Wind energy turbine maker Suzlon's founder-chairman, Tulsi Tanti, took a steep cut of Rs1.46 crore in compensation, as the company incurred losses last financial year.
Tanti, also an executive director, saw his yearly pay packet shrink by 73 per cent, or Rs1.46 crore, last year and took home just Rs53.76 lakh, according to Suzlon's annual report. He was entitled to receive a compensation of Rs2 crore.
Suzlon, one of the major players in the global wind turbine market, is grappling with stiff competition and adverse economic conditions that are hurting its business. “Since the company has incurred losses for the financial year 2011-12, the excess remuneration...Has been recovered from the executive directors,” the report said.
He took home an annual salary of Rs48 lakh and retirements benefits worth Rs5.76 lakh owing to the losses incurred by Suzlon. Tanti also surrendered his gratuity last financial year.
Tanti was to receive little over Rs1.84 crore as salary in addition to retirement benefits of Rs10.8 lakh and gratuity of Rs4.32 lakh, says his service contract, valid till March 2014.
Another executive director, Vinod Tanti, also saw his compensation fall by Rs66.24 lakh in 2011-12. Vinod was paid Rs48 lakh as salary and Rs5.76 lakh as retirement benefits. He, too, did not receive any gratuity.
He was entitled to get little more than Rs1.10 crore as salary. The retirement benefits and gratuity payouts were to be Rs6.48 lakh and Rs2.59 lakh, respectively.
Vinod ceased to be an executive director from June 1, 2012 but continues as a non-executive director. In the financial year ended March 2012, Suzlon posted a net loss of Rs479 crore, while the revenue from operations stood at Rs21,082 crore during the same period. It had a cash profit of Rs418 crore.
Tanti, in his letter to shareholders, said the “negative profit after tax” was primarily due to high interest rates, forex losses, deferred tax and other non-cash items.
The company's net debt touched Rs11,165 crore at the end of March, 2012.
Tanti noted that Suzlon has an order of more than Rs41,500 crore that provides “clear visibility into FY 2012-13 and beyond”.
Suzlon, which has presence in 33 nations, expects to rake in revenues of Rs27,000 to 28,000 crore this financial year, representing about 30 per cent annual growth.