower Australia Pty Ltd. Subsidiary company
REpower Benelux b.v.b.a. Subsidiary company
REpower Betriebs – und Beteiligungs GmbH Subsidiary company
REpower Systems Inc. (Canada) Subsidiary company
REpower Diekat S.A. Subsidiary company
REpower Espana S.L. Subsidiary company
REpower Geothermie GmbH Subsidiary company
REpower Investitions – und Projektierungs GmbH & Co. KG Subsidiary company
REpower Italia s.r.l Subsidiary company

94 Suzlon Energy Limited, Annual Report 2010-11

Suzlon Energy Limited, Annual Report 2010-11

 Name of the party Nature of relationship

REpower North (China) Ltd. Subsidiary company

REpower Portugal - Sistemas Eolicos, S.A. Subsidiary company
REpower Systems GmbH (earlier known as Einundzwanzigste Subsidiary company
Vittorio Verwaltungs GmbH)
REpower Systems Polska Sp.zo.o Subsidiary company
REpower S.A.S. Subsidiary company
REpower Systems Scandinavia AB Subsidiary company
REpower Systems AG Subsidiary company
REpower UK Ltd. Subsidiary company
REpower USA Corp. Subsidiary company
REpower Wind Systems Trading (China) Ltd. Subsidiary company
REpower Windpark Betriebs GmbH Subsidiary company
RETC Renewable Energy Technology Centre Subsidiary company
RPW Investments SGPS,SA Subsidiary company
Renewable Energy Contractors Australia Pty Ltd Subsidiary company
RiaBlades S.A. Subsidiary company
SE Composites Limited Subsidiary company
SE Drive Technik GmbH Subsidiary company
SE Electricals Limited Subsidiary company
SE Forge Limited Subsidiary company
SE Solar Limited Subsidiary company
SISL Green Infra Limited Subsidiary company
Sure Power LLC Subsidiary company
Suzlon Blade Technology B.V. Subsidiary company
Suzlon Energia Elocia do Brazil Ltda Subsidiary company
Suzlon Energy (Tianjin) Limited Subsidiary company
Suzlon Energy A/S Subsidiary company
Suzlon Energy Australia Pty. Ltd. Subsidiary company
Suzlon Energy Australia RWFD Pty Ltd Subsidiary company
Suzlon Energy Australia CYMWFD Pty Ltd Subsidiary company
Suzlon Energy B.V. Subsidiary company
Suzlon Energy GmbH Subsidiary company
Suzlon Energy Korea Co., Ltd. Subsidiary company
Suzlon Energy Limited, Mauritius Subsidiary company
Suzlon Engitech Limited Subsidiary company
Suzlon Generators Limited Subsidiary company
Suzlon Gujarat Wind Park Limited Subsidiary company
Suzlon Infrastructure Services Limited Subsidiary company
Suzlon North Asia Ltd Subsidiary company
Suzlon Power Infrastructure Limited Subsidiary company
Suzlon Rotor Corporation Subsidiary company
Suzlon Structures Limited Subsidiary company
Suzlon Towers and Structures Limited Subsidiary company
Suzlon Wind Energy A/S Subsidiary company
Suzlon Wind Energy BH Subsidiary company
Suzlon Wind Energy Bulgaria EOOD Subsidiary company
Suzlon Wind Energy Corporation Subsidiary company
Suzlon Wind Energy Equipment Trading (Shanghai) Co., Ltd. Subsidiary company
Suzlon Wind Energy Espana, S.L Subsidiary company
Suzlon Wind Energy Italy s.r.l. Subsidiary company
Suzlon Wind Energy Limited Subsidiary company
Suzlon Wind Energy Nicaragua Sociedad Anonima Subsidiary company

Suzlon Energy Limited, Annual Report 2010-11 95

 Name of the party Nature of relationship

Suzlon Wind Energy Portugal Energia Elocia Unipessoal Lda Subsidiary company
Suzlon Wind Energy Romania SRL Subsidiary company
Suzlon Wind Enerji Sanayi Ve Ticaret Limited Sirketi Subsidiary company
Suzlon Wind Energy South Africa (PTY) Ltd Subsidiary company
Suzlon Windenergie GmbH Subsidiary company
Suzlon Wind International Limited Subsidiary company
Suzlon Windpark Management GmbH Subsidiary company
Tarilo Holding B.V. Subsidiary company
Valum Holding B.V. Subsidiary company
Ventipower S.A. Subsidiary company
WEL Windenergie Logistik GmbH Subsidiary company
Windpark Blockland GmbH & Co KG Subsidiary company
Windpark Olsdorf Watt Gmbh & Co. KG Subsidiary company

b. Other related parties with transactions have taken place during the year:

(I) Associates:

Hansen Transmission International NV

(ii) Entities where key management personnel ('KMP') / relatives of key management personnel ('RKMP') have
significant influence:

Sarjan Realities Limited, Synefra Engineering & Construction Limited, Tanti Holdings Private Limited, Suzlon
Foundation, Girish R. Tanti (HUF), Sanman Holdings Private Limited, SE Energy Park Limited, Suruchi Holdings Private
Limited, Sugati Holdings Private Limited, Synew Steel Limited, Salene Power Infrastructure Limited (formerly known
as Sarjan Infrastructure Finance Limited)

(iii) Key management personnel of Suzlon Energy Limited:

Tulsi R. Tanti, Girish R. Tanti, Vinod R. Tanti *

(iv) Relatives of key management personnel of Suzlon Energy Limited:

Jitendra R. Tanti, Nidhi T. Tanti

(v) Employee funds:

Suzlon Energy Limited – Superannuation Fund.

Suzlon Energy Limited – Employees Group Gratuity Scheme.

* He is RKMP till October 31, 2010 and appointed as a whole-time director of the company with effect from 1st November 2010.

c. Transactions between the Company and related parties and the status of outstanding balances as at March 31, 2011:

Particulars Subsidiary Associate Entities where KMP RKMP Employee

KMP / RKMP Funds
has significant
influence
Transactions

Purchase of fixed assets 67.44 - 0.02 - - -

(including intangibles) (90.26) (-) (3.88) (-) (-) (-)
Sale of fixed assets 8.58 - 0.01 - - -
(1.43) (-) (-) (-) (-) (-)
Issue of equity shares - - 1,187.38 - - -
(including securities premium) (-) (-) (-) (-) (-) (-)
Subscription to/purchase of - - - - - -
preference share (223.71) (-) (-) (-) (-) (-)
Subscription to/purchase of 339.27 - - - - -
equity share (666.51) (-) (-) (-) (-) (-)
Redemption of preference shares 30.00 - - - - -
(-) (-) (-) (-) (-) (-)
Loans taken - - 145.00 - - -
(-) (-) (1,175.00) (-) (-) (-)
Loans given 1,945.56 - - - - -
(3,334.41) (-) (10.69) (-) (-) (-)

96 Suzlon Energy Limited, Annual Report 2010-11

 Particulars Subsidiary Associate Entities where KMP RKMP Employee
KMP / RKMP Funds
has significant
influence

Sale of goods (net of returns) 140.39 - - - - -

(1,193.67) (-) (-) (-) (-) (-)
Purchase of goods and services 841.64 0.16 5.53 - - -
(646.64) (-) (11.09) (-) (-) (-)
Reimbursement of other expenses 17.02 - - - - -
(17.41) (-) (-) (-) (-) (-)
Reimbursement of expense payable** 455.00 - - - - -
(412.50) (-) (-) (-) (-) (-)
Corporate social welfare expense - - 0.35 - - -
(-) (-) (2.86) (-) (-) (-)
Interest expense - - 20.87 - - -
(6.85) (3.62) (56.28) (-) (-) (-)
Interest income 264.53 - 5.00 - - -
(203.89) (-) (6.16) (-) (-) (-)
Dividend income 36.02 - - - - -
(0.06) (-) (-) (-) (-) (-)
Lease rent income 0.54 - - - - -
(0.32) (-) (-) (-) (-) (-)
Royalty income - - - - - -
(15.66) (-) (-) (-) (-) (-)
Rent expense 0.03 - 0.19 - - -
(0.03) (-) (0.01) (-) (-) (-)
Guarantees given 431.81 - - - - -
(2,138.31) (-) (-) (-) (-) (-)
remuneration paid - - - (2.06) 0.01 -
(-) (-) (-) (2.06) (-) (-)
Contribution to various funds - - - - - 3.36
(-) (-) (-) (-) (-) (2.13)

Outstanding-Balances

Investments 604.68 - - - - -
(634.69) (-) (-) (-) (-) (-)
Advance from customers 20.64 - - 1.13 0.37 -
(-) (-) (-) (0.75) (0.75) (-)
Sundry debtors 1,248.93 - - - - -
(2,144.80) (-) (-) (-) (-) (-)
Loans outstanding 4,107.24 - - - - -
(including interest) (3,107.31) (-) (2.04) (-) (-) (-)
Deposits outstanding - - 59.50 - - -
(including interest) (-) (-) (55.00) (-) (-) (-)
Unsecured Loan - - 145.32 - - -
(including interest) (-) (-) (1,181.99) (-) (-) (-)
Advances to suppliers and 86.12 - - - - -
other receivables (41.39) (-) (-) (-) (-) (-)
Sundry creditors 1,963.84 35.74 0.64 - - -
(2,104.09) (216.42) (0.87) (-) (-) (-)
Corporate guarantees 3,302.75 - - - - -
(2,371.67) (-) (-) (-) (-) (-)

** Reimbursement of expenses relates to amount payable to subsidiaries on account of guarantee and warranty obligations
arising out of WTG Sale

Note ; Certain subsidiaries and group companies have been allowed to make free of charge use of SAP software and office
premises owned by the company.

Suzlon Energy Limited, Annual Report 2010-11 97

d. Disclosure of significant transactions with related parties:

Type of Transaction Type of relationship Name of the entity / person Year ended March 31,
2011 2010
Purchase of fixed Subsidiary Suzlon Blade Technology B.V. 21.65 30.96
assets (including Subsidiary Suzlon Energy Gmbh 34.64 59.07
intangibles Subsidiary SE Composites Limited 9.46 -
Sale of fixed assets Subsidiary SE Electricals Limited 0.10 0.18
Subsidiary SE Composites Limited 0.90 1.22
Subsidiary Suzlon Structures Limited 7.16 -
Subscription to / Subsidiary SE Electricals Limited - 17.80
purchase of preference Subsidiary SE Composites Limited - 120.88
shares Subsidiary Suzlon Wind International Limited - 85.03
Subscription to / Subsidiary Suzlon Energy Limited, Mauritius 145.00 292.71
purchase of preference Subsidiary Suzlon Energy A/S - 370.66
shares Subsidiary SE Forge Limited 191.96 -
Redemption of Subsidiary Suzlon Towers & Structures Limited 5.00 -
investment in preference Subsidiary Suzlon Infrastructure Services Limited 25.00 -
Loan taken Entities where KMP Tanti Holdings Private Limited 145.00 -
/ RKMP has
significant influence
Entities where KMP SE Energy Park Limited - 565.00
/ RKMP has
significant influence
Entities where KMP Sanman Holdings Private Limited - 610.00
/ RKMP has
significant influence
Loans given Subsidiary SE Composites Limited 362.15 411.09
Subsidiary AE Rotor Holdings B.V. 397.67 1,390.93
Subsidiary Suzlon Wind International Limited 666.48 936.37
Sale of goods Subsidiary Suzlon Infrastructure Services Limited 41.96 56.74
(net of returns) Subsidiary Suzlon Energy (Tianjin) Limited 23.88 26.21
Subsidiary Suzlon Wind International Limited 38.56 11.22
Subsidiary Suzlon Energy Australia Pty. Limited 2.14 136.04
Subsidiary Suzlon Wind Energy Corporation 5.06 825.49
Purchase of goods Subsidiary Suzlon Infrastructure Services Limited 123.29 130.34
and services Subsidiary Suzlon Wind International Limited 35.45 82.20
Subsidiary SE Electricals Limited 206.99 85.14
Subsidiary SE Forge Limited 167.55 31.24
Reimbursement of Subsidiary Suzlon Wind Energy Corporation 262.13 236.75
expenses payable Subsidiary Suzlon Energy Australia Pty. Ltd. 141.61 113.46
Corporate Social Entities where KMP Suzlon Foundation 0.35 2.86
Welfare expense / RKMP has significant
influence
Interest income Subsidiary AE Rotor Holding B.V. 144.89 97.32
Subsidiary SE Composites Limited 49.70 31.01
Subsidiary Suzlon Wind International Limited 45.81 27.33
Interest expense Entities where KMP SE Energy Park Limited 4.02 33.21
/ RKMP has significant
influence
Entities where KMP Sanman Holdings Private Limited 16.50 21.99
/ RKMP has significant
influence
Subsidiary Hansen Transmission International - 5.48
NV
Associate Hansen Transmission International - 3.62
NV
Dividend income Subsidiary SE Composites Limited - 0.03
Subsidiary Suzlon Energy (Tianjin) Limited 36.02 -
Subsidiary Suzlon Wind International Limited - 0.03
Royalty income Subsidiary Suzlon Energy (Tianjin) Limited - 15.66
Lease rent income Subsidiary SE Electricals Limited 0.54 0.32

98 Suzlon Energy Limited, Annual Report 2010-11

 Type of Transaction Type of relationship Name of the entity / person Year ended March 31,
2011 2010

Rent expense Subsidiary Suzlon Infrastructure Services Limited 0.03 0.03

Entities where KMP Girish R. Tanti (HUF) 0.01 0.01
/ RKMP has significant
influence
Entities where KMP Sanman Holdings Private Limited 0.06 -
/ RKMP has significant
influence
Entities where KMP Suruchi Holdings Private Limited 0.06 -
/ RKMP has significant
influence
Entities where KMP Sugati Holdings Private Limited 0.06 -
/ RKMP has significant
influence
Remuneration paid KMP Tulsi R. Tanti (1.46) 1.46
KMP Girish R. Tanti (0.60) 0.60
Contribution to various Employee Funds Suzlon Energy Limited - 0.25 0.13
funds Superannuation Fund
Employee Funds Suzlon Energy Limited - 3.11 2.00
Employees Group Gratuity Scheme
Guarantees given on Subsidiary SE Drive Techniek GmbH - 2,083.36
behalf of Subsidiary Suzlon Energy A/S 379.07 -
Subsidiary Suzlon Energia Elocia do Brazil Ltda 52.74 54.94
Reimbursement of Subsidiary Suzlon Wind International Limited - 6.36
other expense Subsidiary SE Composites Limited - 3.34
Subsidiary Suzlon Generators Limited 17.02 -
Share application Entities where KMP Tanti Holdings Private Limited - 95.00
money refunded / RKMP has significant
influence

21. Disclosures as required by Clause 32 of the Listing Agreement with Stock Exchanges

Type of relationship Name Amount outstanding Maximum Amount

as at March 31, outstanding
2011 during the year

Subdidiaries Suzlon Towers and Structures Limited - 35.00

Suzlon Power Infrastructure Limited 63.64 151.24
Suzlon Infrastructure Services Limited - 25.00
Suzlon Gujarat Wind Park Limited 16.60 90.19
Suzlon Structure Limited - 2.82
SE Forge Limited - 0.17
SE Composites Limited 490.10 490.35
Suzlon Wind International Limited 447.50 447.50
SE Electricals Limited 29.45 78.27
Suzlon Rotor Corporation 10.52 10.52
AE Rotor Holding B.V. 2,606.37 2,653.70
Suzlon Energy A/S 77.70 77.70
Suzlon Engitech Limited 106.17 106.97

Companies in which Synefra Engineering & Construction Limited (Formerly 50.00 50.00
directors are Suzlon Infrastructure Limited)
interested Shubh Realty (South) Private Limited - 2.04

Note:

a. All the above balances of loans are excluding accrued interest aggregating Rs 266.35 crore (Rs 192.23 crore) and are payable
on demand/as per agreement.

b. No loans have been granted by the Company to any person for the purpose of investing in the shares of Suzlon Energy
Limited or any of its subsidiaries.

Suzlon Energy Limited, Annual Report 2010-11 99

 Loans and advances to companies under the same management, as per the provisions of Section 370 (1B) of the Companies Act

Name Amount outstanding Maximum Amount

as at March 31, 2011 outstanding
during the year

Synefra Engineering & Construction Limited (Formerly Suzlon Infrastructure Limited) 50.00 50.00
Shubh Realty (South) Private Limited - 2.04

22. Disclosure of Micro and Small Enterprises

Sr. Particulars Year ended March 31,

2011 2010
(i) Principal amount remaining unpaid to any supplier as at the end of the year 6.70 35.80
Interest due on the above amount 0.12 0.27
(ii) Amount of interest paid in terms of section 16 of the Micro, Small and - -
Medium Enterprises Act, 2006
Amounts of payment made to the suppliers beyond the appointed day during the year 18.75 35.80
(iii) Amount of interest due and payable for the period of delay in making payment - -
but without adding the interest specified under this Act - -
(iv) Amount of interest accrued and remaining unpaid at the end of the year* - -
(v) Amount of further interest remaining due and payable even in the succeeding years, 3.84 2.79
until such date when the interest dues as above are actually paid to the small enterprise

*Interest payable as per section 16 of the Micro, Small and Medium enterprises Act, 2006 is Rs. 3.84 crore (Rs. 2.79 crore) and same
is not accrued in the books of accounts as the amount is not contractually payable.

23. Additional information pursuant to the provisions of paragraphs 3, 4B, 4C, 4D of part II of schedule VI of the Companies Act, 1956.

a. Auditors remuneration and expenses

Particulars Year ended March 31,

2011 2010
As auditor:
- Statutory audit fees 1.84 2.13
- Tax audit fees 0.06 0.06

In other capacities:
- Taxation matters
- Certification and advisory services* 0.85 0.44
- Reimbursement of out of pocket expenses 0.01 0.16

Total 2.76 2.79

* Includes Rs.0.39 crore (Rs.0.38 crore) paid for agreed upon procedures with regard to issue of debt and equity of the
Company and adjusted from securities premium account.

b. Licensed and installed capacities and production

Licensed capacity - The products manufactured and sold by the Company i.e., WTG’s and components have not been included
in the list of mandatory items, which require a license under the New Industrial Policy in terms of Notification no. S.O.477 (E)
dated 25th July, 1991; and hence, licensing requirements are not applicable to the products manufactured by the Company.

Installed capacity - The installed capacities are not precisely ascertainable, given the nature of operations, changes in
product mix and utilisation of manufacturing facilities and hence, have not been disclosed.

Production

Particulars Units produced

(in Nos.) (in MW's)
Wind Turbine Generators
upto 1 MW 89 53.40
(100) (60.00)
Above 1 MW and upto 2 MW 435 625.75
(326) (460.00)
Above 2 MW 228 478.80
(212) (445.20)
Total 752 1,157.95
(638) (965.20)

100 Suzlon Energy Limited, Annual Report 2010-11

 c. Details of opening stock, turnover and closing stock

Particulars Year ended March 31, 2011 Year ended March 31, 2010
Nos. MW Amount Nos MW Amount
Opening stock

Wind Turbine Generators

Upto 1 MW - - - - - -
Above 1 MW and upto 2 MW - - - - - -
Above 2 MW - - - - - -
Land / Lease rights - - 22.75 - - 21.88
- - 22.75 - - 21.88

Turnover

Wind Turbine Generator

Upto 1 MW 89 53.40 233.71 100 60.00 258.40
Above 1 MW and upto 2 MW 435 625.75 2,357.22 326 460.00 1,574.95
Above 2 MW* 228 478.80 1,596.23 227 476.70 1,434.63
Land / Lease rights 11.02 12.35
Others 159.37 208.35
752 1,157.95 4,357.55 653 996.70 3,488.68

Closing stock

Wind Turbine Generators

Upto 1 MW - - - - - -
Above 1 MW and upto 2 MW - - - - - -
Above 2 MW - - - - - -
Land / Lease rights - - 24.85 - - 22.75
- - 24.85 - - 22.75

*During the previous year 15 WTGs of 2.10 MW were purchased from one of the wholly owned subsidiaries of the Company
for sale under construction contracts.

d. Raw materials consumed

Particulars Year ended March 31, Year ended March 31,

2011 2010
Quantity Amount Quantity Amount
(i) Gear Box (nos) 823 640.53 575 476.23
(ii) Others (see note below) Various 2,306.91 Various 1,742.14
2,947.44 2,218.37

Note :

It is not practicable to furnish quantitative information in view of large number of items which differ in size and nature, each
being less than 10% in value of the total raw materials consumed.

e. Imported and indigenous consumption

a. Raw materials

Particulars Year ended March 31, Year ended March 31,

2011 2010
Amount % Amount %
Imported 1,910.92 64.83 1,375.15 61.99
Indigenous 1,036.52 35.17 843.22 38.01
2,947.44 100.00 2,218.37 100.00

Suzlon Energy Limited, Annual Report 2010-11 101

 b. Stores and spares

Year ended March 31, Year ended March 31,

Particulars 2011 2010
Amount % Amount %
Imported 2.14 7.02 2.62 12.12
Indigenous 28.30 92.98 19.02 87.88
30.44 100.00 21.64 100.00

f. Value of imports on CIF basis

Particulars Year ended March 31,

2011 2010
(i) Raw materials 1,744.81 1,032.62
(ii) Stores and spares 0.96 0.49
(iii) Capital goods 60.66 96.81
1,806.43 1,129.92

g. Expenditure in foreign currency (on accrual basis)

Particulars Year ended March 31,

2011 2010
(i) Consultancy 13.68 10.14
(ii) R & D, certification and product development and quality assurance 97.38 73.57
(iii) Interest 53.51 60.82
(iv) Design change and technological upgradation charges 62.26 81.07
(v) Performance guarantee expenses 75.84 74.92
(vii) Liquidated damages 0.92 39.58
(viii) Operations & maintenance charges 190.77 121.77
(ix) Consent fee paid to Foreign Currency Convertible Bond holders 27.10 68.36
(x) Expenses incurred towards issue of debt and equity of the company 1.72 32.98
(xi) Others 25.06 23.14

h. Earnings in foreign currency (on accrual basis)

Particulars Year ended March 31,

2011 2010
F.O.B. value of exports 32.78 990.33
Interest on loans 146.27 97.94
Royalty - 15.66
Dividend received 36.02 -

24. Segment reporting

As permitted by paragraph 4 of Accounting Standard-17 (AS - 17), 'Segment Reporting', if a single financial report contains both
consolidated financial statements and the separate financial statements of the parent, segment information need be presented
only on the basis of the consolidated financial statements. Thus, disclosures required by AS 17 are given in consolidated financial
statements.

102 Suzlon Energy Limited, Annual Report 2010-11

25. Prior year amounts have been reclassified wherever necessary to conform with current year presentation. Figures in the brackets
are in respect of the previous year.

Signatories to Schedules 'A' to 'P'

As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Executive Director
Chartered Accountants Chartered Accountants Director

per Jasmin B. Shah per Arvind Sethi Hemal Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer

Membership No. 46238 Membership No. 89802

Place: Pune Place: Pune Place: Pune
Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

Suzlon Energy Limited, Annual Report 2010-11 103

Balance Sheet abstract and Company's general business profile

Registration details : Registration No.: L40100GJ1995PLC025447 State code 04

Balance sheet date : March 31, 2011 In Rs. thousand, except per share data

Capital raised during the year

Public issue –
Rights issue 377,267
Bonus issue –
Private placement* 64,001

Position of mobilization and deployment of funds

Total assets 134,718,045

Total liablilities 134,718,045

Sources of funds

Paid-up capital 3,554,731

Employee stock options 204,344
Share application money pending allotment –
Reserve and surplus 64,185,686
Secured loans 43,957,428
Unsecured loans 22,815,895

Application of funds

Net fixed assets 9,013,294

Investments 78,450,723
Net current assets 46,697,657
Deffered tax assets 556,371
Miscellaneous expenditure –
Accumulated losses –

Performance of the company

Turnover 43,575,454
Other income 3,405,096
Total income 46,980,550
Total expenditure 49,212,679
Profit/loss before tax and exceptional items (2,232,129)
Profit/loss before tax and after exceptional items (2,604,972)
Profit/loss after tax and after exceptional items (1,856,681)
Earnings per share (Basic) (Rs.) (1.09)
Dividend rate (%) (Equity share of par value Rs.2 each) –

Generic Names of Principal Products/Services of Company

Item Code No. (ITC Code) 85023100

Product Description Wind operated electricity generators

* Include 8,000 equity shares of face value of Rs. 2 each, alloted under ESOP scheme.

104 Suzlon Energy Limited, Annual Report 2010-11

SECTION 212 REPORT
Statement pursuant to Section 212(8) of the Companies, Act, 1956 related to Subsidiary Companies
(Amount Rs. in crore)
Sr. Name of the Subsidiary Reporting Issued and Reserves Total Total Investments Turnover Profit/ Provision Profit/ Proposed Country
No. Company Currency subscribed assets liabilities (loss) for (loss) dividend
share before taxation & after equity
capital taxation deferred taxation
tax

1 AE-Rotor Holding B.V. EURO 4,030.44 1,590.37 9,391.03 9,391.03 807.50 28.51 (139.94) 6.66 (146.60) - The
Netherlands
2 Cannon Ball Wind Energy USD 0.00 (0.64) 0.72 0.72 - - - - - - USA
Park-1, LLC
3 PowerBlades GmbH EURO 3.96 (8.16) 160.33 160.33 - 339.36 (16.64) 0.01 (16.65) - Germany
4 PowerBlades SA EURO 0.32 16.83 150.26 150.26 - 20.34 8.98 (2.45) 11.43 - Portugal
5 REpower Australia Pty. Ltd. AUD 0.00 (27.87) 34.94 34.94 - 18.67 (12.31) 0.37 (12.68) - Australia
6 REpower Benelux b.v.b.a. EURO 0.16 2.12 3.33 3.33 - 12.76 2.95 1.02 1.93 - Belgium
7 REpower Betriebs – und EURO 0.16 (1.49) 4.34 4.34 0.01 - 0.01 1.24 (1.23) - Germany
Beteiligungs GmbH
8 REpower Systems Inc Can-$ 0.00 (9.85) 39.02 39.02 - 1.05 (7.93) - (7.93) - Canada
9 REpower Diekat S.A. EURO 0.63 (0.58) 0.71 0.71 - - - - - - Greece
10 REpower Espana S.L. EURO 2.18 (3.27) 8.91 8.91 - 0.50 (1.13) - (1.13) - Spain
11 REpower Geothermie GmbH EURO 0.32 (0.81) 1.82 1.82 - - - - - - Germany
12 REpower Investitions - und EURO 0.01 (0.18) 0.27 0.27 - - (0.03) - (0.03) - Germany
Projektierungs GmbH &
Co. KG
13 REpower Italia s.r.l EURO 0.32 10.26 18.56 18.56 - 42.35 9.78 3.97 5.81 - Italy
14 REpower North (China) Ltd. RMB 114.74 (4.27) 205.72 205.72 - 22.29 (6.79) 5.91 (12.70) - PR China
15 REpower S.A.S. EURO 3.49 30.69 70.72 70.72 - 110.31 17.55 8.06 9.49 - France
16 REpower Systems AG EURO 58.48 2,454.55 7,659.36 7,659.36 13.83 6,651.96 113.50 31.05 82.45 91.61 Germany
17 REpower UK Ltd. GBP 0.72 8.64 18.97 18.97 - 53.12 3.05 0.81 2.24 - United
Kingdom
18 REpower USA Corp . USD 1.11 (11.52) 31.45 31.45 - 48.59 (4.79) 0.04 (4.84) - USA
19 REpower Wind Systems RMB 0.32 0.39 0.88 0.88 - 4.09 0.58 0.07 0.51 - PR China
Trading (China) Ltd.
20 REpower Windpark Betriebs EURO 0.16 0.02 0.18 0.18 - - 0.02 0.00 0.02 - Germany
GmbH
21 RETC Renewable Energy EURO 0.16 5.18 7.15 7.15 - - (3.26) (0.00) (3.26) - Germany
Technology Centre
22 SE Composites Limited INR 238.98 (180.60) 1,307.12 1,307.12 - 371.52 (101.38) (2.35) (99.03) - India
23 SE Drive Technik GmbH EURO 0.16 2,806.70 9,495.47 9,495.47 0.10 - (222.86) 0.00 (222.86) - Germany
24 SE Electricals Limited INR 95.90 15.52 441.26 441.26 - 399.71 11.66 3.91 7.75 - India
25 SE Forge Limited INR 241.25 44.25 1,349.27 1,349.27 0.00 357.61 (116.05) - (116.05) - India
26 SE Solar Limited INR 1.00 (1.02) 1.98 1.98 - - (0.00) - (0.00) - India
27 Suzlon Energy Australia AUD 0.00 (0.00) 0.52 0.52 - - (0.00) (0.00) (0.00) - Australia
CYMWFD Pty. Ltd.
28 Suzlon Blade Technology EURO 0.11 (11.68) 218.06 218.06 - 115.22 (4.91) - (4.91) - The
B.V. Netherlands
29 Suzlon Energia Elocia do BRL 1.01 139.59 750.48 750.48 - 1,276.28 37.76 (30.38) 68.14 - Brazil
Brazil Ltda
30 Suzlon Energy (Tianjin) RMB 278.19 63.34 1,224.72 1,224.72 - 839.67 5.45 0.67 4.77 35.31 PR China
Limited
31 Suzlon Energy A/S EURO 120.96 (318.93) 1,405.51 1,405.51 - - (13.73) 1.19 (14.91) - Denmark
32 Suzlon Energy Australia AUD 25.61 (180.63) 1,354.08 1,354.08 - 1,000.01 (116.43) 42.11 (158.54) - Australia
Pty. Ltd.
33 Suzlon Energy B.V. USD 34.24 12.08 719.67 719.67 - - (52.19) - (52.19) - The
Netherlands
34 Suzlon Energy GmbH EURO 0.16 180.25 268.57 268.57 - 112.20 11.57 6.80 4.77 - Germany
35 Suzlon Energy Korea Co., KRW - - 0.40 0.40 - 0.65 (0.65) - (0.65) - South Korea
Ltd.
36 Suzlon Energy Limited EURO 6,618.75 (119.32) 6,624.33 6,624.33 - - 15.31 - 15.31 - Mauritius
37 Suzlon Engitech Limited INR 1.50 (3.59) 116.37 116.37 - 8.33 (4.02) 0.03 (4.05) - India
38 Suzlon Generators Limited INR 34.97 (5.19) 139.18 139.18 15.00 137.80 (16.48) (4.94) (11.54) - India
39 Suzlon Gujarat Wind Park INR 2.00 (33.63) 155.22 155.22 1.19 65.84 (21.96) 0.31 (22.27) - India
Limited
40 Suzlon Infrastructure INR 117.00 135.06 956.87 956.87 20.91 1,213.79 20.70 7.22 13.48 - India
Services Limited
41 Suzlon North Asia Ltd HKD 0.26 (0.22) 0.27 0.27 - - (0.03) - (0.03) - Hong Kong
42 Suzlon Power Infrastructure INR 3.01 (10.90) 275.25 275.25 - 174.13 8.84 - 8.84 - India
Limited
43 Suzlon Rotor Corporation USD 0.00 (42.81) 255.21 255.21 - 51.88 (36.94) - (36.94) - USA
44 Suzlon Structures Limited INR 29.37 32.70 295.59 295.59 26.00 512.38 10.94 0.28 10.66 - India
45 Suzlon Towers and INR 40.00 286.01 792.50 792.50 25.01 968.64 137.65 47.25 90.40 - India
Structures Limited
46 Suzlon Wind Energy A/S EURO 0.87 (230.93) 928.39 928.39 10.75 369.00 (63.64) 1.83 (65.48) - Denmark
47 Suzlon Wind Energy USD 0.00 217.13 1,674.99 1,674.99 - 568.42 61.66 0.71 60.95 - USA
Corporation

Suzlon Energy Limited, Annual Report 2010-2011 105

 (Amount Rs. in crore)
Sr. Name of the Subsidiary Reporting Issued and Reserves Total Total Investments Turnover Profit/ Provision Profit/ Proposed Country
No. Company Currency subscribed assets liabilities (loss) for (loss) dividend
share before taxation & after equity
capital taxation deferred taxation
tax
48 Suzlon Wind Energy RMB 6.97 (12.08) 13.20 13.20 - - (12.08) - (12.08) - PR China
Equipment Trading
(Shanghai) Co., Ltd.
49 Suzlon Wind Energy Espana, EURO 0.02 (20.53) 701.72 701.72 - 78.99 (7.37) - (7.37) - Spain
S.L
50 Suzlon Wind Energy Italy EURO 0.06 0.59 54.47 54.47 - 34.09 (2.96) - (2.96) - Italy
s.r.l.
51 Suzlon Wind Energy Limited EURO 6,063.45 (1.45) 6,063.61 6,063.61 - - (0.08) - (0.08) - United
Kingdom
52 Suzlon Wind Energy EURO 0.00 0.08 17.35 17.35 - 25.59 6.38 - 6.38 - Nicaragua
Nicaragua Sociedad
Anonima
53 Suzlon Wind Energy EURO 14.27 (23.79) 139.70 139.70 - 20.66 (7.51) 1.66 (9.17) - Portugal
Portugal Energia Elocia
Unipessoal Lda
54 Suzlon Wind Energy RON 0.00 1.62 4.59 4.59 - 5.66 0.35 0.06 0.29 - Romania
Romania SRL
55 Suzlon Wind Enerji Sanayi TRY 0.01 (0.20) 11.58 11.58 - 4.33 (0.55) - (0.55) - Turkey
Ve Ticaret Limited Sirketi
56 Suzlon Wind International INR 203.30 654.64 2,543.08 2,543.08 0.00 632.53 20.94 1.42 19.52 - India
Limited
57 Suzlon Windenergie GmbH EURO 0.16 2,191.02 2,198.61 2,198.61 - - - - - - Germany
58 Suzlon Windpark EURO 0.16 (0.07) 0.21 0.21 - - (0.01) - (0.01) - Germany
Management GmbH
59 Tarilo Holding B.V. EURO 0.11 183.96 187.90 187.90 - - (0.09) - (0.09) - The
Netherlands
60 WEL Windenergie Logistik EURO 0.16 4.80 13.49 13.49 - 69.05 3.27 0.31 2.96 - Germany
GmbH
61 Windpark Blockland GmbH EURO (0.05) 3.45 22.13 22.13 - 7.67 4.22 0.74 3.48 - Germany
& Co KG
62 Renewable Energy Contractors AUD 0.00 - 0.00 0.00 - - - - - - Australia
Australia Pty. Ltd.
63 Windpark Olsdorf Watt EURO 0.02 17.55 17.94 17.94 - 1.72 0.54 0.02 0.51 - Germany
Gmbh & Co. KG
64 SISL Green Infra Limited INR 0.05 (0.24) 0.29 0.29 - - (0.03) - (0.03) - India
65 Valum Holding B.V EURO 0.11 (0.14) 11.08 11.08 - - (0.14) - (0.14) - The
Netherlands
66 Suzlon Energy Australia AUD 0.00 (2.07) 4.46 4.46 - - (2.96) (0.89) (2.07) - Australia
RWFD Pty. Ltd
67 Suzlon Wind Energy EURO 0.00 0.34 7.50 7.50 - 3.64 0.34 - 0.34 - Bulgaria
Bulgaria EOOD
68 Suzlon Wind Energy BH BAM 0.00 (0.12) 0.14 0.14 - - (0.13) - (0.13) - Bosnia
69 Age Parque Eolico EL EURO 0.02 - 0.02 0.02 - - - - - - Spain
Almendro S.L.
70 Rep Ventures - Portugal S.A. EURO 0.32 (2.37) 2.62 2.62 - 0.14 (1.57) 0.04 (1.61) - Portugal
71 REpower Systems GmbH EURO 0.16 37.26 51.26 51.26 - 71.84 21.44 0.04 21.41 - Germany
72 RPW Investments SGPS, SA EURO 2.39 274.95 284.79 284.79 - - 15.38 0.00 15.37 - Portugal
73 SURE Power LLC USD - 0.40 10.32 10.32 - - (0.72) - (0.72) - USA
74 Suzlon Wind Energy South ZAR 0.00 2.18 4.44 4.44 - - (1.10) - (1.10) - Africa
Africa (pty) Ltd
75 REpower Systems Polska EURO 0.17 1.37 3.19 3.19 - 2.14 1.74 0.35 1.39 - Poland
Sp.zo.o
76 REpower Systems EURO 0.07 0.32 0.72 0.72 - 1.68 0.41 0.11 0.30 - Sweden
Scandinavia AB
77 REpower Portugal - EURO 0.63 61.55 175.01 175.01 6.53 1.84 0.41 0.10 0.31 - Portugal
Sistemas Eolicos, S.A.
78 Ventipower S.A. EURO 0.32 2.70 131.74 131.74 - 0.07 (2.56) (0.43) (2.13) - Portugal
79 RiaBlades S.A. EURO 0.32 (23.29) 292.01 292.01 - 10.78 (2.86) 0.14 (3.00) - Portugal
0.00 represents amount below Rs. 0.01 crore
Note:
The Exchange rates as on March 31, 2011 - (USD 1.00 = Rs. 44.5950, AUD 1.00 = Rs. 46.1358, DKK 1.00 = Rs. 8.5060, EURO 1.00 = Rs. 63.4275, BRL 1.00 = Rs. 27.3740,
KRW(Korea) 1.00 = Rs. 0.0408, GBP 1.00 = Rs. 71.6932, RMB (China) 1.00 = Rs. 6.8131, TRY 1.00 = Rs. 28.9110, HKD 1.00 = Rs. 5.7305, NIO 1.00 = Rs. 1.9941, RON
1.00 = Rs. 15.4121, Can $ 1.00 = Rs. 46.6945, BAM 1 = 32.2884, ZAR 1 = 6.5648)

For and on behalf of the Board of Directors of Suzlon Energy Limited

Tulsi R. Tanti Vinod R. Tanti
Chairman & Managing Director Executive Director
Hemal A. Kanuga Robin Banerjee
Company Secretary Chief Financial Officer
Place: Pune
Date : July 30, 2011

106 Suzlon Energy Limited, Annual Report 2010-2011

Consolidated
Financial
Statements
Auditor’s Report on Consolidated Financial Statements
To
The Board of Directors of Suzlon Energy Limited

1. We SNK & Co. and S. R. Batliboi & Co. have audited the attached consolidated balance sheet of Suzlon Energy Limited (‘SEL’ or
the ‘Company’) and its subsidiaries as described in Schedule P, Note II (1), its associate as described in Schedule P, Note II (3)
and joint venture as described in Schedule P, Note II (2) (together referred to as the ‘Group’) as at March 31, 2011, and also the
consolidated profit and loss account and the consolidated cash flow statement for the year ended on that date annexed thereto
(“Consolidated Financial Statements”). These Consolidated Financial Statements are the responsibility of SEL’s management and
have been prepared by management on the basis of separate financial statements and other financial information regarding
components. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Consolidated
Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.

3. a) We did not audit the financial statements of certain subsidiaries, whose audited financial statements, reflect Group’s
share of total assets of Rs. 946.27 crores as at March 31, 2011, Group’s share of total revenues of Rs. 1,857.69 crores
and Group’s share of total cash flows of Rs. (16.04) crores for the year then ended. These financial statements and other
financial information have been audited solely by SNK & Co. on which, S. R. Batliboi & Co. has placed reliance for the
purpose of this report.
b) We did not audit the financial statements of certain subsidiaries, whose audited financial statements, reflect Group’s
share of total assets of Rs. 1,188.73 crores as at March 31, 2011, Group’s share of total revenues of Rs. 996.83 crores
and Group’s share of total cash flows of Rs. 10.71 crores for the year then ended. These financial statements and other
financial information have been audited solely by S. R. Batliboi & Co. on which, SNK & Co. has placed reliance for the
purpose of this report.
c) We did not audit the financial statements of certain subsidiaries, whose audited financial statements, reflect Group’s
share of total assets of Rs. 464.30 crores as at March 31, 2011, Group’s share of the total revenue of Rs. 226.01 crores
and Group’s share of total cash flows amounting to Rs. 6.92 crores for the year then ended. These financial statements
and other financial information have been audited by other auditors whose reports have been furnished to us, and our
opinion is based solely on the report of other auditors.
d) We did not audit the financial statements of certain subsidiaries, whose financial statements reflect Group’s share of total
assets of Rs 37,746.78 crores as at March 31, 2011, Group’s share of total revenues of Rs 10,842.24 crore and Group’s
share of total cash flows amounting to Rs 449.75 crores for the period then ended. These financial statements have been
audited by other auditors whose reports have been furnished to us by Management, and our opinion is based solely on the
reports of the other auditors. These other auditors are member firms of Ernst & Young Global in the relevant countries.

4. We did not audit the financial statements of an associate, whose financial statements reflect Group’s share of loss of Rs 27.83
crores for the year then ended. These financial statements have been audited by other auditors whose reports have been
furnished to us by Management, and our opinion is based solely on the reports of the other auditors. These other auditors are
member firms of Ernst & Young Global in the relevant countries.

5. We did not audit the financial statements of certain subsidiaries, whose financial statements, reflect Group’s share of total assets
of Rs. 326.22 crores as at March 31, 2011, Group’s share of total revenues of Rs. 340.96 crores and Group’s share of total cash
flows amounting to Rs. 8.40 crores for the year then ended. These financial statements and other financial information have been
certified by management and our opinion is based solely on these management certified accounts.

6. Without qualifying our opinion, we draw attention to Schedule P, Note 7(c) regarding non-provision of proportionate premium on
redemption of US$ 479.04 Million (Rs. 2,136 crores as at March 31, 2011) Foreign Currency Convertible Bonds amounting to Rs.
579.21 crores which has been considered by the Group as a contingent liability. Since the ultimate outcome of the matter cannot
be presently ascertained, no provision for the above liability that may result in future, has been made in the accompanying
financial statements.

7. Without qualifying our opinion, we draw attention to Schedule P, Note 6 of the consolidated financial statements. The Indian
Wind Energy Association (‘InWEA) of which the Company is a member has filed a civil appeal in the Supreme Court against
an order of the Appellate Tribunal for Electricity in regard to levy of Infrastructure Development Charges by Tamil Nadu State
Electricity Board. The ultimate outcome of this matter cannot be presently ascertained due to it being highly technical and
legalistic in nature. The Group has obtained a legal opinion which states that the InWEA/Group has a strong case and we have
placed reliance on this opinion.

8. We draw attention to Note 5, Schedule P of the consolidated financial statements. During the year ended March 31, 2011, the
Company has recognised deferred tax asset aggregating approximately Rs 55.64 crores on tax losses of Suzlon Energy Limited.
In our opinion, the recognition of deferred tax asset aggregating approximately Rs 55.64 crores does not satisfy the conditions
of virtual certainty prescribed under Accounting Standard – 22, Accounting for Taxes on Income as notified by the Companies
(Accounting Standards) Rules, 2006 (as amended). Had the above-mentioned deferred tax asset not been recognised, the net
loss for the year would have been higher and the deferred tax for the year debited in the profit and loss account would have
been higher by approximately Rs 55.64 crores. Accordingly, the deferred tax asset in the Consolidated Balance Sheet has been
overstated by approximately Rs. 55.64 crores.

108 Suzlon Energy Limited, Annual Report 2010-2011

9. We report that the consolidated financial statements have been prepared by SEL’s management in accordance with the
requirements of Accounting Standards (AS) 21, Consolidated Financial Statements, Accounting Standards (AS) 23, Accounting for
Investments in Associates in Consolidated Financial Statements and Accounting Standard (AS) 27, Financial Reporting of Interests
in Joint Ventures notified pursuant to the Companies (Accounting Standards) Rules, 2006.

10. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial
information of the components, and to the best of our information and according to the explanations given to us, we are of the
opinion that subject to para 8 above, the attached consolidated financial statements give a true and fair view in conformity with
the accounting principles generally accepted in India:

a) in the case of the consolidated balance sheet, of the state of affairs of the Group as at March 31, 2011;
b) in the case of the consolidated profit and loss account, of the loss for the year ended on that date; and
c) in the case of the consolidated cash flow statement, of the cash flows for the year ended on that date.

For SNK & Co For S. R. Batliboi & Co

Firm registration number: 109176W Firm registration number: 301003E
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi

Partner Partner
Membership No 46238 Membership No 89802

Place: Pune Place: Pune

Date: July 30, 2011 Date: July 30, 2011

Suzlon Energy Limited, Annual Report 2010-2011 109

 Consolidated balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars Schedule As at March 31,
2011 2010
SOURCES OF FUNDS
Shareholders’ funds
Share capital A 355.47 311.35
Share application money pending allottment - 0.04
Employee stock options outstanding B 20.43 15.67
Reserves and surplus C 6,149.68 6,274.21
6,525.58 6,601.27
Preference shares issued by subsidiary company 2.50 2.50
Minority interest 306.73 328.48
Loan funds
Secured loans D 9,256.86 8,123.36
Unsecured loans E 3,006.79 4,544.58
12,263.65 12,667.94
Deferred tax liabilities 294.39 182.80
19,392.85 19,782.99
APPLICATION OF FUNDS
Fixed assets (including intangible assets) F
Gross block 12,852.09 11,538.29
Less: Accumulated depreciation / amortisation 1,933.33 1,377.21
Net block 10,918.76 10,161.09
Capital work-in-progress (including advances for capital goods) 419.60 413.04
11,338.36 10,574.13
Investments G 966.89 1,092.29
Deferred tax assets 160.54 86.33
Foreign currency monetary item translation difference account - 253.68
[See Schedule P, Note 11(h)]
Current assets, loans and advances H
Inventories 5,351.56 5,994.30
Sundry debtors 4,236.67 3,174.00
Cash and bank balances 3,121.26 2,904.28
Other current assets 1,678.75 3,017.77
Loans and advances 2,365.80 2,107.82
16,754.04 17,198.17
Less : Current liabilities and provisions I
Current liabilities 8,494.37 8,426.73
Provisions 1,332.61 994.88
9,826.98 9,421.61
Net current assets 6,927.06 7,776.56
19,392.85 19,782.99
Significant accounting policies and notes to P
consolidated financial statements

The schedules referred to above and the notes to accounts form an integral part of the consolidated balance sheet.

As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Director Executive Director
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi Hemal A. Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802

Place: Pune Place: Pune Place: Pune

Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

110 Suzlon Energy Limited, Annual Report 2010-2011

 Consolidated profit and loss account for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars Schedule Year ended March 31,
2011 2010
INCOME

Sales and service income 17,879.13 20,619.66

Other income J 317.70 229.01
18,196.83 20,848.67
EXPENDITURE

Cost of goods sold K 12,454.03 13,628.16

Operating and other expenses L 2,954.20 3,799.63
Employees’ remuneration and benefits M 1,676.44 2,145.41
Financial charges N 1,333.10 1,457.99
Depreciation / amortisation (including impairment losses) F 657.40 662.97
19,075.17 21,694.16
LOSS BEFORE TAX AND EXCEPTIONAL ITEMS (878.34) (845.49)

Less/(add) : Exceptional items [See Schedule P, Note 4] O 253.28 (211.89)

LOSS BEFORE TAX (1,131.62) (633.60)

Current tax 164.95 183.23

MAT credit entitlement (0.47) (1.59)
Earlier year tax (17.58) 0.01
Deferred tax [See Schedule P, Note 5] 38.37 174.45
Fringe benefit tax - 0.03

LOSS AFTER TAX (1,316.89) (989.73)

Add : Share in associate’s profit/(loss) after tax (27.83) 16.12

Less: Share of loss/(profit) of minority 20.75 (8.95)

NET LOSS (1,323.97) (982.56)

Balance brought forward 943.03 1,925.60

PROFIT AVAILABLE FOR APPROPRIATIONS (380.94) 943.04

APPROPRIATIONS
Tax on dividends - 0.01
Transfer to legal and statutory reserve 142.22 -
Transfer to capital redemption reserve 30.00 -

Surplus carried to balance sheet (553.16) 943.03

Earnings/ (loss) per share (in Rs) [See Schedule P, Note 17]
- Basic and diluted [Nominal value of share Rs 2] (7.77) (6.39)

The schedules referred to above and the notes to accounts form an integral part of the consolidated profit and loss account.

As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Director Executive Director
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi Hemal A. Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802

Place: Pune Place: Pune Place: Pune

Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

Suzlon Energy Limited, Annual Report 2010-2011 111

 Consolidated cash flow statement for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars Year ended March 31,
2011 2010
CASH FLOW FROM OPERATING ACTIVITIES
Profit/ (loss) before tax and exceptional items (878.34) (845.49)

Adjustments for:
Depreciation / amortisation (including impairment losses) 657.40 662.97
(Profit)/ loss on assets sold / discarded, net 6.68 (8.80)
(Profit)/ loss on sale of investments, net 0.01 -
Interest income (102.78) (69.40)
Interest expenses 1,135.67 1,195.03
Dividend income (3.82) (0.06)
Provision for operation, maintenance and warranty 124.62 528.72
Provision for performance guarantee 179.63 203.32
Provision for liquidated damages 58.10 215.05
Bad debts written off 4.87 8.25
Provision for doubtful debts and advances 76.28 47.34
Adjustments for consolidation (79.80) 470.88
Exchange differences, net 6.38 74.43
Employee stock option scheme 12.56 10.72
Wealth-tax* - 0.03

Operating profit/ (loss) before working capital changes 1,197.46 2,492.99

Movements in working capital

(Increase) / decrease in sundry debtors and unbilled revenue 271.18 1,225.19
(Increase) / decrease in inventories 793.78 6.43
(Increase) / decrease in loans and advances (374.74) 697.18
(Increase) / decrease in margin money deposits (270.34) 69.01
Increase / (decrease) in current liabilities and provisions (345.73) (2,037.13)
Cash (used in) from operations 1,271.61 2,453.67
Direct taxes paid (net of refunds) (57.48) (219.37)

Net cash (used in) / generated from operating activities 1,214.13 2,234.30

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (822.74) (1,090.57)
Proceeds from sale of fixed assets 124.25 66.48
Paid for acquisition of subsidiaries (273.61) (1,423.70)
Proceeds on sale of stake in subsidiary - 1,672.51
Purchase of investments (46.61) (101.80)
Inter-corporate deposits repaid / (granted) 97.93 (35.76)
Interest received 89.31 67.85
Dividend received 3.82 0.06

Net cash (used in) / generated from investing activities (827.65) (844.93)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Issuance of Global Depository Receipts - 522.97
Proceeds from issuance of share capital including premium, under stock option scheme - 0.12
Proceeds from issuance of convertible bonds - 452.64
Proceeds from rights issue 1.01 -
Proceeds from long term borrowings 1,599.00 6,117.74
Payment towards buy-back of convertible bonds - (200.13)
Repayment of long term borrowings (151.15) (3,882.82)
Proceeds / (repayment) from short term borrowings, net (726.00) (2,099.99)
Expenses incurred towards restructuring and refinancing of financial facilities (37.28) (231.37)
(disclosed under exceptional items)

112 Suzlon Energy Limited, Annual Report 2010-2011

 Consolidated cash flow statement for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars Year ended March 31,
2011 2010
Convertible bond and share issue expenses (9.30) (16.38)
Share application money received - 0.04
Share application money refunded - (95.00)
Interest paid (1,132.28) (1,221.19)
Dividend paid (8.41) -
Tax on dividend paid - (1.26)

Net cash (used in) / generated from financing activities (464.41) (654.63)

NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS (77.93) 734.74

Add: Cash and bank balances taken over on acquisition of subsidiary 22.53 48.50
(Less): Cash and bank balances on sale of stake in subsidiary - (876.73)
Add/(less): Effect of exchange difference on cash and cash equivalents 2.04 (3.06)
Total (53.36) (96.55)
Cash and cash equivalents at the beginning of the year 2,739.32 2,835.87
Cash and cash equivalents at the end of the year 2,685.96 2,739.32

Components of cash and cash equivalents As at March 31,

2011 2010
Cash and cheques on hand 67.24 10.99
With scheduled and non scheduled banks
in current account** 2,548.96 1,501.23
in margin account 435.30 180.45
in term deposit accounts 69.76 1,211.61
less: in margin money deposits (435.30) (164.96)
2,685.96 2,739.32

Notes
1 The figures in brackets represent outflows.
2 Previous period’s figures have been regrouped / reclassified, whereever necessary to confirm to current year presentation.
* Amount below Rs 0.01 crore
** Includes a balance of Rs. 0.19 crore (Rs. 0.19 crore) not available for use by the Group as they represent corresponding unpaid
dividend liabilities.

As per our report of even date For and on behalf of the Board of Directors of
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Director Executive Director
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi Hemal A. Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802

Place: Pune Place: Pune Place: Pune

Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

Suzlon Energy Limited, Annual Report 2010-2011 113

 Schedules to the consolidated balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars As at March 31,
2011 2010
SCHEDULE - A : SHARE CAPITAL

Authorised
3,500,000,000 (2,225,000,000) equity shares of Rs 2/- each 700.00 445.00
700.00 445.00
Issued

Equity
1,796,297,624 (1,556,731,743) equity shares of Rs 2/- each fully paid-up 359.26 311.35

Subscribed and paid up

Equity
1,777,365,647 (1,556,731,743) equity shares of Rs 2/- each fully paid-up 355.47 311.35

[Of the above equity shares, 1,259,276,500 (1,259,276,500) shares of Rs 2/- each
were allotted as fully paid bonus shares by utilisation of Rs 174.04 crore (Rs 174.04
crore) from general reserve, Rs 1.03 crore (Rs 1.03 crore) from capital redemption
reserve and Rs 76.80 crore (Rs 76.80 crore) from securities premium account]

[Of the above equity shares 58,400,000 (Nil) equity shares of Rs 2/- each were issued
by way of Global Depository Receipts (GDR)]

[Of the above equity shares 31,992,582 (Nil) equity shares of Rs 2/- each are alloted
as fully paid up for consideration other than cash] [See Schedule P, Note 11(d)]

[Outstanding Employee stock options exercisable into 5,679,945 (635,250) equity

shares of Rs 2/- each fully paid] [See Schedule P, Note 10]
355.47 311.35

SCHEDULE - B : EMPLOYEE STOCK OPTIONS OUTSTANDING

Employee stock options outstanding 23.46 29.77

Less : Deferred employee compensation outstanding 3.03 14.10
20.43 15.67

SCHEDULE - C : RESERVES AND SURPLUS

Capital redemption reserve

As per last balance sheet 15.00 15.00
Add : Transfer from profit and loss account 30.00 -
45.00 15.00

Unrealised gain on dilution

As per last balance sheet 295.13 1,402.93
Less : Deduction on account increase in stake in subsidiary [See Schedule P, Note 11 (d)] 135.46 -
Less : Deduction on account of sale of subsidiary - 1,107.80
159.67 295.13

Securities premium account

As per last balance sheet 3,979.09 3,465.18
Add : Additions during the year 1,336.30 530.29
5,315.39 3,995.47
Less : Expenses on issue of right shares 9.30 -
Expenses on issue of global depository receipts - 11.07
Expenses on issue of bonds/ debentures - 5.31
5,306.09 3,979.09
General reserve
As per last balance sheet 950.50 953.92
Less : Deduction on account of sale of subsidiary - 3.42
950.50 950.50

114 Suzlon Energy Limited, Annual Report 2010-2011

 Schedules to the consolidated balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars As at March 31,
2011 2010
SCHEDULE - C : RESERVES AND SURPLUS (Contd.)

Capital reserve on consolidation 0.03 0.03

Legal and statutory reserve 142.22 -
Minority share of losses (37.84) -

Foreign currency translation reserve

(Exchange differences during the year on net investment in non-integral operations)
As per last balance sheet 91.43 458.98
Movement during the year 45.74 (367.55)
137.17 91.43

Profit and loss account (553.16) 943.03

6,149.68 6,274.21

SCHEDULE - D : SECURED LOANS [See Schedule P, Note 8]

Term loans
From banks and financial institutions 7,252.25 5,843.65
From others 5.64 11.54

7,257.89 5,855.19

Working capital facilities from banks and financial institutions 1,996.71 2,265.43

Vehicle loans 2.26 2.74

9,256.86 8,123.36

SCHEDULE - E : UNSECURED LOANS

Long-term
Foreign currency convertible bonds [See Schedule P, Note 7] 2,136.27 2,150.89
Capital from profit participation rights [See Schedule P, Note 11 (g)] 63.43 60.54
From banks and financial institutions 64.24 71.89
From others 153.47 1,189.58

2,417.41 3,472.90

Short-term
From banks and financial institutions 589.32 666.34
From others 0.06 405.34

589.38 1,071.68
3,006.79 4,544.58

Suzlon Energy Limited, Annual Report 2010-2011 115

 Schedules to the consolidated balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated
SCHEDULE - F : FIXED ASSETS (INCLUDING INTANGIBLE ASSETS)
Assets Gross block Depreciation / amortisation Net block
As at Additions Acquisition Sale of Translation Deductions / As at As at For the Acquisition Sale of Translation Deductions / As at As at As at
April 1, subsidiary adjustment adjustments March 31, April 1, period subsidiary adjustment adjustments March 31, March 31, March 31,
2010 2011 2010 2011 2011 2010
Goodwill on 6,104.65 221.13 - - 290.53 - 6,616.31 - - - - - - - 6,616.31 6,104.65
consolidation
Freehold land 129.24 9.74 - - 0.75 - 139.73 - - - - - - - 139.73 129.24
Leasehold land 57.60 1.54 - - 0.61 - 59.75 3.82 1.51 - - 0.05 - 5.38 54.37 53.78
Buildings 1,488.52 48.61 181.13 - 25.03 2.78 1,740.51 184.97 91.71 - - 1.86 0.75 277.79 1,462.72 1,303.56
Site development 105.25 - - - - - 105.25 8.50 4.14 - - - - 12.64 92.61 96.75
Plant and 2,299.62 402.61 0.83 - 30.71 230.93 2,502.84 677.88 284.78 - - 8.84 59.35 912.15 1,590.69 1,621.74
machinery
Wind research 36.89 22.97 - - - 3.01 56.85 19.41 11.45 - - - 3.30 27.56 29.29 17.48
and measuring
equipments
Computer and 262.65 33.92 - - 5.02 27.45 274.14 95.34 44.95 - - 1.76 5.42 136.63 137.51 167.31
office equipments
Furniture and 431.80 95.56 25.27 - 14.11 22.98 543.76 193.43 73.46 - - 7.10 27.04 246.95 296.81 238.37
fixtures

116
Vehicles 25.91 1.23 - - 1.03 0.85 27.32 11.66 3.53 - - 0.22 0.49 14.92 12.40 14.25
Intangible assets
Designs and 332.35 183.09 0.01 - 13.14 20.54 508.05 106.33 86.11 - - 2.92 20.77 174.59 333.46 226.02
drawings
SAP and other 263.81 11.99 - - 7.33 5.55 277.58 75.87 47.92 - - 3.02 2.09 124.72 152.86 187.94
software
11,538.29 1,032.39 207.24 - 388.26 314.09 12,852.09 1,377.21 649.56 - - 25.77 119.21 1,933.33 10,918.76 10,161.09
Capital work-in- 419.60 413.04
progress
TOTAL 11,538.29 1,032.39 207.24 - 388.26 314.09 12,852.09 1,377.21 649.56 - - 25.77 119.21 1,933.33 11,338.36 10,574.13
Previous year 15,102.40 3,095.87 34.86 5,599.24 (978.97) 116.62 11,538.29 1,821.00 674.47 7.58 1,025.01 (41.89) 58.94 1,377.21 10,161.09
Notes:
1. Depreciation charge for the current year amounting to Rs 649.56 crore ( Rs 674.47 crore) includes Rs Nil (Rs 11.49 crore) which has been capitalised as part of self manufactured assets.
The depreciation charged in the profit and loss account amounting to Rs 657.40 crore (Rs 662.97 crore) is net of the amount capitalised and includes Rs 7.84 crore (Rs Nil) for depreciation charged on capital work in progress.
2. Capital work in progress includes advances for capital goods Rs 6.80 crore (Rs 20.45 crore).
3. Additions to gross block and depreciation charge for the current year includes balances taken over on account of acquisition of 50% stake of REpower Portugal - Sistemas Eolicos, S.A by REpower Systems AG which
amounts to Rs 207.24 crore and Rs Nil respectively. [Also see Schedule P, Note 1 (a)]
4. Deductions to gross block and depreciation fund for the previous year is on account of sale of stake in Hansen Transmissions International NV. on November 24, 2009 which amounts to Rs 5,599.24 crore and Rs
1,025.01 crore respectively.
5. Gross block and Depreciation fund includes Rs 57.13 crore each (Rs Nil) towards assets of one subsidiary which is held for sale.
6. Borrowing cost amounting to Rs.Nil (Rs. 11.21 crore) have been capitalised to qualifying assets.
7. The depreciation charge for the year includes impairment losses of Rs. 50.77 crore (Rs Nil).

Suzlon Energy Limited, Annual Report 2010-2011

 Schedules to the consolidated balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars As at March 31,
2011 2010
SCHEDULE - G : INVESTMENTS

LONG-TERM INVESTMENTS

In associates [See Schedule P, Note 3 and 4(a)]

Cost of Investment 1,050.71 969.29
Add: Share of post acquistion profit (27.83) 16.12
1,022.88 985.41
Less : Provision for dimunition in investments 216.00 -
Net investment in associates 806.88 985.41

Others (at cost, fully paid)

Government and other securities (non trade) 0.02 0.02
Other non trade investments 21.75 6.85
21.77 6.87
828.65 992.28

CURRENT INVESTMENTS

Investment in mutual funds (Quoted and at lower of cost and market value) 138.24 100.01
138.24 100.01
966.89 1,092.29

SCHEDULE - H : CURRENT ASSETS, LOANS AND ADVANCES

Current assets
Inventories
Raw materials 2,744.85 2,831.80
Semi finished goods, finished goods, work-in-progress and project work-in-progress 2,378.23 2,989.39
Land and land lease rights 72.59 38.50
Stores and spares 155.89 134.61

5,351.56 5,994.30
Sundry debtors

Outstanding for a period exceeding six months

Considered good 1,793.98 795.54
Considered doubtful 109.51 75.94
1,903.49 871.48
Others, considered good 2,442.69 2,378.46
4,346.18 3,249.94
Less: Provision for doubtful debts 109.51 75.94
4,236.67 3,174.00
Cash and bank balances
Cash on hand 0.89 1.15
Cheques on hand 66.35 9.84
Balances with scheduled banks
in current accounts 186.45 729.85
in margin accounts 353.47 172.43
in term deposit accounts 39.10 70.61
Balances with non scheduled banks
in current accounts 2,362.51 771.38
in margin accounts 81.83 8.02
in term deposit accounts 30.66 1,141.00
3,121.26 2,904.28

Suzlon Energy Limited, Annual Report 2010-2011 117

 Schedules to the consolidated balance sheet as at March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars As at March 31,
2011 2010
Other current assets
(Unsecured and considered good)
Due from customers 1,678.75 3,017.77
1,678.75 3,017.77

Loans and advances

(Unsecured and considered good, except otherwise stated)
Deposits
with customers as security deposit 13.55 13.56
with others 170.64 155.12

Advance against taxes, net 41.78 102.62

MAT credit entitlement 166.59 152.71

Inter corporate deposits 54.08 152.01

Advances recoverable in cash or in kind or for value to be received
Considered good 1,919.16 1,531.80
Considered doubtful 18.20 9.60
1,937.36 1,541.40
Less: Provision for doubtful loans and advances 18.20 9.60
1,919.16 1,531.80
2,365.80 2,107.82
16,754.04 17,198.17

SCHEDULE - I : CURRENT LIABILITIES AND PROVISIONS

Current liabilities
Sundry creditors 4,536.85 3,942.31
Other current liabilities 1,202.85 1,236.42
Interest accrued but not due 26.92 28.93
Due to customers 157.08 483.85
Advances from customers 2,570.67 2,735.22
8,494.37 8,426.73
Provisions
Provision for taxes, net 41.89 -
Gratuity, superannuation, leave encashment and other employee benefits 59.83 50.62
Performance guarantee, operation, maintenance and warranty and liquidated damages 1,230.89 944.26
1,332.61 994.88
9,826.98 9,421.61

118 Suzlon Energy Limited, Annual Report 2010-2011

 Schedules to the consolidated profit and loss account for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars Year ended March 31,
2011 2010
SCHEDULE - J : OTHER INCOME

Interest income
From banks 43.49 37.09
From others 59.29 32.31

Dividend income 3.82 0.06

Other operating income 211.10 159.55

317.70 229.01

SCHEDULE - K : COST OF GOODS SOLD

Raw materials consumed, including project business

Opening stock 2,831.80 3,811.20
Add : Purchases, including purchases for project business 11,785.13 12,435.55
14,616.93 16,246.75
Less : Closing stock 2,744.85 2,831.80
(A) 11,872.08 13,414.95

Trading purchases (B) 4.88 47.75

(Increase)/ Decrease in stock

Opening balance:
Semi finished goods, finished goods, work-in-progress and project work-in-progress 2,989.39 3,159.78
Land and land lease rights 38.50 33.57
(C) 3,027.89 3,193.35
Closing balance:
Semi finished goods, finished goods, work-in-progress and project work-in-progress 2,378.23 2,989.39
Land and land lease rights 72.59 38.50
(D) 2,450.82 3,027.89
(Increase)/Decrease in stock (E) = (C)-(D) 577.07 165.46
(A)+(B)+(E) 12,454.03 13,628.16

SCHEDULE - L : OPERATING AND OTHER EXPENSES

Stores and spares 85.53 201.10

Power and fuel 66.42 84.86
Factory expenses 61.54 62.97
Repairs and maintenance:
Plant and machinery 34.79 18.42
Building 12.44 7.86
Others 12.38 8.23
Operation and maintenance charges 223.52 132.45
Design change and technological upgradation charges 69.66 95.48
Rent 124.99 154.65
Rates and taxes 13.90 38.28
Provision for operation, maintenance and warranty 124.62 528.72
Provision for performance guarantee 179.63 203.32
Provision for liquidated damages 58.10 215.05
Quality assurance expenses 106.70 60.52
R & D, certification and product development 135.81 115.85
Insurance 31.05 68.51
Advertisement and sales promotion 70.73 76.81
Infrastructure development expenses 23.78 25.01
Freight outward and packing expenses 587.79 680.63
Sales commission 5.12 7.81
Travelling, conveyance and vehicle expenses 204.19 255.41

Suzlon Energy Limited, Annual Report 2010-2011 119

 Schedules to the consolidated profit and loss account for the year ended March 31, 2011
All amounts in rupees crore unless otherwise stated
Particulars Year ended March 31,
2011 2010
Communication expenses 63.26 86.15
Auditors’ remuneration and expenses 9.21 19.70
Consultancy charges 313.47 339.54
CSR, charity and donations 19.65 11.38
Other selling and administrative expenses 250.94 296.84
Exchange differences, net (22.86) (42.71)
Bad debts written off 4.87 8.25
Loss/(profit) on sale of investment 0.01 -
Provision for doubtful debts and advances 76.28 47.34
Loss/(profit) on assets sold / discarded, net 6.68 (8.80)
2,954.20 3,799.63

SCHEDULE - M : EMPLOYEES’ REMUNERATION AND BENEFITS

Salaries, wages, allowances and bonus 1,424.42 1,906.41

Contribution to funds 178.33 166.66
Staff welfare expenses 73.69 72.34
1,676.44 2,145.41

SCHEDULE - N : FINANCIAL CHARGES

Interest
Fixed loans 811.95 420.60
Debentures - 31.96
Others 323.72 742.47

Bank charges 197.43 262.96

1,333.10 1,457.99

SCHEDULE - O : EXCEPTIONAL ITEMS [See Schedule P, Note 4]

Provision towards dimunition in investments 216.00 -

Gain on restructuring and refinancing of financial facilities (net) 37.28 (122.27)
Foreign exchange loss on the convertible bonds - 162.34
Profit on sale of stake in subsidiary - (251.96)
253.28 (211.89)

120 Suzlon Energy Limited, Annual Report 2010-2011

SCHEDULE P: SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in rupees crore unless otherwise stated)
I SIGNIFICANT ACCOUNTING POLICIES
a) Basis of accounting
The consolidated financial statements comprise the financial statements of Suzlon Energy Limited (‘SEL’ or ‘the Company’)
and its subsidiaries, associates and joint venture (together referred to as ‘Suzlon’ or ‘the Group’). The consolidated
financial statements are prepared under the historical cost convention, on accrual basis of accounting except in case of
assets for which provision for impairment is made and revaluation is carried out to comply in all material respects, with
the mandatory accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended ('the
Rules') and the relevant provisions of the Companies Act, 1956 (‘the Act’). The accounting policies have been consistently
applied by the Group; and the accounting policies not referred to otherwise, are in conformity with Indian Generally
Accepted Accounting Principles (‘Indian GAAP’).
b) Principles of consolidation
The consolidated financial statements of the Group are prepared in accordance with Accounting Standard 21 –
‘Consolidated Financial Statements’, Accounting Standard 23 – ‘Accounting for Investments in Associates in Consolidated
Financial Statements’ and Accounting Standard 27 – ‘Financial Reporting of Interests in Joint Ventures’ as notified by the
Rules.
The consolidated financial statements are presented, to the extent possible, in the same format as that adopted by the
Company for its independent financial statements.
Subsidiaries
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue
to be consolidated until the date that such control ceases.
The financial statements of the Company and its subsidiaries have been combined on a line-by-line basis by adding together
the book values of like items of assets, liabilities, income and expenses, after eliminating intra group balances and intra group
transactions. The unrealised profits or losses resulting from the intra group transactions and intra group balances have been
eliminated.
The excess of the cost to the Company of its investment in the subsidiaries over the Company's portion of equity on the acquisition
date is recognised in the financial statements as goodwill and is tested for impairment annually. The excess of Company’s portion
of equity of the Subsidiary over the cost of investment therein is treated as Capital Reserve. The Company’s portion of the equity
in the subsidiaries at the date of acquisition is determined after realigning the material accounting policies of the subsidiaries to
that of the parent and the charge/(reversal) on account of realignment is adjusted to the accumulated reserves and surplus of
the subsidiaries at the date of acquisition.
The consolidated financial statements are prepared using uniform accounting policies for like transactions and events in similar
circumstances and necessary adjustments required for deviations, if any to the extent possible unless otherwise stated, are
made in the consolidated financial statements and are presented in the same manner as the Company’s standalone financial
statements.
Share of minority interest in the net profit is adjusted against the income to arrive at the net income attributable to shareholders
of the parent Company. Minority interest’s share of net assets is presented separately in the balance sheet.
If the losses attributable to the minority in a consolidated subsidiary exceed the minority's share in equity of the subsidiary, then
the excess, and any further losses applicable to the minority, are adjusted against the Group's interest except to the extent that
the minority has a binding obligation to, and is able to, make good the losses. If the subsidiary subsequently reports profits, all
such profits are allocated to the Group's interest until the minority’s share of losses previously absorbed by the Group has been
adjusted.
A change in the ownership interest of a subsidiary, without a loss of control is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it:
a) derecognises the assets (including goodwill) and liabilities of the subsidiary;
b) derecognises the carrying amount of any minority interest;
c) derecognises the cumulative translation differences, recorded in foreign currency translation reserve;
d) recognises the value of the consideration received;
e) recognises the value of any investment retained;
f) recognises any surplus or deficit in profit or losses;
Associates
The Group’s investment in its associate is accounted for using the equity method. An associate is an entity in which the Group has
significant influence.
Under the equity method, the investment in the associate is carried in the balance sheet at cost plus post acquisition changes
in the Group’s share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the
investment and is neither amortised nor individually tested for impairment. The profit and loss account reflects the share of
the results of operations of the associate. Unrealised gains and losses resulting from transactions between the Group and the
associate are eliminated to the extent of the interest in the associate.

Suzlon Energy Limited, Annual Report 2010-2011 121

 After application of the equity method, the Group determines whether it is necessary to recognise decline, other than
temporary, in the value of the Group’s investment in its associates. The Group determines at each reporting date whether there
is any objective evidence that the investment in the associate is impaired. If this is the case the Group calculates the amount of
provision for diminution as the difference between the recoverable amount of the associate and its carrying value and recognises
the amount in the profit and loss account.
Joint Venture
The Group recognises its interest in the joint venture using the proportionate consolidation method as per Accounting Standard
27 – Financial Reporting of Interests in Joint Ventures as notified by the Rules. The Group combines its proportionate share of
each of the assets, liabilities, income and expenses of the joint venture with similar items, line by line, in its consolidated financial
statements.
c) Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and
assumptions that may affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities
as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period.
Although these estimates are based upon management’s best knowledge of current events and actions, actual results
could differ from these estimates.
d) Revenue recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and that the revenue
can be reliably measured. Revenue comprises of sale of goods and services and is disclosed, net of discounts, excise duty,
sales tax, service tax, VAT or other taxes, as applicable.
Sales
Revenue from sale of goods is recognised in the profit and loss account when the significant risks and rewards in respect of
ownership of goods has been transferred to the buyer as per the terms of the respective sales order, and the income can be
measured reliably and is expected to be received.
Fixed price contracts to deliver wind power systems (turnkey and projects involving installation and/or commissioning apart
from supply) are recognised in revenue based on the stage of completion of the individual contract using the percentage-of
completion method, provided the order outcome as well as expected total costs can be reliably estimated. Where the profit
from a contract cannot be estimated reliably, revenue is only recognised equalling the expenses incurred to the extent that it is
probable that the expenses will be recovered.
Due from customers, if any are measured at the selling price of the work performed based on the stage of completion less
interim billing and expected losses. The stage of completion is measured by the proportion that the contract expenses incurred
to date bear to the estimated total contract expenses. The value of self-constructed components is recognised in 'Contracts in
progress' upon dispatch of the complete set of components which are specifically identified for a customer and are within the
scope of supply, as per the terms of the respective sale order for the wind power systems. Where it is probable that total contract
expenses will exceed total revenues from a contract, the expected loss is recognised immediately as an expense in the profit and
loss account.
Where the selling price of a contract cannot be estimated reliably, the selling price is measured only on the expenses incurred
to the extent that it is probable that these expenses will be recovered. Prepayments from customers are recognised as
liabilities. A contract in progress for which the selling price of the work performed exceeds interim billings and expected losses
is recognised as an asset. Contracts in progress for which interim billings and expected losses exceed the selling price are
recognised as a liability. Expenses relating to sales work and the winning of contracts are recognised in the income statement
as incurred.
Project execution income
Revenue from services relating to project execution is recognised on completion of the respective service, as per the terms of
respective sales order.
Power generation income
Power generation income is recognised based on electrical units generated and sold, net of wheeling and transmission loss, as
applicable, as disclosed in the power generation reports issued by the concerned authorities.
Service and maintenance income
Revenue from annual service and maintenance contracts is recognised on a proportionate basis during the period in which the
service is provided, net of taxes.
Interest income
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. In
case of interest charged to customers, interest is accounted for on availability of documentary evidence that the customer has
accepted the liability.
Dividend income
Dividend income from investments is recognised when the right to receive payment is established.
Royalty and license income
Royalty and license income is recognised on accrual basis in accordance with the terms of the relevant agreements.

122 Suzlon Energy Limited, Annual Report 2010-2011

 e) Fixed assets and intangible assets
Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost includes purchase price
and all expenditure necessary to bring the asset to its working condition for its intended use. Own manufactured assets
are capitalised inclusive of all direct costs and attributable overheads. Capital work-in-progress comprises of advances
paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use as at the balance sheet
date. In the case of new undertakings, pre-operative expenses are capitalized upon the commencement of commercial
production. Assets held for disposal are stated at the lower of net book value and the estimated net realisable value.
In respect of accounting periods commencing on or after December 7, 2006, exchange differences arising on reporting
of the long-term foreign currency monetary items at rates different from those that at which they were initially recorded
during the period, or reported in the previous financial statements are added to or deducted from the cost of the asset
and are depreciated over the balance life of the asset, if these monetary items pertain to the acquisition of a depreciable
fixed asset.
Intangible assets are recorded at the consideration paid for their acquisition. Cost of an internally generated asset
comprises all expenditure that can be directly attributed, or allocated on a reasonable and consistent basis, to create
produce and make the asset ready for its intended use. Development cost incurred on an individual project is carried
forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is
amortised over the period of expected future sales from the related project, not exceeding five years. The carrying value
of development costs is reviewed for impairment annually when the asset is not in use, and otherwise when events and
changes in circumstances indicate that the carrying value may not be recoverable.
The carrying amount of the assets belonging to each cash generating unit (CGU) are reviewed at each balance sheet date
to assess whether the same are recorded in excess of their recoverable amounts and where carrying amounts exceed
the recoverable amount of the assets with CGU, assets are written down to their recoverable amount. The recoverable
amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. The impairment loss recognised in prior accounting period is reversed
if there has been a change in estimates of recoverable amount. The carrying value after reversal is not increased beyond
the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
f) Depreciation and amortisation
Depreciation is provided on the written down value method (‘WDV’) and is based on management’s estimate of useful
lives of the fixed assets or where applicable, at rates specified by respective statutes, whichever is higher. Intangible assets
are amortised on a straight line basis over a period of five years.
Some of the subsidiaries of the Group provide depreciation on straight-line method (‘SLM’).
g) Inventories
Inventories of raw materials including stores; spares and consumables; packing materials; semi-finished goods; work-in-
progress, project work-in-progress and finished goods are valued at the lower of cost and estimated net realisable value.
Cost is determined on weighted average basis.
The cost of work-in-progress, project work-in-progress, semi-finished goods and finished goods includes the cost of
material, labour and manufacturing overheads.
Stock of land and land lease rights is valued at lower of cost and estimated net realisable value. Cost is determined on
weighted average basis. Net realisable value is determined by management using technical estimates.
h) Investments
Investments that are readily realisable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long term investments. Current investments are carried at the lower
of cost and fair value, determined on an individual basis.
Long-term investments other than in associates are carried at cost. However, provision is made to recognise a decline,
other than temporary, in the value of long term investments. Investments in associates are accounted for using the equity
method.
i) Foreign currency transactions
Transactions in foreign currencies are recorded at the average exchange rate prevailing in the period during which the
transactions occur.
Outstanding balances of, foreign currency monetary items are reported using the period end rates.
Pursuant to the notification of the Companies (Accounting Standards) Amendment Rules 2009 issued by Ministry of
Corporate Affairs on March 31, 2009 amending Accounting Standard – 11 (AS - 11) ‘The Effects of Changes in Foreign
Exchange Rates (revised 2003), exchange differences in respect of accounting periods commencing on or after December
7, 2006, relating to long term monetary items are dealt with in the following manner:
a) Exchange differences relating to long term foreign currency monetary items, arising during the year, in so far as
they relate to the acquisition of a depreciable capital asset are added to / deducted from the cost of the asset and
depreciated/recovered over the balance life of the asset.
b) In other cases, such differences are accumulated in the “Foreign Currency Monetary Item Translation Difference
Account” and amortised to the profit and loss account over the balance life of the long term monetary item but
not beyond March 31, 2012.

Suzlon Energy Limited, Annual Report 2010-2011 123

 All other exchange differences are recognised as income or expense in the profit and loss account.
Non-monetary items carried in terms of historical cost denominated in a foreign currency are reported using the exchange
rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation
denominated in a foreign currency are reported using the exchange rate that existed, when the values were determined.
Exchange differences arising as a result of the above are recognised as income or expense in the profit and loss account.
Derivatives
In case of forward contracts, the difference between the forward rate and the exchange rate, being the premium or
discount, at the inception of a forward exchange contract is recognised as income/expense over the life of the contract.
Exchange differences on such contracts are recognised in the profit and loss account in the reporting period in which the
rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income
or as expense for the period.
As per the Institute of Chartered Accountants of India (‘ICAI’) announcement, accounting for derivative contracts, other
than those covered under AS-11, are marked to market on a portfolio basis and the net loss after considering the offsetting
effect on the underlying hedge items is charged to the profit and loss account. Net gains on marked to market basis are
not recognised.
Foreign operations
The financial statements of integral foreign operations are translated as if the transactions of the foreign operations have
been those of the Company itself.
In translating the financial statements of a non-integral foreign operation, the assets and liabilities, both monetary and
non-monetary, are translated at the closing rate; income and expense items are translated at average exchange rates
prevailing during the year and all resulting exchange differences are accumulated in a foreign currency translation reserve
until the disposal of the net investment in the non-integral foreign operation.
On the disposal of a non-integral foreign operation, the cumulative amount of the exchange differences which have been
deferred and which relate to that operation are recognised as income or as expenses in the same period in which the gain
or loss on disposal is recognised.
When there is a change in the classification of a foreign operation, the translation procedures applicable to the revised
classification are applied from the date of the change in classification.
j) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to
get ready for intended use. Costs incurred in raising funds are amortised equally over the period for which the funds are
acquired. All other borrowing costs are charged to profit and loss account.
k) Retirement and other employee benefits
Employee benefits in the nature of defined contributions are charged to the profit and loss account of the year when the
contributions to the respective funds are due. There are no other obligations other than the contribution payable to the
respective statutory authorities.
Retirement benefits in the form of gratuity and pension are defined benefit obligations, and are provided for on the basis
of an actuarial valuation, using projected unit credit method as at each balance sheet date.
Short-term compensated absences are provided based on estimates. Long term compensated absences and other long-
term employee benefits are provided based for on the basis of an actuarial valuation, using projected unit credit method,
as at each balance sheet date.
Actuarial gains/losses are taken to profit and loss account and are not deferred.
l) Provisions, contingent liabilities and contingent assets
A provision is recognised when the Group has a present obligation as a result of past events and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to their present value and are determined based on the best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed by way of notes to accounts unless the possibility of an outflow is remote.
Contingent assets are not recognised or disclosed.
m) Taxes on income
Tax expense for a year comprises of current tax and deferred tax.
Current tax is measured at the amount expected to be paid to the tax authorities, after taking into consideration, the
applicable deductions and exemptions admissible under the applicable tax laws.
Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the
year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities across various

124 Suzlon Energy Limited, Annual Report 2010-2011

 companies of operation are not set off against each other as the Group does not have a legal right to do so. All deferred
tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised. If there is unabsorbed depreciation or carry forward of
losses under tax laws, all deferred tax assets are recognised only to the extent that there is virtual certainty supported by
convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be
realised.
Deferred tax resulting from timing differences which originate during the tax holiday period but are expected to reverse
after such tax holiday period is recognised in the year in which the timing differences originate using the tax rates and laws
enacted or substantively enacted at the balance sheet date.
At each balance sheet date, the company reassesses unrecognised deferred tax assets. It recognises unrealised deferred
tax assets to the extent it has become reasonably certain or virtually certain, as the case may be, that sufficient taxable
income will be available against which the deferred tax can be realised.
The carrying amounts of deferred tax assets are reviewed at each balance sheet date. The company writes-down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any
such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
Minimum alternative tax (MAT) credit, by whatever name known is recognised as an asset only when and to the extent
there is convincing evidence that the Group will pay income tax higher than that computed under MAT, during the period
under which MAT is permitted to be set off under the applicable tax laws. In the year, in which the MAT credit becomes
eligible to be recognised as an asset, the said asset is created by way of a credit to the profit and loss account and shown
as MAT credit entitlement. The Group reviews the same at each balance sheet date and writes down the carrying amount
of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Group will pay income
tax higher than MAT during the specified period.
n) Operating leases
Assets acquired on lease, where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Lease rentals are charged off to the profit and loss account as incurred.
o) Earnings per share
Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period are adjusted for any
bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are
approved by the Board of Directors.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.
The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The
dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive
potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.
p) Employee Stock Options
Stock options granted to employees under the employees’ stock option scheme are accounted as per the intrinsic value
method permitted by the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999
and the “Guidance Note on Share Based Payments” issued by the ICAI. Accordingly, the excess of the market price of the
shares as on the date of the grant of options over the exercise price is recognised as deferred employee compensation and
is charged to profit and loss account on straight-line basis over the vesting period.
The number of options expected to vest is based on the best available estimate and are revised, if necessary, if subsequent
information indicates that the number of stock options expected to vest differs from previous estimates.
q) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attaching
conditions will be complied with. When the grant relates to an expense item, it is recognised as income over the period
necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates
to an asset, it is set up as deferred income. Where the Group receives non-monetary grants, the asset and that grant are
recorded at nominal amounts and are released to the profit and loss account over the expected useful life of the relevant
asset by equal annual instalments.
r) Cash and cash equivalents
Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand, cheques on hand and short term
investments with an original maturity of three months or less.

Suzlon Energy Limited, Annual Report 2010-2011 125

II NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. a. List of subsidiaries which are included in the consolidation and the Company’s effective holdings therein are as under:

Name of the subsidiary Country of incorporation Effective ownership in

subsidiaries as at March 31,
2011 2010
AE-Rotor Holding B.V. The Netherlands 100.00% 100.00%
Age Parque Eolico El Almendro S.L. Spain 100.00% 100.00%
Cannon Ball Wind Energy Park-I, LLC USA 100.00% 100.00%
PowerBlades GmbH* Germany 47.31% 46.16%
PowerBlades SA Portugal 92.77% 81.45%
Rep Ventures Portugal S.A. Portugal 92.77% 90.50%
REpower Australia Pty Ltd. Australia 92.77% 90.50%
REpower Benelux b.v.b.a. Belgium 92.77% 90.50%
REpower Betriebs – und Beteiligungs GmbH Germany 92.77% 90.50%
REpower Diekat S.A. Greece 55.66% 54.30%
REpower Espana S.L. Spain 92.77% 90.50%
REpower Investitions – und Projektierungs GmbH & Co. KG Germany 92.77% 90.50%
REpower Italia s.r.l Italy 92.77% 90.50%
Repower North China Ltd.* China 50.48% 49.24%
REpower Portugal - Sistemas Eolicos, S.A.** Portugal 92.77% -
REpower S.A.S. France 92.77% 90.50%
REpower Systems AG (REpower) Germany 92.77% 90.50%
REpower Systems GmbH (earlier known as einundzwanzigste Germany 92.77% 90.50%
Vittorio Verwaltungs GmbH)
REpower Systems Inc Canada 92.77% 90.50%
REpower Systems Polska Sp.zo.o Poland 92.77% -
REpower Systems Scandinavia AB Sweden 92.77% -
REpower UK Ltd. United Kingdom 92.77% 90.50%
REpower USA Corp. USA 92.77% 90.50%
REpower Windpark Betriebs GmbH***** Germany 92.77% 90.50%
REpower Wind Systems Trading (China) Ltd. China 92.77% 90.50%
RETC Renewable Energy Technology Centre Germany 96.39% 86.83%
RiaBlades S.A.*** Portugal - -
RPW Investments, SGPS, S.A. Portugal 100.00% 100.00%
SE Composites Limited India 100.00% 100.00%
SE Drive Technik GmbH Germany 100.00% 100.00%
SE Electricals Limited India 100.00% 100.00%
SE Forge Limited India 100.00% 82.90%
SE Solar Limited India 100.00% 100.00%
SISL Green Infra Limited India 100.00% 100.00%
Sure Power LLC USA 100.00% -
Suzlon Blade Technology B.V. The Netherlands 100.00% 100.00%
Suzlon Energia Eloica do Brasil Ltda Brazil 100.00% 100.00%
Suzlon Energy (Tianjin) Limited PR China 100.00% 100.00%
Suzlon Energy A/S Denmark 100.00% 100.00%
Suzlon Energy Australia Pty. Ltd. Australia 100.00% 100.00%
Suzlon Energy Australia RWFD Pty. Ltd. Australia 100.00% 100.00%
Suzlon Energy B.V. The Netherlands 100.00% 100.00%
Suzlon Energy GmbH Germany 100.00% 100.00%
Suzlon Energy Korea Co., Ltd. Republic of South Korea 100.00% 100.00%
Suzlon Energy Limited Mauritius 100.00% 100.00%
Suzlon Engitech Limited India 100.00% 100.00%
Suzlon Generators Limited India 75.00% 75.00%
Suzlon Gujarat Wind Park Limited India 100.00% 100.00%
Suzlon Infrastructure Services Limited India 100.00% 100.00%
Suzlon North Asia Ltd Hong Kong 100.00% 100.00%
Suzlon Power Infrastructure Limited India 100.00% 100.00%
Suzlon Rotor Corporation USA 100.00% 100.00%
Suzlon Structures Limited India 75.00% 75.00%
Suzlon Towers and Structures Limited India 100.00% 100.00%

126 Suzlon Energy Limited, Annual Report 2010-2011

 Name of the subsidiary Country of incorporation Effective ownership in
subsidiaries as at March 31,
2011 2010
Suzlon Wind Energy A/S Denmark 100.00% 100.00%
Suzlon Wind Energy bH Bosnia and Herzegovina 100.00% 100.00%
Suzlon Wind Energy Bulgaria EOOD Bulgaria 100.00% 100.00%
Suzlon Wind Energy Corporation USA 100.00% 100.00%
Suzlon Wind Energy Equipment Trading (Shanghai) Co. Ltd. China 100.00% 100.00%
Suzlon Wind Energy Espana, S.L Spain 100.00% 100.00%
Suzlon Wind Energy Italy s.r.l. Italy 100.00% 100.00%
Suzlon Wind Energy Limited United Kingdom 100.00% 100.00%
Suzlon Wind Energy Nicaragua Sociedad Anonima Nicaragua 100.00% 100.00%
Suzlon Wind Energy Portugal Energia Elocia Unipessoal Lda Portugal 100.00% 100.00%
Suzlon Wind Energy Romania SRL Romania 100.00% 100.00%
Suzlon Wind Energy South Africa (PTY) Ltd South Africa 100.00% -
Suzlon Wind Enerji Sanayi Ve Ticaret Limited Sirketi Turkey 100.00% 100.00%
Suzlon Wind International Limited India 100.00% 100.00%
Suzlon Windenergie GmbH Germany 100.00% 100.00%
Suzlon Windpark Management GmbH Germany 100.00% 100.00%
Tarilo Holding B.V. The Netherlands 100.00% 100.00%
Valum Holding B.V. The Netherlands 100.00% 100.00%
Ventipower S.A.*** Portugal - -
WEL Windenergie Logistik GmbH Germany 92.77% 90.50%
Windpark Blockland GmbH & Co KG Germany 92.77% 90.50%
Windpark Meckel/Gilzem GmbH & Co KG**** Germany - 90.50%
Windpark Olsdorf Watt Gmbh & Co. KG Germany 100.00% 100.00%
* The Group holds 92.77% in REpower Systems AG (‘REpower’) and REpower holds more than 50% stake in these companies.
** See Note 2
*** REpower holds 3% stakes in RiaBlades S.A and Ventipower S.A and obtained control on February 03, 2011 as part of
purchase agreement for the remaining stake in ‘REpower Portugal’. (See Note 2)
**** Sold during the year
***** Consolidated during the year
b. List of subsidiaries which are not included in the consolidation based on materiality:

Name of the subsidiary Country of Effective ownership in subsidiaries as at

incorporation March 31,
2011 2010
REpower Geothermie GmbH Germany 92.77% 90.50%
Renewable Energy Contractors Australia Pty Ltd Australia 100.00% -
Suzlon Energy Australia CYMWFD Pty Ltd Australia 100.00% -
Sister – sistemas e Technologia de Energias renovaveis Lda* Portugal - 67.88%
* liquidated during the year.
c. In respect of the following components of consolidated financial statements, the accounting policies followed by the
subsidiary companies are different from that of the Company:

Components of Particulars Amount as at Proportion of the

consolidated financial March 31, 2011 total component
statements
Depreciation Some of the subsidiaries have provided depreciation 413.53 62.90
on straight line method as against the written down
value method followed by the Company
Accumulated depreciation Some of the subsidiaries have provided depreciation 1,147.61 59.36
on straight line method as against the written down
value method followed by the Company
Employee compensation Some of the subsidiaries have accounted stock 7.76 61.78
expenses for stock option options granted to employees using the fair value
method as against the intrinsic value method followed
by the Company

Suzlon Energy Limited, Annual Report 2010-2011 127

2. Details of the Company’s ownership interest in joint ventures, which have been included in the consolidation are as follows:-

Name of Company % shares held Country of Contingent Capital

incorporation liabilities as at commitments as at
March 31, 2011 March 31, 2011
REpower Portugal - Nil Portugal Nil Nil
Sistemas Eolicos, S.A.
(50.00) (Nil) (Nil)
* REpower Systems AG acquired further 50% stake of REpower Portugal - Sistemas Eolicos, S.A.(‘REpower Portugal’) during the
year. Pursuant to this acquisition the same ceases to be joint venture of the Group. The transactions of REpower Portugal till
February 03, 2011 have been accounted using proportionate consolidation method as per Accounting Standard 27 – Financial
Reporting of Interests in Joint Ventures as notified by the Rules and thereafter as subsidiary.
3. Details of the Company’s ownership interest in associate, which have been included in the consolidation are as follows :-

Name of % shares held Original cost of Goodwill/ Accumulated Provision for Carrying amount
Company investment (capital reserve) profit/(loss) as at Diminution of investments
March 31, 2011 as at
March 31, 2011
Hansen 26.06 1,034.60 509.21 (11.72) 216.00* 806.88
Transmissions (26.06) (969.29) (486.07) (16.12) (Nil) (985.41)
International NV
* Refer Note 4 (a)
4. Exceptional items
The details of exceptional items aggregating to loss of Rs 253.28 crore (gain of Rs 211.89 crore) are as below:
a) On July 25, 2011, AE-Rotor Holding B.V. (‘AERH’), a step-down wholly owned subsidiary of the Company has signed an
irrevocable undertaking, subject to terms and conditions therein, to accept the offer to be made by ZF International BV,
a wholly owned subsidiary of ZF Friedrichshfen AG to sell its 26.06% equity stake in Hansen Transmissions International
NV (‘Hansen’). Accordingly, the Company has made provision for diminution of Rs. 216.00 crore (Rs. Nil) in the value of
investment based on the estimated net realizable value of the investment.
b) Expenses incurred on restructuring and refinancing of financial facilities including consent fees and expenses of merchant
bankers, etc. aggregating to Rs 37.28 crore (gain of Rs 122.27 crore).
c) Loss on account of amortization of foreign exchange losses on all convertible bonds aggregating Rs Nil (Rs 162.34 crore).
The Group has not treated the amortization of foreign exchange fluctuations on all convertible bonds during the current
period as exceptional.
d) Profit on sale of stake in Hansen Transmissions International NV aggregating Rs Nil (Rs 251.96 crore).
5. During the year the Company has recognised deferred tax asset of Rs 55.64 crore on brought forward losses of Suzlon Energy
Limited. The Company believes that the recognition of deferred tax asset satisfies the conditions of virtual certainty prescribed
under Accounting Standard – 22, Accounting for Taxes on Income as notified by the Companies (Accounting Standards) Rules,
2006 (as amended).
6. The Tamil Nadu State Electricity Board (‘TNEB’) through a circular has been charging Infrastructure Development Charges (‘IDC’)
to Wind Energy Developers towards recovery of cost by TNEB towards infrastructure facilities provided to the wind energy
generators to evacuate their power till the state grid. After the enactment of the Electricity Act, 2003 Indian Wind Energy
Association (‘InWEA’) approached the Tamil Nadu Electricity Regulatory Commission (‘State Commission’) challenging the legality
of the IDC levied by TNEB. The State Commission ruled in favour of the InWEA and by order dated September 9, 2008 ruled that
TNEB has no jurisdiction to issue such a circular imposing IDC and that charging IDC is in contravention of section 32(3) of the
Act especially when TNEB had not approached the State Commission for levy of IDC. TNEB appealed against this order of the
State Commission to the Appellate Tribunal for Electricity (‘Tribunal’). The Tribunal ruled in favour of TNEB vide its order dated
January 8, 2010. The InWEA filed a Civil Appeal against the order of the Tribunal in the Supreme Court and the matter is pending
the hearing of the Supreme Court. The Company has obtained a legal opinion which states that InWEA (and consequently the
Company) has a strong case. The amount under dispute as at March 31, 2011 aggregates to Rs 64.80 crore (Rs 59.65 crore).
7. Foreign currency convertible bonds
(a) Initial terms of issue:
On June 11, 2007 the Company made an issue of zero coupon convertible bonds aggregating USD 300 million - Rs 1,223.70
crore [Phase I bonds]. Further, on October 10, 2007, the Company made an additional issue of zero coupon convertible
bonds aggregating USD 200 million - Rs 786.20 crore [Phase II bonds] and on July 24, 2009, the company made an
additional issue of zero coupon convertible bonds aggregating USD 93.87 million - Rs 452.64 crore at an issue price of
104.30% of the principal amount of USD 90.00 million.
The key terms of these bonds were as follows:

Particulars Phase I Phase II Phase III

Issue size (USD) 300 million 200 million 90 million
Face value per bond (in USD) 1,000 1,000 1,000
No. of equity shares per bond 113.50 107.30 533.28
Initial conversion price per share(Rs) 359.68 371.55 90.38
Fixed exchange rate (Rs/USD) 40.83 39.87 48.20
Redemption amount as a % of principal amount (%) 145.23 144.88 134.20
Maturity date June 12, 2012 October 11, 2012 July 18, 2014

128 Suzlon Energy Limited, Annual Report 2010-2011

 b) Restructuring of Phase I and Phase II bonds:
i. During the year 2009-10, the Company has restructured Phase I and Phase II Zero Coupon Convertible Bonds with an
approval of the Reserve Bank of India (‘RBI’) wherein the bondholders were offered the following options as part of the
restructuring;
• Buyback of bonds @ 54.55% of the face value of US $ 1000 per bond.
• Issue of new bonds (‘Phase I New Bonds’ in case of Phase I Bonds and ‘Phase II New Bonds’ in case of Phase II
Bonds) in place of old bonds at a fixed ratio of 3:5 (60 cents to dollar) bearing a coupon of 7.5 per cent per annum,
payable semi-annually. Unless previously redeemed, converted or purchased and cancelled, the Company will
redeem each Phase I New Bond at 150.24 per cent of its principal amount and each Phase II New Bond at 157.72
per cent of its principal amount on the relevant Maturity Date. The conversion price is set at Rs 76.68 per share.
These bonds do not have any financial covenants and are of the same maturity as the old bonds.
• Consent fee of USD 15 Million to be paid across both the series, for those bondholders who consent to the
relaxation of covenants.
As a result of the restructuring, the outstanding position of the foreign currency convertible bonds is as follows:

Particulars Phase I Bonds Phase II Bonds Total

(Amount in USD) (Amount in USD) (Amount in USD)
Old bonds exchanged [A] 59,332,000 34,672,000 94,004,000
New Bonds issued in the ratio of 3:5 [B] 35,592,000* 20,796,000 56,388,000*
Bonds bought back for cash [C] 29,366,000 43,960,000 73,326,000
Cash paid for buyback [D] 16,019,702 23,980,180 39,999,882
Old bonds outstanding [E] 211,302,000 121,368,000 332,670,000
Value of total bonds outstanding [F]=[B]+[E] 246,894,000 142,164,000 389,058,000
Value of old bonds [G]=[A]+[C]+[E] 300,000,000 200,000,000 500,000,000
Consent fee paid 11,846,947 1,869,863 13,716,810
Maturity date June 12, 2012 October 11, 2012
Redemption amount as a % of principal amount of New 150.24 157.72
Bonds (%)
Redemption amount as a % of principal amount of Old 145.23 144.88
Bonds carried forward (%)
* 19,000 bonds were converted into equity shares during the year 2009-10
ii. On April 29, 2010, the Company convened meetings of Bondholders of each of the series, who approved the respective
resolutions proposed to them. Accordingly post receipt of regulatory approvals, the Company changed the conversion
price of the Phase I bonds from Rs.359.68 per equity share to Rs.97.26 per equity share and for Phase II bonds from
Rs.371.55 to Rs.97.26 per equity share, subject to adjustments in accordance with terms and conditions of the bonds.
The floor price for Phase I and Phase II bonds has been revised to Rs.74.025 per equity share. The fixed exchange rate
was changed to 1USD=Rs 44.60 from 1USD=Rs 40.83 for Phase I bonds and 1USD=Rs 39.87 for Phase II bonds. The
Company has incurred Rs.37.28 crore towards consent fee to bondholders and other cost which has been disclosed under
exceptional items for the year ended March 31, 2011.
c) Redemption Premium:
The Phase I, Phase II, Phase I New, Phase II New, and Phase III bonds are redeemable subject to satisfaction of certain
conditions mentioned in the offering circular and hence have been designated as monetary liability.
The Company has not provided for the proportionate premium on these bonds aggregating Rs 579.21 crore (Rs 377.22
crore) as shown below:
In Rs crore

Phase March 31, 2011 March 31, 2010

Phase I 309.57 221.09
Phase II 159.12 109.98
Phase I (new) 43.22 18.53
Phase II (new) 25.40 10.98
Phase III 41.90 16.64
Total 579.21 377.22
In the opinion of the management, the likelihood of redemption of these bonds cannot presently be ascertained.
Accordingly no provision for any liability has been made in the financial statements and hence the proportionate premium
has been shown as a contingent liability. The Company has adequate securities premium to absorb the proportionate
premium on redemption as at March 31, 2011.

Suzlon Energy Limited, Annual Report 2010-2011 129

8. Suzlon Energy Limited (‘SEL’ or ‘the Company’) along with its 10 Indian subsidiaries, collectively referred as “Suzlon Entities”
executed a debt consolidation and refinancing arrangement (the ‘Arrangement’) on February 5, 2010 with a consortium
comprising of various banks and financial institutions (‘Consortium’) lead by the State Bank of India as the Facility Agent and SBI
Cap Trustee Company Limited as the Security Trustee.

The entities covered includes Suzlon Energy Limited (‘SEL’), Suzlon Towers and Structures Limited (‘STSL’), Suzlon Infrastructure
Services Limited (‘SISL’), Suzlon Structures Limited (‘SSL’), Suzlon Power Infrastructure Limited (‘SPIL’), Suzlon Generators Limited
(‘SGL’), Suzlon Gujarat Wind Park Limited (‘SGWPL’), SE Electricals Limited (‘SEEL’), Suzlon Wind International Limited (‘SWIL’),
SE Composites Limited (‘SECL’), Suzlon Engitech Limited (‘SENL’) (hereinafter collectively referred to as the ‘Suzlon Entities’ or
individually as the ‘Borrower’).

Details of security for the secured loans in consolidated financial statements are as follows:

(i) Term Loans from banks and financial institutions

• Rs 4,351.05 crore (Rs 2,977.86 crore) availed under debt consolidation and refinancing arrangement are secured
by first charge on all present and future tangible/intangible and moveable assets of each of the Borrower, first
charge on all present and future immoveable assets (excluding the identified properties) of each of Borrower, first
charge on all present and future chargeable current assets of each of the Borrower, first charge over Trust and
Retention Account (“TRA”) accounts of the Borrowers, pledge of equity shares of certain domestic and overseas
subsidiaries of the Company including REpower, pledge of certain equity shares of SEL held by it’s promoters,
personal guarantee of the managing director of the Company and limited personal guarantee of director of one
domestic subsidiary.

• Rs 2,073.67 crore (Rs 2,087.88 crore) secured by pledge of equity shares of certain overseas subsidiaries of the
Company including REpower, pledge of equity shares of Hansen, pari pass charge on all present and future tangible,
intangible, moveable, immoveable, chargeable current assets and TRA accounts of the Suzlon Entities, pledge of
equity shares of certain domestic subsidiaries of the Company and pledge of certain equity shares of SEL held by
it’s promoters.

• Rs Nil (Rs 1.70 crore) secured by way of first charge on WTG Assets and land and all receivables out of the income
generated from WTG assets and personal guarantee of directors and corporate guarantee of the company.

• Rs 358.27 crore (Rs 263.29 crore) secured by way of charge on land and assignments of electricity proceeds.

• Rs Nil (Rs 18.13 crore) secured by way of mortgage of plant and machinery and other fixed assets, hypothecation
on current assets and corporate guarantee of the Company.

• Rs 409.42 crore (Rs 416.64 crore) secured by way of first charge on all plant and machinery and other fixed assets
and second charge on all current assets and corporate guarantee of a Group Company.

• Rs 41.85 crore (Rs 42.97 crore) secured by way of first charge on specific plant and machinery, land, second charge
on windmills and corporate guarantee of the Company.

• Rs 17.99 crore (Rs 35.18 crore) secured against first charge on land, building and equipments, inventory, receivables
and other current assets and Corporate guarantee of the company.

(ii) Term loans from others

• Rs 5.64 crore (Rs 9.41 crore) secured by specific FD against it.

• Rs Nil (Rs 2.13 crore) secured by charge on certain windmills, receivables of the power generation from windmills
and mortgage of land.

(iii) Working capital facilities from banks and financial institutions

• Rs 1,896.79 crore (Rs 2,085.08 crore) availed under debt consolidation and refinancing arrangement are secured
by first charge on all present and future tangible/intangible and moveable assets of each of the Borrower, first
charge on all present and future immoveable assets (excluding the identified properties) of each of Borrower, first
charge on all present and future chargeable current assets of each of the Borrower, first charge over TRA accounts
of the Borrowers, pledge of equity shares of certain domestic and overseas subsidiaries of the Company including
REpower, pledge of certain equity shares of SEL held by it’s promoters, personal guarantee of the managing
director of the Company and limited personal guarantee of director of one domestic subsidiary.

• Rs 87.00 crore (Rs 144.01 crore) secured by hypothecation of inventories, book debts and other current assets,
both present and future and first and second charge on certain immovable and movable fixed assets.

• Rs 12.92 crore (Rs 13.03 crore) secured against first charge on land, building and equipments, inventory, receivables
and other current assets and Corporate guarantee of the company.

• Rs Nil (Rs 23.31 crore) secured by hypothecation of all current assets, second charge on fixed assets and corporate
guarantee of the Company.

(iv) Vehicle loan

• Rs 2.26 crore (Rs 2.74 crore) secured against vehicle under hire purchase contract.

130 Suzlon Energy Limited, Annual Report 2010-2011

9. Disclosures pursuant to Accounting Standard-7 (AS-7) ‘Construction Contracts’

Year ended March 31,

Perticulars
2011 2010
Contract revenue recognised during the year 9,736.54 11,848.15
As at March 31,
Particulars
2011 2010
Aggregate amount of contract cost incurred and recognised profits (less recognised
5,612.54 6,796.66
losses) for all contracts in progress up to the reporting date
Amount of customer advances outstanding for contracts in progress up to the
329.04 1,627.21
reporting date
Retention amount due from customers for contract in progress up to the reporting date 1.01 8.33
Due from customers 1,678.75 3,017.77
Due to customers 157.08 483.85
10. Employee stock option scheme
The Company has provided various Employee Stock Option Schemes to its employees. During the year ended March 31, 2011 the
following schemes were in operation:

Particulars ESOP 2005 ESOP 2006 ESOP 2007 ESOP ESOP ESOP ESOP ESOP Special
Perpetual-I Perpetual-I Perpetual-I Perpetual-I Perpetual-I ESOP 2007
(Tranche I) (Tranche II) (Tranche III) (Tranche (Tranche V)
IV)
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
Grant date 16-Jun-05 23-Nov-07 21-May-09 5-Oct-09 30-Jan-10 28-Jul-10 30-Oct-10 21-Feb-11 1-Apr-10
Board approval 25-Mar-05 29-Jan-07 15-Apr-08 16-Jun-08 16-Jun-08 16-Jun-08 16-Jun-08 16-Jun-08 15-Apr-08
date
Shareholder 16-Jun-05 10-Mar-07 22-May-08 13-Aug-09 13-Aug-09 13-Aug-09 13-Aug-09 13-Aug-09 22-May-08
approval
Options granted 4,605,000 519,500 1,878,000 10,916,787 135,000 175,000 50,000 75,000 14,143,500
(Nos)
Exercise Price (Rs) 51.00 192.20 90.50 70.00/87.50 61.80/77.25 46.76/58.45 44.36 47.70 72.70
Method of Equity Equity Equity Equity Equity Equity Equity Equity Equity
settlement
Vesting period
Tranche 1 16-Jun-06 23-Nov-08 21-May-10 5-Oct-10 30-Jan-11 28-Jul-11 30-Oct-11 21-Feb-12 1-Apr-11
Tranche 2 16-Jun-07 23-Nov-09 21-May-11 5-Oct-11 30-Jan-12 28-Jul-12 30-Oct-12 21-Feb-13 1-Apr-12
Tranche 3 16-Jun-08 23-Nov-10 Nil 5-Oct-12 30-Jan-13 28-Jul-13 30-Oct-13 21-Feb-14 1-Apr-13
Vesting %
Tranche 1 30% 50% 75% 50% 50% 50% 50% 50% 33.33%
Tranche 2 30% 25% 25% 25% 25% 25% 25% 25% 33.33%
Tranche 3 40% 25% Nil 25% 25% 25% 25% 25% 33.34%
Exercise period Till 16-Jun- Till 23- Till 21- Till 5-Oct- Till 30-Jan- Till 28-July- Till 30-Oct- Till 21-Feb- Till 31-Mar-
(end date) 2011 Nov- 2013 May- 2015 2014 2015 2015 2015 2016 2014
The movement in the stock options during the year ended March 31, 2011 was as per the table below

Particulars ESOP 2005 ESOP 2006 ESOP 2007 ESOP ESOP ESOP ESOP ESOP Special
Perpetual-I Perpetual-I Perpetual-I Perpetual-I Perpetual-I ESOP 2007
(Tranche I) (Tranche II) (Tranche III) (Tranche (Tranche V)
IV)
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
Opening balance 348,000 383,000 1, ,000 10,204,496 135,000 Nil Nil Nil Nil
Granted during the Nil Nil Nil Nil Nil 175,000 50,000 75,000 14,143,500
year
Forfeited/cancelled Nil 51,000 331,000 2,375,607 Nil Nil Nil Nil 2,931,000
during the year
Exercised during 8,000 Nil Nil Nil Nil Nil Nil Nil Nil
the year
Expired during the Nil Nil Nil Nil Nil Nil Nil Nil Nil
year
Closing balance 340,000 332,000 1,368,000 7,828,889 135,000 175,000 50,000 75,000 11,212,500
Exercisable at the 340,000 332,000 1,026,000 3,914.445 67,500 Nil Nil Nil Nil
end of the year
(Included in closing
balance of option
outstanding)
The weighted average share price during the year ended March 31, 2011 was approximately Rs 55.20 (Rs 87.83) per share.
Fair value of the option
The Company applies intrinsic value based method of accounting for determining compensation cost for Scheme I to Scheme IX.
Following are the details of the amounts charged to the profit and loss account, rate per option, and cost per option calculated
based on ‘Black-Scholes’ Model.

Suzlon Energy Limited, Annual Report 2010-2011 131

 Particulars ESOP ESOP ESOP ESOP Perpetual-I ESOP Perpetual-I ESOP Perpetual-I ESOP ESOP Special
2005 2006 2007 (Tranche I) (Tranche II) (Tranche III) Perpetual-I Perpetual-I ESOP 2007
(Tranche IV) (Tranche V)
Scheme I Scheme II Scheme III Scheme IV Scheme V Scheme VI Scheme VII Scheme VIII Scheme IX
Non-US US Non-US US Non-US US
Charge to profit Nil 0.57 0.01 5.18 0.07 0.08 0.02 Nil Nil
and loss account (Nil) (1.15) (0.28) (6.98) (0.01) (Nil) (Nil) (Nil) (Nil)
Rate per option 51.00 182.60 2.20 22.75 4.75 15.45 Nil 12.29 0.60 11.09 Nil Nil
(Rs)
Black Scholes’ 51.84 231.32 46.31 46.25 39.75 41.39 35.91 28.13 22.76 28.09 22.48 29.53
Model - Cost per (56.76) (246.77) (51.31) (50.86) (45.03) (45.25) (40.32) (Nil) (Nil) (Nil) (Nil) (Nil)
option (Rs)
If the Cost per option was calculated based on the ‘Black-Scholes’ model, the loss after tax would have been higher by Rs 34.33
crore (Rs 18.15 crore).
Consequently the basic and diluted earnings/(loss) per share after factoring the above impact would be as follows:

Particulars As at March 31,

2011 2010
Earnings per share
- Basic (7.97) (6.51)
- Diluted (7.97) (6.51)
11. Other notes
a) The Company is in the process of seeking the required statutory and regulatory approvals, for implementing a Scheme of
Arrangement and Restructuring (SOA). The following are the salient features of the SOA:
I. De-merger and consequent transfer of (a) Power Generation Division of Suzlon Towers And Structures Limited
(‘STSL’) a WOS of the Company to Suzlon Engitech Limited another WOS of the Company and (b) Project Execution
Division of Suzlon Infrastructure Services Limited (‘SISL’) a WOS of the Company to Suzlon Gujarat Wind Park
Limited another WOS of the Company.
II. Amalgamation of STSL and SISL with the Company after giving effect to the above-mentioned de-merger and
consequent transfer of their respective division.
The ‘Appointed Date’ fixed for this purpose is April 1, 2010. This SOA is subject to sanctions u/s 391 and 394 of the
Companies Act, 1956 by the respective Honourable High Courts. Since the SOA is yet to be implemented, the financial
statement does not contain any effect on account of this SOA
b) Revenue of REpower Systems AG (‘REpower’), one of the major subsidiaries of the Company was recomputed in the
process of consolidation by applying the milestones the Company considers for its revenue recognition. During the
year ended March 31, 2011 the Company based on a detailed evaluation of the contracts of Suzlon and REpower has
concluded that the nature and level of customization of the contracts of Suzlon and REpower are different and hence
not applying Suzlon’s milestones for revenue earned by REpower, during consolidation, is more appropriate. Accordingly,
during consolidation, Suzlon has not applied its milestones to the REpower contracts. Due to this change the consolidated
revenue and the net profit after tax is higher by Rs 974.97 crore and Rs 109.57 crore respectively.
c) On July 12, 2010, the Company raised Rs 1,188.39 crore pursuant to a Rights Issue. The Company allotted 188,633,322
equity shares of Rs 2 each at a premium of Rs 61 per equity share on a rights basis to the existing equity shareholders
of the Company in the ratio of 2 equity shares for every 15 fully paid-up equity shares held by the existing equity
shareholders on the record date. The primary objective of the rights issue was to discharge certain existing loans availed
by the Company from its promoters. Consequently, loans of Rs 1,175.00 crore along with accrued interest of Rs 12.38
crore were discharged by conversion into equity shares of the Company.
d) On receipt of shareholders’ approval by way of Postal Ballot, on November 16, 2010, the Company issued and allotted
31,992,582 equity shares of Rs 2 each at a price of Rs 60 per share on preferential basis to ‘IDFC Trustee Company Ltd.
A/c IDFC Infrastructure Fund 3 A/c IDFC Private Equity Fund III’ (IDFC PE) as a consideration for acquisition of 41,254,125
equity shares of Rs 10 each in SE Forge Limited (SEFL), a subsidiary of the Company. Consequent to acquisition of IDFC PE’s
stake in SEFL, SEFL became a wholly owned subsidiary of the Company.
e) On April 4, 2011, AERH has informed the Executive Board of REpower that it directly and indirectly owns shares amounting
to more than 95% of the registered share capital of REpower. At the same time, AERH requested that the general meeting
of REpower shall resolve upon on the transfer of the shares held by the remaining shareholders (minority shareholders) to
AERH against payment of an appropriate cash compensation in compliance with German Stock Corporation Act. Further,
on July 21, 2011, AERH informed the Executive Board of REpower that it has determined the adequate cash compensation
for the transfer of the shares from the minority shareholders of REpower to AERH at EUR 142.77 per no-par value share
and accordingly, the total cash compensation payable by AERH is expected to be around EUR 63 million. A resolution on
the squeeze-out is proposed to be passed at the annual general meeting of REpower, which is scheduled to take place on
September 21, 2011.
f) On April 12, 2011, the Company has made an issue of 5% Foreign Currency Convertible Bonds due 2016 for a total amount
of USD 175.00 million (Rs 776.83 crore). The initial conversion price is set at Rs 54.01 per share and the same is subject to
adjustments in certain circumstances.
g) REpower Systems AG (‘REpower), a subsidiary of the Company had issued profit participation rights of Euro 10 Million in
May 2004. For profit participation rights, a basic interest rate of 7.90% in addition to a variable interest rate dependent
on net income is paid. The participation right has a maturity of seven years and the same falls due at the end of May 2011
and the same has been disclosed under unsecured loans.

132 Suzlon Energy Limited, Annual Report 2010-2011

 h) Net foreign exchange gain aggregating Rs 245.29 (loss of Rs 89.47 crore) on long term foreign currency monetary items
have been adjusted in the foreign currency monetary item translation difference account during the year. Further, foreign
exchange losses aggregating Rs 8.42 crore (Rs 233.76 crore) have been amortised during the year.
i) Miscellaneous income includes income in the nature of government grant aggregating Rs 9.65 crore (Rs 18.31 crore).
12. Statement showing the use of proceeds from Right Issue Allotment up to March 31, 2011
On July 12, 2010, the Company raised Rs 1,188.39 crore through issuance of 188,633,322 equity shares of Rs 2 each at a premium
of Rs 61 per equity share. The details of utilization of Right issue proceeds are given below:

Sr. No. Particulars As at

March 31, 2011
I Sources of funds
Proceeds from Issue 1,188.39
II Utilisation of funds
Repayment of loan from Promoter companies 1,187.38*
Payment of issue expenses in part 1.01
Total 1,188.39
III Unutilised funds -
* Loans availed by the Company from its promoters were discharged by conversion of same into equity shares which have been
included in proceeds from issue above.
13. Operating leases
Premises
Expenses under cancellable operating lease and rental contracts during the year is Rs 75.02 crore (Rs 41.13 crore).
Expenses under non-cancellable operating lease and rental contracts during the year is Rs 36.07 crore (Rs 79.61 crore).
Maximum financial obligations from long–term non-cancellable operating lease and rental contracts as per the respective
agreement is as follows:

Obligation on non-cancellable operating leases Year ended March 31,

2011 2010
Not later than one year 156.60 239.43
Later than one year and not later than five years 365.50 506.18
Later than five years 1,545.51 873.40
14. Post employment benefits
Net employees benefit expense recognised in the profit and loss account:

Particulars Year ended March 31,

2011 2010
Current service cost 4.55 8.26
Interest cost on benefit obligation 1.33 3.26
Expected return on plan assets (1.12) (1.98)
Net actuarial loss recognised in the year 2.21 (0.56)
Past service cost Nil Nil
Net Benefit expense 6.97 8.98
Details of defined benefit obligation

Particulars Year ended March 31,

2011 2010
Defined benefit obligation 23.39 17.20
Fair value of plan assets 17.71 12.44
Present value of unfunded obligations 5.68 4.76
Less: Unrecognised past service cost Nil Nil
Plan Liability 5.68 4.76
Changes in the present value of the defined benefit plan are as follows:

Particulars Year ended March 31,

2011 2010
Opening defined benefit obligation 17.22 70.77
Interest cost 1.33 3.25
Current service cost 4.55 8.26
Benefits paid (1.93) (3.00)
Actuarial losses on obligation 2.22 6.39
Reduction in obligation due to sale of investment in subsidiary - (68.45)
Closed defined benefit obligation 23.39 17.22

Suzlon Energy Limited, Annual Report 2010-2011 133

 Changes in the fair value of plan assets are as follows:

Particulars Year ended March 31,

2011 2010
Opening fair value of plan assets 12.44 49.36
Expected return 1.12 2.00
Contributions by employer 5.86 8.01
Benefits paid (1.72) (2.77)
Actuarial gains / (losses) 0.01 0.30
Reduction in fair value due to sale of investment in subsidiary - (44.46)
Closing fair value of plan assets 17.71 12.44
Amounts for the current and previous periods are as follows:

Particulars Year ended March 31,

2011 2010 2009 2008 2007
Defined benefit obligation 23.39 17.22 70.77 54.06 53.92
Plan assets 17.71 12.44 49.36 39.76 33.77
Surplus / (deficit) 5.68 4.76 21.41 14.30 20.15
Experience adjustments on plan liabilities (2.18) (0.14) Nil Nil Nil
Experience adjustments on plan assets 0.01 0.07 Nil Nil Nil
The principal assumptions with respect to discount rate, expected return on plan assets, salary escalation rate and attrition rate
used in determining the defined benefit plan obligations differ from subsidiary to subsidiary.
The estimates of future salary increases take into account the inflation, seniority, promotion and other relevant factors.
15. Provisions
In pursuance of Accounting Standard-29 (AS-29) “Provisions, Contingent Liabilities and Contingent Assets”, the provisions
required have been incorporated in the books of accounts in the following manner:

Particulars Performance Operation, Provision for

guarantee maintenance and liquidated
warranty damages
Opening balance 96.30 785.06 62.90
(158.38) (663.60) (61.15)
Additions due to acquisition - - -
(-) (29.80) (-)
Additions 179.63 507.09 60.39
(203.52) (606.45) (216.52)
Utilisation 125.81 190.38 33.38
(265.60) (452.47) (213.30)
Deduction due to disposal - - -
(-) (62.32) (-)
Reversal - 108.62 2.29
(-) (-) (1.47)
Closing balance 150.12 993.15 87.62
(96.30) (785.06) (62.90)
The provision for performance guarantee (PG) represents the expected outflow of resources against claims for performance
shortfall expected in future over the life of the guarantee assured. The period of PG varies for each customer according to the
terms of the contract. The key assumptions in arriving at the PG provision are wind velocity, plant load factor, grid availability,
load shedding, historical data, wind variation factor, machine availability etc.
The provision for operation, maintenance and warranty (O&M) represents the expected liability on account of field failure of
parts of WTG and expected expenditure of servicing the WTGs and components thereof over the period of free O&M, which
varies according to the terms of each sales order.
The closing balance of the provision for operation, maintenance and warranty in the balance sheet represents the amount required
for operation, maintenance and warranty for the unexpired period on WTGs and components thereof, on the field under warranty.
The break-up of charge to profit and loss account of “provision for operation, maintenance and warranty” is as under:
a) Amount of provision required for the WTGs sold Rs 398.47 crore (Rs 606.45 crore)
b) Less: booked by subsidiaries under various expenditure heads by their nature amounting to Rs 273.85 crore
(Rs 77.73 crore)
c) Charge to profit and loss account Rs 124.62 crore (Rs 528.72 crore)
Provision for liquidated damages (LD) represents the expected claims which the Group may need to pay for non fulfilment of
certain commitments as per the terms of the sales order. These are determined on a case to case basis considering the dynamics
of each individual sales order and the factors relevant to that sale.

134 Suzlon Energy Limited, Annual Report 2010-2011

16. Break-up of the accumulated deferred tax asset/(liability), net is given below:

Particulars As at March 31,

2011 2010
Deferred tax assets:
Unabsorbed losses and depreciation 166.06 111.96
Employee benefits 3.06 0.39
Provision for guarantee and warranty 28.97 49.35
Provision for doubtful debts 14.80 0.62
Others 58.23 86.09
(a) 271.12 248.41
Deferred tax liabilities
Difference in depreciation of fixed assets 220.57 129.89
Others 184.40 214.99
(b) 404.97 344.88
Deferred tax liabilities (net) [(c )=(b)-(a)] 133.85 96.47
17. Earnings / (loss) per Share (‘EPS’)
All amounts in Rupees crore except per share data

Particulars Year ended March 31,

2011 2010
Basic
Net loss after share of profit of associates and minority interest (1,323.97) (982.56)
Less: Preference dividend and tax thereon 0.23 0.20
Profit attributable to equity shareholders A (1,324.20) (982.76)
Weighted average number of equity shares B 1,704,579,510 1,538,477,796
Basic earnings/(loss) per share of Rs 2 each A/B (7.77) (6.39)
Diluted
Net loss after share of profit of associates and minority interest C (1,324.20) (982.76)
Add: Interest on foreign currency convertible bonds (net of tax) D 12.88 17.54
Adjusted net profit(loss)/ after tax E=C-D (1,311.32) (965.22)
Weighted average number of equity shares F 1,704,579,510 1,538,477,796
Add: Equity shares for no consideration arising on grant of share options G 19,411 1,066,418
Add: Potential equity shares that could arise on conversion of zero H 237,164,922 102,922,093
coupon convertible bonds
Weighted average number of equity shares for diluted EPS I = (F+G+H) 1,941,763,843 1,642,466,307
Diluted earnings/(loss) per share (7.77) (6.39)
(Rs) of face value of Rs 2 each [see note below]*
*Since the earnings/(loss) per share computation based on diluted weighted average number of shares is anti- dilutive, the basic
and diluted earnings/(loss) per share is the same.
18. Managerial remuneration to Directors

Particulars Year ended March 31,

2011 2010
Salaries 0.27* 2.23
Contribution to superannuation fund and provident fund - 0.15
Sitting Fees 0.05 0.07
Total 0.32 2.45
* During the year, managerial remuneration of Rs 2.06 crore paid to the directors of the Company in financial year 2009-10
has been recovered in view of the losses incurred by the Company during financial year 2009-10 and the decision taken at the
Fifteenth Annual General Meeting of the Company.
As the liabilities for gratuity are provided on an actuarial basis, the amounts pertaining to the directors are not included above.

Suzlon Energy Limited, Annual Report 2010-2011 135

19. a) Contingent liabilities

Particulars As at March 31,

2011 2010
Premium on redemption of zero coupon convertible bonds 579.21 377.22
Disputed Infrastructure Development Charges (See Note 6) 64.80 59.65
Claims against the Group not acknowledged -
Excise duty, customs duty, service tax and VAT 11.28 12.94
Income-tax 21.96 12.71
State levies 11.50 4.16
Labour related 0.02 0.02
Suppliers and service providers 42.25 71.85
Cumulative preference share dividend of subsidiary payable to minority 0.70 0.47
Others 9.70 4.51
b) Capital commitments

Particulars As at March 31,

2011 2010
Estimated amount of contracts remaining to be executed on capital 106.11 114.67
accounts and not provided for, net of advances
20. Derivative instruments and unhedged foreign currency exposure

Particulars of derivatives Purpose

Forward contract outstanding as at balance sheet date:
Buy EURO 4,229,520 (EURO 740,141) Hedge of forex EURO liabilities
Buy USD 2,000,000 (USD 28,029,780) Hedge of forex USD liabilities
Sell CAD 218,520 (CAD Nil) Hedge of forex CAD liabilities
Sell USD 18,809,720 (USD 86,411,076) Hedge of forex USD receivable
Sell EURO 11,000,000 (EURO Nil) Hedge of forex EURO receivable
Sell AUD 37,000,000 (AUD 38,800,000) Hedge of forex AUD receivable
Principal only currency swaps contracts outstanding as at balance sheet date:
USD 46,665,379 (USD Nil) Notional Amount Hedge of forex USD receivables
Euro 18,948,075 (Euro Nil) Notional Amount Hedge of forex Euro loans given
Option contract outstanding as at balance sheet date:
USD Nil (USD 0.04 crore) put option outstanding
Particulars of unhedged foreign currency exposure as at the balance sheet
Particulars As at March 31,
2011 2010
Current liabilities 3,857.48 3,423.72
Debtors 4,442.18 4,049.17
Loans given 2,840.85 2,393.77
Loans received 2,675.85 2,718.40
Bank balance in current accounts and term deposit accounts 148.11 79.98
Deposit Paid 0.52 -
Zero coupon convertible bonds 2,136.27 2,150.89

21. Related party disclosures

(A) Related parties with whom transactions have taken place during the year
a) Associate
Hansen Transmission International N V
b) Entities where Key Management Personnel (KMP)/ Relatives of Key Management Personnel (‘RKMP’) has
significant influence
Sarjan Realities Limited, Synefra Engineering & Construction Limited, Shubh Realty (South) Private Limited, Tanti
Holdings Private Limited, Suzlon Foundation, Girish R. Tanti (HUF), Sanman Holdings Private Limited, SE Energy
Park Limited, Suruchi Holdings Private Limited, Sugati Holdings Private Limited, Synew Steel Limited, Salene Power
Infrastructure Limited (Formerly Sarjan Infrastructure Finance Limited).
c) Key Management Personnel of Suzlon Energy Limited
Tulsi R. Tanti, Girish R. Tanti, Vinod R. Tanti*
d) Relatives of Key Management Personnel of Suzlon Energy Limited
Jitendra R. Tanti, Pranav T. Tanti, Nidhi T. Tanti

136 Suzlon Energy Limited, Annual Report 2010-2011

 e) Employee Funds

SE Composites Limited Superannuation Fund

SE Composites Limited Employees Group Gratuity Scheme
SE Electricals Limited Superannuation Fund
SE Electricals Limited Employees Group Gratuity Scheme
Suzlon Energy Limited Superannuation Fund
Suzlon Energy Limited Employees Group Gratuity Scheme
Suzlon Generators Limited Superannuation Fund
Suzlon Generators Limited Employees Group Gratuity Scheme
Suzlon Gujarat Wind Park Limited Superannuation Fund
Suzlon Gujarat Wind Park Limited Employees Group Gratuity Scheme
Suzlon Infrastructure Services Limited Superannuation Fund
Suzlon Infrastructure Services Limited Employees Group Gratuity Scheme
Suzlon Power Infrastructure Limited Superannuation Fund
Suzlon Power Infrastructure Limited Employees Group Gratuity Scheme
Suzlon Structures Limited Employees Group Gratuity Scheme
Suzlon Towers & Structure Limited Superannuation Fund
Suzlon Towers & Structure Limited Employees Group Gratuity Scheme
Suzlon Wind International Limited Superannuation Fund
Suzlon Wind International Limited Employees Group Gratuity Scheme
* He is RKMP till October 31, 2010 and appointed as a whole-time director of the Company with effect from
November 1, 2010.

Suzlon Energy Limited, Annual Report 2010-2011 137

 (B) Transactions between the Group and related parties during the year and the status of outstanding balances as at
March 31, 2011

Particulars Associate Joint Entities where KMP RKMP Employee

Venture KMP/ RKMP Funds
has significant
influence
Transactions
Purchase of fixed assets - - 0.31 - - -
(including intangibles) (-) (-) (5.44) (-) (-) (-)
Sale of fixed assets - - 0.01 - - -
(-) (-) (1.02) (-) (-) (-)
Sale of goods and services - - 0.33 0.45 0.08 -
(-) (77.17) (0.60) (0.31) (0.29) (-)
Purchase of goods and services 32.46 - 63.54 - - -
(-) (-) (56.99) (-) (-) (-)
Loans given - - - - - -
(-) (-) (12.64) (-) (-) (-)
Loans taken - - 145.00 - - -
(-) (-) (1,175.00) (-) (-) (-)
Issue of equity shares - - 1,187.38 - - -
(including securities premium) (-) (-) (-) (-) (-) (-)
Share application money - - - - - -
refunded (-) (-) (95.00) (-) (-) (-)
Deposits given - - - - - -
(-) (-) (1.20) (-) (-) (-)
Interest income - - 5.00 - - -
(-) (-) (7.61) (-) (-) (-)
Interest expense - - 20.87 - - -
(3.62) (-) (56.29) (-) (-) (-)
Lease rent expense - - 19.26 - - -
(-) (-) (18.81) (-) (-) (-)
Donation given - - 5.55 - - -
(-) (-) (2.86) (-) (-) (-)
Remuneration - - - -1.79 0.66 -
(-) (-) (-) (2.06) (0.01) (-)
Contribution to various funds - - - - - 5.93
(-) (-) (-) (-) (-) (2.66)
Outstanding balances
Advances from customers - - - 1.14 0.38 -
(-) (-) (-) (0.75) (0.75) (-)
Sundry debtors - - 2.40 0.36 0.26 -
(-) (6.84) (3.66) (0.38) (0.36) (-)
Loans outstanding - - - - - -
(-) (-) (2.04) (-) (-) (-)
Deposits outstanding - - 123.90 - - -
(-) (-) (121.41) (-) (-) (-)
Advances to supplier and other - - 1.23 - - -
assets (-) (-) (-) (-) (-) (-)
Sundry creditors 87.14 - 21.37 - - -
(216.42) (-) (9.13) (-) (-) (-)
Unsecured loan outstanding - - 145.32 - - -
(Including Interest) (-) (-) (1,181.99) (-) (-) (-)
Note: Figures in brackets pertain to balances as on March 31, 2010

138 Suzlon Energy Limited, Annual Report 2010-2011

 (C) Disclosure of significant transactions with related parties

Type of the transaction Type of relationship Name of the entity/person Year ended March 31,
2011 2010
Purchase of fixed assets Entities where KMP/ RKMP Synefra Engineering & 0.01 5.25
(including intangibles) has significant influence Construction Limited
Sarjan Realities Ltd 0.28 0.18
Sale of fixed assets Entities where KMP/ RKMP Synefra Engineering & 0.01 1.02
has significant influence Construction Limited
Sale of goods and services Joint Ventures REpower Portugal - Sistemas - 1.34
Eolicos, S.A.
REpower North (China) Ltd. - 75.83
Entities where KMP/ RKMP Synefra Engineering & 0.20 0.51
has significant influence Construction Limited
Sarjan Realities Ltd 0.09 0.09
KMP Tulsi R Tanti 0.15 0.15
Girish R Tanti 0.15 0.16
Vinod R Tanti 0.15 0.15
Purchase of goods and Associate Hansen Transmission 32.46 -
services International N V
Entities where KMP/ RKMP Synefra Engineering & 61.70 52.01
has significant influence Construction Limited
Loans given Entities where KMP/ RKMP Sarjan Realities Limited - 3.39
has significant influence Shubh Realty (South) Private - 9.25
Limited
Loans taken Entities where KMP/ RKMP Tanti Holdings Private Limited 145.00 -
has significant influence SE Energy Park Limited - 565.00
Sanman Holdings Private Limited - 610.00
Issue of equity shares Entities where KMP/ RKMP Sanman Holdings Private Limited 1,187.38 -
(including securities has significant influence
premium)
Share application money Entities where KMP/ RKMP Tanti Holdings Private Limited - 95.00
refunded has significant influence
Deposits given Entities where KMP/ RKMP Synefra Engineering & 0.12 1.20
has significant influence Construction Limited
Interest income Entities where KMP/ RKMP Synefra Engineering & 5.00 5.00
has significant influence Construction Limited
Sarjan Realities Limited - 2.40
Interest expense Associates Hansen Transmission - 3.62
International N V
Entities where KMP/ RKMP Tanti Holdings Private Limited 0.35 1.08
has significant influence SE Energy Park Limited 4.02 33.21
Sanman Holdings Private Limited 16.50 21.99
Rent expense Entities where KMP/ RKMP Synefra Engineering & 18.44 18.79
has significant influence Construction Limited
Donation given Entities where KMP/ RKMP Suzlon Foundation 5.55 2.86
has significant influence
Remuneration KMP Tulsi R.Tanti (1.28) 1.46
KMP Girish R. Tanti (0.51) 0.60
RKMP Vinod R. Tanti 0.35 Nil
RKMP Pranav T. Tanti 0.30 0.01
Contribution to various Employee Funds Suzlon Energy Limited 0.51 0.13
funds Superannuation Fund
Suzlon Energy Limited Employees 3.11 2.00
Group Gratuity Scheme
Suzlon Infrastructure Services 2.03 0.19
Limited Employees Group Gratuity
Scheme

Suzlon Energy Limited, Annual Report 2010-2011 139

22. Disclosure as required by Clause 32 of Listing Agreement with stock exchange

Type of relationship Name Amount Maximum Amount

outstanding as at outstanding during the
March 31, 2011 year
Synefra Engineering & Construction Limited –
Companies in which 50.00 50.00
deposit
directors are interested
Shubh Realty (South) Private Limited - 2.04
Note: No loans have been granted by the Company to any person for the purpose of investing in the shares of Suzlon Energy
Limited or any of its subsidiaries.
23. Details of the Company’s share in joint ventures included in the consolidated financial statements are as follows (Before inter
company eliminations):

Balance sheet As at Profit and loss account Year ended

March 31, 2011 March 31, 2011
Share capital - Sales 21.84
(31.39) (459.01)
Reserves and surplus - Other income -
(4.89) (2.93)
Secured loans - Total income 21.84
(23.88) (461.94)
Total sources of funds - Cost of goods sold 6.68
(60.16) (376.80)
Fixed assets - Operating and other expenses 11.63
(7.98) (47.26)
Cash and bank balances - Employee’s remuneration and benefits 2.02
(0.24) (6.91)
Inventories - Financial charges 1.72
(-) (12.08)
Sundry debtors - Depreciation/amortisation 0.47
(86.64) (2.98)
Loans and advances - Total expenditure 22.52
(11.00) (445.94)
Total current assets - Profit before tax 0.68
(97.88) (16.00)
Current liabilities - Tax 0.14
(45.70) (-1.57)
Net current assets - Profit after tax 0.54
(52.18) (17.57)
Total application of funds -
(60.16)
24. Segment reporting
The Company has disclosed business segment as the primary segment. Segments have been identified taking into account the
nature of the products, the differing risks and returns, the organisation structure and internal reporting system.
The Group’s operations predominantly relate sale of WTGs and allied activities including sale/sub-lease of land, infrastructure
development income; sale of gear boxes; and sale of foundry and forging components. Others primarily include power generation
operations.
Segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of
the segments allocated on a reasonable basis.
Inter segment transfers have been carried out at mutually agreed prices.
The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record
income and expenditure in individual segments. These are as set out in the note on significant accounting policies.

140 Suzlon Energy Limited, Annual Report 2010-2011

 (A) Primary Business Segment
Rs in crore
Year ended March 31, 2011 Year ended March 31, 2010
Particulars Sale of Sale of Foundry & Sale of Sale of Foundry
Others Elim Total Others Elim Total
WTG Gear Box Forging WTG Gear Box & Forging
Total external sales 17,756.13 88.97 34.03 – 17,879.13 18,067.14 2,489.94 19.36 43.21 – 20,619.65
Add: Inter segment sales 6.88 268.64 (275.52) – 6.22 166.18 84.75 (257.15) -
Segment revenue 17,763.01 – 357.61 34.03 (275.52) 7,879.13 18,073.36 2,656.12 104.11 43.21 (257.15) 20,619.65
Segment results before exceptional items 386.53 (43.79) 12.04 (6.62) 348.16 479.44 64.85 (65.01) 17.81 45.95 543.04
Add/(Less) Items to reconcile with profit as
per profit and loss account
Add : Other income 106.60 69.46

Suzlon Energy Limited, Annual Report 2010-2011

Less : Financial charges (1,333.10) (1,457.99)
Loss before tax before exceptional items (878.34) (845.49)
Less/ (add) : Exceptional items 253.28 (211.89)
Loss before tax (1,131.62) (633.60)
Provision for current tax 147.37 183.24

141
MAT credit entitlement (0.47) (1.59)
Deferred tax 38.37 174.45
Fringe benefit tax - 0.03
Total tax 185.27 356.13
Loss after tax (1,316.89) (989.73)
Add : Share in associate’s profit/(loss) after tax (27.83) 16.12
Less: Share of loss/(profit) of minority 20.75 (8.95)
Net loss (1,323.97) (982.56)
Segment assets 23,497.46 – 926.06 285.17 – 24,708.69 23,223.45 – 992.31 244.91 – 24,460.67
Common assets 4,511.14 4,743.93
Enterprise assets 29,219.83 29,204.60
Segment liabilities 9,591.80 – 108.69 57.68 – 9,758.17 9,310.94 – 80.84 0.90 – 9,392.68
Common liabilities 12,936.08 13,210.65
Enterprise liabilities 22,694.25 22,603.33
Capital expenditure during the year 946.36 20.91 57.79 1,025.06 769.68 – 40.04 5.55 815.27
Segment depreciation 572.03 – 70.51 14.86 – 657.40 426.18 180.62 41.85 14.32 – 662.97
 (B) Geographical Segment

Rs in crore
Year ended March 31, 2011 Year ended March 31, 2010
India Europe USA China Australia Others Total India Europe USA China Australia Others Total
Segment revenue 6,506.27 8,520.26 876.21 847.13 1,001.38 127.88 17,879.13 4,102.22 9,008.64 3,869.79 1,475.04 1,355.47 808.49 20,619.65
Segment assets 7,481.23 13,357.45 1,413.13 1,192.04 737.95 526.89 24,708.69 6,965.77 12,983.50 2,312.06 1,224.66 651.93 322.75 24,460.67
Capital expenditure incurred 285.75 703.07 6.27 17.50 6.50 5.97 1,025.06 307.99 393.69 9.40 72.51 22.40 9.28 815.27

Note:
1. Since Hansen ceased to be a subsidiary as on November 24, 2009, assets, liabilities and capital expenditure relating to Hansen have not been considered for segment disclosures.
2. Depreciation charge for the year for WTG segment includes impairment loss of Rs 50.77 crore (Rs Nil).

25. Prior year amounts have been reclassified wherever necessary to confirm with current year presentation. Figures in the brackets are in respect of the previous year.
Signatures to Schedules ‘A’ to ‘P’

As per our report of even date For and on behalf of the Board of Directors of

142
Suzlon Energy Limited

For SNK & Co. For S.R. BATLIBOI & Co. Tulsi R. Tanti Vinod R. Tanti
Firm Registration number: 109176W Firm Registration number: 301003E Chairman & Managing Director Executive Director
Chartered Accountants Chartered Accountants

per Jasmin B. Shah per Arvind Sethi Hemal A. Kanuga Robin Banerjee
Partner Partner Company Secretary Chief Financial Officer
Membership No. 46238 Membership No. 89802

Place: Pune Place: Pune Place: Pune

Date : July 30, 2011 Date : July 30, 2011 Date: July 30, 2011

Suzlon Energy Limited, Annual Report 2010-2011

 Notice
NOTICE is hereby given that the 16th Annual General Meeting of the Members of Suzlon Energy Limited will be held on Tuesday,
September 27, 2011 at 11:00 am at J. B. Auditorium, AMA Complex, ATIRA, Dr. Vikram Sarabhai Marg, Ahmedabad - 380015 to
transact the following businesses:
ORDINARY BUSINESS:
1. Adoption of Annual Accounts, etc. for 2010-11
To receive, consider and adopt the audited Balance Sheet as at March 31, 2011 and the Profit & Loss Account for the year
ended on that date together with the Directors’ Report and Auditors’ Report thereon.
2. Re-appointment of Mr. Girish R.Tanti as Director
To appoint a director in place of Mr. Girish R.Tanti, who retires by rotation and being eligible, offers himself for re-
appointment.
3. Re-appointment of Mr. Ajay Relan as Director
To appoint a director in place of Mr. Ajay Relan, who retires by rotation and being eligible, offers himself for re-
appointment.
4. Appointment of Statutory Auditors
To appoint M/s. SNK & Co., Chartered Accountants, Pune and M/s. S. R. Batliboi & Co., Chartered Accountants, Pune, as
statutory auditors and fix their remuneration.
SPECIAL BUSINESS:
5. Regularisation of Mr. Vinod R.Tanti as Director
To consider and if thought fit to pass, with or without modification, the following resolution as an Ordinary Resolution:
“RESOLVED THAT Mr. Vinod R.Tanti, who was appointed as an Additional Director of the Company with effect from
November 1, 2010 and holds office up to the ensuing Annual General Meeting of the Company in terms of Section 260 of
the Companies Act, 1956 and in respect of whom the Company has received a notice in writing pursuant to Section 257 of
the Companies Act, 1956 proposing his candidature for the office of the Director, be and is hereby appointed as a Director
of the Company whose period of Office shall not be liable to determination by retirement of directors by rotation.”
6. Regularisation of Ms. Mythili Balasubramanian as Director
To consider and if thought fit to pass, with or without modification, the following resolution as an Ordinary Resolution:
“RESOLVED THAT Ms. Mythili Balasubramanian, who was appointed as an Additional Director of the Company with effect
from November 1, 2010 and holds office up to the ensuing Annual General Meeting of the Company in terms of Section
260 of the Companies Act, 1956 and in respect of whom the Company has received a notice in writing pursuant to Section
257 of the Companies Act, 1956 proposing her candidature for the office of the Director, be and is hereby appointed as a
Director of the Company whose period of Office shall be liable to determination by retirement of directors by rotation.”
7. Regularisation of Mr. Rajiv Ranjan Jha as Director
To consider and if thought fit to pass, with or without modification, the following resolution as an Ordinary Resolution:
“RESOLVED THAT Mr. Rajiv Ranjan Jha, who was appointed as an Additional Director of the Company with effect from
April 28, 2011 and holds office up to the ensuing Annual General Meeting of the Company in terms of Section 260 of the
Companies Act, 1956 and in respect of whom the Company has received a notice in writing pursuant to Section 257 of the
Companies Act, 1956 proposing his candidature for the office of the Director, be and is hereby appointed as a Director of
the Company whose period of Office shall be liable to determination by retirement of directors by rotation.”
8. To ratify and approve the appointment of Mr. Tulsi R.Tanti as Managing Director
To consider and if thought fit, to pass with or without modification, the following resolution as a Special Resolution:
“RESOLVED THAT pursuant to Sections 198, 269, 309, 314, Schedule XIII and other applicable provisions, if any of the
Companies Act, 1956, the appointment of Mr. Tulsi R.Tanti as Managing Director of the Company for a period of 3
(three) years with effect from April 1, 2011 be and the same is hereby approved and ratified on the following terms and
conditions:
(1) Salary: A salary of Rs.2,00,00,000/- (Rupees Two Crores Only) per annum including but not limiting to House Rent
Allowance, contribution to Super Annuation Fund, Gratuity provided there are adequate profits in terms of Section
198 and 309 of the Companies Act, 1956.

Suzlon Energy Limited, Annual Report 2010-2011 143

 (2) Perquisites:
a) Medical benefits for self and family:
All medical expenses incurred by Managing Director and his family shall be reimbursed in accordance with
the rules of the Company.
b) Insurance:
The Managing Director and his family would be entitled to the benefit of personal accident insurance as per
the Company policy. The Managing Director shall also be entitled to the benefit of Keyman Insurance Policy.
c) The Company shall reimburse to the Managing Director all the actual expenses incurred wholly, necessarily
and exclusively for and on behalf of the Company and/or incurred in performance of the duties of the
Company.
Explanation: “Family” shall mean the spouse, the dependent children and the dependent parents of the Managing
Director.
“RESOLVED FURTHER THAT in case of loss or inadequacy of profits, Mr. Tulsi R.Tanti, Managing Director be paid
remuneration within the limits as prescribed under Part II Section II (B) of Schedule XIII to the Companies Act, 1956.”
“RESOLVED FURTHER THAT the Remuneration Committee of the Board of Directors of the Company be and is hereby
authorised to vary the remuneration of Mr. Tulsi R.Tanti, Managing Director from time to time within the limits prescribed
and permitted under Section 198 and 309 of the Companies Act, 1956, as amended from time to time, during his term
of office without being required to seek any fresh approval of the Members of the Company and the decision of the
Remuneration Committee shall be final and conclusive in that regard.”
“RESOLVED FURTHER THAT Mr. Tulsi R.Tanti, Managing Director shall not be liable to retire by rotation in terms of the
provisions of the Companies Act, 1956.”
“RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to finalise other terms of
appointment and scope of work as may be in the overall interest of the Company and accordingly finalise the Agreement
to be executed between the Company and Mr. Tulsi R.Tanti in the matter of his appointment as the Managing Director
and payment of remuneration and that the Directors of the Company be and are hereby severally authorised to execute
for and on behalf of the Company the agreement and other papers as may be necessary, desirable and expedient for the
aforesaid purpose.”
“RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all such acts, deeds,
matters and things and sign agreements, forms, declarations, returns, letters and papers as may be necessary, desirable,
expedient to give effect to this resolution.”
“RESOLVED FURTHER THAT the Common Seal of the Company be affixed on the necessary documents, if required, in the
presence of any one of the Directors of the Company who do sign the same in token thereof.”
9. To ratify and approve the appointment of Mr. Vinod R.Tanti as Wholetime Director
To consider and if thought fit, to pass with or without modification, the following resolution as a Special Resolution:
“RESOLVED THAT pursuant to Sections 198, 269, 309, 314, Schedule XIII and other applicable provisions, if any of the
Companies Act, 1956, the appointment of Mr. Vinod R.Tanti as the Wholetime Director of the Company be and the same
is hereby approved and ratified for a period of 3 (three) years with effect from November 1, 2010 and that the variation
in terms of appointment of Mr. Vinod R.Tanti, the Wholetime Director be and the same is hereby approved and ratified
with effect from April 1, 2011 for his remaining tenure of office on the following terms and conditions:
(1) Salary: A salary of Rs.1,20,00,000/- (Rupees One Crore Twenty Lacs Only) per annum including but not limiting
to House Rent Allowance, contribution to Super Annuation Fund, Gratuity provided there are adequate profits in
terms of Section 198 and 309 of the Companies Act, 1956.
(2) Perquisites:
a) Medical benefits for self and family:
All medical expenses incurred by the Wholetime Director and his family shall be reimbursed in accordance
with the rules of the Company.
b) Insurance:
The Wholetime Director and his family would be entitled to the benefit of personal accident insurance as
per the Company policy. The Wholetime Director shall also be entitled to the benefit of Keyman Insurance Policy.

c) The Company shall reimburse to the Wholetime Director all the actual expenses incurred wholly, necessarily

and exclusively for and on behalf of the Company and/or incurred in performance of the duties of the
Company.
Explanation: “Family” shall mean the spouse, the dependent children and the dependent parents of the Wholetime
Director.

144 Suzlon Energy Limited, Annual Report 2010-2011

 “RESOLVED FURTHER THAT in case of loss or inadequacy of profits, Mr. Vinod R.Tanti, the Wholetime Director be paid
remuneration within the limits as prescribed under Part II Section II (B) of Schedule XIII to the Companies Act, 1956.”
“RESOLVED FURTHER THAT the Remuneration Committee of the Board of Directors of the Company be and is hereby
authorised to vary the remuneration of Mr. Vinod R.Tanti, the Wholetime Director from time to time within the limits
prescribed and permitted under Section 198 and 309 of the Companies Act, 1956, as amended from time to time, during
his term of office without being required to seek any fresh approval of the Members of the Company and the decision of
the Remuneration Committee shall be final and conclusive in that regard.”
“RESOLVED FURTHER THAT Mr. Vinod R.Tanti, the Wholetime Director shall not be liable to retire by rotation in terms of
the provisions of the Companies Act, 1956.”
“RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to finalise other terms of
appointment and scope of work as may be in the overall interest of the Company and accordingly finalise the Agreement
to be executed between the Company and Mr. Vinod R.Tanti in the matter of his appointment as the Wholetime Director
and payment of remuneration and that the Directors of the Company be and are hereby severally authorised to execute
for and on behalf of the Company the agreement and other papers as may be necessary, desirable and expedient for the
aforesaid purpose.”
“RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all such acts, deeds,
matters and things and sign agreements, forms, declarations, returns, letters and papers as may be necessary, desirable,
expedient to give effect to this resolution.”
“RESOLVED FURTHER THAT the Common Seal of the Company be affixed on the necessary documents, if required, in the
presence of any one of the Directors of the Company who do sign the same in token thereof.”
10. Issue of Securities to the extent of Rs.5,000 Crores
To consider and if thought fit, to pass with or without modifications, the following resolution as a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Section 81(1A) and other applicable provisions, if any, of the Companies
Act, 1956 (including any amendments thereto or re-enactment thereof) and such approvals, permissions, consents and
sanctions as may be necessary from the Government of India (GOI), the Reserve Bank of India (RBI), the provisions of
the Foreign Exchange Management Act, 1999 (FEMA), The Foreign Exchange Management (Transfer or Issue of Security
by a Person Resident outside India) Regulations, 2000, the Issue of Foreign Currency Convertible Bonds and Ordinary
Shares (through Depository Receipt Mechanism) Scheme, 1993, and subject to the approval, consent, permission and/
or sanction of the Ministry of Finance (Department of Economic Affairs) and Ministry of Industry (Foreign Investment
Promotion Board/Secretariat for Industrial Assistance) and all other Ministries/Departments of the Government of India,
Securities and Exchange Board of India (SEBI) and/or any other competent authorities and the enabling provisions of the
Memorandum and Articles of Association of the Company, the Listing Agreements entered into by the Company with the
Stock Exchanges where the Company’s shares are listed and in accordance with the regulations and guidelines issued by
the GOI, RBI, SEBI and any competent authorities and clarifications issued thereon from time to time and subject to all
other necessary approvals, permissions, consents and sanctions of concerned statutory and other authorities and subject
to such conditions and modifications as may be prescribed by any of them while granting such approvals, permissions,
consents and sanctions and which may be agreed to by the Board of Directors of the Company (hereinafter referred to as
the ‘Board’, which term shall include any Committee thereof) consent of the Company be and is hereby accorded to the
Board to create, offer, issue and allot in one or more tranches, whether rupee denominated or denominated in foreign
currency, in the course of international and/or domestic offering(s) in one or more foreign markets and/or domestic
market, for a value of up to Rs.5,000 Crores (Rupees Five Thousand Crores Only), representing such number of Global
Depository Receipts (GDRs), American Depository Receipts (ADRs), Foreign Currency Convertible Bonds (FCCBs), and/
or Equity Shares through Depository Receipt Mechanism and/or Fully Convertible Debentures and/or Non Convertible
Debentures with warrants or any Other Financial Instruments (OFIs) convertible into or linked to Equity Shares and/or any
other instruments and/or combination of instruments with or without detachable warrants with a right exercisable by
the warrant holders to convert or subscribe to the Equity Shares or otherwise, in registered or bearer form (hereinafter
collectively referred to as the ‘Securities’) or any combination of Securities to any person including foreign/resident
investors (whether institutions, incorporated bodies, mutual funds and/or individuals or otherwise), Foreign Institutional
Investors, Promoters, Indian and/or Multilateral Financial Institutions, Mutual Funds, Non-Resident Indians, Employees
of the Company and/or any other categories of investors, whether they be holders of shares of the Company or not
(collectively called the “Investors”) through public issue(s) by prospectus, private placement(s) or a combination thereof
at such time or times, at such price or prices, at a discount or premium to the market price or prices in such manner and
on such terms and conditions including security, rate of interest, etc., as may be decided by and deemed appropriate
by the Board in its absolute discretion including the discretion to determine the categories of Investors to whom the
offer, issue and allotment shall be made to the exclusion of all other categories of Investors at the time of such issue and
allotment considering the prevailing market conditions and other relevant factors wherever necessary in consultation
with the Lead Managers, as the Board in its absolute discretion may deem fit and appropriate.”
“RESOLVED FURTHER THAT pursuant to the provisions of Section 81(1A) and other applicable provisions, if any, of the
Companies Act, 1956 (including any amendments thereto or re-enactment thereof), approval of the shareholders and the
provisions of Chapter VIII of the Securities And Exchange Board of India (Issue of Capital And Disclosure Requirements)

Suzlon Energy Limited, Annual Report 2010-2011 145

 Regulations, 2009 (“SEBI ICDR Regulations”) and the provisions of the Foreign Exchange Management Act, 2000 (FEMA),
Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000, the
Board may at its absolute discretion, issue, offer and allot equity shares or securities convertible into equity shares or
NCDs with warrants for a value up to the amount of Rs.5,000 Crores (Rupees Five Thousand Crores Only) inclusive of such
premium, as specified above, to Qualified Institutional Buyers (as defined by the SEBI ICDR Regulations) pursuant to a
qualified institutional placement, as provided under Chapter VIII of the SEBI ICDR Regulations.”
“RESOLVED FURTHER THAT without prejudice to the generality of the above, the aforesaid Securities may have such
features and attributes or any terms or combination of terms in accordance with international practices to provide
for the tradability and free transferability thereof as per the prevailing practices and regulations in the capital markets
including but not limited to the terms and conditions in relation to payment of interest, additional interest, premium on
redemption, prepayment and any other debt service payments whatsoever including terms for issue of additional Equity
Shares or variation of the conversion price of the Securities during the duration of the Securities and the Board be and is
hereby authorised in its absolute discretion in such manner as it may deem fit, to dispose off such of the Securities that
are not subscribed.”
“RESOLVED FURTHER THAT:
(a) the Securities to be so created, offered, issued and allotted shall be subject to the provisions of the Memorandum
and Articles of Association of the Company; and
(b) the underlying Equity Shares shall rank pari passu with the existing Equity Shares of the Company.”
“RESOLVED FURTHER THAT the issue of Equity Shares underlying the Securities to the holders of the Securities shall, inter
alia, be subject to the following terms and conditions:
(a) in the event of the Company making a bonus issue by way of capitalisation of its profits or reserves prior to the
allotment of the Equity Shares, the number of shares to be allotted shall stand augmented in the same proportion in
which the equity share capital increases as a consequence of such bonus issue and the premium, if any, shall stand
reduced pro tanto;
(b) in the event of the Company making a rights offer by issue of Equity Shares prior to the allotment of the Equity
Shares, the entitlement to the Equity Shares shall stand increased in the same proportion as that of the rights offer
and such additional Equity Shares shall be offered to the holders of the Securities at the same price at which the
same are offered to the existing shareholders, and
(c) in the event of any merger, amalgamation, takeover or any other re-organisation, the number of shares, the price
and the time period as aforesaid shall be suitably adjusted.”
“RESOLVED FURTHER THAT the Board be and is hereby authorised to appoint Lead Managers, Underwriters, Guarantors,
Depositories, Custodians, Registrars, Trustees, Bankers, Lawyers, Advisors and all such Agencies as may be involved or
concerned in such offerings of Securities and to remunerate them by way of commission, brokerage, fees or the like and
also to enter into and execute all such arrangements, agreements, memorandum, documents, etc., with such agencies
and also to seek the listing of such Securities on one or more National and International Stock Exchange(s).”
“RESOLVED FURTHER THAT the Board be and is hereby authorised to issue and allot such number of Equity Shares as
may be required to be issued and allotted upon conversion of any Securities or as may be necessary in accordance with
the terms of the offering, all such Equity Shares ranking pari passu with the existing Equity Shares of the Company in
all respects, except the right as to dividend which shall be as provided under the terms of the issue and in the offering
documents.”
“RESOLVED FURTHER THAT for the purpose of giving effect to the above, the Board be and is hereby authorised to
determine the form, terms and timing of the Issue(s), including the class of investors to whom the Securities are to
be allotted, number of Securities to be allotted in each tranche, issue price, face value, premium amount on issue/
conversion of Securities/exercise of warrants/redemption of Securities, rate of interest, redemption period, listings on
one or more stock exchanges in India and/or abroad as the Board in its absolute discretion deems fit and to make and
accept any modifications in the proposal as may be required by the authorities involved in such issues in India and/or
abroad, to do all acts, deeds, matters and things and to settle any questions or difficulties that may arise in regard to the
Issue(s).”
“RESOLVED FURTHER THAT all the aforesaid powers and authorities be and are hereby further sub-delegated to the
Securities Issue Committee of the Board and that the said Securities Issue Committee be and is hereby authorised to sign
and execute such letters, deeds, documents, writings, etc. and to do all such acts, deeds, matters and things as might be
required in connection with the issue of the Securities which in the opinion of the said Securities Issue Committee ought
to have been done, executed and performed in relation to issue of the Securities as aforesaid and the matters incidental
and ancillary thereto as duly and effectually as the Board could have done without further reference to the Board.”

By order of the Board of Directors of

Suzlon Energy Limited

Place : Pune Hemal A.Kanuga,

Dated : July 30, 2011 Company Secretary

146 Suzlon Energy Limited, Annual Report 2010-2011

Notes:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE
INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER OF THE COMPANY.

2. The instrument appointing proxy in order to be effective must be deposited at the Registered Office of the Company not
less than 48 hours before commencement of the 16th Annual General Meeting of the Company.

3. An Explanatory Statement pursuant to Section 173 (2) of the Companies Act, 1956 in respect of the aforesaid items of
Special Business is enclosed herewith.

4. The Register of Members and Share Transfer Books of the Company shall remain closed from Monday, September 19,
2011 to Tuesday, September 27, 2011 (both days inclusive) for the purpose of the 16th Annual General Meeting.

5. Profile of directors seeking appointment/re-appointment as stipulated under Clause 49 of the Listing Agreement with
stock exchanges is enclosed herewith.

6. Corporate members intending to send their authorised representatives to attend the 16th Annual General Meeting are
requested to send a certified copy of the board resolution authorising their representative to attend and vote on their
behalf at the meeting.

7. Members desirous of asking any questions at the 16th Annual General Meeting are requested to send in their questions
so as to reach the Company’s Registered Office at least 7 days before the date of the 16th Annual General Meeting so that
the same can be suitably replied to.

8. Members/proxies are requested to bring their attendance slip along with their copy of Annual Report to the meeting.

9. In terms of the “Green Initiative in the Corporate Governance” undertaken by the Ministry of Corporate Affairs, the
Company proposes to send henceforth notices/documents including annual reports, etc. to the shareholders in electronic
form. Members who have still not registered their email addresses are requested to register their email addresses, in
respect of electronic holdings with the Depository through the concerned Depository Participants and in respect of
physical holdings with the Company’s Registrar and Share Transfer Agents, M/s. Karvy Computershare Private Limited,
17-24, Vittalrao Nagar, Madhapur, Hyderabad-500081; email id [email protected]. Please note that as a valued
Member of the Company, you are always entitled to request and receive all such communication in physical form free of
cost. Further, the documents served through e-mail will be available on the Company’s website www.suzlon.com.

Suzlon Energy Limited, Annual Report 2010-2011 147

 EXPLANATORY STATEMENT
[Pursuant to Section 173(2) of the Companies Act, 1956]
Agenda Item No.5:

Mr. Vinod R.Tanti was appointed as an Additional Director and Executive Director of the Company with effect from November
1, 2010. In terms of the provisions of Section 260 of the Companies Act, 1956, Mr. Vinod R.Tanti holds office up to the ensuing
Annual General Meeting of the Company. The Company is in receipt of a notice in writing pursuant to Section 257 of the
Companies Act, 1956 proposing the candidature of Mr. Vinod R.Tanti for the office of the Director of the Company.

The details of Mr. Vinod R.Tanti as required to be given in terms of Clause 49(IV)(G) of the Listing Agreement have been provided
separately under Profile of Directors seeking appointment/re-appointment.

The Board recommends the appointment of Mr. Vinod R.Tanti as the Director of the Company. In light of above, you are
requested to accord your approval to the Ordinary Resolution as set out at Agenda Item No.5 of the accompanying notice.

Mr. Vinod R.Tanti, himself, Mr. Tulsi R.Tanti, the Chairman and Managing Director and Mr. Girish R.Tanti, Director may be deemed
to be concerned or interested in the said resolution appointing Mr. Vinod R.Tanti as the Director of the Company.

Agenda Item No.6:

Ms. Mythili Balasubramanian, a nominee of IDBI Bank Limited was appointed as an Additional Director of the Company with effect
from November 1, 2010. In terms of the provisions of Section 260 of the Companies Act, 1956, Ms. Mythili Balasubramanian
holds office up to the ensuing Annual General Meeting of the Company. The Company is in receipt of a notice in writing pursuant
to Section 257 of the Companies Act, 1956 proposing the candidature of Ms. Mythili Balasubramanian for the office of the
Director of the Company.

The details of Ms. Mythili Balasubramanian as required to be given in terms of Clause 49(IV)(G) of the Listing Agreement have
been provided separately under Profile of Directors seeking appointment/re-appointment.

The Board recommends the appointment of Ms. Mythili Balasubramanian as the Director of the Company. In light of above, you
are requested to accord your approval to the Ordinary Resolution as set out at Agenda Item No.6 of the accompanying notice.

No other Director except Ms. Mythili Balasubramanian is, in any way, concerned or interested in the said resolution appointing
Ms. Mythili Balasubramanian as the Director of the Company.

Agenda Item No.7:

Mr. Rajiv Ranjan Jha, a nominee of Power Finance Corporation Limited was appointed as an Additional Director of the Company,
with effect from April 28, 2011. In terms of the provisions of Section 260 of the Companies Act, 1956, Mr. Rajiv Ranjan Jha holds
office up to the ensuing Annual General Meeting of the Company. The Company is in receipt of a notice in writing pursuant to
Section 257 of the Companies Act, 1956 proposing the candidature of Mr. Rajiv Ranjan Jha for the office of the Director of the
Company.

The details of Mr. Rajiv Ranjan Jha as required to be given in terms of Clause 49(IV)(G) of the Listing Agreement have been
provided separately under Profile of Directors seeking appointment/re-appointment.

The Board recommends the appointment of Mr. Rajiv Ranjan Jha as the Director of the Company. In light of above, you are
requested to accord your approval to the Ordinary Resolution as set out at Agenda Item No.7 of the accompanying notice.

No other Director except Mr. Rajiv Ranjan Jha is, in any way, concerned or interested in the said resolution appointing Mr. Rajiv
Ranjan Jha as the Director of the Company.

Agenda Item No.8:

Mr. Tulsi R.Tanti has been re-appointed as the Managing Director of the Company for a period of three years with effect from April
1, 2011 in terms of the approval granted by the Board of Directors on February 4, 2011, approval granted by the Remuneration
Committee in terms of the Circular Resolution dated February 21, 2011 and approval of the Remuneration Committee and the
Board of Directors both dated July 30, 2011.

In terms of the provisions of Section 269 read with Schedule XIII to the Companies Act, 1956 the appointment of Managing
Director is subject to approval of members at the general meeting of the Company held first after such appointment.

The details of Mr. Tulsi R.Tanti as required to be given in terms of Clause 49(IV)(G) of the Listing Agreement have been provided
separately under Profile of Directors seeking appointment / re-appointment.

In the aforesaid connection and as required under Part II Section II (B) of Schedule XIII to the Companies Act, 1956, the following
information is furnished:

I. General Information:

(1) Nature of Industry:

The Company is engaged in the business of design, development, manufacturing and supply of Wind Turbine
Generators of various rated capacities.

148 Suzlon Energy Limited, Annual Report 2010-2011

 (2) Date or expected date of commencement of commercial production:

The Company has been operational since last 16 years.

(3) Financial Performance:

The Company was incorporated on April 10, 1995 and the certificate for commencement of business was issued on
April 25, 1995. The following are the results of the Company for the last three years, at glance:

(Rupees in Crores)
Financial Parameters Financial Year

2008-09 2009-10 2010-11

Turnover 7235.58 3488.68 4357.55

Net Profit (as per P & L Account) (469.27) (1414.09) (185.66)

Amount of Equity Dividend - - -

Rate of Equity Dividend - - -

(4) Export Performance, Net Foreign Exchange Collaborations:

As on March 31, 2011, the Company does not have standalone export orders. However, the Company’s domestic
subsidiaries have export orders which would be considered under consolidated foreign exchange earnings.

(5) Foreign investments or collaborations, if any:

As on June 30, 2011, foreign investments in the Company were as under:

• Foreign Institutional Investors: 23,08,37,623

• Non-Resident Indians: 2,17,52,245

The Company has no foreign collaboration as on date.

II. Information about the appointee:

(1) Background details, Recognition/Awards:

Mr. Tulsi R.Tanti is the founder of the Company and has been the Chairman and Managing Director since its
inception. Under his stewardship, the Company has grown to be a leading wind turbine manufacturer in the world.
Mr. Tulsi R.Tanti is a Commerce Graduate and holds a Diploma in Mechanical Engineering. He is responsible for the
overall strategic direction of the Company. The details of awards received by Mr. Tulsi R.Tanti are provided in detail
under the Profile of Directors seeking appointment/re-appointment forming part of the Notice.

(2) Past Remuneration:

The previous term of Mr. Tulsi R.Tanti as a Managing Director was for the period of three years from April 1, 2008 on
a remuneration of Rs.1,50,00,000/- in terms of Section 198 and 309 read with Schedule XIII of the Companies Act,
1956. Apart from the remuneration in form of salary, Mr. Tulsi R.Tanti has not been paid any other remuneration
except other privileges as are available to other employees of the Company.

However at the 15th Annual General Meeting of the Company held on August 13, 2010, it was requested by
the shareholders of the Company that since the Company had incurred losses in the financial year 2009-10,
Mr. Tulsi R.Tanti should not receive any remuneration in the financial year 2009-10 and 2010-11. In light of
the losses incurred by the Company during the financial year 2009-10 and respecting the sentiments of the
shareholders of the Company, it was decided to accept the request of the shareholders for non-payment of
any remuneration to Mr. Tulsi R.Tanti, Chairman and Managing Director for the financial year 2009-10 and
thereafter in case of losses during the balance tenure of earlier appointment. Accordingly, the remuneration
paid during the financial year 2009-10 and 2010-11, as the case may be, was refunded by Mr. Tulsi R.Tanti,
Chairman and Managing Director.

(3) Job Profile and his suitability:

Mr. Tulsi R.Tanti as a Managing Director is looking after the day-to-day activities of the Company. He also assists
in project planning and execution thereof. With the educational background and rich experience held by Mr. Tulsi
R.Tanti, the Company has been tremendously benefited as also would continue to get the advantage of knowledge
and experience of Mr. Tulsi R.Tanti for the years to come.

Suzlon Energy Limited, Annual Report 2010-2011 149

 (4) Remuneration Proposed:

The remuneration proposed to be paid to Mr. Tulsi R.Tanti has been approved by the Remuneration Committee and
the Board of Directors at their respective meetings held on July 30, 2011 as under:

Yearly Salary Perquisites

Rs. 2,00,00,000/- Perquisites shall be allowed in addition to Salary as more particularly described
in the Resolution

The remuneration as approved would be subject to the provisions of Section 198 and 309 of the Companies Act,
1956. However, in the event of loss or inadequacy of profits, the Managing Director would be paid remuneration
in terms of Part II Section II (B) of Schedule XIII to the Companies Act, 1956.

(5) Comparative remuneration profile with respect to industry, size of the Company, profile of the position and
person:

The prevalent levels of remuneration in power industry are higher. Taking into account the turnover of the
Company, the contribution being made by Mr. Tulsi R.Tanti in the affairs of the Company, his academic background,
rich experience, the increasing key role he would continue to play in the growth of the Company, the proposed
remuneration is reasonable and in lines with the remuneration levels in the industry across the Country.

(6) Pecuniary Relationship, directly or indirectly, with the Company, or relationship with the managerial personnel,
if any:

Mr. Tulsi R.Tanti has no pecuniary relationship, directly or indirectly, with the Company. Mr. Tulsi R.Tanti is related
to Mr. Vinod R.Tanti and Mr. Girish R.Tanti, the Directors of the Company and except for that Mr. Tulsi R.Tanti does
not have any other relationship with any managerial personnel of the Company.

III. Other Information:

(1) Reasons for loss/inadequacy of profit, if any:

The Company had shown a gradual and consistent increase in profits till financial year 2007-08. The profitability
declined in the financial year 2008-09. During the financial year 2009-10 the Company incurred losses, mainly
attributable to following reasons:

• The then prevailing uncertain economic environment adversely impacted business volumes, delay in timely
realization of receivables from the customers. Implementation delays encountered in debt consolidation
and refinancing arrangements further constrained the liquidity situation.

• The Company incurred cash losses during the financial year 2009-10, which was mainly attributable to the
difficult global economic environment that adversely impacted business volume and product pricing. Adverse
foreign exchange movement, lower absorption of fixed overheads and higher finance charges, primarily due
to delayed collections from customers, and cost of debt consolidation and refinancing arrangement also
hampered the Company’s profitability.

(2) Steps taken/proposed to be taken to improve the performance of the Company:

Over the past few years, the Company has taken various initiatives as under to de-lever its balance sheet and
solidify a long-term sustainable capital structure:

• The repayment of the Acquisition Loans and replacing the same with Five-year USD 465 million loan with a
two-year moratorium on repayments of principal as well as a two-year holiday on debt covenants

• Consolidation and refinancing of its existing Rupee denominated term loans and working capital loans
through new debt facilities from a syndicate of banks.

• Part disinvestment and intention to dispose off balance investments in Hansen Transmissions International
NV, Belgium

• The Company has successfully reached the threshold of 95% holding limit in REpower System SE, Germany,
a renowned WTGs manufacturer worldwide and particularly in matured and respected European markets
and has initiated squeeze-out proceedings. This will give the impetus to the operations of the Company by
way of synergies.

Also there is a strong revival in Indian wind market. New policy initiatives support long-term growth of the
Company. Also the Company has orders from PSUs and large corporates including repeat orders.

(3) Expected increase in productivity and profits in measurable terms:

Considering various analysis carried out by the Company based on the data made available by Ministry of New and
Renewable Energy, Government of India and other international agencies related to wind energy/non-conventional

150 Suzlon Energy Limited, Annual Report 2010-2011

 energy sector, the future of non-conventional energy especially of wind energy industry looks bright in the coming
years.

In light of above, you are requested to accord your approval to the Special Resolution as set out at Agenda Item No.8 of the
accompanying Notice for appointment of Mr. Tulsi R.Tanti as the Managing Director on revised terms and conditions.

The copy of the draft agreement to be entered into between the Company and Mr. Tulsi R.Tanti, Managing Director is available
for inspection at the Registered Office of the Company on all working days during business hours till the date of the Annual
General Meeting of the Company.

Mr. Tulsi R.Tanti, himself, Mr. Vinod R.Tanti, Wholetime Director and Mr. Girish R.Tanti, the Director may be deemed to be
concerned or interested in the resolution appointing Mr. Tulsi R.Tanti as Managing Director.

Agenda Item No.9:

Mr. Vinod R.Tanti has been appointed as the Wholetime Director of the Company for a period of three years with effect from
November 1, 2010 in terms of the approval granted by the Board of Directors and Remuneration Committee on October 30,
2010 and approval of the Remuneration Committee and the Board of Directors both dated July 30, 2011.

In terms of the provisions of Section 269 read with Schedule XIII to the Companies Act, 1956 the appointment of Wholetime
Director is subject to approval of members at the general meeting of the Company held first after such appointment.

The details of Mr. Vinod R.Tanti as required to be given in terms of Clause 49(IV)(G) of the Listing Agreement have been provided
separately under Profile of Directors seeking appointment / re-appointment.

In the aforesaid connection and as required under Part II Section II (B) of Schedule XIII to the Companies Act, 1956, the following
information is furnished:

I. General Information:

(1) Nature of Industry:

The Company is engaged in the business of design, development, manufacturing and supply of Wind Turbine
Generators of various rated capacities.

(2) Date or expected date of commencement of commercial production:

The Company has been operational since last 16 years.

(3) Financial Performance:

The Company was incorporated on April 10, 1995 and the certificate for commencement of business was issued on
April 25, 1995. The following are the results of the Company for the last three years, at glance:

(Rupees in Crores)
Financial Parameters Financial Year

2008-09 2009-10 2010-11

Turnover 7235.58 3488.68 4357.55

Net Profit (as per P & L Account) (469.27) (1414.09) (185.66)

Amount of Equity Dividend - - -

Rate of Equity Dividend - - -

(4) Export Performance, Net Foreign Exchange Collaborations:

As on March 31, 2011, the Company does not have standalone export orders. However, the Company’s domestic
subsidiaries have export orders which would be considered under consolidated foreign exchange earnings.

(5) Foreign investments or collaborations, if any:

As on June 30, 2011, foreign investments in the Company were as under:

• Foreign Institutional Investors: 23,08,37,623

• Non-Resident Indians: 2,17,52,245

The Company has no foreign collaboration as on date.

Suzlon Energy Limited, Annual Report 2010-2011 151

II. Information about the appointee:

(1) Background details, Recognition/Awards:

Mr. Vinod R.Tanti holds a Degree in Civil Engineering and has been associated with Suzlon right from its inception.
In his 24 years of industry experience, he has handled diverse portfolios, largely on a Conceive - Design - Build
- Operate and Transfer model. He contributes to the Company his experience of the entire wind value chain
segments as well as process centricity and innovation. His focus areas are creating alignment and deriving synergy
within and between value chain components.

(2) Past Remuneration:

Mr. Vinod R.Tanti has been appointed as the Wholetime Director of the Company for a period of three years
with effect from November 1, 2010 in terms of the approval of the Board of Directors and that of Remuneration
Committee both dated October 30, 2010 however without any remuneration and accordingly no remuneration has
been paid to Mr. Vinod R.Tanti during the year 2010-11.

The terms of appointment were varied in terms of approval granted by the Remuneration Committee and Board
of Directors both on July 30, 2011 providing for payment of remuneration with effect from April 1, 2011 for the
remaining tenure of his office.

(3) Job Profile and his suitability:

Mr. Vinod R.Tanti as Wholetime Director is looking after the day-to-day activities of the Company especially Supply
chain management. He also assists in project planning and execution thereof. He contributes to the Company his
experience of the entire wind value chain segments as well as process centricity and innovation. His focus areas
are creating alignment and deriving synergy within and between value chain components.

(4) Remuneration Proposed:

The remuneration proposed to be paid to Mr. Vinod R.Tanti has been approved by the Remuneration Committee
and the Board of Directors at their respective meetings held on July 30, 2011 as under:

Yearly Salary Perquisites

Rs. 1,20,00,000/- Perquisites shall be allowed in addition to Salary as more particularly described
in the Resolution

The remuneration as approved would be subject to the provisions of Section 198 and 309 of the Companies Act,
1956. However, in the event of loss or inadequacy of profits, the Wholetime Director would be paid remuneration
in terms of Part II Section II (B) of Schedule XIII to the Companies Act, 1956.

(5) Comparative remuneration profile with respect to industry, size of the Company, profile of the position and
person:

The prevalent levels of remuneration in power industry are higher. Taking into account the turnover of the Company,
the contribution being made by Mr. Vinod R.Tanti in the affairs of the Company, his academic background, rich
experience, the increasing key role he will play in the growth of the Company, the proposed remuneration is
reasonable and in lines with the remuneration levels in the industry across the Country.

(6) Pecuniary Relationship, directly or indirectly, with the Company, or relationship with the managerial personnel,
if any:

Mr. Vinod R.Tanti has no pecuniary relationship, directly or indirectly, with the Company. Mr. Vinod R.Tanti is related
to Mr. Tulsi R.Tanti, Managing Director and Mr. Girish R.Tanti, the Director of the Company and except for that Mr.
Vinod R.Tanti does not have any other relationship with any managerial personnel of the Company.

III. Other Information:

(1) Reasons for loss/inadequacy of profit, if any:

The Company had shown a gradual and consistent increase in profits till financial year 2007-08. The profitability
declined in the financial year 2008-09. During the financial year 2009-10 the Company incurred losses, mainly
attributable to following reasons:

• The then prevailing uncertain economic environment adversely impacted business volumes, delay in timely
realization of receivables from the customers. Implementation delays encountered in debt consolidation
and refinancing arrangements further constrained the liquidity situation.

• The Company incurred cash losses during the financial year 2009-10, which was mainly attributable to the
difficult global economic environment that adversely impacted business volume and product pricing. Adverse

152 Suzlon Energy Limited, Annual Report 2010-2011

 foreign exchange movement, lower absorption of fixed overheads and higher finance charges, primarily due
to delayed collections from customers, and cost of debt consolidation and refinancing arrangement also
hampered the Company’s profitability.

(2) Steps taken/proposed to be taken to improve the performance of the Company:

Over the past few years, the Company has taken various initiatives as under to de-lever its balance sheet and
solidify a long-term sustainable capital structure:

• The repayment of the Acquisition Loans and replacing the same with Five-year USD 465 million loan with a
two-year moratorium on repayments of principal as well as a two-year holiday on debt covenants

• Consolidation and refinancing of its existing Rupee denominated term loans and working capital loans
through new debt facilities from a syndicate of banks.

• Part disinvestment and intention to dispose off balance investments in Hansen Transmissions International
NV, Belgium

• The Company has successfully reached the threshold of 95% holding limit in REpower System SE, Germany,
a renowned WTGs manufacturer worldwide and particularly in matured and respected European markets
and has initiated squeeze-out proceedings. This will give the impetus to the operations of the Company by
way of synergies.

Also there is a strong revival in Indian wind market. New policy initiatives support long-term growth of the
Company. Also the Company has orders from PSUs and large corporates including repeat orders.

(3) Expected increase in productivity and profits in measurable terms:

Considering various analysis carried out by the Company based on the data made available by Ministry of New and
Renewable Energy, Government of India and other international agencies related to wind energy/non-conventional
energy sector, the future of non-conventional energy especially of wind energy industry looks bright in the coming
years.

In light of above, you are requested to accord your approval to the Special Resolution as set out at Agenda Item No.9 of the
accompanying Notice for appointment of Mr. Vinod R.Tanti as the Wholetime Director on revised terms and conditions.

The copy of the draft agreement to be entered into between the Company and Mr. Vinod R.Tanti, Wholetime Director is available
for inspection at the Registered Office of the Company on all working days during business hours till the date of the Annual
General Meeting of the Company.

Mr. Vinod R.Tanti, himself, Mr. Tulsi R.Tanti, Managing Director and Mr. Girish R.Tanti, the Director may be deemed to be
concerned or interested in the resolution appointing Mr. Vinod R.Tanti as Wholetime Director.

Agenda Item No.10:

The resolution contained in the business of the Notice relates to a proposal by the Company to create, offer, issue and allot
equity shares, GDRs, ADRs, FCCBs, SPNs, FCDs, NCDs with warrants and/or such other securities convertible into or linked to
Equity Shares and/or any other instruments and/or combination of instruments as stated in the resolution (the “Securities”).
The Company intends to issue Securities for a value of up to Rs.5,000 Crores.

The Special Resolution also seeks to empower the Board of Directors to undertake a qualified institutional placement with
qualified institutional buyers as defined by SEBI ICDR Regulations. The Board of Directors may at its discretion adopt this
mechanism as prescribed under Chapter VIII of the SEBI ICDR Regulations for raising the funds for the expansion plans of the
Company, without the need for fresh approval from the shareholders.

In view of the expanding operations of the Company, the Company intends to capitalise on its potential. Thus it is proposed
to create, offer, issue and allot equity shares, GDRs, ADRs, FCCBs, SPNs, FCDs, NCDs with warrants and/or such other
securities convertible into or linked to Equity Shares and/or any other instruments and/or combination of instruments to
the extent of Rs.5,000 Crores in one or another manner and in one or more tranches. Such further issue of such securities
would provide a platform to the Company to meet to its fund requirements and improve the financial leveraging strength
of the Company.

Similar resolution was passed by the Shareholders on November 16, 2010 by way of postal ballot. The Company has since
thereafter issued US$ 175,000,000 Convertible Bonds due 2016. Since the market conditions have changed from the last
approval as also to meet to various regulatory requirements and as a matter of prudent practice, an additional / fresh resolution
is proposed to be passed to create, offer, issue and allot equity shares, GDRs, ADRs, FCCBs, SPNs, FCDs, NCDs with warrants
and/or such other securities convertible into or linked to Equity Shares and/or any other instruments and/or combination of
instruments to the extent of Rs.5,000 Crores in one or another manner and in one or more tranches.

The detailed terms and conditions for the offer will be determined in consultation with the Advisors, Lead Managers, Underwriters
and such other authority or authorities as may be required to be consulted by the Company considering the prevailing market

Suzlon Energy Limited, Annual Report 2010-2011 153

conditions and other relevant factors.

The pricing of the international issue(s), if any, will be free market pricing and may be at a premium or discount to the market price
in accordance with international practices, subject to applicable Indian laws and guidelines. The same would be the case if the Board
of Directors decide to undertake a qualified institutional placement under Chapter VIII of the SEBI ICDR Regulations. As the pricing
of the offering cannot be decided except at a later stage, it is not possible to state the price or the exact number of Securities or
shares to be issued. For reasons aforesaid, an enabling resolution is therefore proposed to be passed to give adequate flexibility
and discretion to the Board to finalise the terms of the issue. The Securities issued pursuant to the offering(s) would be listed on the
Indian stock exchanges and/or internationally recognised stock exchange(s) and may be represented by Securities or other Financial
Instruments outside India.

The Special Resolution seeks to give the Board the powers to issue Securities in one or more tranche or tranches, at such time or
times, at such price or prices and to such person(s) including institutions, incorporated bodies and/or individuals or otherwise as the
Board may in its absolute discretion deem fit.

The consent of the shareholders is being sought pursuant to the provisions of Section 81(1A) and other applicable provisions of the
Companies Act, 1956 and in terms of the provisions of the Listing Agreement executed by the Company with the Stock Exchanges
where the Equity Shares of the Company are listed.

Section 81(1A) of the Companies Act, 1956 and the relevant clause of the Listing Agreement with the Stock Exchanges where the
Equity Shares of the Company are listed provides, inter alia, that when it is proposed to increase the issued capital of a company by
allotment of further shares, such further shares shall be offered to the existing shareholders of such company in the manner laid
down in Section 81 unless the shareholders in a general meeting decide otherwise. Since the Special Resolution proposed in the
business of the Notice results in the issue of shares of the Company otherwise than to the members of the Company, consent of
the shareholders is being sought pursuant to the provisions of Section 81(1A) and other applicable provisions of the Companies Act,
1956 and the Listing Agreement.

The Special Resolution, if passed, will have the effect of allowing the Board of Directors to issue and allot Securities to the investors
who may or may not be the existing shareholders of the Company.

The Board of Directors believes that the issue of Securities is in the interest of the Company and therefore recommends the special
resolution as set out at Agenda Item no.10 of the accompanying Notice for your approval.

None of the Directors of the Company is in any way concerned or interested in the said resolution.

By order of the Board of Directors of

Suzlon Energy Limited

Place : Pune Hemal A.Kanuga,

Dated : July 30, 2011 Company Secretary

Profile of Directors seeking appointment/reappointment at the 16th Annual General Meeting as stipulated under Clause 49 of the
Listing Agreement with stock exchanges is as under:

Mr. Girish R.Tanti

Mr. Girish R.Tanti is one of the founding members of the Company. He is a graduate of Cardiff University Business School and
holds a degree in Electronics Engineering. He has brought to Suzlon an understanding of the dynamics of technology and business
management. He has played a key role in Suzlon becoming a global corporation. Over the years, he has lead the International
Business Development, Human Resources, Information Technology, Communications and CSR functions in Suzlon. In his current role
as Director, he provides strategic direction and oversight towards the long-term objectives of the Group. Mr. Girish R.Tanti holds
116082000 equity shares in the Company. The details of other directorships and/or committee positions held by Mr. Girish R.Tanti
are given as under:

Name of the Indian company in which Director Name of Committee in which member

SE Solar Limited Nil

Tanti Holdings Private Limited Nil

Sugati Holdings Private Limited Nil

Samanvaya Holdings Private Limited Nil

Mr. Ajay Relan

Mr Ajay Relan is one of the founding partners for CX Advisors Private Limited, which provides investment advisory services to Private
Equity firms. Prior to co-founding the Indian Sub-Advisor, Mr. Relan was the head of CVCI in India, a position that he held since
the inception of that business in India in 1995. Prior to this, Mr. Relan worked with several financial firms in multiple geographies,

154 Suzlon Energy Limited, Annual Report 2010-2011

starting with Citi in 1976 and the last being the CEO of a Citi-affiliated brokerage firm, Citicorp Securities & Investments Ltd. Mr.
Relan has served on the boards of several CVCI portfolio companies, such as HT Media, Yes Bank, i-FLEX and Progeon, among
others. Mr. Relan earned a Masters in Business Administration from the Indian Institute of Management, Ahmedabad and a
B.A. in Economics from St. Stephen’s College, Delhi University where he was top ranked in the University. He was appointed on
board of the Company as a representative of Citicorp International Finance Corporation Inc. on April 19, 2004. He ceased to be
the representative director on January 29, 2007 and was appointed as an independent director on the Board with effect from
January 29, 2007.

Mr. Ajay Relan does not hold any shares in the Company. The details of other directorships and/or committee positions held by
Mr. Ajay Relan are given as under:

Name of the Indian company in which Director Name of Committee in which member

Micro Abrasives (India) Private Limited Nil

Bendochy Agro Products Private Limited Nil

CX Advisors Private Limited Nil

Ms. Mythili Balasubramanian

Ms. Mythili Balasubramanian is BSC, CAIIB, ACIB (Lon.) and has over 30 years of experience in the banking and financial sector.
After an initial period of about 8 years in the financial and banking sector, she joined IDBI in 1987 and during the past 23 years
of service has risen to the rank of Chief General Manager. During her tenure she has managed varied portfolios including project
finance, resource raising, treasury and investment. She was also chosen as a core team member by IDBI for setting up its mutual
fund administration and was also in charge of equity research wing and project development and marketing. Presently, she is
the Chief General Manager for IDBI and is heading the structuring, syndication and advisory department.

Ms. Mythili Balasubramanian does not hold any shares in the Company. She does not hold any directorship or any committee
position in any other company.

Mr. Rajiv Ranjan Jha

Mr. Rajiv Ranjan Jha, aged 45 years has been working with Power Finance Corporation Limited (PFC) since March 1997. He holds
a Bachelor Degree in Science (Mechanical Engg.) from Ranchi University and a Diploma in Management from IGNOU. Mr. Jha has
overall 23 years of experience and is presently holding the position as Additional General Manager (Projects), PFC and is single
point contact for the State Utilities in Haryana and Punjab as well as handling the Renewable Energy portfolio of PFC. He has
also worked on Project Appraisal (especially of Independent Private Power Projects) & Ultra Mega Power Projects in PFC. Before
joining PFC, he has worked with Visakhapatnam Steel Plant from November 1988 to February 1997 and dealt with Operation
and Maintenance of their Captive Power Plant and also in Material Planning.

Mr. Rajiv Ranjan Jha does not hold any shares in the Company. He does not hold any directorship or any committee position in
any other company.

Mr. Tulsi R.Tanti

Mr. Tulsi R.Tanti is the founder of the Company and has been the Chairman and Managing Director since its inception in 1995.
Under his stewardship, the Company has grown to be a leading wind turbine manufacturer in the world. Mr. Tulsi R.Tanti is a
Commerce Graduate and holds a Diploma in Mechanical Engineering. He is responsible for the overall strategic direction of the
Company and has received a number of awards in recognition of his leadership of the wind energy industry in India, his business
achievements and stewardship of the renewable energy cause. The awards include “Champion of the Earth 2009” award by
United Nations Environment Program; “Global Indian Award 2009” by Canada India Foundation; “Hero of the Environment
Award” by TIME Magazine; “Rajiv Gandhi Award 2007” for the most successful industrialist in India; “Ernst & Young Entrepreneur
of the Year 2006” award by Ernst & Young; “India Business Leader Award 2006” by the television channel CNBC TV18 in the
category “The most promising entrant into the big league”; “Terialumni Award” for outstanding “Entrepreneurship in Energy -
Environment Technologies 2006” by The Terialumni Trust; “Best Renewable Man of the Decade”, which is a lifetime achievement
award from the Foundation of Indian Industry and Economists in 2005; “World Wind Energy Award 2003” by World Wind
Energy Association; “Business Leadership Award 2002” by Solar Energy Society of India, etc. The details of other directorships
and/or committee positions held by Mr. Tulsi R.Tanti are given as under:

Name of the Indian company in which Director Name of Committee in which Mr. Tulsi R.Tanti is a member

Suruchi Holdings Private Limited Nil

Sugati Holdings Private Limited Nil

Suzlon Energy Limited, Annual Report 2010-2011 155

Mr. Vinod R.Tanti

Mr. Vinod R.Tanti holds a Degree in Civil Engineering and has been associated with Suzlon right from its inception. In his 24 years
of industry experience, he has handled diverse portfolios, largely on a Conceive - Design - Build - Operate and Transfer model. He
contributes to the Company his experience of the entire wind value chain segments as well as process centricity and innovation.
His focus areas are creating alignment and deriving synergy within and between value chain components. He was appointed as
an Executive Director with effect from November 1, 2010. The details of other directorships and/or committee positions held by
Mr. Vinod R.Tanti are given as under:

Name of the Indian company in which Director Name of Committee in which member

Suzlon Infrastructure Services Limited Audit Committee

Tanti Holdings Private Limited Nil

SE Energy Park Limited Audit Committee

SE Composites Limited Audit Committee

SE Electricals Limited Audit Committee

Suzlon Wind International Limited Audit Committee

Suzlon Power Infrastructure Limited Nil

Suzlon Engitech Limited Nil

Suzlon Structures Limited Audit Committee

Suzlon Generators Limited Audit Committee

Synew Steel Limited Nil

SE Forge Limited Audit Committee

SE Solar Limited Nil

Suruchi Holdings Private Limited Nil

Sanman Holdings Private Limited Nil

156 Suzlon Energy Limited, Annual Report 2010-2011

 SUZLON ENERGY LIMITED
Registered Office: “Suzlon”, 5, Shrimali Society, Near Shri Krishna Complex, Navrangpura, Ahmedabad - 380 009

ATTENDANCE SLIP
16th Annual General Meeting on Tuesday, September 27, 2011

DP ID____________________________ Folio No/Client ID__________________________

"

Full name of the shareholder/proxy attending the meeting

_____________________________________________________________________________________________________________
(First Name) (Second Name) (Surname)

FIRST HOLDER/JOINT HOLDER/PROXY

Strike out whichever is not applicable)

Full name of first holder (if joint holder/proxy attending)

____________________________________________________________________________________________________________
(First Name) (Second Name) (Surname)

_______________________________
Signature of the Shareholder/proxy

"

SUZLON ENERGY LIMITED

Registered Office: “Suzlon”, 5, Shrimali Society, Near Shri Krishna Complex, Navrangpura, Ahmedabad - 380 009

PROXY FORM
16th Annual General Meeting on Tuesday, September 27, 2011

DP ID____________________________ Folio No/Client ID_______________________________

I/We________________________________________________ of ___________________________
being a member(s) of Suzlon Energy Limited hereby appoint __________________________________________________________ of
_____________________________________________________ or failing him/her _______________________________________ of
______________________________________________ as my/our proxy to attend and vote for me/us and on my/our behalf at the
"

16th Annual General Meeting of the Company to be held on Tuesday, September 27, 2011, at 11:00 am, at J. B. Auditorium, AMA
Complex, ATIRA, Dr. Vikram Sarabhai Marg, Ahmedabad - 380015 and at any adjournment thereof.

Affix 15
paise
Signed this _______ day of _______ 2011.
Revenue
Stamp

Signature___________________
Note:
1. The proxy need not be a member of the Company.
2. The proxy form duly signed across 15 paise Revenue stamp should reach the Company’s Registered Office at least 48 hours
before the time of the meeting.
21109031_Suzlon Energy_AR_2k10-2k11_Ordinary_Cover_OP-1
Monday, August 22, 2011 7:44:08 PM