Energy Limited SEC / JSWEL 20Th July, 2020 Listing Compliance BSE
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Energy Limited Regd. Office : JSW Centre Bandra Kurla Complex Bandra (East), Mumbai - 400 051 CIN: L74999MH1994PLC077041 Phone: 022 – 4286 1000 Fax: 022 – 4286 3000 Website: www.jsw.in SEC / JSWEL 20th July, 2020 Listing Compliance Listing Compliance BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exchange Plaza” Dalal Street Bandra - Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 533148 Scrip Code: JSWENERGY- EQ Sub: Annual Report of the Company for the Financial Year 2019-20 Ref: Regulation 34(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) Pursuant to Regulation 34(1) of the Listing Regulations, we hereby submit the Annual Report of the Company for the Financial Year 2019-20 along with the Notice of the 26th Annual General Meeting of the Company to be held on Thursday, 13th August, 2020 at 3.30 p.m. IST through video conference / other audio visual means. You are requested to take note of the above. Yours faithfully, For JSW Energy Limited Monica Chopra Company Secretary Part of O. P. Jindal Group Integrated Annual Report 2019-20 BETTER EVERYDAY A true visionary, A legendary industrialist, A great philanthropist, A legacy that will always be cherished! Shri O.P. Jindal | 7th August 1930 - 31st March 2005 Founder and Visionary, O. P. Jindal Group His life was an inspirational journey leading millions to follow the enlightened path. We will always carry on his values, an epitome of indomitable courage, endurance and integrity, his legacy will always remain with us. As we take leaps towards the future, we are fully committed to honour his vision and keep his legacy alive & carrying it forward to greater heights. CONTENTS About this Report 12 At a Glance 14 Section 1: How we achieve our aspiration A structure that drives performance and accountability This section looks at how we have organised ourselves and our business strategies to achieve our organisational aspirations. Board of Directors 102 Message from the Chairman and Corporate Information 105 20 Managing Director Risk Management Framework 106 Reflecting on the business segments 22 Board’s Report 108 Overview of the operating context 24 Corporate Governance Framework 142 Strategic Pillars 26 Corporate Governance Report 143 Business Model 28 Independent Limited Assurance on 164 Value Creation Model 30 Sustainability Disclosures Section 2: Delivering our promise Section 4: Financial Statements This section provides a review on how we have delivered on our In this section, we present a detailed analysis of JSW Energy’s promise and commitments. The section also encompass an overview financial statements, its financial position and performance in the of the operating context that indicates the factors against which we year under review, along with statements from Independent Auditors. have achieved these results. Standalone Working together with our stakeholders 34 Independent Auditor’s Report 170 Understanding what matters most to 36 Balance Sheet 176 stakeholders Statement of Profit and Loss 177 Report on Sustainability 40 Statement of Changes in Equity 178 An assessment of value delivered Statement of Cash Flows 180 Financial Capital 54 Notes to Financial Statements 182 Manufactured Capital 56 Consolidated Human Capital 60 Consolidated Independent Auditor's Report 240 Social and Relationship Capital 64 Consolidated Balance Sheet 246 Natural Capital 66 Consolidated Statement of Profit and Loss 247 Intellectual Capital 68 Consolidated Statement of Changes in Equity 248 Management Discussion and Analysis 71 Consolidated Statement of Cash Flows 250 Notes to Consolidated Financial Statements 252 Section 3: Gearing for future value creation Information of Subsidiaries, JVs, and This section provides a holistic picture to the reader on how we have 318 positioned and shaped ourselves to deliver on our promises. Associates (AOC-1) Areas of strategic development Pillar 1: Perseverance - Embracing a green future 94 Section 5: Supplementary Information Pillar 2: Endurance - Time tested business model 95 This section contains information that is complementary to the main report. Pillar 3: Resilience - Drawing on our strong 96 Financial Highlights (Standalone) 322 balance sheet Financial Highlights (Consolidated) 323 Pillar 4: Responsibility - Measuring our 97 ecological impact GRI Context Index 324 Pillar 5: Quality - Leveraging a healthy mix of Notice of Meeting 330 98 thermal & renewables Pillar 6: Support - Improving the quality of life 99 Forward-looking Statements Certain statements in this document constitute ‘forward-looking statements’, which involve known and unknown risks and opportunities, other uncertainties, and important factors that could turn out to be materially different following the publication of actual results. These forward-looking statements speak only as of the date of this document. The Company undertakes no obligation to update publicly, or release any revisions, to these forward-looking statements, to reflect events or circumstances after the date of this document, or to reflect the occurrence of anticipated events. We have tried, wherever possible, to identify such statements by using words such as ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward- looking statements will be realised, although we believe we have been prudent in our assumptions. 3 4 JSW ENERGY LIMITED | INTEGRATED REPORT 2019-20 PERSEVERANCE. RESILIENCE. ENDURANCE. 5 CORPORATE OVERVIEW PERSEVERANCE The ongoing transition towards clean energy, driven by climate change concerns as well as technological shifts, brings significant opportunities for JSW Energy to expand its footprint in the renewable space. 6 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 in our actions With India’s capability for long-term economic growth unabated, the power sector’s outlook remains sanguine. Given strong Government impetus for clean energy and improving project economics, we expect renewable energy to be the focus of India’s long term power story. At JSW Energy, supported by a strong thermal and hydro back-bone, we intend to capitalise on a new golden-age of renewable power generation, and play an influential role towards a carbon- free future. JSW Energy’s growth engine is powered by its prudent capital allocation, efficient operations, and superior project execution skills. These qualities are the foundation on which we persevere to explore new opportunities in our pursuit for long- term growth. 7 CORPORATE OVERVIEW RESILIENCE Our robust business model and balance- sheet strength help us to navigate through any unforeseen disruptions and execute our growth plans for our transition towards becoming a renewables powerhouse. 8 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 against all adversities The Power Industry has been one of the most challenging sectors of the Indian economy with uncertainty in coal supply, low capacity utilisation, high level of NPAs and weak financial stability of distribution companies. To top it all, the sector must now contend with a pandemic induced stress. Against this backdrop, many power sector players are seeing significant operational impact and are struggling to navigate through these particularly challenging times. At JSW Energy, we have been resilient in this situation, having put in place a holistic enterprise level response encompassing human, operational, financial and strategic aspects. We are confident in our ability to deal with the situation with strong operating proficiency, robust balance sheet and efficient cost structure, encompassing both O&M and finance costs. This should help us turn this crisis into an opportunity. 9 CORPORATE OVERVIEW ENDURANCE Our strategic foresight underscores our ability to endure the challenging sector dynamics, and paves the way for a positive and sustainable future. 10 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 for long term value creation At JSW Energy, our operating expertise and financial prudence, together with strong free cash flow generation, reinforces our confidence to endure the most challenging times. We look ahead to becoming a 10 GW company over the medium term, with incremental capacity predominantly coming from renewable sources. We have already sown the seeds by initiating the process of acquiring topographically productive land banks for commissioning new solar and wind capacities, and have been gradually building organisational capability. Over the years, we have meticulously designed our strategies with a long-term vision of being a leading energy company. In our journey of business excellence over the last 25 years, we have seen several challenging moments, only to emerge stronger at the other end. Going forward, we intend to play a pivotal role in establishing India’s energy security, while continuing to deliver