Orient Green Power Company Ltd Directors Report.

Dear Shareholders,

Your Directors take pleasure in presenting the Fourteenth Annual Report on the business and operations of the Company along with the audited financial statements, for the financial year ended March 31, 2021.

Results of our Operations

Rs. In Lakhs

Standalone

Consolidated

Particulars 2020-21 2019-20 2020-21 2019-20
Sales and Other Income 3,599 8,480 26,270 38,644
Profit / (Loss) before Depreciation, Interest and Tax & Exceptional items (195) 4,714 17,000 28,045
Finance Costs 498 536 13,816 15,344
Depreciation and Amortisation 51 83 9,099 9,152
Exceptional item - - 844 156
Profit/(Loss) before Tax (744) 4,095 (5,071) 3,705
Less : Provision for Tax - - - -
Profit/(Loss) for the year (744) 4,095 (5,071) 3,705
Profit/(Loss) from discontinued operations (53) (1,162) (630) (1,717)
Other Comprehensive Income 5 11 163 78
Total Comprehensive Profit/(Loss) for the year (792) 2,944 (5,538) 2,066
Non-Controlling Interest - - 54 (320)
Total Comprehensive Profit/( Loss) for the Year attributable to shareholders of the Company (792) 2,944 (5,592) 2,386

Business Performance

With assets located across some of the best wind sites of the country, the Company has a good mix of renewable projects spread across several states. A healthy mix of old and new assets ensures steady and consistent generation of units. The problems associated with grid back down have now been resolved and the power plants continue to operate in an environment wherein grid availability continues to remain at an excess of 95%.

Considering the stay granted by the Supreme Court of India on the order issued by Central Electricity Regulatory Commission (CERC) on reduction of floor price and based on the legal opinion obtained, the Company is confident of favourable decision on the appeal with Hon’ble Supreme Court against the APTEL (Appellate Tribunal for Electricity at New Delhi) order and realization of difference of Rs. 500/- REC aggregating Rs. 2,071 Lakhs in respect of the receivables as on 31st March 2017.

The Central Energy Regulatory Commission (CERC) in its order dated June 17, 2020 determining forbearance and floor price for the Renewable Energy Certificates (RECS), revised the floor price and forbearance prices of Non Solar RECS as Nil and Rs.1,000/- respectively. The prices shall be effective from July 01, 2020 and shall remain in force till date. The Indian Wind Power Association moved the Appellate Tribunal for Electricity (APTEL) challenging the said order and the proceedings are underway. The Company has the practice of accruing the revenue from RECs at its floor price (less expenses) and any differential amount on realization will be taken to the statement of profit and loss as and when the sale happens. Due to removal of floor price vide above notification, the Company conservatively accrued the RECs at Rs. 1/certificate and the differential would be recognized as revenue upon sales of REC. Accordingly, the erstwhile floor price of Rs.1,000/REC if considered, the revenue for the year is lower by Rs. 2,466 Lakhs.

Challenges

COVID-19 is the most tumultuous, most catastrophic and the most defining epoch of our lifetime. With no precedence, it has rattled lives and economies across the world and India has not been spared either.

Your company has been particularly affected by regulatory delays and payment delays from state utilities. The legal and regulatory issues relating to RECs have caused a sum of Rs. 4,537 Lakhs to be held up. In addition, due to disputes with AP discom, a sum of Rs. 5,378 Lakhs is held up for over a year. The combination of these issues has made cashflow particularly challenging for the company this year.

Performance at Consolidated Level

Revenues on consolidated basis for the year stood at Rs. 26,270 Lakhs as against Rs.38,644 Lakhs reported for the corresponding period last year.

EBITDA for the year stood at Rs.17,000 Lakhs as against Rs. 28,045 Lakhs during previous year. EBITDA margins for the year stood at 65% as against 73% for previous year. Depreciation for the year stood at Rs.9,099 Lakhs as against Rs. 9,152 Lakhs recognized during last year.

Interest expense for the year stood at Rs.13,816 Lakhs as against the previous year of Rs. 15,344 Lakhs. Loss for the year stood at Rs.5,071 Lakhs as against a Profit after tax of Rs. 3,705 Lakhs reported for last year. The loss from discontinued operations stood at Rs. 630 Lakhs as against Rs. 1,717 Lakhs in previous year.

MSME Registration

The Company has been registered as Small Enterprise with Ministry of Micro, Small & Medium Enterprise (Udyam Registration).

Scheme of Arrangement

During the year, the Board of Directors of the Company at their meeting held on 30th January 2020 has approved the Draft Scheme of Arrangement. The Company through Scheme of Arrangement aims at providing the fair and true financial position of the Company. Under the Scheme of Arrangement, the Company proposes to reduce, its Issued, Subscribed, Paid Up Equity Share Capital ("Paid Up Capital"), its Securities Premium Account ("Securities Premium" or "SPA") and provision for doubtful debts/investments/assets to create a Business Reconstruction Reserve Account ("BRR Account") which shall be utilized to neutralize cash business losses, doubtful investments, loans, advances, impaired assets etc. in the manner as provided under the terms of the Scheme of Arrangement.

Upon the Scheme coming into effect and as on the Appointed Date, the equity share capital of the Company being Rs. 7,50,72,39,770 divided into 75,07,23,977 equity shares of Rs.10 each, shall be reduced to Rs. 37,53,619,885 divided into 75,07,23,977 equity shares of Rs.5 each. In essence, the issued, subscribed and paid up equity share capital of the Company as on the Appointed Date shall be reduced by Rs. 3,75,36,19,885/- ("Reduced Capital Amount"). The amount of Rs. 3,75,36,19,885, Rs. 4,69,52,09,520 and Rs. 1,81,68,43,400 shall be transferred from Equity Share Capital, Securities premium account and Provisions carried against doubtful assets account respectively to Business Reconstruction Reserve Account.

During the year under review the Company has filed an application with BSE and NSE and the Company is being directed to re-submit the scheme with the latest financials available, as there is delay in obtaining the observations from the Stock Exchanges.

Consolidated Financial Statements

The Consolidated Financial Statements of the Company and its subsidiaries, prepared in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Companies Act, 2013 (the Act’) read with relevant rules issued thereunder form part of the Annual Report and are reflected in the Consolidated Financial Statements of the Company. The annual financial statements of the subsidiaries and related detailed information will be kept at the Registered Office of the Company and will be available to investors seeking information at any time.

The Company has adopted a Policy for determining Material Subsidiaries in terms of Regulation 16 (1) (c) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’). The Policy as approved by the Board are available on our website at http://orientgreenpower.com/ Companies-Act-and-SEBI-Compliance.asp.

Dividend

The Company has not declared any dividend due to inadequate profit earned by the Company during the year.

Share Capital

During the year under review, there is no change in the Share Capital of the Company.

Change in Promoters Shareholding

During the financial year, there is no change in the Promoters shareholding.

Particulars of Loans, Guarantees and Investments

The Particulars of Loans, Guarantees and Investments covered under Section 186 of the Companies Act, 2013 form part of the Notes to the financial statements provided in this Annual Report.

Material changes and commitments affecting financial position between the end of the financial year and date of the report

There were no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of the report.

Management Discussion and Analysis Report

Management Discussion and Analysis Report for the year under review, in terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report.

Subsidiaries

As at 31st March, 2021, your Company had a total of 7 subsidiaries and 4 step down subsidiaries and 1 Associate, the details of which are given elsewhere in the Annual Report under the relevant Sections.

The information as required under the first proviso to subsection (3) of Section 129 is given in Form AOC-1, is appended as Annexure 1 to the Board’s Report.

Further, pursuant to the provisions of Section 136 of the Companies Act, 2013 ("Act"), Standalone and Consolidated financial statements along with the relevant documents and separate audited accounts in respect of the subsidiaries of the Companies are available in the website of the Company http://orientgreenpower.com/ Subsidiary-Accounts.asp

Deposits

The Company has not accepted any deposits either from the shareholders or public and as such, no amount of principal or interest was outstanding as on the date of Balance Sheet.

Corporate Governance

The Company has been complying with the provisions of Corporate Governance as stipulated in Regulations 24, 27 and other relevant provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. A separate report on Corporate Governance along with Auditors’ Certificate on compliance of the Corporate Governance norms as stipulated in Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 forming part of this report are provided elsewhere in this Annual Report.

Internal Control System

The Company has in place, an adequate system of internal controls commensurate with its size, requirements and the nature of operations. These systems are designed keeping in view the nature of activities carried out at each location and the various business operations. The company has documented a robust and comprehensive internal control system for all the major processes to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, laws and regulations, safeguarding of assets and economical and efficient use of resources.

The Internal Auditor monitors and evaluates the efficacy and adequacy of internal controls system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company and its subsidiaries. Based on the report of internal audit, process owners undertake corrective action in their respective areas and thereby strengthen the controls. During the year, the Audit Committee met regularly to review reports submitted by the Internal Auditor. All significant audit observations and follow-up actions thereon were reported to the Audit

Committee. The Audit Committee also met the Company’s Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of the internal controls and systems followed by the Company.

Your Company also has a Risk Management Framework in place covering all critical areas of operation. This framework is reviewed periodically keeping in mind the business dynamics and external environment and provides the guidelines for managing the various risks across the business.

Directors’ Responsibility Statement

The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Companies Act, 2013 (‘the Act’), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The Company has adopted all the Ind AS standards and the adoption was carried out in accordance with applicable transition guidance. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Directors confirm that:

(i) In the preparation of the annual accounts for the year ended 31st March 2021, the applicable accounting standards have been followed along with proper explanation relating to material departures if any;

(ii) 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 31st March 2021, statement of Profit and Loss and statement of cash flows of the Company for the year ended on that date;

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) the Directors had prepared the annual accounts of the Company on a ‘going concern’ basis.

(v) the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are reasonably adequate and operating effectively; and

(vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are reasonably adequate and operating effectively.

Number of Board Meetings

The Board of Directors met 4 (four) times in the year 2020-21.

The details of the board meetings and the attendance of the Directors are provided in the Corporate Governance Report. The maximum interval between any two meetings did not exceed 120 days, as prescribed in the Companies Act, 2013.

Familiarization Program for Independent Directors

The Company has an orientation programme upon induction of new Directors as well as other initiatives to update Directors on a continuous basis. The Familiarization Programme of the Company will provide information relating to the Company, wind energy / renewable energy industry, business model of the Company, geographies in which Company operates, etc. The programme also intends to improve awareness of the Independent Directors on their roles, rights, responsibilities towards the Company. Further, the Familiarization Programme should also provide information relating to the financial performance of the Company and budget and control process of the Company. The format of the letter of appointment is available on our website http://orientgreenpower.com/Companies-Act-and-SEBI-Compliance.asp

Directors and Key Managerial Personnel

a) Re-appointment:

Mr. R. Sundararajan (DIN: 00498404) retires by rotation and being eligible, offers himself for re-appointment in accordance with the provisions of Section 152(6) and Articles of Association of the Company. A resolution seeking shareholders’ approval for his re-appointment forms part of the Notice.

b) Key Managerial Personnel:

• Mr. P. Srinivasan, Company Secretary of the Company retired from his position as Company Secretary and Compliance Officer with effect from 27th December 2020.

• Ms. M. Kirithika, has been appointed as a Company Secretary and Compliance Officer of the Company with effect from 28th December 2020.

Committees of the Board

The Company has following committees of the Board:

1. Audit Committee

2. Nomination & Remuneration Committee

3. Stakeholder’s Relationship Committee

4. Risk Management Committee

5. Investment/Banking/Borrowing Committee

6. Corporate Social Responsibility Committee

7. Capital Reduction Committee

A detailed note on the composition of the Board and its committees is provided in the Corporate Governance Report a part of this Annual Report.

Related Party Transactions and Particulars of contracts or arrangements made with related parties.

All the related party transactions that were entered into during the Financial Year 2020-21 were on an arm’s length basis and in the ordinary course of business. There are no materially significant Related Party transactions made by the Company with Promoters, Directors or Key Management Personnel etc. which may have potential conflict with the interest of the company at large.

All Related Party Transactions are presented to the Audit Committee and the Board. A statement of all related party transactions was presented before the Audit Committee specifying the nature, value and terms and conditions of the transactions.

The Related Party Transactions Policy as approved by the Board is uploaded on the Company’s website at http://orientgreenpower.com/Companies-Act-and- SEBI Compliance.asp

The details of the contracts or arrangements i.e. transactions with Related Parties during the year, are provided in the accompanying financial statements and also in form AOC-2 is appended as Annexure 2 to the Board’s Report.

Evaluation of the Board’s Performance

In compliance with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the performance evaluation of the Board was carried out during the year under review. More details on the same are given in the Corporate Governance Report.

Prevention of Sexual Harassment at workplace

The Company has always provided a congenial atmosphere for work to all the employees that is free from discrimination and harassment including sexual harassment. It has provided equal opportunities of employment to all without regard to their caste, religion, colour, marital status and sex. There were no cases reported during the financial year under the said policy.

Audit reports and Auditors Audit reports

1. The Auditors’ Report for the year 2020- 2021 does not contain any qualification, reservation or adverse remark. The Auditors’ Report is enclosed with the financial statements in this Annual Report.

2. The Secretarial Auditors’ Report for the year 2020- 2021 does not contain any qualification, reservation or adverse remark. The Secretarial Auditors’ Report is enclosed as Annexure 3 to the Board’s report.

3. As required by the Listing Regulations, the auditors’ certificate on corporate governance is enclosed. The auditors’ certificate for Year 2020-2021 does not contain any qualification, reservation or adverse remark.

4. The Company is in compliance with Regulation 24A of the Listing Regulations. The Company’s unlisted material subsidiaries undergo Secretarial Audit. Copy of Secretarial Audit Reports of Beta Wind Farm Private Limited & Bharath Wind Farm Limited is enclosed as Annexure 4 & 5 respectively.

Auditors

Statutory Auditor

M/s. G.D.Apte & Co, (Registration No.100515W) Chartered Accountants, Mumbai had been appointed as Statutory Auditors of the Company as per Section 139 of the Companies Act, 2013 for a period of 5 years from the conclusion of Tenth Annual General Meeting till the conclusion of Fifteenth Annual General Meeting, by the members at the Annual General Meeting held on August 09, 2017.

Internal Auditor

Internal Audit of the company is handled by M/s. Sundar, Srini & Sridhar, an Independent Chartered Accountant firm for evaluating the adequacy of internal controls and concurrently reviews majority of the transactions in value terms.

Independence of the firm and compliance is ensured by the direct reporting of the firm to the Audit Committee of the Board.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, M/s. M Alagar & Associates, Practicing Company Secretary, CP No. 8196 were appointed as Secretarial Auditors for the financial year 2020-21, to audit the secretarial and related documents of the Company.

Insider Trading

In compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended, your Company has instituted a comprehensive Code titled as "Orient Green Power Company Limited Code of Conduct" which lays down guidelines and advises the Directors and Employees of the Company on procedures to be followed and disclosures to be made while dealing in securities of the Company.

Conservation of energy, research and development, 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 Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rule 2014, is appended as Annexure- 6 to the Board’s report.

Particulars of Employees

The Information as required under Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure- 7 to the Board’s report. The Information as required under Rule 5(1) & Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in an annexure forming part of this Annual report. In terms of the first provision to Section 136 of the Act, the report and accounts are being sent to members excluding the aforesaid Annexure. Any member interested in obtaining the same may write to the Company Secretary at the Registered office of the Company. None of the employees listed in the said annexure are related to any directors of the Company.

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company’s operations in future.

Extract of Annual Returns

Annual Return of the Company is available in our website at http://orientgreenpower. com/Investor/Annual Report.asp.

Board Policies

The details of the policies approved and adopted by the Board are as follows:

Whistle Blower Policy (Policy on Vigil Mechanism)

The company has adopted a whistle blower mechanism for directors and employees to report concerns about unethical behavior, actual or suspected fraud, or violation of the company’s code of conduct and ethics. Details of the policy are available on our website at http://orientgreenpower. com/Companies-Act-and-SEBI-Compliance.asp.

Insider Trading Policy

The policy provides the framework in dealing with securities of the Company. Details of the policy are available on our website at http://orientgreenpower.com/Companies-Actand-SEBI-Compliance.asp to regulate, Monitor and Report trading by Insiders.

Policy for Determining Materiality for Disclosures

The policy applies to disclosures of material events affecting the Company and its subsidiaries. Details of the policy are available on our website at http://orientgreenpower.com/ Companies-Act-and-SEBI-Compliance.asp for Determining Materiality of Events.

Nomination and Remuneration Policy

This policy formulates the criteria for determining qualifications, competencies, positive attributes and independence for the appointment of the director (Executive/ non-executive) and also the criteria for determining the remunerations of the directors, Key Managerial Personnel, senior management. Details of the policy are available on our website at http://orientgreenpower.com/CompaniesAct-and-SEBI-Compliance.asp

Corporate Social Responsibility Policy

The policy outlines the company’s strategy to bring about a positive impact on society through programs relating to hunger, poverty, education, healthcare, environment and lower its resource footprint. Details of the CSR policy are available on our website at http://orientgreenpower.com/ Companies-Act-and-SEBI-Compliance.asp

Policy on Material Subsidiaries

The policy is used to determine the material subsidiaries of the company. Details of the policy are available on our website at http://orientgreenpower.com/Companies-Actand-SEBI- Compliance.asp

Related Party Transactions Policy

The policy regulated all transactions between the company and its related parties. Details of the policy are available on our website at http://orientgreenpower.com/CompaniesAct-and-SEBI-Compliance.asp

Documents Retention and Archival Policy

The policy deals with the retentions and archival of corporate records of the Company and all its subsidiaries. Details of the policy are available on our website athttp://orientgreenpower. com/Companies-Act-and-SEBICompliance.asp

Succession Planning

The Nomination and Remuneration Committee of the Board (‘NRC’) oversees matters related to succession planning of Directors, Senior Management and other Key Executives of the Company.

Investor Education and Protection Fund (IEPF)

Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (‘the Rules’), any Application money received by the company for allotment of securities and due for refund shall be transferred to the IEPF established by the Central Government, after the completion of seven years. Further, according to the Rules, the amounts which have not been paid or claimed by the shareholders for seven consecutive years or more shall also be transferred to the IEPF account created by the IEPF Authority. Accordingly, on 5th October 2017 unclaimed Share Application money amounting to Rs. 16,750 has been transferred to IEPF account as per the requirements of the IEPF rules.

Disclosure requirements

• The Company complies with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India;

• None of the Auditors of the Company have reported any fraud as specified under the second proviso of Section 143 (12) of the Companies Act, 2013 (including any statutory modification(s) or re-enactment(s) thereof for the time being in force);

• The Company does not have any scheme or provision of money for the purchase of its own shares by employees/ Directors or by trustees for the benefit of employees/ Directors; and

• The Company has not issued equity shares with differential rights as to dividend, voting or otherwise

Green Initiative

Electronic copy of the Annual Report for FY 2021 and the Notice of the ensuing AGM is being sent to all shareholders whose email addresses are available in demat account and registered with Company’s Registrar and Share Transfer Agent. As per the Circulars issued by Ministry of Corporate Affairs shareholders holding shares in demat form are requested to update their email addresses with their Depository Participant(s) and for shareholders holding shares in physical form, should get their email registered with Link Intime India Private Limited, Company’s Registrar and Share Transfer Agent.

Appreciation

Your Directors wish to convey their deep appreciation to all the employees, customers, vendors, investors, Bankers, Financial Institutions for their sincere and dedicated services as well as their collective contribution to the Company’s performance.

Your Directors also thank the Government of India, Government of various States in India and concerned Government Departments for their co-operation.

For and on behalf of the Board of Directors

Venkatachalam Sesha Ayyar T.Shivaraman
Chennai Managing Director Director
May 28, 2021 DIN: 06698233 DIN: 01312018