New Delhi Wind turbine maker Suzlon's founder-Chairman Tulsi Tanti took a steep cut of Rs 1.46 crore in compensation as the company incurred losses last fiscal. Tanti, who is also an executive director, saw his yearly pay packet shrink by Rs 1.46 crore last fiscal and took home just Rs 53.76 lakh, according to Suzlon's annual report.
He was entitled to receive a compensation of Rs 2 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 Rs 48 lakh and retirements benefits worth Rs 5.76 lakh owing to the losses incurred by Suzlon. Tanti also surrendered his gratuity last financial year.
Tanti was to receive little over Rs 1.84 crore as salary in addition to retirement benefits of Rs 10.8 lakh and gratuity of Rs 4.32 lakh, as per his service contract valid till March 2014.
Another executive director Vinod Tanti also saw his compensation fall by Rs 66.24 lakh in 2011-12. Vinod was paid Rs 48 lakh as salary and Rs 5.76 lakh as retirement benefits. He too did not receive any gratuity. He was entitled to get little more than Rs 1.10 crore as
salary. The retirement benefits and gratuity payouts were to be Rs 6.48 lakh and Rs 2.59 lakh, respectively. Vinod ceased to be an executive director from June 1, 2012 but continues as a non-executive director.
In the fiscal year ended March 2012, Suzlon posted a net loss of Rs 479 crore, while the revenue from operations stood at Rs 21,082 crore during the same period. It had a cash
profit of Rs 418 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 Rs 11,165 crore at the end of March, 2012. Tanti noted that Suzlon has an order of more than Rs 41,500 crore that provides "clear visibility into FY 2012-13 and beyond". Suzlon, which has presence in 33 nations, expects to rake in revenues of Rs 27,000 to 28,000 crore this fiscal, representing about 30 per cent annual growth.
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Updated Date: Dec 20, 2014 10:19:01 IST