suzlon energy ltd Management discussions

1. Economic Overview

1.1. Global economic overview

The global recovery from the COVID-19 pandemic and Russias invasion of Ukraine is slowing amid widening divergences among economic sectors and regions. Despite these headwinds, global economic activity was resilient in the first quarter of CY23, with that resilience driven mainly by the services sector. Supply chains have largely recovered, and shipping costs and suppliers delivery times are back to pre-pandemic levels. But forces that hindered growth in CY22 still persist. At the same time, this recovery comes with challenges, navigating a complex phase of transition.

As per International Monetary Funds (IMF) report 2023, Global growth is projected to fall from an estimated 3.5% in CY22 to 3.0% in both CY23 and CY24. The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7% in CY22 to 6.8% in CY23 and 5.2% in CY24 on the back of lower commodity prices. Underlying (core) inflation is projected to decline more gradually.

On the contrary, for emerging market and developing economies, growth is projected to be broadly stable at 4.0% in CY23 and 4.1% in CY24, with modest revisions of 0.1% point for CY23 and -0.1% point for CY24. This is attributed to the remarkable resilience in its labor markets, driven by strong job creation and stability. Robust household consumption and increased private capitalisation also played significant roles in supporting economic growth in this market.

1.2. Indian economic overview

Amidst the backdrop of the pandemic and prevailing global economic uncertainties, India stands out in a bright spot. India has been at the forefront of global economic expansion thereby contributing a significant role in driving global growth. The central governments capital expenditure (capex) has been a key driver of Indias economic growth in FY23, with a significant increase of 63.4% in the first eight months of FY23. This growth has also helped stimulate private sector capex.

Furthermore, with a record-high GDP of $ 3.75 Trillion- mark in CY23, India became the fifth largest economy in the world beating the UK. Anchoring this economic growth momentum, India has witnessed a significant boost in its reputation through a 14% surge in overall exports during CY23, reaching a total value of $ 775.87 Billion, a substantial increase of approximately $ 100 Billion compared to the previous year.

2. Outlook

The global environment is going through considerable changes. Geopolitical factors such as the conflict between Russia and Ukraine, rising inflation and volatile commodity prices have caused slowing down of global growth and created stress in the overall economic environment. As per IMF, Global growth is projected to fall from an estimated 3.5% in CY22 to 3.0% in both CY23 and CY24.

Advanced economies continue to drive the decline in growth from CY22 to CY23, with weaker manufacturing, as well as idiosyncratic factors, offsetting stronger services activity. On the contrary, in emerging market and developing economies, the growth outlook is broadly stable for CY23 and CY24, although with notable shifts across regions.

In most economies, the priority remains achieving sustained disinflation while ensuring financial stability.

While the soaring inflationary pressures stay as a challenge to the global economic growth, India is reflecting a strong recovery. This is fuelled by improved meticulous capital allocation, fiscal support and a rebound in private consumption and investment. Indias is expected to remain stable with an estimated range of 6-6.3%, striving to revive from the pandemic-induced recession.

Looking ahead the Indian economic landscape, if inflation declines in CY24 and the real cost of credit remains stable, it is projected that credit growth will also continue to be robust in CY24. Moreover, in line with IMF, the inflation rate is predicted to be reduced from 6.8 in CY23 to 5% in CY24. (Source: The Economic Times - January 31, 2023)

3. Industry overview of the renewable energy sector

3.1. Global renewable energy sector overview

Looking into the global energy sector, in FY23, the world is currently suffering from an energy crisis as one of the impacts of the Russia-Ukraine conflicts and geopolitical tensions. The exposure of industries and consumers to high-price situations has contributed to the return of inflation as a major global challenge.

The CY22 also depicts the global investment in the low-carbon energy transition to reach a remarkable milestone, totalling $ 1.1 Trillion, a record-breaking figure, as highlighted in a report by BloombergNEF (BNEF). The energy crisis, coupled with policy actions, increased the rapid deployment of clean energy technologies, driving substantial investment in the transition towards a more sustainable and low-carbon future. Despite reaching a record high, the global investment in the low-carbon energy transition falls short of what is necessary to achieve the net zero target. According to BNEFs Net Zero Scenario, a staggering $ 194 Trillion in investments will be required by CY50 to effectively transition to a sustainable energy system.

On the other hand, the effects of climate change are becoming more prominent as countries delay taking adequate steps to achieve the emission trajectory as outlined in the Paris Agreement. However, governments worldwide have taken some initiatives towards energy transition and reducing their dependency on fossil fuels. They have set new ambitious targets for renewable energy transition and the gradual phase-out of fossil-based technologies in transportation, generation and industry.

Electricity generation is expected to triple from CY20 to CY50, with 91% of the generation expected to come from renewable sources compared to 28% in CY20. Coal and oil-based power generation plants will witness a decline over the decade before being completely phased out. By CY50, out of the total electricity generation, 5% will be catered by fossil fuel, 4% by nuclear energy and the rest from renewable energy sources. (Source: GWEC 2023 report)

Regarding the global contribution to energy generation, renewable energy is expected to contribute 98% of the 2,518 TWh of electricity generation to be added between CY22 and CY25. Wind energy is expected to achieve a milestone of 1 TW of installed capacity by the middle of the current year and another 1 TW will be added by CY30. A total of 630 GW of wind energy is expected to be added globally between CY23 and CY27, out of which, 130 GW will be offshore. (Source: GWEC 2023 report)

3.2. Indias Renewable energy sector overview

Indias renewable energy sector has achieved remarkable global rankings, holding the fourth position in renewable energy capacity and wind power, and the fifth position in solar power capacity as per India Brand Equity Foundation (IBEF). With a compound annual growth rate of 15.92% between FY16-22, the sector is poised to double its capacity additions by 2026. Demonstrating its commitment, the government has allocated Rs. 19,500 Crore in the Union Budget 2022-23 to bolster the manufacturing of high-efficiency solar modules through a Production Linked Incentive (PLI) scheme for 280 GW solar capacity addition by 2030.

Indias installed renewable energy capacity, including hydro, stands at 165.94 GW, accounting for 40.6% of the overall installed power capacity as of October 2022. The country has set a robust target of achieving 500 GW of installed renewable energy capacity by 2030, with solar energy expected to contribute over 60% towards this objective.

Impressive progress is already evident, as non-hydro renewable energy capacity additions reached 4.2 GW in the first three months of FY23, surpassing the 2.6 GW added during the same period in FY22. This robust expansion aligns with the increasing renewable energy generation, exemplified by non-hydro renewable sources producing higher units year on year.

Northern India, with its immense potential capacity of 363 GW and focused policies, is poised to become the countrys renewable energy hub. Indias steadfast progress in the renewable energy sector underlines its commitment to a sustainable future and establishes its pivotal role in the global clean energy transition. (Source: CII)

4. Wind Energy Outlook

4.1. Global Wind Energy Outlook

In CY22, 77.6 GW of new wind power capacity was added worldwide, bringing the total wind capacity to 906 GW globally. Although new installations were 16 GW lower than the last year, CY22 marked the third-highest year ever in terms of wind installation in the history of wind power.

Global Market Status

Out of the total new wind installations of 77.6 GW in CY22, new onshore capacity stood at 68.8 GW, bringing the cumulative global onshore capacity to 842 GW. Although new onshore wind installations witnessed a dip of 5% YoY in CY22, the year still marked the third-highest capacity addition so far. On the offshore front, the total installed offshore wind capacity reached the level of 64 GW in CY22 as compared to 56 GW in CY21.

The top five markets in terms of new installations in CY22 were China, USA, Brazil, Germany and Sweden. Together, they accounted for 71% of new onshore installations. Region-wise, APAC & Europe were the largest contributors to new installations in CY22.

In terms of cumulative installed wind capacity in the world today, the top five contributors are China, USA, Germany, India and Spain. These countries together account for more than 72% of the worlds total installed wind power.

Under current policies across different countries, it is expected that new wind installation will exceed 100 GW in CY23 with a total of 680 GW of new addition in the next five years. The new installation rate in next five years is expected to grow with a CAGR of 15%, with an average new capacity addition of more than 136 GW per year until 2027. (Source: GWEC report)

Indias performance

Despite the global uncertainties triggered by the Russia-Ukraine war, the COVID-19 pandemic and recessionary pressures, Indias commitment towards renewable energy remains on priority. In CY22, India awarded 2.25 GW of standalone wind capacity and 2.45 GW of hybrid wind capacity through different auctions. India commissioned 1.8 GW of onshore wind capacity in CY22 as compared to 1.4 GW in CY21 with an increase of 28.5% as compared to last year.

Various contributing factors such as an expected increase in electricity demand in the coming years, the aspiration to become a $ 5 Trillion economy by 2025, growth in the manufacturing sector and a commitment to achieve net-zero emissions by 2070, are expected to provide a big boost to the renewable energy sector in India. India targets to achieve a cumulative wind capacity of 140 GW by 2030. (Source: GWEC report)

With its large population, India is one of the leading energy consumers in the world. Coal energy has been a major source of energy in the country. However, by the end of FY23, the contribution of coal to the total installed capacity mix declined to 49%, compared to 51% in FY22. Solar installation has become the second major contributor with 16% of total capacity, followed by hydropower at 11% and wind power at 10%. The Renewable Energy Sources (RES) that include small hydro projects, biomass power, urban & industrial waste power, solar energy and wind energy, account for 30% of the total installed capacity, up from 28% in the previous year.

Many steps have been taken by the Indian government to give a boost to the renewable sector in India. Indian government has laid down the Electricity (Promoting Renewable Energy through Green Energy open Access) Rules, 2022 to support the uptake of green power in the country. Another key step in this direction has been the Draft National Repowering Policy for Wind Power Projects, 2022, which aims to tap opportunities for repowering existing wind projects. In 2022, the Ministry of New and Renewable Energy (MNRE) also published a strategy document outlining an offshore wind tender trajectory of 37 GW by 2030, opening the door for offshore wind installations in the country. (Source: GWEC report)

4.2. Indian Wind Energy Outlook

According to the Central Electricity Authority (CEA), Indias ex-bus electricity demand is expected to grow by 75% by 2031-32 and 170% by 204142 compared to 2021-22. To meet this growing demand, wind power can play a leading role. It is expected that Indias new onshore wind market will continue to recover, with new additions peaking in 2025-26 with the complete expiry of the interstate transmission charge (ISTS) waiver in June 2025. India is likely to add 21 GW of onshore wind capacity between 2023 and 2027.

As of March 31, 2023, Indias total installed wind capacity stands at 42,633.13 MW, up by 5.6% from the previous year.

In FY23, the highest new wind capacity was added in Rajasthan (866.6 MW), followed by Gujarat (769.7 MW), Madhya Pradesh (324.4 MW), Karnataka (164.05 MW) and Tamil Nadu (150.8 MW). Currently, Tamil Nadu has the highest total installed wind capacity of 10.01 GW, closely followed by Gujarat (9.97 GW), Karnataka (5.29 GW), Rajasthan (5.19 GW), Maharashtra (5.01 GW), Andhra Pradesh (4.09 GW) and Madhya Pradesh (2.84 GW).

The Ministry of New and Renewable Energy (MNRE) has outlined a wind-specific renewable purchase obligation (RPO) plan for 2030 with a target of 8 GW onshore wind tender every year between 2023 and 2030. This plan has been outlined with the objective to harness the high wind energy potential in states including Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Telangana. As per MNRE letter dated March 31, 2023, India will invite Renewable Energy Project bids for 50 GW per annuam which includes 10 GW of Wind Energy Projects during the period from FY24 to FY28.

The MNRE, in collaboration with the Danish Energy Agency, has published a conceptual plan for 15 offshore wind projects, paving the way for offshore wind development. The increase in commodity prices and the impact of a shrinking supply chain in Europe present a significant opportunity for India in the wind energy supply chain, further boosting the wind energy sector in India. All these factors are expected to favour the wind energy sector in India.

5. Business Overview

5.1. Suzlons Business Overview

Suzlon Energy Limited is a global renewable energy solutions provider. It specialises in the design, development, manufacturing, installation and maintenance of wind turbines and related renewable energy components. Since the Companys inception in 1995, it has emerged as one of the leading wind power companies in the world.

In addition to its expertise in wind energy, Suzlon has successfully expanded its competencies to include solar power. The company is actively pursuing opportunities in Wind-Solar hybrid solutions, combining the strengths of both renewable energy sources.

Suzlon has an extensive global footprint across 17 countries, strategically positioning itself to serve global markets with over total installed wind turbines of more than 12,640 numbers crossing over 20 GW milestone as on 5th June 2023. The Companys manufacturing prowess is exemplified by its 14 state- of-the-art manufacturing units in India.

Within India, Suzlon has made significant contributions to the wind energy sector, operating more than 111 wind farms with an impressive installed capacity of over 13,880 MW. Suzlons involvement spans both onshore and offshore projects, demonstrating its role in driving the transition to clean energy.

Through its unwavering commitment to renewable energy infrastructure development, Suzlon continues to play a pivotal role in advancing the clean energy agenda. With a strong focus on quality, innovation and sustainability, Suzlon Energy Limited remains a key player in the global renewable energy landscape.

5.2. Products and Technology

Increased market competition, lower tariffs and the availability of cheaper sources of power like solar energy have made it necessary for wind turbine manufacturers to focus and invest more on research and development and product innovation. Suzlon, with its strong knowledge base and track record of 27 years, has prioritised and focused on enhancing its product portfolio. Over the years, Suzlon has made consistent efforts to build a strong customer base across the globe and established excellent relationships with them.

Suzlons robust technology has enabled us not only to achieve the designed life but also to increase the turbine life with refurbishment and necessary safety assessments. The current product portfolio includes,

• S120-140 (6-7% higher energy yield over S111)

• S133-140, 160 (27-33% higher energy yield over S120)

• S144-140, 160 (11-12% higher energy yield over S133)

In FY23, Suzlon commissioned the first proto of its new S144 model. These consistent developments are a reflection of the Groups focus towards meeting the market demand through new product innovation, investing in R&D and ensuring world- class technology and products for the customers.

6. Key Initiatives and priorities

In FY23, Suzlon witnessed growth in wind installations compared to FY22. In FY24, the Companys major focus will be to regain market leadership in the Indian wind industry. The Company also focuses on expanding its wings in hybrid (wind and solar) space. The key priorities and initiatives to achieve these goals are as follows:

• To provide best-in-class service throughout the lifecycle of wind energy projects

• To regain the market leadership with an improved market share and building up of order book

• To further strengthen the Balance Sheet position

• To reduce fund based debt and arrange sufficient non-fund based working capital limit

• To reduce Levelised Cost of Energy (LCOE) through better technology and products more specific to the market conditions

• To optimize cost through value engineering and improved efficiencies across the value chain

• To continuously surpass the market benchmarks and achieve the best machine availability

• To help improve efficiencies and better yields for our customers

7. Business risks and mitigation measures

Suzlon has an active risk-mitigating strategy that allows for a comprehensive view of the internal and external environment, enabling proactive measures to address challenges to the best extent possible. The key elements of the program are summarised below:

A. Operational risks

• Technology risk: Price pressure has driven technology innovation, which has paved the way for wind turbine manufacturers to develop innovative and cost-effective solutions. Suzlon prioritises research & development and aims to develop innovative technology that would allow it to operate successfully in the Indian market. With the help of in-house technology and design capabilities, Suzlon has developed a comprehensive portfolio of products with multi-MW turbines. The Group works consistently towards performance improvement, cost reduction across components and bringing efficiency in the overall project lifecycle.

• Supply chain risk: Wind turbine manufacturing requires meticulous and time-bound planning of the supply chain, including resource procurement. Critical components like gearboxes, bearings, converters and blades have long ramp-up durations, limiting agility. The Group has worked to create alternative sources through the expansion of the vendor base, localisation and standardisation of certain components to ensure the timely availability of the critical components and keep the costs of procurement under control. Most of components costs are linked to the cost of aligned commodities like steel, copper, infusion system, glass fabric etc., and to such extent, the Group carries the risk of fluctuations in commodity rates. The global execution of 77.6 GW wind projects in CY22 stands as the third-highest wind installation. Geo-political disturbances continued to add to the supply chain disruptions that led to hindrances in the timely component availability thereby affecting the cost and schedule. Suzlon takes consistent efforts to reduce the existing pressure on the supply chain by developing alternative vendors, securing longterm commitments, and exploring options for limited access to non-fund-based (NFB) limits.

• Project execution risk: In India, wind industry in the recent past had witnessed struggle in project execution due to delay in arranging land and statutory approval resulting into cost and time overruns. Other risks associated with the project life cycle include extreme climatic and environmental conditions, timely availability of grid capacity for evacuation, availability of suitable land resources, timely availability of crane for installations and timely execution of project activities by subcontractors etc. The Group undertakes regular monitoring of project progress considering the agreed plan to ensure timely completion of the project.

• Business volume risk: The last few years saw wind tariffs going as low as Rs. 2.43 per unit but have now moved upward in the last auctions. SECI Tranche XIV ISTS wind auction concluded at a tariff of Rs. 3.18 for 190 MW and Rs. 3.24 for 500 MW. The Group is regularly monitoring the progress and working on building a good order book in advance and working with additional segment of customers under the Commercial and Industrial sector (C&I Segment).

B. Financial risks

• Availability of adequate working capital:

The Wind Turbine Generator (WTG) business is working capital intensive and thus sizeable non-fund based working capital limit is required for execution of WTG orders. Currently, the Company operates with a limited availability of working capital, which restricts progressive revenue growth. Until the Company is able to arrange adequate amount of working capital limit on permanent basis, the Company may face risk of execution delays or losing orders.

• Delay in funding for planned capital expenditure: The Company has launched a new WTG model, which will require certain capital expenditure (mainly towards blade moulds) on timely basis. Large part of the future orders is expected to be for this new WTG model. Until the Company is able to fund the planned capital expenditure, the Company may face risk of suboptimal capacity utilisation.

• Poor financial position of distribution companies: Electricity distribution companies in several States of India are still reeling under financial distress. While the Company does not have any direct commercial relationship with these distribution companies, indirectly it could still have material adverse effect on our business volume, results of operations and future cash flow. Any such difficulties or instability of such distribution companies in general could create an adverse market perception and thus possibly could lead to adverse impact on our business.

• High level of inflation in India: Inflation rates in India have remained volatile in recent years and such volatility may continue further. India has experienced high level of inflation compared to developed countries in the recent past. This could cause further rise in the cost of raw material, other direct costs and overheads leading to decline in profits. High fluctuations in inflation rates may make it more difficult for us to accurately estimate or control our costs. The Company may not be able to pass any such resultant increase in cost to our customers either entirely or partly. This may adversely affect our business and financial condition. Rising inflation could also lead to corrective measures resulting to interest rate hike, which may adversely impact the Company due to high financial exposure.

8. Internal control systems and their adequacy

Management Assurance team, consisting of in-house team members and experienced co-sourced partners, undertakes independent reviews of risks, controls, operations and procedures, identifying control and process gaps and recommending business solutions for risk mitigation. The Group runs in-house Risk and Misconduct Management Unit which supports management to assess, evaluate, strengthen and institutionalise value system from the standpoint of ethical business practices. Complaints received under whistle-blower policy are evaluated on a regular basis. The Audit Committee of the Board periodically reviews the Companys management audit reports, audit plans and recommendations of the auditors and managements responses to those recommendations. The Audit Committee met four times during the year.

Corporate Social Responsibility

In FY 23, Suzlon Foundation (SF), a section 8 company mandated to lead the corporate social responsibility programs of Suzlon Group, continued to catalyze the social development ecosystem through its unique impact model Suz-Tain. The Foundation, with its philosophy of creating Sustainable Development for Sustainable Economy, ensures that Suzlon Group integrates sustainability into its core business strategy. The Foundations ensures that the four main CSR goals evolved from Suzlons in-depth understanding of both, the business and the social ecosystem.

Powering a greener tomorrow for Suzlon, therefore involves responsible management of its financial, natural, social, human, and physical capitals. Suzlon focuses on creating sustainable value by benefiting the planet and society while enhancing its market performance. This approach of conducting responsible business has resulted in cost saving, improved stakeholder relationships, and better risk management. Through its Corporate Social Responsibility (CSR) and Sustainability strategy, Suzlon is committed to achieving the UNSustainable Development Goals (SDGs), UN Global Compact Principles, and National Voluntary Guidelines (NVGs) since 2008. Suzlon with its measurable, impactful and self-sustaining CSR activities, aims at supporting rural and underprivileged communities to become selfreliant. The Suz-Tain CSR model evolved from a provider- beneficiary to a partnership approach. It considers all the key stakeholders to plan, implement, monitor and support village level sustainable development interventions. This model focuses on tracking, monitoring, measuring and evaluating Suzlon CSR Programs. Following are the goals:

• Long term goal - To empower village institutions and bring collectivism in the villages.

• Mid-term goal - This involves the Zero programs specifically designed to address the needs of disadvantaged communities like senior citizens, under five children, specially-abled and vulnerable local environment.

• Short term goal - Integrated development activities for community that address the immediate village requirements.

Suzlon CSR ensures that need based issues are identified after due annual and ongoing consultation with stakeholders like the villagers, key persons and government departments. A community satisfaction survey helps to receive feedback from the community members. A community grievance redressal mechanism is in place to systematically address the community grievances.

During FY 23, Suzlon conducted over 2,573 impactful CSR activities and touched lives in 609 villages reaching over 30,00,000 villagers and 10,00,000 households. The CSR activities were focused on six key areas - Environment, Empowerment, Health, Livelihood, Education and Civic Amenities. These activities were undertaken in consultation with communities and in collaboration with over 60 institutions such as Government, private agencies and corporate foundations. Additionally, Suzlons CSR programs leveraged Rs. 1.10 Crore of co-funding from other stakeholders like employees, customers and community members.

Key Achievements:

1. Environment:

26569 tree saplings of 73 different local species were planted. The fruit, shade giving trees, horticulture and agroforestry plants enrich the biodiversity, enhance health and improve livelihoods. 72 % of plants survived due to committed caretakers and well-defined monitoring plans. Awareness on tree plantation was conducted for over 1000 students to inculcate an environment protection attitude. 1,10,386 cubic meters of water was conserved mainly in the drought prone areas through farm pond, bore well recharge, pond desiltation, rain water harvesting and tree plantation initiatives benefitting 6,249 villagers due to increase in water availability in 9 villages. Suz-HOOK, developed to bring behavioural change in the rural households under the Zero Garbage programme, resulted in the collection and recycling of 4,540 Kgs of plastic waste in 115 villages and 46 locations surrounding Suzlon premises. Under Zero Sparrow Deaths programme Suzlon installed 6,807 bird conservation units like nests, water troughs and bird feeders, benefiting 19,572 birds of 24 species. 2,785 stakeholders were involved in 109 activities like tree plantation, plastic collection, bird conservation, quiz, pledge and awareness sessions as part of the World Environment Day celebrations. 29,248 Kgs of recyclable waste materials were converted into 5,754 innovative product items like wash basin, bird nest, Suz-Hook, pen holder, sign board, safety poster, flowerpot, dust bin, door, stool, library cupboard etc. These are useful for students, birds and people. Incinerator support for responsible disposal of sanitary pads was supported in Tamilnadu to 5 village schools for 1333 girl students and 686 kgs of sanitary pad waste was incinerated. 236 kgs of peacock feed was provided to enhance the dwindling peacock population in one Gujarat village benefitting 50 peacocks. Organic farming training awareness has benefitted 60 farmers giving them insight into low cost techniques without harm to environment and that are safe for humans. Seed broadcasting to enable growth of saplings in hilly areas was done in Karnataka on 10 hectors of land. To inculcate environmental consciousness among young minds 2000 saplings were raised in one school in Maharashtra through nursery for plantation in the village.

2. Empowerment:

Suzlon had formed over 500 VDCs (Village Development Committee) in the pre-pandemic period. Efforts were taken in the current reporting period to re-ignite them gradually. Village development committees (VDC) strengthening process was re-initiated in 7 States of India. Focus was given to selected VDCs on priority. In a structured manner, these have aligned with the 7-stage empowerment process. After ascending to stage four, 91 VDCs have started livelihood activities like rental of event management equipment like furniture, vessels etc., RO (Reverse Osmosis) water filtration unit, tailoring unit, agro service equipment rental like multi-seed drill machine and grading machine, reusable sanitary pad manufacturing unit, masonry construction tool rental, palm products marketing. 75 out of 91 VDCs (82%) are in a profitable stage and will soon be able to contribute financially for village development. Exposure visit for 26 VDC members was organised to learn about local replicable innovation in Rajasthan, Andhra Pradesh and Gujarat State. Suzlon firmly believes that these VDCs will soon start working towards sustainable development of the villages after Suzlon exits to focus on other strategic needs.

Additionally, Suzlon has consistently worked towards empowering rural women to make them financially and socially independent through the Self-Help Groups (SHG). The purpose of this initiative is to improve womens participation and development. This will further enable the upliftment of their families and villages.

International Day of Persons with disabilities was celebrated in Gujarat. Suzlon felicitated 43 volunteers from 18 villages for their contribution in service of persons with disabilities.

3. Health:

During FY 23, general health camps helped reach primary health care inputs to 2,310 villagers. Since women are vulnerable and often do not seek health support due to social, economic and physical barriers 4,573 village women were specially reached under women health initiatives like cancer screening & other women health checkup camps. Reusable cloth pads were distributed to 482 women this enabled them access to these feminine hygiene products to protect their health in Rajasthan State. Video screening about womens health was organized for 100 women in 7 villages of Karnataka. Awareness about supplementary food with breast feeding for infants was conducted for 20 mothers in Madhya Pradesh. Awareness and counselling sessions on personal hygiene and sanitation were conducted for 300 households in Andhra Pradesh. Anganwadi health awareness sessions were conducted for 313 pregnant women in Karnataka, Gujarat and Rajasthan state.

In snakebite prone areas of Maharashtra snake bite awareness and prevention sessions were conducted for 170 students from 7 schools. Dengue Awareness was conducted for 150 villagers in Karnataka.

Blood Pressure and Sugar diagnostic camps were conducted for 263 villagers in Karnataka. Distribution of supplementary food for 40 malnourished children was undertaken in Madhya Pradesh saving lives. Eye screening camp to address refractive errors and prescribe glasses was undertaken for 40 patients in Karnataka. Eye-Cataract screening camp was undertaken for 668 patients in 8 villages and 80 patients identified underwent cataract surgery getting back their vision in Tamil Nadu, Karnataka and Gujarat. Eye-cataract screening camp for 200 truck drivers was organized in collaboration with Truck driver association in Tamil Nadu and 18 of them identified underwent cataract surgeries. In Tamil Nadu, open gym equipment was provided that enabled 30 children to access exercise equipment resulting in better health status.

In order to ensure that the Police who are involved in public welfare are healthy, health camp was conducted for Police department in Tamil Nadu. 200 police personnel were reached out of which 80 of them were identified with health issues and were referred for further treatment. Vehicle support for extensive movement and polio vaccination coverage was provided to Primary Health Centre that was beneficial for 500 eligible children in Gujarat. Refrigerator was donated to Health Department in Tamil Nadu for storage of essential items.

Suzlon clinics operational for employees are also open for access to village community members. 9 Suzlon Medical Officers reached out to 29,535 patients during FY 23 through Suzlon free clinics and 41 villages were reached through community health camps involving Suzlon doctors.

4. Livelihoods:

This year Suzlon has focused on farmers under the livelihood initiatives reaching over, 3,048 farmers. 2,100 horticulture plants were provided to 210 farmers for sustainable income. Agriculture pipeline support was given to 1,382 farmers in Maharashtra, due to this, water will be available for 12 months for Agriculture activity which has resulted in the increased crop production. This will further translate into an increase in the cumulative income of Rs. 8 Lakh for the farmers. In Madhya Pradesh and Rajasthan, the cumulative income increased by Rs. 2.55 lakhs for 135 farmers due to improved methods of farming. In Madhya Pradesh and Karnataka 130 farmers cultivated green fodder for increase in livestock milk production in 35 acres. This resulted in a cumulative increase in income by Rs. 70,000/- for them. 2,062 farmers produced over 2,87,354 kgs of manure and thereby were able to increase their income due to Liquid decomposer technique support provided in Karnataka, Maharashtra. Madhya Pradesh, Rajasthan and Tamil Nadu. 48 farmers and their 200 livestock animals benefited from improved fodder grass seed distribution in Madhya Pradesh. 1,923 animals were treated through vaccination in Tamil Nadu. 2990 community members were provided a variety of livelihood support like goat rearing, small businesses, backyard poultry etc. In Karnataka and Gujarat 150 farmers received IABLP (Integrated Agriculture and Land Based Livelihood) training. 300 farmers adopted new practices through Kisan Pathshala (farmer field school initiative) in Madhya Pradesh. Honey bee keeping training was provided to 22 youths in Tamilnadu.

78 villagers and women benefitted through the tailoring machine support and used it for income generation activity in Gujarat, Madhya Pradesh, Rajasthan and Tamil Nadu.

Through Suzlon employee contribution as part of meaningful birthday celebrations sewing machines were provided to 15 women as livelihood support which resulted in income increase by ?0.94 Lakh in Karnataka and Tamilnadu. Tailoring training provided to 37 women resulted in income increase by ?0.86 Lakh in Madhya Pradesh, Rajasthan and Gujarat.

Suzlon CSR was one of the sponsors in Kutch for a regional event called the Paatkori initiative in which 250 stakeholders including the artisans that were part of Suzlon CSR and customer collaborative SuJeevan project initiative, in the previous year, gathered with other artisans for an exhibition and market exposure to enhance their collective livelihood opportunities. 138 households in Karnataka and Tamil Nadu received loans with minimum interest from corpus fund given to VDC. 30 Self Help Group members received financial support through a revolving fund in Andhra Pradesh and Maharashtra. These amounts were used mostly to purchase livestock or start a small business.

In Tamil Nadu the annual income of one deserving family increased by Rs. 12,000/- through livelihood support for laundry service-based livelihood.

5. Education:

401 schools were supported in FY 23 through various initiatives benefiting students with increase in knowledge, access to amenities and exposure to modern facilities. 37,086 students were supported through various education activities. 193 students benefitted with better facilities due to support provided to enhance the school infrastructure like compound wall, playground wire fencing and playground levelling for their safety in Gujarat and 300 students in Tamil Nadu benefited due to school playground cleaning. 1895 students stood much to gain from school furniture support in Maharashtra, Tamil Nadu and Rajasthan.

150 students have undergone digital internet training in Karnataka to be better equipped for the digital world. 310 students in Karnataka benefited from Digital E- learning unit installation. In Maharashtra, 117 students learned computer skills. E-learning support was provided to Anganwadi (child care centre) for 348 under -five children in Gujarat. 875 students benefited form Library cupboard support in Gujarat. Library kit was provided for 1877 students in Tamilnadu. In Maharashtra, Madhya Pradesh, Tamilnadu, Andhra Pradesh and Telangana 12318 students received Education kits consisting of notebooks and accessories. As part of the school competition that helps to develop a students personality, 13 winners were identified out of 95 participating students in Karnataka. 65 students from 8 schools in Maharashtra state participated in Chess Board Training and Competition. 40 students from families with no education background improved their scholastic performance due to interventions from tuition centre initiative. 2,986 students in Madhya Pradesh, Rajasthan, Tamilnadu and Gujarat received better knowledge through awareness program on environment. Road safety program was undertaken for 180 students in Tamilnadu inculcating safety habits.

6. Civic Amenities:

LED (Light Emitting Diode) bulb were installed for 1000 households and 133 streetlights resulted in 771200 hrs of savings in conventional energy. 20 solar streetlights, 90 Solar Home UPS (Uninterruptible power supply) and 60 school solar lighting systems resulted in 27860 hrs of savings in conventional energy.

5,000 cubic meter of water was made available to villagers for drinking purpose due to installation of drinking water tank at a Primary Health Centre in Maharashtra. 3,000 cubic meter water was made available for 1500 domestic animal through water tank installation in Gujarat. 1,000 cubic meter of ground water capacity was increased due to farm pond repair in Maharashtra that benefited 125 villagers. 600 cubic meter water became available through water tank installation in school for 40 students in Rajasthan. In Tamil Nadu 300 cubic meter water was made available by cleaning water canal to enable ease of water flow which resulted in decrease in water scarcity for 100 villagers as well as increase in water storage capacity by 290 cubic meter benefitting 377 villagers due to water tank installation.

Anganwadi (child care centre) Support of Play material, meal plate and bowl, educational charts, mat, chairs, benches, water tank installation, weighing scale etc. was provided to 5754 children in Andhra Pradesh, Karnataka, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan & Tamil Nadu. 370 specially abled received support like wheel chair, walker, stick, hearing aid, tricycle in Andhra Pradesh, Karnataka, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan & Tamil Nadu. A school of 83 students in Tamil Nadu was provided with Fire Extinguisher support for safety. 10 fire rescue personnel from Fire Service Department were supported in Tamil Nadu with anti-smoke mask. In 450 villages prevention of mosquito related diseases was undertaken in Tamil Nadu by providing Mosquito spray machine to Panchayat. In Karnataka 24 crime and accidents incidents were detected through CCTV camera supported to Police Station. Due to supply of 20

Traffic Button Light supported to Police Department in Tamil Nadu, life of citizens was protected in approximately 100 incidents and accidents. Sport kit provided to 321 youth in Tamil Nadu & to 4145 students in Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Rajasthan & Tamil Nadu. 29 students in Maharashtra received better sanitation facility due to repair of toilets and 25 students benefited from school toilet construction.

Due to 8 sound systems installed in the villages in Gujarat state, there was an increase in community mobilization and communication during COVID pandemic and beyond.

7. Response to Disasters:

To prevent the spread of coronavirus infection (COVID-19) and mitigate its impacts 930 villagers received COVID-19 Control Kits (temperature screening gun, masks and sanitizers) along with frequent awareness sessions about prevention and control measures during the pandemic in various parts of the country. 15 personal protective equipment (PPE) kits were provided to at risk sanitary workers in Tamil Nadu. Reusable cloth masks were also distributed to 350 villagers in Rajasthan. 2000 villagers were screened using pulse oximeter & temperature screening gun that was provided to 2 Gram Panchayats in Tamil Nadu.

8. Employee volunteering and employee giving:

In FY 23, Suzlon through its CSR employee volunteering and giving program brought some solace to the families of persons in need of educational support; eased the burden of medical expenses of needy persons; financially supported family members of employees deceased due to the COVID-19 pandemic through Suz-COVID-19 funds; brought hope to women through livelihood support and enabled mobility to the specially-abled people; provided educational tools to students and protected the environment.

7,341 Volunteers (include 4651 Suzlon employees and 2690 contract staff) participated this FY 23 in various CSR initiatives by contributing 60,780 person hours (include 41,648 employee person- hours and 19132 contract staff person-hours).

389 employees contributed a total of 18.29 Lakh through 746 instances of voluntary donation towards social and environmental initiatives.

Additionally, 345 employees part of 24 business teams, 12 Vendor with 91 team members and 5 Customer teams have donated directly at the point of intervention amounting to over Rs. 90 Lakh.

Suzlon employees donated generously towards Humanitarian causes for medical treatment for 2 needy persons from Maharashtra and Tamil Nadu; educational support for 2 needy persons from Maharashtra.

Suzlon launched the meaningful birthday celebrations initiative for Suzlonians and family members. This resulted in a contribution of Rs. 3.10 Lakh by employees and their family members. These contributions were pledged for activities that were implemented on their behalf by Suzlon CSR team and local employees from sites near the villages. Through this contribution tailoring machine was provided to 15 rural women towards their livelihood; mobility devices were given to 7 specially-abled persons; Notebooks were distributed to 550 rural needy children and 80 trees were planted and protected making it a truly meaningful birthday for the Suzlonians and their families.

Suzlon promoted some special initiatives, with deeper involvement of the employees to benefit the villages directly while encouraging a healthy competition between the various business units. These included, the cloth bag promotion challenge in which 4,806 cloth bags and Rs. 50,559 were donated by 2,268 employees; cloth bags were crafted from usable waste clothes by 125 family members; under the community electricity energy awareness promotion challenge, 332 sessions were conducted with participation of 1 2,000 villagers and students. The Suz-HOOK Assembly challenge in which 4,579 Suz_HOOK (Suz_HOOK is an ingenious innovation by Suzlon that can be prepared using a small metal wire twisted in the shape of a hook and tied to a string that can be used to segregate and store plastic for recycling in low income setting) were assembled by Suzlonians from waste material; the Suzlon Walkathon challenge in which 20.96 crors steps were walked by 1,294 employees and the steps donated to various causes promoted under Suzlon CSR were matched with funds from Suzlon to the tune of Rs. 8.39 Lakh for the cause.

Highlights of consolidated results

A. Assets

1. Property, plant and equipment, investment property and intangible assets*

Particulars	March 31, 2023	March 31, 2022
Property, plant and equipment	696	774
Right-of-use assets	82	134
Capital work-in-progress	3	15
Investment properties	29	31
Intangible assets (including goodwill)	58	121
Intangible assets under development	3	4

*Net of depreciation and amortisation

a. During the year, property, plant and equipment of Rs. 81 Crore and intangible assets of Rs. 33 Crore were capitalised, compared to Rs. 105 Crore and Rs. 40 Crore respectively in the previous year.

b. Assets taken on lease are recognised as right-of-use assets. The reduction of Rs. 52 Crore in right-of-use assets is primarily due to the surrender or non-renewable of certain leased manufacturing facilities in the Special Economic Zone.

c. Capital work-in-progress primarily includes building, and plant and machinery under construction.

d. Investment properties consist of certain office premises that are leased and considered at deemed costs.

e. Intangible assets, which comprise of design and drawings, SAP and other software, amounted to Rs. 58 Crore as compared to Rs. 121 Crore.

2. Financial assets

Particulars	Non-current		Current		Total
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
Investments	0A	0A	-	-	0A	0A
Trade receivables	-	-	1,170	1,377	1,170	1,377
Cash and bank balances	357	94	368	501	725	595
Loans	-	-	0A	0A	0A	0A
Other financial assets	76	170	149	121	225	291
Total	433	264	1,687	1,999	2,120	2,263

A Less than Rs. 1 Crore.

a. Financial assets reduced to Rs. 2,120 Crore from Rs. 2,263 Crore in the previous year.

b. The net reduction of Rs. 143 Crore is primarily due to reduction in the trade receivables and other financial assets by Rs. 207 Crore and Rs. 66 Crore respectively while cash and bank balances have increased by Rs. 130 Crore.

c. The decrease in trade receivables is due to the timely realisation of receivables and lower new addition.

d. The decrease in other financial assets is primarily due to the refund of security deposit received upon surrendering or non-renewable of lease facilities.

e. The increase in cash and bank balances is mainly attributed to the collection of proceeds from the Rights issue, which remained unutilised near the end of the year, utilised subsequently.

3. Non-financial assets

Particulars	Non-current		Current		Total
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
Inventories	-	-	1,827	2,208	1,827	2,208
Other assets	40	29	627	811	667	840
Current tax asset, net	-	-	0*	1	0*	1
Total	40	29	2,455	3,020	2,495	3,049

a. Non-financial assets reduced to Rs. 2,495 Crore from Rs. 3,049 Crore in the previous year.

b. The reduction of Rs. 554 Crore was mainly due to the reduction in inventories and other assets by Rs. 381 Crore and Rs. 173 Crore respectively.

c. The decrease in inventories is primarily attributed to improvements in lead time for procuring certain key components, strict procurement norms and enhanced project execution.

d. The net reduction in other assets is primarily due to the utilisation and refund of GST input credit, partially offset by an increase in vendor advances.

B. Equity and liabilities

1. Equity share capital

Particulars	March 31, 2023	March 31, 2022
Authorised share capital	11,000	11,000
Issued share capital	2,458	1,847
Subscribed and fully / partly paid-up share capital	2,454	1,843

a. The subscribed and fully paid-up share capital is Rs. 2,414 Crore and partly paid-up share capital is Rs. 40 Crore, thus totalling Rs. 2,454 Crore, compared to Rs. 1,843 Crore in the previous year.

b. The increase of Rs. 611 Crore is primarily due to the following factors:

i. The issuance of equity shares to existing shareholders on a right basis (Rights issue) amounting to Rs. 440 Crore

ii. The issuance of equity shares upon conversion of Optionally Convertible Debentures (OCD) amounting to Rs. 114 Crore

iii. The issuance of equity shares to Foreign Currency Convertible Bonds (FCCB) bondholders amounting to Rs. 57 Crore

2. Other equity

Particulars	March 31, 2023	March 31, 2022
Equity component of compound financial instruments	-	14
Capital reserve	23	23
Capital reserve on consolidation	0A	0A
Capital redemption reserve	15	15
Legal and statutory reserve	1	1
General reserve	917	917
Securities premium	10,668	9,611
Capital contribution	6,505	6,273
Money received against share warrants	-	232
Retained earnings	(18,876)	(21,873)
Foreign currency translation reserve	(608)	(582)
Total	(1,355)	(5,369)

A Less than Rs. 1 Crore

a. Equity component of compound financial instruments

The reduction in the equity component of compound financial instruments is attributable to the conversion of FCCB.

b. Securities premium

The increase of Rs. 1,057 Crore is due to the following factors:

• The issuance of rights shares, net of issue expenses, amounting to Rs. 640 Crore,

• The conversion of OCD amounting to Rs. 403 Crore and

• The conversion of FCCB amounting to Rs. 14 Crore.

c. Capital contribution

The increase of Rs. 232 Crore in the capital contribution is on account of the transfer of balance lying in the share warrants account, on share, warrants surrendered and lapsed.

d. Money received against share warrants

During the year, 49.86 Crore convertible warrants allotted in June 2020 got surrendered and lapsed and the amount got transferred to capital contribution.

e. Foreign currency translation reserve (FCTR)

The change in FCTR is due to exchange rate fluctuations resulting from the translation of the financial statements of overseas subsidiaries into the reporting currency of the parent company, i.e. INR.

3. Financial liabilities

a. Borrowings

Particulars	Non-current		Current		Total
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
Secured	1,509	5,513	42	27	1,551	5,540
Unsecured	8	79	-	-	8	79
Total	1,517	5,592	42	27	1,559	5,619
Current maturities of longterm borrowings	-	-	346	771	346	771
Grand total	1,517	5,592	388	798	1,905	6,390

i. Total borrowings reduced to Rs. 1,905 Crore from Rs. 6,390 Crore in the previous year.

ii. The reduction of Rs. 4,485 Crore is on account of:

• Net repayment of the borrowings amounting to Rs. 1,339 Crore;

• Conversion of FCCBs into equity shares amounting to Rs. 53 Crore;

• Conversion of OCD into equity shares of the Company and conversion of CCPS into equity shares of a subsidiary pursuant to the implementation of Refinancing Proposal amounting to Rs. 2,981 Crore and

• De-recognition of liability amounting to Rs. 112 Crore pursuant to a dissolution of an overseas subsidiary.

b. Other financial liabilities

Particulars	Non-current		Current		Total
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
Trade payables	-	-	895	1,840	895	1,840
Lease liabilities	18	58	15	17	33	75
Other financial liabilities	19	22	202	363	221	385
Total	37	80	1,112	2,220	1,149	2,300

i. Other financial liabilities reduced to Rs. 1,149 Crore from Rs. 2,300 Crore in the previous year.

ii. The reduction of Rs. 1,151 Crore is due to the following factors:

• Trade payables decreased by Rs. 945 Crore as a result of the retirement of payables through improved liquidity bringing overdue payments under control ,

• Lease liabilities decreased by Rs. 42 Crore towards surrender of leased manufacturing facilities

• Other financial liabilities decreased by Rs. 164 Crore, primarily on account of de-recognition of interest accrued on borrowings amounting to Rs. 63 Crore pursuant to dissolution of an overseas subsidiary, Rs. 49 Crore towards settlement of advances received against assets held for sale and balance Rs. 52 Crore towards settlement of other liabilities.

4. Other liabilities and provisions

Particulars	Non-current		Current		Total
	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022	March 31, 2023	March 31, 2022
Contract liabilities	-	-	573	477	573	477
Other liabilities	0*	0*	58	81	58	81
Provisions	168	130	569	484	737	614
Total	168	130	1,200	1,042	1,368	1,172

" Less than Rs. 1 Crore

a. Contract liabilities increased to Rs. 573 Crore from Rs. 477 Crore in the previous year, primarily due to the signing of new sale contracts

b. Provisions increased to Rs. 737 Crore from Rs. 614 Crore in the previous year, mainly due to increase in customer-related provisions.

c. Other liabilities reduced to Rs. 59 Crore from Rs. 81 Crore in the previous year

C. Cashflow

The business generated positive cash flow from operations. Net cash generated from operating activities and investment activities is Rs. 467 Crore and Rs. 85 Crore respectively. However, repayment of long-term liabilities resulted in a cash outflow of Rs. 684 Crore from financing activities. Net repayment of long-term borrowings stood at Rs. 1,354 Crore and payment of interest and other borrowing costs amounted to Rs. 425 Crore, while proceeds from short-term borrowings were Rs. 15 Crore and proceeds from the right issue, after deducting issue expenses, are Rs. 1,080 Crore.

D. Results of operations

Particulars	March 31, 2023	March 31, 2022
Revenue from contracts with customers	5,947	6,520
Other operating income	24	62
Other income	20	22
Total income	5,990	6,604
Cost of goods sold	3,783	4,332
Employee benefits expense	609	545
Finance costs	421	735
Depreciation and amortisation expense (including impairment losses)	260	260
Other expenses	747	815
Total expenses	5,819	6,687
Profit/ (loss) before exceptional items and tax	171	(83)
Exceptional gain	(2,721)	(83)
Tax expense	4.42	167
Share of loss of joint venture	-	(10)
Net profit/ (loss) for the year	2,887	(177)

Principal components of results of operations

1. Revenue from operations

The Group achieved revenue of Rs. 5,947 Crore as against Rs. 6,520 Crore in the previous year, a reduction of 8.8%. The reduction is mainly due to lower sales of WTGs as the Company was facing certain constraints on working capital facilities.

2. Cost of goods sold (COGS)

COGS as a percentage of revenue from operations stood at 63.6% as compared to 66.4% in the previous year. The difference is mainly attributed to the sales mix.

3. Employee benefits expense

Employee benefits expense increased by 11.70% to Rs. 609 Crore from Rs. 545 Crore in the previous year. This is primarily due to the growth in business operations and annual increments. Suzlon has retained its overall workforce, as this talent pool is critical for current business operations as well as for capturing future industry opportunities.

4. Finance cost

Finance cost decreased to Rs. 421 Crore compared to Rs. 735 Crore in the previous year. The cost reduction is a result of substantial loan repayments made during the year and reduced amount of outstanding debt.

5. Depreciation and amortisation expense (including impairment losses)

Depreciation and amortisation expense remained stable.

6. Other expenses

Other expenses (excluding exchange differences) decreased to Rs. 740 Crore from Rs. 877 Crore in the previous year, as a result of effective cost control and lower sales volumes. The exchange differences resulted in a loss of Rs. 7 Crore compared to an exchange gain of Rs. 61 Crore in the previous year.

7. Profit / (loss)

The consolidated EBITDA (before exchange differences) is Rs. 839 Crore which is almost at par with Rs. 828 Crore of the previous year, despite the decrease in sales volume. This can be attributed to the continued good operating performance and effective cost control. The consolidated EBITDA (after exchange difference) is Rs. 832 Crore compared to EBITDA of Rs. 889 Crore in the previous year.

Consolidated EBIT stood at Rs. 572 Crore compared to Rs. 630 Crore in the previous year. There was a gain in exceptional items of Rs. 2,721 Crore during the year as compared to Rs. 83 Crore in the previous year. Therefore, net profit after tax stands at Rs. 2,887 Crore compared to a loss of Rs. 166 Crore in the previous year. The share in profit/(loss) of the joint venture is ? Nil compared to the loss of Rs. 10 Crore in the previous year as the Company has sold its stake in SGL, a joint venture entity.

E. Key financial ratios

Particulars	March 31, 2023	March 31, 2022	Change(%)
Debtors turnover ratio(i)	4.67	5.08	(8)
Inventory turnover ratio(i)	2.95	2.98	(1)
Interest coverage ratio(ii)	1.35	1.96	(31)
Current ratio(iii)	1.55	1.20	29
Debt-equity ratio(iv)	1.73	(1.79)	197
Operating profit margin (%)(i)	13.99	13.64	3
Net profit margin (before exceptional) (%)(iv)	2.80	(3.98)	170
Return on net worth(iv)	262.69	4.96#	5200

(i) There is no significant change (i.e., change of more than 25% compared to the immediately previous financial year) in the ratios.

(ii) Reduction in ratio is due to towards lower EBIT as compared to previous year.

(iii) Retirement of trade payables and reduction in current maturities of borrowings has resulted in a better current ratio.

(iv) During the year, pursuant to the refinancing of debt, borrowings have gone down substantially and thereby there is reduction in the finance cost and the exceptional gain being higher than previous year , the improvement in certain ratios is high and exceptional.

# Since there is a loss for the year and a negative net worth, the ratio appears to be positive.

Detailed explanation of ratios

1. Debtors turnover ratio

This ratio quantifies a Companys effectiveness in collecting receivables or money owed by customers. It is calculated by dividing turnover by average trade receivables.

2. Inventory turnover ratio

The inventory turnover ratio how quickly a Company sells and replaces its inventory during a period. It is calculated by dividing the cost of goods sold by the average inventory.

3. Interest coverage ratio

The interest coverage ratio measures how many times a Company can cover its current interest payment with its available earnings. It is calculated by dividing earnings before interest and tax (EBIT) by interest costs.

4. Current ratio

The current ratio is a liquidity ratio that measures a Companys ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities.

5. Debt-equity ratio

This ratio evaluates a Companys financial leverage and the extent to which it finances its operations through debt versus wholly owned funds. It is calculated by dividing a Companys total debt by its shareholders equity.

6. Operating profit margin

Operating profit margin is a profitability ratio used to calculate the percentage of profit a Company generates from its operations. It is calculated by dividing the EBITDA by turnover.

7. Net profit margin

The net profit margin is equal to how much net profit is generated as a percentage of revenue. It is calculated by dividing the net profit for the year by turnover.

8. Return on net worth

This ratio measures profitability as a percentage of shareholders equity. It is calculated by dividing the net profit ( including exceptional gains) for the year by shareholders equity.

Cautionary statement

Suzlon Group has included statements in this discussion, that contain words or phrases such as "will", "aim", "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 "forwardlooking 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 the Suzlon Groups 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

• Suzlons ability to successfully implement its strategy, growth and expansion plans and technological initiatives

• Changes in the value of the 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

• Changes in the laws and regulations that apply to the wind energy industry, including tax laws

	For and on behalf of the Board of Directors
	Vinod R. Tanti
Place: Pune	Chairman and Managing Director
Date: July 25, 2023	DIN:00002266