Adani Green Energy Ltd
Chairman Speech
Optimism comes from Resilience. Resilience comes from Belief. Belief is
Optimism
To say the world is in uncharted waters would be an understatement,
The adverse impact of a mix of the pandemic, armed conflict and climate
change has exposed the fragility of the global system that we had largely considered as
having competently learned how to manage itself. It has now dawned on governments across
the world that the implications of this multidimensional crisis are hard to predict, may
complicate further and that signs of its damaging effects - uncontrolled inflation,
disrupted food supplies, increased human displacement, exposed healthcare machinery,
stalled education levels and faltering job creation ecosystems - are evident and testing
the resilience of every nation.
Resilience is defined as the characteristic that makes it possible to
rebound into shape; it is the ability to withstand crises; it is the ability to face
uncertainties with curiosity and optimism. This capacity to rebound is becoming harder to
model or predict as the crises drivers are becoming harder to anticipate and increasingly
intermingled. While there is always room for debate, there can be no denying that, looking
back, India has emerged far better in its handling of the Covid-19 crisis from the
humanitarian and economic perspectives than most developed economies. India has been able
to take a mature approach to the ongoing conflict and has been one of the most aggressive
nations in terms of establishing a renewable energy target for itself; while doing all of
this, India has also emerged as the fastest growing major economy.
The overarching takeaway is that despite global instability, India has
fared better than almost any other major nation. While there were situations over the past
24 months when it appeared that events were getting out of control, we must give credit
where credit is due - India was able to bounce back each time, a testimony to our nation's
resilience. In my view, utopian as some may call it, India's resilience comes from its
historic culture that has been shaped across thousands of years - a model of co-existence
that actually works and the philosophy of 'vasudhaiva kutumbakam', which means that the
world is one family.
A culture of resilience
It is India's inherent resilience that provides our nation its
underlying optimism. My belief in our nation has never been higher. To use a cricketing
analogy, we are now playing on one of the strongest home grounds and on one of the firmest
pitches that has ever existed. This pitch is expected to remain firm for several decades.
Optimism comes from resilience. Resilience comes from belief. And belief is optimism.
In our case, it is this resilience, optimism and belief that drives us.
The primary reason for the success of the Adani Group comes from our alignment with the
India growth story. Never have we shied from investing in India, never have we slowed our
investments, and never have we feared to enter adjacent sectors - our resilience comes
from this unshakeable belief and confidence in the aspirations of our fellow Indians and
the future of India.
During the journey of more than 25 years, there were uncharted waters
we entered and multidimensional crises that we faced. While we may have stumbled a few
times, we were always able to get back on our feet. Our ability to rise after every
stumble meant we grew bigger and stronger by drawing on our experience. It is these
experiences that have enriched us with resilience and laid the foundation of our optimism.
At a fundamental level, our strategy is linked to the strategy of the
nation. Over the past decades, we have always believed in the policies announced by the
Government, have continued to invest through all economic cycles, watched for emerging
sectors critical for the country's growth and entered new sectors with a confidence in our
learning and operating abilities. We have grown adjacency by adjacency without getting
hung up on textbook business models. We have built infrastructure anticipating a far
larger and greater India; this confidence has paid dividends.
The sum of these investments of the past empowered us to address the
present crisis and set us up stronger to handle any new crisis in the future. It is this
future that unfolded over the period 2021-22. This was a year when we announced ourselves
to the world. In 2021-22, our confidence in our ability was validated. Our belief in our
past defines our ability to believe in our future, translating into the big bets that we
make.
Preparing to go 'green'
The best recent evidence for our confidence and belief in the future
has been the USD 70 billion investment we announced in facilitating India's 'green'
transition. We are already one of the world's largest developers of solar power. Our
strength in renewables will empower us enormously in our effort to make 'green' hydrogen,
the fuel of the future; it will equip us to produce the least expensive 'green' electron
and the least expensive hydrogen. We are leading the race to transform India from a
country that is over-reliant on imported oil and gas to a country that can become a net
exporter of clean energy. This would be a 'never- done-before' transformation in fortunes
in a stunningly short period of time across the largest scale. This transformation will
help reshape India's energy footprint in an extraordinary way.
While we are now a major global renewable energy player, we made
remarkable progress in several other industries. In one stroke, we have become the largest
airport operator in India. Around the airports where we operate, we are engaged in the
adjacent business of building aerotropolises and creating localised community-based
economic centres. We have made entries in sectors ranging from data centres, super apps
and industrial clouds to defence and aerospace, metals and materials - all aligned with
the Government's vision of an Atmanirbhar Bharat.
We continue to grow as builders of India's infrastructure, winning some
of the largest road contracts in the nation and growing our already substantial market
share in businesses like ports, logistics, transmission and distribution, city gas and
piped natural gas. The successful IPO of Adani Wilmar made us the largest FMCG company in
the country and we are now the second largest cement manufacturer in India. This year, our
combined Group market capitalisation exceeded USD 200 billion. We raised billions of
dollars from the international markets - a validation of confidence in the India and Adani
growth stories. This growth and success have been recognised around the world. Foreign
governments now come to us with proposals to work in their geographies and help build
their infrastructure. The result is that in 2022 we laid the foundation to seek a broader
expansion beyond India's boundaries.
Robust results, record numbers
The growth in our market capitalisation has been supported by a robust
and sustained growth in our cash flows. Our focus on operational excellence and accretive
capacity addition delivered, across our portfolio, an EBITDA growth of 26%. Portfolio
EBITDA stood at H42,623 crore. This growth was diversified and reflected across our
businesses, the results speaking for themselves.
Group highlights
Our Utilities portfolio grew 26%
Our Transport and Logistics portfolio grew 19%
Our FMCG portfolio grew 34%; and
Our Incubator business, represented by AEL, grew 45%
The high growth of our incubator AEL provides the group with a robust
foundation for the continued development of new businesses for yet another big decade.
AELs unique business model has no parallel and we intend to leverage this further.
Segment highlights
AGEL
Adani Green Energy Limited added 1,940 MW operational capacity
in FY 2021-22 (greenfield commissioning 200 MW and inorganic addition 1,740 MW)
Adani Green Energy Limited's solar capacity utilisation factor
(CUF) improved 130 bps YoY to 23.8% and wind CUF improved 400 bps YoY to 30.8% in FY
2021-22
ATL
Adani Transmission Limited added 1,104 ckm to its network,
reaching 18,795 ckm, and sold a record 7,972 million units during the year.
APSEZ
Adani Ports and Special Economic Zone Limited cargo volume grew
26% to 312 MMT in FY 2021-22; the journey from 200 MMT to 300 MMT in cargo volume was
achieved in the record time of just three years.
Adani Ports and Special Economic Zone Limited also handled
record container volume of 8.2 million TEUs, a growth of 14%
ATGL
Adani Total Gas Limited added 117 CNG stations, 556 commercial,
154 industrial and 85,840 domestic customers, a combined volume of 697 MMSCM (CNG+PNG)
Strategic highlights
Adani Green Energy Limited completed the acquisition of
Softbank's 5 GW renewable energy portfolio
Adani Enterprises Limited commenced operations of its Bravus
mine in Australia.
Adani Enterprises Limited took over operations of the Guwahati,
Jaipur and Thiruvananthapuram airports and completed the acquisitions of MIAL and NMIAL.
While we can look back and feel content, we are only now gathering
momentum, What we have built over two decades is India's largest integrated infrastructure
business based on a rapid extension into adjacent businesses. The result is that this is
now being transformed into an integrated 'platform of platforms' that combines energy with
logistics. This is moving us closer to an unprecedented access to the Indian consumer, I
know of no company that has such a business model with potential access to an unlimited
B2B and B2C market for the next several decades.
A landmark year
It is here that I also want to take a moment to reflect on 2022 as a
year with special personal meanings, It represents the 100th birth anniversary of my
inspiring and role model father Shri Shantilal Adani, and my 60th birthday, To mark this
milestone, the Adani family came together and decided to contribute H60,000 crore towards
charitable activities related to healthcare, education and skill development, especially
for rural India, These three areas should be seen holistically, rather than separately,
because they collectively form the drivers for an equitable and future-ready India.
We have an opportunity in India to decisively lift tens of millions of
people permanently out of poverty, We owe it to ourselves and our country to do everything
we can to catalyse that process, Our experience in large project planning and execution
and the learnings from the ongoing work done by the Adani Foundation will help us uniquely
accelerate and implement these programmes across societies that need them the most.
The road ahead
Getting back to the theme of optimism as a driving force for a society,
Martin Seligman, often referred to as the 'father of positive psychology', wrote in the
Harvard Business Review that he came to his insights into the power of optimism 'the long,
hard way, through many years of research on failure and helplessness,' Essentially, he
discovered over several years of studies, that resilient people develop the courage of
interpreting setbacks as temporary, local and changeable, A quote attributed to Winston
Churchill echoes Seligman's findings on resilience, "Success is not final,"
Churchill is supposed to have said, -failure is not fatal: it is the courage to continue
that counts".
The reason I have always been inspired by writing and thinking around
resilience is because as an entrepreneur, my philosophy has always been to keep trying.
I am an incurable optimist, My optimism is founded on my belief in our
ability to create a better future, This is why I always argue that India has become one of
the greatest countries in which to be an entrepreneur, The prospects and potential for the
future are dazzlingly bright, In India, I see a real relish to finally reclaim our former
economic stature and our position as a pivotal force in global affairs, There will be
bumps along the road, as has been the case in the past, and is expected to be the case in
the future, However, there cannot be any doubt that the largest middle-class that will
ever exist, augmented by an increase in the working age and consuming population share,
will have a positive impact on India's growth rates, much in line with the demographic
dividend that India enjoys.
I have no reason to believe that over the next two decades we will not
suitably address this challenge, It is a virtuous cycle that is driven by the growth in
the middle-class population and India today enjoys the world's firmest pitch on which to
bat.
Adani Green Energy Ltd
Directors Reports
Dear Shareholders,
Your Directors are pleased to present the 8th Annual Report along with the
Audited Financial Statements of your
Company for the financial year ended March 31, 2023 (FY 2022-23).
Financial Performance
The Audited Financial Statements of your Company as on March 31, 2023, are prepared in
accordance with the relevant applicable Ind AS and Regulation 33 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 ("SEBI Listing Regulations") and the provisions of the Companies Act, 2013
("Act").
The summarized financial highlight is depicted below:
(H in Crore)
Particulars |
Consolidated |
Standalone |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
Revenue from operations |
7,792 |
5,133 |
7,629 |
10,672 |
Other Income |
841 |
415 |
780 |
438 |
Total Income |
8,633 |
5,548 |
8,409 |
11,110 |
Cost of Material Sold |
1,748 |
1,286 |
4,280 |
12,559 |
Changes in inventories |
- |
- |
3,218 |
(2,072) |
Employee Benefit Expenses |
40 |
34 |
36 |
26 |
Depreciation and Amortisation Expenses |
1,300 |
849 |
11 |
7 |
Finance Cost |
2,911 |
2,617 |
892 |
775 |
Foreign Exchange (gain)/ loss (net) |
559 |
(29) |
200 |
(51) |
Other Expenses |
514 |
303 |
38 |
37 |
Total Expenditure |
7,072 |
5,060 |
8,675 |
11,281 |
Profit / (Loss) before exceptional items and tax |
1,561 |
488 |
(266) |
(171) |
Exceptional items |
(194) |
64 |
(67) |
41 |
Profit / (Loss) before tax |
1,367 |
552 |
(333) |
(130) |
Tax Expense |
453 |
64 |
(5) |
(72) |
Profit / (Loss) before share in Joint Venture and tax |
914 |
488 |
(328) |
(58) |
Share of Profit / (Loss) from Joint Venture (net of tax) |
59 |
1 |
- |
- |
Net Profit / (Loss) for the year |
973 |
489 |
(328) |
(58) |
Other Comprehensive income / (loss) (net of tax) |
(56) |
(84) |
(52) |
(61) |
Total Comprehensive Income / (loss) for the year |
917 |
405 |
(380) |
(118) |
1. There are no material changes and commitments affecting the financial position of
your Company, have occurred between the end of the financial year and the date of this
report.
2. Further, there has been no change in nature of business of your Company.
Performance Highlights
Consolidated Financial Performance of your Company:
Your Company has recorded revenue from operations to the tune of Rs. 7,792 Crore during
the financial year
2022-23 (FY 2022-23) compared to Rs. 5,133 Crore in the corresponding previous
financial year.
During the year, your Company generated earnings before interest, depreciation and tax
(EBIDTA) of Rs. 5,772 Crore compared to Rs. 3,954 Crore in the previous year.
Net profit for the FY 2022-23 isH973 Crore as compared to Rs. 489 Crore in the previous
financial year.
Earnings per share stood at Rs. 5.41 on face value of Rs. 0/- each.
Operational Highlights:
Adani Green Energy Limited (AGEL / Company), is the renewable energy platform of Adani
Portfolio. Your Company has one of the world's largest renewable portfolios, with
locked-in growth of 20.4 GW across operational, under-construction, awarded and acquired
assets, catering to investment-grade counterparties. Your Company develops, builds, owns,
operates, and maintains utility-scale grid-connected solar and wind farm projects. AGEL is
focused on decarbonization of power generation and is helping India meet its
sustainability goals. Mercom Capital, the US-based think tank has ranked Adani Group as
the #1 global solar power generation asset owner. AGEL has also been awarded as Global
Sponsor of the Year by Project Finance International (PFI) recognizing AGEL as a key
driver of energy transition.
Operational capacity increases by 49% YoY to 8,086 MW
Sale of Energy increases by 58% YoY at 14,880 million units in FY23 vs. 9,426
million units in FY22
Solar portfolio CUF at 24.7% with 90 bps improvement YoY backed by 99.6% plant
availability
Wind portfolio CUF at 25.2% with 560 bps reduction YoY. The reduction is
primarily due to one-off disruption in transmission line (force majeure) for 150 MW plant
at Gujarat, which has now been restored fully
Hybrid portfolio CUF at 35.5% backed by 99.1% plant availability
Standalone Financial Performance:
Your Company has recorded revenue from operations to the tune of Rs. 7,629 Crore during
the FY 2022-23 compared to Rs. 0,672 Crore in the corresponding previous financial year.
Net loss for the FY 2022-23 is Rs. 328 Crore as compared to loss of Rs. 57 Crore in the
previous financial year.
Earnings per share stood at Rs. (2.47) on face value of Rs. 0/- each.
Dividend
The Board of Directors ("Board"), after considering holistically the relevant
circumstances and keeping in view the tremendous growth opportunities that your company is
currently engaged with, has decided that it would be prudent not to recommend any dividend
for the year under review.
Raising of funds by issuance of Equity Shares on preferential basis and corresponding
change in Share Capital
Pursuant to the shareholders' approval received at Extra-ordinary General Meeting held
on May 03, 2022, your Company has issued 2,00,18,198 equity shares of the face value of
Rs. 0 each, at a price of Rs. ,923.25 per equity share (at a premium of Rs. ,913.25 per
equity share), aggregating to ~H3,850 Crore to Green Energy Investment Holding RSC
Limited, for cash consideration, by way of a preferential issue on a private placement
basis in terms of provisions of Section 42, 62 and such other applicable provisions of the
Act read with the rules made thereunder and Chapter V of the Securities Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulations, 2018. Post completion of
the issuance, the equity paid up share capital of the Company has increased from
156,40,14,280 Equity Shares of Rs. 0/- each to 158,40,32,478 Equity Shares of Rs. 0/-
each. There was no Change in Authorised Share Capital of the Company.
Fixed Deposits
There were no outstanding deposits within the meaning of Section 73 and 74 of the Act
read with rules made thereunder at the end of the FY 2022-23 or the previous financial
years. Your Company did not accept any deposit during the year under review.
Particulars of loans, guarantees or investments
There are no loans, investments, guarantees, and security in respect of which
provisions of section 185 of the Companies Act, 2013 is applicable. The Company has
complied with the provisions of Section 186 of the Companies Act, 2013, to the extent
applicable. The particulars of loans, guarantee and investments made during the year under
review are disclosed in the financial statements.
Strategic Acquisitions
During the year under review, your Company has successfully completed the acquisition
of 100% equity share capital of three entities namely, Wind One Renergy Limited, Wind
Three Renergy Limited and Wind Five Renergy Limited from Inox Green Energy Services
Limited on October 10, 2022, each housing 50 MW operational wind power projects.
Subsidiaries, Joint Ventures and Associate Companies
A list of bodies corporate which are subsidiaries/ associates/ joint ventures of your
Company is provided as part of the notes to consolidated financial statements.
During the year under review, following changes have taken place in subsidiaries and
joint ventures:
During the year under review, following subsidiary (including step-down subsidiaries) /
Associate / Joint Venture were formatted:
1. Adani Renewable Energy Thirty Five Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
2. Adani Renewable Energy Thirty Six Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
3. Adani Renewable Energy Thirty Seven Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
4. Adani Renewable Energy Forty Limited (Wholly-owned subsidiary of Adani Renewable
Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
5. Adani Renewable Energy Forty One Limited (Wholly-owned subsidiary of Adani Renewable
Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
6. Adani Renewable Energy Forty Two Limited (Wholly-owned subsidiary of Adani Renewable
Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
7. Adani Renewable Energy Forty Three Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
8. Adani Renewable Energy Forty Four Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
9. Adani Renewable Energy Forty Five Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
10. Adani Renewable Energy Forty Seven Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
11. Adani Renewable Energy Forty Eight Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
12. Adani Renewable Energy Forty Nine Limited (Wholly-owned subsidiary of Adani
Renewable Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
13. Adani Green Energy SL Limited (Wholly-owned subsidiary of Adani Green Energy Pte
Limited, which is a Wholly-owned subsidiary of the Company)
During the year under review, following step-down subsidiary was disposed-off:
1. Adani Green Energy Thirty Limited (which was Wholly-owned subsidiary of Adani Green
Energy Holding Four Limited, which is a Wholly-owned subsidiary of the Company)
During the year under review, following overseas Companies which are
Wholly-owned subsidiaries of the Company were struck-off and thereafter Dissolved:
1. Adani Eight Limited (formerly known as SBE Eight Limited)
2. Adani Eight A Limited (formerly known as SBE Eight A Limited)
3. Adani Eleven Limited (formerly known as SBE Eleven Limited)
4. Adani Eleven A Limited (formerly known as SBE Eleven A Limited)
5. Adani Twelve Limited (formerly known as SBE Twelve Limited)
6. Adani Twelve A Limited (formerly known as SBE Twelve A Limited)
7. Adani Fourteen Limited (formerly known as SBE Fourteen Limited)
8. Adani Fourteen A Limited (formerly known as SBE Fourteen A Limited)
9. Adani Eighteen Limited (formerly known as SBE Eighteen Limited)
10. Adani Eighteen A Limited (formerly known as SBE Eighteen A Limited)
11. Adani Nineteen Limited (formerly known as SBE Nineteen Limited)
12. Adani Nineteen A Limited (formerly known as SBE Nineteen A Limited)
13. Adani Twenty Limited (formerly known as SBE Twenty Limited)
14. Adani Twenty A Limited(formerly known as SBE Twenty A Limited)
15. Adani Twenty One Limited (formerly known as SBE Twenty One Limited)
16. Adani Twenty One A Limited (formerly known as SBE Twenty One A
Limited)
17. Adani Eight A Holdings Limited (formerly known as SBE Eight A Holdings
Limited)
18. Adani Eleven A Holdings Limited (formerly known as SBE Eleven A
Holdings Limited)
19. Adani Twelve A Holdings Limited (formerly known as SBE Twelve A
Holdings Limited)
20. Adani Fourteen A Holdings Limited (formerly known as SBE Fourteen A
Holdings Limited)
21. Adani Eighteen A Holdings Limited (formerly known as SBE Eighteen A
Holdings Limited)
22. Adani Nineteen A Holdings Limited (formerly known as SBE Nineteen A
Holdings Limited)
23. Adani Twenty A Holdings Limited (formerly known as SBE Twenty A
Holdings Limited)
24. Adani Twenty One A Holdings Limited (formerly known as SBE Twenty One
A Holdings Limited)
25. Adani Twenty Two Limited (formerly known as SBE Twenty Two Limited)
26. Adani Twenty Three Limited (formerly known as SBE Twenty Three
Limited)
27. Adani Twenty Four Limited (formerly known as SBE Twenty Four Limited)
28. Adani Twenty Five Limited (formerly known as SBE Twenty Five Limited)
29. Adani Twenty Six Limited (formerly known as SBE Twenty Six Limited)
30. Adani Twenty Seven Limited (formerly known as SBE Twenty Seven
Limited)
31. Adani Twenty Eight Limited (formerly known as SBE Twenty Eight
Limited)
32. Adani Twenty Nine Limited (formerly known as SBE Twenty Nine Limited)
33. Adani Thirty Limited (formerly known as SBE Thirty Limited)
34. Adani Thirty One Limited (formerly known as SBE Thirty One Limited)
35. Adani Thirty Two Limited (formerly known as SBE Thirty Two Limited)
36. Adani Thirty Three Limited (formerly known as SBE Thirty Three
Limited)
37. Adani Thirty Four Limited (formerly known as SBE Thirty Four Limited)
38. Adani Thirty Five Limited (formerly known as SBE Thirty Five Limited)
39. Adani Thirty Six Limited (formerly known as SBE Thirty Six Limited)
40. Adani Cleantech Limited (formerly known as SBG Cleantech Limited)
41. Adani Energy Eight Limited (formerly known as SB Energy Eight Limited)
42. Adani Eleven Holdings Limited (Formerly known as SBE Eleven Holdings
Limited)
43. Adani Twelve Holdings Limited (formerly known as SBE Twelve Holdings
Limited)
44. Adani Fourteen Holdings Limited (formerly known as SBE Fourteen
Holdings Limited)
45. Adani Eighteen Holdings Limited (formerly known as SBE Eighteen
Holdings Limited)
46. Adani Nineteen Holdings Limited (formerly known as SBE Nineteen
Holdings Limited)
47. Adani Twenty Holdings Limited (formerly known as SBE Twenty Holdings
Limited)
48. Adani Twenty One Holdings Limited (formerly known as SBE Twenty One
Holdings Limited)
49. Adani Twenty Two Holdings Limited (formerly known as SBE Twenty Two
Holdings Limited)
50. Adani Twenty Three Holdings Limited (formerly known as SBE Twenty
Three Holdings Limited)
51. Adani Twenty Four Holdings Limited (formerly known as SBE Twenty Four
Holdings Limited)
52. Adani Twenty Five Holdings Limited (formerly known as SBE Twenty Five
Holdings Limited)
53. Adani Twenty Six Holdings Limited (formerly known as SBE Twenty Six
Holdings Limited)
54. Adani Twenty Seven Holdings Limited (formerly known as SBE Twenty
Seven Holdings Limited)
55. Adani Twenty Eight Holdings Limited (formerly known as SBE Twenty
Eight Holdings Limited)
56. Adani Twenty Nine Holdings Limited (formerly known as SBE Twenty Nine
Holdings Limited)
57. Adani Thirty Holdings Limited (formerly known as SBE Thirty Holdings
Limited)
58. Adani Thirty One Holdings Limited (formerly known as SBE Thirty One
Holdings Limited)
59. Adani Thirty Two Holdings Limited (formerly known as SBE Thirty Two
Holdings Limited)
60. Adani Thirty Three Holdings Limited (formerly known as SBE Thirty
Three Holdings Limited)
61. Adani Thirty Four Holdings Limited (formerly known as SBE Thirty Four
Holdings Limited)
62. Adani Thirty Five Holdings Limited (formerly known as SBE Thirty Five
Holdings Limited)
63. Adani Thirty Six Holdings Limited (formerly known as SBE Thirty Six
Holdings Limited)
64. Adani Energy Investments P.L.C. (formerly known as SB Energy
Investments P.L.C.)
65. Adani Wind Two Limited (formerly known as SBE Wind Two Limited)
66. Adani Wind Three Limited (formerly known as SBE Wind Three Limited)
67. Adani Energy Investments II Ltd (formerly known as SB Energy
Investments II Ltd)
Further, during the year under review, Adani Renewable Energy Holding Two Limited, a
Wholly Owned subsidiary of the Company has entered into binding term sheet for acquisition
of 50% equity interest in Essel Saurya Urja Company of Rajasthan Limited, housing 750 MW
solar park in the state of Rajasthan.
Pursuant to the provisions of Section 129, 134 and 136 of the Act read with rules made
thereunder and Regulation 33 of the SEBI Listing Regulations, the Company has prepared
consolidated financial statements of the Company and a separate statement containing the
salient features of financial statement of subsidiaries, joint ventures and associates in
Form AOC-1, which forms part of this Annual Report.
The annual financial statements and related detailed information of the subsidiary
companies shall be made available to the shareholders of the holding and subsidiary
companies seeking such information on all working days during business hours. The
financial statements of the subsidiary companies shall also be kept for inspection by any
shareholders during working hours at the Company's registered office and that of the
respective subsidiary companies concerned. In accordance with Section 136 of the Act, the
audited financial statements, including consolidated financial statements and related
information of the Company and audited accounts of each of its subsidiaries, are available
on website of the Company (www. adanigreenenergy.com).
Your Company has formulated a policy for determining Material subsidiaries. The policy
is available on your Company's website and link for the same is given in Annexure A
of this report.
Pursuant to Section 134 of the Act read with rules made thereunder, the details of
developments of subsidiaries and joint ventures of the Company are covered in the
Management Discussion and Analysis Report, which forms part of this Integrated Annual
Report.
Management Discussion and Analysis
The Management Discussion and Analysis Report for the year under review, as stipulated
under the SEBI Listing Regulations, is presented in a section forming part of this
Integrated Annual Report.
Directors and Key Managerial Personnels
As of March 31, 2023, your Company's Board had nine members comprising of two
Non-Executive and Non-Independent Directors, two Executive Directors, one Non-Executive
and Nominee Director and four Independent Directors. As at March 31, 2023, the Board had
two woman Directors. The details of Board and Committee composition, tenure of Directors,
areas of expertise and other details are available in the Corporate Governance Report,
which forms part of this Annual Report.
In accordance with the provisions of Section 152 of the Act, read with rules made
thereunder and Articles of Association of the Company, Mr. Sagar R. Adani (DIN: 07626229)
is liable to retire by rotation at the ensuing Annual General Meeting (AGM) and being
eligible offers himself for re-appointment.
During the year under review, following changes took place in the Directors and Key
Managerial Personnel of the Company:
- Mr. Kaushal Shah resigned from being a Chief
Financial Officer and Key Managerial Personnel of the Company and Mr. Phuntsok Wangyal
was appointed as the new Chief Financial Officer, with effect from November 11, 2022.
- Mrs. Ahlem Friga-Noy (DIN: 09652701), was appointed as an Additional Director of the
Company, with effect from July 27, 2022, by the Board. Her appointment was regularized in
the Extra-ordinary General meeting held on October 26, 2022.
- Mr. Sandeep Singhi (DIN: 01211070) resigned as an Independent Director with effect
from November 10, 2022, due to prioritization of his responsibilities.
- Mr. Sunil Mehta (DIN: 00065343) was appointed as an Additional Director
(Non-Executive & Independent Director) of the Company, with effect from November 10,
2022. His appointment was regularised with approval of shareholders through postal ballot,
approved on January 20, 2023. Subsequently, Mr. Mehta resigned as Director of the Company
effective from February 24, 2023, on account of conflict of interest aroused of his
appointment as Chairman of IndusInd Bank Limited.
Subsequent to closure of the year under review, Dr. Poornima Advani (DIN: 02626450),
ceased to be Director of the Company effective from April 01, 2023, on account of her sad
demise. Dr. Poornima Advani's unexpected demise will be an irreparable loss to the
Company. All the Directors and employees express their deep sympathy, sorrow and
condolences to her family.
Mr. Sagar R. Adani (DIN: 07626229), was appointed as an Executive Director of the
Company for a period of 5 years effective from October 31, 2018. His term of appointment
as an Executive Director is set to expire on October 30, 2023. However, the Board has in
its meeting held on May 01, 2023, upon recommendation of the Nomination and Remuneration
Committee of the Company, re-appointed him for further period of 5 years effective October
31, 2023, subject to approval of the shareholders of the Company. Accordingly, resolution
for his re-appointment as an Executive Director of the Company forms part of notice
calling Annual General Meeting of the Company.
Mr. Vneet S. Jaain (DIN: 00053906), was appointed as Managing Director & Chief
Executive Officer of the
Company from July 10, 2020. However, upon change in organizational role, the Board has
in its meeting held on May 01, 2023, upon recommendation of the Nomination and
Remuneration Committee of the Company, approved change in his designation from
Managing Director and Chief Executive Officer of the
Company to Managing Director effective from May 11, 2023. Accordingly, resolution for
his re-appointment as an Executive Director of the Company forms part of notice calling
Annual General Meeting of the Company.
In order to drive the determined plans of the Company to become the largest renewables
Company in the world and in view of change in the role of Mr. Vneet S. Jaain, the Board
has in its meeting held on May 01, 2023, upon recommendation of the Nomination and
Remuneration Committee of the Company, appointed
Mr. Amit Singh as Chief Executive Officer and Key
Managerial Personnel of the Company.
The Board recommends the re-appointment of above Directors for your approval. Brief
details of Directors proposed to be appointed/ re-appointed, as required under Regulation
36 of the SEBI Listing Regulations, are provided in the Notice of the AGM.
The Company has received declarations from all the
Independent Directors of the Company confirming that they meet with the criteria of
independence as prescribed both under sub-section (6) of Section 149 of the Act and the
SEBI Listing Regulations and there has been no change in the circumstances which may
affect their status as an Independent Director. Pursuant to provision of Section 203 of
the Act, Mr. Vneet S. Jaain, Managing Director, Mr. Sagar R. Adani, Executive Director,
Mr. Phuntsok Wangyal, Chief
Financial Officer and Mr. Pragnesh Darji, Company Secretary are Key Managerial
Personnels of the Company as on March 31, 2023.
Committees of Board
The details of various committees constituted by the Board, including the committees
mandated pursuant to the applicable provisions of the Act and SEBI Listing Regulations,
are given in the Corporate Governance Report, which forms part of this Integrated Annual
Report.
Number of meetings of the Board
The Board met 6 (six) times during the year under review. The details of board meetings
and the attendance of the Directors are provided in the Corporate Governance Report, which
forms part of this Integrated Annual Report.
Independent Directors' Meeting
The Independent Directors met on March 31, 2023, without the attendance of
Non-Independent Directors and members of the management. The Independent Directors
reviewed the performance of Non-Independent Directors, the Committees and the Board as a
whole alongwith the performance of the Chairman of the Company, taking into account the
views of Executive Directors and Non-Executive Directors and assessed the quality,
quantity and timeliness of flow of information between the management and the Board that
is necessary for the Board to effectively and reasonably perform their duties.
Board Evaluation and familiarization programme
The Board adopted a formal mechanism for evaluating its performance and as well as that
of its Committees and individual Directors, including the Chairman of the Board. The
exercise was carried out through a structure devaluation process covering various aspects
of the Boards functioning such as composition of the Board & committees, experience
& competencies, performance of specific duties
& obligations, contribution at the meetings and otherwise, independent judgment,
governance issues etc.
During the year under review, the Company has also conducted two separate meetings for
familiarization of the Directors on different aspects.
Policy on Directors' appointment and remuneration
Your Company's Policy on Directors' appointment and remuneration and other matters
(Remuneration Policy) pursuant to in Section 178(3) of the Act is available on the website
of the Company at https://www.adanigreenenergy.com/Investors/ Corporate-Governance The
Remuneration Policy for selection of Directors and determining Directors' independence
sets out the guiding principles for the Nomination and Remuneration Committee for
identifying the persons who are qualified to become the Directors.
Your Company's Remuneration Policy is directed towards rewarding performance based on
review of achievements. The Remuneration Policy is in consonance with existing industry
practice.
We affirm that the remuneration paid to the Directors is as per the terms laid out in
the Remuneration Policy.
Directors' Responsibility Statement
Pursuant to Section 134
(5) of the Act, the Board, to the best of their knowledge and based on the information
and explanations received from the Company, confirm that:
a. in the preparation of the annual financial statements, the applicable accounting
standards have been followed and there are no material departures;
b. they have selected such accounting policies and applied them consistently and
judgements and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of FY 2022-23 and of the profit of
the Company for that period;
c. they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d. they have prepared the annual financial statements on a going concern basis;
e. they have laid down internal financial controls to be followed by the Company and
such internal financial control are adequate and operating effectively;
f. they have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
Internal Financial control system and their adequacy
The details in respect of internal financial control and their adequacy are included in
Management Discussion and Analysis Report, which forms part of this Integrated Annual
Report.
Risk Management
The Board has formed a Risk Management Committee (RMC) to frame, implement and monitor
the risk management plan for the Company. The RMC is responsible for reviewing the risk
management plan and ensuring its effectiveness. The Audit Committee has additional
oversight in the area of financial risks and controls. The major risks identified by the
businesses are systematically addressed through mitigation actions on a continual basis.
Further, details are included in the separate section forming part of this Integrated
Annual Report.
Board policies
The details of various policies approved and adopted by the Board as required under the
Act and SEBI Listing Regulations are provided in Annexure A to this report.
Corporate Social Responsibility (CSR)
The brief details of the CSR Committee are provided in the Corporate Governance Report,
which forms part of this Integrated Annual Report. The CSR Policy and CSR Plan is
available on the website of your Company at: https://www.adanigreenenergy.com/Investors/
Corporate-Governance.
The Annual Report on CSR activities is annexed and forms part of this report.
Further, the Chief Financial Officer of your Company has certified that CSR spends of
your Company for the FY 2022-23 have been utilized for the purpose and in the manner
approved by the Board.
Corproate Governance Report
Your Company is committed to good corporate governance practices. The Corporate
Governance Report as stipulated by SEBI Listing Regulations, forms part of this Integrated
Annual Report along with the required certificate from a Practicing Company
Secretary regarding compliance of the conditions of Corporate Governance as stipulated.
In compliance with Corporate Governance requirements as per the SEBI Listing
Regulations, your Company has formulated and implemented a Code of Conduct for all Board
members and Senior Management Personnel of your Company (Code of Conduct), who have
affirmed the compliance thereto.
The Code of Conduct, is available on the website of your Company at:
https://www.adanigreenenergy.com/investors/ corporate-governance
Business Responsibility & Sustainability Report
The Company has provided the Integrated Report, which encompasses both financial and
non-financial information to enable the stakeholders to take well informed decisions and
have a better understanding of the Company's long-term perspective.
In our constant endeavor to improve governance, your Company has, on a voluntary basis,
transitioned to Business Responsibility & Sustainability Report in the previous
financial year and continues to provide so for the year ended March 31, 2023, forms part
of this Integrated Annual Report.
Annual Return
Pursuant to Section 134(3) (a) of the Act, the draft annual return as on March 31, 2023
prepared in accordance with Section 92(3) of the Act is made available on the website of
your Company and can be assessed using the link:
https://www.adanigreenenergy.com/-/media/Project/
GreenEnergy/Investor-Downloads/Annual-Return/FY-23.pdf
Transactions with Related Parties
All transactions with related parties are placed before the Audit Committee for its
prior approval. An omnibus approval from Audit Committee is obtained for the related party
transactions which are repetitive in nature.
All transactions with related parties entered into during the financial year were at
arm's length basis and in the ordinary course of business and in accordance with the
provisions of the Act and the rules made thereunder, the SEBI Listing Regulations and your
Company's Policy on Related Party Transactions. Your Company has not entered into any
transactions with related parties which could be considered material in terms of Section
188 of the Act.
Accordingly, the disclosure of related party transactions as required under Section
134(3)(h) of the Act, in Form AOC 2, is not applicable.
Your Company did not enter into any related party transactions during the year which
could be prejudicial to the interest of minority shareholders. The Policy on Related Party
Transactions is available on your Company's website and can be assessed using the link:
https://www.adanigreenenergy.com/investors/ corporate-governance
General Disclosures
Neither the Chairman nor the Managing Director & CEO of your Company received any
remuneration or commission from any of the subsidiary of your Company.
Your Directors state that no disclosure or reporting is required in respect of the
following items as there were no transactions/events of these nature during the year under
review:
1. Issue of equity shares with differential rights as to dividend, voting or otherwise.
2. Issue of Shares (Including Sweat Equity Shares) to employees of your Company under
any scheme.
3. Significant or material orders passed by theRegulators or Courts or Tribunals which
impact the going concern status and your Company's operation in future.
4. Voting rights which are not directly exercised by the employees in respect of shares
for the subscription/ purchase of which loan was given by the Company (as there is no
scheme pursuant to which such persons can beneficially hold shares as envisaged under
section 67(3)(c) of the Companies Act, 2013).
5. Change in the nature of business of your Company.
6. No application was made or any proceeding is pending under the Insolvency and
Bankruptcy Code, 2016.
7. One time settlement of loan obtained from the Banks or Financial Institutions.
8. Revision of financial statements and Directors'Report of your Company
Insurance
Your Company has taken appropriate insurance for all assets against foreseeable perils.
Statutory Auditors & Auditors' Report
Pursuant to the provisions of Section 139 of the Act read with rules made thereunder,
as amended from time to time, M/s. Dharmesh Parikh & Co. LLP, Chartered Accountants
(Firm Registration No 112054W/W100725), were re-appointed as Statutory Auditors of the
Company for the second term to hold office till the conclusion of the Annual General
Meeting (AGM) of the Company to be held in the calendar year 2026 and M/s. S R B C LLP,
Chartered Accountants (Firm Registration No.: 324982E/ E300003) were appointed as Joint
Statutory Auditors of the Company to hold office till the conclusion of the AGM of the
Company to be held in the calendar year 2026. In accordance with the provisions of the
Act, the appointment of Statutory Auditors is not required to be ratified at every AGM.
The Statutory Auditors have however confirmed that they are not disqualified to
continue as Statutory Auditors and are eligible to hold office as StatutoryAuditors of
your Company.
Representative of the Statutory Auditors of your Company attended the previous AGM of
your Company held on July 27, 2022.
The Notes to the financial statements referred in theAuditors' Report are
self-explanatory. The Auditors'
Report is enclosed with the financial statements in this Integrated Annual Report. The
Auditors' modified opinion has been appropriately dealt with in Note No. 50 (Consolidated
Financial Statements) and Note no. 52 (Standalone Financial Statements) and doesn't
require any further comments under section 134 of the Act.
Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Act, read with the rules made
thereunder, the Board had re-appointed M/s. Chirag Shah & Associates, Practicing
Company Secretaries, to undertake the Secretarial Audit of the Company. The Secretarial
Audit Report for the year under review is provided as Annexure-B of this report.
There are no qualifications, reservations or adverse remarks or disclaimers in the said
Secretarial Audit Report.
Secretarial Standards
During the year under review, the Company has complied with all the applicable
provisions of Secretarial Standard-1 and Secretarial Standard-2 issued by the Institute of
Company Secretaries of India.
Reporting of frauds by Auditors
During the year under review, the Statutory Auditors and Secretarial Auditor have not
reported any instances of fraud committed against the Company by its officers or employees
to the Audit Committee or the Board under section 143(12) of the Act.
Particulars of Employees
Your Company had 2,912 employees (on consolidated basis) as of March 31, 2023.
The percentage increase in remuneration, ratio of remuneration of each Director and Key
Managerial Personnel (KMP) (as required under the Act) to the median of employees'
remuneration, as required under Section 197 of the Act, read with rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are provided
in Annexure-C of this report.
The statement containing particulars of employees as required under Section 197 of the
Act, read with rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, will be provided upon request. In terms of Section 136 of the Act,
the Integrated Annual Report is being sent to the shareholders and others entitled
thereto, excluding the information on employees' particulars which is available for
inspection by the shareholders at the Registered Office of the Company during business
hours on working days of the Company. If any shareholder is interested in obtaining a copy
thereof, such shareholder may write to the Company Secretary in this regard.
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013 and rules made thereunder, your Company has
constituted Internal Complaints Committees (ICs), at all relevant locations across India
to consider and resolve the complaints related to sexual harassment. The ICs includes
external members with relevant experience. The ICs, presided by a senior women, conduct
the investigations and make decisions at the respective locations. The ICs also work
extensively on creating awareness on relevance of sexual harassment issues, including
while working remotely.
During the year under review, the Company has not received any complaint pertaining to
sexual harassment.
All new employees go through a detailed personal orientation on anti-sexual harassment
policy adopted by the Company.
Vigil Mechanism
Your Company has adopted a Whistle Blower Policy and has established the necessary
vigil mechanism for Directors and employees in confirmation with Section 177 of the Act
and Regulation 22 of SEBI Listing Regulations, to facilitate reporting of the genuine
concerns about unethical or improper activity, without fear of retaliation.
The vigil mechanism of the Company provides for adequate safeguards against
victimization of Directors and employees who avail of the mechanism and also provides for
direct access to the Chairman of the Audit Committee in exceptional cases. To encourage
such members to report any concerns and to maintain anonymity, the Company has engaged an
independent agency for managing the whistleblowing system and has provided toll-free
helpline numbers across the locations where it is having presence. No person has been
denied access to the Chairman of the Audit Committee. The said Policy is uploaded on the
website of the Company at: https://www.adanigreenenergy.com/Investors/
Corporate-Governance.
During the year under review, your Company had not received any complaint under the
whistle blower policy.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
The information on conservation of energy, technology absorption and foreign exchange
earnings and outgo stipulated under Section 134(3)(m) of the Act read with rule 8 of the
Companies (Accounts) Rules, 2014, as amended is provided as Annexure-D of this
report.
Acknowledgement
Your Directors are highly grateful for all the guidance, support and assistance
received from the Government of India, Governments of various states in India, concerned
Government departments, Financial Institutions and Banks. Your Directors thank all the
esteemed shareholders, customers, suppliers and business associates for their faith, trust
and confidence reposed in the Company.
Your Directors wish to place on record their sincere
FINANCIAL STATEMENTS
appreciation for the dedicated efforts and consistent contribution made by the
employees at all levels, to ensure that the Company continues to grow and excel.
For and on behalf of the Board of Directors to the Directors' Report
|
Gautam S. Adani |
|
Chairman |
Date: May 01, 2023 |
(DIN: 00006273) |