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JSW Energy Ltd.

BSE: 533148 Sector: Infrastructure
NSE: JSWENERGY ISIN Code: INE121E01018
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OPEN 348.95
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VOLUME 128731
52-Week high 354.00
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P/E 233.40
Mkt Cap.(Rs cr) 57,534
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OPEN 348.95
CLOSE 350.95
VOLUME 128731
52-Week high 354.00
52-Week low 54.65
P/E 233.40
Mkt Cap.(Rs cr) 57,534
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JSW Energy Ltd. (JSWENERGY) - Director Report

Company director report

To the Members

Your Directors are pleased to present the 27th Annual Report and the auditedFinancial Statement of the Company for the year ended 31st March 2021.

1. Financial performance

The financial performance of the Company for the year ended 31st March2021 is summarized as below:

Particulars

Standalone

Consolidated

FY 2020-21 FY 2019-20 FY 2020-21 FY 2019-20
Total Income 2959.94 4511.89 7159.65 8559.69
Profit before Interest Depreciation Tax and Exceptional Items 875.91 1092.07 3144.03 3243.84
Finance Cost 210.10 321.95 895.65 1051.07
Depreciation and Amortisation Expense 358.07 369.27 1166.94 1168.05
Share of Profit of an Associate / Joint Venture - - 17.15 28.04
Exceptional Items (Gain) - 23.02 - 61.46
Profit before Tax 307.74 423.87 1098.59 1114.22
Tax Expense (121.56) 73.94 (275.91) (33.04)
Profit for the year attributable to: Owners of the Company 186.18 497.81 795.48 1099.92
Profit for the year attributable to: Non-controlling interest in the Company - - 27.20 (18.74)
Other Comprehensive Income (attributable to Owners of the Company) 2208.00 (1075.85) 2227.29 (1088.18)
Other Comprehensive Income (attributable to Non-controlling interest in the Company) - - (12.08) 6.93
Total Comprehensive Income (attributable to Owners of the Company) 2394.18 (578.04) 3022.77 11.74
Total Comprehensive Income (attributable to Non-controlling interest in the Company) - - 15.12 (11.81)

2. Result of operations and the state of affairs: Standalone

Total revenue of the Company for fiscal 2021 stood at '2959.94 crore as against'4511.89 crore for fiscal 2020 showing a decrease of 34.40%.

EBIDTA for fiscal 2021 stood at '875.91 crore as against '1092.07 crore for fiscal2020 showing a decrease of 19.79%.

Profit after tax for fiscal 2021 stood at Rs.186.18 crore as against Rs.497.81 crorefor fiscal 2020 showing a decrease of 62.60%.

Net worth increased to Rs.11632.34 crore at the end of fiscal 2021 from '9400.20crore at the end of fiscal 2020. The increase in Net worth is due to profit for the yearand increase in value of listed equity investments through other comprehensive income.

Net debt gearing stood at 0.12 times as at the end of fiscal 2021 compared to 0.19times as at the end of fiscal 2020.

Consolidated

Revenue for fiscal 2021 stood at '7159.65 crore as against '8559.69 crore for fiscal2020 showing a decrease of 16.36%.

EBIDTA (before exceptional items) for fiscal 2021 stood at '3144.03 crore as against'3243.84 crore for fiscal 2020 showing a decrease of 3.08%.

Profit after tax for fiscal 2021 stood at '795.48 crore as against '1099.92 crore forfiscal 2020 showing a decrease of 27.68%.

Net worth increased to '14507.00 crore in fiscal 2021 from '11645.62 crore at the endof fiscal 2020. The increase in Net worth is due to profit during the year and increase invalue of listed equity investments through other comprehensive income.

Net debt gearing stood at 0.43 times as at end of fiscal 2021 compared to 0.77 times infiscal 2020.

Effects of COVID-19 on the business of the Company 7

The ongoing COVID-19 related issues and the consequent lock-down of all non-essentialservices led to a significant disruption in the economic activity in the country. Thedisruption in the supply chain and logistics and the imposition of travel restrictionsimpacted the supply of key inputs to the power sector and have also led to disruptions inbilling and collections at the discom level.

However being an essential service the supply of power continues uninterrupted albeitat lower PLFs throughout the country.

Despite the COVID-19 situation the Company's plant operations continue to runsmoothly while ensuring adherence to necessary safety measures. Further as the majorityof our capacity is tied-up under long-term PPAs with two-part tariff we will continue toreceive fixed capacity charges based on availability which should largely insulate usagainst any major swings in profitability. There may be a temporary impact on our cashflows due to moderation in the collection levels at D Discoms which we shouldbe able to tide over through our prudent liquidity management framework. A

Please refer to the Management Discussion and Analysis section which forms a part ofthis Annual Report for details of the performance and operations review & impact ofCOVID-19 on the business of the Company and the Company's strategies for growth.

3. Transfer to Reserves

The Company does not propose to transfer any amount (previous year NIL) to theDebenture Redemption Reserve from Surplus. An amount of '4230.20 crore (previous year'4109.26 crore) is proposed to be held as Retained Earnings.

4. Dividend

Your Directors have recommended a dividend of '2 (20%) per share for the Financial year2020-21 ['1 (10%) per share in the previous year] for the approval of the Members at theensuing 27th Annual General Meeting.

The dividend payout is in accordance with the Company's Dividend Distribution Policy.

5. Financial Statement

The audited Standalone and Consolidated Financial Statements of the Company which forma part of this Annual Report have been prepared in accordance with the provisions of theCompanies Act 2013 Regulation 33 of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations

2015 and the Indian Accounting Standards.

6. Integrated Report

The Company is pleased to present the Integrated Report for the year ended 31stMarch 2021 highlighting the Company's commitment to sustainable value creation whilebalancing utilisation of natural resources and social development in its businessdecisions.

7. Subsidiaries Associates and Joint Ventures

The performance and financial position of each of the subsidiaries associates andjoint venture companies for the year ended 31st March 2021 in the prescribedformat AOC-1 is attached as Annexure A to the Consolidated Financial Statement of theCompany and forms a part of this Annual Report.

In accordance with Section 136 of the Companies Act 2013 the audited financialstatements including the consolidated financial statement and related information of theCompany and audited accounts of each of its subsidiaries are available on the website ofthe Company at www.jsw.in/investors/energy.

During the year Yomhlaba Coal Proprietary Limited and Jigmining Operations No.1Proprietary Limited ceased to be subsidiaries of the Company upon their deregistrationwith effect from 27th August 2020. Other than the above no company has ceasedto be a subsidiary associate or joint venture of the Company during the year underreview.

Domestic Subsidiaries

A. JSW Energy (Barmer) Limited (JSWEBL)

JSWEBL is a wholly owned subsidiary of the Company. The Company has invested '1726.05crore as equity in JSWEBL as at 31st March 2021.

The power plant was commissioned in the Financial Year 2012-13 and comprises of eightlignite-based units of 135 MW each aggregating to 1080 MW.

JSWEBL sources lignite from Barmer Lignite Mining Company Limited and sells the entirepower generated to the Rajasthan Distribution Companies ('Discoms') under a 30-year PowerPurchase Agreement.

During the year JSWEBL achieved a Deemed Plant Load Factor of 82.14% (previous year82.34%) and a Plant Load Factor of 74.26% (previous year 61.93%) with a gross generationof 7026 million units (previous year 5875 million units). It's net generation (afterauxiliary consumption) of 6369 million units (previous year 5277 million units) was soldto Discoms generating a total revenue of Rs.2744.45 crore (previous year '2658.93 crore)and a profit after tax of '421.67 crore (previous year '385.75 crore) on a standalonebasis and a profit after tax of '438.82 crore (previous year '413.79 crore) on aconsolidated basis during the Financial Year 2020-21.

The tariff charged by JSWEBL is governed by Section 62 of the Electricity Act 2003 anddetermined as per the regulation laid down by Rajasthan Electricity Regulatory Commission('RERC'). RERC has granted an Interim Tariff based on which JSWEBL has continued to raisebills and recognise revenue in its books.

Barmer Lignite Mining Company Limited (BLMCL)

BLMCL is a 51:49 joint venture between Rajasthan State Mines and Minerals Limited(RSMML) a Government of Rajasthan enterprise and JSW Energy (Barmer) Limited. JSWEBL hasinvested equity of '9.80 crore in BLMCL besides providing unsecured subordinate debt of'567.64 crore as on 31st March 2021.

165

BLMCL was set up to develop lignite mines in two contiguous blocks viz. Kapurdi andJalipa in the District of Barmer in Rajasthan.

BLMCL has incurred project cost of '2299.25 crore as at 31st March 2021which is subject to audit.

BLMCL achieved production of 4.50 million tonnes of lignite from Kapurdi Mines and 1.52million tonnes of lignite from Jalipa Mines in the Financial Year 20202021. BLMCL suppliedits entire lignite production to meet the total fuel requirement of JSWEBL's power plant.

The transfer price of lignite is determined by Rajasthan Electricity RegulatoryCommission (RERC). While the final transfer price is yet to be approved RERC has grantedan Interim transfer price based on which BLMCL has continued to raise bills and recogniserevenue in its books.

B. JSW Power Trading Company Limited (JSWPTC)

JSWPTC is a wholly owned subsidiary of the Company. JSWPTC has been facilitating theGroup companies by supplying power from their plants directly to the utilities / industryunder spot / term agreements. JSWPTC achieved a total trading volume of 602 million units(previous year 718 million units) generating a total revenue of '1.75 crore (previous year'310.97 crore) with profit after tax of '0.46 crore (previous year loss after tax of '0.90crore).

JSWPTC is a member of Power Exchange of India Limited as well as Indian Energy ExchangeLimited.

C. Jaigad PowerTransco Limited (JPTL)

JPTL is a 74:26 joint venture between the Company and Maharashtra State ElectricityTransmission Company Limited a Government of Maharashtra enterprise. The Company hasinvested '101.75 crore as equity in JPTL as at 31st March 2021.

JPTL has been set up under the Public Private Partnership (PPP) model for developmentof the transmission system as an integral part of Intra-State transmission system aimed atevacuation of power generated from the Company's 1200 MW Ratnagiri Power Plant and alsofrom other proposed projects in the region.

JPTL has been granted transmission license to establish maintain and operate thetransmission system for 25 years by Maharashtra Electricity Regulatory Commission (MERC)and has complied with all regulatory requirements under the same during the financial yearunder consideration.

JPTL maintained a high availability of the transmission system at 99.77% (previous year99.58%) during the Financial Year 2020-21 generating a total revenue of Rs.73.13 crore(previous year '81.95 crore) and a net profit after tax of '25.16 crore (previous year'28.14 crore).

D. JSW Hydro Energy Limited (JSWHEL)

JSWHEL is a wholly owned subsidiary of the Company. The Company has invested '1250.05crore as equity in JSWHEL as at 31st March 2021.

JSWHEL owns two hydroelectric plants in the State of Himachal Pradesh at KarchamWangtoo and Baspa.

Karcham Wangtoo Plant

The Karcham Wangtoo plant is a 1000 MW (4X250 MW) run of the river hydro-electricpower plant located on river Sutlej in District Kinnaur of Himachal Pradesh. It has anin-built capacity of 1091 MW with 10% overload and design energy of 4131 million unitsfor 1000 MW capacity.

In April 2021 the Central Electricity Authority has given approval to uprate thecapacity of Karcham Wangtoo plant from 1000 MW to 1091 MW in two stages i.e. 1000 MW to1045 MW (with 10% continuous overload) in the first stage for two monsoon seasons and to1091 MW (with 10% continuous overload) thereafter. This capacity uprating by 9% to 1091MW entails no additional capital expenditure. Further necessary approvals required fromother authorities for the capacity uprating have since been received. JSWHEL has a PowerPurchase Agreement through PTC India Limited for the entire 880 MW saleable capacity ofthe Karcham plant net of 12% free power to Government of Himachal Pradesh (GoHP) withvarious distribution utilities like Haryana Uttar Pradesh Punjab and Rajasthan on longterm basis valid till 13th September 2046.

During the year ended 31st March 2021 the Karcham Wangtoo plant achieved aPlant Load Factor of 49.79% with gross generation of 4361.40 million units and netgeneration of 3812.50 million units after adjusting auxiliary consumption and 12% freepower supply to GoHP.

The plant generated a total revenue of '983.35 crore (previous year '1047.06 crore)during the Financial Year 2020-21.

Baspa Plant

The Baspa plant is a 300 MW (3X100 MW) run of the river hydro-electric power plantlocated on the river Baspa a tributary of river Sutlej in District Kinnaur HimachalPradesh with a design energy of 1213 million units.

JSWHEL has a Power Purchase Agreement for the entire 264 MW saleable capacity of theBaspa plant net of 12% free power to GoHP with Himachal Pradesh State Electricity BoardLimited valid till 7th June 2043.

During the year ended 31st March 2021 the Baspa plant achieved a PlantLoad Factor of 49.89% with gross generation of 1311.14 million units and net generationof 1140.91 million units after adjusting auxiliary consumption and 12% free power supplyto GoHP.

The plant generated a total revenue of '239.26 crore (previous year '216.63 crore)during the Financial Year 2020-21.

JSW Energy (Kutehr) Limited (JSWEKL)

JSWEKL is a wholly owned subsidiary of JSWHEL and is a step down subsidiary of theCompany. JSWHEL has invested '454.15 crore as equity contribution in JSWEKL as at 31stMarch 2021.

JSWEKL has resumed construction activities of the 240 MW Kutehr hydropower projectduring the year under review. All the six major contracts (2 civil packages 1hydro-mechanical 1 electro-mechanical 1 aqueduct works and 1 design & engineering)have been awarded.

Status of works as of 31st March 2021 is as furnished below:

• About 89 % of Barrage excavation planned for this working season (Left Side)completed. Concreting in progress in Upstream Apron Floor and Barrage Control Block.Coffer Wall concreting also in progress.

• Intake and Cut-n-cover excavation completed.

• Excavation of both feeder Tunnels are in progress.

• Excavation of De-Sanding Chamber-1&2 completed to the tune of 23% and 27%respectively. (DC-2) Central Gullet (290 m) completed.

• Five out of six Construction Adits to Head Race Tunnel completed.

• 22% excavation of Total Tunneling (4768 m/21216m) and 18 % of Head Race Tunnelexcavation (2589m / 14538 m) completed.

• Excavation of Main Access Tunnel (MAT) Construction Adit-cum-Cable tunnel(CACT) and Adit to Power House Crown completed.

• Transmission Line Survey approved by Himachal Pradesh Power TransmissionCorporation Limited (HPPTCL). Grant of Connectivity also received from HPPTCL duringDecember 2020. Tendering for erection activities of 400 KV Double Circuit LILOTransmission Line in progress.

Haryana Power Procurement Centre has shortlisted the Kutehr Project to supply 240 MW ofpower to Haryana after achieving COD. A Power Purchase Agreement shall be signed after dueapproval from Haryana Electricity Regulatory Commission.

E. JSW Energy (Raigarh) Limited (JERL)

JERL is a wholly owned subsidiary of the Company. The Company has invested Rs.115.23crore as equity in JERL as at 31st March 2021.

JERL has been incorporated for setting up a coal based 1320 MW power plant in RaigarhDistrict Chhattisgarh. A part of the land required for the project has already beenacquired as also the environment clearance from the Ministry of Environment Forest andClimate Change. JERL is yet to commence project construction activities.

F. JSW Future Energy Limited (JSWFEL) (formerly known as JSW Solar Limited)

JSWFEL is a wholly owned subsidiary of the Company incorporated on 1stJanuary 2018. The Company has invested '197.04 crore as equity in JSWFEL as at 31st March2021.

JSWFEL was incorporated to grow the Company's footprint in the renewable energy spaceas a measured step towards portfolio enhancement and diversification over the next fewyears. JSWFEL has set up 12 MW Solar Power Plants as EPC contractor for JSW Groupcompanies spread across Rajasthan Andhra Pradesh West Bengal and Maharashtra. JSWFEL hasbeen awarded 810 MW Blended Wind Capacity & 450 MW Wind Capacity under SECI Tranche IX& X tender respectively which would be developed through its wholly ownedsubsidiaries. Details of the same are as below.

SECI IX - Blended Wind Power Projects

JSWFEL has secured 810 MW Blended Wind Capacity under Tranche-IX auctions held by SolarEnergy Corporation of India (SECI) at a competitive tariff of Rs.3.00/KWh. The project isexpected to be commissioned within 24 months from signing of Power Purchase Agreement. TheProject would be developed by JSW Renew Energy Limited a wholly owned subsidiary ofJSWFEL.

SECI X - Wind Power Projects

JSWFEL has secured 450 MW Wind Capacity under Tranche- X auctions held by Solar EnergyCorporation of India (SECI) at a competitive tariff of '2.78/KWh. The power will beprocured by Rajasthan Discoms. The project is expected to be commissioned within 18 monthsfrom signing of Power Purchase Agreement. The Project would be developed by JSW RenewEnergy Two Limited a wholly owned subsidiary of JSWFEL.

JSW Renewable Energy (Vijayanagar) Limited (JSWREVL)

JSWREVL is a wholly owned subsidiary of JSWFEL incorporated on 14th January2020 JSWFEL has invested '15.77 crore as equity in JSWREVL as at 31st March2021. Accordingly JSWREVL is a step down subsidiary of the Company.

JSWREVL was incorporated with the intent of setting up renewable energy projects forJSW Group companies under the group captive scheme in the States of Karnataka and TamilNadu.

JSWREVL is setting up 225 MW Solar and 600 MW wind power plants in the State ofKarnataka and 38 MW wind power plant in the State of Tamil Nadu for JSW Group companiesunder the group captive scheme.

JSW Renew Energy Limited (JSWREL)

JSWREL is a wholly owned subsidiary of JSWFEL incorporated on 5th March2020. JSWFEL has invested '74.73 crore as equity in JSWREL as at 31st March2021. Accordingly JSWREL is a step down subsidiary of the Company.

JSWREL was incorporated for the purpose of setting up projects in the renewable energyspace.

JSW Renewable Energy (Dolvi) Limited (JSWREDL)

JSWREDL is a wholly owned subsidiary of JSWFEL incorporated on 3rdSeptember 2020. JSWFEL has invested Rs.0.08 crore as equity in JSWREDL as at 31stMarch 2021. Accordingly JSWREDL is a step down subsidiary of the Company.

JSWREDL was incorporated for the purpose of setting up renewable energy projects forJSW Group companies under the group captive scheme in the State of Maharashtra.

JSWREDL is setting up 95 MW wind power plants for JSW Group companies in the State ofMaharashtra.

JSW Renew Energy Two Limited (JSWRETL)

JSWRETL is a wholly owned subsidiary of JSWFEL incorporated on 26th March2021. Accordingly JSWRETL is a step down subsidiary of the Company.

Overseas Subsidiaries

A. JSW Energy Natural Resources Mauritius Limited (JSWENRML)

JSWENRML is a wholly owned subsidiary of the Company incorporated in April 2010 inMauritius for overseas acquisition of coal assets. It has downstream investment of '43.80crore in 100% equity of JSW Energy Natural Resources South Africa (PTY) Limited and'359.11 crore as loan as on 31st March 2021.

JSW Energy Natural Resources South Africa (PTY) Limited (JSWENRSAL)

JSWENRSAL is a wholly owned subsidiary of JSWENRML. As on 31st March 2021JSWENRSAL has invested '25.28 crore in acquiring 100% equity of Royal Bafokeng Capital(Proprietary) Limited and '7.74 crore in acquiring 100% equity of Mainsail Trading 55Proprietary Limited.

Further JSWENRSAL has invested an amount of '6.39 crore in 10.97% equity of SouthAfrican Coal Mining Holdings Limited (SACMH) and advanced '332.60 crore as loan to SACMHand its subsidiaries as on 31st March 2021.

B. South African Coal Mining Holdings Limited (SACMH)

The Company has an effective shareholding of 69.44% in SACMH as at 31stMarch 2021. SACMH together with its subsidiaries owns a coal mine with more than 32 MTof resources along with supporting infrastructure like coal washery railway siding andequity investment based capacity allocation of 0.5 mtpa at Richards Bay Coal Terminal.While the mine is presently under care and maintenance pending receipt of requisitelicences SACMH uses its logistical and infrastructural assets to generate rental incometo defray the costs incurred.

8. Joint Ventures and Other Investments

Toshiba JSW Power Systems Private Limited (Toshiba JSW)

Toshiba JSW is a joint venture company with the Toshiba Group Japan formed for thepurpose of designing manufacturing marketing and maintenance services of mid tolarge-size (500 MW to 1000 MW) Supercritical Steam Turbines and Generators. As on 31stMarch 2021 Toshiba Group Japan holds 94.11% and JSW Group holds 5.89% in Toshiba JSW.

The Company has invested '100.23 crore in Toshiba JSW. The Company has been providingfor its share of the losses of Toshiba JSW in its consolidated books of account. Thecumulative share of losses of the Company has exceeded the value of its investment inToshiba JSW. Toshiba JSW plans to continue its business by expanding the servicebusinesses and increasing collaboration jobs for various projects of Toshiba Japan.

Power Exchange of India Limited (PXIL)

The Company had invested '1.25 crore in PXIL a company promoted by National StockExchange of India Limited and National Commodities & Derivatives Exchange Limited.PXIL provides the platform for trading in electricity and Renewable Energy Certificates(REC). JSWPTC is also a member of PXIL.

GMR Kamlanaga Energy Limited (GKEL) - Share Purchase Agreement

Due to elapsing of long stop date and continued uncertainty on account of COVID-19pandemic the Company and GMR Energy Limited have mutually decided to terminate the SharePurchase Agreement signed for acquiring 100% shares of GMR Kamlanaga Energy Limited (GKEL)which owns and operates a 1050 MW (3 X 350 MW) thermal power plant in the State ofOdisha.

Ind Barath Energy (Utkal) Limited - Resolution Plan

The Company has issued termination notice on account of occurrence of Material AdverseChange and has withdrawn its Resolution Plan for Ind Barath Energy (Utkal) Limited's 2 X350 MW thermal power plant in the State of Odisha. The matter is subjudice at the NationalCompany Law Tribunal Hyderabad bench.

Jaiprakash Power Ventures Limited (JPVL) - Debt Resolution

During the Financial Year 2019-20 the Company entered into Debt Resolution Agreementwith JPVL to restructure the principal outstanding amount of '751.77 crore owed by JPVL.In terms of the Agreement the Company holds 351769546 shares of JPVL as on 31stMarch 2021 and the outstanding debt of '120 crorewhich will be repaid by JPVL out of itsavailable cash flows after paying 10% of the re-structured sustainable debt to its securedlenders.

Jindal Steel & Power Limited - Share Purchase Agreement

The Company has received the entire outstanding amount against payment of aninterest-bearing advance of '500 crore contemplated under the definitive agreement signedwith Jindal Steel & Power Limited to acquire 1000 MW (4 x 250 MW) thermal power plantlocated at village Tamnar District Raigarh in the state of Chhattisgarh.

9. Share Capital

The paid up equity share capital of the Company as at 31st March 2021 is'1642.79 crore.

During the year under review the Company has not issued any:

a) shares with differential rights

b) sweat equity shares.

426504 equity shares were issued under the JSW Employees Stock Ownership Plan - 2016to the 'JSW Energy Employees ESOP TrustRs.in the Financial Year 2020-21 on 26thJune 2020 at a grant price of '51.80 per share.

10. Deposits

The Company has not accepted or renewed any amount falling within the purview ofprovisions of Section 73 of the Companies Act 2013 (the Act) read with the Companies(Acceptance of Deposit) Rules 2014 during the year under review. Hence the requirementof providing details relating to deposits as also of deposits which are not in compliancewith Chapter V of the Act is not applicable.

11. Non-Convertible Debentures

During the year ended 31st March 2021 the Company has redeemed / repaidNon-Convertible Debentures amounting to '700 crore. The redemption / repayment is inaccordance with the terms of the respective issues. Further during the year ended 31stMarch 2021 the Company has issued 1750 Secured Redeemable Rated Listed TaxableNonConvertible Debentures ('NCDs') of '0.10 crore each by way of Private Placementaggregating to '175 crore carrying a coupon rate of 12M T-Bill rate + 3.25% p.a. withredemption on 16th February 2024. The NCDs are listed on BSE Limited.

12. Particulars of Loans Guarantees Investments and Securities

Particulars of loans given investments made guarantees given and securities providedalong with the purpose are provided in the Notes to the Standalone Financial Statement.

13. Internal Financial Controls over Financial Statement

The details in respect of internal controls and internal financial controls and theiradequacy are included in the Management Discussion and Analysis which forms a part ofthis Report.

14. Particulars of Contracts or Arrangements with Related Parties

During the year under review the Company revised its Policy on Materiality of RelatedParty Transactions as also Dealing with Related Party Transactions in accordance with theamendments to applicable provisions of law / Listing Regulations.

The Company's Policy on Materiality of Related Party Transactions as also Dealing withRelated Party Transactions as approved by the Board is available on the website of theCompany at the link: www.jsw. in/investors/energy.

During the year under review the Company sold the 18 MW coal based thermal power plantat Salboni to JSW Cement Limited (JSWCL) a related party by way of a slump sale on agoing concern basis for a lumpsum cash consideration of '95.67 crore on an arm's lengthbasis determined as per fair market valuation by an Independent Valuer and approved by theBoard. The said power plant was constructed for supplying power to JSWCL under captiveroute. However considering the current demand of power of JSWCL running the said plantthrough captive route would have been uneconomical and lead to a very high fixed chargeper unit. Since the said plant was developed for JSWCL and to minimise the impact of highcost considering the nominal capacity it was decided to sell the same to JSWCL as aprudent business decision. All other contracts / arrangements / transactions entered intoduring the financial year 2020-21 by the Company with Related Parties were in the ordinarycourse of business and on an arm's length basis. Related Party Transactions which are inthe ordinary course of business and on an arm's length basis of repetitive nature andproposed to be entered during the financial year are placed before the Audit Committee forprior omnibus approval. A statement giving details of all Related Party Transactions asapproved is placed before the Audit Committee for review on a quarterly basis.

The Company has developed a framework for the purpose of identification and monitoringof such Related Party Transactions. The details of transactions / contracts / arrangementsentered into by the Company with Related Parties during the financial year under revieware set out in the Notes to the Financial Statement. The disclosure in Form AOC-2 isattached as Annexure A to this Report.

15. Disclosure under the Employee Stock Option Plan and Scheme

The Board of Directors of the Company at its meeting held on 20th January2016 formulated the JSWEL Employees Stock Ownership Plan - 2016 (Plan 2016) to beimplemented through the JSW Energy Employees ESOP Trust (Trust).

A total of 6000000 (Sixty Lakh) options were available for grant to the eligibleemployees of the Company and its Indian Subsidiaries including Whole-time Directors. TheCompensation Committee at its meeting held on 3rd May 2016 granted 2447355options being the

first grant under Plan 2016 to the eligible employees of the Company and its IndianSubsidiaries including Whole-time Directors. The grant of options to the then Whole-timeDirectors of the Company was approved by the Nomination & Remuneration Committee andthe Board. 2494660 options being the second grant under Plan 2016 were granted by theCompensation and Nomination & Remuneration Committee (CNRC) at its meeting held on 20thMay 2017 under Plan 2016 to the eligible employees of the Company and its IndianSubsidiaries including Whole-time Directors. Mr. Jyoti Kumar Agarwal the then Director -Finance was granted 87252 options. The third and final grant of 2323883 options wasapproved by the CNRC at its meeting held on 1st November 2018 under Plan 2016to the eligible employees of the Company and its Indian Subsidiaries including Whole-timeDirectors. Mr. Prashant Jain Jt. Managing Director and CEO Mr. Jyoti Kumar Agarwal thethen Director - Finance and Mr. Sharad Mahendra the then Whole-time Director and COO weregranted 373897 options 76864 options and 241224 options respectively.

As per Plan 2016 50% of the granted options will vest at the end of the third year andthe balance 50% at the end of the fourth year. Accordingly 265390 options being thebalance 50% of the options granted on 3rd May 2016 and subsisting vested on 3rdMay 2020 and 507344 options being 50% of the options granted on 20th May2017 and subsisting vested on 20th May 2020. However after appropriation ofshares which lapsed due to non-exercise during the prescribed time limit against thetotal requirement of 772734 equity shares the Company was required to issue 426504equity shares to fulfill the above requirement.

The applicable disclosures as stipulated under the Securities and Exchange Board ofIndia (Share Based Employee Benefits) Regulations 2014 ('SEBI (SBEB) Regulations') forthe year ended 31st March 2021 with regard to ESOP 2016 are provided on thewebsite of the Company at the link: www.jsw.in/investors/energy and forms a part of thisReport.

Voting rights on the shares if any as may be issued to employees under the Plan 2016are to be exercised by them directly or through their appointed proxy hence thedisclosure stipulated under Section 67(3) of the Companies Act 2013 is not applicable.

There is no material change in the Plan 2016 and the same is in compliance with theSEBI (SBEB) Regulations. The certificate from the Statutory Auditors of the Company thatthe Scheme has been implemented in accordance with the SEBI (SBEB) Regulations alongwiththe Resolution passed by the Members would be available for electronic inspection by theMembers at the forthcoming 27th Annual General Meeting.

16. Credit Rating During fiscal 2021:

• India Ratings and Research assigned a long-term rating of 'IND AA-/StableRs.onthe Long-term Bank facilities & Non-Convertible Debentures of the

Company and also assigned a short-term rating of 'IND A1+Rs.on the Commercial Papersand Short Term Bank facilities of the Company

• Brickwork Ratings assigned the long-term rating of 'BWR AA- (Positive)Rs.on theproposed NonConvertible Debenture issue of the Company. Short-term rating of 'BWRA1+Rs.was reaffirmed on the Commercial Papers of the Company.

• CARE Ratings revised the long-term rating to 'CARE A+/StableRs.on the Long-termBank Facilities and Non-Convertible Debentures of the Company. Short-term rating of 'CAREA1+Rs.was reaffirmed for Short-term Bank Facilities and Commercial Papers of the Company.

17. Awards

During the year the Company received the following awards:

Vijayanagar Plant

CII National Award for Excellence in Energy Management-2020 by Confederation of IndianIndustry (CII) - Awarded in August 2020.

Ratnagiri Plant

CII National Award for Excellence in Energy Management

- 2020 by Confederation of Indian Industry (CII) - Awarded in August 2020 - Awarded asEnergy Efficient Unit (Trophy & Certificate) - For Excellence in Energy Management.

Green Galaxy Award - 2020 by Green Maple Foundation under the top most Diamond Categoryfor excellence in Safety Management as well as Energy Efficiency.

The Best Operating Thermal Power Plant (Commissioned After 2008) by Independent PowerProducers Association of India (IPPAI) during IPPAI Power Awards

- 2020. It was awarded as the best operating thermal power plant reflecting our effortstowards continual improvement for Better Everyday.

Excellence in Energy Conservation and Management by Maharashtra Energy DevelopmentAgency (MEDA). It is "State Recognition" to facilities/ units who have takenextra efforts for efficient utilization management and conservation of energy during theyear 2019-20 in the State of Maharashtra.

18. Disclosures related to Policies

A. Nomination Policy

The Company has adopted a Nomination Policy to identify persons who are qualified tobecome Directors on the Board of the Company and who may be appointed in senior managementpositions in accordance with the criteria laid down and recommend their appointment andremoval and also for the appointment of Key Managerial Personnel (KMP) of the Company whohave the capacity and ability to lead the Company towards achieving sustainabledevelopment.

In terms thereof the size and composition of the Board should have:

• an optimum mix of qualifications skills gender and experience as identified bythe Board from time to time;

• an optimum mix of Executive Non-Executive and Independent Directors;

• minimum six number of Directors or such minimum number as may be required byListing Regulations and / or by the Act or as per Articles;

• maximum number of Directors as may be permitted by the Listing Regulations and /or by the Act or as per Articles; and

• at least one Independent Woman Director.

While recommending a candidate for appointment the Compensation and Nomination &Remuneration Committee shall assess the appointee against a range of criteria includingqualifications age experience positive attributes independence relationships genderdiversity background professional skills and personal qualities required to operatesuccessfully in the position and has discretion to decide adequacy of such criteria forthe concerned position. All candidates shall be assessed on the basis of merit skills andcompetencies without any discrimination on the basis of religion caste creed or sex.

The Nomination Policy was reviewed and revised by the Board during the year underreview to ensure its continued relevance and to align it with changes in applicable lawand regulations.

B. Remuneration Policy

The Company regards its employees as the most valuable and strategic resource and seeksto ensure a high performance work culture through a fair compensation structure which islinked to Company and individual performance. The compensation is therefore based on thenature of job as well as skill and knowledge required to perform the given job in orderto achieve the Company's overall objectives.

The Company has devised a policy relating to the remuneration of Directors KMPs andsenior management employees with the following broad objectives.

i. Remuneration is reasonable and sufficient to attract retain and motivate Directors;

ii. Remuneration is reasonable and sufficient to motivate senior management KMPs andother employees and to stimulate excellence in their performance;

iii. Remuneration is linked to performance. and

Remuneration Policy balances fixed and variable pay and short and long-term performanceobjectives. The Remuneration Policy of the Company is available on the website of theCompany at the link: www.jsw.in/ investors/energy/jsw-energycorporategovernance- policies.

The Remuneration Policy was reviewed and revised by the Board during the year underreview to ensure its continued relevance and to align it with changes in applicable lawand regulations.

C. Corporate Social Responsibility Policy

During the year under review the Company revised its Corporate Social Responsibility(CSR) Policy in accordance with the amendments to applicable provisions of law. TheCompany undertakes / will undertake CSR activities in accordance with the said Policy.

The Company has adopted a strategy for undertaking CSR activities either directly orthrough JSW Foundation as deemed appropriate and is committed to allocating at least 2%of average net profit of the last 3 years. The Company gives preference to the local areasin which it operates for the CSR spend.

In line with the Company's CSR Policy and strategy the Company plans interventionsinter alia in the field of health and nutrition education water environment &sanitation agri-livelihoods livelihoods and other initiatives.

The CSR Policy of the Company is available on the website of the Company at the link:www. jsw.in/investors/energy/jsw-energy-corporate- governancepolicies.

During the year under review the Company has spent the entire mandated amount of '6.86crore on CSR activities.

Please refer to the Management Discussion and Analysis section of this Report forfurther details. The Annual Report on CSR activities is annexed as Annexure B and forms apart of this Report.

D. Whistle Blower Policy and Vigil Mechanism

The Board has pursuant to the provisions of Section 177(9) of the Companies Act 2013read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules 2014 and theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 framed a 'Whistle Blower Policy and Vigil Mechanism'.

The Company believes in the conduct of the affairs of its constituents in a fair andtransparent manner by adopting highest standards of professionalism honesty integrityand ethical behaviour.

The Policy has been framed with a view to provide a mechanism inter alia enablingstakeholders including Directors individual employees of the Company and theirrepresentative bodies to freely communicate their concerns about illegal or unethicalpractices and to report genuine concerns or grievances as also to report to the managementconcerns about unethical behaviour actual or suspected fraud or violation of theCompany's Code of Conduct.

171

The Whistle Blower Policy and Vigil Mechanism is available on the website of theCompany at the link: www.jsw.in/investors/energy/jsw- energycorporategovernance-policies.

E. Risk Management Policy

The Company has adopted a Risk Management Policy aimed to ensure resilience forsustainable growth and sound corporate governance by having a process of riskidentification and management in compliance with the provisions of the Companies Act 2013and the Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015.

The Company recognises that all emerging and identified risks need to be managed andmitigated to -

• Protect its shareholder's and other stakeholder's interests;

• Achieve its business objectives; and

• Enable sustainable growth.

The Company follows the Committee of Sponsoring Organisations (COSO) framework ofEnterprise Risk Management (ERM) to identify classify communicate respond to risks andopportunities based on probability frequency impact exposure and resultantvulnerability.

Pursuant to the requirement of Regulation 21 of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 the Company hasconstituted a sub-committee of Directors called the Risk Management Committee to overseethe Enterprise Risk Management framework. The Risk Management Committee periodicallyreviews the framework including cyber security high risks items and opportunities whichare emerging or where the impact is substantially changing.

There are no risks which in the opinion of the Board threaten the existence of theCompany. Key risks and response strategies are set out in the Management Discussion andAnalysis Section which forms a part of this Annual Report.

F. Policy for Annual Performance Evaluation of Directors Committees and Board

Pursuant to the provisions of the Companies Act 2013 and the Securities and ExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations 2015 theCompany has framed a Policy for Performance Evaluation of Independent Directors BoardCommittees and other individual Directors which includes criteria for performanceevaluation of the Non - Executive Directors and Executive Directors. On the basis of thecriteria specified in this Policy evaluation of performance of the Individual Directorsduring the financial year 2020-21 was carried out by the Compensation and Nomination aRemuneration Committee while the Board carried out performance evaluation of IndependentDirectors its own performance and that of the working of its Committees.

1 "70

During the year under review the Board Evaluation Policy was reviewed and revised bythe Board to ensure its continued relevance and to avoid duplication of the performanceevaluation process.

G. Material Subsidiary Policy

Pursuant to the provisions of Regulation 16(1) (c) of the Securities and Exchange Boardof India (Listing Obligations and Disclosure Requirements) Regulations 2015 the Companyhas adopted a Policy for determining Material Subsidiaries laying down the criteria foridentifying material subsidiaries of the Company.

Accordingly JSW Hydro Energy Limited and JSW Energy (Barmer) Limited are the materialsubsidiaries of the Company during the Financial Year 2020-21.

During the year under review the Material Subsidiary Policy was reviewed and revisedby the Board to ensure its continued relevance. The Policy may be accessed on the websiteof the Company at the link: www.jsw.in/investors/energy/jsw-energy-corporate-governance-policies.

H. Dividend Distribution Policy

Pursuant to Regulation 43A of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 the Board has approved andadopted a Dividend Distribution Policy. The same is available on the website of theCompany at the link: www.jsw.in/investors/energy/ jsw-energy-corporategovernance-policies.

a. the circumstances under which shareholders may or may not expect dividend;

b. the financial parameters that shall be considered while declaring dividend;

c. internal and external factors that shall be considered for declaration of dividend;

d. policy as to how the retained earnings shall be utilized.

19. Corporate Governance Report

The Company has complied with the requirements of Corporate Governance as stipulatedunder the Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 and accordingly the Corporate Governance Report and therequisite Certificate from Deloitte Haskins a Sells LLP the Statutory Auditors of theCompany regarding compliance with the conditions of Corporate Governance forms a part ofthis Report.

20. Business Responsibility Report

As mandated by Regulation 34(2)(f) of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 the BusinessResponsibility Report of the Company for the year ended 31st March 2021 formsa part of this Report.

21. Directors and Key Managerial Personnel

The Company has received declarations from all the Independent Directors under Section149(7) of the Companies Act 2013 and Regulation 25(8) of the Listing Regulationsconfirming that they meet the criteria of independence as prescribed thereunder.

The Independent Directors have complied with the Code for Independent Directorsprescribed under Schedule IV of the Companies Act 2013 and the SEBI Regulations. TheBoard is of the opinion that the Independent Directors of the Company possess requisitequalifications experience and expertise and they hold highest standards of integrity.

During the year under review none of the managerial personnel i.e. Managing Directorand Wholetime Directors of the Company were in receipt of remuneration / commission fromthe subsidiary companies.

The Company familiarises the Independent Directors of the Company with their rolesrights responsibilities in the Company nature of the industry in which the Companyoperates business model and related risks of the Company etc. Monthly updates onperformance/ developments are sent to the Directors. The brief details of thefamiliarisation programme are put up on the website of the Company at the link:www.jsw.in/ investors/energy.

During the year under review Mr. Jyoti Kumar Agarwal Director - Finance and KeyManagerial Personnel of the Company resigned with effect from 16th September2020. Mr. Pritesh Vinay was appointed as the Chief Financial Officer and Key ManagerialPersonnel of the Company with effect from 16th September 2020. There were noother changes in Key Managerial Personnel during the Financial Year 2020-21.

Resignation / Cessation

During the year under review Mr. Nirmal Kumar Jain resigned as a Director of theCompany with effect from close of business hours of 20th May 2020 due to otherbusiness commitments. Mr. Sharad Mahendra Wholetime Director and COO of the Companyresigned as a Director with effect from 10th June 2020 for taking up otherresponsibilities within the JSW Group. Mr. Rakesh Nath Independent Director ceased to bea Director of the Company with effect from 23rd July 2020 consequent to theexpiry of his term as an Independent Director. Mr. Jyoti Kumar Agarwal Director - Financeresigned with effect from 16th September 2020 to take up otherresponsibilities outside the JSW Group.

Your Directors place on record their appreciation for the valuable contribution andsupport provided by Mr. Jain Mr. Mahendra Mr. Nath and Mr. Agarwal.

No Independent Director has resigned before the expiry of his / her tenure.

Re-appointment / Appointment

e In accordance with the provisions of the Companies Act

e 2013 and the Articles of Association of the Company

e Mr. Sajjan Jindal (DIN: 00017762) retires by rotation

e at the forthcoming 27th Annual General Meeting and

being eligible offers himself for re-appointment.

e Based on the recommendation of the Compensation

r and Nomination & Remuneration Committee the Board

e of Directors taking into account his integrity expertise

t and experience appointed Mr. Munesh Khanna

s (DIN: 00202521) as an Additional and Independent

d Director of the Company for a term of 5 consecutive

years from 26th March 2021 to 25th March 2026 ^ subject to theapproval of the Members of the Company.

- Necessary resolution for approval of Mr. Khanna's

f appointment has been included in the Notice of

y the forthcoming 27th Annual General Meeting of the

Company. The Directors recommend the same for approval by the Members.

s Profiles of Mr. Sajjan Jindal and Mr. Munesh Khanna

e as required under Regulations 26(4) and 36(3) of

s the Securities and Exchange Board of India (Listing

/ Obligations and Disclosure Requirements) Regulations

f 2015 and Clause 1.2.5 of the Secretarial Standard - 2 is

n given in the Notice of the 27th Annual General Meeting.

/

22. DirectorsRs.Responsibility Statement

 l Pursuant to the requirement under Section 134(5) of

e the Companies Act 2013 it is hereby confirmed:

I. (a) that in preparation of the annual accounts the

il applicable accounting standards have been

followed along with proper explanation relating r to material departures;

 !l (b) that the Directors have selected such accounting

policies and applied them consistently and made judgments and estimates that arereasonable and n prudent so as to give a true and fair view of the

state of affairs of the Company at the end of the

 r financial year and of the profit of the Company for

the year under review;

a (c) that the Directors have taken proper and sufficient

p care for the maintenance of adequate accounting

records in accordance with the provisions of the r Companies Act 2013 for safeguardingthe assets

i of the Company and for preventing and detecting

t fraud and other irregularities;

 e

e (d) that the Directors have prepared the annual

accounts for the year under review on a 'going concernRs.basis;

 e

~ (e) that the Directors have laid down internal financial

controls to be followed by the Company and that such internal financial controls areadequate and y were operating effectively and

(f) that the Directors have devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.

23. Committees of the Board

The Company has constituted various Committees of the Board as required under theCompanies Act 2013 and the Listing Regulations. For details like composition number ofmeetings held attendance of members etc. of such Committees please refer to theCorporate Governance Report which forms a part of this Annual Report.

24. Meetings of the Board

During the year under review the Board of Directors met 6 times. For details of themeetings of the Board please refer to the Corporate Governance Report which forms a partof this Annual Report.

25. Auditors and AuditorsRs.Reports

a. Statutory Auditor

In line with Section 139 of the Companies Act 2013 and the Rules made thereunderDeloitte Haskins & Sells LLP Chartered Accountants Mumbai were appointed as theStatutory Auditor of the Company from the conclusion of the 23rd Annual GeneralMeeting till the conclusion of the 28th Annual General Meeting.

The Statutory Auditor has issued Audit Reports with unmodified opinion on theStandalone and Consolidated Financial Statements of the Company for the year ended 31stMarch 2021. The Notes on the Financials Statement referred to in the Audit Report areself-explanatory and therefore do not call for any further explanation or comments fromthe Board under Section 134(3) (f) of the Companies Act 2013.

b. Cost Auditor

The Company has made and maintained cost accounts and records as specified by theCentral Government under Section 148(1) of the Companies Act 2013. For the Financial Year202021 Kishore Bhatia & Associates Cost Accountants have conducted the audit of thecost records of the Company.

Pursuant to the provisions of Section 148 of the Companies Act 2013 read withNotifications / Circulars issued by the Ministry of Corporate Affairs from time to timethe Board appointed Kishore Bhatia & Associates Cost Accountants to conduct theaudit of the cost records of the Company for the Financial Year 2021-22.

The remuneration payable to the Cost Auditor is subject to ratification by the Membersat the Annual General Meeting. Accordingly the necessary Resolution for ratification ofthe remuneration payable to Kishore Bhatia & Associates Cost Accountants to conductthe audit of cost records of the Company for the Financial Year 2021-22 has been includedin the Notice of the forthcoming 27th Annual General Meeting of the Company.The Directors recommend the same for approval by the Members.

c. Secretarial Auditor

The Board appointed Ashish Bhatt & Associates Company Secretaries to carry outsecretarial audit for the Financial year 2020-21.

The Secretarial Audit Report issued by Ashish Bhatt & Associates CompanySecretaries for the Financial Year 2020-21 confirms that the Company has complied withthe provisions of the applicable laws and does not contain any observation orqualification requiring explanation or comments from the Board under Section 134(3) of theCompanies Act 2013. The report in Form MR-3 is annexed as Annexure C and forms a part ofthis Report.

As per Regulation 24(A) of the Listing Regulations the material subsidiaries of theCompany are required to undertake secretarial audit. JSW Energy (Barmer) Limited (JSWEBL)and JSW Hydro Energy Limited (JSWHEL) were material subsidiaries of the Company for theFinancial Year 2020-21 pursuant to the applicable Listing Regulations.

Accordingly Ashish Bhatt & Associates Company Secretaries carried out thesecretarial audit for JSWEBL and JSWHEL for the financial year 202021. These SecretarialAudit Reports do not contain any observation or qualification. The respective reports inForm MR-3 are annexed as Annexure C1 and C2 respectively and form a part of this Report.

26. Compliance with Secretarial Standards

During the year under review the Company has complied with Secretarial Standards 1 and2 issued by the Institute of Company Secretaries of India.

27. Material Changes and Commitments

In terms of Section 134(3)(l) of the Companies Act 2013 except as disclosed elsewherein this Report no material changes and commitments which could affect the Company'sfinancial position have occurred between the end of the financial year of the Company anddate of this Report.

28. Significant and Material Orders passed by Regulators or Courts or Tribunal

No orders have been passed by any Regulator or Court or Tribunal which can havesignificant impact on the going concern status and the Company's operations in future.

29. Annual Return

Pursuant to the provisions of Sections 134(3)(a) and 92(3) of the Companies Act 2013the Annual Return for the financial year ended 31st March 2021 is availableon the website of the Company at the link: www.jsw. in/investors/energy.

30. Environmental Norms

As an ecologically responsible corporate and to maintain the best environmentaloperating standards the Company has deployed state of the art technology to prevent /minimize pollution levels at all its power plants.

The Ministry of Environment Forest and Climate Change had in December 2015 revisedenvironment emission norms prescribing more stringent emission limits for operating aswell as under development power plants in the country with respect to particulate mattersulphur dioxide (SO2) nitrogen dioxide (NO2) water consumption mandatory environmentaldischarge etc. Honoring its responsibility towards protecting the environment theCompany has already complied with these norms.

31. Reporting of frauds:

There was no instance of fraud during the year under review which required theStatutory Auditors to report to the Audit Committee and/or Board under Section 143(12) ofthe Act and Rules framed thereunder.

32. Conservation of Energy Technology Absorption and Foreign Exchange Earnings andOutgo:

The particulars as required under the provisions of Section 134(3)(m) of the CompaniesAct 2013 read with Rule 8 of the Companies (Accounts) Rules 2014 in respect ofconservation of energy technology absorption foreign exchange earnings and outgo are asunder:

(A) Conservation of Energy -

(i) The steps taken for energy conservation are as

below:

Vijayanagar Plant

1. SBU-2 Unit-1 - Reduction of CEP power consumption from 225 kWh to 150 kWh byimplementing Deaerator Level control by varying pump speed resulted in savings of

0.533 MUs.

2. SBU-2 Unit-1 - Reduction of PA Fan power consumption from 1550 kWh to 1524 kWh byoptimizing PA header pressure resulted in savings of 0.172 MUs.

3. SBU-2 Unit-1 - Reduction of FD Fan power consumption from 776 kWh to 719 kWh byimplementing secondary air control based on coal flow and O2 level at APH inlet resultedin savings of 0.367 MUs.

4. SBU-2 Unit-1 - In Instrument Air Compressor (IAC) reduction of power consumptionfrom 658 kWh to 592 kWh by optimizing header pressure and attending air leaks resulted insavings of 0.291 MUs.

5. SBU-2 Unit-1 - Reduction of Ash Handing Air Compressor power consumption from 109kWh to 48 kWh by adopting ash conveying

from time mode to probe mode resulted in savings of 0.135 MUs.

6. SBU-2 Unit-1 - Reduction of power consumption of clear water pump from 26 kWh to 7kWh by implementing sump level auto control by variable frequency drive (VFD) resulted insavings of 0.101 MUs.

7. SBU-2 Unit-1- condenser cleaning resulted in vacuum improvement and subsequentTurbine heartrate improvement by 43kCal/kWh accrued power consumption reduction in BFP aCEP by 131KWh and 16kWh respectively.

8. SBU-2 unit-1 Four numbers of Cooling Tower fills are replaced by anti cloggingtrickle grid fills resulted improvement in condenser vacuum and subsequent savings in heatrate by 8kCal/kWh.

9. SBU-1 Unit-1 PA fan speed was reduced from 1270 rpm to 1180rpm which led toreduction in the hydro-coupling slip losses by increasing the scoop position from 48% to66% power consumption has reduced by 59kwh resulted in savings of 0.356 MUs.

10. SBU-1 U2 cold start up time has been reduced by 0.86 hour by adopting to betteroperating practices like deaerator pegging incorporating early gas firing.

11. Optimizing RO plant Chemical cost from Rs 22/Cu.m to Rs 17/Cu.m by use ofproprietary Chemicals resulted annual monitory savings of Rs 88 Lacs.

Ratnagiri Plant

1. Internal inspection of HPH-6 a 7 in Unit-1 and rectification of passing partingplane which resulted in improvement in heat rate by 2 kCal/ kWh thereby saving 738 MT ofcoal in a year.

2. Internal inspection of HPH-6 a 8 in Unit-3 and rectification of passing partingplane which resulted in improvement in heat rate by 4 kCal/ kWh thereby saving 313 MT ofcoal for period of three months.

3. Improvement in performance of Vacuum Pump-1B by internal cleaning a servicing whichresulted in improvement in heat rate by 14.65 kCal/kWh thereby saving 3761 MT of coal.

4. Reduction of 82 kWh power consumption by changing loading/unloading set point ofmain plant compressor and optimizing service air header pressure set point. This hasresulted in saving of 0.18 MUs.

5. Reduction of 150 kWh power consumption by optimizing ash handling conveying systemcycle gap conveying time dome valve opening etc. in Ash Handling Plant compressorsystem. This has resulted in saving of 0.66 MUs.

175

6. Reduction of 20 kWh power consumption by modifying logic in CEP VFD operation bychanging its control from discharge pressure mode to de-aerator level mode. This hasresulted in saving of 0.11 MUs.

(ii) The steps taken by the Company for utilizing alternate sources of energy:

Vijayanagar Plant:

In both SBU-1 (2 X 130 MW) and SBU-2 (2 X 300 MW) units waste gases from blast furnaceare being utilized as fuel which has led to 2.37 Lakh MT displacement of coal.

Ratnagiri Plant:

1. In central stores light pipes are installed that utilizes solar light forillumination in day time saving the use of electricity by traditional electrical lights

2. Company has built a number of check dams to store the rain water. In FY 2020-21 theCompany utilized 2.30 Lakh M3 of stored rain water from these dams which is the highesttill date (previous highest was 1.80 Lakh M3 in FY 2019-20)

(iii) The capital investment on energy conservation equipment:

Vijayanagar Plant:

SBU-2 Unit-1 Cooling Tower fills 4 Nos replacement with Trickle Grid Anti cloggingHybrid fills for improving CT effectiveness and avoid clogging- 60 Lakhs.

Ratnagiri Plant: Nil

(B) Technology absorption

(i) The efforts made towards technology absorption are provided below -

Vijayanagar Plant:

1. Plant Electrical Earthing of equipment improved by using chemical treated earth pitswhich are having low system resistivity and thereby improving equipment safety.

2. The power cables in coal handling plant and mill areas are done with fire retardantchemical coating.

3. Installation of hydrogen leak detection & alarm system for bulk cylinder storagearea in warehouse.

4. Replacement of 220kV lightening arrestors with shatter proof (Polymer insulatortype) Lightening Arrestors(LA).

5. Turbine lube oil centrifuges- Installation of fast response (approx.. 1sec) tuningfork type level switches instead of float type level switch.

6. FD Fan Lube oil station control logics shifted and configured in DCS there byeliminateing the clumsy local hardwiring.

7. SBU2 Unit-1 Control room video screens are upgraded from lamp based to highresolution laser lit engine based system.

8. In consultation with M/s UNIPER the flexible operation of 300 MW units without oilsupport was tried and operating lower limits are stretched from 120MW to 70MW.

9. On digitization through Pi Server the metal temperature excursions of 300MW boilersare captured in DCS and is being triggered as alarm for alerting of the operator.

10. In 300MW units the FD fan motor bearing temperature had substantially dropped from700C to 390C by adopting the use of Mobile Grease XHP22 from the conventional Servo Gem-3grease.

11. The cooling tower fan drive shaft was changed from metallic shaft to Carbon fibershaft

12. Self-powered day light sensors are used to control the lighting of plant there bythe previously used battery backup lighting control was avoided.

Ratnagiri Plant

1. Replacement of sea water based auxiliary cooling water(ACW) corro-coated MSpipelines by SS316L (Stainless Steel) pipelines in Unit-3.

2. Installation of solar light pipes in central stores.

3. Installation of auto coal sampler.

(ii) The benefits derived like product improvement

cost reduction product development or import

substitution:

Vijayanagar Plant

1. For enhancing the safety of Electrical Equipments by reducing the resistivity of thesoil

2. Will reduce the fire hazard in the fire prone areas like Coal handing and Millareas.

3. For easy detection of any abnormalities caused by H2 leak.

4. Increasing the reliability of the system & to avoid damage to the adjacent /protected equipment in case of LA failures.

5. Will eliminate any time delay in sensing during any spillage of Oil in theCentrifuge thereby avoid loss of oil

6. To enhance reliability & availability of the Blade pitch system of FD fansystem.

7. For a better visibility of the screens by operator for timely swift actions.

8. Flexible operation will help in introduction of renewables and variation of loads totechnical minimum thereby increasing the accommodation of renewable generation.

9. Failure of Boiler tubes will be avoided through continuous monitoring of temperatureexcursions.

10. Bearing Life is increased due to the temperature reduction.

11. Improvement in vibration levels (got reduced from 7.5mm/s to 4.5mm/sec) andreduction of power consumption.

12. Timely operation of lighting system will reduce the human intervention and optimizethe power consumption.

Ratnagiri Plant

1. Improvement of reliability ACW systems which result in reduction in O&M cost.

2. Use of natural resources thereby reducing carbon footprint.

3. Improved coal sampling process thereby evaluating more accurate coal quality.

(iii) In case of imported technology (imported during the last three years reckonedfrom the beginning of the Financial Year): Nil.

(iv) The expenditure incurred on Research and Development: The Company did not carryout any core R & D work during the financial year 2020-21 however implemented 367KAIZENs successfully.

(v) Future Plans:

Vijayanagar Plant

1. Commissioning of 225MW Solar green power for captive use and displacing equivalentcoal

2. Replacement of APH baskets in SBU-2 Unit-1 for Boiler efficiency improvement

3. Boiler Retrofit / additional boiler installation to accommodate additional gasfiring

4. Planning to install Alkaliser in Generator Stator Water System for better waterparameters and availability

5. Installation of OPGW (Optical fiber composite overhead Ground Wire) based linedifferential protection system is planned for short distance lines to mitigate theproblems of spurious tripping.

6. Upgradation of Administration building air conditioners to reduce the utilizationof greenhouse gases & its environmental effect.

Ratnagiri Plant

1. Replacement of air preheater (APH) baskets in Unit-3 to improve heat rate &auxiliary power consumption

2. Replacement of air preheater (APH) baskets in Unit-4 to improve heat rate &auxiliary power consumption

3. De-staging of boiler feed pumps (BFPs) to reduce auxiliary power consumption

4. Elimination of HFO by LDO in all units to reduce DM water consumption & improveheat rate

5. Implementations of Solar Panels at Raw water supply Pump house.

6. Installation of online alkaliser in stator water system.

7. Installation of Oil filtration machines to reduce oil wastages.

(C) Foreign exchange earnings and outgo -

The Foreign Exchange earnings of the Company for year under review amounted to Nil. Theforeign exchange outflow of the Company for year under review amounted to Rs.669.81 crore.

33. Particulars of Employees and Related Disclosures

Disclosure pertaining to remuneration and other details as required under Section197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is annexed as Annexure D and forms a part of thisReport.

Disclosure pertaining to remuneration and other details as required under Section197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 is annexed as Annexure E and forms apart of this Report.

34. Prevention Prohibition and Redressal of Sexual Harassment of Women at Workplace

Pursuant to the requirements under the Prevention of Sexual Harassment of Women atWorkplace (Prevention Prohibition and Redressal) Act 2013 the Company has enacted aPolicy and duly constituted Internal Complaints Committees across locations. To buildawareness in this area the Company has been conducting induction / refresher programmesin the organisation on a continuous basis. During the year under review no complaint wasfiled.

35. Acknowledgements

Your Directors would like to express their appreciation for the co-operation andassistance received from the Government authorities banks and other financialinstitutions vendors suppliers customers debenture holders shareholders and all otherstakeholders during the year under review.

Your Directors also wish to place on record their deep sense of appreciation for thecommitted services of all the employees.

For and on behalf of the Board of Directors
Place: Mumbai Sajjan Jindal
Date: 25th June 2021 Chairman and Managing Director

.