Management Risk

Promoters Background

Suzlon Energy's promoter Tulsi Tanti has emerged the fourth richest Indian with a net worth of Rs
15,086 crore. He founded the company in 1995 and has served as its Managing Director and
Chairman since inception. He has over twenty-five years of experience in various technical and
commercial areas. He is a commerce graduate and has a Diploma-in-Mechanical Engineering.

Integrity, Commitment & Sincerity of promoters

The company has had cases of insider trading and minor issues in the past but the promoters are
sincere and have resolved issues. For example, SEBI disposed of proceedings against Suzlon Energy,
its chairman Tulsi Tanti and four other executives after they together paid Rs 12 lakh to settle
charges related to alleged delay in amending insider trading norms in 2013. All the board of directors
involved, including Suzlon, paid Rs 2 lakh each to settle the charges with Securities and Exchange
Board of India (SEBI).

Day to Day administration

Suzlon was built from scratch by Tulsi Tanti. By 2008, the company was the worlds fifth wind turbine
maker. Group CEO JP Chalasani has experience of 30 years in the Indian power sector developed at
companies like NTPC, Reliance Power and Punj Lloyd. Group COO Vinod Tanti has 27 years of
industry experience and has been with Suzlon since its inception. He has been involved in its project
planning, detailed wind mapping and micro siting for wind projects and has worked in a variety of
capacities including Chief Manufacturing Officer (Supply Chain) and whole-time Director.

Track record of execution

With over two decades of operational track record, the Group has a cumulative installation of
approximately 15.5 GW of wind energy capacity. They have fulfilled contracts timely.

Track record of debt repayment

The company has non-current liabilities of Rs 5233 crore. It was facing a big issue of huge debt (over
Rs 11,000 crore) in 2012, along with repayment of FCCBs. Additionally, there was a slowdown in
demand, especially in US and Europe and delay in payments by some customers amid the global
economic downturn. Suzlon had raised funds via FCCBs to acquire REpower. Its shares are at now at
a discount to the conversion price of FCCBs, so it to repay the bond holders. But for that, it will need
to raise more funds.

Capital market perception

The company is listed on the stock exchange since 2005 at a 35% premium to its issue price. Suzlon
posted profit that was almost double expectations for quarter ending March 31 as shipments
touched a record and cost-cutting measures took hold. The stock is trading at Rs 13.9 currently
which is lower than its peak market price this year (Rs 20) due to dismal results in the previous
quarter and inability to repay its mounting debt.. The promoters have tried to repay the debt but the
stock is still a risky bet as of now.

Track-record of modernization/technology Upgradation

Suzlon Energys strategy is 10% LCOE reduction through technology by optimizing fixed costs and
providing best in class technology. They have a strong project pipeline across windy states as well as
vertically integrated manufacturing. The upgrade their technology regularly, as they need to
maintain their 36% market share.

Contingency Risk

Foreign Exchange Risk

Guarantee given on behalf of group or other companies

The company repayed its SBLC backed debt (US$ 21 million).

Contingent liability, disputed liabilities on account of tax/excise etc

Investment in group companies

Liabilities that may arise on account of notes to accounts