Board's Report 2 the Composition of the CSR Committee - Mr

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Board's Report 2 the Composition of the CSR Committee - Mr STRATEGY & STRUCTURE BOARD’S REPORT To the Members, Your Directors are pleased to present the 26th Annual Report and the audited Financial Statement of the Company for the year ended 31st March, 2020. 1. Financial performance The financial performance of the Company for the year ended 31st March, 2020, is summarized as below: (` crore) Standalone Consolidated Particulars 2019-20 2018-19 2019-20 2018-19 Total Income 4,511.89 5,481.11 8,559.69 9,505.56 Profit before Interest, Depreciation, Tax and Exceptional 1,092.07 1,167.09 3,243.84 3,221.09 Items Finance Cost 321.95 411.79 1,051.07 1,192.40 Depreciation and Amortisation Expense 369.27 365.02 1,168.05 1,163.69 Share of Profit / (Loss) of an Associate / Joint Venture - - 28.04 31.93 Exceptional Items (23.02) - (61.46) - Profit before Tax 423.87 390.28 1,114.22 896.93 Tax Expense (73.94) 138.83 33.04 212.44 Profit for the year attributable to: Owners of the 497.81 251.45 1,099.92 695.13 Company Profit for the year attributable to: Non-controlling - - (18.74) (10.64) interest of the Company Other Comprehensive Income (1,075.85) 31.47 (1,088.18) 12.02 (attributable to Owners of the Company) Other Comprehensive Income - - 6.93 ** (attributable to Non-controlling interest of the Company) Total Comprehensive Income (578.04) 282.92 11.74 707.15 (attributable to Owners of the Company) Total Comprehensive Income - - (11.81) (10.64) (attributable to Non-controlling interest of the Company) ** Less than `50,000 2. Result of operations and the state of Consolidated affairs: z Revenue for fiscal 2020 stood at `8,559.69 crore as Standalone against `9,505.56 crore for fiscal 2019, showing a decrease of 9.95%. z Total revenue of the Company for fiscal 2020 stood at `4,511.89 crore as against `5,481.11 crore for fiscal 2019, z EBIDTA (before exceptional items) for fiscal 2020 stood showing a decrease of 17.68%. at `3,243.84 crore as against `3,221.09 crore for fiscal 2019, showing an increase of 0.71%. z EBIDTA for fiscal 2020 stood at `1,092.07 crore as against `1,167.09 crore for fiscal 2019, showing a z Profit after tax for fiscal 2020 stood at `1,099.92 crore decrease of 6.43%. as against `695.13 crore for fiscal 2019 showing an increase of 58.23%. z Profit after tax for fiscal 2020 stood at `497.81 crore as against `251.45 crore for fiscal 2019 showing an z Net worth decreased to `11,645.62 crore in fiscal 2020 increase of 97.98%. from `11,822.24 crore at the end of fiscal 2019. The decrease is due to change in value of listed equity z Net worth decreased to `9,400.20 crore at the end of investments through other comprehensive income. fiscal 2020 from `10,167.48 crore at the end of fiscal 2019. The decrease is due to change in value of listed z Net debt gearing stood at 0.77 times as at end of fiscal equity investments through other comprehensive 2020 compared to 0.85 times in fiscal 2019. income. Effects of COVID -19 on the business of the z Net debt gearing stood at 0.19 times as at the end of fiscal 2020 compared to 0.25 times as at the end of Company fiscal 2019. The ongoing COVID-19 related issues and the consequent lock-down of all non-essential services have led to a 108 JSW ENERGY LIMITED | INTEGRATED ANNUAL REPORT 2019-20 SECTION 1: MAPPING THE COURSE SECTION 2: DELIVERING OUR PROMISE SECTION 3: STRATEGY & STRUCTURE SECTION 4: FINANCIAL STATEMENTS SECTION 5: SUPPLEMENTARY INFORMATION significant disruption in the economic activity in the the year ended 31st March, 2020 in the prescribed format country. The disruption in the supply chain and logistics AOC-1 is attached as Annexure A to the Consolidated and the imposition of travel restrictions have impacted the Financial Statement of the Company and forms a part of this supply of key inputs to the power sector, and have also led Annual Report. to disruptions in billing and collections at the discom level. In accordance with Section 136 of the Companies Act, However, being an essential service, the supply of power 2013, the audited financial statements, including the continues uninterrupted albeit at lower PLFs throughout the consolidated financial statement and related information country. of the Company and audited accounts of each of its Despite the Covid-19 situation, the Company’s plant subsidiaries, are available on the website of the Company operations continue to run smoothly, while ensuring www.jsw.in/investors/energy. adherence to necessary safety measures. Further, as the No company has ceased to be a subsidiary, associate or majority of our capacity is tied-up under long-term PPA with joint venture of the Company during the year under review. two-part tariff, we will continue to receive fixed capacity charges based on availability which should largely insulate The details of the subsidiary companies as at 31st March, us against any major swings in profitability. There may be 2020, are as follows: a temporary impact on our cash flows due to moderation in the collection levels at discoms, which we should be Domestic Subsidiaries able to tide over through our prudent liquidity management A. JSW Energy (Barmer) Limited (JSWEBL) framework. (Formerly Raj WestPower Limited) Please refer to the Management Discussion and Analysis JSWEBL is a wholly owned subsidiary of the Company. section which forms a part of this Annual Report for The power plant was commissioned in the Financial details of the performance and operations review and the Year 2012-13 and comprises of 8 lignite based units of Company’s strategies for growth. 135 MW each aggregating to 1,080 MW. The Company has invested `1,726.05 crore as equity in JSWEBL as at 3. Transfer to Reserves 31st March, 2020. The Company does not propose to transfer any amount JSWEBL sources lignite from Barmer Lignite Mining (previous year `10.84 crore) to the Debenture Redemption Company Limited, and sells the entire power to the Reserve from Surplus. An amount of `4,109.26 crore Rajasthan Distribution Companies (‘Discoms’) under a (previous year `3,811.49 crore) is proposed to be held in the 30-year Power Purchase Agreement. Retained Earnings. During the year, JSWEBL achieved a Deemed Plant Load Factor of 82.34% (Previous Year 84.28%) and a Plant 4. Dividend Load Factor (PLF) of 61.93% (Previous Year 70.82%) with Your Directors have recommended a dividend of `1 (10%) per a gross generation of 5,875 million units (Previous Year share for the Financial Year 2019-20 [`1 (10%) per share in 6,700 million units). It’s net generation (after auxiliary the previous year], for the approval of the Members at the consumption) of 5,277 million units (Previous Year 6,017 ensuing 26th Annual General Meeting. million units) was sold to Discoms generating a total revenue of `2,658.93 crore (Previous Year `2,629.65 The dividend payout is in accordance with the Company’s crore) and a profit after tax of `385.75 crore (Previous Dividend Distribution Policy. Year `282.26 crore) on a standalone basis and a profit after tax of `413.79 crore (Previous Year `314.19 crore) on 5. Financial Statement consolidated basis during the Financial Year 2019-20. The audited Standalone and Consolidated Financial The tariff charged by JSWEBL is governed by Section 62 Statements of the Company, which form a part of this of the Electricity Act, 2003 and determined as per the Annual Report, have been prepared in accordance with the regulation laid down by Rajasthan Electricity Regulatory provisions of the Companies Act, 2013, Regulation 33 of the Commission (‘RERC’). RERC has granted Interim Tariff Securities and Exchange Board of India (Listing Obligations based on which JSWEBL has continued to raise bills and and Disclosure Requirements) Regulations, 2015 and the recognise revenue in its books. Indian Accounting Standards. Barmer Lignite Mining Company Limited (BLMCL) 6. Integrated Report BLMCL is a 51:49 joint venture between Rajasthan State The Company is pleased to present the Integrated Report for Mines and Minerals Limited (RSMML), a Government of the year ended 31st March, 2020, highlighting the Company’s Rajasthan enterprise and JSW Energy (Barmer) Limited commitment to sustainable value creation while balancing (formerly known as Raj WestPower Limited), set up to utilisation of natural resources and social development in develop lignite mines in two contiguous blocks viz., its business decisions. Kapurdi and Jalipa in the District of Barmer in Rajasthan. JSWEBL has invested equity of `9.80 crore in BLMCL 7. Subsidiaries besides providing unsecured subordinate debt of The performance and financial position of each of the `567.64 crore, as on 31st March, 2020. BLMCL has subsidiaries, associates and joint venture companies for incurred project cost of `2,276.06 crore as at 31st March, 2020, subject to audit. 109 STRATEGY & STRUCTURE BOARD’S REPORT BLMCL has achieved production of 4.50 million tonnes D. JSW Hydro Energy Limited (JSWHEL) of lignite from Kapurdi Mines and 0.90 million tonnes of (formerly known as Himachal Baspa Power Company lignite from Jalipa Mines in the Financial Year 2019-20. Limited) BLMCL supplied its entire lignite production to meet the JSWHEL became a wholly owned subsidiary of the total fuel requirement of JSWEBL power plant. Company pursuant to acquisition from Jaiprakash The transfer price of lignite is determined by Rajasthan Power Ventures Limited in September, 2015 and owns Electricity Regulatory Commission (RERC).
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