Adani Enterprises Limited is India’s largest listed incubator of tomorrow’s businesses Adani Enterprises Limited Annual Report 2020-21 Disclaimer We have exercised utmost care in the preparation of this report. It contains forecasts and/ or information relating to forecasts. Forecasts are based on facts, expectations, and/or past figures. As with all forward looking statements, forecasts are connected with known and unknown uncertainties, which may mean the actual result deviate significantly from the forecast. Forecasts prepared by the third parties, or data or evaluations used by third parties and mentioned in this communication, may be inappropriate, incomplete, or falsified. We cannot assess whether information in this report has been taken from third parties, or these provide the basis of our own evaluations, such use is made known in this report. As a result of the above mentioned circumstances, we can provide no warranty regarding the correctness, completeness, and upto-date nature of information taken, and declared as being taken, from third parties, as well as for forward looking statements, irrespective of whether these derive from third parties or ourselves. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Highlights of FY 2020-21 Revenues EBIDTA 40,291H crore 3,259H crore PAT attributable to owners* Net worth# 1,182H crore 18,910H crore *Before Exceptional items #Including Non-Controlling Interest Contents 003 Corporate snapshot 066 Our businesses 007 Awards and recognition 126 Corporate social responsibility 008 Our milestones 132 Corporate Information 010 Our Board of Directors 133 Directors’ Report and 013 Our consolidated Annexures performance 148 Management Discussion and 014 Business-wise performance Analysis 018 Performance highlights 165 Corporate Governance 020 About the Adani Group Report 028 Chairman’s message 190 Business Responsibility Report 034 Managing Director’s message 197 Standalone accounts 036 Chief Financial Officer’s 272 Consolidated accounts message 388 Notice 038 The soul of our Company 054 Our strategy THE BIG MESSAGE Adani Enterprises Limited is India’s largest listed incubator of businesses. The Company is structured to enhance value for all its stakeholders in a swift, secure and sustainable manner. Annual Report 2020-21 CORPORATE SNAPSHOT Adani Enterprises Limited is a proxy of the modern world. The Company is a complement of ten businesses that address OverviewCorporate the needs of a futuristic society. The Company has emerged Statutory Reports as a specialised incubator of businesses that are Financial Statements conceived, grown, matured and demerged. The effectiveness of the business model is reflected in the Company emerging as a prominent wealth creator in its own right and through its demerged entities. 003 Adani Enterprises Limited Financial Statements Statutory Reports Corporate OverviewCorporate Integrated Resource Management Adani Enterprises Ltd. (AEL) Our business provides end-to-end procurement Adani Enterprises Limited widened its presence across and logistics services. We have focuses on establishing new key industries, establishing developed business relationships businesses in the Natural itself as a potent force. with diversified customers across Resources, Transport & Adani Enterprises Limited various end-user industries. The Logistics, Utility and Strategic is presently focused on Company’s presence across its segments. businesses related to airports, value chain, including logistics, Since the Company’s listing roads, water, data centre, has made it one of the highest in 1994, it has maximised solar manufacturing, defence revenue generators for the Indian value for stakeholders, while and aerospace, edible oils Railways. contributing to nation- and foods, mining, integrated Mining Services building. resource solutions and The Company contributes to integrated agri-supply chain. Over the last 30 years, Adani India’s coal production supported Enterprises Limited has by environment-friendly practices. The Company possesses Mining 004 Annual Report 2020-21 Service Contracts for nine coal and operate six airports, which of Adani Enterprises Ltd. that blocks with a peak capacity are Ahmedabad, Lucknow, pioneered the establishment of of 100+ Mn metric tonnes per Mangaluru, Jaipur, Guwahati and integrated storage, handling and annum. The Company also Thiruvananthapuram for 50 years. transportation infrastructure for contracted for two iron ore mining The Company also acquired the apples in Himachal Pradesh. projects with a peak capacity of business of Mumbai International Data Centres 16 Mn metric tonnes per annum Airport Limited and New Mumbai Adani Enterprises Ltd., is poised International Airport Limited. Solar Manufacturing in building data centres across Adani Enterprises set up India’s Road, Metro and Rail the nation. The Company entered first and largest vertically To contribute to the infrastructure a joint venture with EdgeConnex integrated Solar Photovoltaic development of the country, the and formed AdaniConnex. The Manufacturing and EPC Company intends to develop joint venture intends to build data (Engineering Procurement national highways, expressways, centres in the National Capital and Construction) business in tunnels, metro-rail and railways. Region, Mumbai and Chennai. the Mundra Special Economic The Company possessed an Water Zone (SEZ). With projects of order book of H6,475 crore as The Adani Group intends to build over 250 MW commissioned on 31st March, 2021 comprising waste water treatment, recycling and more than 5400 MW under 10 contracts related to road and reuse projects under the execution, Mundra Solar PV Ltd construction. OverviewCorporate National Mission for Clean Ganga is the country’s fastest growing Adani Wilmar Limited Framework. rooftop and distributed solar EPC In a joint venture with Wilmar company. Defence & Aerospace Group (Singapore), this joint The Adani Defence & Aerospace Adani Airports venture of Adani Enterprises business is present in the defence Given that India is projected to focuses on oil seed crushing, and aerospace sector, helping become the third largest global manufacturing of edible and non- transform India into a world- aviation market in the next five edible oils, oleochemical products, Statutory Reports class high-technology defence years with limitations in existing manufacturing and trading of manufacturing destination airport infrastructure, the agro products like rice, pulses, aligned with the Make in India Company started Adani Airports besan, wheat flour, soya nuggets initiative. Holdings Ltd. with the motive of and sugar. nation building. Adani Airports Agro Products won a global tender of Airports Adani Agri Fresh Limited (AAFL) Authority of India to modernise Financial Statements is a wholly owned subsidiary Human capital As of 31st March, 2021, Adani employees comprised Engineers, employees was 40. The employees Enterprises Ltd. employed around Chartered Accountants and other were distributed across 44 790 individuals; 37% of these professionals. The average age of locations. Credit rating The following ratings have been provided by CARE to Adani Enterprises Ltd. Facility Domestic rating/ outlook Long-term facilities A/ stable Short-term facilities A1 SPV ratings Mining Services Rating agency Facility Domestic rating/ outlook CARE Mining Business (Ringfenced) – Long-term facilities A+(SO) / Stable CARE Parsa Kente Collieries Ltd (PKCL) – Long-term facilities A- (CE) / Stable 005 Adani Enterprises Limited AEL Corporate Rating agency Facility Domestic rating/ outlook BWR, Acuite Short-term facilities - Commercial Paper A1+ Mundra Solar PV Ltd. Rating agency Facility Domestic rating/ outlook BWR Long-term facilities - Bank Guarantee A-(CE) / Stable IndRa Long-term facilities A- / Stable IndRa Short-term facilities A2 Corporate Social Responsibility Adani Foundation, the CSR arm of the Adani Group, is engaged in activities across 18 States and 2,250 villages and towns, touching more than 5,00,000 families. The CSR programmes provide communities with quality education, health, safety, sanitisation, sustainable livelihood development and infrastructure development. The Foundation has also implemented four special projects (Saksham, Swachhagraha, SuPoshan and Udaan). The Company donated H15 crore to PM CARES Fund as a part of its CSR commitment. Financial Statements Statutory Reports Corporate OverviewCorporate Key numbers in FY 2020-21 63 1158 17.5 8+ 450+ Mn tonnes, MW, Solar module Mn tonnes, Mn consumers Km, Roads order volume of IRM volumes Mining Services served across its book segment production from Airports 3 mines 006 Annual Report 2020-21 Awards and recognition CII National Awards ABCI Awards OverviewCorporate CII National Award was Association of Business conferred to AEL in ‘Beyond the Communicators of India fence category’ for excellence awarded AEL an award for in water management for ‘Excellence in Communication driving Project Jeewan Amrit at Initiatives’ in December 2020; Sarguja, Chhattisgarh. the award is considered the Oscar of the Indian Statutory Reports communications industry. Financial Statements ICC Social Impact Award Greentech Safety Award Adani Foundation was awarded Adani Enterprises Limited for ‘Empowerment of Women’ won the top honour in the initiatives at the Indian ‘Environment protection’ Chamber of Commerce Social category at Greentech