Annual Report 2019-20
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Adani Enterprises Limited Annual Report 2019-20 Committed to Value Creation Enabling a Sustainable Future Read Inside Corporate Overview 002 Profile of Adani Group 004 About Adani Enterprises 006 Our Businesses 012 Chairman’s Message 016 Managing Director’s Message 018 Message from the Chief Financial Officer 019 Shaping a stronger AEL 020 Investing in Growth 022 Financials - Measuring Growth 023 How we add value 024 Profile of Board of Directors 026 Corporate Social Responsibility 033 Awards and Recognition Statutory Reports 035 Directors’ Report 067 Management Discussion and Analysis Report 084 Corporate Governance Report 106 Business Responsibility Report “We continue to draw inspiration from our Financial Statements vision ‘Growth with Goodness’, to be a 120 Independent Auditor’s Report world class leader in 130 Balance Sheet businesses that enrich lives and contribute to 131 Statement of Profit and Loss nation building.’’ 133 Statement of Cash Flow Gautam S Adani 135 Notes to Financial Chairman Statements 202 Independent Auditor’s Report on Consolidated Financial Statements 210 Consolidated Balance Sheet 211 Consolidated Statement of Profit and Loss 215 Consolidated Statement “Defying unprecedented www.adanienterprises.com of Cash Flow challenges and a complicated external 217 Notes to Consolidated environment, AEL Financial Statements recorded a strong 308 Salient Features of the performance during the Financial Statements of year with a singular focus Subsidiaries / Associate / on creating value for our Joint Ventures stakeholders.” Scan this code with a QR reader app on your 317 Notice Rajesh S Adani smartphone or tablet and Managing Director know more about us Business begins with value creation. It lays the foundation for a sustainable future, nurturing and enabling lives as well as livelihoods. It is through devoted action and committed endeavours, we succeed in building extraordinary nations – contributing to its progress and development. At Adani, we have inculcated ‘nation building’ into our core, to promote and accelerate India’s growth story. Envisioning aspirations for a new India, we continue to spearhead change with our strategic value creation model, incubating businesses that leave a lasting imprint on our future. As we unravel opportunities in diverse territories – we remain singularly focused to create synergies of growth, built on the enthusiasm and energy to sustain an empowered nation. 002 Adani Enterprises Limited Profile of Adani Group Adani Group, is a diversified organisation in India with combined market cap of $21 Bn comprising 6 publicly traded companies. It has created world class transport and utility infrastructure portfolio with a pan-India presence. Adani Group is headquartered in Ahmedabad, in the state of Gujarat, India. Over the years, Adani Group has positioned itself to be the market leader in its transport logistics and energy utility portfolio businesses focusing on large scale infrastructure development in India with O & M practices benchmarked to global standards. With four IG rated businesses it is the only Infrastructure Investment Grade issuer in India. Adani owes its success and leadership position to its core philosophy of ‘Nation Building’ driven by ‘Growth with Goodness’ - a guiding principle for sustainable growth. Adani is committed to increase its ESG footprint by realigning its businesses with emphasis on climate protection and increasing community outreach through its CSR programme based on the principles of sustainability, diversity and shared values. Vision Values To be a world class leader Courage: Trust: Commitment: in businesses that enrich We shall We shall We shall lives and contribute embrace new believe in our stand by our to nations in building ideas and employees promises and infrastructure through businesses and other adhere to high sustainable value creation. stakeholders standards of business Culture Performing with ion P t as ca s enthusiasm and i io d n energy e Seizing new D opportunities with initiative and ownership p i h s r Consistently R u e e achieving goals s n u e r l t p s e Working with r t commitment in the n E pursuit of our aims I n n t o e i t g r a Working across functions and businesses to create synergies Annual Report 2019-20 003 Corporate OverviewCorporate Statutory Reports Adani Group – A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio 62.79% 100% 75% 75% Financial Statements APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables 100% 75% 37.4% AAPT 75% APL AGL Abbot Point IPP Gas DisCom AEL Incubator 100% 100% 100% 100% AAHL ARTL AWL Data Airports Roads Water Centre ~USD 21 Bn* Notice • Orange colour represents public traded listed vertical | Percentages denote promoter holding • * As on 31st March, 2020, USD/INR = 75.665 Repeatable, robust and proven businesses to deliver consistent RoE Proven execution capabilities and track record Operational Excellence with productivity, low-cost operations and high margins – among the best in the world Philosophical shift from B2B to B2C business, across key businesses Deep Management Experience in regulated environments Only Indian infrastructure portfolio with four Investment Grade (IG) issuers 004 Adani Enterprises Limited About Adani Enterprises Focusing on establishing new businesses in the infrastructure and energy sector, Adani Enterprises Limited (AEL) is an incubator that remains motivated to convert opportunities to thriving businesses. Since our listing in 1994, we have consistently delivered value – maximising returns for stakeholders and proactively participating in nation building activities. Over the past three decades, AEL has broadened its presence across key industries, to emerge as a market leader. We are now poised to nurture businesses that address issues of national importance. Businesses such as Adani Ports and Special Economic Zone Limited, Adani Power, Adani Transmission, Adani Green Energy and Adani Gas have been demerged from Adani Enterprises and/or independently listed on the Indian stock exchanges, to synergise growth and facilitate our nation building endeavours. To sustain our vision of an empowered nation, we now remain focused on building infrastructure for Airports, Roads, Water, Data Centre and Solar manufacturing. AEL Business Portfolio Resources Transport & Logistics Utility Strategic Investments Mining Integrated Airports Roads Rail/ Water Data Centre Solar Agro Defence Services Resources Metro Manufacturing Management (IRM) Annual Report 2019-20 005 Corporate OverviewCorporate Statutory Reports Financial Statements Our Value Creation History At AEL, we believe we are in the business of creating value. Our shareholder value enhancement is probably one Notice of the highest on the Indian Stock Exchanges and our focused value- creation philosophy and sound business strategies, centered around nation building, remain at the core of this outperformance. H 150 H 75,000 Value per share Value per share as on CAGR growth in Nov 1994 31st March 2020 ~25% 006 Adani Enterprises Limited Our Businesses Natural Resources Global player in Resources Management As India’s largest resources management Company and mine developer and operator (with domestic and global presence), we continue to ramp up our capacities of coal production across our mines. With non-fulfilment of coal demand being still met by coal imports, we are optimistic about our leveraging our integrated presence in complete supply chain with embedded technologies to drive operational efficiencies. Due to COVID-19 pandemic resulting into lockdown across opening up of coal sector Highlights of FY 2019-20 the country, the coal demand for for commercial mining and We have Mining Service FY 2020-21 is expected to remain planning to bring nearly 50 Contracts for 9 coal blocks subdued. Moreover, with huge coal blocks for auction. Other with the peak capacity of 100+ inventories, coal production for reforms measures include Mn metric tons per annum FY 2020-21 is not expected to investment of H 50,000 crore have any incremental volumes. for coal / mineral evacuation We also have two mining Despite these challenges, we are infrastructure, amending the projects for iron ore with the focused on implementation of our MMDR Act to offer over 500 peak capacity of 16 Mn metric projects and expect to deliver the mines of various minerals tons per annum projects on time. through auction process. Our projects are located in the Such reform measures offer States of Chhattisgarh, Madhya Government of India has brought great opportunity to AEL for Pradesh and Odisha in various reforms in the coal and sustainable business in natural Parsa East Kente Basan minerals sector, one such being resources sector. (PEKB) mine, operational since February 2013, is the first and the only captive open cast coal mine with washeries in the country producing at a peak capacity of 15 Mn metric tons per annum Two new mines opened i.e. GP III and Talabira II & III in April 2019 and December 2019 respectively 78.7 MMT IRM Volume 15.5 MMT Resources produced Annual Report 2019-20 007 Corporate OverviewCorporate Solar Manufacturing Contributing to nation’s green projects set to be completed energy commitment in FY 2020-21 We have an EPC order book Within a short span of time, of 400+ MW in FY 2020-21 the segment has established with major clients like SCCL, itself as the largest vertically NTPC, EESL and others. Integrated Solar PhotoVoltaic to strengthen our hold in the manufacturer