Annual Report
2019-20
Padma Vibhushan
Shri Dhirubhai H. Ambani
(28th December, 1932 - 6th July, 2002)
Reliance Group - Founder and Visionary
Board of Directors
Contents
Page No.
Shri Anil Dhirubhai Ambani
- Chairman
- Vice Chairman
- Executive Director and CEO
Shri S Seth
Shri Punit Garg
Shri S S Kohli
Shri K Ravikumar
Ms. Ryna Karani
Ms. Manjari Kacker
Key Managerial Personnel
Shri Pinkesh Shah
- Chief Financial Officer
Notice of Annual General Meeting ............................................ 04
Directors’ Report .......................................................................... 09
Management Discussion and Analysis ....................................... 19
Business Responsibility Report ................................................... 27
Corporate Governance Report .................................................... 35
Shri Paresh Rathod
- Company Secretary &
Investor Information .................................................................... 53
Compliance Officer
Independent Auditors' Report on the
Financial Statement ..................................................................... 62
Auditors
M/s. Pathak H.D. & Associates LLP
Balance Sheet .............................................................................. 70
Registered Office
Reliance Centre, Ground Floor
19, Walchand Hirachand Marg
Ballard Estate, Mumbai 400 001
CIN : L75100MH1929PLC001530
Tel. : +91 22 4303 1000
Fax : +91 22 4303 8662
Email : rinfra.investor@relianceada.com
Website: www.rinfra.com
Statement of Profit and Loss...................................................... 71
Statement of Changes in Equity ................................................ 72
Cash Flow Statement .................................................................. 74
Notes to Financial Statement .................................................... 76
Independent Auditors’ Report on the
Consolidated Financial Statement ............................................138
Registrar and Transfer Agent
Consolidated Balance Sheet .....................................................144
KFin Technologies Private Limited
Selenium Building, Tower – B, Plot No. 31 & 32
Financial District, Nanakramguda
Hyderabad - 500 032, Telangana.
Website: www.kfintech.com
Investor Helpdesk
Toll free no (India) : 1800 4250 999
Tel. no.
Fax no.
Email
: +91 40 6716 1500
: +91 40 6716 1791
:
rinfra@kfintech.com
Consolidated Statement of Profit and Loss.............................145
Consolidated Statement of Changes in Equity .......................146
Consolidated Cash Flow Statement .........................................148
Notes to Consolidated Financial Statement ...........................151
Statement containing salient features of the
financial statements of Subsidiaries/Associates/
Joint Ventures .............................................................................242
91st Annual General Meeting on Tuesday, June 23, 2020 at 2.30 P.M. (IST)
through Video Conferencing (VC) / Other Audio Visual Means (OAVM)
This Annual Report can be accessed at www.rinfra.com.
3
Reliance Infrastructure Limited
Notice
NOTICE is hereby given that the 91st Annual General Meeting
(AGM) of the Members of Reliance Infrastructure Limited will
be held on Tuesday, June 23, 2020 at 2.30 P.M. (IST) through
Video Conference (VC)/ Other Audio Visual Means (OAVM)
facility to transact the following business:
RESOLVED FURTHER THAT the Board of Directors of the
Company be and is hereby authorised to do all acts and
take all such steps as may be necessary, to give effect to
this resolution.”
By Order of the Board of Directors
Ordinary Business:
1.
To consider and adopt:
2.
3.
(a)
(b)
the audited financial statement of the Company
for the financial year ended March 31, 2020 and
the reports of the Board of Directors and Auditors
thereon, and
the audited consolidated financial statement of the
Company for the financial year ended March 31,
2020 and the report of the Auditors thereon.
To appoint a Director in place of Shri S. Seth
(DIN:00004631), who retires by rotation under the
provisions of the Companies Act, 2013 and being eligible,
offers himself for re-appointment.
To appoint Auditors and fix their remuneration and in this
regard, to consider and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
139, 142 and other applicable provisions, if any, of the
Companies Act, 2013 (hereinafter referred to as “the Act”)
and the relevant Rules made thereunder (including any
statutory modification(s) or re-enactment(s) thereof for
the time being in force), M/s. Chaturvedi and Shah LLP,
Chartered Accountants (Firm Registration no. W100355),
who have confirmed their eligibility for the appointment
pursuant to Section 141 of the Act as Statutory Auditors
of the Company, be and are hereby appointed as Statutory
Auditors of the Company for a term of five consecutive
years, to hold office from the conclusion of this Annual
General Meeting till the conclusion of the ninety sixth
Annual General Meeting, at such remuneration as shall be
fixed by the Board of Directors of the Company.”
Special Business:
4.
Remuneration to Cost Auditors
To consider and, if thought fit, to pass, the following
resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section
148 and all other applicable provisions, if any, of the
Companies Act, 2013 and the rules made thereunder
(including any statutory modification(s) or re-enactment(s)
thereof, for the time being in force), M/s V. J. Talati &
Company, Cost Accountants (Firm Registration Number
R/000213), appointed as the Cost Auditors of the
Company for audit of the cost accounting records of the
Company for the financial year ending March 31, 2021,
be paid remuneration of ` 25,000 (Rupees twenty five
thousand only) plus applicable taxes and out of pocket
expenses, if any.
4
Paresh Rathod
Company Secretary
Registered Office:
Reliance Centre, Ground Floor,
19, Walchand Hirachand Marg,
Ballard Estate, Mumbai 400 001
CIN:L75100MH1929PLC001530
Website:www.rinfra.com
May 08, 2020
Notes:
1.
2.
3.
Statement pursuant to Section 102(1) of the Companies
Act, 2013 (“Act”), in respect of the Special Business to
be transacted at the Annual General Meeting (“AGM”) is
annexed hereto.
In view of the continuing Covid-19 pandemic, the
Ministry of Corporate Affairs (“MCA”) has vide its circular
dated May 5, 2020 read with circulars dated April 8,
2020 and April 13, 2020 (collectively referred to as
“MCA Circulars”) permitted the holding of the “AGM”
through Video Conferencing (VC) / Other Audio Visual
Means (OAVM), without the physical presence of the
Members at a common venue. Accordingly, in compliance
with the provisions of the Act, SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“SEBI
Listing Regulations”) and MCA Circulars, the AGM of the
Company is being held through VC / OAVM.
The AGM is being held pursuant to the MCA Circulars
through VC / OAVM, physical attendance of Members
has been dispensed with. Accordingly, the facility for
appointment of proxies will not be available for the
AGM and hence the Proxy Form and Attendance Slip are
not annexed to this Notice.
4.
Re-appointment of Director:
At the ensuing Annual General Meeting, Shri S. Seth,
Director of the Company shall retire by rotation under
the provisions of the Act and being eligible, offers himself
for re-appointment. The Nomination and Remuneration
Committee and the Board of Directors of the Company
have recommended the re-appointment.
The details pertaining to Shri S. Seth are furnished
hereunder:
Shri S. Seth, 64 years, is a Fellow Chartered Accountant
and a law graduate. He has vast experience in general
management. Shri S. Seth is also on the Board of Reliance
Reliance Infrastructure Limited
Notice
5.
6.
Power Limited, Reliance Defence Limited, Reliance
Defence and Aerospace Private Limited, Reliance Defence
Systems Private Limited, Reliance Defence Technologies
Private Limited and Reliance Airport Developers Limited.
As on March 31, 2020, Shri S. Seth does not hold any
shares of the Company. He does not hold any relationship
with other Directors and Key Managerial Personnel of the
Company.
Corporate Members are required to send a scanned
copy (PDF/JPG Format) of its Board or governing
body Resolution / Authorization, etc., authorizing its
representative to attend the AGM through VC / OAVM
on its behalf and to vote through remote e-voting to
the M/s. KFin Technologies Private Limited (Kfintech),
the Registrar and Transfer Agent, by email through its
registered email address to praveendmr@kfintech.com.
In compliance with the aforesaid MCA Circulars, Notice
of the AGM along with the Annual Report 2019-20
is being sent only through electronic mode to those
Members whose email addresses are registered with the
Company or CDSL / NSDL (“Depositories”). Members may
note that the Notice and Annual Report 2019-20 will
also be available on the Company’s website www.rinfra.
com, websites of the Stock Exchanges i.e. BSE Limited
and National Stock Exchange of India Limited at www.
bseindia.com and www.nseindia.com respectively, and on
the website of Kfintech at www.kfintech.com.
7. Members whose email address is not registered can
register the same in the following manner:
a. Members holding share(s) in physical mode can
register their e-mail ID on the Company’s website at
https://www.rinfra.com/web/rinfra/shareholder-
registration by providing the requisite details of their
holdings and documents for registering their e-mail
address; and
b. Members holding share(s) in electronic mode are
requested to register / update their e-mail address
with their respective Depository Participants “DPs”
for receiving all communications from the Company
electronically.
8.
The Company has engaged the services of M/s. KFin
Technologies Private Limited, Registrar and Transfer Agent
as the authorized agency (Kfintech) for conducting of
the e-AGM and providing e-voting facility.
9. Members attending the AGM through VC / OAVM shall be
counted for the purpose of reckoning the quorum under
Section 103 of the Act.
10. Since the AGM will be held through VC / OAVM, the
Route Map is not annexed in this Notice.
11. Relevant documents referred to in the accompanying
Notice calling the AGM are available on the website of
the Company for inspection by the Members.
12. Members are advised to refer to the section titled ‘Investor
Information’ provided in this Annual Report.
13. As mandated by SEBI, effective from April 1, 2019, that
securities of listed companies shall be transferred only in
dematerialised form. In view of the above and to avail
various benefits of dematerialisation, Members are advised
to dematerialise share(s) held by them in physical form.
14. Members are requested to fill in and submit the Feedback
Form provided in the ‘Investor Relations’ section on the
Company’s website www.rinfra.com to aid the Company
in its constant endeavor to enhance the standards of
service to investors.
15.
Instructions for attending the AGM and e-voting are as
follows:
A.
Instructions for attending the AGM:
1. Members will be able to attend the AGM through VC /
OAVM or view the live webcast of AGM at https://ris.
kfintech.com/vc/login2vc.aspx by using their remote
e-voting login credentials and selecting the ‘Event’ for
Company’s AGM. Members who do not have the User
ID and Password for e-voting or have forgotten the User
ID and Password may retrieve the same by following the
remote e-voting instructions mentioned in the Notice.
Further, Members can also use the OTP based login for
logging into the e-voting system.
2.
3.
Facility of joining the AGM through VC / OAVM shall
open 15 minutes before the time scheduled for the AGM
and Members who may like to express their views or
ask questions during the AGM may register themselves
at
https://ris.kfintech.com/agmvcspeakerregistration.
Facility of joining AGM will be closed on expiry of 15
minutes from the schedule time of the AGM. Those
Members who register themselves as speaker will only be
allowed to express views/ask questions during the AGM.
The Company reserves the right to restrict the number of
speakers and time for each speaker depending upon the
availability of time for the AGM.
Facility of joining the AGM through VC / OAVM shall be
available for 1,000 members on first come first served
basis. However, the participation of members holding
2% or more shares, Promoters, Institutional Investors,
Directors, Key Managerial Personnel, Chairpersons of
Audit Committee, Stakeholders Relationship Committee,
Nomination and Remuneration Committee and Auditors
are not restricted on first come first serve basis.
4. Members who need technical assistance before or during
the AGM, can contact Kfintech at https://ris.kfintech.
com/agmqa/agmqa/login.aspx
5
Reliance Infrastructure Limited
Notice
B.
1.
2.
3.
Instructions for e-voting
In compliance with the provisions of Section 108 of the
Act read with Rules made there under and Regulation
44 of the Listing Regulations, the Company is offering
e-voting facility to all Members of the Company. A person,
whose name is recorded in the Register of Members or in
the Register of Beneficial Owners (in case of electronic
shareholding) maintained by the Depositories as on the
cut-off date i.e. Tuesday, June 16, 2020 only shall be
entitled to avail the facility of remote e-voting/e-voting
at the AGM. Kfintech will be facilitating remote e-voting
to enable the Members to cast their votes electronically.
Members can cast their vote online from 10.00 A.M. (IST)
on Friday, June 19, 2020 to 5.00 P.M. (IST) on Monday,
June 22, 2020. At the end of remote e-voting period, the
facility shall forthwith be blocked.
The Members who have cast their vote by remote
e-voting prior to the AGM may also attend/ participate in
the AGM through VC / OAVM but shall not be entitled to
cast their vote again.
The Members present in the AGM through VC / OAVM
facility and have not cast their vote on the Resolutions
through remote e-voting, and are otherwise not barred
from doing so, shall be eligible to vote through e-voting
system during the AGM.
4.
The procedure and instructions for remote e-voting are as
follows:
a.
b.
Open your web browser during the remote e-voting
period and navigate to “https://evoting.karvy.com”.
Enter the login credentials (i.e., user-id and
password) mentioned in the letter. Your Folio No. /
DP ID No. / Client ID No. will be your User- ID.
User – ID
For Members holding shares in Demat
Form:-
For NSDL :- 8 Character DP ID followed by 8 Digits
Client ID
For CDSL :- 16 digits beneficiary ID
User – ID For Members holding shares in Physical
Form:-
Password
Captcha
Event Number followed by Folio No.
registered with the Company
Your unique password is sent via e-mail
forwarded
the electronic
notice
through
5.
Please enter the verification code i.e.
the alphabets and numbers in the
exact way as they are displayed for
security reasons
c.
After entering these details appropriately, click on
“LOGIN”.
6
d. Members holding shares in Demat / Physical form
will now reach Password Change menu wherein
they are required to mandatorily change their
login password in the new password field. The
new password has to be minimum eight characters
consisting of at least one upper case (A-Z), one
lower case (a-z), one numeric value (0-9) and a
special character (@, #,$, etc.). Kindly note that
this password can be used by the Demat holders
for voting in any other Company on which they are
eligible to vote, provided that the other company
opts for e-voting through Kfintech e-Voting
platform. System will prompt you to change your
password and update your contact details like
mobile number, e-mail ID, etc. on first login. You
may also enter the secret question and answer of
your choice to retrieve your password in case you
forget it. It is strongly recommended not to share
your password with any other person and take
utmost care to keep your password confidential.
e.
f.
g.
h.
i.
j.
You need to login again with the new credentials.
On successful login, system will prompt you to
select the ‘Event’ i.e. ‘Company Name’.
If you are holding shares in Demat form and had
logged on to “https://evoting.karvy.com” and have
cast your vote earlier for any company, then your
existing login ID and password are to be used.
On the voting page, you will see Resolution
Description and against the same the option ‘FOR /
AGAINST / ABSTAIN’ for voting. Enter the number
of shares (which represents the number of votes)
under ‘FOR / AGAINST / ABSTAIN’ or alternatively
you may partially enter any number in ‘FOR’ and
partially in ‘AGAINST’, but the total number in ‘FOR
/ AGAINST’ taken together should not exceed your
total shareholding. If you do not wish to vote,
please select ‘ABSTAIN’.
After selecting the Resolution you have decided
to vote on, click on “SUBMIT”. A confirmation box
will be displayed. If you wish to confirm your vote,
click on “OK”, else to change your vote, click on
“CANCEL” and accordingly modify your vote.
Once you ‘CONFIRM’ your vote on the Resolution
whether partially or otherwise, you will not be
allowed to modify your vote.
Corporate Members (i.e. other than Individuals, HUF, NRI,
etc.) are required to send scanned copy (PDF / JPG format)
of the relevant Board or governing body Resolution /
Authorisation together with attested specimen signature
of the duly authorised signatory(ies) who are authorised
to vote, to ‘evoting@karvy.com’. The file / scanned image
of the Board Resolution / authority letter should be in the
naming format ‘Corporate Name Event no.’.
Reliance Infrastructure Limited
Notice
6.
The voting rights of the Members shall be in proportion
to the number of shares held by them in the equity share
capital of the Company as on the cut-off date being
Tuesday, June 16, 2020.
7.
8.
In case of joint holders, the Member whose name appears
as the first holder in the order of names as per the Register
of Members of the Company will be entitled to vote at
the AGM.
It is strongly recommended not to share your password
with any other person and take utmost care to keep your
password confidential. Login to the e-voting website will
be disabled upon five unsuccessful attempts to key in the
correct password. In such an event, you will need to go
through the “Forgot User Details/Password?” or “Physical
User Reset Password?” option available on https://
evoting.karvy.com/ to reset the password.
The Board of Directors have appointed Mr. Anil Lohia,
Partner or in his absence Mr. Chandrahas Dayal, Partner,
M/s. Dayal and Lohia, Chartered Accountants as the
Scrutiniser to scrutinise the voting process in a fair and
transparent manner. The Scrutiniser will submit their report
to the Chairman or any person authorised by him after
completion of the scrutiny and the results of voting will
be announced after the AGM of the Company. Subject
to receipt of requisite number of votes, the resolutions
shall be deemed to be passed on the date of the AGM.
The result of the voting will be submitted to the Stock
Exchanges, where the shares of the Company are listed
and posted on the website of the Company at www.
rinfra.com and also on the website of Kfintech at https://
evoting.karvy.com.
9.
In case of any query pertaining to e-voting, please visit
Help and FAQs section available at Kfintech’s website
https://evoting.karvy.com OR contact toll free no.1800
4250 999.
Statement pursuant to Section 102 (1) of the Companies
Act, 2013 and pursuant to Regulation 36 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, to the accompanying Notice dated May 8, 2020
Item No. 3:
As per the provisions of Companies Act, 2013 (hereinafter referred
to as “the Act”) and the relevant Rules made there under (including
any statutory modification(s) or re-enactment(s) thereof for the
time being in force), it is proposed to appoint M/s. Chaturvedi
and Shah LLP, Chartered Accountants (Firm Registration No.
W100355) as Statutory Auditors of the Company in place of
M/s. Pathak H.D. & Associates LLP, Chartered Accountants (Firm
Registration No. 107783W), whose term expires at the end of
ensuing Annual General Meeting (AGM).
The Audit Committee and Board of Directors of the Company
have recommended the appointment of M/s. Chaturvedi and
Shah LLP as Statutory Auditors of the Company for a term of five
(5) consecutive years from the conclusion of 91st AGM till the
conclusion of 96th AGM of the Company.
Additional information about Statutory Auditors pursuant to
Regulation 36 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (the Listing Regulations) is
provided below:
Details
Particulars
Proposed Fees payable to the
Statutory Auditors
Terms of Appointment
In case of new Auditor, any
material change in the fee
payable to such auditor from
that paid to the outgoing
auditor along with
the
rationale for such change
Basis of
recommendation
including
for appointment
the details in relation to and
credentials of the Statutory
Auditor(s) proposed to be
appointed
` 78 lakh per year from the
financial year 2020-21 with
authority to the Board to revise
during the tenure of five years,
if required.
term of five
For a
(5)
consecutive years from the
conclusion of 91st AGM till the
conclusion of 96th AGM of the
Company
There is no change in the fees
M/s. Chaturvedi & Shah LLP
is one of the leading firms of
Chartered Accountants in India,
founded in the year 1967.
M/s. Chaturvedi & Shah LLP is
a multi-disciplinary Audit Firm
catering to various clients in
diverse sectors. The range of
includes Assurance,
services
and
Taxation,
Transaction Advisory Services.
Corporate
M/s. Chaturvedi & Shah LLP
holds
‘Peer Review’
certificate as issued by ‘ICAI’.
the
None of the Directors, Key Managerial Personnel of the Company
and their relatives are, in any way, concerned or interested
financially or otherwise in this resolution set out at Item no. 3
of the Notice.
The Board accordingly recommends the Ordinary Resolution set
out at Item No. 3 of the accompanying Notice for approval of
the Members.
Item No. 4: Remuneration to the Cost Auditors for the financial
year ending March 31, 2021
The Board of Directors on the recommendation of the Audit
Committee has approved the appointment and remuneration of
M/s. V.J. Talati & Co., Cost Accountants (Firm Registration No.
7
Reliance Infrastructure Limited
Notice
R/000213), as the Cost Auditors for audit of the cost accounting
records of the Company for the financial year ending March
31, 2021, at a remuneration of ` 25,000 (Rupees twenty
five thousand only) plus applicable taxes and out-of-pocket
expenses.
In terms of the provisions of Section 148(3) of the Companies
Act, 2013 read with the Companies (Audit and Auditors) Rules,
2014, remuneration payable to the Cost Auditor needs to be
ratified by the Members of the Company.
None of the Directors, Key Managerial Personnel of the Company
and their relatives are, in any way, concerned or interested
financially or otherwise in this resolution set out at Item no. 4
of the Notice.
The Board accordingly recommends the Ordinary Resolution set
out at Item No. 4 of the accompanying Notice for approval of
the Members.
By Order of the Board of Directors
Paresh Rathod
Company Secretary
Registered Office:
Reliance Centre, Ground Floor,
19, Walchand Hirachand Marg,
Ballard Estate, Mumbai 400 001
CIN:L75100MH1929PLC001530
Website:www.rinfra.com
May 8, 2020
8
Reliance Infrastructure Limited Directors’ Report
Dear Shareowners,
Your Directors present the 91st Annual Report and the audited financial statements for the financial year ended March 31, 2020.
Financial performance and state of the Company’s affairs
The standalone financial performance of the Company for the financial year ended March 31, 2020 is summarised below:
Particulars
Total Income
Gross Profit before depreciation
Depreciation
Exceptional Items-(Expenses)/Income
Profit/(Loss) before taxation
Tax expenses (Net) (including deferred tax and tax for earlier years)
Net profit from discontinuing operation
Profit/(Loss) after taxation
Balance of profit brought forward from previous year
Other comprehensive income recognised directly in retained earnings
Profit available for appropriations
Dividend paid out on equity shares during the year (including tax on dividend) (Net)
Transfer to Debenture Redemption Reserve
Balance carried to Balance Sheet
Financial year ended
March 31, 2020
*Financial year ended
March 31, 2019
` in crore
3,339
1,061
65
-
996
(35)
-
1,031
(675)
3
359
-
56
303
** US $
Million
443
141
9
-
132
` in crore
3,581
1,185
82
(6,181)
(5,078)
** US $
Million
518
171
12
(894)
(734)
(5)
-
137
(92)
1
46
-
7
39
(191)
3,974
(913)
626
6
(281)
297
97
(675)
(28)
575
(132)
96
1
(35)
43
14
(92)
*Figures of previous year have been regrouped and reclassified wherever required. Figures for the previous year pertaining to Mumbai
Power Business have been considered as part of discontinued operation.
** @ ` 75.3245 = US $ 1 Exchange rate as on March 31, 2020 (` 69.1550 = US $ 1 Exchange rate as on March 31, 2019).
Financial Performance
During the year under review, your Company earned an income
of ` 3,339 crore against ` 3,581 crore in the previous year.
The Company earned a profit of ` 1,031 crore for the year as
compared to loss of ` 913 crore in the previous year.
The performance and financial position of the subsidiary
companies and associate companies are included in the
consolidated financial statements of the Company and presented
in the Management Discussion and Analysis forming part of this
Annual Report.
The outbreak of COVID-19 pandemic has significantly impacted
businesses around the world. The Government of India ordered
a nationwide lockdown, initially for 21 days which was extended
twice and now valid till May 17, 2020 to prevent community
spread of COVID-19 in India. This has resulted in significant
reduction in economic activities. With respect to operations of
the Company, it has impacted its business by way of interruption
in construction activities, supply chain disruption, unavailability of
personnel, closure/lock down of various other facilities etc.
Few of the construction activities are already commenced albeit
in a limited manner. The Company has considered various internal
and external information including assumptions relating to
economic forecasts up to the date of approval of these financials
for assessing the recoverability of various receivables, which
includes unbilled receivables, investments, goodwill, contract
assets and contract costs. The assumptions used by the company
have been tested through sensitivity analysis and the company
expects to recover the carrying amount of these assets based on
the current indicators of future economic conditions.
Further the Company has availed protections available to it
as per various contractual provisions to reduce the impact of
COVID-19. The aforesaid evaluation is based on projections
and estimations which are dependent on future development
including government policies. Any changes due to the changes
in situations/circumstances will be taken into consideration, if
necessary, as and when it crystallizes.
Dividend
During the year under review, the Board of Directors has not
recommended dividend on the equity shares of the Company.
Business Operations
The Company is amongst the leading player in the country in
the Engineering and Construction (E&C) segment for power,
roads, metro and other infrastructure sectors. The Company is
also engaged in implementation, operation and maintenance
of several projects in defence sector and infrastructural areas
through its special purpose vehicles.
Management Discussion and Analysis
The Management Discussion and Analysis for the year under
review as stipulated under Regulation 34(2) of the Securities
and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (the Listing Regulations),
is presented in a separate section forming part of this Annual
Report.
9
Reliance Infrastructure Limited Directors’ Report
Issue and redemption of Non-Convertible Debentures
Directors
The Company has not carried out any fresh issue of Non
Convertible Debentures in the current financial year.
During the year, the Company has redeemed Non-Convertible
Debentures aggregating to ` 30.80 Crore. There was delay
/ default by the Company in redemption of Non Convertible
Debentures, payment of interest and recall by the debenture
holder to the extent of ` 906.58 Crore as on March 31, 2020.
The Company is engaged in various initiatives to monetize its
assets and to unlock the value of its businesses and to thereby
significantly reduce its overall leverage.
Deposits
The Company has not accepted any deposits from the public
falling within the ambit of Section 73 of the Companies Act,
2013 (‘the Act’) and the Companies (Acceptance of Deposits)
Rules, 2014. There are no unclaimed deposits, unclaimed/unpaid
interest, refunds due to the deposit holders or to be deposited
with the Investor Education and Protection Fund as on March
31, 2020.
Particulars of Loans, Guarantees or Investments
The Company has complied with provisions of Section 186 of the
Act, to the extent applicable with respect to Loans, Guarantees
or Investments during the year.
Pursuant to Section 186 of the Act, details of the Investments
made by the Company are provided in the standalone financial
statement (Please refer to Note No. 7 to the standalone financial
statement).
Subsidiary Companies, Associates and Joint venture
During the year under review, Reliance Sealink One Private
Limited ceased to be the Subsidiary of the Company and Gullfoss
Enterprises Private Limited became an associate of the Company.
Further, Reliance Power Limited ceased to be an associate of the
Company.
The summary of the performance and financial position of the
each of the subsidiary and associate company are presented
in Form AOC - 1 and in Management Discussion and Analysis
report forming part of this Annual Report. Also, a report on the
performance and financial position of each of the subsidiaries,
associates and joint ventures as per the Act is provided in the
consolidated financial statement.
The Policy for determining material subsidiary company, as
approved by the Board, may be accessed on the Company’s website
at https://www.rinfra.com/documents/1142822/1189698/
Policy_for_Determination_of_Material_Subsidiary_updated.pdf
Standalone and Consolidated Financial Statements
The audited financial statements of the Company are drawn up,
both on standalone and consolidated basis, for the financial year
ended March 31, 2020, in accordance with the requirements
of the Companies (Indian Accounting Standards) Rules, 2015
(Ind-AS) notified under Section 133 of the Act, read with relevant
rules and other accounting principles. The Consolidated Financial
Statements have been prepared in accordance with Ind-AS and
relevant provisions of the Act based on the financial statements
received from subsidiaries, associates and joint ventures, as
approved by their respective Board of Directors.
10
In terms of the provisions of the Act, Shri S Seth, Director of the
Company retires by rotation and being eligible, offers himself for
re-appointment at the ensuing Annual General Meeting.
At the Annual General Meeting held on September 30, 2019,
the Members have approved the appointment of Shri Punit Garg,
as Whole-Time Director designated as Executive Director of the
Company for a period of three years commencing from April 6,
2019 and Ms. Manjari Kacker was appointed as an Independent
Director with effect from June 14, 2019 for a term of five
consecutive years. Further, Ms. Ryna Karani, Shri S S Kohli and
Shri K Ravikumar were re-appointed as Independent Directors
for second term of five years to hold office from September 20,
2019 to September 19, 2024.
During the year, Shri Jai Anmol Ambani and Shri Jai Anshul Ambani
were appointed as Additional Directors with effect from October
9, 2019. They have resigned from the Board effective from
January 31, 2020.
Lt. Gen. Syed Ata Hasnain (Retd.) was appointed as Additional
Director in the capacity of Independent Director with effect from
October 9, 2019. He resigned as an Independent Director with
effect from March 18, 2020, pursuant to his appointment as a
Member of the National Disaster Management Authority by the
Government of India.
Shri B. C. Patnaik, ceased to be Director on September 30, 2019,
in terms of Section 161 of the Act.
The Board places on record its sincere appreciation for the
valuable contribution made by Shri B. C. Patnaik, Shri Jai Anmol
Ambani, Shri Jai Anshul Ambani and Lt. Gen. Syed Ata Hasnain
(Retd.) during their tenure as Directors of the Company.
A brief profile of Shri S. Seth along with requisite details as
stipulated under Regulation 36(3) of the Listing Regulations is
provided in this Annual Report.
The Company has received declaration from all the Independent
Directors of the Company confirming that they meet the criteria
of independence as prescribed under the Act and the Listing
Regulations. The details of programme for familiarisation of
Independent Directors with the Company, nature of the industry
in which the Company operates and related matters are uploaded
on the website of the Company at the link https://www.
rinfra.com/documents/1142822/1182645/Familiarisation_
programme.pdf. In the opinion of the Board, the Independent
Directors possess the requisite expertise and experience and
are the persons of high integrity and repute. They fulfill the
conditions specified in the Act and the Rules made thereunder
and are independent of the management.
Key Managerial Personnel
Shri Punit Garg was appointed as an Executive Director and Chief
Executive Officer of the Company with effect from April 6, 2019.
Shri Paresh Rathod has been appointed as Company Secretary
and Compliance Officer of the Company with effect from August
16, 2019.
At the Board Meeting held on May 8, 2020, Shri Pinkesh R Shah
was appointed as Chief Financial Officer of the Company in the
place of previous incumbent Shri Sridhar Narasimhan.
Reliance Infrastructure Limited Directors’ Report
Evaluation of Directors, Board and Committees
The Nomination and Remuneration Committee of the Board of
the Company has devised a policy for performance evaluation of
the Directors, Board and its Committees, which includes criteria
for performance evaluation.
Pursuant to the provisions of the Act and Regulation 17(10)
of the Listing Regulations, the Board has carried out an
annual performance evaluation of its own performance, the
directors individually as well as the evaluation of the working
of the committees of the Board. The Board performance was
evaluated based on inputs received from all the Directors after
considering the criteria such as Board Composition and structure,
effectiveness of Board / Committee processes and information
provided to the Board, etc.
Policy on appointment and remuneration of Directors, Key
Managerial Personnel and Senior Management Employees
The Nomination and Remuneration Committee of the Board has
devised a policy for selection, appointment and remuneration
of Directors, Key Managerial Personnel and Senior Management
Employees. The Committee has formulated the criteria for
determining qualifications, positive attributes and independence
of Directors, which has been put up on the Company’s website
at https://www.rinfra.com/documents/1142822/1182645/
Remuneration-Policy.pdf and also is attached as Annexure A.
Directors’ Responsibility Statement
Pursuant to the requirements under Section 134(5) of the Act
with respect to Directors’ Responsibility Statement, it is hereby
confirmed that:
i.
In the preparation of the annual financial statement for
the financial year ended March 31, 2020, the applicable
accounting standards had been followed along with proper
explanation relating to material departures, if any;
The Directors had selected such accounting policies and
applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company
as at March 31, 2020 and of the profit of the Company
for the year ended on that date;
The Directors had taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities;
The Directors had prepared the annual financial statement
for the financial year ended March 31, 2020, on a going
concern basis;
The Directors had laid down proper internal financial
controls to be followed by the Company and such
internal financial controls are adequate and are operating
effectively; and
The Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems are adequate and operating effectively.
ii.
iii.
iv.
v.
vi.
Contracts and Arrangements with Related Parties
All contracts, arrangements and transactions entered into by
the Company during the financial year under review with related
parties were on an arm’s length basis and in the ordinary course
of business.
There were no materially significant related party transactions
made by the Company with Promoters, Directors, Key Managerial
Personnel or other designated persons, which could have potential
conflict with the interest of the Company at large.
During the year, the Company has not entered into any contract/
arrangement/transaction with related parties which could be
considered material in accordance with the policy of Company on
materiality of related party transactions.
All Related Party Transactions were placed before the Audit
Committee for approval. Omnibus approval of the Audit
Committee was obtained for the transactions which were of a
repetitive nature. The transactions entered into pursuant to the
omnibus approval so granted were reviewed and statements
giving details of all related party transactions were placed
before the Audit Committee on a quarterly basis. The policy on
Related Party Transactions as approved by the Board is uploaded
on the Company’s website at the link: https://www.rinfra.com/
documents/1142822/1189698/Related_Party_Transactions_
Policy_updated.pdf. Your Directors draw attention of the
Members to note 34 to the standalone financial statement
which sets out related party disclosures pursuant to Ind-AS and
Schedule V of Listing Regulations.
Material Changes and Commitments if any, affecting the
financial position of the Company
There were no material changes and commitments affecting the
financial position of the Company which have occurred between
the end of the financial year and the date of this report.
Meetings of the Board
A calendar of Meetings is prepared and circulated in advance to
the Directors. During the financial year ended March 31, 2020,
six Board Meetings were held. Details of the meetings held and
attended by each Director are given in the Corporate Governance
Report forming part of this Annual Report.
Audit Committee
The Audit Committee of the Board of Directors comprises of
majority of Independent Directors namely Ms. Manjari Kacker, Shri
S S Kohli, Shri K Ravikumar, Ms. Ryna Karani, and Shri Punit Garg,
Executive Director and Chief Executive Officer. Ms. Manjari Kacker,
Independent Director, is the Chairperson of the Committee.
During the year, all the recommendations made by the Audit
Committee were accepted by the Board.
Auditors and Auditor’s Report
M/s. Pathak H.D. & Associates LLP, Chartered Accountants, who
were appointed as statutory auditors of the Company to hold
office for a term of 4 (four) consecutive years at the 87th Annual
General Meeting of the Company held on September 27, 2016,
would be completing their second term of appointment upon
conclusion of the 91st Annual General Meeting of the Company
and accordingly, cannot be re-appointed.
The Board, on recommendation of the Audit Committee, has
proposed the appointment of M/s. Chaturvedi & Shah LLP,
Chartered Accountants as the Statutory auditors of the Company
for a term of 5 years until the conclusion of 96th Annual General
Meeting of the Company, subject to approval of Members in
ensuing Annual General Meeting.
11
Reliance Infrastructure Limited Directors’ Report
The Company has received a consent letter from M/s. Chaturvedi
& Shah LLP, to the effect that their appointment, if made, would
be within the limits prescribed under Section 141(3)(g) of the
Act, and that they are not disqualified from appointment as
statutory auditors in terms of Section 141 of the Act read with
Section 139 of the Act and the Rules made there under.
The Auditors in their report to the Members have given a
Disclaimer of Opinion for the reasons set out in the para titled
Basis of Disclaimer of Opinion. The relevant facts and the factual
position have been explained in the Note 40 & 42 of the Notes
on Accounts. It has been explained that:
(a) the Reliance Group of companies of which the Company is a
part, supported an independent company in which the Company
holds less than 2% of equity shares (“EPC Company”) to inter
alia undertake contracts and assignments for the large number
of varied projects in the fields of Power (Thermal, Hydro and
Nuclear), Roads, Cement, Telecom, Metro Rail, etc. which were
proposed and/or under development by the Reliance Group. To
this end along with other companies of the Reliance Group the
Company funded EPC Company by way of project advances,
subscription to debentures and inter corporate deposits.
The activities of EPC Company have been impacted by the
reduced project activities of the companies of the Reliance
Group. While the Company is evaluating the nature of
relationship; if any, with the independent EPC Company, based
on the analysis carried out in earlier years, the EPC Company has
not been treated as related party.
Given the huge opportunity in the EPC field particularly considering
the Government of India’s thrust on infrastructure sector coupled
with increasing project and EPC activities of the Reliance Group,
the EPC Company with its experience will be able to achieve
substantial project activities in excess of its current levels, thus
enabling the EPC Company to meet its obligations. The Company
is reasonably confident that the provision will be adequate to
deal with any contingency relating to recovery from the EPC
Company.
(b) During the year, the loss on invocation of pledge of shares of
Reliance Power Limited (RPower) held by the Company has been
adjusted against the capital reserve since this is an extremely rare
circumstance where even though the value of long term strategic
investment is high, the same is being disposed off at much lower
value for the reasons beyond the control of the Company, thereby
causing the said loss to the Company. Hence, being the capital
loss, the same has been adjusted against the capital reserve.
Further, due to the aforesaid invocation, investment in RPower
has been reduced to 12.77% of its paid-up share capital.
Accordingly, in terms of Ind AS 28 on Investments in Associates
and Joint Venture, RPower ceases to be an associate of the
Company. Although this being strategic investment and Company
continues to be promoter of RPower, due to the invocations of
the shares by the lenders for the reasons beyond the control
of the Company the balance investments in RPower have been
carried at fair value in accordance with Ind-AS 109 on Financial
Instruments and valued at current market price and loss on fair
valuation being the capital loss, has been adjusted against the
capital reserve.
The other observations and comments given by the Auditors in
their report, read together with notes on financial statements
are self explanatory and hence do not call for any further
comments under section 134 of the Act.
12
Cost Auditors
Pursuant to the provisions of the Act and the Companies
(Audit and Auditors) Rules, 2014, the Board of Directors have
appointed M/s. V J Talati & Co. Cost Accountants, as the Cost
Auditors of the Company for conducting the cost audit of the
Engineering, Procurement and Construction Division & Power
Generation Division of the Company for the financial year ending
March 31, 2021, and their remuneration is subject to ratification
by the Members at the ensuing Annual General Meeting of the
Company.
The Provisions of Section 148(1) of the Act are applicable to
the Company and accordingly the Company has maintained cost
accounts and records in respect of the applicable products for
the year ended March 31, 2020.
Secretarial Standards
During the year under review, the Company has complied with
the applicable Secretarial Standards issued by The Institute of
Company Secretaries of India.
Secretarial Audit and Annual Secretarial Compliance Report
Pursuant to the provisions of Section 204 of the Act read with
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Board of Directors has appointed
M/s. Ashita Kaul & Associates, Company Secretaries in Practice,
to undertake the Secretarial Audit of the Company. There is
no qualification, reservation or adverse remark made by the
Secretarial Auditor in the Secretarial Audit Report except for
delay in filing of the financial results for the quarter and financial
year ended March 31, 2019. The Board states that the delay
in filing of financial results was due to the postponement of
meeting of the Board of Directors of Reliance Power Limited,
an Associate Company. The same has also been disclosed to the
Stock Exchanges. The Audit Report of the Secretarial Auditors for
the financial year ended March 31, 2020 is attached hereto as
Annexure B.
Pursuant to Circular No.CIR/ CFD/ CMD1/ 27/ 2019 dated
February 08, 2019, issued by the SEBI, the Company has
obtained Annual Secretarial Compliance Report from a Practicing
Company Secretary on compliance of all applicable SEBI
Regulations and circulars/ guidelines issued there under and the
copy of the same shall be submitted with the Stock Exchanges
within the prescribed due date.
Annual Return
As required under Section 134 (3)(a) of the Act, the Annual
Return for the year 2018-2019 and 2019-20 is put up on the
Company’s website and can be accessed at https://www.rinfra.
com/web/rinfra/annual-return.
Particulars of Employees and related disclosures
In terms of the provisions of Section 197(12) of the Act
read with rule 5(2) and 5(3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, as
amended, a statement showing the names and other particulars
of the employees drawing remuneration in excess of the limits
set out in the said Rules are provided in the Annual Report.
Disclosures relating to the remuneration and other details as
required under Section 197(12) of the Act read with rule 5(1) of
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 as amended, also forms part of this
Annual Report.
Reliance Infrastructure Limited Directors’ Report
However, having regard to the provisions of second proviso to
Section 136(1) of the Act, the Annual Report, excluding the
aforesaid information is being sent to all the Members of the
Company and others entitled thereto. Any member interested in
obtaining the same may write to the Company Secretary and the
same will be furnished on request.
Conservation of energy, technology absorption and foreign
exchange earnings and outgo
The particulars as required to be disclosed in terms of Section
134(3) (m) of the Act, read with Rule 8 of the Companies
(Accounts) Rules, 2014 are given in Annexure C forming part
of this Report.
Corporate Governance
The Company has adopted the “Reliance Group-Corporate
Governance Policies and Code of Conduct” which sets out the
systems, processes and policies confirming to the international
standards. The report on Corporate Governance as stipulated
under Regulation 34(3) read with para C of Schedule V of the
Listing Regulations is presented in a separate section forming part
of this Annual Report.
A certificate from M/s. Ashita Kaul & Associates, Practising
Company Secretary, confirming compliance to the conditions of
Corporate Governance as stipulated under Para E of Schedule V of
the Listing Regulations, is enclosed to this Report.
Whistle Blower Policy (Vigil Mechanism)
In accordance with Section 177 of the Act and the Listing
Regulations, the Company has formulated a Vigil Mechanism
to address the genuine concerns, if any, of the directors and
employees. The details of the same have been stated in the
Report on Corporate Governance and the policy can also be
accessed on the Company’s website at the link: https://www.
rinfra.com/documents/1142822/1189698/Whistle_Blower_
Policy_updated.pdf
Risk Management
The Board of the Company has constituted a Risk Management
Committee which consists of majority of independent directors
and also senior managerial personnel of the Company. The details
of the Committee and its terms of reference, etc. are set out in
the Corporate Governance Report forming part of this Report.
The Company has a robust Business Risk Management
framework to identify, evaluate business risks and opportunities.
This framework seeks to create transparency, minimize adverse
impact on the business objectives and enhances Company’s
competitive advantage. The business risk framework defines the
risk management approach across the enterprise at various levels
including documentation and reporting.
The framework has different risk models which help in identifying
risk trend, exposure and potential impact analysis at a Company
level as also separately for business segment. The risks are assessed
for each project and mitigation measures are initiated both at the
project as well as at the corporate level. More details on Risk
Management indicating development and implementation of
Risk Management policy including identification of elements of
risk and their mitigation are covered in Management Discussion
and Analysis section, which forms part of this Report.
Compliance with the provisions of Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013
The Company is committed to upholding and maintaining the
dignity of women employees and it has in place a policy which
provides for protection against sexual harassment of women at
work place and for prevention and redressal of such complaints.
During the year under review, no such complaints were received.
The Company has also constituted an Internal Compliance
Committee under the sexual harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
Corporate Social Responsibility
The Company has constituted Corporate Social Responsibility
(CSR) Committee in compliance with the provisions of Section
135 of the Act read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014. The CSR Committee
has formulated a CSR Policy indicating the activities to be
undertaken by the Company. The CSR policy may be accessed
on the Company’s website at the link: https://www.rinfra.com/
documents/1142822/1182645/RInfra-CSR-Policy.pdf.
The CSR Committee of the Board consist of Ms. Ryna Karani as
Chairperson, Shri S S Kohli, Shri K Ravikumar and Shri Punit Garg as
the Members.The disclosure with respect to CSR activities forming
part of this Report is given as Annexure D.
Order, if any, passed by the regulator or courts or tribunals
No orders have been passed by the Regulators or Courts or
Tribunals impacting the going concern status of the Company
and its operations.
Internal Financial Controls and their adequacy
The Company has in place adequate internal financial controls
with reference to financial statement, across the organization.
The same is subject to review periodically by the internal audit
cell for its effectiveness. During the financial year, such controls
were tested and no reportable material weakness in the design
or operations were observed.
Business Responsibility Report
Business Responsibility Report for the year under review as
stipulated under the Listing Regulations is presented under
separate section forming part of this Annual Report.
Acknowledgements
Your Directors would like to express their sincere appreciation
for the co-operation and assistance received from shareholders,
debenture holders, debenture trustees, bankers, financial
institutions, government authorities, regulatory bodies and other
business constituents during the year under review. Your Directors
also wish to place on record their deep sense of appreciation for
the commitment displayed by all executives, officers and staff.
For and on behalf of the Board of Directors
Place: Mumbai
Date : May 08, 2020
Anil Dhirubhai Ambani
Chairman
13
Reliance Infrastructure Limited Directors’ Report
Policy on Appointment and Remuneration of Directors, Key Managerial Personnel and Senior Management Employees
Annexure – A
1
Objective
1.1 The remuneration policy aims at achieving the following
specific objectives:
1.1.1 To attract highly competent talent to sustain and
grow the Company’s business;
1.1.2 To build a high performance culture by aligning
individual performance with business objectives and
infusing performance differentiation;
1.1.3 To motivate and retain high performers and critical
talent at all levels.
2
Scope and Coverage
2.1 Remuneration policy covers Directors, Key Managerial
Personnel (KMPs) and on-roll employees of Reliance
Infrastructure Limited and
its Subsidiaries/Special
Purpose Vehicles (SPVs), who are categorized into Top
Management Cadre (TMC) and Senior Management
Cadre (SMC).
3
Policy
3.1 Non-Executive Directors:
The Non executive directors shall be paid sitting fees
for attending the meetings of the Board and of the
Committees of which they may be Members, and
commission within regulatory limits approved by the
shareholders. The commission for respective financial
year has to be recommended by the Nomination and
Remuneration Committee and approved by the Board.
3.2 Key Managerial Personnel and Senior Management
3.2.1 Remuneration, i.e. Cost-to-Company (CTC) consists
of two broad components; Fixed and Variable.
3.2.2 Fixed portion comprises Base pay and Choice pay
components.
3.2.5 Variable pay termed as Performance Linked Incentive
(PLI) comprises a pre-determined amount, the
payout of which is based on the composite score
achieved by the Individual and business during the
relevant performance year.
3.2.6 Annual Increment is linked to individual performance
ratings and is also guided by business performance,
macro-economic
industry /business
outlook, etc.
indicators,
3.2.7 Individual and Business performance is assessed
through a robust annual performance appraisal
process, the key features of which are as follows:
•
•
•
•
•
Formulation of well articulated Businesswise
AOP
Setting of Individual KRAs and KPIs in
alignment with Business AOP
Online process for goal setting, self evaluation
and assessment by managers
Normalisation of individual ratings as per
prescribed norms
Business Performance evaluation with
higher emphasis on achievement against key
financial and project completion parameters.
4
Retention Features as part of Compensation Package
4.1 Based on the organizational need for retaining high
performing/critical executives, certain retention
features may be rolled out from time to time as
part of the overall compensation package. These
may take form of Retention Bonuses (RBs); Special
Monetary Programs (SMPs), Long-term Incentives
(LTIs), etc.
4.2 While attracting talent in critical positions also such
retention features could be incorporated as part of
the compensation package.
3.2.3 Base Pay includes Basic Pay and Contribution
towards Retiral Benefits.
5
Modification/Amendment:
3.2.4 Choice Pay includes basket of allowances, which
executive has the flexibility to choose from, based
on his individual needs and tax planning.
5.1 This policy shall be reviewed periodically based
on benchmarking/business requirement/industry
relevance.
14
Reliance Infrastructure Limited
Directors’ Report
Form No. MR-3
Secretarial Audit Report
For the financial year ended March 31, 2020
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Annexure – B
To,
The Members,
Reliance Infrastructure Limited
Reliance Centre, Ground Floor
19, Walchand Hirachand Marg,
Ballard Estate,
Mumbai 400001
We have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by Reliance Infrastructure Limited
(hereinafter called “the Company”). Secretarial Audit was
conducted in a manner that provided us a reasonable basis for
evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.
Based on our verification of Company’s books, papers, minute
books, forms and returns filed and other records maintained by
the company and also the information provided by the Company,
its officers, agents and authorised representatives during the
conduct of secretarial audit, we hereby report that in our opinion,
the Company has, during the audit period covering the financial
year ended on March 31, 2020 (‘Audit Period’) complied with
the statutory provisions listed hereunder and also that the
Company has generally followed Board-processes and required
compliance-mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company for
the financial year ended on March 31, 2020 according to the
provisions of:
(c)
(d)
(e)
(f)
(g)
(h)
(i)
The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2018; (Not Applicable to the Company during the
Audit Period)
The Securities and Exchange Board of India (Shares
Based Employee Benefits) Regulations, 2014;(Not
Applicable to the Company during the Audit Period)
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
The Securities and Exchange Board of India
(Registration to an issue and Share Transfers
Agents) Regulations, 1993 regarding the Act and
dealing with client; (Not Applicable to the Company
during the Audit Period)
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009;
(Not Applicable to the Company during the Audit
Period)
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998; (Not
Applicable to the Company during the Audit Period)
The Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Listing Agreements entered
into by the Company with BSE Limited, National
Stock Exchange of India Limited and London Stock
Exchange.
The Companies Act, 2013 (‘the Act’) and the rules made
thereunder;
We have also examined compliance with the applicable clauses
of the following;
The Securities Contracts (Regulation) Act, 1956(‘SCRA’)
and the rules made thereunder;
I.
The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder;
Foreign Exchange Management Act, 1999 and the rules
and regulations made thereunder to the extent of Foreign
Direct Investment and Overseas Direct Investment and
External Commercial Borrowings;
(v)
The Electricity Act, 2003 and amendments made
thereunder;
(vi) The following Regulations and Guidelines prescribed under
the Securities and Exchange Board of India, 1992 (‘SEBI
Act’):
(a)
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b)
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
The Secretarial Standards issued by the Institute of
Company Secretaries of India for General Meetings,
Board and Committee Meetings (i.e. Audit Committee,
Nomination and Remuneration Committee, Stakeholder
Relationship Committee, Corporate Social Responsibility
Committee and Risk Management Committee).
II.
Listing Agreements entered into by the Company with
BSE Limited, National Stock Exchange of India Limited
and London Stock Exchange.
During the period under review, the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above except the following;
There was a delay in filing of Audited financial results for the
Quarter and Financial year ended March 31, 2019 pursuant to
Regulation 33 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations,
2015, due to the postponement of meeting of the Board of
Directors of Reliance Power Company, an Associate Company.
15
(i)
(ii)
(iii)
(iv)
Reliance Infrastructure Limited
Directors’ Report
We further report that:
The Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition of
the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the
Act.
Adequate notice is given to all Directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance and a system exists for seeking and
obtaining further information and clarification on the agenda
items before the meeting and for meaningful participation at
the meeting. The decisions at Board Meetings and Committee
Meetings are carried out and recorded in the minutes of
meetings of the Board of Directors and Committee of the Board
accordingly.
We further report that, there are adequate systems and processes
in the Company commensurate with the size and operations of
the Company to monitor and ensure compliance with applicable
laws, rules, regulations and guidelines.
We further report that, during the audit period following Special
Resolutions were passed pursuance of the above referred laws,
rules, regulations and guidelines as applicable:
i.
ii.
iii.
iv.
v.
Appointment of Shri Punit Garg as an Executive Director;
Re-appointment of Ms. Ryna Karani as an Independent
Director;
Re-appointment of Shri S. S. Kohli as an Independent
Director;
Re-appointment of Shri K. Ravikumar as an Independent
Director;
Private placement of Non-Convertible Debentures (NCDs)
and/or other Debt Securities
For Ashita Kaul & Associates
Company Secretaries
Proprietor
FCS 6988/ CP 6529
Date : May 8, 2020
Place : Thane
UDIN : F006988B000216681
16
Reliance Infrastructure Limited Directors’ Report
Disclosure under Section 134(3)(m)of the Companies Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014
Annexure-C
A.
Conservation of Energy
The steps taken or impact on conservation of energy
The steps taken by the company for utilizing alternate
sources of energy
The capital investment on energy conservation equipments
B.
Technology Absorption, Adoption and Innovation
(i) The efforts made towards technology absorption
(ii) The benefits derived like product improvement, cost
reduction, product development or import substitution
(iii) In case of imported technology (imported during the
last three years reckoned from the beginning of the
financial year)
a. The details of technology imported
b. The year of import
c. Whether technology has been fully absorbed
d.
If not fully absorbed, areas where absorption has
not taken place and the reasons thereof
(iv) The expenditure incurred on Research and
Development
The Company is making all efforts to conserve energy by
monitoring energy costs and periodically reviewing the
consumption of energy. It also takes appropriate steps to
reduce the consumption through efficiency in usage and
timely maintenance / installation/ upgradation of energy
saving devices.
Various steps taken by the company and its subsidiaries
are provided in detail in the Business Responsibility Report
which is part of this Annual Report.
The Company uses latest technology and equipments in
its business. Further the Company is not engaged in any
manufacturing activity.
The Company has not spent any amount towards research
and developmental activities and has been active in
harnessing and tapping the latest and best technology in
the industry.
C.
Foreign Exchange Earnings and Outgo
a.
b.
Total Foreign Exchange Earnings
Total Foreign Exchange Outgo
` 48.36 crore
` 56.61 crore
17
Reliance Infrastructure Limited
Directors’ Report
THE ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITIES (CSR) ACTIVITIES
Annexure -D
1.
2.
A brief outline of the Company’s CSR policy including overview of projects or programmes proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programmes
RInfra as a responsible corporate entity undertakes appropriate Corporate Social Responsibility (CSR) measures having positive
economic, social and environmental impact to transform lives and to help build more capable & vibrant communities by
integrating its business values and strengths. In its continuous efforts to positively impact the society, especially the areas
around its sites and offices, the Company has formulated guiding policies for social development, targeting the inclusive
growth of all stakeholders under nine specific categories including Promoting education, environment sustainability, economic
empowerment, rural development, health care and sanitation.
Our CSR policy is placed on our website at the link –
https://www.rinfra.com/documents/1142822/1182645/RInfra-CSR-Policy.pdf
The composition of the CSR Committee
a. Ms. Ryna Karani (Chairperson)
b.
c.
d.
Independent Director
Independent Director
Independent Director
Executive Director
Shri S S Kohli
Shri K Ravikumar
Shri Punit Garg
3. Average Net Profit of the Company for last three financial years
Nil (Loss of ` 37.97 crore)
4. Prescribed CSR Expenditure (2 per cent of the average net profit)
Not applicable in view of the losses
5. Details of CSR spent during 2019-20
Total Amount spent for the financial year
Amount unspent, if any
a.
b.
c. Manner in which the amount is spent during the financial year is detailed below:
Not Applicable
Not Applicable
:
:
1.
2.
3.
1.
Sr
No.
2.
CSR project or
activity identified
3.
Sector in which the
Project is covered
4.
Projects or
Programs
1.Local area or
others-
2.State /
district
5.
Amount
outlay
(budget)
project or
program
wise
Daycare Oncology
Centres
Health Care
Maharashtra
Nil
6.
Amount
spent on the
projects or
programs
1.Direct
expenditure
2.Overheads
Nil
7.
Cumulative
spend
upto the
reporting
period*
116.85
(` in Crore)
8.
Amount spent:
Direct/ through
implementing agency
Through Mandke
Foundation, a non-profit
Organisation specialized
in the provision of
health care
Direct
Activities on
Education and Rural
Transformation
Other Activities
thru Mumbai
Power Business**
Promoting
education, rural
development
Promoting
education,
environment
Sustainability, rural
development and
Health Care
Goa and
Bhubaneshwar,
Orissa
Mumbai and
Dahanu,
Maharashtra
Nil
Nil
Nil
Nil
0.50
9.11
Direct
Total
Nil
Nil
126.46
* Includes the amount spent during the financial year 2014-15 to 2018-19
** Not applicable for the current year due to sale of Company’s Mumbai Power Business
6.
In case the Company has failed to spend the 2 per cent of the Average Net Profit of the last three financial years or any
part thereof, the Company shall provide the reasons for not spending the amount in its Board report.
As there are no average net profits for the Company during the previous three financial years, no funds were set aside and
spent by the Company towards Corporate Social Responsibility during the year under review.
7. A Responsibility Statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance
with CSR objectives and policy of the Company.
The CSR Committee hereby confirms that the implementation and monitoring of the CSR Policy is in compliance with the CSR
objectives and the Policy of the Company.
Date: May 8, 2020
18
Punit Garg
Executive Director and Chief Executive Officer
Ryna Karani
Chairperson
Reliance Infrastructure Limited
Management Discussion and Analysis
Forward Looking Statements
Fiscal Review
Statements in this Management Discussion and Analysis of
financial condition and results of operations of the Company
describing the Company’s objectives, expectations or predictions
may be forward looking within the meaning of applicable
securities laws and regulations. Forward-looking statements
are based on certain assumptions and expectations of future
events. The Company cannot guarantee that these assumptions
and expectations are accurate or will be realised. The Company
assumes no responsibility to publicly amend, modify or revise
forward-looking statements on the basis of any subsequent
developments, information or events. Actual results may differ
materially from those expressed in the statement. Important
factors that could influence the Company’s operations include
determination of tariff and such other charges and levies by the
regulatory authority, changes in Government regulations, tax
laws, economic developments within the country and such other
factors globally.
The financial statements of the Company are prepared under
historical cost convention, on accrual basis of accounting and in
accordance with the provisions of the Companies Act, 2013 (the
“Act”) and comply with the Indian Accounting Standards specified
under Section 133 of the Act. The management of Reliance
Infrastructure Limited (“Reliance Infrastructure” or “RInfra” or “the
Company”) has used estimates and judgments relating to the
financial statements on a prudent and reasonable basis, in order
that the financial statements reflect in a true and fair manner, the
state of affairs and profit for the year.
The following discussions on our financial condition and result of
operations should be read together with our audited consolidated
financial statements and the notes to these statements included
in the annual report.
Unless otherwise specified or the context otherwise requires, all
references herein to “we”, “us”, “our”, “the Company”, “RInfra”,
“Reliance” or “Reliance Infrastructure” are to Reliance Infrastructure
Limited and its subsidiary companies and associates.
About Reliance Infrastructure Limited
Reliance Infrastructure Limited is one of the largest infrastructure
companies, developing projects through various Special Purpose
Vehicles (SPVs) in several high growth sectors such as power,
roads and metro rail in the infrastructure space, the defence
sector and Engineering and Construction (E&C) sector. Reliance
Infrastructure is ranked amongst India’s leading private sector
companies on all major financial parameters, including assets,
sales, profits and market capitalization. The highlights of the
consolidated performance of the Company during 2019-20 are
furnished hereunder:
•
•
•
•
•
Total Income of ` 22,376 crore (US$ 2.97 billion)
Net Profit of ` 771 crore (US$ 102.36 million)
EBITDA of ` 6,694 crore (US$ 888.69 million)
Cash profit of ` 2,082 crore (US$ 276.40 million)
Net Worth of ` 9,792 crore (US $ 1.30 billion)
In order to optimise shareholder value, the Company continues
to focus on in-house opportunities as well as selective large
external projects for its E&C and Contracts Division. The E&C and
Contracts Division (the E&C Division) order book position is at
` 27,550 crore (US$ 3.66 billion).
The Financials of the Company have been prepared in accordance
with the Companies (Indian Accounting Standards) Rules 2015
(IndAS) prescribed under Section 133 of the Act.
The Company’s total consolidated income for the year ended
March 31, 2020 was ` 22,376 crore (US$ 2.97 billion) as
compared to ` 21,797 crore (US$ 2.89 billion) in the previous
financial year.
The total income includes earnings from sale of electrical energy
of ` 17,336 crore (US$ 2.30 billion) as compared to ` 16,300
crore (US$ 2.16 billion) in the previous financial year.
During the year, interest expenditure decreased to ` 2,396
crore (US$ 318.09 million) as compared to ` 2,581 crore
(US$ 342.65 million) in the previous year.
The capital expenditure during the year was ` 1,240 crore
(US$ 164.62 million), incurred primarily on modernizing and
strengthening of the transmission and distribution network as
also on road projects.
The total PPE as at March 31, 2020 stood at ` 9,453 crore
(US$ 1.26 billion).
With a net worth of about ` 9,792 crore (US$ 1.30 billion),
Reliance Infrastructure is ranked as one of the top performing
Indian Company amongst private sector infrastructure companies
of India.
Details of significant changes in Key Financial Ratios and
Return on Networth
Pursuant to sale of the Company’s Mumbai Power Business and
also one time exceptional loss mainly due to impairment during
the previous year, the key financial ratios and return on net worth
of the previous year are not comparable with the current financial
year.
Monetisation of Assets and Debt Reduction
The Company has signed a binding Share Purchase Agreement
with Cube Highways and Infrastructure III Pte Ltd. for its 100%
stake in Delhi Agra (DA) toll road. The Company also plans to
monetize its Reliance centre Office located in Santacruz East,
Mumbai by way of long-term lease. Further, The Company has
won major arbitration awards including Arbitration award of
` 350 crore, including interest, against Government of Goa and
an Award of ` 1,250 crore against Damodar Valley Corporation
(DVC), a Government of India undertaking. The entire proceeds
of the above transactions would be utilized for debt reduction.
Operational and Financial Performance of Businesses
We present here under detail report of various business divisions
during the year 2019-20:
A.
The E&C Business
The E&C Division is a leading service provider of integrated
design, engineering, procurement and project management
services for undertaking turnkey contracts including coal-
based thermal projects, gas-power projects, metro, rail
and road projects.
The Division is equipped with the requisite expertise and
experience to undertake E&C projects within the budgeted
cost and time frame, ensuring customer satisfaction
in terms of quality and workmanship. The Division has
constructed various Greenfield projects in medium, large
and mega categories over the last two decades.
19
Reliance Infrastructure Limited
Management Discussion and Analysis
Following major projects are currently under execution by the
E&C Division.
a.
Bithnok TPP (1x250 MW) & Barsingsar TPSE (1x250
MW), Rajasthan (NLC)
RInfra has won a prestigious E&C order for ` 3,675 crores
from NLC India Limited for setting up two lignite based
CFBC thermal power projects with a capacity of 250 MW
each on turnkey basis.
b.
2x800 MW Uppur Thermal Power Project (Balance of
Plant Packages), Tamil Nadu
RInfra has won an E&C order from TANGEDCO for Design,
Engineering, Manufacture, Supply, ETC of BOP Package
and allied Civil Works for 2 x 800 MW Thermal Power
project in the state of Tamil Nadu.
c.
Design & E&C of Common Services Systems, Structures &
Component for Kudankulam Nuclear Power (KKNP)-3&4
E&C contract for common services systems, structures and
components at KNPP Unit 3 & 4 from Nuclear Power
Corporation Ltd (NPCIL).
d. Mumbai Metro Line 4-Packages 8, 10 & 12
E&C contract for elevated viaduct for Mumbai Metro
Rail Project (Wadala-Kasarvadavali 3 packages of Line-4
Corridor: CA-08 length 6.4 Km from Bhakti Park to Amar
Mahal Junction,CA-10 length 6.7 Km from Gandhi Nagar
to Sonapur & CA-12 length 6.8 Km from Kapurbawdi to
Kasarvadavali). This project is a joint venture of RInfra with
Astaldi.
e.
Versova- Bandra Sea Link
E&C contract for Design and Construction of Versova-
Bandra Sea Link including development of connectors
and improvement of proposed junction from Maharashtra
State Road Development Corporation (MSRDC). This
project is a joint venture of RInfra with Astaldi.
f.
PS Toll Road
National Highway Authority of India (NHAI) has awarded
the contract
for development, maintenance and
management of Pune and Satara. The existing lane is 4
lane road which has to be widened to 6 lane covering
length of 140 Km. RInfra is executing the contract for
construction of PS Toll Road. Overall, 97.53% progress
has been achieved.
g.
DA Toll Road
NHAI has awarded the contract for development,
maintenance and management of Delhi Agra section of
National Highway (NH)-2 covering a length of 180 Km.
RInfra is executing the contract for construction of DA
Road. Overall, 99% progress has been achieved.
h.
Vikkaravandi to Pinalur-Sethiyahopu section of NH-
45C in the State of Tamil Nadu
The Project is awarded by NHAI for Improvement &
Augmentation of Four Laning from Vikkaravandi to
Pinalur-Sethiyahopu section of NH-45C in the State of
Tamil Nadu under NHDP –IV. The length of road is 66 Km.
i.
Six laning of highway from Aurangabad to Bihar–
Jharkhand Border, Bihar
RInfra has won an E&C order from NHAI for “Six Laning
20
of Highway from Aurangabad to Bihar–Jharkhand Border
(Chordaha) section of NH-2 from 180.000 Km to
249.525 Km in the state of Bihar under NHDP Phase-V”.
The length of six laning of highway is 69.525 Km.
j.
Six laning of highway from Bihar-Jharkhand Border to
Gorhar, Jharkhand
RInfra has won an E&C order from NHAI for “Six Laning
of Highway from Bihar-Jharkhand Border (Chordaha) to
Gorhar section of NH-2 from 249.525 Km to 320.810
Km in the state of Jharkhand under NHDP Phase-V”. The
length of six laning of highway is 71.285 Km.
k.
Four laning and construction of twin tube six-lane
tunnel at Kashedighat, Maharashtra
RInfra in JV with CAI-Ukraine has won an E&C order
from MoRTH for “Rehabilitation and Upgradation of
KashediGhat section of NH-17 (New NH-66) to four
lanes with paved shoulders from existing 148.0 Km to
166.600 Km including construction of twin tube six-lane
tunnel in the state of Maharashtra on E&C Mode under
NHDP-IV“.
l.
Nagpur Mumbai Super communication expressway –
Package 7
B.
a.
RInfra has won an E&C order from Maharashtra State Road
Development Corporation (MSRDC) for construction of
access controlled Nagpur - Mumbai Super Communication
Expressway (Maharashtra Samruddhi Mahamarg) in the
state of Maharashtra on E&C mode for package 07, from
296.000 Km to 347.190 Km (section - village Banda to
village Sawargaon mal) in district Buldhana.
IT Projects
Bihar State Power Holding Co. Ltd (BSPHCL)
RInfra has been appointed as IT implementing agency
(ITIA) under part-A of R-APDRP to provide solutions for
17 modules covering project area of 71 towns in Bihar.
As on date, all the 67 towns (excluding 4 DF towns) have
been declared live, Facility Management Support (FMS)
for 5 years has already begun and Third Party Independent
Evaluation Agency (TPIEA) audit has successfully been
completed. Utility has closed the project with PFC for
conversion of loan to grant. RInfra has won the arbitration
award for the issue related to interpretation of licence.
Bihar State Power (Holding) Company Ltd. & RInfra as an
SI (System Integrator) have been declared as winners of
the “SAP ACE award 2016” under the category “Nation
Building through SAP Solution” in recognition of exemplary
innovative solution for the implementation of “SAP IS-U
and mobile phone- based spot billing” for Government of
India’s Restructured Accelerated Power Development and
Reforms Programme (R-APDRP) in Bihar State.
b.
Chhattisgarh State Power Distribution Co. Ltd (CSPDCL)
RInfra has been appointed as IT implementing agency
(ITIA) under part-A of R-APDRP to provide solutions
for 14 modules covering project area of 20 towns in
Chhattisgarh. All the 20 towns in scope have been
declared live and currently we are in the 5th year of
Facility Management Support (FMS). TPIEA (Third Party
Independent Evaluation Agency) Audit is also successfully
completed.
Reliance Infrastructure Limited
Management Discussion and Analysis
C.
Delhi Power Distribution Companies
The Company has two major subsidiary companies i.e.
BSES Rajdhani Power Limited (BRPL) serving South and
West Delhi and BSES Yamuna Power Limited (BYPL)
serving East and Central Delhi (Delhi Discoms).
During the year FY2019-20, Delhi Discoms registered an
aggregate income of ` 17,206 crore (BRPL - ` 11,128
crore and BYPL - ` 6,079 crore) against ` 16,244 crore
in the previous year (BRPL- ` 10,335 crore and BYPL -
` 5,909 crore), which is an increase of 5.9 percent over
last year. Overall aggregate power purchase cost during
the year FY2019-20 increased to ` 11,994 crore (BRPL -
` 8,142 crore and BYPL - ` 3,852 crore) from ` 11,406
crore (BRPL - ` 7,558 crore and BYPL - ` 3,849 crore) in
the previous year, an increase of 5.2 per cent.
Other operating expenses are in line with cost control
objectives of Discoms, which were achieved by following
stringent budgetary control, rigorous monitoring of all
expenses and commercial processes. The aggregate
capital expenditure incurred during the year amounted to
` 945 crore (BRPL - ` 677 crore and BYPL - ` 268 crore)
for up-gradation, strengthening and modernization of the
distribution system. The aggregate net block including
Capital Work in Progress stood at ` 7,065 crore (BRPL -
` 4,672 crore and BYPL - ` 2,392 crore).
The total number of customers in both Delhi Discoms
grew by 3.2 per cent to 43.8 lacs (BRPL - 26.5 lacs and
BYPL - 17.3 lacs) in FY2019-20 from 42.5 lacs (BRPL-
25.6 lacs and BYPL - 16.9 lacs) in FY2018-19. During
the year, Delhi Discoms maintained the System Reliability
of over 99.9 per cent. The Transmission and Distribution
(T&D) loss is further reduced to 7.20 per cent and 7.31
per cent for BRPL and BYPL respectively in FY2019-20.
During the year, the Delhi Discoms serviced the peak
demand of 4,864 MW which is 4.8% up from previous
year peak demand of 4,642 MW.
D.
a.
BRPL
BYPL
BSES
2019-20
2018-19
Growth
2019-20
2018-19
Growth
2019-20
2018-19
Growth
3,211
3,081
4.2%
1,653
1,561
5.9%
4,864
4,642
4.8%
Key Regulatory Updates
Delhi Electricity Regulatory Commission (DERC) vide
its Tariff Order dated 31.07.2019 had approved True-
Up of FY 2017-18 and approved tariff schedule for FY
2019-20.
The key highlights of the Tariff Order include
•
•
•
•
Rationalization of tariff by decreasing the Fixed
Charges and increasing the Energy Charges
Retaining Pension trust surcharge of 3.80 %
Retaining 8% RA Surcharge towards recovery of
accumulated deficit
Implementation of part Appellate Tribunal
Judgments
Power Transmission Business
Parbati Koldam Transmission Company Limited
(PKTCL):
PKTCL is a Joint Venture company of Reliance Infrastructure
Limited (74% Stake) and Power Grid Corporation of India
Limited (26% Stake). PKTCL has been entrusted vide
license granted by CERC for construction, operation and
maintenance of 400 kV Transmission Lines evacuating
power from Power Plants situated in Himachal Pradesh
namely 800 MW Parbati- II and 520 MW Parbati-III
Hydro Electric Power Plants (HEP) of NHPC, 800 MW
Koldam HEP plant of NTPC and 100 MW Sainj HEP
of HPPCL having a total line length of 457 circuit kms
connecting these power plants to the northern grid. The
transmission lines traverse through treacherous hilly terrains
of Himalayan Mountains and operation & maintenance of
transmission lines in such terrains is extremely difficult and
full of unprecedented events, yet PKTCL has been able
to maintain average annual availability of 99.88% for all
its assets. PKTCL has maintained AA+/ Stable Rating on
Company’s Term Loan.
Consequent to orders received from CERC in long pending
Review Petitions filed against NTPC, PKTCL has been
awarded complete tariff to be recovered from NTPC
against the earlier order wherein only IDC & IEDC were
allowed. After deliberated discussions PKTCL received
revised availability certificates from NRPC for trippings
encountered due to Force Majeure event (2018-19
period), resulting in release of held-up revenue of ` 1.80
crores. PKTCL has carried out CSR to the tune of approx.
` 2.50 crores which includes installation of solar street
lights in various villages en-route PKTCL transmission line
in Punjab and Himachal Pradesh, setting up of Open Gyms
in coordination with state and district administration,
distribution of medical equipment
in government
hospitals, distribution of furniture in Govt. Schools of
Punjab and Himachal Pradesh, providing study material
and development of computer labs for under privileged
children through various NGOs, donation to PM care for
relief in COVID-19 etc.
b.
North Karanpura and Talcher II Transmission
The North Karanpura Transmission Project is on build, own,
operate and maintain basis which involves construction
of three 765 kV transmission lines of length of about
800 Km and two 400 kV transmission lines of length
of about 240 Km. These lines would connect Lucknow,
Bareilly, Meerut, Agra, Gurgaon, Sipat and Seoni. The
project also involves construction of one 400/220
kV GIS substation at Gurgaon. Talcher II Transmission
Company Limited is on build, own, operate and maintain
basis which involves construction of three 400 kV double
circuit transmission lines of 670 Km. These lines would
connect Talcher, Rourkela, Behrampur and Gazuwaka.
One substation of 400/220 kV at Behrampur is also in
the scope of execution of the project. Because of the
delay in receipt of enabling regulatory clearances to start
construction in both the above projects, the Companies
21
Reliance Infrastructure Limited
Management Discussion and Analysis
had filed a petition with CERC seeking compensation
based on force majeure events and relief measures in
terms of tariff escalation and time extension for project
completion. The CERC order in the matter was challenged
by the Companies in Appellate Tribunal for Electricity
(APTEL), which was further challenged by beneficiaries in
the Hon’ble Supreme Court. The case is sub-judice and
is currently with the Hon’ble Supreme Court. Another
petition filed by Power Grid Corporation of India Limited
against license revocation order of CERC was disposed off
by APTEL and the Companies was directed to go back to
CERC for a fresh treatment - including (but not limited
to) the aspect of the very necessity of the project. NKTCL
filed a petition in CERC for redressal of grievances and
a stay order for no coercive action against the BGs has
been granted by CERC. The CERC has restrained the LTTC
vide order dated 19th Feb 2019 and 12th March 2020
from taking any coercive steps including encashment of
BG. Next Hearing was due on 19th March 2020, but due
to Covid -19 outbreak, further listing of the petition is
awaited.
E.
Roads Projects
All road projects are revenue operational which are majorly
urban centric roads in high traffic density corridors and on
Golden Quadrilateral spread across six states in India.
a. NK Toll Road Limited
NK Toll Road is engaged in widening of 2-lane to 4-lane
portion from 258.65 Km (End of Namakkal Bypass) to
292.60 Km (Start of Karur Bypass), covering 33.48 Km
on the NH 7 in Tamil Nadu. Moreover, the improvement,
operation and maintenance of 248.63 Km (start of the
flyover on Namakkal Bypass) to 258.65 Km (end of
Namakkal Bypass) on the NH 7, on a BOT basis. The
project commenced commercial operations in August
2009.
b.
DS Toll Road Limited:
The project stretch of 53 Km long 4-lane dual carriageway
of 15 stretches on BOT and annuity basis, which
included, inter alia, the package for design, construction,
development, finance, operation and maintenance of
373.275 Km (Start of flyover at Dindigul bypass) to
426.6 Km (Samyanallore) on NH-7 in Tamil Nadu, is in
operation since September 2009.
c.
TD Toll Road Private Limited
The project stretch of 87 Km long 4 lane NH 45 road is
in operation since January 2012 and provides connectivity
to Trichy and Dindigul in Tamil Nadu.
d.
TK Toll Road Private Limited
TK Toll Road Project was for strengthening and
maintenance of the existing carriageway from 135.80 Km
to 218.00 Km, on the Trichy - Karur section of the NH67
in Tamil Nadu, on a BOT basis. The project commenced
commercial operations in February 2014 for 61 Km long
4 lane NH 67 road.
22
e.
SU Toll Road Private Limited
SU Toll Road project was envisaged to strengthen and
maintain the existed carriageway from 0.31 Km to
136.67 Km, on the Salem – Ulundurpet section of NH
68 in the State of Tamil Nadu and widen the roads from
two to four lanes, on a BOT basis. The project commenced
commercial operations in July 2012 and 3rd toll plaza was
put in operation in September 2013. The project stretch
is a 136 Km long 4 lane NH 68 road from Salem to
Ulundurpet in Tamil Nadu.
f.
GF Toll Road Private Limited
GF was engaged to upgrade the existing road from 0.00
Km to 24.31 Km on the section of the Gurgaon–Faridabad
road, 0.00 Km to 6.10 Km of the section of the MCF
road, 0.00 Km to 3.10 Km of the section of the Crusher
Zone road, 0.00 Km to 28.58 Km of the section of the
Ballabhgarh – Lukhawas junction road and 0.00 Km to
4.10 Km of the section of the Pali – Bhakri road.
g.
JR Toll Road Private Limited
JR Toll Road project was set up with the objective to
design, build and operate 52.65 Km long 4 lane NH11
road connecting Reengus in northern part of Rajasthan to
the State’s Capital, Jaipur.
h.
HK Toll Road Private Limited
HK Toll Road project was envisaged for Strengthening and
widening of the 59.87 Km stretch (from 33.130 Km to
93.000 Km) of the Hosur – Krishnagiri on NH – 7 from
existing 4-lanes to 6-lanes as BOT (Toll) on design, build,
finance, operate and transfer (DBFOT) pattern in Tamil
Nadu.
i.
PS Toll Road Private Limited
PS Toll Road project was envisaged to expand the 725.00
Km to 865.35 Km, Pune – Satara section of the NH 4,
which in turn forms part of the Golden Quadrilateral, in
Maharashtra, on a DBFOT basis. The project was set up
with the objective to design, build and operate 140 Km
long 6 lane between Pune and Satara in Maharashtra.
Tolling on the project started in October 2010.
j.
DA Toll Road Private Limited
DA Toll Road project envisaged to expand a portion of
the NH2 in Haryana and Uttar Pradesh from 20.500 Km
to 200.00 Km, widening the existing four lanes to six,
on design, build, finance, operate and transfer (DBFOT)
basis. The project was set up with the objective to design,
build and operate 180 Km long 6 lane between Delhi and
Agra in Uttar Pradesh. Tolling on this road commenced in
October 2012 and the construction work is in full swing.
F. Mumbai Metro One Private Limited (MMOPL)
The Mumbai Metro Line-1 project of the Versova-
Andheri-Ghatkopar corridor was awarded by the Mumbai
Metropolitan Region Development Authority (MMRDA)
through global competitive bidding process on Public
Private Partnership (PPP) framework to the consortium led
by the Company for 35 year period including construction
period. Due to the complex challenges of the project,
Mumbai Metro line 1 can be hailed as one of the most
prestigious infrastructure projects.
Reliance Infrastructure Limited
Management Discussion and Analysis
MMOPL, Special Purpose Vehicle for the project is in its
6th year of commercial operation and continues to provide
world class public infrastructure to city of Mumbai and
has served to more than 650 million customers from
inception. It’s a matter of pride that MMOPL crossed
the 600 million commuter mark in just 1960 days which
less than 5 years & 5 months. Currently, on weekdays an
average of over 4.39 lakh commuters per day use services
of the metro, making it the busiest metro in India and 8th
densest metro in the world.
MMOPL has continued to achieve excellence in the field
of public transport operation. It has been achieving near
100 per cent train availability and 99.9 per cent on
time performance since commercial operation. Rolling
Stock and Civil Maintenance process of Mumbai Metro
One are certified as ISO 9001. Currently, the trains
are being operated from 5:30 A.M. to midnight with a
highest frequency of 3 minutes 08 seconds in peak hours.
This year, MMOPL carried 131.53 million passengers
as against 134.04 million in the previous year, with
corresponding number of train trips of 131186 and
132789 respectively, having a mild dip in utilization, this
was due the onset of COVID-19 related disruptions from
Feb 2020 and total closure of metro Operations w.e.f.
22nd March 2020 onwards.
Mumbai Metro One has partnered with CityFlo, an App
based feeder bus service and Uber Auto for providing
last mile connectivity to commuters. MMOPL launched
MyByk, a public bike-sharing services from Jagruti Nagar
metro station with support from MMRDA, WRI & Toyota
Mobility Foundation which will encourage Mumbaikars to
shift to eco-friendly mode of transport as feeder services
which is decongest the city & reduce pollution. Out of
many commuter engagement activities, Mumbai Metro
One celebrated 150th birth anniversary of Mahatma
Gandhi as Daan Utsav & Giving Tuesday from 02-08
October 2020 where 7 national NGO’s participated with a
theme “Empowering Women & their Safety” and engaged
with more than 2.5 lakh commuters during this week long
event.
Mumbai Metro one is pushing up its non fare revenue
through major initiatives such as station branding rights
(SBR), telecom infrastructure development, retail area
development, train wraps, payment alliances etc. Station
branding rights for Ghatkopar as Vivo Ghatkopar station
and Andheri as Bank of Baroda Andheri station are
already pumping into the non fare revenue stream of the
company. During the year, station branding work of Marol
Naka station has been also successfully executed.
MMOPL has launched a new product “Unlimited Pass”
which is 1st of its kind in the Metro system which enables
commuters to access unlimited metro rides by just
adding ` 25/- to their existing monthly pass plan. This
Unlimited Pass is issued through a newly designed Metro
Rewards smart card which is a loyalty program with which
commuters can travel more, save more & earn more
points.
G.
Defence Sector
The Government of India has identified Defence sector as
a high growth area with increased focus on Manufacturing
in India. To address the current situation, where India
continues to depend on imports for nearly 70% of its
Defence hardware and in the process has become the
second largest importer of Defence hardware globally,
more policy changes are anticipated.
A shift in the intent of the Government is evident
from Defence Production Policy, on reducing import
dependence and incentivizing exports with an ambitious
target of ` 40,000 Cr of Defence export by 2025.
Changes in tax regime to promote Maintenance Repair
Overhaul (MRO) for Defence and Commercial aircraft and
introduction of new category for “Manufacture in India” in
the draft Defence Procurement Procedure 2020 are clear
indication on the resolve of the Government to achieve
self sufficiency for majority of requirements of the Indian
Armed Forces.
Continuing with this initiative, MoD has also indicated
clear preference to procure defence equipments from
Indian companies; highest procurement categorisation has
been accorded to Indigenously Designed Developed and
Manufactured (IDDM) in India.
Propelled by domestic defence spending and a growing
commercial aviation market, the Indian Defence industry
is one of the fastest growing segmented markets in
the world. India is rapidly building capabilities under the
Government “Make in India” program to emerge as a
preferred destination for indigenous manufacturing of
Defence equipments, weapon platforms, systems and
components. India has skills and competencies in areas
that include Design Engineering, IT, Artificial Intelligence,
Virtual Reality and Data Analytics, all force multipliers in
the Defence domain. This coupled with lower production
cost makes an attractive proposition for the Foreign
Original Equipment Manufacturers (OEMs).
Defence Business
In order to tap the enormous opportunities on offer, our
company created Reliance Defence Limited; a wholly
owned subsidiary of RInfra with the aim of building
capabilities and Indigenous development for Defence
and Aerospace Industry. The purpose was to align with
government initiatives such as “Manufacture in India”
and “Skill India”. Currently, we have two operational Joint
Ventures, one of the largest Defence & Aerospace Park
in Private Sector at MIHAN, SEZ and Special Purpose
Vehicles (SPV’s) that together hold 35 Industrial licenses
issued by the Department of Industrial Policy & Promotion
(DIPP)/Ministry of Commerce.
In the Aerospace field, Reliance Defence has commenced
multiple initiatives to meet the needs of both military
and civil aviation. The - Dhirubhai Ambani Aerospace &
Defence Park (DADP) is one such initiative. Located at the
SEZ at MIHAN (Multi Modal International Hub at Nagpur,
Nagpur), the long term vision is to create a comprehensive
Defence manufacturing cluster, with capability to address
all aspects of Aerospace & Defence in the Civil and
Military markets. Discussions with global majors to set up
MRO and training facilities are underway.
23
Reliance Infrastructure Limited
Management Discussion and Analysis
Reliance has partnered with Dassault Aviation through a
Joint Venture (JV) Company, Dassault Reliance Aerospace
Limited (DRAL) for its Aerospace programs. DRAL, in
operations for two years now has a strength of more
than 100 people and has successfully delivered large aero
structures for Falcon-200 business jets and components
for Rafale fighter jets. DRAL is in process of adding more
than 2,00,000 Sq Ft to its existing facility spread over
1,50,000 Sq Ft to expand its business with a target of
final assembly, integration and delivery of Falcon 2000
business jet from MIHAN facility. Indian programs, with
high level of technology transfer, have benefited the
Indian aerospace sector. Production of business jets in
India for the first time is part of this capability building
exercise.
Thales Reliance Defence Systems Limited (TRDS)
is another Joint Venture company which has been
incorporated. Scope of the project includes assembly and
testing of Airborne Radars, Electronic Warfare Suite and
integrating multiple Indian companies into global supply
chain. As on May 2020, TRDS has already carried out
successful Assembly Integration and Testing (AIT) of
airborne radar of Rafale aircraft and exported the same
to Thales facility in France. This is the first time an Indian
company has assembled the Active Electronically Scanned
Array (AESA) airborne radar.
Reliance is also executing a contract awarded by Hindustan
Aeronautics Ltd (HAL) for upgradation of Dornier-228
(Do-228) aircraft of the Indian Navy (IN) and Indian
Air Force (IAF) with state of the art digital glass cockpit.
This program is being executed in collaboration with a US
based OEM.
Dhirubhai Ambani Aerospace & Defence Park (DADP)
at MIHAN Nagpur became operational with the
commencement of commercial operations at Dassault
Reliance Aeropsace Ltd (DRAL) on April 18, 2018.
Comprising a cluster of manufacturers, DADP envisions
leading global OEMs to manufacture an array of weapons,
equipment, platforms and systems focused on meeting
the requirements of Indian Armed Forces. The project aims
to create a comprehensive eco system that will integrate
domestic content manufacturing through MSMEs and
niche segment enterprises in Aviation sector.
To address opportunities in different defence sector
and to establish JV Cos with OEMs, we have established
multiple company’s viz. Reliance Armaments Ltd, Reliance
Ammunition Ltd and Reliance SED to cater to segment
specific requirements of Small Arms, Ammunition and
Defence Electronics respectively.
Reliance Armament Ltd has received RFPs for Light
Machine Guns, Sniper Rifles and other small programs
with MHA valued at over ` 6,000 Crore over many years.
Technology will play an increasingly dominant role in
the future and accordingly, Artificial Intelligence, Virtual
Reality, Cyber security and Data Analytics will have pivotal
role in the Defence applications. These fields are not new
for us, been qualified vendors for C4ISR with MoD and
having received number of tenders for AR/ VR Simulators.
We have also presented our credentials in the field of
Artificial Intelligence and Cyber Security and are actively
looking for partners based on forthcoming programs.
These New Technologies will provides an opportunity for
us to play a significant role and complement the existing
infrastructure with the PSUs for legacy systems
H.
Airport Business
The Company through its subsidiaries were awarded lease
rights to develop and operate five brown field airports in
the State of Maharashtra at Nanded, Latur, Baramati,
Yavatmal and Osmanabad in November 2009 by the
Maharashtra Industrial Development Corporation (MIDC)
for 95 years. All five airports are fully operational.
Reliance Power Limited
Reliance Power Limited (RPower) has one of India’s largest
portfolios of private power generation and resources under
development.
The portfolio of RPower comprises of multiple sources of power
generation–coal, gas, hydro, wind and solar energy. The Company
also operates a 20 mtpa capacity coal mine in Singrauli, Madhya
Pradesh and is developing coal mines in Indonesia. RPower
currently has an operational capacity of 5,945 MW comprising
of 5,760 MW of thermal capacity and 185 MW of capacity
in renewable energy. Thermal capacity of 5760 MW operated
at PLF of 78% during FY 2019-20, exceeding the national
average PLF of 56%.The operational thermal capacities include
the 3,960 MW Sasan Ultra Mega Power Projects (UMPP) in
Madhya Pradesh – the largest integrated power plant and coal
mining project in the world. Coal for the project is being mined
from the Moher and Moher-Amlohri captive mines. Sasan UMPP
operated at highest ever Plant Load Factor(PLF) of 96 per cent
in its fifth year of full operations since its commercial operations
date, vis-a-vis previous year PLF of 95 per cent. Coal production
from Moher and Moher – Amlohri captive mines in FY 2019-
20 was 18.7million tonnes. RPower also owns and operates the
1,200 MW Rosa power plant in Uttar Pradesh and the 600 MW
Butibori power plant in Maharashtra. In the renewable energy
space, RPower operates a 40 MW photovoltaic solar plant and
100 MW thermal solar plant in Rajasthan and a 45 MW wind
farm in Maharashtra. Renewable portfolio of 185 MW operated
at availability of 98% during FY 2019-20. During the year, the
Company’s holding in Reliance Power Limited has reduced due
to invocation of pledged shares by lenders of the Company and
consequently, RPower has ceased to be the associate of the
Company.
Human Resources
In a business environment and marketplace that continuously
changes, the major competitive advantage for a leading
organization hinges upon skills, experience and engagement
with its employees. At RInfra, Human Resource (HR) drives
organizational performance by harnessing unique capabilities
of developing robust systems, processes and an engaging work
environment fostering critical skill development, improving
employee experience and enhancing employee engagement.
As a strategic enabler and business partner, HR strongly focuses
on organizational development and employee engagement to
accelerate our businesses with ability, agility and adaptability.
Innovation and alignment of HR practices with business needs
and total commitment to the highest standards of corporate
governance, performance excellence, business ethics, employee
engagement, social responsibility and employee satisfaction has
24
Reliance Infrastructure Limited
Management Discussion and Analysis
lead our organization to evolving a work environment that nurtures
empowerment, meritocracy, transparency and ownership. As on
March 31, 2020, the Reliance Infrastructure Group had nearly
5,718 employees on roll.
experienced professionals for implementing the projects within
the framework of the policies and regulations being formulated
by the Government for private sector participation in the defence
industry.
The Company’s strong foundation of policies and processes
ensures health, safety and welfare of its employees. Rigorous
practical training on safety and extensive safety measures like job
safety assessment and safe construction techniques at project
sites have been undertaken by the Company for its employees.
Throughout the year, the Company organized several medical
camps, sports and cultural activities for employees and their
families. The Company has established harmonious industrial
relations, proactive and inclusive practices with all employee
bodies
Risks and Concerns
All of the Company’s revenues including those from the E&C
division are derived from the domestic market. Over the years,
the Company has made significant investments in various
infrastructure sectors like Mumbai Metro, Roads and also in
Defence. These sectors may potentially expose the Company to
the risk of any adverse impact to the national economy and any
adverse changes in the policies and regulations. The Company
closely monitors the Government’s policy measures to identify
and mitigate any possible business risks.
In the power distribution business, the consumer tariffs are
regulated by respective State Electricity Regulatory Commissions.
Any adverse changes in the tariff structure could have an
impact on the Company. However, the Company endeavours
to achieve the highest efficiency in its operations and has been
implementing cost reduction measures in order to enhance its
competitiveness. There is also a risk of rising competition in the
supply of electricity in the licensed area of the Company. The
Company has built a large and established distribution network
that is difficult to replicate by potential competitors and shall
endeavor to provide reliable power at competitive costs, with
the highest standards of customer care to meet the threat of
competition.
Infrastructure projects are highly capital intensive, run the risks
of (i) longer development period than planned due to delay
in statutory clearances, delayed supply of equipments or non-
availability of land, non-availability of skilled manpower, etc.,
(ii) financial and infrastructural bottlenecks, (iii) execution delay
and performance risk resulting in cost escalations. The past
experience of the Company in implementing projects without
significant time overruns provides confidence about the timely
completion of these projects.
On the finance side, any adverse movement in the value of
the domestic currency may increase the Company’s liability
on account of its foreign currency denominated external
commercial borrowings in rupee terms. The Company undertakes
liability management on an ongoing basis to manage its foreign
exchange rate risks.
Risk Management Framework
The Company has a defined Risk Management policy applicable
to all businesses of the Company. This helps in identifying,
assessing and mitigating the risk that could impact the Company’s
performance and achievement of its business objectives. The
risks are reviewed on an ongoing basis by respective business
heads and functional heads across the organization.
Company have Risk Management Committee consist of
independent directors and senior managerial personnel. On
quarterly basis, the Risk Management Committee independently
reviews all identified major risks & new risks, if any and assess the
status of mitigation measures/plan.
Internal Control Systems
The internal financial controls for all the significant processes have
been identified based on the risk evaluation in the business process
and same have been embedded / implemented in the business
processes. These processes and controls have been documented.
Professional internal audit firms review the systems and processes
of the Company and is helpful in providing independent and
professional opinion on the internal control systems. The Audit
Committee of the Board reviews the internal audit reports,
adequacy of internal controls and risk management framework
periodically. These systems provide reasonable assurance that
our internal financial controls are designed effectively and are
operating as intended.
Corporate Social Responsibility
Reliance Group is committed to continue to provide essential
without interruption. During lockdown period of COVID-19:
•
•
Delhi Discoms effectively serving at full capacity to over
44 lakhs households including critical governance structure
Road business ensuring smooth transport of essential
goods with safe, secure and obstruction free roads
Apart from the above, various divisions of the Company actively
participated in several corporate social responsibility (CSR)
initiatives mainly in the areas of education, healthcare, welfare
programmes for tribal development, skill development and
training, cleanliness drive such as Swatch Bharat, promotion and
protection of environment, etc. in line with the CSR Policy of
the Company.
A few of the significant CSR interventions and initiatives were
as under:
Delhi Distribution Business
• Women Literacy Centres for literacy enhancement in low
In the E&C business, most of the ongoing projects are nearing
completion or are already completed. The Company has to
expand the E&C contracts by bidding for projects across power,
transport infrastructure, civil infrastructure, defence, etc.
In defence business, the Company through its Special Purpose
Vehicle (SPV) has received licences for production of defence
equipment under the aegis of ‘Make in India’ initiative of the
Government. The Company faces significant concentration risks
as the Government of India is the sole customer for most of
the defence equipments initially. The Company has recruited
•
•
•
•
income residential clusters
Vocational Training Centres to improve livelihood of
residents
Health care including eye care camps, medical camps,
blood donation, tobacco de-addiction etc.
Renovation of toilets in Government schools and water
ATM
Energy conservation awareness programs in the schools,
tree plantation in government schools and CRPF camps
25
Reliance Infrastructure Limited Management Discussion and Analysis
•
Relief Work related with Covid-19: Delhi Discoms
complimented the Government’s efforts through
o
o
o
Distribution of face masks, sanitizers, disinfectant
solutions and soaps to the needy
Distribution of dry rations (rice, flour, pulses, cooking
oil etc.) to poor people
Providing PPE kits (Personal Protection Equipments)
to the doctors and para-medical professions
Roads Business
•
•
•
COVID 19: The unprecedented crisis caused by the global
pandemic, impacted our Citizens and shattered many
livelihoods. The Roads Business was in the frontline of
providing support to the people impacted and distribution
of food to needy along the stretch of the toll plaza was
undertaken. Along with this, to ensure that our frontline
warriors of security were safe and secure, distribution of
PPE equipments to Police officers near the toll plazas was
undertaken.
Swachh Bharat Abhiyan: Cleanliness drives were
conducted around the company plant and offices and the
neighbouring localities with an objective to create a clean
and healthy workplace. The roads business toll plazas and
project highway inculcated the concept of cleanliness
and hygiene by putting Placards and Signage’s in Public
areas for not spitting, littering, placements of dustbins,
maintenance of toilets and way side amenities / user
facility to encourage commuters to use them and not to
spoil the Highway or Toll Plaza area.
Beautification
Green Highways: The Union Ministry of Road Transport
and Highways has framed the Green Highways (Plantation,
Transplantation,
and Maintenance)
Policy-2015 with a vision to develop eco-friendly
National Highways with participation of concerned
stakeholders. Under this Policy, we have undertaken
plantation and landscaping work activities in operational
projects. For the projects under development, the avenue
plantation and median plantation are being done as per
the direction of NHAI. RInfra road business has covered
approximately 630 Km of area under avenue plantation
and approximately 500 Km under tree plantation in the
median plantation and the same is maintained regularly.
•
Education facilities
o
o
o
o
School Walls were painted with educational
material to enable learning and making it fun
Created Library in school near toll plaza and donated
books to encourage reading
Fixed bore well of school and installed drinking
water fountain to ensure clean drinking water for
all students.
Plantation drives to encourage eco friendliness
and awareness towards our responsibilities towards
mother nature.
The Infrastructure Sector – Structure and Development,
opportunities and threats
Infrastructure sector plays an important role in the growth and
development of Indian economy. The allocation of ` 100 lakh
crore for infrastructure development in next 5 years is a step
in the right direction to boost the economy. As per the budget
for FY20-21, finance minister has allocated ` 1.7 lakh crore for
accelerated development of infrastructure, covering strategic
roads & highways, economic & green corridors, coastal & inland
ports which has the potential to kickstart the economy, boost
capex cycle, and generate jobs outside urban centres, and
boost consumption. For the NHAI, the Centre has proposed to
monetize at least 12 lots of highway bundles, covering over
6,000 km before 2024. The Budget also proposes accelerated
development of highways including the development of access
control highways (2,500 km), economic corridors (9,000 km),
coastal and land port roads (2,000 km) and strategic highways
(2,000 km). In a boost to regional connectivity in the NCR, the
Centre has allocated ` 2,487 crore to the country’s first Regional
Rapid Transit System (RRTS) in the Budget. A total of ` 20,000
crore has been allocated for the Mass Rapid Transit System,
which includes all metro projects across the country and the
RRTS projects.
Major threat faced by the industry is continuing slowdown in
the economy, underscoring the need for coordinated monetary
and fiscal policy actions. Further constrained government revenue
streams may curtail planned investment in infrastructure.
Looming trade wars could result in depreciating Indian Rupee
and lower foreign direct investments.
Further the businesses worldwide have been hugely impacted
by the outbreak of COVID-19 epidemic which has resulted in
significant reduction in economic activities across all sectors. The
Company’s business has also been affected due to interruption
in construction activities, supply chain disruption, unavailability of
personnel, closure/lock down of various other facilities etc.
•
Health & Safety Programs:
Outlook
o
o
o
o
Eye screening camps: Health check-up camps with
a major focus on eye screening was organized at
schools in the nearby villages and at some of the
toll plazas.
Awareness program on Road Safety of highways to
create awareness on road safety.
Pulse polio Immunization programs were organized
at toll plazas on the highway stretch.
Blood donation camps were organized
India had entered into 2020 with lower growth projections
on the economic front led by global economic slowdown and
now the coronavirus panademic has further turned the matters
gloomy. However, since the lockdown, RBI has announced several
measures to keep the economy intact like cutting down repo rate
to 15 year low at 4.4 per cent, allowed banks to stall EMI’s for
long term loans for upto 3 months and increased liquidity by
cutting down CRR in order to mitigate the effects of slowdown.
IMF projected that due to COVID, India’s GDP is expected to
grow at 1.9 per cent which is still one of the highest amongst
G20 countries.
26
Reliance Infrastructure Limited
Business Responsibility Report
Section A: General Information about the Company
Corporate Identity Number
Name of the Company
Registered Address
Website
E-mail ID
L75100MH1929PLC001530
Reliance Infrastructure Limited
Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate,
Mumbai 400001
www.rinfra.com
rinfra.investor@relianceada.com
Financial Year reported
2019-20
Sector(s) that the Company is engaged in (industrial
activity code-wise)
Engineering and Construction (E&C) segment of the power and infrastructure
sectors
(Industrial Group 422 as per National Industrial Classification of the Ministry
of Statistics and Programme Implementation)
List three key products / services that the Company
manufactures / provides (as in balance sheet)
E&C Contracts
Total number of locations where business activity is
undertaken by the Company:
Number of international locations
Nil
Number of national locations
Execution of E&C contracts at various locations in India in Rajasthan, Tamil
Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar, Jharkhand, etc.
Markets served by the Company
N A
Section B: Financial Details of the Company
Paid up Capital
Total Turnover
Total Net Profit
` 263 crore
` 3,339 crore
` 1,031 crore
Total spending on Corporate Social Responsibility
(CSR) as a percentage of profit after tax (%)
List of activities in which expenditure as above has
been incurred
Section C: Other Company’s Details
Not Applicable in view of the losses.
Details are given under Principle 8.
Does the Company have Subsidiary Companies
Yes. The Company has 58 subsidiaries and step down subsidiaries.
Do the Subsidiary Company / Companies participate
in the Business Responsibility (BR) Initiatives of the
parent company?
Yes
Does any other entity / entities (suppliers,
distributors, etc.) that the Company does business
with, participate in the BR initiatives of the
Company?
Section D: Business Responsibility Information
The Company encourages other Entities such as suppliers and contractors to
participate in its BR initiatives.
Details of the Director / Directors responsible for
implementation of the business responsibility policy
BR functions are monitored by the CSR Committee of the Board of Directors.
The details are provided in the Corporate Governance Section of this report.
Details of the business responsibility Head
The Key Managerial Personnel of the Company who are responsible in general
for BR Activities of the Company are as under :
Shri Punit Garg, Executive Director and CEO
Shri Sridhar Narasimhan, Chief Financial Officer
Shri Anil C Shah, Company Secretary (upto August 15, 2019)
Shri Paresh Rathod, Company Secretary (w.e.f. August 16, 2019)
27
Reliance Infrastructure Limited Business Responsibility Report
Principle-wise Business Responsibility Policies, as per National Voluntary Guidelines on Social Environmental and Economic
Responsibilities of Business (Reply in Y / N)
Questions pertaining to Principles (p)
Do you have a policy/policies for:
Has the policy been formulated in consultation with the
relevant stakeholders?
Does the policy conform to any national /international
standards? If yes, Specify.
P
1
Y
Y
Y
P
2
Y
Y
Y
P
3
Y
Y
Y
P
4
Y
Y
Y
P
5
Y
Y
Y
P
6
Y
Y
Y
P
7
Y
Y
Y
P
8
Y
Y
Y
P
9
Y
Y
Y
The policy is in line with the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business,
2011 (NVGs) and updated in terms of the National Guidelines on Responsible Business Conduct (NGRBC) dated March 13, 2019.
They also conform to international standards like OHSAS 18001 (Standard for Occupational Health And Safety Management
System), ISO 14001 (Environment Management).
Has the policy been approved by the Board?
Does the Company have a specified committee of the Board/
Director/Official to oversee the implementation of the policy?
Indicate the link for the policy to be viewed online?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
https://www.rinfra.com/documents/1142822/1190917/BR_
Policy.pdf
Has the policy been formally communicated to all relevant
internal and external stakeholders?
The policies have been communicated to the stakeholders by
displaying on the Company website.
Does the Company have in-house structure to implement the
policy/ policies?
Yes
Does the Company have a grievance redressal mechanism
related to the policy/ policies to address stakeholders’
grievances related to the policy/ policies?
The grievances are referred to and attended to by the Divisional
Heads of respective businesses for redressal and the HR Group
monitors redressal of such grievances.
Has the Company carried out independent audit/ evaluation
of the working of this policy by an internal or external agency?
In addition to the review of the BR Policy by the CSR Committee,
the Environment, Health and Safety policies are evaluated by
internal as well as external ISO audit agencies. The Vigil Mechanism
is reviewed by the Audit Committee and the Board reviews all the
polices annually.
If answer against any principle is ‘No’, please explain why?
Not applicable
Indicate the frequency with which the Board of Directors,
Committee of the Board or CEO to assess the BR performance
of the Company.
The CSR Committee periodically assesses the BR performance of
the Company for ensuring the effectiveness and relevance of BR
initiatives.
Does the Company publish a BR or a Sustainability Report?
What is the hyperlink for viewing this report? How frequently
it is published?
Yes. The BRR is published annually and is available on the website
of the Company at the link -https://www.rinfra.com/web/rinfra/
business-responsibility-report
Section E: Principle-wise Performance
Principle 1
Business should conduct and govern themselves with Ethics, Transparency and Accountability
a.
Does the policy relating to ethics, bribery and corruption cover only the Company? Does it extend to the Group / Joint
Ventures / Suppliers / Contractors / NGOs / Others?
The Company, as a part of the Reliance Group, has adopted the Group Code of Ethics and Business Policies governing conduct
of business of the Company in an ethical manner. The Company encourages its business partners to follow the code.
The Company also has a grievance redressal mechanism and a whistle blower policy which enable its employees to raise
concerns to the Management.
The Board of Directors of the Company has adopted a Code of Conduct (Code) which applies to the Directors, Key Managerial
Personnel and the senior management of the Company. The Company obtains an annual confirmation affirming compliance
with the Code from the Directors, Key Managerial Personnel and the senior management every year.
28
Reliance Infrastructure Limited
Business Responsibility Report
b.
How many stakeholder complaints have been received
in the past financial year and what percentage was
satisfactorily resolved by the management?
2.
IT tools – These tools are being used internally to
maintain our database, by which we reduced the
paper consumption by almost 25 to 30%.
The Company has received 42 Complaints from the
shareholders during the financial year 2019-20 and there
were no complaints pending as on March 31, 2020. The
details of this are provided in the section on Investor
Relations.
Principle 2
Businesses should provide goods and services that are safe
and contribute to sustainability throughout their life cycle
1.
List up to 3 of your products or services whose design
has incorporated social or environmental concerns, risks
and/or opportunities. For each such product, provide
the following details in respect of resource use (energy,
water, raw material etc.) per unit of product (optional):
3. Water harvesting and recycling has resulted in
reduction of water requirements by 8 – 10%.
Mumbai Metro has waste water treatment plant to
recycle water which is used to wash rakes/ metro
trains and purposes at Depot. The recycling of
about four lakh litres of water is done every day.
In addition, the rain-water harvesting is done at
Metro Depot for conservation of rain water and use
thereof.
2.
Does the Company have procedures in place for
sustainable sourcing (including transportation)? If
yes, what percentage of your inputs was sourced
sustainably? Also, provide details thereof, in about 50
words or so.
(a) Reduction during sourcing / production /
distribution achieved since the previous year
throughout the value chain?
(b) Reduction during usage by consumers (energy,
water) has been achieved since the previous
year?
The Company is one of the leading service providers for
Engineering and Construction services providing services in
integrated design, engineering and project management
services for undertaking turnkey contracts including coal-
based thermal projects, nuclear power projects, gas-power
projects, metro rail and road projects.
Through its Special purpose vehicles, the Company is into
infrastructure business covering toll roads and Mumbai
Metro and also in power distribution.
In the construction of highways & structures, following are
some of the initiatives taken by the company to achieve
cost efficiency and reduce the consumption of energy and
other raw materials:
i.
ii.
iii.
iv.
v.
1.
Use of fly ash in high embankment to help reduce
air pollution.
3.
Deployment of adequate capacity plants and
crushers to enhance productivity.
Using crushed sand in lieu of natural sand where
ever cost of natural sand is very high.
Execution of large span structures with precast
Members.
Using Reinforced wall construction instead of
RCC retaining wall, leading to large economy in
construction cost.
In case of Mumbai Metro, the following initiatives
are taken.
Rooftop solar power generation – The solar power
is used as an alternate to meet the auxiliary power
requirements which resulted in reduction of non-
renewable energy by 12.72% of total electricity
consumption. The Solar Panels have been installed
on the roof-top of all 12 Metro Stations and at
Metro Depot.
Yes, the Company has procedures in place for sustainable
sourcing. In fact, the Company encourages its vendors,
contractors and suppliers for effective implementation of
the same by including Environmental, Health & Safety and
Sustainability clauses in all its Purchase Orders and Work
Orders.
As part of sourcing strategy, our priority is to source local raw
materials like sand, stone aggregates etc. for construction
of Roads, Structures and Toll Plazas. In addition, we
strive to design and construct sustainable projects which
incorporate conservation measures, continuous monitoring
of environment and use of resources that are environment
friendly, adoption of green technologies and deployment
of fuel efficient plants and machineries. Our aim is to
make efficient use of natural resources, eliminating waste,
recycling and reusing the material to the extent possible
without compromising quality and safety. Our priority is to
use locally available raw materials and engage local labour
for construction and O&M activities.
At Mumbai Metro, we are sourcing the 12.72% of
electricity consumption from our in-house rooftop solar
power. In addition, saving of 6% in auxiliary consumption
is achieved by fitting the LED lights.
Has the Company taken any steps to procure goods
and services from local and small producers, including
communities surrounding their place of work? If yes,
what steps have been taken to improve their capacity
and capability of local and small vendors?
Yes, the Company makes continuous efforts to develop
and maintain local small time vendors in order to have
timely delivery with optimum cost and best quality.
Several steps are taken to procure goods and services from
local and small producers including public advertisements
in local news papers.
The Engineering and Contract (E&C) Division of the
Company, as part of sourcing strategy, gives priority to
sourcing of local raw materials like sand, aggregate etc.,
for construction of Roads and Power Projects. We procure
locally available goods suitable for construction of project
facilities and engage local contractors for Housekeeping
and Security services. In addition, employment to local
youth is provided in various functions in all our Regional
Offices and Toll Plazas. At our project sites, we deploy
manpower from the local community and smaller
29
Reliance Infrastructure Limited
Business Responsibility Report
contracts are awarded to local contractors. We are
regularly interacting with vendors and educating them
about Quality standards and their importance to enhance
their approach and understanding of support functions.
We also provide bigger opportunities to enhance the
capability of local contractors / service providers.
Category
Sr.
No.
4.
Does the Company have a mechanism to recycle
products and waste? If yes what is the percentage of
recycling of products and waste (separately as <5%,
5-10%, >10%).
Through Environment Management System ISO 14001,
the E&C Division takes steps to increase our waste
efficiency. Fly Ash bricks are used to reduce carbon foot
print. Also, use of fly ash in ready mix concrete (batching
plant) helps in protection of environment by partly
replacing cement, production of which entails energy
consumption and CO2 emissions.
All the wastage at Reliance Centre Santacruz are either
reused or recycled. For example, Food wastes are
reused by converting into manure through in-house
vermicompost machine. Other wastes such as paper/
cardboard, hazardous wastes, electronic wastes are
recycled through authorized recyclers.
Our philosophy is to reduce waste and make efficient
use of raw materials during construction of roads and
other E&C Projects. We use recycled bitumen aggregates
(amounts to about <5%), while we do not compromise on
high quality standards and safety of roads.
At Mumbai Metro, there is a system of selling the scarp
and waste to approved vendors who can recycle the
products and waste. Also, about 4 lakh litres of water is
recycled from total water consumed for train washing.
Principle 3
Businesses should promote the well being of all employees
Total number of employees
5718
Total number of employees
hired on temporary /
contractual /casual basis
The number of permanent
women employees
The number of permanent
employees with disabilities
Do you have an employee
association that is recognized
by management?
What percentage of your
permanent employees is
Members of this recognized
employee association?
Number of complaints relating
to child labour, forced labour,
involuntary labour, sexual
harassment in the last financial
year and pending, as on the
end of the year
30
Nil
591
Nil
No
NA
The Company does not
employ child labour, forced
labour and involuntary
labour. The Company did
not receive any complaint
of sexual harassment and
discriminatory employment
No of
complaints
filed during
the financial
year
No. of
complaints
pending as
on end of the
financial year
Not applicable Not applicable
Nil
Nil
Nil
Nil
1
2
3
Child labour / Forced
labour / Involuntary labour
Sexual harassment
Discriminatory
employment
What percentage of your under mentioned employees were
given safety and skill upgradation training in the last year
Permanent Employees
Permanent Women Employees
Casual/Temporary/Contractual Employees
Employees with Disabilities
48.25 per cent
33.25 per cent
NA
NA
Principle 4
Businesses should respect the interests of, and be responsive
towards all stake holders, especially those who are
disadvantaged, vulnerable and marginalized
a.
Has the Company mapped its internal and external
stakeholders? Out of the above, has the Company
and
disadvantaged,
the
identified
marginalized stakeholders?
vulnerable
The Company has mapped the stakeholders i.e. customers,
shareholders, employees, suppliers, banks and financial
institutions, government and regulatory bodies and the
local community and out of these, the Company has
identified the disadvantaged, vulnerable and marginalized
stakeholders.
b.
Are there any special initiatives taken by the Company
to engage with the disadvantaged, vulnerable and
marginalized stakeholders. If so, provide details
thereof.
At Reliance Centre Santacruz, we have several provisions
for Specially-abled employees such as non-slippery
ramps to the main entrance of the building and reception,
dedicated car parking next to the lift lobby, dedicated
washrooms at all floors etc.
Our Mumbai Metro provides a number of facility to cater
to the special needs of the disadvantaged, vulnerable and
marginalized customers. In addition to the escalators,
elevators have been provided at all the metro stations,
especially for senior citizens, differently abled passengers
etc. Tactile paths are provided for the visually impaired
passengers which will guide them from entering the metro
station to boarding the train and vice versa. Ramps are
provided which are next to the Lifts to help the passengers
on wheelchairs for easy access.
Reliance Infrastructure Limited
Business Responsibility Report
Principle 5
Businesses should respect and promote human rights
a.
Does the policy of the Company on human rights
cover only the Company or extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others?
The policy of the Company on human rights covers not
only the Company, but also extends to the Group / Joint
Ventures / Suppliers / Contractors / NGOs / Others. The
Company is committed to complying with all human
rights, practices across all group companies, JVs and other
stakeholders associated with the Company.
The Company does not employ any forced labour and
child labour and is committed to promoting the general
equality among the employees.
b.
How many stakeholder complaints have been received
in the past financial year and what percent was
satisfactorily resolved by the management?
The Company has not received any stakeholder complaint
pertaining to human rights during the financial year 2019-
20.
Principle 6
Business should respect, protect and make efforts to restore
the environment
a.
Does the policy related to Principle 6 cover only the
company or extends to the Group /Joint Ventures /
Suppliers / Contractors / NGOs / others.
Yes, the policy of the Company on environment covers
not only the Company, but also extends to the Group /
Joint Ventures / Suppliers / Contractors / NGOs / Others.
The Company is committed to achieving an excellence in
environmental performance, preservation and promotion
of clean environment and also actively encourages
business partners like suppliers, contractors, etc. to
preserve and promote environment.
d.
e.
b.
Does the Company have strategies/ initiatives to
address global environmental issues such as climate
change, global warming, etc? If yes, please give
hyperlink for webpage etc.
Yes. The Company is committed to delivering reliable
and quality supply and services to its consumers at
competitive costs and is conscious of its responsibility
towards creating, conserving and ascertaining safe and
clean environment for sustainable development. The
Company has formulated Environment Policy aimed
at adopting appropriate technologies and practices to
minimize environmental impact of its activities, continually
improving its environmental performance, conserving
the natural resources, promoting afforestation and skill
upgradation of employees for effective implementation
of the Policy.
Reliance Centre Santacruz is also certified under ISO
14001:2014
(Environmental Management System,
which demonstrate the commitment of Management
towards environment related issues and concerns).
At Mumbai Metro, we have a water treatment plant to
recycle water which is used to wash rakes/ metro trains
wherein four lakh litres of water is recycled every day.
We have installed solar panels on all 12 Metro Stations
and one at the Metro Depot for the Versova- Andheri –
Ghatkopar Metro One corridor to meet our power needs.
We have also installed a rain water harvesting plant in
depot for conservation of rain water and reuse of the
same. The details of the above are provided at the link:
https://www.reliancemumbaimetro.com/web/reliance-
mumbai-metro/green-promise.
c.
Does the Company identify and assess potential
environmental risks?
Yes, the Company identifies, maintains and assesses
potential environmental risks through aspect register
which is one of the main requirements of the Company’s
Environment Policy commensurate to ISO 14001:2014.
Every year, aspect register is reviewed and aspects are
added or deleted based on the process change. Hazards
are analysed, evaluated and adequate control measures
are implemented to reduce impact on environment and
human. HIRA (Hazards Identification and Risk Assessment
Register) has been prepared to identify process/activity-
wise Hazards and their Risk Impacts. Accordingly, the risks
are analysed, evaluated and treated.
Does the Company have any project related to Clean
Development Mechanism?
No.
Has the Company undertaken any other initiatives on –
clean technology, energy efficiency, renewable energy,
etc. If yes, please give hyperlink for web pages etc.
The Company has implemented a technology of Integrated
Power Management, which is a software installed in
systems (including laptops and desktops) of employees,
and that reduces the consumption of electricity by the
system.
The Company’s Material Subsidiaries BSES Rajdhani Power
Limited and BSES Yamuna Power Limited (Delhi Discoms)
have initiated a number of Energy saving initiatives
including installation of Roof Top Solar power generation
systems where consumers can generate solar power for
with a capacity of ~62 MWp, conducting Solar awareness
campaigns, promotion of energy efficient LED bulb, LED
tube lights, Fans, induction cook top and super energy
efficient ACs, Installation of EV chargers at 9 locations,
Establishment of micro sub stations etc.
Reliance Centre Santacruz is an IGBC certified Green
Building under “IGBC GOLD” Rating category for existing
buildings (with 74 points) - #EB 19 0033.
The green initiatives of our Mumbai Metro are provided in
the link https://www.reliancemumbaimetro.com/web/
reliance-mumbai-metro/green-promise.
31
Reliance Infrastructure Limited
Business Responsibility Report
f.
g.
Are the Emissions/Waste generated by the Company
within the permissible limits given by Central Pollution
Control Board (CPCB) / State Pollution Control Board
(SPCB) for the financial year being reported?
Yes.
Number of show cause/ legal notices received from
CPCB/SPCB which is pending (i.e. not resolved to
satisfaction) as on end of Financial Year
Nil.
Principle 7
Businesses, when engaged in influencing public and regulatory
policy, should do so in a responsible manner
a.
Is your company a member of any trade and chamber
or association? If Yes, Name only those major ones
that your business deals with:
The Company is a member of various trade and industry
associations. Some of them are:
a.
b.
c.
d.
e.
Bombay Chamber of Commerce and Industry,
Indian Merchants’ Chamber,
National Highways Builders Federation,
Confederation of Indian Industry and
Federation of Indian Chambers of Commerce and
Industry
b.
Have you advocated/lobbied through above associations
for the advancement or improvement of public good?
If yes specify the broad areas.
The Company periodically takes up matters concerning
statutory and regulatory issues as also policies and reforms
in the infrastructure sector through associations and
chambers of commerce.
Principle 8
Businesses should support inclusive growth and equitable
development
a.
Does the Company have specified programmes /
initiatives / projects in pursuit of the policy related to
Principle 8? If yes, details thereof.
Yes, the Company has specified programmes / initiatives
/ projects for pursuing its Corporate Social Responsibility
(CSR) policy.
During the current year, due to losses, the company has
not spent any amount on CSR Activity. However, the
Company’s Subsidiaries have carried out the CSR Activities
which are in line with the Company’s CSR mandate.
As part of the CSR mandate, the Company focuses on
three key Thematic areas – Education, Healthcare and
Rural Transformation (which includes development of
infrastructure facilities, skill building and promotion of
sustainable livelihood, improving the socio-economic
status of women and the youth) and two cross-cutting
themes which cut across all our social endeavours, that is
Environment and Swachh Bharat Abhiyan (Sanitation).
32
The organization focuses on its endeavour to bring about
a tangible change in the lives of people living in rural,
underprivileged areas.
Corporate Social Responsibility (CSR) Policy of the
Company aims at achieving the equitable development.
Since locations of the projects are in economically and
socially backward locations of India, it is a constant
endeavour to include the local community as a critical
stakeholder in the inclusive measures initiated by the
Company.
In the last one year, the Company, through its subsidiaries,
has undertaken several initiatives to support inclusive
growth and equitable development for social and
economic betterment of the community through several
CSR programmes and active participation from enthusiast
employee volunteers. Below are key endeavours
undertaken by the Company during the year 2019-20:
i.
Education
Education is the basic tool to bring development to an area
and its population. We at the Company aim at building the
required environment and infrastructure to create a pool
of human resource both within and across our area of
operations.
The Company’s Subsidiaries, through NGOs are contributing
in the field of education through Adult literacy centers,
Mahila Shiksha Kendra - Women Literacy Centers for
literacy enhancement in low income residential clusters,
vocational training facilities, Awareness programme on
Road Safety to highways to create awareness on road
safety, book distribution for under privileged children in
remote areas, etc.
ii.
Healthcare
A vision to strengthen healthcare systems in the
communities we serve and empower individuals to
make informed choices has enabled us to implement
programme on community health with special focus on
health of elderly, women and young ones through our
various programmes.
Initiatives involving health camps, Eye Screening camps
and other preventive care medical camps are organized
by Delhi discoms and Toll companies in and around their
locations. Health checkup camps with a major focus on
eye screening were organized at schools in the nearby
villages and at some of the toll plazas.
A number of Blood donation camps were organized by the
Company as well as its subsidiaries during the year. Pulse
Polio Immunization programs were organized at toll plazas
on the highway stretch.
iii. Rural Transformation
We have been working on transforming the rural terrain
with a focus on promoting social security, parameters
pertaining to human development and supporting
environment. Since locations of the projects are in
economically and socially backward locations of India, it is
a constant endeavour to include the local community as
a critical stakeholder in the inclusive measures initiated by
the Company.
Reliance Infrastructure Limited
Business Responsibility Report
During the year, the CSR interventions undertaken
under this thematic area covers Tobacco De-addiction
program, Self defence training program for school girls,
various activities for women empowerment like Mahila
Panchayat, environment cleanliness, literacy, domestic
violence, Celebration of Daan Utsav & Giving Tuesday
with the theme “Empowering Women & their Safety”
where more than 2.5 lakh commuters were benefitted,
etc.
iv.
Sanitation
Our approach towards Swachh Bharat Abhiyan lies in
creating an enabling environment which is brought about
by the following two focus elements that is access to
Sanitation hardware i.e. improved systems, facilities,
technology and infrastructure and improved hygiene
practices and behavioral change.
At the core of these initiatives lies the need to engage
with the employees and promote volunteering to
sensitize, to induce adult behavioral change and to
promote sustained interventions and ownership amongst
the participating teams. Cleanliness drives were conducted
around the neighboring localities with an objective to
create a clean and healthy work place. At the toll plazas,
‘project highway’ was initiated for creating awareness on
cleanliness and hygiene by putting Placards and Signage’s
in Public areas for not spitting, littering, placements of
dustbins, maintenance of toilets and way side amenities /
user facility to encourage commuters to use them and not
to spoil the Highway or Toll Plaza area. Other sanitation
activities conducted include Renovation of toilets in Govt.
schools, Maintenance activity and upgrading the sanitation
facilities at Crematoria areas etc.
v.
Environment
The imperative is to use natural resources efficiently
to leave a minimal carbon footprint and impact on
biodiversity across our business value chain. The group
strives to develop and promote processes and newer
technologies to make all our products and services
environmentally responsible. The philosophy behind is to
create a sustainable eco-sphere of low carbon economy
by following the 5R guidelines of Reduce, Reuse, Recycle,
Renew and Respect for the environment and its resources
through the entire supply management.
Apart from introducing and adopting green technologies
across the business, we give due impetus to the need
to green the ecosphere in which we operate thereby
sequestering carbon emissions by planting saplings.
The Union Ministry of Road Transport and Highways has
framed the Green Highways (Plantation, Transplantation,
Beautification and Maintenance) Policy-2015 with a
vision to develop eco-friendly National Highways with
participation of concerned stakeholders. Under this
Policy, we have undertaken plantation and landscaping
work activities in operational projects. For the projects
under development, the avenue plantation and median
plantation are being done as per the direction of NHAI. The
Company’s road business has covered approximately 630
kms of area under avenue plantation and approximately
500 kms under tree plantation in the median plantation
and the same is maintained regularly.
Mumbai Metro One has partnered with CityFlo, an App
based feeder bus service and Uber Auto for providing
last mile connectivity to commuters. MMOPL launched
MyByk, a public bike-sharing services from Jagruti Nagar
metro station with support from MMRDA, WRI & Toyota
Mobility Foundation which will encourage Mumbaikars to
shift to eco-friendly mode of transport as feeder services
which is decongest the city & reduce pollution.
To summarize, the Company and its subsidiaries have lived
up to their responsibilities as corporate citizens and have
endeavoured to bring about an all round transformation in
the vicinity of the project sites for the common good of
the needy and the under privileged.
b.
Are the programmes / projects undertaken through
in-house team/own foundation / external NGO /
government structures /any other organization?
While the Company and its subsidiaries undertake most
of the CSR projects and initiatives through its own team
or through Group initiatives, some of the projects are
conducted in association with external organisations
on need basis. The CSR efforts, mentioned in the
programmes specified above are implemented through
delivery mechanisms comprising of employees, local
bodies, non-governmental organizations, not-for-profit
entities and government Institutions to mention a few.
The interventions are carried out in tandem with the
Government bodies to meet the social mandate for the
earmarked communities. The execution of the programme
under the thematic heads, viz. Education, Healthcare,
Rural Transformation, Environment and Sanitation are
carried out with the support from development sector
organizations, Institutions apart from implementation
through respective CSR teams. Employee volunteering
also acts as a critical implementing arm across our
earmarked locations. Induction of employee volunteers
and their contribution towards meeting our CSR mandate
on a sustained basis has enabled us to not only inculcate
the tenets but also ensure sustainability and continuous
technical support to the projects.
c.
Have you done any impact assessment of your
initiative?
With a view to enhancing the effectiveness of the CSR
projects and initiatives, success parameters both on
qualitative as well as quantitative terms are embedded
during the programme plan. These parameters are
evaluated through the programme and feedback obtained
on regular basis from the concerned stakeholders, including
the target beneficiaries of the CSR projects. The data is
collated and appropriately analysed for refining future CSR
projects.
Also, impact analysis of each and every CSR activity is
carried out on a regular basis.
33
Reliance Infrastructure Limited
Business Responsibility Report
d. What
is your Company’s direct contribution to
community development projects? Provide the amount
in INR and the details of the projects undertaken.
Due to the losses incurred in the previous year, the
Company has not spent any amount on CSR Activities
during the year. However, the Subsidiaries of the
Company have contributed through various CSR initiatives
under the thematic heads viz. Education, Healthcare,
Rural transformation, Swacch Bharat Abhiyan and
Environment.
These projects are directly intended for improving the
quality of life of community with well designed strategies
of replicability, scalability and sustainability, which are
owned by the community. The details of such programmes,
initiatives and projects carried out by the Company in the
past years are furnished in the CSR Report as an annexure
to the Directors report.
e.
Have you taken steps to ensure that this community
development initiative is successfully adopted by the
community? Please explain in 50 words or so.
Yes, engagement of the community is paramount
for sustaining a programme on ground. We ensure
engagement of the community at the very planning stage
and thereafter inducting them at the implementation
level. This not only ensures acceptance of the programme
on ground but also its continuity and sustainability.
We believe our role as Enablers can promote dynamic
development by creating synergies with our partners
in growth and success: the communities. We are
committed to augmenting the overall economic and
social development around the local communities where
we operate by discharging our social responsibilities in a
sustainable manner. The interventions have been aligned
with that of the government mandate both at the local
as well as the state level. We have been working in the
direction of creating meaningful partnerships through
series of engagements and transparency in our processes
across board. This is undertaken by initiating meaningful
grassroots participation with local bodies / institutions /
NGOs to support and augment interventions in areas
undertaking Stakeholder Engagement to identify their
perceived needs.
Initiatives in handling COVID-19 pandemic:
The unprecedented crisis caused by the global pandemic
COVID-19, impacted our citizens and shattered many
livelihoods. Reliance Group is committed to continue
to provide essential services without interruption during
this lockdown period. Our Delhi Distribution business
through
complimented
Distribution of face masks, sanitizers, disinfectant solutions
and soaps to the needy, Distribution of dry rations (rice,
flour, pulses, cooking oil etc.) to poor people, Providing
PPE kits (Personal Protection Equipments) to the doctors
the Governments efforts
and para-medical professions. The Roads business, was in
the frontline of providing support to the people impacted
and distribution of food to needy along the stretch of the
toll plaza was undertaken. Along with this, to ensure that
our frontline warriors of security were safe and secure,
distribution of PPE equipments to Police officers near the
toll plazas was undertaken.
Principle 9
Businesses should engage with and provide value to their
customers and consumers in a responsible manner
a. What percentage of customer complaints / consumer
cases are pending as on the end of financial year?
b.
c.
Not applicable to the Company’s nature of Business.
Does the Company display product information on the
product label, over and above what is mandated as per
local laws?
The Company does not deal in any specific branded
product.
Is there any case filed by any stakeholder against the
Company regarding unfair trade practices, irresponsible
advertising and/or anti-competitive behaviour during
the last five years and pending as on end of financial
year.
No.
d.
Did your Company carry out any consumer survey/
consumer satisfaction trends?
The Company and its Subsidiaries take various initiatives
for ensuring customer satisfaction. The Delhi Discoms
conduct various customer meets like ‘UtkrisheSahabhagi
meet’, ‘Aapke Dwar Meet’ to ensure one to one contact
with the customers to understand their needs in a better
manner. It also provides upgraded call centre facility,
mobile and whatsapp services, Chatbot on the website
of their respective Companies and other social media to
ensure customer feedback.
Feedbacks from commuters are obtained at all our Toll
Plazas and we strive to improvise our services based on
the feedback received.
The Company’s Registrar and Transfer Agent KFin
Technologies Private Limited renders investor services to
the investors with regard to matters related to the shares
and dividend payments. KFin services investors through
its network of around 400 branches and has dedicated
investor helpline number 1800 4250 999. The feedback
received from the shareholders indicate that they are
satisfied with the services being rendered.
The Company would continue to contribute actively to
community welfare activities and take up initiatives and
measures for the upliftment of various segments of the
society.
34
Reliance Infrastructure Limited
Corporate Governance Report
Our Corporate Governance Philosophy
Reliance Infrastructure Limited follows the highest standards of
corporate governance principles and best practices by adopting
the “Reliance Group – Corporate Governance Policies and
Code of Conduct” as is the norm for all constituent companies
in the group. These policies prescribe a set of systems and
processes guided by the core principles of transparency,
disclosure, accountability, compliances, ethical conduct and the
commitment to promote the interests of all stakeholders. The
policies and the code are reviewed periodically to ensure their
continuing relevance, effectiveness and responsiveness to the
needs of our stakeholders.
Governance Policies and Practices
The Company has formulated a number of policies and
introduced several governance practices to comply with the
applicable statutory and regulatory requirements, with most of
them introduced long before they were made mandatory.
A.
Values and commitments
We have set out and adopted a policy document on ‘Values
and Commitments of Reliance Infrastructure’. We believe
that any business conduct can be ethical only when it rests
on the nine core values viz. honesty, integrity, respect,
fairness, purposefulness, trust, responsibility, citizenship
and caring.
B.
Code of ethics
Our policy document on ‘Code of Ethics’ demands that our
employees conduct the business with impeccable integrity
and by excluding any consideration of personal profit or
advantage.
C.
Business policies
Our ‘Business Policies’ cover a comprehensive range of issues
such as fair market practices, inside information, financial
records and accounting integrity, external communication,
work ethics, personal conduct, policy on prevention of
sexual harassment, health, safety, environment and quality.
D.
Separation of the Chairman’s supervisory role from the
Executive Management
In line with the best global practices, we have adopted the
policy to ensure that the Chairman of the Board shall be a
non-executive director.
E.
Policy on Prohibition of insider trading
This document contains the policy on prohibiting trading
in the securities of the Company, based on insider or
privileged information.
F.
Policy on prevention of sexual harassment
Our policy on prevention of sexual harassment aims at
promoting a productive work environment and protects
individual rights against sexual harassment.
G. Whistle blower policy / Vigil mechanism
Our Whistle Blower policy encourages disclosure in good
faith of any wrongful conduct on a matter of general
concern and protects the whistle blower from any adverse
personnel action. The vigil mechanism has been overseen
by the Audit committee.
It is affirmed that no person has been denied access to the
chairperson of the Audit Committee.
H.
Environment Policy
The Company is committed to achieve excellence in
environmental performance, preservation and promotion
of a clean environment. These are the fundamental
concerns in all our business activities.
I.
Risk management
Our risk management procedures ensure that the
Management controls various business related risks
through means of a properly defined framework.
J.
Board room practices
a.
Chairman
In line with the highest global standards of
corporate governance, the Board has separated
the Chairman’s role from that of an executive in
managing day to day business affairs.
b.
Board Charter
The Company has a comprehensive charter, which
sets out clear and transparent guidelines on matters
relating to the composition of the Board, the scope
and functions of the Board and its Committees, etc.
c.
Board Committees
Pursuant to the provisions of the Companies
Act, 2013 (the “Act”) and Regulation 15(2) of
the Securities Exchange Board of India (SEBI)
(Listing Obligations and Disclosure Requirements)
Regulation, 2015 (the “Listing Regulations”),
the Board has constituted Audit Committee,
Nomination
and Remuneration Committee,
Stakeholders Relationship Committee, Corporate
Social Responsibility (CSR) Committee and Risk
Management Committee.
d.
Selection of Independent directors
Considering the requirement of skill sets on the
Board, eminent persons having
independent
standing in their respective fields/professions, and
who can effectively contribute to the Company’s
business and policy decisions are considered for
appointment by the Nomination and Remuneration
Committee, as Independent Directors on the Board.
The Committee, inter alia, considers qualification,
positive attributes, areas of expertise and number
of directorships and Memberships held in various
committees of other companies by such persons. The
Board considers the Committee’s recommendation
and takes appropriate decisions.
Every Independent Director, at the first meeting of
the Board in which he/she participates as a Director
and thereafter at the first meeting of the Board
in every financial year or whenever there is any
change in the circumstances which may affect her
35
Reliance Infrastructure Limited
Corporate Governance Report
/ his status as an Independent Director, provides a
declaration that she / he meets with the criteria of
independence as provided under law.
e.
Tenure of independent directors
Tenure of independent directors on the Board of the
Company shall not exceed the time period as per
provisions of the Act and the Listing Regulations, as
amended from time to time.
f.
Familiarisation for Board Members
The Board Members are periodically given formal
orientation and familiarized with respect to the
Company’s vision, strategic direction, corporate
governance practices, financial matters and
business operations. The Directors are facilitated
to get familiar with the Company’s functions at
the operational levels. Periodic presentations are
made at the Board and Committee Meetings, on
business and performance updates of the Company,
the macro industry business environment, business
strategy and risks involved. Members are also
provided with the necessary documents, reports
and internal policies to enable them to familiarize
themselves with the Company’s procedures and
practices. Periodic updates for Members are also
given out on relevant statutory changes and on
important issues impacting the Company’s business
environment.
The details of the programmes for familiarization
of independent directors have been put on the
website of the Company at the link: https://www.
rinfra.com/documents/1142822/1182645/
Familiarisation_programme.pdf
g. Meeting of independent directors with operating
teams
The Independent Directors of the Company interact
with various operating teams as and when it is
deemed necessary. These discussions may include
topics such as, operating policies and procedures,
risk management strategies, measures to improve
efficiencies, performance and
compensation,
strategic issues for Board consideration, flow of
information to directors, management progression
and succession and others as the independent
directors may determine. During these executive
sessions, the independent directors have access to
Members of management and other advisors, as
they may deem fit.
h.
Subsidiaries
All the subsidiaries of the Company are managed by
their respective boards. Their Boards have the rights
and obligations to manage their companies in the
best interest of their stakeholders. The Company
monitors performance of subsidiary companies.
i.
Commitment of Directors
The meeting dates for the entire financial year
are scheduled at the beginning of the year and
36
an annual calendar of meetings of the Board and
its Committees is circulated to the Directors. This
enables the Directors to plan their commitments
and facilitates their attendance at the meetings of
the Board and its Committees.
K.
Role of the Company Secretary in Governance Process
The Company Secretary plays a key role in ensuring
that the Board procedures are followed and regularly
reviewed. He ensures that all relevant information, details
and documents are made available to the directors and
senior management for effective decision making at the
meetings. He is primarily responsible for assisting the
board in the conduct of affairs of the Company, to ensure
compliance with the applicable statutory requirements
and Secretarial Standards to provide guidance to directors
and to facilitate convening of meetings. He interfaces
between the Management and the regulatory authorities
for governance matters. All the Directors of the Company
have access to the advice and services of the Company
Secretary.
L.
Independent Statutory Auditors
The Company’s Financial Statements for the year 2019-
20 have been audited by an independent audit firm M/s.
Pathak H.D. & Associates LLP, Chartered Accountants and
pursuant to the provisions of Section 139 of the Act, M/s.
Pathak H.D. & Associates LLP, would complete their term
of ten years at the conclusion of ensuing Annual General
Meeting and accordingly, cannot be re-appointed.
The Board has recommended the appointment of M/s.
Chaturvedi & Shah, LLP, Chartered Accountants, as
Statutory Auditors, for a term of five consecutive years
from the conclusion of the ensuing Annual General
Meeting till the conclusion of the ninety sixth Annual
General Meeting.
M.
Compliance with the code and rules of London Stock
Exchange
The Global Depositary Receipts (GDRs) issued by the
Company are listed on the London Stock Exchange
(LSE). The Company has reviewed the code of corporate
governance of LSE and the Company’s corporate
governance practices conform to these codes and rules.
N.
Compliance with the Listing Regulations
During the year, the Company is fully compliant with
the mandatory requirements of the Listing Regulations,
except for approval of financial results for the quarter and
financial year ended March 31, 2019, within prescribed
due date.
We present our report on compliance of governance conditions
specified in the Listing Regulations as follows:
I.
Board of Directors
1. Board Composition - Board strength and
representation (As on March 31, 2020)
The Board consists of seven Members. The
composition and category of directors on the Board
of the Company are as under:
Reliance Infrastructure Limited
Corporate Governance Report
Names of Directors
DIN
Category
Shri Anil D Ambani
Chairman
Shri Punit Garg
Shri S Seth
Vice Chairman
Shri S S Kohli
Shri K Ravikumar
Ms. Ryna Karani
Ms. Manjari Kacker
00004878
Promoter, Non-executive and Non-independent Director
00004407
00004631
00169907
00119753
00116930
06945359
Executive Director and Chief Executive Officer
Non-executive and Non-independent Director
Independent Directors
Sr.
No.
1
2
3
4
5
6
7
Notes:
a.
b.
None of the directors is related to any other
director and none of the Directors has any
business relationship with the Company.
None of the directors has received any loans
and advances from the Company during the
year.
All the Independent Directors of the Company
furnish a declaration at the time of their
appointment and also annually that they meet the
criteria of independence as provided under law. All
such declarations are placed before the Board.
In the opinion of the Board, the Independent
Directors possess the requisite expertise and
experience and are the persons of high integrity
and repute. They fulfill the conditions specified
in the Companies Act, 2013 and the Rules
made thereunder and are independent of the
management.
2.
Conduct of Board proceedings
The day to day business is conducted by the
executives and the business heads of the Company
under the direction of the Board. The Board holds
minimum four meetings every year to review and
discuss the performance of the Company, its future
plans, strategies and other pertinent issues relating
to the Company.
The Board performs the following key functions
in addition to overseeing the business and the
management:
a.
and
Reviewing and guiding corporate strategy,
major plans of action, risk policy, annual
plans;setting
business
budgets
performance
monitoring
objectives;
implementation and corporate performance;
and overseeing major capital expenditures,
acquisitions and divestments.
b. Monitoring
the effectiveness of
the
Company’s governance practices and making
changes as needed.
c.
d.
e.
Selecting, compensating, monitoring and
when necessary, replacing key executives
and overseeing succession planning.
key
Aligning
board
executive
remuneration with the long term interests of
the Company and its shareholders.
and
Ensuring a transparent board nomination
process with the diversity of thought,
experience, knowledge, perspective and
gender in the Board.
f. Monitoring and managing potential conflicts
of interest of management, Members of
the Board of Directors and shareholders,
including misuse of corporate assets and
abuse in related party transactions.
g.
h.
i.
j.
Ensuring the integrity of the Company’s
accounting and financial reporting systems,
including the independent audit, and that
appropriate systems of control are in place,
in particular, systems for risk management,
financial and operational control and
compliance with the law and relevant
standards.
Overseeing the process of disclosure and
communications
Carrying out the performance evaluation
of the Board, its committees and individual
directors.
Review the policy on materiality of Related
Party Transactions and threshold limits, and
update accordingly.
3.
Board meetings
The Board held six meetings during the financial
year 2019-20 on the following dates:
April 6, 2019, June 7, 2019, June 14, 2019, August
13, 2019, November 14, 2019 and February 14,
2020. The maximum time gap between any two
meetings was 92 days and the minimum gap was 6
days.
37
Reliance Infrastructure Limited
Corporate Governance Report
4.
Legal Compliance Monitoring
The Company monitors statutory compliances and delay or non-compliance are escalated and reported for remedial
action. A compliance report pertaining to the laws applicable to the Company is placed before the Board at its meetings.
Pursuant to the requirements of the Listing Regulations, the Board periodically reviews the legal compliances mechanism.
5.
Attendance of directors
Attendance of directors at the Board Meetings held during the financial year 2019-20 and at the last Annual General
Meeting (AGM) held on September 30, 2019 and the details of directorships (as per the provisions of Section 165 of
the Act), Committee Chairmanship and Memberships held by the directors as on March 31, 2020 were as under:
Names of Directors
Number of
Board meetings
attended out of
six meetings held
Shri Anil D Ambani
Shri S Seth
Shri Punit Garg**
Shri Jai Anmol Ambani*
Shri Jai Anshul Ambani*
Shri S S Kohli
Shri K Ravikumar
Ms. Ryna Karani
Ms. Manjari Kacker**
Lt. Gen Syed Ata Hasnain (Retd.)*
Shri B C Patnaik***
6
6
5
1
0
5
5
5
4
2
3
Attendance
at the last
AGM held on
September
30, 2019
Present
Present
Present
-
-
Present
Present
Present
-
-
Present
Number of
directorships
(including
RInfra)
Committee Chairmanship /
Membership (including RInfra)
Chairmanship
Membership
11
7
4
5
7
9
3
7
7
None
None
None
None
6
None
1
6
4
7
3
None
None
None
None
None
None
None
3
2
2
1
None
None
*
Shri Jai Anmol Ambani and Shri Jai Anshul Ambani were appointed as Additional Directors with effect from October 9,
2019 and they ceased to be Additional Directors with effect from January 31, 2020.
Lt. Gen Syed Ata Hasnain (Retd.) was appointed as an Additional Director in the capacity of an Independent Director
with effect from October 9, 2019. He resigned as Independent Director effective from March 18, 2020, pursuant
to his appointment as Member of the National Disaster Management Authority by the Government of India. He has
confirmed that there is no other material reasons other than stated above.
**
Shri Punit Garg and Ms. Manjari Kacker were appointed as Directors with effect from April 6, 2019 and June 14, 2019
respectively.
*** Shri B C Patnaik ceased to be director with effect from September 30, 2019.
Notes:
a.
b.
c.
None of the directors hold directorships
in more than 20 companies of which
directorships in public companies does not
exceed 10 in line with the provisions of
Section 165 of the Act. None of the Directors
hold directorships in more than 8 listed
entities in accordance with the provisions of
Regulation 17A(1) of the Listing Regulations.
No non-executive director has attained the
age of 75 years, except Shri S S Kohli, for
which the approval of the Members has been
obtained by way of special resolution at the
Annual General Meeting held on September
30, 2019.
No director holds Membership of more than
10 committees of board nor is a chairman of
more than 5 committees across board, of all
listed entities.
d.
e.
f.
g.
No Alternate Director has been appointed for
any Independent Director.
No independent director of the Company
holds the position of independent director
in more than 7 listed companies as required
under the Listing Regulations.
The information provided above pertains to
the following committees in accordance with
the provisions of Regulation 26(1)(b) of the
Listing Regulations: (i) Audit Committee and
(ii) Stakeholders Relationship Committee.
The
and
Committee Memberships
chairmanships above exclude Memberships
and chairmanships in private companies,
in Section 8
foreign companies and
companies.
h. Memberships
of
Committees
include
chairmanships, if any.
38
Reliance Infrastructure Limited
Corporate Governance Report
i.
The Company’s Independent directors meet at
least once in every financial year without the
attendance of Non-Independent Directors
and Members of management. In view of
the current extra-ordinary circumstances
due to massive outbreak of the COVID-19
pandemic, no meeting of
Independent
Directors was held during the financial year.
6.
Details of directors
The abbreviated resumes of all directors are
furnished hereunder:
Shri Anil D. Ambani, 61 years, B.Sc. Hons. and
MBA from the Wharton School of the University
of Pennsylvania, is the Chairman of our Company,
Reliance Capital Limited and Reliance Power
Limited. As on March 31, 2020, Shri Anil D. Ambani
held 1,39,437 equity shares of the Company.
Shri S Seth, 64 years, is a Fellow Chartered
Accountant and a law graduate. He has vast
experience in general management. Shri S Seth
is also on the Board of Reliance Power Limited,
Reliance Defence Limited, Reliance Defence
and Aerospace Private Limited, Reliance Defence
Systems Private Limited, Reliance Defence
Technologies Private Limited and Reliance Airport
Developers Limited.
As on March 31, 2020, Shri S Seth does not hold
any equity shares of the Company.
leadership,
IIFCL commenced
Shri S S Kohli, 75 years, was the Chairman and
Managing Director of India Infrastructure Finance
Company Limited (IIFCL), a wholly owned company
of the Government of India till April 2010, engaged
in promotion and development of infrastructure.
Under his
its
operations and carved a niche for itself in financing
infrastructure projects. The support of IIFCL helped
in speedier achievement of financial closure of
infrastructure projects in sectors like Highways,
airports, seaports, power, etc. IIFCL was conferred
with the “Most Admired Infrastructure Financier
2010” by KPMG Infrastructure. Shri Kohli had long
experience as a banker, spanning over 40 years
having held positions of Chairman and Managing
Director of Punjab and Sind Bank, Small Industries
Development Bank of India (SIDBI) and Punjab
National Bank (PNB), one of the largest public sector
banks in India. During his Chairmanship of PNB (from
2000 to 2005), he undertook total transformation
of the Bank. Under his leadership, PNB became a
techno-savvy Bank by implementing core banking
solution and introducing various technology-based
products and services. PNB also emerged as one
of the India’s Most Trusted Brands and the PNB
Group floated three public offerings of capital
during his tenure which were highly successful.
Shri Kohli held the Chairmanship of Indian Banks’
Association, a forum for promoting the interest of
banks for two terms and was member/chairman
of several committees associated with financial
sector policies. The committees he chaired dealt
with a variety of issues relating to small/medium
enterprise financing, wilful default in loans, human
resources development in the banking industry and
reconstruction of distressed small industries, etc. A
recipient of several awards including the “Enterprise
Transformation Award for Technology” by the
Wharton Infosys Limited, the “Bank of the Year
Award” by the Banker’s Magazine of the Financial
Times, London for the year 2000, and also ranked
22nd in the list of India’s Best CEOs ranking over
the period 1995 to 2011, by the Harvard Business
Review.
He is on the Board of ACB (India) Limited, BSES
Yamuna Power Limited, Seamec Limited, Asian
Hotels (West) Limited, BSES Rajdhani Power Ltd,
S V Creditline Limited, Indian Technocrat Limited .
He is a Member of the Audit Committee,
Nomination and Remuneration Committee, Risk
Management Committee and CSR Committee of
Board of the Company.
As on March 31, 2020, Shri S S Kohli does not hold
any equity shares of the Company.
Shri K Ravikumar, 70 years, was the former
Chairman and Managing Director (CMD) of Bharat
Heavy Electricals Limited (BHEL), which ranks
among the leading companies of the world engaged
in the field of power plant equipment. As CMD,
he was responsible for maximizing market-share
and establishing BHEL as a total solution provider
in the power sector. The Company was ranked
9th in terms of market capitalization in India during
his tenure at BHEL. He had handled a variety of
assignments during his long career spanning over
36 years. His areas of expertise are design and
engineering, construction and project management
of thermal, hydro, nuclear, gas based power plants
and marketing of power projects.
Shri Ravikumar had the unique distinction of
having booked USD 25 billion order for BHEL. His
vision was to transform BHEL into a world class
engineering enterprise. Towards this, he pursued a
growth strategy based on the twin plans of building
both capacity and capability and this had resulted in
an increase in BHEL’s manufacturing capacity from
10,000 MW to 20,000 MW per annum. He also
introduced new technologies in the field of coal
and gas based power plants for the first time in the
country, such as supercritical thermal sets of 660
MW and above rating, advance classgas turbines
large size CFBC boilers and large size nuclear
sets. BHEL has the distinction of having installed
over 1,00,000 MW of power plant equipment
worldwide.
Shri Ravikumar had also formed a number of
strategic tie ups for BHEL with leading Indian utilities
and corporates like NTPC Limited, Tamilnadu State
Electricity Board, Nuclear Power Corporation of
India Limited, Karnataka Power Corporation Limited,
Heavy Engineering Corporation Limited to leverage
39
Reliance Infrastructure Limited
Corporate Governance Report
equipment sales and develop alternative sources
for equipment needed for the country. He had
guided BHEL’s technology strategy to maintain the
technology edge in the market place with a judicious
mix of internal development of technologies with
selective external co-operation. He had focused
on meeting the customer expectation and has
strengthened BHEL’s image as a total solution
provider.
He possesses M.Tech Degree from the Indian
Institute of Technology, Chennai besides Post-
Graduate Diploma in Business Administration. He
was conferred Alumini Awards from the Indian
Institute of Technology, Chennai and the National
Institute of Technology, Trichy and was the Ex-
Chairman of BOG National Institute of Technology,
Mizoram. He has published a number of research
papers in the field of power and electronics.
He is also a director on the Board of SPEL
Semiconductor Limited, Reliance Power Limited.
He is the Chairman of Stakeholder Relationship
Committee and Nomination and Remuneration
Committee and member of the Audit Committee,
Risk Management Committee and CSR Committee
of Board of the Company.
As on March 31, 2020, Shri K Ravikumar does not
hold any equity shares of the Company.
Ms. Ryna Karani, 52 years, is partner of ALMT Legal,
Advocates and Solicitors since November 2006
and part of the firm’s corporate and commercial
team. She has been practicing as a lawyer since
1994 and is enrolled as Advocate with the Bar
Council of Maharashtra and Goa. Her practice
includes advising on mergers and acquisitions, joint
ventures, private equity and investment funds on a
full range of corporate transactions including cross
border transactions. She has advised and assisted a
number of foreign clients in establishing a presence
in India through incorporation of companies and/or
establishment of liaison offices. She is a member of
the Society of Women Lawyers.
Besides her M&A practice, she advises clients on
infrastructure projects including submission and
preparation of Request for Proposal (RFPs), finalizing
tenders, drafting and negotiating concession
agreements and related documents.
Ms. Ryna Karani also regularly advises clients
on loan transactions (both Rupee and external
commercial borrowings), including drafting and
negotiating the loan agreements, security and other
related documents. She also provides advice on
general corporate matters, commercial contracts
real estate matters.
She is a director on the Board of Mumbai Metro One
Private Limited, BSES Yamuna Power Limited, BSES
Rajdhani Power Limited, Prime Urban Development
India Limited, INEOS Styrolution India Limited and
Addivant India Private Limited.
40
She is the Chairperson of the CSR Committee and
Risk Management Committee and also member
of the Audit Committee, Stakeholder Relationship
Committee.
As on March 31, 2020, Ms. Ryna Karani held 100
equity shares of the Company.
Ms. Manjari Kacker, 68 years, holds a master’s
degree in Chemistry and a diploma in Business
Administration. She has more than 40 years of
experience in taxation, finance, administration and
vigilance. She was in the Indian Revenue Service
batch of 1974. She held various assignments during
her tenure in the tax department and was also a
member of the Central Board of Direct Taxes. She
has also served as the Functional Director (Vigilance
and Security) in Air lndia and has also represented
India in international conferences. Ms. Manjari
Kacker is also a Director in Dhanvarsha Finvest
Limited, EGK Foods Private Limited, Water Systems
& Infrastructure Development Services Private
Limited, Hindustan Gum and Chemicals Limited,
Zaffiro Learning Private Limited and Arshiya Limited.
She is the Chairperson of the Audit Committee and
also member of the Nomination and Remuneration
Committee, Stakeholder Relationship Committee
and Risk Managment Committee.
As on March 31, 2020, Ms. Manjari Kacker does
not hold any equity shares of the Company.
Shri Punit Garg, 56 years, a qualified Engineer, is
part of senior management team of Reliance Group
since 2001 and presently discharging responsibilities
as Executive Director and Chief Executive Officer of
the Company and is involved in taking a number of
strategic decisions.
Shri Garg has previously served as an Executive
Director on the Board of Reliance Communications
Limited. With rich experience of over 34 years,
Shri Garg has created and led billion dollar businesses.
As a visionary, strategist and team builder he has
driven profitable growth through innovation and
operational excellence.
He is also on the Board of Reliance Communications
Limited, BSES Yamuna Power Limited and BSES
Rajdhani Power Limited.
He is a member of the Audit Committee, Stakeholder
Relationship Committee, Risk Management
Committee and CSR Committee of the Board of
the Company.
As on March 31, 2020, Shri Punit Garg held 1500
equity shares of the Company.
Core Skills, Expertise and Competencies available
with the Board
The board comprises of highly qualified Members
who possess
skills, expertise and
competence that allow them to make effective
contributions to the Board and its Committees.
required
Reliance Infrastructure Limited
Corporate Governance Report
The core skills/ expertise/ competencies required in the Board in the context of the Company’s Businesses and sectors
functioning effectively as identified by the Board of Directors of the Company are tabulated below:
Core skills/
competencies/
expertise
Business Strategy
Business Policy
Business Development
Risk Management
Legal
Commercial
Project Management
Procurement
Engineering
Finance
Human Resource
Shri Anil
Ambani
Shri S Seth Shri Punit
Garg
Shri S S
Kohli
Shri K
Ravikumar
Ms. Ryna
Karani
Ms. Manjari
Kacker
Name of the Directors
-
-
-
-
-
-
-
Directorships in other Listed Entities
The details of the directorships held by the Directors in other listed entities as on March 31, 2020 are as follows.
Name of Director
Name of the Listed Entities
Category
Shri Anil D. Ambani
Reliance Power Limited
Reliance Capital Limited
Chairman - Promoter, Non Executive Non
Independent Director
Chairman - Promoter, Non Executive Non
Independent Director
Shri S Seth
Reliance Power Limited
Non Executive Non Independent Director
Shri Punit Garg
Reliance Communications Limited
Non Executive Non Independent Director
Shri S S Kohli
Asian Hotels (West) Limited
Non-Executive - Independent Director
Seamec Limited
Non-Executive - Independent Director
Ms. Ryna Karani
INEOS Styrolution India Limited
Non-Executive - Independent Director
Prime Urban Development India Limited
Non-Executive - Independent Director
Shri K Ravikumar
SPEL Semiconductor Limited
Non-Executive - Independent Director
Reliance Power Limited
Non-Executive - Independent Director
Ms. Manjari Kacker
Dhanvarsha Finvest Limited
Non-Executive - Independent Director
Arshiya Limited
Non-Executive - Independent Director
7.
Insurance coverage
The Company has obtained Directors’ and Officers’
liability insurance coverage in respect of any legal
action that might be initiated against directors
/ officers of the Company and its subsidiary
companies.
II. Audit Committee
The Audit Committee of the Board, constituted in terms
of Section 177 of the Act and the Listing Regulations,was
duly reconstituted during the year to give effect to the
changes in the Board Composition. The re-constituted
Audit Committee of the Board of Directors as on date
comprises of majority of Independent Directors namely
Ms. Manjari Kacker who is the Chairperson, Shri S S
Kohli, Shri K Ravikumar, Ms. Ryna Karani, Independent
Directors and Shri Punit Garg, Executive Director and
Chief Executive Officer. All Members of the Committee
are financially literate.
The Audit Committee, inter alia, advises the management
on the areas where systems, processes, measures for
controlling and monitoring revenue assurance, internal
audit and risk management can be improved.
The terms of reference, inter alia, comprises the
following:
1.
2.
Oversight of the Company’s financial reporting
process and the disclosure of its financial information
to ensure that the financial statement is correct,
sufficient and credible;
Recommendation
appointment,
remuneration and terms of appointment of auditors
of the Company;
the
for
41
Reliance Infrastructure Limited
Corporate Governance Report
3.
4.
Approval of payment to statutory auditors for any
other services rendered by statutory auditors;
Reviewing with the management, the annual
financial statements and auditor’s report thereon
before submission to the Board for approval, with
particular reference to:
a. Matters required to be included in the
Director’s Responsibility Statement to be
included in Boards’ Reports in terms of Section
134(3)(c) of the Act;
b.
Changes, if any, in accounting policies and
practices and reasons for the same;
c. Major accounting entries involving estimates
based on the exercise of judgement by
management;
d.
e.
f.
Significant adjustments made in the financial
statements arising out of audit findings;
Compliance with listing and other legal
requirements relating to financial statements;
Disclosure of any related party transactions;
and
g. Modified opinion(s) in the draft audit report.
Reviewing with the management, the quarterly
financial statements before submission to the board
for approval;
Reviewing, with the management, the statement
of uses/application of funds raised through an
issue (public issue, rights issue, preferential issue,
etc.), the statement of funds utilized for purposes
other than those stated in the offer document/
prospectus/notice and the report submitted by
the monitoring agency monitoring the utilisation
of proceeds of a public or rights issue and making
appropriate recommendations to the Board to take
up steps in this matter;
Review and monitor the auditors’ independence and
performance and effectiveness of audit process;
Subject to and conditional upon the approval
of the Board of Directors, approval of Related
Party Transactions (RPTs) in the form of specific
approval or omnibus approval including subsequent
modifications thereto is obtained and review
on quarterly basis, of RPTs entered into by the
Company pursuant to respective omnibus approval
given as above;
5.
6.
7.
8.
9.
Scrutiny of inter-corporate loans and investments;
10. Valuation of undertakings or assets of the Company,
wherever it is necessary;
11. Review the Company’s established system and
processes of internal financial controls and risk
management systems;
12. Reviewing with the management, performance of
statutory and internal auditors, adequacy of internal
control systems;
42
13. Reviewing the adequacy of internal audit function,
if any, including the structure of the internal audit
department, staffing and seniority of the official
heading
structure
reporting
the department,
coverage and frequency of internal audit;
14. Discussion with internal auditors of any significant
findings and follow up there on;
15. Reviewing the findings of any internal investigations
by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal
control systems of a material nature and reporting
the matter to the board;
16. Discussion with statutory auditors before the audit
commences, about the nature and scope of audit as
well as post-audit discussion to ascertain any area
of concern;
17. To look into the reasons for substantial defaults
in payment to the depositors, debenture holders,
shareholders (in case of non-payment of declared
dividends) and creditors;
18. To review the functioning of the Whistle Blower
mechanism;
19. Approval of appointment of Chief Financial Officer
after assessing the qualifications, experience and
background, etc. of the candidate;
20. Reviewing the utilization of loans and/or advances
from/investment by the holding company in the
subsidiary exceeding ` 100 crore or 10% of the
asset size of the subsidiary, whichever is lower
including existing loans/ advances/ investments;
21. Reviewing the compliance with the provisions
of the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015,
at least once in a financial year and shall also verify
that the systems for internal control are adequate
and are operating effectively; and
22. Carrying out any other function as is mentioned in
the terms of reference of the Audit Committee.
The Audit Committee is also authorised to:
a.
b.
c.
Investigate any activity within its terms of
reference;
Seek any information from any employee;
To have full access to information contained
in the records of the Company;
d. Obtain outside legal and professional advice;
e.
f.
g.
Secure attendance of outsiders with relevant
expertise, if it considers necessary;
Call for comments from the auditors about
internal control systems and scope of audit,
including the observations of the auditors;
Review
submission to the Board; and
financial
statements
before
h. Discuss any related issues with the internal
and statutory auditors and the management
of the Company.
Reliance Infrastructure Limited
Corporate Governance Report
The Audit Committee shall mandatorily review the
following information:
1. management discussion and analysis of financial
condition and results of operations;
2.
statement of significant related party transactions
(as defined by the audit committee), submitted by
management;
3. management letters / letters of internal control
weaknesses issued by the statutory auditors;
4.
5.
internal audit reports relating to internal control
weaknesses; and
appointment,
the
terms of
removal
remuneration of the chief internal auditor shall be
subject to review by the audit committee.
and
6.
statement of deviations:
(a)
(b)
quarterly statement of deviation(s) including
report of monitoring agency, if applicable,
submitted to stock exchange(s) in terms of
Regulation 32(1) of the listing regulations.
annual statement of funds utilized for
purposes other than those stated in the offer
document/ prospectus/notice in terms of
Regulation 32(7) of the listing regulations.
Attendance at the meetings of the Audit Committee
held during 2019-20
The Audit Committee held seven meetings during the year
on June 7, 2019, June 8, 2019, June 14, 2019, August
9, 2019, August 13, 2019, November 14, 2019 and
February 14, 2020. The maximum gap between any two
meetings was 92 days and the minimum gap was 1 day.
Attendance at the meeting of the Audit Committee held
during the financial year 2019-20 is as follows:
Members
Number of meetings
attended
held during
the year/
tenure
4
7
7
7
7
4
6
6
6
7
Ms. Manjari Kacker
(Inducted on 14.06.19)
Shri S S Kohli
Shri K Ravikumar
Ms. Ryna Karani
Shri Punit Garg
(Inducted on 06.04.19)
The Chairperson of the Audit Committee was not present
at the previous Annual General Meeting of the Company
and in her absence she had authorized Ms. Ryna Karani.
The Committee considered at its meetings all the matters
as per its terms of reference at periodic intervals.
The Company Secretary acts as the Secretary to the Audit
Committee.
During the year, the Committee discussed with the statutory
auditors of the Company, the overall scope and plans for
carrying out the independent audit. The management
represented to the Committee that the Company’s
financial statements were prepared in accordance with the
prevailing laws and regulations. The Committee discussed
the Company’s audited financial statements, the rationality
of significant judgments and clarity of disclosures in the
financial statements. Based on the review and discussions
conducted with the management and the auditors, the
Audit Committee believes that the Company’s financial
statements are fairly presented in conformity with the
prevailing laws and regulations in all material aspects.
The Committee reviewed that internal controls are in
place to ensure that the accounts of the Company are
properly maintained and that the accounting transactions
are in accordance with the prevailing laws and regulations.
While conducting such reviews, the Committee found no
material discrepancy or weakness in the internal control
systems of the Company. The Committee also reviewed
the financial policies of the Company and expressed its
satisfaction with the same. The Committee, after review,
expressed its satisfaction on the independence of both the
internal as well as the statutory auditors.
Pursuant to the requirements of Section 148 of the Act,
the Board has, based on the recommendation of the
Committee, appointed Cost Auditors to audit the cost
records of the Company. The cost audit reports were
placed and discussed at the Audit Committee Meeting.
III Nomination and Remuneration Committee
The Nomination
and Remuneration Committee,
constituted in terms of Section 178 of the Act and the
Listing Regulations, was duly reconstituted during the year
to give effect to the changes in the Board Composition.
re-constituted Nomination and Remuneration
The
Committee comprises of Shri K Ravikumar as Chairman
and Shri S S Kohli and Ms. Manjari Kacker as Members, as
on date.
The Company Secretary acts as the Secretary to the
Nomination and Remuneration Committee.
The terms of reference of the Committee, inter alia,
includes the following:
a)
b)
c)
d)
for determining
the criteria
Formulation of
qualifications, positive attributes and independence
of directors and recommend to the Board a policy,
relating to the remuneration of the directors, key
managerial personnel and other employees;
to formulate the criteria for evaluation of the
performance of the Independent Directors, the
Board and the committees thereof;
to devise a policy on board diversity;
to identify persons who are qualified to become
directors and who may be appointed in Senior
Management in accordance with the criteria laid
down and to recommend their appointment to
and/or removal from the Board;
43
Reliance Infrastructure Limited
Corporate Governance Report
e)
f)
g)
h)
i)
to formulate a process for selection and appointment
of new directors and succession plans;
to recommend to the Board from time to time, a
compensation structure for directors and the senior
management personnel.
to review and recommend to the Board whether
to extend or continue the term of appointment
of independent director on the basis of the report
of performance evaluation of the Independent
Directors.
to perform functions relating to all share based
employee benefits pursuant to the requirements
of Securities and Exchange Board of India (Share
Based Employees Benefits) Regulations, 2014.
to recommend to the Board all the remunerations
in whatever form payable to the senior managment
of the Company.
The Board has carried out the evaluation of the Board of
Directors during the year in terms of the criteria laid down
by the Nomination and Remuneration Committee, details
of which have been covered in the Director’s Report
forming part of this Annual Report.
The Chairman of the Nomination and Remuneration
Committee was present at the Annual General Meeting of
the Company held on September 30, 2019.
The Nomination and Remuneration Committee held two
meeting during the year on June 7, 2019 and August
13, 2019.
Attendance at the meeting of the Nomination and
Remuneration Committee held during the financial year
2019-20 is as follows:
Members
Number of
meetings held
during the
year/ tenure
Number of
meetings
attended
Shri S S Kohli
Shri K Ravikumar
Ms. Manjari Kacker
(Inducted on 14.06.19)
Shri B C Patnaik
(Ceased on 30.09.19)
2
2
1
2
2
2
1
1
Criteria for making payments to non-executive directors
remuneration
to non-executive directors
The
is
benchmarked with the relevant market and performance
oriented, balanced between financial and sectoral market
based on the comparative scales, aligned to corporate
goals, role assumed and number of meetings attended.
44
Details of Sitting Fees paid to the Non-executive
Directors during the financial year ended March 31,
2020
(Amount ` in lakh)
Sitting
Fees
Names
Sr
No.
1.
2.
3.
4.
Shri Anil D Ambani
Shri S Seth
Shri S S Kohli
Shri K Ravikumar
5. Ms. Ryna Karani
6. Ms. Manjari Kacker
(Inducted on 14.06.19)
7.
8.
9.
Shri B C Patnaik
(ceased on 30.09.19)
Lt. Gen Syed Ata Hasnain (Retd.)
(Inducted on 09.10.19 and ceased
on 18.03.20)
Shri Jai Anmol Ambani
(Inducted on 09.10.19 and ceased
on 31.01.20)
10. Shri Jai Anshul Ambani
(Inducted on 09.10.19 and ceased
on 31.01.20)
Total
Notes:
2.40
3.20
7.20
8.80
7.20
6.00
2.40
2.40
0.80
0.00
40.40
a.
b.
c.
d.
Pursuant to the limits approved by the Board, all
non-executive directors were paid sitting fees of
` 40,000 (excluding service tax/GST) for attending
each meeting of the Board and its Committees
No commission was paid to the directors during the
year.
There were no other pecuniary relationships or
transactions of non-executive directors vis-à-vis
the Company.
The Company has not issued any stock options to
its directors.
Details of payment to Executive Director:
Disclosure as required under Schedule V of the Act with
respect to the remuneration paid to Shri Punit Garg are as
under:
(i)
All elements of remuneration package such as
salary, benefits, bonuses, stock options, pensions
etc: ` 255 lakhs
(ii) Details of fixed component and performance linked
incentives along with the performance criteria:
Fixed component – ` 220 lakh
Perquisites – ` 35 lakh
Performance linked incentive – Nil
Reliance Infrastructure Limited
Corporate Governance Report
(iii)
Service contracts - No
Notice Period - 3 months
Severance fees - No
(iv) Stock option details, if any – Not Applicable
IV. Stakeholders Relationship Committee
The Stakeholders Relationship Committee was duly
reconstituted during the year to give effect to the changes
in the Board Composition. The reconstituted Stakeholders
Relationship Committee, as on date, comprises of Shri K
Ravikumar as Chairman and Shri Punit Garg, Ms. Manjari
Kacker and Ms. Ryna Karani as Members.
The composition and terms of reference of Stakeholders
Relationship Committee are in compliance with the
provisions of Section 178 of the Act, Listing Regulations
and other applicable laws.
The Company Secretary acts as the Secretary to the
Stakeholders Relationship Committee.
The terms of reference of the Committee, inter alia,
includes the following:
a.
b.
c.
d.
e.
f.
g.
h.
To consider and resolve the grievances of the security
holders of the Company including complaints
relating to transfer/transmission of shares, non
receipt of annual reports, new/duplicate certificates
and non receipt of declared dividends;
To review and approve the transfer, transmission
and transposition of securities of the Company or to
sub delegate such powers;
To approve the issue of new/duplicate certificates
for shares/debentures or such other securities;
To review the transfer of amount and shares to the
Investor Education and Protection Fund;
To review periodical reports which may be in the
interest of the stakeholders of the Company;
To review measures taken for effective exercise of
voting rights by shareholders;
To review adherence to the service standards
adopted by the Company in respect of various
services being rendered by the Registrar & Share
Transfer Agent;
To review various measures and initiatives taken
by the Company for reducing the quantum of
unclaimed dividends and ensuring timely receipt
of dividend warrants / annual reports / statutory
notices by the shareholders; and
i.
To carry out such other functions as may be
delegated by the Board.
Attendance at the meeting of the Stakeholders
Relationship Committee held during the Financial Year
2019-20 is as follows:
The Stakeholders Relationship Committee held four
meetings during the year on June 7, 2019, August 13,
2019, November 14, 2019 and February 14, 2020. The
maximum gap between any two meetings was 92 days
and the minimum gap was 66 days.
The meetings were attended by the Members as below:
Members
Shri K Ravikumar
Shri S Seth
(ceased to be a member
from 09.10.19)
Ms. Ryna Karani
Ms. Manjari Kacker
(Inducted on 14.06.19)
Shri Punit Garg
(Inducted on 06.04.19)
Shri Jai Anmol Anil Ambani
(Inducted on 09.10.19 and
ceased on 31.01.20)
Shri Jai Anshul Anil Ambani
(Inducted on 09.10.19 and
ceased on 31.01.20)
Number of meetings
attended
held during
the year/
tenure
4
2
4
3
4
1
1
4
2
3
3
4
1
0
V.
Corporate Social Responsibility (CSR) Committee
The CSR Committee was duly reconstituted during
the year to give effect to the changes in the Board
Composition. The
reconstituted Corporate Social
Responsibility (CSR) Committee, as on date consists of
Ms. Ryna Karani as Chairperson with Shri K Ravikumar,
Shri Punit Garg and Shri S S Kohli as other Members. The
Company Secretary is the Secretary to the Committee.
Pursuant to Section 135 of the Act, the Committee has
formulated and recommended to the Board the CSR
Policy indicating the activities to be undertaken. It also
recommends the amount of expenditure to be incurred
by way of CSR initiatives and monitors the CSR Plan and
activities conducted by the Company. The CSR Policy
and the Business Responsibility Policy of the Company
are also reviewed by the Committee from time to time.
The Committees’ constitution and the terms of reference
meet with the requirements of the Act.
During the year, Corporate Social Responsibility Committee
held one meeting i.e. on June 7, 2019. All the Members
were present at the meeting.
45
Reliance Infrastructure Limited
Corporate Governance Report
VI. Risk Management Committee
VIII. General Body Meetings
The Risk Management Committee, as on date comprises
of Ms. Ryna Karani as Chairperson and Shri S S Kohli, Shri
Punit Garg, Ms. Manjari Kacker and Shri K Ravikumar as
Members. The Committee has also Shri Sridhar Narasimhan,
Chief Financial Officer as member and Shri Amit Agarwal,
General Manager (Internal Auditor), as Member Secretary.
During the year, the Risk Management Committee was
duly reconstituted to give effect to the changes in the
Board Composition. However, the mandatory provisions of
the Listing Regulations are not applicable to the Company.
The Committee held four meetings during the financial
year 2019-20 on June 7, 2019, August 13, 2019,
November 14, 2019 and February 14, 2020.
Attendance at the meeting of the Risk Management
Committee held during the financial year 2019-20 is
as follows:
Members
Shri S S Kohli
Shri K Ravikumar
Ms. Ryna Karani
Ms. Manjari Kacker
(Inducted on 14.06.19)
Shri Punit Garg
(Inducted on 06.04.19)
Lt. Gen. Syed Ata Hasnain (Retd.)
(Inducted on 09.10.19 and
ceased on 18.03.20)
Number of Meetings
attended
held during
the year/
tenure
4
4
4
3
4
2
4
4
3
3
4
2
Shri B C Patnaik
(ceased on 30.09.19)
The terms of reference of the Committee are as under:
2
2
a.
b.
c.
d.
To assist the Board in its function of framing,
implementing, monitoring and reviewing the risk
management plan of the Company.
To lay down procedures to inform the Board
of Directors about the Risk Assessment and
minimisation procedures.
To review these procedures periodically and to
ensure that the executive management controls
these risks through properly defined framework.
To review and monitor the risk management plan,
Cyber Security and related risk.
The minutes of the meetings of all the Committees of the
Boards of Directors are placed before the Board. During
the year, the Board has accepted all the recommendations
of all Committees.
VII. Compliance Officer
Shri Paresh Rathod has been appointed as the, Company
Secretary and Compliance Officer, of the Company with
effect from August 16, 2019, in place of previous
incumbent Shri Anil C. Shah. The Compliance Officer is
entrusted with the role of complying with the requirements
of various provisions of the laws and regulations impacting
the Company’s business including the Listing Regulations
and the Uniform Listing Agreements entered into with the
Stock Exchanges.
46
1. Annual General Meeting
The Company held its last three Annual General
Meetings as under:
Financial
Year
Date and
Time
Whether Special Resolution
passed or not
2018-19 September
30, 2019 at
11:15 a.m.
Yes.
1. Appointment of Shri Punit Garg
as an Executive Director.
2. Re-appointment of Ms. Ryna
Karani as an Independent
Director.
3. Re-appointment of Shri S
S Kohli as an Independent
Director.
4. Re-appointment of Shri K
Ravikumar as an Independent
Director.
5. Private Placement of Non
Convertible Debentures (NCD)
and/or other Debt Securities.
2017-18 September
18, 2018 at
10:45 a.m.
Yes.
Private Placement of Non
Convertible Debentures (NCD)
and/or other Debt Securities
2016-17 September
26, 2017
at 12.00
noon
Yes.
Private Placement of Non-
Convertible Debentures
The Annual General Meeting for the year 2018-19
was held at Rama & Sundri Watumull Auditorium,
Vidasagar, Principle K M Kundnani Chowk, 124,
Dinshaw Wachha Road, Churchgate, Mumbai –
400 020 and the Annual General Meetings for
the year 2016-17 and 2017-18 were held at
Birla Matushri Sabhagar, 19 Marine Lines, Mumbai
400 020.
During the year, there were no Extraordinary General
Meetings held by the Company and no businesses
were transacted through postal ballot.
IX. Details of Utilisation
During the year, the company has not raised any funds
through preferential allotment or qualified Institutions
Placement as specified under Regulation 32 (7A) of the
Listing Regulations.
X. Means of Communication
a.
Quarterly Results
in
the Financial Express
Quarterly Results, in the ordinary course, are
published
(English)
newspaper circulating in substantially the whole
of India and in Navshakti (Marathi) newspaper
and are also posted on the Company’s website at
www.rinfra.com.
Reliance Infrastructure Limited
Corporate Governance Report
b. Media Releases and Presentations
g.
Unique Investor helpdesk:
Official media releases are sent to the Stock
Exchanges before their release to the media for
wider dissemination. Presentations made to media,
analysts, institutional investors, etc. are posted on
the Company’s website.
c.
Company Website
The Company’s website www.rinfra.com contains a
separate dedicated section on ‘Investor Relations’.
It contains comprehensive database of information
of interest to our investors including the financial
results and Annual Reports of the Company,
information on dividend declared by the Company,
any price sensitive information disclosed to the
regulatory authorities from time to time, business
activities and
rendered/facilities
extended by the Company to our investors, in a
user friendly manner. The basic information about
the Company as called for in terms of the Listing
Regulations is provided on the Company’s website
and the same is updated regularly.
the services
d.
Annual Report
The Annual Report containing, inter alia, Notice
of Annual General Meeting, Audited Financial
Statement, Consolidated Financial Statement,
Directors’ Report, Auditors’ Report and other
important information is circulated to Members and
others entitled thereto. The Business Responsibility
Report, Management Discussion and Analysis and
Corporate Governance Report also forms part of the
Annual Report and are displayed on the Company’s
website.
The Act read with the Rules made thereunder
and the Listing Regulations facilitate the service
of documents to Members through electronic
means. In compliance with the various relaxations
provided by SEBI and MCA due to COVID-19
Pandemic, the Company E-mails the soft copy of
the Annual Report to all those Members whose
E-mail Ids are available with the Company /
depositories or its Registrar and Transfer Agent
and has urged the other Members to register their
E-mail Ids to receive the said communication.
e.
NSE Electronic Application Processing System
(NEAPS):
The NEAPS is a web based system designed by NSE
for corporates. The Shareholding Pattern, Corporate
Governance Report, Corporate announcements,
media releases, financial results, Annual Report etc.
are filed electronically on NEAPS.
f.
BSE Corporate Compliance and Listing Centre
(“the Listing Centre”):
The Listing Centre is a web based application
designed by BSE for corporates. The Shareholding
Pattern, Corporate Governance Report, Corporate
announcements, Media Releases, financial results,
Annual Report etc. are filed electronically on the
Listing Centre.
Exclusively for investor servicing, the Company has
set up unique investor Help Desk with multiple
access modes as under:
Toll free no. (India)
Telephone no.
Facsimile no.
Email
: 1800 4250 999
: +91 40 6716 1500
: +91 40 6716 1791
: rinfra@kfintech.com
h.
Designated email-id:
The Company has also designated email-Id: rinfra.
investor@relianceada.com exclusively for investor
servicing.
i.
SEBI Complaint Redressal System (SCORES):
The investors’ complaints are also being processed
through the centralized web based complaint
redressal system. The salient features of SCORES
are availability of centralised data base of the
complaints and uploading online action taken
reports by the Company. Through SCORES, the
investors can view online, the actions taken and
current status of the complaints. In its efforts to
improve ease of doing business, SEBI has launched
a mobile app “SEBI SCORES”, making it easier for
investors to lodge their grievances with SEBI, as
they can now access SCORES at their convenience
of a smart phone.
XI Management Discussion and Analysis
A Management Discussion and Analysis forms part of this
annual report and includes discussions on various matters
specified under Regulation 34(2) and Schedule V of the
Listing Regulations.
XII Subsidiaries
All the subsidiary companies are managed by their
respective Boards. Their Board have the rights and
obligations to manage such companies in the best interest
of their stakeholders.
The Board reviews the performance of its subsidiary
companies, inter alia, by the following means:
a.
b.
c.
d.
The minutes of the meetings of the Boards of
the subsidiary companies are regularly / quarterly
placed before the Company’s Board of Directors.
Financial statement, in particular the investments
made by the unlisted subsidiary companies are
reviewed quarterly by the Audit Committee of the
Company.
A statement containing all significant transactions
and arrangements entered into by the unlisted
subsidiary companies is placed before the Audit
Committee / Board.
Quarterly review of Risk Management process
including that of the subsidiary companies is made
by the Risk Management Committee / Audit
Committee / Board.
47
Reliance Infrastructure Limited
Corporate Governance Report
The Company has formulated policy for determining
material subsidiaries which is put on Company’s
website with web link: https://www.rinfra.com/
documents/1142822/1189698/Policy_for_
Determination_of_Material_Subsidiary_updated.pdf
One of the Independent Directors is nominated on
the Board of the subsidiaries as and when a subsidiary
becomes an “unlisted material subsidiary” within
the meaning of the above expression in accordance
with Regulation 24, read with Regulation 16, of the
Listing Regulations. The Independent Directors of
the Company have been appointed on the Boards
of “unlisted material subsidiary” viz. Ms. Ryna Karani
and Shri S S Kohli on the Board of BSES Yamuna
Power Limited and BSES Rajdhani Power Limited.
All the unlisted material subsidiaries have undergone
Secretarial Audit by a practicing Company Secretary
and the secretarial audit report is annexed to their
annual report.
XIII Disclosures
a.
There has been no non-compliance by the
Company on any matter related to capital markets
during the last three financial years. No penalties or
strictures have been imposed on the Company by
the Stock Exchanges or SEBI or any other statutory
authority except for the fine in terms of circular No.
SEBI/HO/CFD/CMD/CIR/P/2018/77 dated May
3, 2018 paid by the Company for delay of 14 days
in approval of financial results for the quarter and
financial year ended March 31, 2019.
b.
Related Party Transactions:
During the financial year 2019-20, no transactions
of material nature have been entered into by
the Company that may have a potential conflict
with the interests of the Company. The details of
related party transactions are disclosed in Notes
to Financial statements. The policy on dealing
with Related Party Transactions is placed on the
Company’s website at weblink: https://www.rinfra.
com/documents/1142822/1189698/Related_
Party_Transactions_Policy_updated.pdf
c.
Accounting Treatment
In preparation of the financial statements, the
Company has followed the Accounting Standards
as prescribed under Companies (Indian Accounting
Standards) Rules, 2015 (Ind AS) and under Section
133 of the Act as applicable. The Accounting
Policies followed by the Company to the extent
relevant are set out elsewhere in the Annual Report.
d.
Code of Conduct
The Company has adopted the code of conduct
and ethics for directors and senior management.
The Code has been circulated to all the Members
of the Board and senior management and the same
has been put on the Company’s website at web
link:
https://www.rinfra.com/web/rinfra/Code-
of-Conduct-for-Directors. The Board Members and
48
senior management have affirmed their compliance
with the code and a declaration signed by the
Executive Director and Chief Executive Officer of
the Company is given below:
“It is hereby declared that the Company has
obtained from all Members of the Board and senior
management personnel affirmation that they have
complied with the Code of Conduct for Directors
and Senior Management of the Company for the
year 2019-20.”
Executive Director and Chief Executive Officer
Punit Garg
e.
CEO and CFO certification
Shri Punit Garg, Executive Director and Chief
Executive Officer and Shri Sridhar Narasimhan, Chief
Financial Officer of the Company have provided
certification on financial reporting and internal
controls to the Board as required under Regulation
17(8) of the Listing Regulations.
f.
Review of Directors’ Responsibility Statement
The Board in its report has confirmed that the
financial statements for the year ended March 31,
2020 have been prepared as per the applicable
accounting standards and policies and that sufficient
care has been taken for maintaining adequate
accounting records.
g.
Certificate from a Company Secretary in Practice
Pursuant to the provisions of the Schedule V of the
Listing Regulations, the Company has obtained a
certificate from M/s. Ashita Kaul and Associates,
Practicing Company Secretaries confirming that
none of the directors of the board of the company
have been debarred or disqualified from being
appointed or continuing as directors of companies
by the SEBI /Ministry of Corporate Affairs or any
other statutory authority. The copy of the same
forms part of this annual report.
XIV
Policy on prohibition of insider trading
The Company has formulated the “Reliance Infrastructure
Limited - Code of Practices and Procedures and Code
of Conduct to regulate, monitor and report trading
in securities and Fair Disclosure of Unpublished Price
Sensitive Information” (Code) in accordance with the
guidelines specified under the SEBI (Prohibition of Insider
Trading) Regulations, 2015 as amended from time to
time.
The Company Secretary is the Compliance Officer under
the Code responsible for complying with the procedures,
monitoring adherence to the rules for the preservation
of price sensitive information, pre-clearance of trades,
monitoring of trades and implementation of the Code
under the overall supervision of the Board. The Company’s
Code, inter alia, prohibits purchase and/or sale of securities
of the Company by an insider, while in possession of
unpublished price sensitive information in relation to
the Company and also during certain prohibited periods.
The Company’s Code is available on the Company’s
Reliance Infrastructure Limited
Corporate Governance Report
link: https://www.rinfra.com/
website at the web
documents/1142822/1189698/Rinfra_Revised_Code_
under_POIT_2020.pdf
XVII. Disclosures in relation to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
Pursuant to the SEBI (Prohibition of Insider Trading)
Regulations, 2015, the Trading window for dealing in the
securities of the company by the designated persons shall
remain closed during the period from end of every quarter
/ year till the expiry of 48 hours from the declaration of
quarterly / yearly financial results of the company.
XV
Compliance of Regulation 34 (3) and Para F of Schedule
V of the Listing Regulations
In terms of the disclosure requirement under Regulation 34
(3) read with Para F of Schedule V of Listing regulations,
the details of shareholders and the outstanding shares
lying in the “Reliance Infrastructure Limited - Unclaimed
Suspense Account” as on March 31, 2020 were as under:
No of
shareholders
No of
shares
2836 45237
11
94
Particulars
Sr.
No.
(a) Aggregate number of
shareholders and the
outstanding shares lying in
suspense account as on April
1, 2019
(b) Number of shareholders
who approached listed
entity for transfer of shares
from suspense account
during April 1, 2019 to
March 31, 2020
(c) Number of shareholders
11
94
to whom shares were
transferred from suspense
account during April 1,
2019 to March 31, 2020
(d) Number of Shares
transferred to IEPF
(e) Aggregate number of
shareholders and the
outstanding shares lying
in suspense account as on
March 31, 2020
2323 41087
502 4056
The voting rights on the shares outstanding in the ‘Reliance
Infrastructure Limited- Unclaimed Suspense Account’ as
on March 31, 2020 shall remain frozen till the rightful
owner of such shares claims the shares.
Wherever shareholders have claimed the share(s),
after proper verifications, share(s) were credited to the
respective beneficiary account.
As reported by Internal Complaint Committee, the details
of complaints are as under:
Sr.
No.
1
2
3
Particulars
Details
No. of complaints filed during the
financial year
No. of complaints disposed offduring
the financial year
No. of complaints pending as on end of
the financial year
Nil
Nil
Nil
XVIII Compliance with non mandatory requirements
a.
The Board
Our chairman is a non executive chairman and
is entitled to maintain chairman’s office at the
Company’s expense and also allowed reimbursement
of expenses incurred in performance of his duties.
b.
Separate posts of Chairman and CEO
The Company maintains separate posts of Chairman
and CEO. Shri Punit Garg is the Executive Director
and Chief Executive Officer of the Company.
c.
Audit Qualifications
The qualification and management response to it
are mentioned in the Director’s Report forming part
of this report.
d.
Reporting of Internal Auditor
The internal auditor reports directly to the Audit
Committee of the Company.
XIX General shareholder information
The mandatory and various additional information of
interest to investors are voluntarily furnished in a separate
section on investor information in this annual report.
Practicing Company Secretary’s certificate on corporate
governance
Certificate by M/s. Ashita Kaul & Associates, practicing
company secretaries, on compliance of Regulation 34(3)
of the Listing Regulations relating to corporate governance
is published at the end of this Report.
XVI. Fees to Statutory Auditors
Review of governance practices
The details of fees paid to M/s. Pathak H.D. and
Associates LLP, Chartered Accountants, Statutory Auditors
by the Company and its subsidiaries during the year ended
March 31, 2020 are as follows:
Sr. No. Particulars
1
2
3
Audit Fees
Certification Charges
Other Matters
Total
Amount (` In Lakhs)
77.55
1.89
-
79.44
We have in this report attempted to present the
governance practices and principles being followed at
Reliance Infrastructure Limited, as evolved over the
period, and as best suited to the needs of our business
and stakeholders.
Our disclosures and governance practices are continually
revisited, reviewed and revised to respond to the dynamic
needs of our business and ensure that our standards are at
par with the globally recognised practices of governance,
so as to meet the expectations of all our stakeholders.
49
Reliance Infrastructure Limited
Corporate Governance Report
Compliance of Corporate Governance requirements specified in Regulation 17 to 27 and Regulation 46(2)(b) to (i) of the Listing
Regulations
Particulars
Regulation Compliance
Compliance Observed
Sr.
No.
1.
Board of Directors
17
Status
Yes
Maximum Number of Directorships
17A
2.
Audit Committee
18
Yes
Yes
3. Nomination and Remuneration
19
Yes
Committee
4.
Stakeholders Relationship
Committee
5.
Risk Management Committee
6.
Vigil Mechanism
7.
Related Party Transactions
20
21
22
23
Yes
Yes
Yes
• Composition & Meetings
• Quorum of Board Meetings
• Recommendation of the Board
• Review of compliance reports & compliance certificate
• Plans for orderly succession for appointments
• Code of Conduct
• Fees / compensation to Non-Executive Directors
• Minimum information to be placed before the Board
• Risk assessment and management
• Performance evaluation
• Directorships held in Listed Entities
• Composition & Meetings
• Quorum
• Powers of the Committee
• Role of the Committee and review of information by the
Committee
• Composition & Meetings
• Quorum
• Role of the Committee
• Composition & Meetings
• Role of the Committee
• Composition & Meetings
• Role of the Committee
• Review of Vigil Mechanism for Directors and employees
• Direct access to Chairperson of Audit Committee
Yes
• Policy of Materiality of Related Party Transactions and
dealing with Related Party Transactions
• Approval including omnibus approval of Audit Committee
• Review of Related Party Transactions
• No material Related Party Transactions
• Disclosure to Stock Exchange & on Website
• Disclosure of Related Party Transactions on consolidated
basis
8.
Subsidiaries of the Company
24
Yes
• Appointment of Company’s Independent Director on the
Board of material subsidiary
• Review of financial statements of subsidiary by the Audit
Committee
• Minutes of the Board of Directors of the subsidiaries are
placed at the meeting of the Board of Directors
• Significant transactions and arrangements of subsidiary are
placed at the meeting of the Board of Directors
• Secretarial Compliance Report
• No alternate director for Independent Directors
• Maximum directorships and tenure
• Meetings of Independent Directors
• Cessation and appointment of Independent Directors
• Familiarisation of Independent Directors
• Declaration by Independent Directors
• Directors & Officers Insurance
Secretarial Compliance Report
9. Obligations with respect to
Independent Directors
24A
25
Yes
Yes
50
Reliance Infrastructure Limited Corporate Governance Report
Particulars
Sr.
No.
10. Obligations with respect to
employees including Senior
Management, Key Managerial
Personnel, Directors and Promoters
Regulation Compliance
Compliance Observed
26
Status
Yes
11. Other Corporate Governance
27
Yes
requirements
12. Website
• Memberships / Chairmanships in Committees
• Affirmation on compliance of Code of Conduct by Directors
and Senior Management
• Disclosure of shareholding by Non-Executive Directors
• Disclosures by Senior Management about potential conflicts
of interest
• No agreement with regard to compensation or profit sharing
in connection with dealings in securities of the Company by
Key Managerial Persons, Director and Promoter
• Compliance with discretionary requirements
• Filing of quarterly compliance report on Corporate Governance
46(2)(b)
to (i)
Yes
• Terms and conditions for appointment of Independent
Directors
• Composition of various Committees of the Board of Directors
• Code of Conduct of Board of Directors and Senior
Management Personnel
• Details of establishment of Vigil Mechanism / Whistle-
blower policy
• Policy on dealing with Related Party Transactions
• Policy for determining material subsidiaries
• Criteria of making payment to Non-executive Director
• Details of
familiarization programmes
imparted
to
Independent Directors
• All credit ratings obtained and revision, if any.
Practising Company Secretary’s Certificate Regarding Compliance of Conditions of Corporate Governance
To
The Members of Reliance Infrastructure Limited
We have examined the compliance of the conditions of Corporate Governance by Reliance Infrastructure Limited (‘the Company’) for
the year ended on March 31, 2020, as stipulated under regulations 17 to 27, clauses (b) to (i) of sub regulation (2) of regulation
46 and para C, D & E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (‘The Listing Regulations’).
The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited
to the review of procedures and implementation thereof, as adopted by the Company for ensuring compliance with conditions of
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the representations made by the
directors and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated
in the Listing Regulations for the financial year ended on March 31, 2020.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
The certificate is solely issued for the purpose of complying with the aforesaid Regulations and may not be suitable for any other
purpose.
For M/s. Ashita Kaul & Associates
Practising Company Secretaries
Proprietor
FCS 6988/ CP 6529
Place : Thane
Date : May 08, 2020
UDIN : F006988B000216670
51
Reliance Infrastructure Limited Certificate of Non-Disqualification of Directors
(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015)
To,
The Members
Reliance Infrastructure Limited
Reliance Centre, Ground Floor,
19, Walchand Hirachand Marg,
Ballard Estate, Mumbai-400001
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Reliance Infrastructure
Limited having CIN : L75100MH1929PLC001530 and having registered office at Reliance Centre, Ground Floor, 19, Walchand
Hirachand Marg, Ballard Estate, Mumbai-400001 (hereinafter referred to as ‘the Company’), produced before me by the Company
for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers,
I hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st
March, 2020, have been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and
Exchange Board of India, Ministry of Corporate Affairs or any other Statutory Authority.
List of Directors of Reliance Infrastructure Limited:
Sr. No. Name of Director
DIN
1.
2.
3.
4.
5.
6.
7.
8.
9.
Mr. Anil D. Ambani
Mr. S Seth
Mr. S S Kohli
Mr. K Ravikumar
Ms. Ryna Karani
Mr. B C Patnaik
Mr. Punit Garg
Ms. Manjari Kacker
Lt Gen. Syed Ata Hasnain (Retd.)
10.
11.
Mr. Jai Anmol Anil Ambani
Mr. Jai Anshul Anil Ambani
00004878
00004631
00169907
00119753
00116930
08384583
00004407
06945359
07257757
07591624
08054558
Date of appointment in
Company
Date of Cessation
18/01/2003
24/11/2000
14/02/2012
14/08/2012
20/09/2014
07/03/2019
06/04/2019
14/06/2019
09/10/2019
09/10/2019
09/10/2019
-
-
-
-
-
30/09/2019
-
-
18/03/2020
31/01/2020
31/01/2020
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. Our responsibility is to express an opinion on these based on our verification. This Certificate is neither an assurance as
to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs
of the Company.
For M/s. Ashita Kaul & Associates
Practising Company Secretaries
Proprietor
FCS 6988/ CP 6529
Place : Thane
Date : May 08, 2020
UDIN : F006988B000216648
52
Reliance Infrastructure Limited •
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Investor Information
Important Points
Investor should hold securities in dematerialised form as
transfer of shares in physical form is no longer permissible.
As mandated by SEBI, with effect from April 1, 2019, request
for transfer of securities shall not be processed unless the
securities are held in dematerialized form with a depository
except for transmission and transposition of securities.
Members are advised to dematerialise shares in the Company
to facilitate transfer of securities.
Holding securities in dematerialised form is beneficial to the
investors in the following manner:
A safe and convenient way to hold securities;
Elimination of risk(s) associated with physical certificates
such as bad delivery, fake securities, delays, thefts, etc;
Immediate transfer of securities;
No stamp duty on electronic transfer of securities;
Reduction in transaction cost;
Reduction in paperwork involved in transfer of securities;
No odd lot problem, even one share can be traded;
Availability of nomination facility;
b.
c.
are advised to contact their respective DPs for registering
the nomination.
are requested to register / update their e-mail address
with their respective DPs for receiving all communications
from the Company electronically.
The Securities and Exchange Board of India vide its
circular no. SEBI / HO / MIRSD / DOS3 / CIR / P
/ 2019 / 30 dated February 11, 2019, with a view
to address the difficulties in transfer of shares, faced
by non-residents and foreign nationals, has decided to
grant relaxations to non-residents from the requirement
to furnish PAN and permit them to transfer equity
shares held by them in listed entities to their immediate
relatives subject to the following conditions:
a.
b.
c.
The relaxation shall only be available for transfers
executed after January 1, 2016.
The relaxation shall only be available to non-
commercial transactions, i.e. transfer by way of gift
among immediate relatives.
The non-resident shall provide copy of an alternate
valid document to ascertain identity as well as the
non-resident status.
Ease in effecting change of address/bank account
details as change with Depository Participants (DPs) gets
registered with all companies in which investor holds
securities electronically;
Non-Resident Indian Members are requested to inform Kfintech,
the Company’s Registrar and Transfer Agent immediately on the
change in the residential status on return to India for permanent
settlement.
Easier transmission of securities as the same done by DPs
for all securities in demat account; and
Automatic credit into demat account of shares, arising out
of bonus/split/consolidation/merger/ etc.
Convenient method of consolidation of folios/ accounts;
investments
Instruments,
Holding
Government securities, Mutual Fund Units, etc. in a single
account;
in Equity, Debt
Ease of pledging of securities; and
Ease in monitoring of portfolio.
Members holding shares in physical mode:
a.
b.
c.
are required to submit their Permanent Account Number
(PAN) and bank account details to the Company /
Kfintech, if not registered with the Company as mandated
by SEBI.
are advised to register the nomination in respect
of their shareholding in the Company. Nomination
Form (SH-13) is put on the Company’s website and
can be accessed at
link https://www.rinfra.com/
documents/1142822/1189698/Nomination_Form_
SH_13_20200524.pdf
are requested to register / update their e-mail address with
the Company / Kfintech for receiving all communications
from the Company electronically.
Members holding shares in electronic mode:
a.
are requested to submit their PAN and bank account
details to their respective DPs with whom they are
maintaining their demat accounts.
Hold securities in consolidated form
Investors holding shares in multiple folios are requested to send
the share certificates to the Registrar and Transfer Agent and
consolidate their holdings in single folio. Holding of securities in
one folio enables shareholders to monitor the same with ease.
Link for updating PAN / Bank Details is provided on the
website of the Company.
Electronic Payment Services
Investors should avail the Electronic Payment Services for
payment of dividend as the same reduces risk attached to
physical dividend warrants. Some of the advantages of payment
through electronic credit services are as under:
•
•
•
•
•
Avoidance of frequent visits to banks for depositing the
physical instruments.
Prompt credit to the bank account of the investor through
electronic clearing.
Fraudulent encashment of warrants is avoided.
Exposure to delays / loss in postal service avoided.
As there can be no loss in transit of warrants, issue of
duplicate warrants is avoided.
Printing of bank account numbers, names and addresses of
bank branches on dividend warrants provide protection against
fraudulent encashment of dividend warrants. Members are
requested to provide the same to the Company’s RTA, KFin
Technologies Private Limited (Kfintech) for incorporation on their
dividend warrants.
53
Reliance Infrastructure Limited
Investor Information
Register for SMS alert facility
Investor should register with Depository Participants for the SMS
alert facility. Both Depositories viz. National Securities Depository
Limited (NSDL) and Central Depository Services (India) Limited
(CDSL) alert investors through SMS of the debits and credits in
their demat account.
Intimate mobile number
Shareholders are requested to intimate their mobile number and
changes therein, if any, to Kfintech, if shares are held in physical
form or to their DP if the holding is in electronic form, to receive
communications on corporate actions and other information of
the Company.
Submit nomination form and avoid transmission hassle
Nomination helps nominees to get the shares transmitted in their
favour without any hassles. Investors should get the nomination
registered with the Company in case of physical holding and
with their Depository Participants in case of shares held in
dematerialised form.
Form may be downloaded from the Company’s website, www.
rinfra.com under the section “Investor Relations”.
However, if shares are held in dematerialised form, nomination
has to be registered with the concerned Depository Participants
directly, as per the form prescribed by the Depository Participants.
Deal only with SEBI registered intermediaries
Investors should deal with SEBI registered intermediaries so that
in case of deficiency of services, investor may take up the matter
with SEBI.
Corporate benefits in electronic form
Investor holding shares in physical form should opt for corporate
benefits like bonus / split / consolidation / merger / etc in
electronic form by providing their demat account details to the
Company’s RTA.
Register e-mail address
Investors should register their email address with the Company/
Depository Participants. This will help them in receiving all
communication from the Company electronically at their email
address. This also avoids delay in receiving communications from
the Company. Prescribed form for registration may please be
downloaded from the Company’s website
Course of action for revalidation of dividend warrant for
previous years
Shareholders may write to the Company’s RTA, furnishing
the particulars of the dividend not received, and quoting the
folio number / DP ID and Client ID particulars (in case of
dematerialised shares), as the case may be and provide bank
details along with cancelled cheque bearing the name of the
shareholder for updation of bank details and payment of unpaid
dividend. The RTA would request the concerned shareholder to
execute an indemnity before processing the request. As per the
circular dated April 20, 2018 issued by SEBI, the unencashed
dividend can be remitted by electronic transfer only and no
duplicate dividend warrants will be issued by the Company.
The shareholders are advised to register their bank details with
the Company / RTA or their DPs, as the case may be, to claim
unencashed dividend from the Company.
Facility for a Basic Services Demat Account (BSDA)
SEBI has stated that all the depository participants shall make
54
available a BSDA for the shareholders unless otherwise opted
for regular demat account with (a) No Annual Maintenance
charges if the value of holding is up to ` 50,000 and (b) Annual
Maintenance charges not exceeding ` 100 for value of holding
from ` 50,001 to ` 2,00,000. (Refer Circular CIR/MRD/
DP/22/2012 dated August 27, 2012 and Circular CIR/MRD/
DP/20/2015 dated December 11, 2015).
Annual General Meeting
The 91st Annual General Meeting (AGM) has been convened and
will be held on Tuesday, June 23, 2020 at 02.30 P.M. (IST), through
Video Conferencing (VC) / Other Audio Visual Means (OAVM).
E-voting
The Members can cast their vote online through remote e-voting
from 10:00 A.M. on Friday, June 19, 2020 to 5:00 P.M. on
Monday, June 22, 2020. Further, the e-voting facility shall also
be made available to the shareholders present at the meeting
through VC/OAVM and have not cast their vote on resolution
through remote e-voting.
The Members who have cast their votes by remote e-voting prior
to the Meeting may also attend the Meeting but shall not be
entitled to cast their votes again at the Meeting.
The Members shall refer to the detailed procedure on remote
e-voting are given in the Notice and the e-voting instruction slip.
Financial year of the Company
The financial year of the Company is from April 1 to March 31
every year.
Website
The Company’s website www.rinfra.com contains a separate
dedicated section called “Investor Relations”. It contains
comprehensive data base of information of interest to our
investors including the financial results, annual reports, dividend
declared, any price sensitive information disclosed to the
regulatory authorities from time to time, business activities and
the services rendered/ facilities extended to our investors.
Dedicated email id for investors
For the convenience of our investors, the Company has designated
an email id for investors i.e. rinfra.investor@relianceada.com.
Registrar and Transfer Agents (RTA)
KFin Technologies Private Limited
(Unit: Reliance Infrastructure Limited)
Selenium Building, Tower – B,
Plot No. 31 & 32,
Financial District, Nanakramguda
Hyderabad - 500 032, Telangana.
Tel : +91 40 6716 1500
Fax : +91 40 6716 1791
Toll Free No. (India) : 1800 4250 999
Website: www. kfintech.com
Email : rinfra@kfintech.com
(Karvy Fintech Private Limited, the erstwhile Registrar and
Transfer Agent of the Company has changed its name to KFin
Technologies Private Limited, with effect from December
5, 2019.)
Shareholders/Investors are requested to forward share transfer
documents, dematerialisation requests through their Depository
Participant (DP) and other related correspondence directly to
Kfintech at the above address for speedy response.
Reliance Infrastructure Limited Investor Information
Dividend announcements
The Board of Directors of the Company has not recommended
any dividend for the financial year 2019-20.
Share transfer system
With a view to address the difficulties in transfer of shares,
faced by non-residents and foreign national, the Securities and
Exchange Board of India vide its circular no. SEBI/ HO/MIRSD/
DOS3/CIR/P/2019/30 dated February 11, 2019, has decided
to grant relaxations to non-residents from the requirement to
furnish PAN and permit them to transfer equity shares held by
them in listed entities to their immediate relatives subject to the
following conditions:
a.
b.
c.
The relaxation shall only be available for transfer executed
after January 1, 2016.
The relaxation shall only be available to non-commercial
transactions. i.e. transfer by way of gift among immediate
relatives.
The non-resident shall provide copy of an alternate valid
document to ascertain identity as well the non-resident
status.
Unclaimed dividend / Shares
Rules) have come into force with effect from September 7,
2016.
The Company has transferred the dividend for the years
1996-97 to 2011-12 remaining unclaimed for seven years
from the date of declaration to IEPF.
During the year under review, the Company transferred
` 1,76,25,777 from the unclaimed dividend account to the
Investor Education and Protection Fund, pertaining to the year
2011-12 pursuant to the provisions of the Companies Act,
2013.
During the year, the Company has also transferred to the IEPF
Authority 1,69,366 shares of ` 10 each, pertaining to the year
2011-12 in respect of which dividend had remained unpaid or
unclaimed for seven consecutive years or more, as on the due
date of transfer, i.e. November 11, 2019.
Details of shares transferred to the IEPF Authority are available
on the website of the Company and the same can be accessed
through the link: https://www.rinfra.com/web/rinfra/unpaid-
unclaimed-shares. The said details have also been uploaded on
the website of the IEPF authority and the same can be accessed
through the link www.iepf.gov.in
The provisions of Sections 124 and 125 on unclaimed dividend
and Investor Education and Protection Fund (IEPF) under the
Act and the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016, (IEPF
The dividend and other benefits, if any, for the following years
remaining unclaimed for seven years from the date of declaration
are required to be transferred by the Company to IEPF and the
various dates for transfer of such amount are as under:
Financial year
ended
Dividend per share
( `)
Date of declaration
Due for
transfer on
Outstanding unclaimed dividend
as on March 31, 2020
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
7.40
7.50
8.00
8.50
9.00
9.50
August 27, 2013
October 3, 2020
1,93,22,214.60
September 30,2014
November 6, 2021
2,03,12,737.50
September 30, 2015
November 6, 2022
2,28,99,736.00
September 27, 2016
November 4, 2023
2,61,10,665.50
September 26, 2017
November 2, 2024
2,94,19,749.00
September 18, 2018
October 25, 2025
2,26,00,538.00
Members who have so far not encashed dividend warrants for the
aforesaid years are requested to approach Kfintech immediately.
The Company shall transfer to IEPF within the stipulated period
(a) the unpaid or unclaimed dividend for the financial year 2012-
13; (b) the shares on which dividend has not been claimed or
encashed for last seven consecutive years or more.
to IEPF and no payment shall be made in respect of any such
claim. Any shareholder whose shares and unclaimed dividends
and sale proceeds of fractional shares has been transferred
to the Fund, may claim the shares or apply for claiming the
dividend transferred to IEPF by making an application in Form
IEPF 5 available on the website www.iepf.gov.in along with the
applicable fee.
The Company has individually communicated to the concerned
shareholders whose shares are liable to be transferred to the
IEPF, to enable them to take appropriate action for claiming the
unclaimed dividends and shares, if any, by due date, failing which
the Company would transfer the aforesaid shares to the IEPF as
per the procedure set out in the Rules.
Members are requested to note that no claims shall lie against the
Company in respect of their shares or the amounts so transferred
The Company has uploaded the details of unpaid and unclaimed
amounts lying with the Company as on September 30, 2019
(date of last Annual General Meeting) and the details of such
shareholders and shares due for transfer on the website of
the Company (www.rinfra.com), as also on the website of the
Ministry of Corporate Affairs. The voting rights on the shares
transferred to IEPF Authority shall remain frozen till the rightful
owner claims the shares.
55
Reliance Infrastructure Limited Investor Information
Shareholding Pattern
Category of shareholders
Sl.
No.
(A)
Shareholding of Promoter and Promoter Group
(i)
(ii)
Indian
Foreign
Sub Total (A)
(B)
Public shareholding
(i)
Institutions:
As on 31.03.2020
As on 31.03.2019
Number of
Shares
%
Number of
Shares
%
3,83,73,361
14.59 10,63,58,031
40.44
-
-
-
-
3,83,73,361
14.59 10,63,58,031
40.44
Insurance Companies
1,24,54,551
4.74
1,28,22,227
Foreign Institutional Investors (FII) /
3,47,42,887
13.21
7,97,53,471
Foreign Portfolio Investors (FPI)
Mutual Funds
Financial Institutions/Banks
Others
(ii) Non-institutions
Sub Total (B)
(C)
Shares held by Custodian and against which Depositary Receipts
have been issued -
Sub Total (C)
(D)
ESOS Trust
Sub Total (D)
-
34,571
1,22,05,341
1,29,578
-
0.01
4.64
0.06
-
36,69,201
57,31,669
1,31,208
16,27,24,799
61.87
5,06,04,868
22,22,91,727
84.53 15,27,12,644
18,74,912
0.71
34,69,325
18,74,912
4,50,000
4,50,000
0.71
0.17
0.17
34,69,325
4,50,000
4,50,000
4.88
30.32
-
1.40
2.18
0.05
19.24
58.07
1.32
1.32
0.17
0.17
Grand Total (A) + (B) + (C) + (D)
26,29,90,000
100.00 26,29,90,000
100.00
* Shares held by ESOS Trust have been shown as Non-Promoter Non-Public as per Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) with effect from December 1, 2015.
Distribution of shareholding
Number of shares Number of Shareholders
as on 31.03.2020
Total shares
as on 31.03.2020
Number of Shareholders
as on 31.03.2019
Total shares
as on 31.03.2019
Number
%
Number
%
Number
%
Number
%
1 – 500
501 - 5,000
5,001 - 1,00,000
1,00,001and above
7,65,866
22,802
3,115
190
96.71
2,39,09,072
2.88
0.39
0.02
3,38,86,352
4,86,20,924
15,65,73,652
9.09
12.89
18.49
59.53
7,86,161
98.71
1,99,83,828
9,290
819
156
1.17
0.10
1,20,48,074
1,54,57,297
0.02 21,55,00,801
81.94
7.60
4.58
5.88
Total
7,91,973
100.00
26,29,90,000
100.00
7,96,426
100.00 26,29,90,000
100.00
Dematerialization of shares and liquidity
The Company was among the first few companies to admit its shares to the depositary system of National Securities Depository
Limited (NSDL) for dematerialization of shares. The International Securities Identification Number (ISIN) allotted to the Company is
INE036A01016. The Company was the first to admit its shares and also the first to go ‘live’ on to the depositary system of Central
Depository Services (India) Limited (CDSL) for dematerialization of shares. The equity shares of the Company are compulsorily traded
in dematerialized form as mandated by the Securities and Exchange Board of India (SEBI).
Status of dematerialization of Shares
As on March 31, 2020, 98.94 per cent of the Company’s equity shares are held in dematerialised form.
56
Reliance Infrastructure Limited
Investor Information
Investors’ Grievances attended
Received From
Securities and Exchange Board of India
Stock Exchanges
NSDL/CDSL/ROC
Direct from investors
Total
Analysis of Grievances
Particulars
Non-receipt of dividend warrants
Non-receipt of share certificates
Others
Total
Received during
April to March
Redressed during
April to March
2019-20
33
8
1
0
42
2018-19
72
11
10
13
106
2019-20
33
8
1
0
42
2018-19
72
11
10
13
106
Pending as on
2019-20
0
0
0
0
2018-19
0
0
0
0
0
0
Number
Percentage
2019-20
4
0
38
42
2018-19
26
0
80
106
2019-20
9.52
0.00
90.48
100.00
2018-19
24.53
0.00
75.47
100.00
There was no complaint pending as on March 31, 2020.
Notes:
1
2
Investors’ queries / grievances are normally attended within a period of 3 days from the date of receipt thereof, except in
cases involving external agencies or compliance with longer procedural requirements specified by the authorities concerned.
The queries and grievances received during 2019-20 correspond to 0.005 per cent (Previous Year 0.013 per cent) of the
number of Members.
Legal proceedings
There are certain pending cases relating to disputes over title to shares, in which the Company has been made a party. These cases
are, however, not material in nature.
Equity History
Sr.
No.
1
2
3
4
5
6
Dates
01.04.2008
01.04.2008
31.03.2010
07.01.2011
21.04.2011 to
13.02.2012
31.03.2020
Notes:
Particulars
Price per
equity Shares (`)
Number of
Shares
Outstanding equity shares
Extinguishment of shares consequent to
Buy-back 1 and 2
Allotment of shares on conversion of warrants3
Allotment of shares on conversion of warrants3
Extinguishment of shares consequent to Buy-Back4
Cumulative
Total
23,65,30,262
22,52,70,262
N.A - 1,12,60,000
928.89 +1,96,00,000
24,48,70,262
928.89 + 2,25,50,000
- 44,30,262
N.A
26,74,20,262
26,29,90,000
Total Number of outstanding equity shares
26,29,90,000
1.
2
Pursuant to the approval of the Board of Directors on March 5, 2008 the Company bought-back 87,60,000 equity shares
from March 5, 2008 up to February 6, 2009.
Pursuant to the approval accorded by the shareholders on April 17, 2008, the Company bought-back 25,00,000 equity
shares from February 25, 2009 up to April 16, 2009.
3 Warrants converted into Equity shares at a price of ` 928.89 per share. The Company had on July 9, 2009 allotted 4,29,00,000
warrants of ` 928.89 (including a premium of ` 918.89) each on preferential basis to one of the promoter companies, Reliance
Project Ventures and Management Private Limited (RPVMPL) (Formerly Known as AAA Project Ventures Private Limited). The
warrants were convertible into equity shares of ` 10 each at a premium of ` 918.89 per equity share on or before January 8,
2011. Out of 4,29,00,000 warrants, the warrant holder exercised its option to convert 1,96,00,000 warrants and it was allotted
1,96,00,000 equity shares of ` 10 each at a price of ` 928.89 (including a premium of ` 918.89) on March 31, 2010.
Further, on January 7, 2011, RPVMPL exercised its option to convert 2,25,50,000 warrants and it was allotted 2,25,50,000
equity shares of ` 10 each at a premium of ` 918.89 per equity share. The balance 7,50,000 warrants have been cancelled
and the amount of ` 17,41,66,875 paid thereon has been forfeited by the Company. As on March 31, 2011, there were no
warrants remaining outstanding.
57
Reliance Infrastructure Limited Investor Information
4
Pursuant to the approval of the Board of Directors on February 14, 2011, the Company bought-back 44,30,262 equity shares
from April 11, 2011 to February 13, 2012.
Stock Price and Volume
Financial Year 2019-20
BSE Limited
Month
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
High
`
146.25
127.00
104.00
59.45
53.65
42.20
35.25
49.40
29.40
33.25
24.35
19.90
Low
`
Volume
(Nos.)
106.00 2,05,02,902
96.75 2,50,67,529
37.30 9,48,97,314
41.25 8,01,73,200
33.15 5,77,85,227
28.50 4,04,59,377
18.00 1,67,49,797
26.00 1,56,42,910
19.90
92,29,511
19.25 1,68,48,083
18.40 1,15,84,919
8.65
50,50,807
National Stock Exchange
of India Limited
High
`
146.40
126.85
103.80
59.50
53.70
42.30
35.00
49.05
29.40
32.95
24.35
20.10
Low
`
Volume
(Nos.)
105.50 18,07,43,519
96.60 23,19,35,146
37.25 90,00,34,235
41.25 68,06,07,423
33.05 56,28,65,984
28.65 29,89,13,054
18.00 10,56,18,388
26.05
19.90
9,98,30,359
6,52,73,202
19.20 12,15,69,852
18.30
8,79,09,453
8.65
5,12,63,629
GDRs were issued on March 8, 1996 and each GDR represents 3 equity shares. Issue price per GDR was US$ 14.40. Exchange
rate 1 US$ = ` 75.3245 as on March 31, 2020.
Stock Exchange listings
Note:
The Company’s equity shares are actively traded on BSE
Limited (BSE) and the National Stock Exchange of India
Limited (NSE).
An Index Scrip:
Equity Shares of the Company are included in the indices
viz. BSE-500, BSE-Power, S&P BSE GREENEX, BSE Dollex,
CNX Infrastructure, CNX Service Sector, Nifty Midcap 50
Listings on Stock Exchanges
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers
Dalal Street, Fort
Mumbai 400001
Website : www.bseindia.com
Stock codes
BSE Limited
National Stock Exchange
of India Limited (NSE)
Exchange Plaza, 5th Floor
Plot No C /1, G Block
Bandra-Kurla Complex
Bandra (East),
Mumbai 400 051
Website : www.nseindia.com
: 500390
National Stock Exchange of India Limited
: RELINFRA
ISIN
ISIN for equity shares: INE036A01016
Global Depository Receipts (GDRs)
London Stock Exchange (LSE),
10, Paternoster Square London
EC4M 7 LS, United Kingdom,
Website: www.londonstockexchange.com
The GDRs of the Company are traded on the electronic
screen based quotation system, the SEAQ (Securities
Exchange Automated Quotation) International, on the
portal system of the NASDAQ of the U.S.A. and also over
the counter at London, New York and Hong Kong.
1.
2.
Depository bank for GDR holders
The Bank of New York Mellon Corporation,
101 Barclay Street,
22nd Floor
New York NY 10286 USA
Domestic Custodian
ICICI Bank Limited, Securities Market Services
Empire Complex, F7/E7 1st Floor
414 Senapati Bapat Marg,
Lower Parel, Mumbai 400 013
Security Codes of GDRs
Master Rule
144A GDRs
Master Regulations
GDRs
CUSIP
ISIN
75945E109
US75945E1091 USY097891193
Y09789119
Common Code 6099853
6099853
Outstanding GDRs of the Company, conversion date and likely
impact on equity
Outstanding GDRs as on March 31, 2020 represent 18,74,912
equity shares constituting 0.71 per cent of the paid-up equity
share capital of the Company. Each GDR represent three
underlying equity shares in the Company.
58
Reliance Infrastructure Limited
Investor Information
Debt Securities
The Debt Securities of the Company are listed on the Wholesale Debt Market (WDM) Segment of BSE and NSE.
Debenture Trustees
Axis Trustee Services Limited
Axis House C-2,
Wadia International Centre
Pandurang Budhkar Marg,
Worli, Mumbai 400 025
Website:www.axistrustee.com
Payment of Listing Fees and Depository Fees
IDBI Trusteeship Services Limited
Asian Building, Ground Floor 17
R Kamani Marg
Ballard Estate,
Mumbai 400 001
Website:www.idbitrustee.com
Annual Listing fees to the Stock exchanges and annual custody/issuer fees to the depositories for the year 2020-21 will be paid in
due course by the Company.
Credit Rating & Details of Revision
Rating Agency
Type of Instrument
Rating as on April 1, 2019
Rating as on March 31, 2020
CARE Ratings Limited1& 2 Non-Convertible Debentures
issued on Private Placement basis
Long Term Loans
Short Term Bank Facilities
CARE B; Stable – Issuer not
Co-operating
CARE B; Stable – Issuer not
Co-operating
CARE A4 – Issuer not
Co-operating
India Rating and Research
Private Limited3 & 4
Non-Convertible Debentures
issued on Private Placement basis
IND C
CARE D – Issuer not Co-operating
CARE D – Issuer not Co-operating
CARE D – Issuer not Co-operating
IND C – Issuer not Co-operating
Bank Facilities (Long Term / Short
Term)
IND C / IND A4
IND D – Issuer not Co-operating
Brickwork Ratings India
Private Limited5
Long Terms Loans
BWR C – Issuer not
Co-operating
BWR D – Issuer not Co-operating
Notes:
1.
2.
CARE Rating from A+ (under Credit Watch) to A+ (under
Credit watch with Developing Implications) – 14.04.2017,
to A- (under Credit watch with Negative Implications) –
02.09.2017, to A- (under Credit watch with Developing
Implications) – 02.01.2018, to BBB+ (under Credit
watch with Developing Implications) – 27.07.2018, to
B (under Credit watch with Developing Implications) –
31.07.2018, to B (Stable) – 26.11.2018, to B (Stable
– Issuer not Co-operating) – 09.01.2019, to C (Issuer
not Co-operating) – 25.06.2019, to D (Issuer not Co-
operating) – 23.01.2020.
CARE Rating from A1+ (under Credit Watch) to A1+
(under Credit watch with Developing Implications) –
14.04.2017, to A2+ (under Credit watch with Negative
Implications) – 02.09.2017, to A2+ (under Credit
watch with Developing Implications) – 02.01.2018, to
A2 (under Credit watch with Developing Implications) –
27.07.2018, to A4 (under Credit watch with Developing
Implications) – 31.07.2018, to A4 – 26.11.2018, to A4
(Issuer not Co-operating) – 09.01.2019, to D (Issuer not
Co-operating) – 25.06.2019.
3.
4.
5.
Indian Ratings from A+/RWN to A/RWN – 04.10.2017,
to A/RWE – 23.03.2018, to BBB+/RWN – 18.05.2018,
to C – 01.08.2018, to C (Issuer not Co-operating) –
21.06.2019.
Indian Ratings from A+/RWN/A1+/RWN to A/RWN/
A1/RWN – 04.10.2017,
to A/RWE/A1/RWE –
23.03.2018, to BBB+/RWN/A2+/RWN – 18.05.2018,
to C/A4 – 01.08.2018, to D (Issuer not Co-operating) –
21.06.2019.
BWR Rating from AA- (Credit watch with developing
implications) to BBB+ (credit watch with developing
implications) –30.07.2018, to C – 01.08.2018, to C
(Issuer not co-operating) – 15.02.2019, to D (Issuer not
Co-operating) – 28.06.2019.
Share Price Performance in comparison with broad based
indices – BSE Sensex and NSE Nifty
Period
RInfra (%)
Sensex BSE
(%)
NIFTY NSE
(%)
FY 2019-20
2 years
3 years
(92.55)
(97.61)
(98.21)
(23.80)
(10.62)
(0.51)
(26.30)
(14.99)
(6.28)
59
Reliance Infrastructure Limited Investor Information
Commodity price risks or foreign exchange risk and hedging activities
The Company does not have any exposure to commodity price risks. However, the foreign exchange exposure and the interest rate
risk have not been hedged by any derivative instrument or otherwise.
Key Financial Reporting Dates for Financial Year 2020-21
Unaudited results for the First Quarter ended June 30, 2020
:
On or before August 14, 2020
Unaudited results for the Second Quarter and half year ending September 30, 2020 :
On or before November 14, 2020
Unaudited results for the Third Quarter ending December 31, 2020
Audited results for the Financial Year 2020-21
:
:
On or before February 14, 2021
On or before May 30, 2021
Depository services
For guidance on depository services, shareholders may write
to the Registrar and Transfer Agent (RTA) of the Company or
National Securities Depository Limited, Trade World, A Wing, 4th
and 5th Floors, Kamala Mills Compound, Lower Parel, Mumbai
400 013, website: www.nsdl.co.in or Central Depository Services
(India) Limited, Unit No. A-2501, A Wing, Marathon Futurex,
25th Floor, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel
(E), Mumbai 400 013 website: www.cdslindia.com
Communication to Members
Company are listed within 30 days of the end of each quarter
and the certificate is also placed before the Board of Directors
of the Company.
Investors’ correspondence may be addressed to the Registrar
and Transfer Agent of the Company
Shareholders/Investors are requested to forward documents
related to share transfer, dematerialisation requests (through
their respective Depository Participant) and other related
correspondences directly to Kfintech at the below mentioned
address for speedy response:
The Company’s quarterly financial results, audited accounts,
corporate announcements, media releases and details of
significant developments are also made available on the
Company’s website: www.rinfra.com.
Reconciliation of share capital audit
The Securities and Exchange Board of India has directed that
all issuer companies shall submit a report reconciling the total
shares held in both the depositories viz. NSDL and CDSL and
in physical form with the total issued/paid up capital. The said
certificate, duly certified by a qualified Chartered Accountant is
submitted to the stock exchanges where the securities of the
KFin Technologies Private Limited
(Unit: Reliance Infrastructure Limited)
Selenium Building, Tower – B, Plot No. 31 & 32,
Financial District, Nanakramguda,
Hyderabad - 500 032, Telangana.
Email : rinfra@kfintech.com
Website: www.kfintech.com
Tel : +91 40 6716 1500
Fax : +91 40 6716 1791
Toll Free No. (India) : 1800 4250 999
Shareholders/Investors may send the above correspondence at the following address:
Queries relating to financial statement of the Company may be
Correspondence on investor services may be addressed to:
addressed to:
Chief Financial Officer
Reliance Infrastructure Limited
Reliance Centre, Ground Floor
19, Walchand Hirachand Marg,
Ballard Estate,
Mumbai – 400001
Tele : +91 22 4303 1000
Fax : +91 22 4303 8662
The Company Secretary
Reliance Infrastructure Limited
Reliance Centre, Ground Floor
19, Walchand Hirachand Marg,
Ballard Estate,
Mumbai – 400001
Tele
: +91 22 4303 1000
Fax : +91 22 4303 8662
Email : rinfra.investor@relianceada.com
Email : rinfra.investor@relianceada.com
Plant Locations
1.
2.
Samalkot Power Plant: Industrial Devp. Area Pedapuram, Samalkot 533 440 Semandhara
Goa Power Plant: Opp. Sancoale Industrial Estate, Zuarinagar 403 726 Sancoale Mormugao, Goa
3. Wind Farm: Near Aimangala 577, 558 Chitradurga District Karnataka.
60
Reliance Infrastructure Limited Standalone Financial
Statement
61
Reliance Infrastructure Limited Independent Auditor’s Report on the Standalone Financial Statements
To the Members of Reliance Infrastructure Limited
Report on the Audit of the Standalone Financial Statements
Disclaimer of Opinion
We were engaged to audit the accompanying standalone
financial statements of Reliance Infrastructure Limited (“the
Company”), which comprise the standalone balance sheet as at
March 31, 2020, the standalone statement of profit and loss
(including other comprehensive income), standalone statement
of changes in equity and standalone statement of cash flows
for the year then ended, and notes to the standalone financial
statements, including a summary of the significant accounting
policies and other explanatory information (hereinafter referred
to as “the standalone financial statements”).
We do not express an opinion on the accompanying standalone
financial statements of the Company. Because of the
significance of the matter described in the Basis for Disclaimer
of Opinion section of our report, we have not been able to
obtain sufficient appropriate audit evidence to provide a basis
for an audit opinion on these standalone financial statements.
Basis for Disclaimer of Opinion
1. We refer to Note 40 to the standalone financial statements
regarding the Company’s exposure in an EPC Company as
on March 31, 2020 aggregating to ` 8,066.08 Crore (net
of provision of ` 3,972.17 Crore). Further, the Company
has also provided corporate guarantees aggregating to `
1,775 Crore on behalf of the aforesaid EPC Company
towards borrowings of the EPC Company.
According to the Management of the Company, these
amounts have been funded mainly for general corporate
purposes and towards funding of working capital
requirements of the party which has been engaged in
providing Engineering, Procurement and Construction
(EPC) services primarily to the Company and its subsidiaries
and its associates and the EPC Company will be able to
meet its obligation.
As referred to in the above note, the Company has further
provided Corporate Guarantees of ` 4,895.87 Crore in
favour of certain companies towards their borrowings.
According to the Management of the Company these
amounts have been given for general corporate purposes.
We were unable to obtain sufficient and appropriate
audit evidence about the relationship, recoverability and
possible obligation towards the Corporate Guarantees
given. Accordingly, we are unable to determine the
consequential
implications arising therefrom in the
standalone financial statements of the Company.
2. We refer to Note 42 to the standalone financial statements
wherein the loss on invocation of shares held in Reliance
Power Limited (RPower) amounting to ` 3,050.98 Crore
for the year ended March 31, 2020 has been adjusted
against the capital reserve. The above treatment of loss
on invocation of shares is not accordance with the Ind AS
28 “Investments in Associates and Joint Ventures” and Ind
AS 1 “Presentation of Financial Statements”.
Further, due to the invocation of shares as stated above,
RPower ceases to be an associate of the Company.
The balance investments in RPower have been carried
62
at fair value in accordance with Ind AS 109 “Financial
Instruments” and valued at current market price and loss
on fair valuation amounting to ` 1,973.90 Crore has been
adjusted against the capital reserve. The above treatment
is not in accordance with the Ind AS 1 “Presentation
of Financial Statements” and Ind AS 109 “Financial
Instruments”.
Had the Company followed the treatments prescribed under the
above mentioned Ind AS’s the Profit before tax for the year
ended would have been lower by ` 5,024.88 Crore and capital
reserve would have been higher by an equivalent amount.
Material Uncertainty Related to Going Concern
We draw attention to Note 52 to the standalone financial
statements, wherein the Company has outstanding obligations
to lenders and the Company is also a guarantor for its
subsidiaries and associates whose loans have also fallen due
which indicate that material uncertainty exists that may cast
significant doubt on the Company’s ability to continue as a
going concern. However, for the reasons more fully described
in the aforesaid note the accounts of the Company have been
prepared as a Going Concern.
Our opinion on the standalone financial statements is not
modified in respect of this matter.
Emphasis of matter
1. We draw attention to Note 38 to the standalone financial
statements regarding the Scheme of Amalgamation (‘the
Scheme’) between Reliance Infraprojects Limited (wholly
owned subsidiary of the Company) and the Company
sanctioned by the Hon’ble High Court of Judicature at
Bombay vide its order dated March 30, 2011, wherein
the Company, as determined by the Board of Directors, is
permitted to adjust foreign exchange/derivative/hedging
losses/gains debited/credited to the Statement of Profit
and Loss by a corresponding withdrawal from or credit to
General Reserve which overrides the relevant provisions
of Ind AS – 1 ‘Presentation of financial statements’. The
net foreign exchange gain of ` 141.41 Crore for the year
ended March 31, 2020 has been credited to Statement
of Profit and Loss and an equivalent amount has been
transferred to General Reserve in terms of the Scheme.
Had such transfer not been made, profit before tax for
the year ended March 31, 2020 would have been higher
by ` 141.41 Crore and General Reserve would have been
lower by an equivalent amount.
2. We draw attention to Note 14(b) to the standalone
financial statements regarding KM Toll Road Private Limited
(KMTR), a subsidiary of the Company, has terminated the
Concession Agreement with National Highways Authority of
India (NHAI) for Kandla Mundra Road Project (Project) on
May 7, 2019, on account of Material Breach and Event of
Default under the provisions of the Concession Agreement
by NHAI. The Company is confident of recovering its entire
investment of ` 544.94 Crore in KMTR, as at March 31,
2020 and no impairment has been considered necessary
against the above investment for the reasons stated in the
aforesaid note.
3. We draw attention to Note 45 to the standalone financial
statements which describes the impairment assessment
Reliance Infrastructure Limited
Independent Auditor’s Report on the Standalone Financial Statements
performed by the Company in respect of its receivables of
` 792.44 Crore from Reliance Power Limited (RPower) in
accordance with Ind A S 36 “Impairment of assets” / Ind
AS 109 “Financial Instruments”. This assessment involves
significant management judgment and estimates on the
valuation methodology and various assumptions used in
determination of value in use/fair value by independent
valuation experts / management as more fully described
in the aforesaid note. Based on management’s assessment
and independent valuation reports, no impairment is
considered necessary on the receivables.
4. We draw attention to Note 53 to the standalone financial
statements, as regards to the management evaluation of
COVID – 19 impact on the future performance of the
Company.
Our opinion on the standalone financial statements is not
modified in respect of the above matters.
Management’s Responsibility
Financial Statements
for
the Standalone
The Company’s management and Board of Directors are
responsible for the matters stated in section 134(5) of the
Companies Act 2013 (“Act”) with respect to the preparation
of these standalone financial statements that give a true and
fair view of the state of affairs, profits and other comprehensive
income, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance
of adequate internal financial controls that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation
of the standalone financial statements that give a true and fair
view and are free from material misstatement, whether due to
fraud or error.
In preparing the standalone financial statements, management
and Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing the
Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements
Our responsibility is to conduct an audit of the standalone
financial statements in accordance with Standards on Auditing
and to issue an auditor’s report. However, because of the
matter described in the Basis for Disclaimer of Opinion section
of our report, we were not able to obtain sufficient appropriate
audit evidence to provide a basis for an audit opinion on these
standalone financial statements.
We are independent of the Company in accordance with the
Code of Ethics and provisions of the Act that are relevant to
our audit of the standalone financial statements in India under
the Act, and we have fulfilled our other ethical responsibilities in
accordance with the Code of Ethics and the requirements under
the Act.
Report on Other Legal and Regulatory Requirements
1.
As required by the Companies (Auditors’ Report) Order,
2016 (“the Order”) issued by the Central Government in
terms of section 143 (11) of the Act, and except for the
possible effects, of the matter described in the Basis for
Disclaimer of Opinion section, we give in the “Annexure
A”, a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
2.
(A) As required by section 143(3) of the Act, we report
that:
a)
b)
c)
d)
e)
f)
As described in the Basis for Disclaimer of
Opinion section, we were unable to obtain all the
information and explanations which to the best of
our knowledge and belief were necessary for the
purposes of our audit.
Due to the effects / possible effects of the matter
described in the Basis for Disclaimer of Opinion
section, we are unable to state whether proper
books of account as required by law have been
kept by the Company so far as it appears from our
examination of those books.
The standalone balance sheet, the standalone
statement of profit and loss (including other
comprehensive income), the standalone statement
of changes in equity and the standalone statement
of cash flows dealt with by this Report are in
agreement with the books of account.
Due to the effects / possible effects of the matter
described in the Basis for Disclaimer of Opinion
section, we are unable to state whether the financial
statements comply with the Indian Accounting
Standards specified under section 133 of the Act.
The matter described in the Basis for Disclaimer of
Opinion section may have an adverse effect on the
functioning of the Company.
On the basis of the written representations received
from the directors as on March 31, 2020 taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2020 from
being appointed as a director in terms of section
164(2) of the Act.
g)
The reservation relating to maintenance of accounts
and other matters connected therewith are as
stated in the Basis for Disclaimer Opinion section.
h) With respect to the matter to be included in the
Auditors’ Report under section 197(16) of the Act:
In our opinion and according to the information and
explanations given to us, the remuneration paid by
the Company to its directors during the current year
is in accordance with the provisions of section 197
63
Reliance Infrastructure Limited
contracts including derivative contracts for which
there were any material foreseeable losses.
Other than for dividend amounting to ` 0.12 Crore
pertaining to the financial year 2010-2011 and
financial year 2011-12, were kept in abeyance due
to pending litigations amongst the investors, there
has been no delay in transferring amounts, required
to be transferred, to the Investor Education and
Protection Fund by the Company.
Independent Auditor’s Report on the Standalone Financial Statements
of the Act. The remuneration paid to any director is
not in excess of the limit laid down under section
197 of the Act.
iii.
i) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in “Annexure B”.
(B) With respect to the other matters to be included in
the Auditors’ Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:
i.
ii.
Except for the possible effects of the matter
described in the Basis for Disclaimer of Opinion
section, the Company has disclosed the impact
of pending litigations as at March 31, 2020 on
its financial position in its standalone financial
statements - Refer Note 32 to the standalone
financial statements.
Except for the possible effects of the matter
described in the Basis for Disclaimer of Opinion
section, the Company did not have any long-term
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm’s Registration No:107783W/W100593
Vishal D. Shah
Partner
Membership No:119303
UDIN: 20119303AAAABR6072
Date: May 8, 2020
Place: Mumbai
Annexure A to Auditors’ Report
Referred to in our Auditors’ Report of even date to the members of Reliance Infrastructure Limited on the Standalone financial
statements for the year ended March 31, 2020
(i)
(a)
The Company is maintaining proper records showing full particulars, including quantitative details and situation of its
fixed assets.
(b)
(c)
The Company has a regular programme of physical verification of its fixed assets, by which all fixed assets are verified in
a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. Pursuant to the program, a portion of the fixed assets
has been physically verified by the Management during the year and no material discrepancies between the book records
and the physical assets were noticed on such verification.
According to the information and explanations given to us and on the basis of our examination of the registered
sale deeds / transfer deeds / conveyance deeds / possession letters / allotment letters and other relevant records
evidencing title/possession provided to us, we report that, the title deeds of all the immovable properties comprising
of land and buildings other than self-constructed properties recorded as Property, Plant and Equipment, which are
freehold, are held in the name of the Company as at the balance sheet date, except the following:
Particulars
of Land and
Building
Total
number
of cases
Gross Block as
on March 31,
2020 (` Crore)
Net Block as
on March 31,
2020 (` Crore)
Remarks
Freehold land at
various locations
Freehold land at
Hyderabad
2
1
18.60
18.60
4.16
4.16
The title deeds are in the names of
erstwhile companies that merged with
the Company under Section 391 to 394
of the Companies Act, 1956 pursuant to
Schemes of Amalgamation as approved by
the Hon’ble High Courts.
Title deeds are not available with the
Company.
64
Reliance Infrastructure Limited
Annexure A to Auditors’ Report
In respect of immovable properties comprising of land and buildings that have been taken on lease and disclosed as
Property, Plant and Equipment in the standalone financial statements, the lease agreements or other relevant records
are in the name of the Company, except the following:
of
Particulars
Land and Building
Total
number of
cases
Gross Block as
on March 31,
2020 (` Crore)
Net Block as on
March 31, 2020
(` Crore)
Remarks
Leasehold land at
various locations
Leasehold land at
MIDC
3
1
0.35
0.30
0.02
0.01
The lease agreements are in the names
of erstwhile companies that merged
with the Company under Section 391
to 394 of the Companies Act, 1956
pursuant to Schemes of Amalgamation
as approved by the Hon’ble High Courts.
Lease agreement is not available with
the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification
is reasonable. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
(iii)
In our opinion and according to the information and explanations given to us, except for the matter referred to in the Basis
for Disclaimer of Opinion section in the audit report in respect of which we are unable to comment for the reasons described
therein, the Company has not granted any loans, secured or unsecured, to any company, firm, limited liability partnerships or
other party covered in the register maintained under Section 189 of the Act.
(iv) Based on the information and explanations given to us in respect of loans, investments, guarantees and securities, except for
the matter referred to in the Basis for Disclaimer of Opinion section in the audit report in respect of which we are unable to
comment for the reasons described therein, the Company has complied with the provisions of Section 185 and 186 of the
Act, to the extent applicable.
(v)
In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits
from the public within the meaning the directives issued by the Reserve Bank of India, provisions of Section 73 to 76 of the
Act, any other relevant provisions of the Act and the relevant rules framed thereunder.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of Generation of electricity services
where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of
the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(vii)
(a)
According to the information and explanations given to us and on the basis of our examination of the records of
the Company, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including
provident fund, employees’ state insurance, income-tax, goods and service tax, duty of customs, cess and other
material statutory dues as applicable except for dues towards tax deducted at source where there have been delays in
depositing such dues in a few number of cases. Further, the Company has not paid until date dividend distribution tax
payable in respect of dividend declared during the financial year 2017-18.
(b)
According to the information and explanations given to us, there are no undisputed dues in respect of provident fund,
employees’ state insurance, income tax, duty of customs, goods and services tax and cess as at March 31, 2020 which
were outstanding for a period of more than six months from the date they became payable, except for the following
dues:
Name of the
statue
Nature of the dues
Amount
(` Crore)
Period to which the
amount relates
Income Tax Act,
1961
Dividend
Distribution Tax
56.191
2017-18
Income Tax Act,
1961
Tax Deducted at
source
2.852
Upto September
2019
Due Date
18 September
2018
Date of
Payment
Not yet paid
Various Dates
Not yet paid
Including interest of 1 ` 8.57 Crore and 2 ` 0.45 Crore .
65
Reliance Infrastructure Limited
Annexure A to Auditors’ Report
(c)
According to the information and explanations given to us and the records of the Company examined by us, the
particulars of dues of income-tax, sales-tax, works contract tax, service-tax, duty of customs, duty of excise and value
added tax as at March 31, 2020 which have not been deposited on account of a dispute are as follows:
Name of the statute
Nature of
dues
Delhi Sales Tax on Works
Contract Act, 1999
Works
Contract Tax
Amount
(` Crore)
0.051
Period to which
the amount
relates
2004-2005
West Bengal Value Added
Tax Act, 2003
West Bengal Value Added
Tax Act, 2003
Madhya Pradesh Value Added
Tax Act, 2002
Central Sales Tax Act, 1956
Madhya Pradesh Entry Tax
Act 1976
Uttar Pradesh Entry Tax Act,
2007
Maharashtra Value Added
Tax Act, 2002
Maharashtra Value Added
Tax Act, 2002
Andhra Pradesh Value Added
Tax Act, 2005
Bihar Value Added Tax Act,
2005
VAT
VAT
VAT
Central Sales
Tax
Entry Tax
Entry Tax
VAT
VAT
VAT
VAT
Income Tax Act, 1961
Income Tax
Income Tax Act, 1961
Income Tax
Forum where the dispute is pending
Joint Commissioner (Appeal),
Department of Trade and Taxes, New
Delhi
West Bengal Commercial Tax
Appellate and Revisional Board,
Kolkata
West Bengal Commercial Tax
Appellate and Revisional Board,
Kolkata
Madhya Pradesh Commercial Tax
Appellate Board, Bhopal
Madhya Pradesh Commercial Tax
Appellate Board, Bhopal
Madhya Pradesh Commercial Tax
Appellate Board, Bhopal
Additional Commissioner Grade II,
Appeals II, Noida
Maharashtra Sales Tax Tribunal,
Mumbai
Senior Joint Commissioner (Appeals)
of Sales tax, Mumbai
Andhra Pradesh VAT Appellate
Tribunal, Vishakhapatnam
Joint Commissioner of Commercial
Taxes (Appeal), Bihar
Supreme Court
Bombay High Court
Income Tax Appelate Tribunal,
Mumbai
56.422
2010-2011
4.273
2008-2009
3.124
2009-2010
0.195
2009-2010
0.496
2009-2010
0.057
15.368
15.699
2007-2008
2008-2009
2008-2009
2009-2010 &
2011-2012
2014-2015
5.3310
2011-2012
2.2811
794.71
(for which the
tax authorities
are the
appellant)
915.26
(for which the
tax authorities
are the
appellant)
2013-2014,
2014-2015,
2015-2016 &
2016-17
A.Y.
2001-2002,
2002-2003
2003-2004,
2006-2007,
2007-2008 &
2008-2009
A.Y.
1998-1999,
1999-2000,
2001-2002,
2002-2003,
2003-2004,
2007-2008,
2008-2009,
2009-2010,
2010-2011,
2011-2012 &
2012-2013
AY 2015-16
Income Tax Act, 1961
Income Tax
153.33
66
Reliance Infrastructure Limited
Annexure A to Auditors’ Report
Name of the statute
Income Tax Act, 1961
Nature of
dues
Income Tax
Penalty
Amount
(` Crore)
315.99
Foreign Trade (Development
and Regulation ) Act ,1992
Foreign Trade (Development
and Regulation ) Act ,1992
Customs Act, 1962
Duty
Drawback
Duty
Drawback
Custom duty
296.50
66.2012
6.10
2009-2010
Customs Act, 1962
Penalty
145.00
Customs Act, 1962
Custom duty
Customs Act, 1962
The Central Excise Act, 1944
Custom duty
Excise Duty
9.39
(for which the
departments are
the appellant)
3.21
0.20
Period to which
the amount
relates
AY
2010-2011,
2011-2012,
2012-2013,
2013-2014,
2014-2015,
2015-2016 &
2016-2017
2008-2009
April 2012-
January 2013 &
2013-2014
2012-2013
2011-2012
& 2012-2013
2016-2017
July 2015 to
September
2016
Forum where the dispute is pending
CIT (Appeals), Mumbai
Supreme Court
Director General of Foreign Trade
Policy, Kolkata
Custom, Excise and Service Tax
Appellate Tribunal, Mumbai
Additional Director General DRI
(Adjudication), Mumbai
Custom, Excise and Service Tax
Appellate Tribunal, Hyderabad
Commissioner (Preventive) Vijayavada
Assistant Commissioner of Central
Excise (Appeals-1), Mumbai
Includes 1 ` 5,000, 2 ` 0.20 Crore, 3 ` 0.40 Crore, 4 ` 1.67 Crore, 5 ` 0.04 Crore, 6 ` 0.13 Crore, 7 ` 0.01 Crore, 8 ` 0.79 Crore,
9 ` 0.84 Crore, 10 ` 1.33 Crore, 11 ` 0.47 Crore and 12 ` 31.99 Crore paid / adjusted under protest.
(viii) According to the information and explanations given to us and based on examination of the records of the Company, the
Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or dues to debenture
holders except for the following instances of defaults in repayment of principal and interest amount. The Company did not
have any loans or borrowings from government during the year.
Name of the lenders
Amount of defaults as at
31 March 2020 (` Crores)
Period of default as at
31 March 2020 (days)
A)
B)
Term Loans/ Working Capital Loan from
Banks / Financial Institution
Jammu & Kashmir Bank
Canara Bank
Yes Bank
Union Bank of India
IDFC Bank
Srei Equipment Finance Limited
Syndicate Bank
Debentures
NCD – Series 18
NCD – Series 20E
NCD – Series 29
57.31
497.05
330.67
46.21
116.27
8.61
96.93
655.73
213.77
37.08
456
472
182
477
472
305
305
193
7
32
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and in
our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes
for which they were raised.
(x)
According to the information and explanations given to us, except for the matter referred to in Basis for Disclaimer of Opinion
section in the audit report, in respect of which we are unable to comment on any potential implications for the reasons
described therein, no fraud by the Company or fraud on the Company by its officers and employees has been noticed or
reported during the course of our audit.
67
Reliance Infrastructure Limited
Annexure A to Auditors’ Report
(xi)
(xii)
In our opinion and according to the information and
explanations given to us, the Company has paid /
provided managerial remuneration in accordance with the
provisions of Section 197 read with Schedule V to the Act.
In our opinion and according to the information and
explanations given to us, the Company is not a Nidhi
Company and accordingly the provisions of clause 3(xii)
of the Order are not applicable.
(xiii) According to the information and explanations given to
us and based on our examination of the records of the
Company, except for the matter referred to in the Basis
for Disclaimer of Opinion section in the audit report in
respect of which we are unable to comment for the
reasons described therein, transactions entered into by the
Company with the related parties are in compliance with
Sections 177 and 188 of the Act, where applicable and
the details of related party transactions as required by the
applicable accounting standards have been disclosed in
the standalone financial statements.
(xiv) During the year, the Company has not made any
preferential allotment or private placement of shares
or fully or partly convertible debentures and hence the
provisions of clause 3(xiv) of the Order are not applicable
to the Company.
Company, except for the matter referred to in Basis for
Disclaimer of Opinion section in the audit report, in respect
of which we are unable to comment on any potential
implications for the reasons described therein, the
Company has not entered into non-cash transactions with
directors or persons connected with them. Accordingly, the
provisions of clause 3(xv) of the Order are not applicable
to the Company.
(xvi) According to the information and explanations given to
us, the Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, the provisions of clause 3(xvi) of the Order
are not applicable to the Company.
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm’s Registration No:107783W/W100593
Vishal D. Shah
Partner
Membership No:119303
UDIN: 20119303AAAABR6072
(xv) According to the information and explanations given to
us and based on our examination of the records of the
Date: May 8, 2020
Place: Mumbai
68
Reliance Infrastructure Limited Annexure B to Auditors’ Report
Annexure B to the Independent Auditor’s Report on the
standalone financial statements of Reliance Infrastructure
Limited for year ended March 31, 2020
Report on the internal financial controls with reference to the
aforesaid standalone financial statements under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph 2(A)(i) under ‘Report on Other Legal
and Regulatory Requirements’ section of our report of even
date)
We were engaged to audit the internal financial controls with
reference to standalone financial statements of Reliance
Infrastructure Limited (hereinafter referred to as “the Company”)
as of March 31, 2020, in conjunction with our audit of the
standalone financial statements of the Company for the year
ended on that date
Management’s Responsibility for Internal Financial Controls
The Company’s Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal
financial controls with reference to financial statements
criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Controls over Financial Reporting (‘Guidance
Note’) issued by the Institute of Chartered Accountants of India
(‘ICAI’). These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s
policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act,
2013 (hereinafter referred to as “the Act”).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s
internal financial controls with reference to financial statements
based on our audit conducted in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing,
to the extent applicable to an audit of internal financial controls,
both issued by the Institute of Chartered Accountants of India.
Because of the matter described in the Disclaimer of Opinion
section below, we were not able to obtain sufficient appropriate
audit evidence to provide a basis for an audit opinion on internal
financial controls system with reference to the standalone
financial statements of the Company.
Meaning of Internal Financial controls with Reference to
Financial Statements
A company’s internal financial controls with reference to financial
statements is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal
financial controls with reference to financial statements include
those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made
only in accordance with authorisations of management and
directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
Disclaimer of Opinion
As at March 31, 2020, the Company has investments in and
amounts recoverable from a party aggregating to ` 8,066.08
Crore (net of provision of ` 3,972.17 Crore) as also corporate
guarantees aggregating to ` 1,775 Crore given by the Company
in favour of the aforesaid party towards borrowings of the
aforesaid party from various companies including certain related
parties of the Company.
Further, during the year the Company provided Corporate
Guarantees of ` 4,895.87 Crore in favour of certain parties
towards their borrowings.
We were unable to evaluate about the relationship, recoverability
and possible obligation towards the Corporate Guarantees given.
Accordingly, we are unable to determine the consequential
implications arising therefrom in the standalone financial
statements of the Company.
Because of the above reasons, we are unable to obtain sufficient
appropriate audit evidence to provide a basis for our opinion
whether the Company had adequate internal financial controls
with reference to standalone financial statements and whether
such internal financial controls were operating effectively as at
March 31, 2020
We have considered the disclaimer reported above in determining
the nature, timing, and extent of audit tests applied in our audit
of the standalone financial statements of the Company, and the
disclaimer has affected our opinion on the standalone financial
statements of the Company and we have issued a Disclaimer of
Opinion on the standalone financial statements of the Company.
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm’s Registration No:107783W/W100593
Vishal D. Shah
Partner
Membership No:119303
UDIN: 20119303AAAABR6072
Date: May 8, 2020
Place: Mumbai
69
Reliance Infrastructure Limited Balance Sheet as at March 31, 2020
Particluars
ASSETS
Non-Current Assets
Property, Plant and Equipment
Capital Work-in-progress
Investment Property
Other Intangible Assets
Financial Assets
Investments
Trade Receivables
Loans
Other Financial Assets
Other Non - Current Assets
Total Non-Current Assets
Current Assets
Inventories
Financial Assets
Trade Receivables
Cash and Cash Equivalents
Bank Balance other than Cash and Cash Equivalents above
Loans
Other Financial Assets
Other Current Assets
Total Current Assets
Non Current Assets Held for sale and Discontinued Operations
Total Assets
Equity and Liabilities
Equity
Equity Share Capital
Other Equity
Total Equity
Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings
Trade Payables
- total outstanding dues of micro enterprises and Small Enterprises
- total outstanding dues of creditors other than micro enterprises and small enterprises
Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non - Current Liabilities
Total Non-Current Liabilities
Current Liabilities
Financial Liabilities
Borrowings
Trade Payables
- total outstanding dues of micro enterprises and Small Enterprises
- total outstanding dues of creditors other than micro enterprises and small enterprises
Other Financial Liabilities
Other Current Liabilities
Provisions
Current Tax Liabilities (Net)
Total Current Liabilities
Total Equity and Liabilities
Note
As at
March 31, 2020
` Crore
As at
March 31, 2019
3
3
4
5
7
8
11
12
13
6
8
9
10
11
12
13
14
15
16
17
19
20
22
23(d)
21
18
19
20
21
22
582.57
28.73
482.66
0.82
8,010.34
51.13
13.64
88.42
69.23
9,327.54
629.04
26.01
502.41
0.82
13,605.66
3.56
46.86
87.47
455.02
15,356.85
3.68
7.50
4,106.24
72.68
179.36
5,765.21
1,941.43
1,275.75
13,344.35
544.94
23,216.83
263.03
10,183.98
10,447.01
3,831.88
70.89
200.94
6,064.79
1,338.87
1,380.73
12,985.60
-
28,252.45
263.03
14,027.85
14,290.88
3,416.38
4,100.15
-
25.25
123.92
160.00
93.93
1,426.71
5,246.19
-
17.53
22.90
161.43
133.99
1,487.10
5,923.10
741.92
910.00
13.05
2,368.15
2,048.20
1,827.58
47.62
477.11
7,523.63
23,216.83
0.11
3,043.25
1,435.20
2,094.48
51.44
503.99
8,038.47
28,252.45
The accompanying notes form an integral part of the standalone financial statements (1 to 55).
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Date : May 08, 2020
Place : Mumbai
70
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Chairman
Vice Chairman
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
Reliance Infrastructure Limited
Statement of Profit and Loss for the year ended March 31, 2020
Particulars
Continuing Operations:
Revenue from Operations
Other Income
Less: Transfer to General Reserve
Total Income
Expenses
Construction Material Consumed and Sub-Contracting charges
Employee Benefit Expenses
Finance Costs
Depreciation and Amortisation Expense
Other Expenses
Total Expenses
Profit from Continuing Operations before Exceptional Items and Tax
Exceptional Items (Net)
Income
Expenses
Less: Transfer from General reserve
Profit/(Loss) Before Tax from continuing operations
Tax Expenses
- Current Tax
- Deferred tax Credit (Net)
- Income tax for earlier years (Net)
Net Profit/(Loss) from Continuing Operations After Tax
Discontinued Operations
Net Profit After Tax from Discontinued Operations
Net Profit/(Loss) After Tax
Other Comprehensive Income
Items that will not be reclassified to Profit and Loss
Re-measurements of net defined benefit plans - Gain
Income-tax relating to the above
Other Comprehensive Income relating to Discontinued Operations
Total Comprehensive Income
Earnings per Equity Share (for Continuing Operations after exceptional Items)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
Earnings per Equity Share (for Continuing Operations before exceptional Items)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
Earnings per Equity Share (for Discontinued Operations)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
Note
24
25
38
26
27
3, 4 & 5
28
39
14
23(e)
29
Earnings per Equity Share (before effect of withdrawal of scheme)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
Earnings per Equity Share (after effect of withdrawal of scheme)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
The accompanying notes form an integral part of the standalone financial statements (1 to 55).
Year ended
March 31, 2020
` Crore
Year ended
March 31, 2019
1,319.07
2,161.05
141.41
2,019.64
3,338.71
1,040.15
86.24
918.15
65.31
233.24
2,343.09
995.62
-
-
-
-
995.62
4.35
(40.06)
0.06)
(35.65)
1,031.27
-
1,031.27
2.94
-
-
2.94
1,034.21
986.08
2,787.52
192.24
2,595.28
3,581.36
578.12
168.75
1,210.93
81.83
438.38
2,478.01
1,103.35
-
(12,797.36)
6,616.02
(6,181.34)
(5,077.99)
-
(27.00)
(163.76)
(190.76)
(4,887.23)
3,973.84
(913.39)
(8.62)
3.00
-
5.62
(907.77)
39.21
(185.83)
37.86
41.95
-
151.10
44.59
(278.99)
39.21
(34.73)
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Date : May 08, 2020
Place : Mumbai
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Chairman
Vice Chairman
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
71
Reliance Infrastructure Limited .
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73
Reliance Infrastructure Limited
Cash Flow Statement for the year ended March 31, 2020
Particulars
Cash Flow from Operating Activities :
Profit/(Loss) before Tax
Adjustments for :
Depreciation and Amortisation Expenses
Net Income relating to Investment Property
Interest Income
Fair value gain on Financial Instruments through FVTPL / Amortised Cost
Dividend Income
Net loss/(gain) on sale of Investment
Finance Cost
Provision for Doubtful debts / Advances / Deposits
Provision/write off of Investment and ICDs- Exceptional Items
Excess Provisions written back
Loss on Sale / Discarding of Assets (Net)
Bad Debts
Provision/(reversal) for Impairment of Assets
Cash generated from Operations before Working Capital changes
Adjustments for :
(Increase)/Decrease in Financial Assets and Other Assets
Decrease in Inventories
Decrease in Financial Liabilities and Other Liabilities
Cash generated from/(used in) Operations
Income Taxes paid (net of refund)
Net Cash generated from/(used in) Operating Activities-Continuing Operations
Net Cash generated from Operating Activities-Discontinued Operations
Net Cash generated from/(used in) Operating Activities-Continuing &
Discontinued Operations
Cash Flow from Investing Activities :
Purchase of Property, Plant and Equipment (including Capital work-in-progress,
capital advances and capital creditors)
Purchase of Investment Property
Proceeds from Disposal of Property, Plant and Equipment
Net Income relating to Investment Property
Redemption of Fixed Deposits with Banks
Investments in Subsidiaries / Joint Ventures / Associates
Investments in Others
Proceeds from disposal of Assets held for Sale
Sale of Investment in Subsidiaries/ Joint Ventures / Associates
Sale / Redemption of Investments in Mutual Fund
Sale / Redemption of Investments in Others
Loans given (Net)
Dividend Received
Interest Income
Net Cash generated from Investing Activities
Net Cash generated from Investing Activities-Discontinued Operations
Net Cash generated from Investing Activities-Continuing & Discontinued Operations
Year ended
March 31, 2020
` Crore
Year ended
March 31, 2019
995.62
(5,077.97)
65.31
(41.76)
(1,038.00)
(173.14)
(29.85)
37.79
918.15
(25.44)
-
(80.40)
1.75
8.82
-
638.85
283.20
3.83
(960.18)
(673.15)
(34.30)
264.00
229.70
-
229.70
81.83
(31.61)
(1,356.31)
(227.62)
(34.19)
(16.62)
1,210.93
91.56
6,181.34
(235.95)
1.97
4.16
18.00
609.52
(138.10)
13.60
(3,169.47)
(3,293.97)
(2,684.45)
58.23
(2,626.22)
-
(2,626.22)
(6.58)
(18.10)
-
3.37
31.20
21.44
(31.90)
-
-
176.51
-
67.19
326.30
29.85
256.98
874.36
-
874.36
(3.79)
1.37
23.90
286.46
(1,643.12)
(137.76)
2,440.77
292.42
254.47
30.30
204.52
34.19
767.00
2,532.63
-
2,532.63
A.
B.
74
Reliance Infrastructure Limited Cash Flow Statement for the year ended March 31, 2019
C.
D.
Particulars
Cash Flow from Financing Activities :
Proceeds from Long Term Borrowings
Repayment of Long Term Borrowings
Short Term Borrowings (Net)
Payment of Interest and Finance Charges
Dividends paid to shareholders including tax
Net Cash Generated from / (used in) Financing Activities from Continuing
Operations
Net Cash Generated from / (used in) Financing Activities from Discontinued
Operations
Net Cash Generated from / (used in) Financing Activities-Continuing &
Discontinued Operations
Effect of exchange differences on translation of foreign currency cash and cash
equivalent
Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C+D)
Cash and cash equivalents as at the beginning of the year
Cash and cash equivalents as at the end of the year
Net Increase / (Decrease) as disclosed above
Cash and Cash Equivalents – Continuing Operations*
Cash and Cash Equivalents – Discontinued Operations
Components of Cash and Cash Equivalents (Refer Note No 9)
Year ended
March 31, 2020
` Crore
Year ended
March 31, 2019
-
(242.53)
(168.08)
(689.79)
(1.87)
(1,102.27)
-
(1,102.27)
-
1.79
70.89
72.68
1.79
72.68
-
3,467.00
(1,783.43)
246.05
(1,602.11)
(249.25)
78.26
-
78.26
-
(15.33)
86.22
70.89
(15.33)
70.89
-
The above statement of cash flows should be read in conjunction with the accompanying notes (1 to 55).
* Including balance in unpaid dividend account of ` 14.18 Crore (` 16.05 Crore).
Refer Note No 30 for Disclosure pursuant to para 44 A to 44 E of Ind AS 7- Statement of Cash flows.
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Chairman
Vice Chairman
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
Date : May 08, 2020
Place : Mumbai
75
Reliance Infrastructure Limited Corporate Information:
Reliance Infrastructure Limited (“RInfra”, “the Company”) is one of the largest infrastructure companies, developing projects through
various Special Purpose Vehicles (SPVs) in several high growth sectors within the infrastructure space such as Power, Roads, Metro
Rail and Defence. RInfra is a leading utility having presence across the value chain of power business and also provides Engineering
and Construction (E&C) services for various infrastructure projects.
The Company is a public limited Company which is listed on two recognised stock exchanges in India. The Company’s Global
Depository Receipts, representing Equity Shares, is also listed on London Stock Exchange. The Company is incorporated and domiciled
in India under the provisions of the Companies Act, 1913. During the year, Company has changed its registered office vide a circular
resolution dated August 30, 2019 duly approved by board of directors from H block, 1st floor, Dhirubhai Ambani Knowledge City,
Navi Mumbai 400 710 to Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate , Mumbai - 400 001.
These standalone financial statements of the Company for the year ended March 31, 2020 were authorised for issue by the board
of directors on May 8, 2020. Pursuant to the provisions of section 130 of the Act, the Central Government, Income tax authorities,
Securities and Exchange Board of India, other statutory regulatory body and under section 131 of the Act, the board of directors
of the Company have powers to amend / re-open the standalone financial statements approved by the board / adopted by the
members of the Company.
1.
Significant Accounting Policies:
(a) Basis of preparation, measurement and significant accounting policies:
(i)
Compliance with Indian Accounting Standard (Ind AS)
The standalone financial statements of the Company have been prepared and comply in all material aspects with
Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) notified under Section 133 of the Companies Act, 2013
(the Act) read with relevant rules and other accounting principles. The policies set out below have been consistently
applied during the years presented.
(ii)
Basis of Preparation
These standalone financial statements are presented in ‘Indian Rupees’, which is also the Company’s functional currency
and all amounts, are rounded to the nearest Crore, with two decimals, unless otherwise stated.
The standalone financial statements have been prepared in accordance with the requirements of the information and
disclosures mandated by Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations.
(iii)
Basis of Measurement
The standalone financial statements have been prepared on a historical cost convention on accrual basis, except for the
following:
•
•
•
certain financial assets and liabilities that are measured at fair value;
defined benefit plans - planned assets measured at fair value; and
assets held for sale – measured at fair value less cost to sell or carrying value whichever is lower
(b) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker (CODM).
The board of directors of RInfra has appointed the Chief Executive Officer (‘CEO’) to assess the financial performance and
position of the Company, and making strategic decisions. The CEO has been identified as being the Chief Operating Decision
Maker for corporate planning.
(c) Current versus Non-Current Classification
The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset is treated as current when it is:
•
•
•
Expected to be realised or intended to be sold or consumed in normal operating cycle
Expected to be realised within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
•
Held primarily for the purpose of trading
76
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
All other assets are classified as non-current.
A liability is current when:
•
•
•
It is expected to be settled in normal operating cycle
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.
•
Held primarily for the purpose of trading
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
(d) Revenue Recognition
The Company applies Ind AS 115 using cumulative catch-up transition method. The Company recognize revenue from
contracts with customers when it satisfies a performance obligation by transferring promised goods or service to a customer.
The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied.
Further, specific criteria for revenue recognition followed for different businesses are as under-
(i)
Power Business
Revenue from Sale of Power: Revenue from sale of power is accounted for in accordance with tariff provided in Power
Purchase Agreement (PPA) read with the regulations of Maharashtra Electricity Regulatory Commission (MERC) and no
significant uncertainty as to the measurability or collectability exist.
(ii)
Engineering and Construction Business (E&C)
In case of Engineering and Construction Business performance obligations are satisfied over a period of time and
contracts revenue is recognised over a period of time by measuring progress towards complete satisfaction of the
performance obligation at the reporting date. The progress is measured based on the proportion of contract costs
incurred for work performed to date, to the estimated total contract costs attributable to the performance obligation,
using the input method.
Contract cost includes costs that relate directly to the specific contract and allocated costs that are attributable to the
performance obligation. Cost that cannot be attributed to the contract activity such as general administration costs are
expensed as incurred and classified as other operating expenses.
The Company account for a contract modification (change in the scope or price (or both)) when that is approved by
the parties to the contract. In case of modification of contracts a cumulative adjustment is accounted for if changes of
transaction price for existing obligation.
Contract assets are recognised when there is excess of revenue earned over billing on contracts. Contract assets are
classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and
only passage of time is required, as per contractual terms.
Unearned and deferred revenue (“contract liability”) is recognised when there is billing in excess of revenues.
The billing schedule agreed with customer include periodic performance based payments and/or milestone based
progress payments.
(iii) Others
Insurance and other claims are recognized as revenue on certainty of receipt on prudent basis.
Income from rentals and others is recognized in accordance with terms of the contracts with customers based on the
period for which the facilities have been used.
Rental income arising from operating lease is accounted on a straight line basis over the lease terms.
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest
rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
77
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates
the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses.
Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.
(e) Foreign Currency Transactions
Functional and Presentation Currency
Items included in the standalone financial statements of the Company are measured using the currency of the primary
economic environment in which the Company operates (‘the functional currency’). The standalone financial statements are
presented in Indian rupee (INR), which is Company’s functional and presentation currency.
Transactions and Balances
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.
Foreign exchange gains and losses from settlement of these transactions and from translation of monetary assets and liabilities
at the reporting date exchange rates are recognised in the Statement of Profit and Loss except in case of certain long term
foreign currency monetary items where the treatment is as under:
Non monetary items which are carried at historical cost denominated in foreign currency are reported using the exchange rates
at the dates of the transaction.
Foreign exchange gains and losses are presented in other expense/income in the standalone Statement of Profit and Loss on
a net basis.
(f) Financial Instruments
The Company recognises financial assets and liabilities when it becomes a party to the contractual provisions of the instrument.
All financial assets and liabilities are recognised at fair values on initial recognition, except for trade receivables which are
initially measured at transaction price.
(I)
Financial Assets
(i)
Classification
The Company classifies its financial assets in the following measurement categories:
•
those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss), and
•
those measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in Statement of Profit and Loss or other
comprehensive income. For investments in debt instruments, this will depend on the business model in which the
investment is held. For investments in equity instruments, this will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for the equity investment at fair value through
other comprehensive income.
The Company reclassifies debt investments when and only when its business model for managing those assets
changes.
(ii) Measurement
Initial
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at
fair value through other comprehensive income on initial recognition. The transaction cost directly attributable to
the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in
statement of profit and loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash
flows are solely payment of principal and interest.
78
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Subsequent
Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories into which the Company
classifies its debt instruments:
•
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment
that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised
in Statement of Profit and Loss when the asset is derecognised or impaired. Interest income from these
financial assets is included in finance income using the effective interest rate method.
•
Fair Value through Other Comprehensive Income (FVOCI)
Assets that are held for collection of contractual cash flows and for selling the financial assets, where
the assets’ cash flows represent solely payments of principal and interest, are measured at fair value
through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI,
except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and
losses which are recognised in the Statement of Profit and Loss. When the financial asset is derecognised,
the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and
recognised in the Statement of Profit and Loss. Interest income from these financial assets is included in
other income using the effective interest rate method.
•
Fair Value through Profit or Loss (FVTPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or
loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss
and is not part of a hedging relationship is recognised in the Statement of Profit and Loss and presented
net in the Statement of Profit and Loss in the period in which it arises. Interest income from these financial
assets is included in other income.
Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company’s management
has elected to present fair value gains and losses on equity investments in other comprehensive income, there is
no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss.
Changes in the fair value of financial assets at fair value through profit or loss are recognised in other expenses/
income in the Standalone Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on
equity investments measured at FVOCI are not reported separately from other changes in fair value.
Investments in Subsidiaries, Associates and Joint-Ventures
The Company has accounted for its equity instruments in Subsidiaries, Associates and Joint-Ventures at cost
except where Investments are accounted for at cost shall be accounted in accordance with Ind AS 105, wherein
they are classified as assets held for sale.
When, the company ceases to be a subsidiary, associate or Joint-Venture of the Company, the said investment is
carried at fair value in accordance with Ind AS 109 “Financial Instruments”.
Ind AS 101“First-time Adoption of Indian Accounting Standards” permits a first time adopter to measure its each
investment in subsidiaries, joint ventures or associates, at the date of transition, at cost determined in accordance
with Ind AS 27 “Separate Financial Statements” or deemed cost. The deemed cost of such investment can be
it’s fair value at date of transition to Ind AS of the Company, or Previous GAAP carrying amount at that date. The
Company had elected to measure its investment in Reliance Power Limited, associate of the Company, which will
be regarded at deemed cost at its fair value on transition date. The rest of the investments in subsidiaries, joint
ventures and associates were carried at their Previous GAAP carrying values as its deemed cost on the transition
date.
(iii)
Impairment of Financial Assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. Note No 48 details how the Company determines whether there has been
a significant increase in credit risk.
79
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
For trade receivables, the Company measures the expected credit loss associated with its trade receivables based
on historical trend, industry practices and the business environment in which the entity operates or any other
appropriate basis. The impairment methodology applied depends on whether there has been a significant increase
in credit risk.
(iv) De recognition of Financial Assets
A financial asset is derecognised only when:
•
•
•
Right to receive cash flow from assets have expired or
The Company has transferred the rights to receive cash flows from the financial asset or
It retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the received cash flows in full without material delay to a third party under a “pass
through” arrangement.
Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks
and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.
Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial
asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the
extent of continuing involvement in the financial asset.
(II) Financial Liabilities
Initial Recognition and Measurement
All financial liabilities are recognised initially at fair value and in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts and derivative financial instruments.
Subsequent measurement
Financial liabilities at amortized cost: After initial measurement, such financial liabilities are subsequently measured at
amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance costs in the Statement of Profit and Loss.
(a) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the EIR method.
(b) Trade and Other Payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.
(c) Financial Guarantee Obligations
The fair value of financial guarantees is determined as the present value of the difference in net cash flows
between the contractual payments under the debt instrument and the payments that would be required without
the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.
Where guarantees in relation to loans or other payables of subsidiaries, joint ventures or associates are provided
for no compensation, the fair values as on the date of transition are accounted for as contributions and recognised
as part of the cost of the equity investment.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.
80
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(g) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
•
•
In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 -Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Company’s Management determines the policies and procedures for both recurring and non–recurring fair value
measurement, such as derivative instruments and unquoted financial assets measured at fair value.
At each reporting date, the Management analyses the movements in the values of assets and liabilities which are required to
be remeasured or re-assessed as per the Company’s accounting policies. For this analysis, the Management verifies the major
inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant
documents.
The management also compares the change in the fair value of each asset and liability with relevant external sources to
determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Disclosures for valuation methods, significant estimates and assumptions of Financial Instruments (including those carried at
amortised cost) (Refer Note No 2) and Quantitative disclosures of fair value measurement hierarchy (Refer Note No 48).
(h) (i) Derivatives
Derivatives including forward contracts are initially recognised at fair value on the date a derivative contract is entered
into and are subsequently re-measured to their fair value at the end of each reporting period. The Company does not
designate their derivatives as hedges and such contracts are accounted for at fair value through profit or loss and are
included in the Statement of Profit and Loss.
In respect of derivative transactions, gains / losses are recognised in the Statement of Profit and Loss on settlement.
On a reporting date, open derivative contracts are revalued at fair values and resulting gains / losses are recognised in
the Statement of Profit and Loss
(ii) Embedded Derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host
contract – with the effect that some of the cash flows of the combined instrument vary in a way similar to a standalone
81
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract
to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate,
index of prices or rates, credit rating or credit index, or other variable, provided in the case of a nonfinancial variable
that the variable is not specific to a party to the contract. Reassessment only occurs if there is either a change in the
terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of
a financial asset out of the fair value through profit or loss.
Derivatives embedded in a host contract that is a financial asset within the scope of Ind AS 109 “Financial Instruments”
are not separated. Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
Derivatives embedded in all other host contract are separated only if the economic characteristics and risks of the
embedded derivative are not closely related to the economic characteristics and risks of the host and are measured at
fair value through profit or loss. Embedded derivatives closely related to the host contracts are not separated.
(i) Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the
liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the
normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
(j) Property, Plant and Equipment
Property, Plant and Equipment assets are carried at cost net of tax / duty credit availed less accumulated depreciation and
accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognized when replaced.
All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they
are incurred.
Capital work in progress (CWIP) includes cost of property, plant and equipment under installation / under development, as
at balance sheet date. All project related expenditure viz. civil works, machinery under erection, construction and erection
materials, preoperative expenditure incidental / attributable to the construction of projects, borrowing cost incurred prior to
the date of commercial operations and trial run expenditure are shown under CWIP. These expenses are net of recoveries and
income (net of tax) from surplus funds arising out of project specific borrowings.
Property, Plant and Equipment are derecognised from the standalone financial statements, either on disposal or when retired
from active use.
Gains and losses on disposal or retirement of Property, Plant and Equipment are determined by comparing proceeds with
carrying amount.
These are recognized in the Statement of Profit and Loss.
Depreciation methods, estimated useful lives and residual value
Power Business:
Property, Plant and Equipment relating to license business and other power business are depreciated under the straight line
method as per the rates and useful life prescribed as per the Electricity Regulations, as referred to in Part “B” of Schedule II
to the Act. Depreciation on amount of fair valuation for assets carried at fair value on date of transition is charged over the
balance residual life of the assets considering the life prescribed as per the Electricity Regulation. Once the individual asset is
depreciated to the extent of seventy (70) percent, remaining depreciable value as on March 31 of the year closing shall be
spread over the balance useful life of the asset, as provided in the Electricity Regulations. The residual values are not more
than 10% of the cost of the assets.
Engineering and Construction Business
Property, Plant and Equipment of E&C Business are depreciated under the reducing balance method as per the useful life and
in the manner prescribed in Part “C” Schedule II to the Act.
Other Activities
Property, Plant and Equipment of other activities have been depreciated under the straight line method as per the useful life
and in the manner prescribed in Part “C” Schedule II to the Act.
82
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(k) Investment Property
Investment property comprise portion of office building that are held for long term yield and / or capital appreciation.
Investment property is initially recognised at cost. Subsequently investment property comprising of building is carried at cost
less accumulated depreciation and accumulated impairment losses.
The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria
are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives. All other repair and maintenance costs are recognized in Statement of
Profit and Loss as incurred.
Depreciation on Investment Property is depreciated under the straight line method as per the rates and the useful life
prescribed as per Schedule II of the Companies Act.
Though the Company measures investment property using cost based measurement, the fair value of investment property is
disclosed in the notes. Fair values are determined based on periodical basis performed by an accredited external independent
valuer applying a valuation model recommended by the International Valuation Standards Committee.
Investment properties are derecognised when either they have been disposed of or when the investment property is
permanently withdrawn from use and no economic benefit is expected from its disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the Statement of
Profit and Loss.
(l) Intangible Assets
Intangible assets are stated at cost of acquisition net of tax/duty credits availed, if any, less accumulated amortisation /
depletion/impairment. Cost includes expenditure directly attributable to the acquisition of asset.
Amortisation Method:
Softwares are amortised over a period of 3 years.
Intangible Assets are derecognised from the standloane financial statements, either on disposal or when retired from active
use.
Gains and losses on disposal or retirement of Intangible Assets are determined by comparing proceeds with carrying amount.
These are recognized in the standalone Statement of Profit and Loss.
(m) Inventories
Inventories are stated at lower of cost and net realisable value. In case of fuel, stores and spares “cost” means weighted
average cost. Unserviceable / damaged stores and spares are identified and written down based on technical evaluation.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
(n) Allocation of Expenses
Common overheads are absorbed by various jobs in proportion to the prime cost of each job.
(o) Employee Benefits
(i) Short-term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are presented as short term employee benefit obligations in the balance sheet.
(ii) Post-employment Obligations
The Company operates the following post-employment schemes:
(a) defined benefit plans such as gratuity and
(b) defined contribution plans such as provident fund, superannuation fund etc.
83
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Defined Benefit Plans
(a) Gratuity Obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value
of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method. The present value of
the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to
market yields at the end of the reporting period on government bonds that have terms approximating to the terms
of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of
the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense
in the Statement of Profit and Loss. Remeasurement of gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service cost. The Company contributes to a trust set up by
the Company which further contributes to policies taken from Insurance Regulatory and Development Authority
(IRDA) approved insurance companies.
(b) Provident Fund
The benefit involving employee established provident funds, which require interest shortfall to be recompensated
are to be considered as defined benefit plans. As per the Audited Accounts of Provident Fund Trust maintained by
the Company, the shortfall arising in meeting the stipulated interest liability, if any, gets duly provided for.
Defined Contribution plans
The Company pays provident fund contributions to publicly administered provident funds as per local regulations.
The Company has no further payment obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are recognized as employee benefit expense
when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a
reduction in the future payments is available. Superannuation plan, a defined contribution scheme is administered
by IRDA approved Insurance Companies.
(iii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of
the reporting period in which the employees render the related service. They are therefore measured as the present
value of expected future payments to be made in respect of services provided by employees up to the end of the
reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end
of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a
result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and
Loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.
(p) Treasury Shares
The Company has created a Reliance Infrastructure ESOS Trust (ESOS Trust) for providing share-based payment to its
employees. The Company uses ESOS Trust as a vehicle for distributing shares to employees under the employee remuneration
schemes. The ESOS Trust buys shares of the company from the market, for giving shares to employees.
The Company treats ESOS Trust as its extension and shares held by ESOS Trust are treated as treasury shares.
Reliance Infrastructure ESOS Trust has in substance acted as an agent and the Company as a sponsor retains the majority of
the risks rewards relating to funding arrangement. Accordingly, the Company has recognised issue of shares to the Trust as the
issue of treasury shares and deducted the total cost of such shares from a separate category of equity (Treasury Shares) by
consolidating Trust into standalone financial statements of the Company.
(q) Borrowing Costs
Borrowing cost includes interest, amortisation of ancillary cost incurred in connection with the arrangement of borrowings and
the exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the
interest cost. General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use
or sale.
84
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets
is deducted from the borrowing costs eligible for capitalization.
Other borrowing costs are expensed in the period in which they are incurred.
(r) Income Taxes
Income tax expense for the year comprises of current tax and deferred tax. Income tax is recognised in the Standalone
Statement of Profit and Loss except to the extent that it relates to items recognised in ‘Other Comprehensive Income’ or
directly in equity, in which case the tax is recognised in ‘Other Comprehensive Income’ or directly in equity, respectively.
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting
date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate, on the basis of amounts expected to be paid
to the tax authorities.
Deferred income tax is provided in full, using the Balance Sheet approach, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the standalone financial statements. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities are not
recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries and associates
and interest in joint arrangements where the Company is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
(s) Provisions
Provisions for legal claims/disputed matters and other matters are recognised when the Company has a present legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to
any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as finance cost.
(t) Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognized because it is probable that an outflow of resources will not be required to settle the obligation. However, if the
possibility of outflow of resources, arising out of present obligation, is remote, the same is not disclosed as contingent liability.
A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The Company does not recognize a contingent liability but discloses its existence in the notes to standalone
financial statements. A Contingent asset is not recognized in standalone financial statements, however, the same is disclosed
where an inflow of economic benefit is probable.
(u) Impairment of Non-financial Assets
Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non-financial asset
may be impaired. Indefinite-life intangibles are subject to a review for impairment annually or more frequently if events or
85
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
circumstances indicate that it is necessary. For the purpose of assessing impairment, the smallest identifiable group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or group
of assets is considered as a cash generating unit. Goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Company’s cash-generating units that are expected to benefit from the synergies of the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units. If any indication of impairment
exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. Asset/cash generating
unit whose carrying value exceeds their recoverable amount are written down to the recoverable amount by recognizing the
impairment loss as an expense in the Statement of Profit and Loss.
The impairment loss is allocated first to reduce the carrying amount of any goodwill (if any) allocated to the cash generating
unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Recoverable
amount is higher of an asset’s or cash generating unit’s fair value less cost of disposal and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and
from its disposal at the end of its useful life.
Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized
for an asset in prior accounting periods may no longer exist or may have decreased. An impairment loss recognized for goodwill
is not reversed in subsequent periods.
(v) Cash and Cash Equivalents
Cash and cash equivalents in the Balance Sheet comprise of cash on hand, demand deposits with Banks, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
(w) Cash flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-
cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Company are segregated based on the available information.
(x) Accounting for Oil and Gas Activity
Oil and natural gas exploration and evaluation expenditures are accounted for using the ‘successful efforts’ method of
accounting. Costs are accumulated on a field-by-field basis. Geological and geophysical costs are expensed as incurred. Costs
directly associated with an exploration well, and exploration and property leasehold acquisition costs, are capitalised until the
determination of reserves is evaluated. If it is determined that commercial discovery has not been achieved, these costs are
charged to expense.
(y) Contributed Equity
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
(z) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
(aa) Earnings per Share (EPS)
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.
Both Basic earnings per share and Diluted earnings per share have been calculated with and without considering income from
Rate Regulated activities and Discontinued Operations and also before withdrawal of general reserve from the Net Profit
attributable to Equity Shareholders.
(bb) Leases
The Company has adopted the new accounting standard Ind AS 116 “Leases” on April 1, 2019 as per Companies (Indian
Accounting Standards) amendment Rules, 2019, notified by MCA on March 30, 2019. Ind AS 116 is a single lessee accounting
model and sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and
lessors.
86
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
As a lessee:
The Company’s lease assets primarily consists of office premises which are of short term lease with the term of twelve months
or less and low value leases. For these short term and low value leases, the Company has recognized the lease payments as
an expense in the Statement of Profit and Loss on a straight line basis over the term of lease.
Transition to Ind AS 116:
The Company has adopted Ind AS 116, effective annual reporting period beginning on April 1, 2019 and applied the standard
to its leases, retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial
application without making any adjustment to opening balance of retained earnings. The adoption of the standard did not have
any material impact on the Standalone Financial Statement of the Company.
As a lessor:
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease
unless the receipts are structured to increase in line with expected general inflation to compensate for the lessor’s expected
inflationary cost increases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company
to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in
the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the
net investment outstanding in respect of the lease.
(cc) Non-current assets (or disposal group) held for sale and discontinued operations
Non-current assets (or disposal group) are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising
from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from
this requirement.
An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less
costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but
not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of
the sale of the non-current asset (or disposal group) is recognized at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified
as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue
to be recognized.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented
separately from other liabilities in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose
of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale.
The results of discontinued operations are presented separately in the Statement of Profit and Loss.
(dd) Interest in Joint Operations
The Company has joint operations within its Engineering and Construction segment and participates in several unincorporated
joint operations which involve the joint control of assets used in Engineering and Construction activities. Accordingly, assets
and liabilities as well as income and expenditure are accounted on the basis of available information on a line-by-line basis
with similar items in the standalone financial statements, according to the participating interest of the Company.
(ee) Business Combinations
Common control business combinations include transactions, such as transfer of subsidiaries or businesses, between entities
within a group.
87
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Business combinations involving entities or businesses under common control are accounted for using the pooling of interests
method, the assets and liabilities of the combining entities are reflected at their carrying amounts, the only adjustments that
are made are to harmonise accounting policies.
2.
Critical estimates and judgements
The presentation of standalone financial statements under Ind AS requires management to take decisions and make estimates
and assumptions that may impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the
items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and judgements are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to
be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year
are discussed below.
•
Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID 19):
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the
carrying amounts of receivables, investments, goodwill, tangible assets, contract assets and contract cost. In developing
the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic,
the Company, as at the date of approval of these financial statements has used internal and external sources of
information on the expected future performance of the Group. The Company has performed sensitivity analysis on the
assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The
impact of COVID-19 on the Company financial statements may differ from that estimated as at the date of approval
of these financial statements.
•
Estimation of deferred tax assets recoverable
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the same can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.
The Company has ` Nil (March 31, 2019: ` 55.33 Crore) of Minimum Alternate Tax (MAT) credit entitlement assets.
According to management’s estimate, these balances will expire and may not be used to offset taxable income.
The Company neither has any taxable temporary difference nor any tax planning opportunities available that could
partly support the recognition of these MAT credit entitlement as deferred tax assets. On this basis, the Company has
determined that it cannot recognise deferred tax assets on these balances.
Similarly the Company has unused capital gain tax losses of ` 149.43 Crore (` 341.77 Crore as at March 31, 2019),
which according to the management will expire and may not be used to offset taxable gain, if any, incurred by the
Company. Refer note no 23(c) for amounts of such temporary differences on which deferred tax assets are not
recognized.
•
Estimated fair value of unlisted securities
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques.
The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market
conditions existing at the end of each reporting period. Refer Note No. 48 on fair value measurements where the
assumptions and methods to perform the same are stated.
•
Estimation of defined benefit obligation
The cost of the defined benefit gratuity plan and other post-employment employee benefits and the present value
of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the discount
rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation.
88
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
The mortality rate is based on publicly available Indian Assured Lives Mortality (2006-08) Ultimate. Those mortality
tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity
increases are based on expected future inflation rates for the respective countries. Refer Note No. 43 for key actuarial
assumptions.
•
Impairment of trade receivables, loans and other financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,
based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each
reporting period.
Refer Note No. 48 on financial risk management where credit risk and related impairment disclosures are made.
89
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Note 3: Property, Plant and Equipment
Particulars
Freehold
Land
Leasehold
Land
Buildings Plant and
Machinery
Distribution
Systems
Railway
Siding
Furniture
and
Fixtures
Vehicles
Office
Equipment
Computers
Electrical
Installations
Total
` Crore
Capital
work in
progress
Gross carrying amount
As at April 1, 2018
2,624.42
58.99 1,605.71 8,572.99
4,990.20
8.20
23.21
25.51
Additions
12.86
-
0.80
4.62
-
-
0.10
0.01
2,364.84
38.79 1,447.56 8,125.97
4,990.20
8.20
20.76
18.55
-
-
-
6.21
272.44
20.20
158.95
445.43
-
-
-
-
0.01
2.54
1.51
5.46
17.10
0.13
15.29
0.53
1.41
46.22
1.00
41.43
1.27
4.52
26.14 17,998.69
217.01
0.12
19.64
2.14
21.21 17,092.80
189.47
0.41
4.64
9.94
3.67
915.59
26.01
Assets related to
Discontinued Operations
Disposals/adjustments
Closing gross carrying
amount as on
March 31, 2019
Accumulated depreciation
and impairment
As at April 1, 2018
Depreciation charge during
the year
Impairment loss
Assets related to
Discontinued Operations
Disposals
Closing accumulated
depreciation and
impairment as on March
31, 2019
Net carrying amount as
on March 31, 2019
Gross carrying amount
Opening gross carrying
amount as at April 1,
2019
Additions
Disposals/adjustment
Closing gross carrying
amount as on March 31,
2020
Accumulated depreciation
and impairment
As at April 1, 2019
Depreciation charge during
the year
Disposals
Closing accumulated
depreciation and
impairment as on March
31,2020
Net carrying amount as
on March 31, 2020
Notes:
-
-
-
-
-
223.66 1,645.16
687.95
2.12
5.89
0.63
9.27
39.32
-
-
18.00
5.59
0.26
6.25
0.82
3.93
0.19
17.55
0.76
6.68
0.48
2,604.78
51.73
-
-
-
-
-
18.00
3.87
200.96 1,453.79
687.95
2.12
4.47
4.29
3.25
16.16
4.50
2,381.36
-
-
4.38
2.65
31.97
244.31
0.01
1.37
0.31
2.47
0.50
0.37
1.22
0.93
0.18
2.48
6.60
286.55
-
-
-
-
-
-
272.44
17.55
126.98
201.12
272.44
20.20
158.95
445.43
-
-
-
-
0.49
6.57
3.02
-
272.44
20.20
152.87
448.45
-
-
-
-
2.65
0.61
31.97
244.31
9.04
33.64
-
1.52
-
3.26
39.49
277.95
272.44
16.94
113.38
170.50
1.17
2.99
1.04
3.59
2.16
629.04
26.01
2.54
5.46
1.41
4.52
4.64
915.59
26.01
0.46
-
-
-
3.00
5.46
1.37
0.28
2.47
0.61
-
-
1.65
3.08
0.09
-
1.50
0.37
0.17
-
0.54
0.11
1.27
3.36
0.93
0.83
1.20
0.56
0.01
-
4.18
7.84
2.72
-
4.65
911.93
28.73
2.48
0.35
286.55
45.53
-
2.72
2.83
329.36
-
-
-
-
1.35
2.38
0.96
2.80
1.82
582.57
28.73
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The lease period for lease hold land varies from 35 Years to 99 years.
Property, Plant and Equipment of the Company are provided as security against the secured borrowings of the Company as
detailed in note no. 17 and 18 to the standalone financial statements.
(i)
(ii)
90
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 (iii) Capital work-in-progress: Capital work in progress comprises expenditure for the plant in the course of construction.
Particulars
Year
Opening
Addition Capitalisation
CWIP Movement
CWIP Movement
2019-20
2018-19
26.01
217.01
2.72
2.14
-
3.67
4.
Investment Property
Assets related
to Discontinued
Business
-
189.47
` Crore
Closing
28.73
26.01
` Crore
Particulars
Gross Carrying Amount
Opening Gross Carrying Value
Additions
Closing Gross Carrying Value
Accumulated Depreciation
Opening accumulated depreciation
Depreciation during the year
Closing accumulated Depreciation
Net carrying value
As at
March 31, 2020
As at
March 31, 2019
599.84
-
599.84
97.43
19.75
117.18
482.66
596.05
3.79
599.84
67.35
30.08
97.43
502.41
` Crore
(i)
Amounts recognised in the Statement of Profit and Loss for Investment Property
Particulars
Rental income
Direct operating expense from property that generated rental income
Profit from Investment Property before Depreciation
Depreciation
Profit from Investment Property
(ii) Contractual Obligations
Year Ended
March 31, 2020
Year Ended
March 31, 2019
67.99
26.24
41.76
19.75
22.01
60.44
28.84
31.60
30.08
1.53
The Company has no contractual obligations to purchase, construct or develop investment property. However, the
responsibility for its repairs, maintenance or enhancements is with the Company.
(iii) Fair Value
The Company had carried out fair valuation of the investment property during the financial year 2017-18 amounting
to ` 531 Crore by the independent valuer. The Company does not envisage any significant decrease in the value of the
property as at March 31, 2020 as compared to previous year.
(iv) Pledged details
The Investment property are provided as security against the secured borrowings of the Company as detailed in note
no. 17 and 18 to the standalone financial statements.
(v) Policy for Estimation of Fair Value
The Company obtains independent valuations for its investment properties periodically. The best evidence of fair value is
current prices in an active market for similar properties. Where such information is not available, the Company considers
information from a variety of sources including:
●
current prices in an active market for properties of different nature or recent prices of similar properties in less
active markets, adjusted to reflect those differences;
91
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
●
●
discounted cash flow projections based on reliable estimates of future cash flows; and
capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate
derived from an analysis of market evidence.
The fair values of investment properties is determined by reputed third party, independent valuers.
The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on
comparable transactions and industry data.
All resulting fair value estimates for investment properties are included in level 3.
5.
Other Intangible Assets
Computer Software
Gross carrying amount
As at April 01, 2018
Additions
Transfer related to discontinue operations
Disposals
Closing gross carrying amount as on March 31, 2019
Accumulated amortisation and impairment
As at April 01, 2018
Amortisation charge during the year
Transfer related to discontinue operations
Disposals
Closing accumulated amortisation and impairment as on March 31,2019
Net carrying amount as on March 31, 2019
Gross carrying amount
As at April 01, 2019
Additions
Disposals
Closing gross carrying amount as on March 31, 2020
Accumulated amortisation and impairment
As at April 01, 2019
Amortisation charge during the year
Disposals
Closing accumulated amortisation and impairment as on March 31,2020
Net carrying amount as on March 31, 2020
Note:
(1)
The above Intangible Assets are other than internally generated.
(2) Remaining amortisation period of computer software is between 0 to 1 years.
` Crore
21.34
0.01
20.07
0.04
1.24
9.48
0.02
9.04
0.04
0.42
0.82
1.24
0.03
-
1.27
0.42
0.03
-
0.45
0.82
6.
Inventories
Particulars
Fuel
Stores and Spares
[net of impairment of ` 4.00 Crore (` Nil for the year ended March 31, 2019)]
Total
(Inventories are stated at lower of cost and net realisable value.)
92
` Crore
As at
March 31, 2020
As at
March 31, 2019
0.02
3.66
3.68
0.02
7.48
7.50
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
7.
Financial assets
7(a) Non-current investments
Particulars
Investment in Equity Instruments (fully paid-up
unless specified)
In Subsidiary Companies at cost
Unquoted
BSES Rajdhani Power Limited^
BSES Yamuna Power Limited^
BSES Kerala Power Limited#
Reliance Power Transmission Limited
Parbati Koldam Transmission Company Limited^
Mumbai Metro One Private Limited**
Mumbai Metro Transport Private Limited
Delhi Airport Metro Express Private Limited
Tamil Nadu Industries Captive Power Company Limited
(` 5.35 per share Paid up)
Reliance Sealink One Private Limited (struck off w.e.f
December 16, 2019)
PS Toll Road Private Limited^#
KM Toll Road Private Limited $$
HK Toll Road Private Limited#
DA Toll Road Private Limited#
SU Toll Road Private Limited #^**
TD Toll Road Private Limited #
TK Toll Road Private Limited #
DS Toll Road Limited ^#
NK Toll Road Limited ^#
GF Toll Road Private Limited #
JR Toll Road Private Limited #
Nanded Airport Limited *
Baramati Airport Limited*
Latur Airport Limited*
Yavatmal Airport Limited*
Osmanabad Airport Limited*
Reliance Airport Developers Limited
CBD Tower Private Limited
Reliance Energy Trading Limited
Reliance Cement Corporation Private Limited
Utility Infrastructure & Works Private Limited
Reliance Defence Limited
Reliance Smart Cities Limited
Reliance E-Generation and Management Private Limited
Reliance Energy Limited
Reliance Property Developers Private Limited
Reliance Cruise and Terminals Limited
Reliance Armaments Limited
Reliance Ammunition Limited
Reliance Velocity Limited
Face value
in ` unless
otherwise
specified
As at March 31, 2020
As at March 31, 2019
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
530,400,000
283,560,000
6,27,60,000
50,000
201,899,380
353,280,000
24,000
953,000
23,000,000
530.40
283.56
82.81
19.19
202.08
761.48
0.02
1.34
-
530,400,000
283,560,000
6,27,60,000
50,000
201,899,380
353,280,000
24,000
953,000
23,000,000
530.40
283.56
82.81
19.19
202.08
761.48
0.02
1.34
-
-
-
10,000
-
7,936
-
3,711,000
9,018,000
18,412,260
10,744,920
12,755,650
5,210,000
4,477,000
1,961,100
10,704
741,308
554,712
215,287
87,107
207,120
4,655,742
169,490,260
2,000,000
130,000
694,000
50,000
50,000
10,000
50,000
10,000
50,000
49,999
49,999
10,000
5.61
-
37.26
91.43
208.73
105.31
143.54
5.21
4.48
195.12
8.53
7.39
5.52
2.13
0.85
2.05
46.50
169.49
2.00
0.13
6.85
0.05
0.05
0.01
0.05
0.01
0.05
0.05
0.05
0.01
7,936
3,409,000
3,711,000
9,018,000
18,412,260
10,744,920
12,755,650
5,210,000
4,477,000
1,961,100
10,704
741,308
554,712
215,287
87,107
207,120
4,655,742
169,490,260
2,000,000
130,000
694,000
50,000
50,000
10,000
50,000
10,000
50,000
49,999
49,999
10,000
5.61
34.00
37.26
91.43
208.73
105.31
143.54
5.21
4.48
195.12
8.53
7.39
5.52
2.13
0.85
2.05
46.50
169.49
2.00
0.13
6.85
0.05
0.05
0.01
0.05
0.01
0.05
50,000
50,000
0.01
93
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 Particulars
Face value
in ` unless
otherwise
specified
As at March 31, 2020
As at March 31, 2019
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
In Associate Companies measured at cost
Quoted
Reliance Power Limited ^#$
In Others at FVTPL
Yatra Online Inc.
Reliance Power Limited ^#
Unquoted
Metro One Operation Private Limited @ Cost ` 30,000
Reliance Geo Thermal Power Private Limited @ Cost
` 25,000
RPL Sun Technique Private Limited
RPL Photon Private Limited
RPL Sun Power Private Limited
In Joint Venture Company measured at cost
Unquoted
Utility Powertech Limited
In Others at FVTPL
Unquoted
Urthing Sobla Hydro Power Private Limited @ ` 20,000
Western Electricity Supply Company of Odisha Limited
(WESCO) @ ` 1,000
North Eastern Electricity Supply Company of Odisha
Limited (NESCO) @ ` 1,000
Southern Electricity Supply Company of Odisha
Limited(SOUTHCO) @ ` 1,000
CLE Private Limited ##
Rampia Coal Mine and Energy Private Limited
Reliance Infra Projects International Limited
Larimar Holdings Limited @ ` 4,909
Indian Highways Management Company Limited
Jayamkondam Power Limited @ ` 1.
Total
Investment in Preference Shares (fully paid-up) at
FVTPL
In Others- Unquoted
Non-Convertible Redeemable Preference Shares in
Reliance Infra Projects International Limited
6% Non-Cumulative Non-Convertible Redeemable
Preference
Limited
@ ` 20,000 ##
10% Non-Convertible Non-Cumulative Redeemable
Preference Shares in Jayamkondam Power Limited @
` 1
6% Non-cumulative, Non-convertible Redeemable
Preference shares of Baramati Airport Limited
6% Non-cumulative, Non-convertible Redeemable
Preference shares of Latur Airport Limited
6% Non-cumulative, Non-convertible Redeemable
Preference shares of Nanded Airport Limited
6% Non-cumulative, Non-convertible Redeemable
Preference shares of Osmanabad Airport Limited
Private
Shares
CLE
in
94
10
-
-
928,498,193
5,231.18
USD 10
10
-
358,298,193
-
44.78
2,230,548
-
74.51
-
10
10
10
10
10
10
10
10
10
10
3,000
2,500
5,000
5,000
5,000
@
@
0.01
0.01
0.01
3,000
2,500
5,000
5,000
5,000
@
@
0.01
0.01
0.01
792,000
0.40
792,000
0.40
2,000
100
100
100
@
@
@
@
2,000
100
100
100
@
@
@
@
10
1
USD 1
USD 1
10
409,795
27,229,539
10,000
111
555,370
479,460
0.41
2.72
0.04
@
0.56
@
2,978.28
409,795
27,229,539
10,000
111
555,370
479,460
0.41
2.72
0.04
@
0.56
@
8,273.18
USD 1
360,000
678.62
360,000
678.62
10
1
10
10
10
10
2,000
@
2,000
10,950,000
@
10,950,000
792,590
175,522
0.79
0.18
792,590
175,522
3,891,676
3.89
3,891,676
189,380
0.19
189,380
@
@
0.79
0.18
3.89
0.19
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 Particulars
6% Non-cumulative, Non-convertible Redeemable
Preference shares of Reliance Airport Developers Limited
6% Non-cumulative, Non-convertible Redeemable
Preference shares of Yavatmal Airport Limited
Total
Investment in Debentures (fully paid-up) at FVTPL
Unquoted
10.50% Unsecured Redeemable Non-Convertible
Debentures in CLE Private Limited ##
10.50% Unsecured Redeemable Non-Convertible
Debentures in CLE Private Limited ##
Total
Other Investments
Equity instruments in subsidiaries at Cost (unless
otherwise specified)
Unquoted
DS Toll Road Limited
NK Toll Road Limited
DA Toll Road Private Limited
HK Toll Road Private Limited
KM Toll Road Private Limited $$
Delhi Airport Metro Express Private Limited
PS Toll Road Private Limited
Mumbai Metro Transport Private Limited
Reliance Power Transmission Limited
Reliance Defence Limited
GF Toll Road Private Limited
JR Toll Road Private Limited
TK Toll Road Private Limited
TD Toll Road Private Limited
SU Toll Road Private Limited
Reliance Defence System & Tech Limited
Reliance Cement Corporation Private Limited
Reliance Velocity Limited
Debt instruments in subsidiary at amortised Cost
(unless otherwise specified)
Unquoted
Mumbai Metro One Private Limited (at amortised cost)
Total
Less: Diminution in the value of Investments***
Total Non Current Investments
Aggregate amount of quoted investments
Aggregate amount of unquoted investments
Aggregate amount of impairment in the value of
investments
Face value
in ` unless
otherwise
specified
10
As at March 31, 2020
As at March 31, 2019
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
12,222,104
12.22
12,222,104
12.22
10
216,886
0.22
216,886
0.22
696.11
696.11
100
100,000,000
614.60
100,000,000
538.93
100
120,000,000
698.61
120,000,000
612.60
1,313.21
1,151.53
46.80
198.27
444.91
302.26
-
787.53
1,078.51
0.53
54.63
62.49
128.59
156.18
215.04
34.67
15.00
2.50
9.32
0.11
164.47
3,701.81
679.07
8,010.34
46.80
198.27
444.91
302.26
505.45
787.53
1,078.51
0.53
54.63
55.02
128.59
156.18
215.04
34.67
-
2.50
-
0.11
153.02
4163.91
679.07
13,605.66
Market Value Book Value
Market Value Book Value
44.78
44.78
1,128.36
5,305.69
8,644.63
679.07
8.979.04
679.07
* The Balance equity stake is held by another subsidiary, Reliance Airport Developers Limited
95
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 ** 26,11,20,000 equity shares of Mumbai Metro One Private Limited and 3,68,245 (3,68,245) equity shares of SU Toll Road
Private Limited are in safe keep accounts.
*** Include ` 678.62 Crore in respect of Non-Convertible Redeemable Preference Shares in Reliance Infra Projects International
Limited
^ 53,03,99,995 (53,03,99,995) shares of BSES Rajdhani Power Limited, 28,35,59,995 (28,35,59,995) shares of BSES Yamuna
Power Limited, 5,470 (5,470) shares of PS Toll Road Private Limited, 13,91,46,870 (13,91,46,870) shares of Parbati Koldam
Transmission Company Limited, 26,57,100 ( 26,57,100) shares of DS Toll Road Limited, 22,83,270 ( 22,83,270) shares of NK
Toll Road Limited, 90,22,007 ( 90,22,007) shares of SU Toll Road Private Limited, 2,676 (2,676) shares of JR Toll Road Private
Limited, NIL (10,19,00,000) shares of Reliance Power Limited are pledged with the lenders of the respective investee Companies.
# 45,99,180 (45,99,180) shares of DA Toll Road Private Limited, 2,466 (2,466) shares of PS Toll Road Private Limited,11,13,300
(11,13,300) shares of HK Toll Road Private Limited, 15,63,000 (15,63,000) shares of DS Toll Road Limited, 13,43,100
(13,43,100) shares of NK Toll Road Limited, 55,23,678 (55,23,678) shares of SU Toll Road Private Limited, 5,88,330 (5,88,330)
shares of GF Toll Road Private Limited, 2,462 (2,462) shares of JR Toll Road Private Limited, 32,23,476 (32,23,476) shares of TD
Toll Road Private Limited,38,26,695 (38,26,695) shares of TK Toll Road Private Limited, 19,57,73,203 (53,90,73,203) shares
of Reliance Power Limited, 1,88,28,000 (1,88,28,000) shares of BSES Kerala Power Limited are pledged with lenders of the
Company.
## formerly Known as Crest Logistics and Engineers Private Limited.
$ During the year investment in RPower has been reduced to 12.77% of its paid-up share capital. Accordingly in terms of Ind AS
28 on Investments in Associates and Joint Venture, RPower ceases to be an associate of the Company w.e.f January 09, 2020. The
balance investments in RPower have been carried at fair value in accordance with Ind AS 109 on Financial Instruments and valued
at current market price.
$$ Refer note no 14(b)
8.
Trade Receivables:
Particulars
As at March 31, 2020
` Crore
As at March 31, 2019
Current Non current
Current Non current
Unsecured considered good unless otherwise stated
Considered good including Retentions on Contract
4,106.24
51.13
3,831.88
63.96
-
67.01
4,170.20
51.13
3,898.89
63.96
-
67.01
4,106.24
51.13
3,831.88
3.56
-
3.56
-
3.56
Credit Impaired
Less: Provision for Doubtful Debts
Total
9.
Cash and Cash Equivalents
Particulars
Balances with Banks in
Current Account
Bank Deposits with original maturity of less than 3 months
Unpaid Dividend Account*
Cheques and drafts on hand (March 31, 2019:@ ` 4,000)
Cash on hand (@ March 31, 2020:. ` 29,124, March 31, 2019: ` 42,270)
Total
*The Company is required to keep restricted cash for payment of dividend
10. Bank Balances other than Cash and Cash Equivalents:
Particulars
Bank Deposits with Original Maturity of more than 3 months
but less than 12 months
Total
96
As at
March 31, 2020
` Crore
As at
March 31, 2019
58.50
-
14.18
-
@
72.68
42.71
12.13
16.05
@
@
70.89
` Crore
As at
March 31, 2020
As at
March 31, 2019
179.36
200.94
179.36
200.94
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
11. Loans
Particulars
(Unsecured, Considered good unless otherwise stated)
Loans - Inter Corporate Deposits to
Related Parties (Refer Note No. 34)
Others – Considered Good
Others – Credit Impaired
Less: Provision for Expected Credit Loss
Total
Loan to Employees*
(Unsecured, Considered good unless otherwise stated)
Security Deposits
Considered good
*Secured ` 4.36 Crore (March 31, 2019: ` 6.77 Crore)
12. Other Financial Assets:
Particulars
(Unsecured, Considered good unless otherwise stated)
Fixed Deposit with Banks with maturity of
more than 12 months
Interest Receivable (includes Secured
` 0.28 Crore; March 31, 2019 - ` 0.25 Crore)
Considered Good
Credit Impaired
Advance to Employees
Other Receivables
Less; Provision for Expected Credit Loss
Total
13. Other Assets:
Particulars
As at March 31, 2020
As at March 31, 2019
Current Non-Current
Current Non-Current
` Crore
1,282.42
4,466.28
3,829.14
9,577.84
3,829.14
5,748.70
-
-
-
-
-
-
1,589.44
4,409.64
3,829.14
9,828.22
3,829.14
5,999.08
-
-
-
-
-
-
0.60
3.78
0.73
6.19
15.91
5,765.21
9.86
13.64
64.98
6,064.79
40.67
46.86
As at March 31, 2020
As at March 31, 2019
Current Non-Current
Current Non-Current
` Crore
-
10.75
-
10.60
1,539.79
0.25
143.03
0.57
401.07
143.03
-
-
77.42
-
761.12
143.03
0.55
577.20
143.03
1,941.43
88.42
1,338.87
0.22
-
1.23
75.42
-
87.47
` Crore
As at March 31, 2020
As at March 31, 2019
Current Non-Current
Current Non-Current
(Unsecured, Considered good unless otherwise stated
Advances to Vendors
Amount due from customers for contract work
Capital Advances
Advances recoverable in cash or in kind or for value to be
received
Income-tax Refund Receivable
Prepaid Expenses
Total
398.47
683.78
-
174.77
17.23
1.50
1,275.75
68.11
-
0.02
-
-
1.10
69.23
419.75
576.68
-
69.14
312.53
2.63
1,380.73
453.04
-
0.37
-
-
1.61
455.02
97
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
14. Non Current Assets Held for sale and Discontinued Operations
(a) Mumbai Power Business
During the financial year 2018-19, the Scheme of arrangement envisaging vesting of Mumbai Power Business
(MPB) to its resulting wholly owned subsidiary viz. Reliance Electric Generation and Supply Limited (REGSL) has been
implemented with effect from April 1, 2018. Pursuant to the Share Purchase Agreement with Adani Transmission
Limited for sale of MPB, the Company divested its entire stake in REGSL after obtaining all required regulatory & other
approvals.
The profit for the year ended March 31, 2019 ` 3,973.84 Crore including reversal of deferred tax liability of ` 2,291.89
Crore has been shown as profit from Discontinued Operations in respect of above transaction
(b) KM Toll Road Private Limited (KMTR)
KM Toll Road Private Limited (KMTR), a subsidiary of the Company, has terminated the Concession Agreement with
National Highways Authority of India (NHAI) for Kandla Mundra Road Project (Project) on May 7, 2019, on account of
Material Breach and Event of Default under the provisions of the Concession Agreement by NHAI. The operation of the
Project has been taken over by NHAI and NHAI has given a contract to a third party for Toll collection with effect from
April 16, 2019.Consequently, NHAI is liable to pay KMTR a termination payment estimated at ` 1,205.47 Crore, as the
termination has arisen owing to NHAI Event of Default. KMTR vide its letter dated May 6, 2019 has also issued a notice
to NHAI for the termination payment. Pending final outcome of the notice and possible arbitration proceedings and
as legally advised, the claims for the termination payment are considered fully enforceable. The Company is confident
of recovering its entire investment in KMTR, as at March 31, 2020 and no impairment has been considered necessary
against the above investment. The Investment in the KMTR are classified as Discontinued operations as per Ind AS 105
“Non Current Assets held for sale and discontinued operations”. The Assets and Liabilities related to KMTR are given
below:
Particulars
Investments*
Trade Receivables
Total Assets
` Crore
As at
March 31, 2020
539.45
5.49
544.94
* 10,22,700 equity shares of KM Toll Road Private Limited are pledged with lenders of the Company.
15. Share Capital
Particulars
Authorised
45,00,60,000 (45,00,60,000) Equity Shares of ` 10 each
80,00,000 (80,00,000) Equity Shares of ` 10 each with differential rights
155,00,00,000 (155,00,00,000) Redeemable Preference Shares of ` 10 each
4,20,00,000 (4,20,00,000) Unclassified Shares of ` 10 each
Issued
26,53,92,065 (26,53,92,065) Equity Shares of ` 10 each
Subscribed and fully paid-up
26,29,90,000 (26,29,90,000) Equity Shares of ` 10 each fully paid up
Add: 3,54,479 (3,54,479) Forfeited Shares - Amounts originally paid up
(a)
Shares Pledged Details:
Sr.
No.
Particulars
1
No of Shares Pledged by Promoter Group Companies
98
As at
March 31, 2020
` Crore
As at
March 31, 2019
450.06
8.00
1,550.00
42.00
2,050.06
450.06
8.00
1,550.00
42.00
2,050.06
265.40
265.40
262.99
0.04
263.03
262.99
0.04
263.03
As at
March 31, 2020
As at
March 31, 2019
2,53,59,937
10,45,94,607
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(b) Reconciliation of the Shares outstanding at the beginning and at the end of the year:
Particulars
Equity Shares:-
At the beginning of the year
Outstanding at the end of the year
As at March 31, 2020
As at March 31, 2019
No. of Shares
` Crore
No. of Shares
` Crore
26,29,90,000
26,29,90,000
262.99
262.99
26,29,90,000
26,29,90,000
262.99
262.99
(c) Terms / Rights attached to Equity Shares:
The Company has only one class of Equity Share having par value of ` 10 per share. Each shareholder is eligible for
one vote per share held. In the event of liquidation of the Company, the equity share holders will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in
proportionate to the number of equity shares held by the shareholders.
(d) Details of Shareholders holding more than 5% Shares of the total Equity Shares of the Company:
Name of the Shareholders
Reliance Project Ventures and Management Private
Limited
Housing Development Finance Corporation Limited
Reliance Big Private Limited
As at March 31, 2020
As at March 31, 2019
No. of Shares % held
No. of Shares
% held
2,77,09,937
10.54
8,80,29,932
33.47
2,15,80,995
@
8.21
@
@
1,68,00,000
@
6.39
@ hold less than 5%
16. Other Equity - Reserves and Surplus
Particulars
Capital Reserve
Sale proceeds of fractional Equity Shares Certificates and Dividends thereon @
` 37,953 (` 37,953)
Capital Redemption Reserve
Securities Premium
Debenture Redemption Reserve
General Reserve
Treasury Shares
Retained Earnings
Total
Other Equity
Particulars
(a) Capital Reserves
1.
2.
Capital Reserve:
Balance as per last Balance Sheet
Less: Loss on Invocation of Shares/Impairment (Refer Note No 42)
Sale proceeds of Fractional Equity Shares
Certificates and Dividends thereon @ [` 37,953 (` 37,953)]
(b)
(c)
Securities Premium
Balance as per last Balance Sheet
Capital Redemption Reserve
Balance as per last Balance Sheet
As at
March 31, 2020
155.09
@
` Crore
As at
March 31, 2019
5,179.97
@
130.03
8,825.09
212.98
558.49
(0.75)
303.05
10,183.98
130.03
8,825.09
165.02
409.38
(6.14)
(675.50)
14,027.85
As at
March 31, 2020
` Crore
As at
March 31, 2019
5,179.97
(5,024.88)
155.09
5,179.97
-
5,179.97
@
@
8,825.09
8,825.09
130.03
130.03
99
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Particulars
(d) Debenture Redemption Reserve -
Balance as per last Balance Sheet
Add: Transfer from Retained Earnings
Less: Transfer to General Reserve
(e)
Statutory Reserves
Balance as per last Balance Sheet
1.
2.
3.
4.
5.
6.
7.
Development Reserve Account No. 1
Development Reserve Account No. 2
Debt Redemption Reserve
Rural Electrification Scheme Reserve
Reserve to augment production facilities
Reserve for Power Project
Development Reserve Account No. 3
Less: Transfer to General Reserve
(f)
Foreign Currency Monetary Item Translation Difference Account
Balance as per last Balance Sheet
Add: Addition during the year
Less: Amortisation during the year
Less: Transfer to Statement of Profit and Loss
(g) General Reserve
Balance as per last Balance Sheet
Add: Transfer from Statement of Profit and Loss (Refer Note No 38)(net)
Less: Transfer to Statement of Profit and Loss (Refer Note No 39)
Add: Transfer from Statutory Reserve
Add : Transfer from Debenture Redemption Reserve
(h) Retained Earnings
Balance as per last Balance Sheet
Add : Net Profit/(Loss) for the year
Add :Items of other Comprehensive Income recognised directly in retained
earnings
-Remeasurements of post-employment benefit obligation, net of tax
Less : Dividend Paid
Less : Tax on Dividend
Less : Transfer to Debenture Redemption Reserve
(i)
Treasury Shares
Balance as per last Balance Sheet
Less: Provision for Diminution in value of Equity Shares
Total
100
As at
March 31, 2020
` Crore
As at
March 31, 2019
165.02
55.66
(7.70)
212.98
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
409.38
141.41
-
-
7.70
558.49
(675.50)
1031.27
2.94
-
-
(55.66)
303.05
528.23
96.84
(460.05)
165.02
1.69
18.97
2.30
0.11
0.04
100.00
140.88
263.99
(263.99)
-
77.77
39.52
(12.22)
(105.07)
-
6,109.12
192.24
(6,616.02)
263.99
460.05
409.38
626.56
(913.39)
5.62
(249.83)
(47.62)
(96.84)
(675.50)
(6.14)
5.39
(0.75)
10,183.98
(19.13)
12.99
(6.14)
14,027.85
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Nature and purpose of Other Reserves
(a) Capital Reserve:
The Reserve is created based on statutory requirement under the Companies Act, 2013, on account of forfeiture of
equity shares warrants, mergers and acquisitions pursuant to the Order of Hon’ble High Court of Bombay. This is not
available for distribution of dividend but can be utilised for issuing bonus shares.
(b)
Securities Premium:
This reserve is used to record the premium on issue of shares. The same can be utilized in accordance with the provisions
of the Act.
(c) Debenture Redemption Reserve:
As per the Companies (Share Capital and Debentures) Rules, 2014 (amended), the Company is required to create
debenture redemption reserve (DRR) out of profits, which is available for payment of dividend, equal to 25% of the
amount of debentures issued. Accordingly, the Company has created DRR out of the profits of the Company in terms
of the Companies (Share Capital and Debenture)Rules, 2014 (as amended) which would be utilized for redemption of
debentures during its maturity.
(d) Capital Redemption Reserve:
The Capital Redemption Reserve is required to be created on buy-back of equity shares. The Company may issue fully
paid up bonus shares to its members out of the capital redemption reserve account.
(e)
Treasury Shares:
Reliance Infrastructure ESOS Trust has in substance acted as an agent and the Company as a sponsor retains the
majority of the risks rewards relating to funding arrangement. Accordingly, the Company has recognised issue of shares
to the Trust as the issue of treasury shares by consolidating Trust into standalone financial statements of the Company.
17. Financial Liabilities - Borrowings
Particulars
Secured
Non Convertible Debentures (Redeemable at par)
Term Loans from Banks
Loan from Others
Unsecured
Loan from Others
Total Non- Current Borrowings
As at March 31, 2020
As at March 31, 2019
Non Current
Current *
Non Current
Current *
` Crore
315.25
3,091.78
9.35
3,416.38
-
-
3,416.38
765.70
759.79
17.65
1,543.14
-
-
1,543.14
751.62
3,326.72
21.81
4,100.15
-
-
4,100.15
354.50
708.82
5.19
1,068.51
0.15
0.15
1,068.66
* Current Maturities of Long term Debt disclosed under other Financial Liabilities (Refer Note No. 20)
17.1 Security:
A.
Non Convertible Debentures (NCD) of ` 1,087.70 Crore (Principal undiscounted amount) are secured as under:
(i)
(ii)
` 385 Crore are secured by pledge of 19,17,37,454 Equity shares of Reliance Power Limited which are held by
the Company and all of the Company’s rights, title, interest and benefits in, to and under a specific bank account
of the Company and also subservient charge over current assets of the Company.
` 600 Crore are secured by first pari-passu charge on Company’s Land situated at Village Sancoale, Goa and
Plant, property and equipment at Samalkot Mandal, East Godavari District Andhra Pradesh, one Flat located in
Thane District in the State of Maharashtra, first pari-passu charge over Immoveable Property (free hold Land)
& Moveable Property of BSES Kerala Power Limited and over the Identified Fixed assets (buildings) situated in
Mumbai.
(iii) ` 102.70 Crore are secured by pledge of 40,35,749 Equity shares of Reliance Power Limited which are held by
the Company, first pari-passu charge over the Identified Fixed assets (buildings) situated in Mumbai , exclusive
charge on One Flat located in Thane District in the State of Maharashtra and all of the Company’s rights, title,
interest and benefits in, to and under a specific bank account of Company.
101
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
B.
Term Loans from Banks of ` 3,981.93 Crore (Principal undiscounted amount) are secured as under:
(i)
` 244.97 Crore are secured as under:
` 75 Crore by way of first exclusive charge on certain Plant and Equipment of EPC division and on Property, Plant
and Equipment of Windmill Project of the Company, ` 83 Crore by second charge on Company’s current assets
and ` 86.97 Crore by subservient charge on moveable Property, Plant and Equipment of the Company.
(ii)
` 3,736.96 Crore are secured by the following.
a.
b.
c.
d.
e.
Pledge of 13,43,100 Equity Shares of NK Toll Road Limited, 15,63,000 Equity Shares of DS Toll Road
Limited, 5,88,330 Equity Shares of GF Toll Road Private Limited, 10,22,700 Equity Shares of KM Toll
Road Private Limited, 11,13,300 Equity Shares of HK Toll Road Private Limited, 38,26,695 Equity Shares
of TK Toll Road Private Limited, 32,23,476 Equity Shares of TD Toll Road Private Limited, 55,23,678
Equity Shares of SU Toll Road Private Limited, 2,462 Equity Shares of JR Toll Road Private Limited and
2,466 Equity Shares of PS Toll Road Private Limited.
Non-disposal Undertaking on 45,99,180 Equity Shares of DA Toll Road Private Limited.
Non-disposal Undertaking on 19% Equity Share holding of SU Toll Road Private Limited, GF Toll Road
Private Limited, KM Toll Road Private Limited, HK Toll Road Private Limited, TD Toll Road Private Limited ,
TK Toll Road Private Limited, NK Toll Road Limited and DS Toll Road Limited . (Pledge of this 19% Equity
Shares is yet to be created).
Second pari passu charge on the current assets of Company.
First pari passu charge on all receivable arising out of sub-debt / loan advanced / to be advanced to Road
Companies, as mentioned above.
(iii)
Loan of ` 3,627.18 Crore included in above are further secured by the following.
a.
b.
c.
d.
e.
f.
g.
Secured by pledge of 1,88,28,000 Equity Shares of BSES Kerala Power Limited.
Secured by pledge of 18,61,03,025 Equity Shares of Reliance Naval and Engineering Limited.
Exclusive charge over all amounts owing to, and received and/or receivable by the Company on its behalf
from Delhi Airport Metro Express Pvt. Ltd.
Second pari passu charge over all amounts owing to and/or received and/or receivable by the Company
from certain liquidity events.
First pari passu charge over all amounts owing to and received and/or receivables by the Company and/
or any persons (s) on its behalf from claims under unapproved regulatory assets.
Exclusive charge over the ‘Surplus Proceeds” from Sale of Shares of BSES Rajdhani Power Limited (BRPL)
and / or BSES Yamuna Power Limited (BYPL), to be received by the Borrower or any Group Company
of the Borrower (incl. subsidiary, affiliates, etc.). Charge on these loans shall rank pari-passu subject to,
other lender(s)/security trustee having charge, on the charged assets, sharing pari- passu letters wherever
applicable.
Exclusive charge over the ‘Surplus Proceeds” from Sale of Shares of Parbati Koldam Transmission Company
Limited, to be received by the Borrower or any Group Company of the Borrower (incl. subsidiary, affiliates,
etc.). Charge on these loans shall rank pari-passu subject to, other lender(s)/security trustee having charge,
on the charged assets, sharing pari- passu letters wherever applicable.
(iv)
Further loan aggregating to ` 2,732.74 Crore included in above are secured by exclusive charge over on identified
Building and Investment property situated in Mumbai and exclusive charge over receivables and cash flow from
Investment property.
C.
Loan from Others are secured as under:
` 27 Crore is secured by subservient charge on all current assets of the Company, present and future.
102
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
17.2 Maturity Profile of borrowings (Principal undiscounted) is as under:
Particulars
Secured NCDs
11.50%
12.50%
Term Loans from Banks - Rate of
Interest ranges from -
9.00 % to 13.00 % p.a.
Loan from Others – 10 to 14.50 % p.a.
Total
2020-21 2021-22 2022-23 2023-24 2024-25
onwards
Maturity Profile
` Crore
Total
702.70
63.00
-
322.00
-
-
-
-
-
-
702.70
385.00
759.79
460.07
768.32
1,346.25
647.50 3,981.93
17.65
1,543.14
9.35
791.42
-
-
768.32 1,346.25
-
27.00
647.50 5,096.63
17.3 As at March 31, 2020, the Company has overdue of ` 1,226.13 Crore included in current maturities of long term debts in
Note No 20 and ` 393.00 Crore included in interest accrued in Note No 20 towards the principal and interest respectively.
Further the Company has delayed payments of interest and principal to the lenders as detailed below:
Name of lender
Default as at March 31, 2020
Delay in repayment during the year
Principal
Interest
Principal
Interest
Maximum
days of
delay
Amount
` Crore
Maximum
days of
delay
Amount
` Crore
Maximum
days of
default
Amount
` Crore
Maximum
days of
default
Canara Bank
IDFC Bank
Jammu and Kashmir Bank
Yes Bank Limited
Srei Equipment Finance Limited
Syndicate Bank
Axis Bank
NCD Series 29
NCD Series 18*
NCD Series 20E
86.97
109.78
45.00
172.49
5.19
83.00
-
21.00
600.00
102.70
377
472
456
182
122
275
-
1
193
15.79
6.49
12.31
158.18
3.42
13.93
-
16.08
55.73
7
111.07
223
213
456
182
305
305
-
32
71
7
Amount
` Crore
163.03
15.23
-
-
-
-
154
325
-
-
-
-
37.09
7.43
-
313.05
1.21
3.38
1.73
-
-
-
304
89
-
154
89
99
106
-
-
-
33.32
106
-
-
-
-
-
-
*During the year, the Company received a recall notice from LIC for NCD Series 18 amounting to ` 600 Crore vide letter date
September 20, 2019 and December 23, 2019.
18. Current Liabilities
Financial Liabilities - Borrowings
Particulars
Secured
Working Capital Loans from Banks
Unsecured
Inter Corporate Deposits
- from Related Parties (Refer Note No 34)
- Others*
Total (A) + (B)
As at
March 31, 2020
` Crore
As at
March 31, 2019
(A)
(B)
431.57
431.57
287.71
22.64
310.35
741.92
347.82
347.82
470.18
92.00
562.18
910.00
*Loan of ` 66 Crore with interest payable assigned to one of the party to whom the Company has receivable through an
assignment agreement between parties.
103
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
18.1 Security:
Working Capital Loans from Banks are secured by way of first pari-passu charge on stock, book debts, other current assets and
additionally secured by a specific immovable property of the Company located at Mumbai;
18.2 As at March 31, 2020, the Company has overdue of ` 431.57 Crore and ` 8.93 Crore towards the principal and interest
respectively. Further the Company has delayed payments of interest and principal to the banks as detailed below:
Name of lender
Canara Bank
Union Bank of India
19. Trade Payables
Particulars
Default as at March 31, 2020
Delay in repayment during the year
Principal
Interest
Principal
Interest
Amount
` Crore
394.29
37.28
Maximum
days of
default
Amount
` Crore
Maximum
days of
default
Amount
` Crore
Maximum
days of
delay
Amount
` Crore
Maximum
days of
delay
552
477
-
8.93
-
477
-
-
-
-
-
-
-
-
As at March 31, 2020
As at March 31, 2019
Current Non-Current
Current Non-Current
` Crore
Total outstanding dues to Micro and Small Enterprises
13.05
-
0.11
-
Total outstanding dues to Other than Micro and Small
Enterprises including Retention Payable
2,368.15
25.25
3,043.25
17.53
Total
2,381.20
25.25
3,043.36
17.53
This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)
has been determined to the extent such parties have been identified on the basis of information available with the Company
and relied upon by the auditors.
Particulars
Principal amount due to suppliers as at the year end
Interest accrued, due to suppliers on the above amount, and unpaid as at the year
end
Payment made to suppliers(other than interest) beyond the appointed date under
Section 16 of MSMED
Interest paid to suppliers under MSMED Act (other than Section 16)
Amount of Interest paid by the Company in terms of Section 16 of the MSMED,
along with the amount of the payment made to the supplier beyond the appointed
day during the accounting year
Amount of Interest due and payable for the period of delay in making the payment,
which has been paid but beyond the appointed date during the year, but without
adding the interest specified under MSMED Act
Amount of Interest accrued and remaining unpaid at the end of each accounting
year to suppliers
Amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the
small enterprise, for the purpose of disallowance as a deductible expenditure under
Section 23 of MSMED
` Crore
As at
March 31, 2020
As at
March 31, 2019
13.05
1.00
-
-
-
0.11
0.01
-
-
-
1.00
0.01
1.00
1.00
0.01
0.01
104
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
20. Other Financial Liabilities
Particulars
Current Maturities of Long-term Debt
Interest Accrued
Unpaid Dividends
Deposit from others
Financial Guarantee Obligation
Total
21. Other Liabilities
Particulars
As at March 31, 2020
As at March 31, 2019
Current
Non-Current
Current
Non-Current
` Crore
1,543.14
490.88
14.18
-
-
2,048.20
-
-
-
1,068.66
350.49
16.05
0.06
123.86
123.92
-
-
1,435.20
-
-
-
-
22.90
22.90
` Crore
As at March 31, 2020
As at March 31, 2019
Current Non-Current
Current Non-Current
Advances received from Customers
410.31
1,426.71
Amount due to customers for contract work
Other Liabilities including Statutory Liabilities
815.56
601.71
-
-
420.07
885.64
788.77
1,260.30
-
226.80
Total
22. Provisions
Particulars
Provision for Disputed Matters
Tax on Dividend
Provision for Employee Benefit:
Provision for Leave Encashment
Provision for Gratuity (Refer Note No. 43)
Total
1,827.58
1,426.71
2,094.48
1,487.10
` Crore
As at March 31, 2020
As at March 31, 2019
Current Non-Current
Current Non-Current
-
47.62
160.00
-
-
-
-
-
47.62
160.00
-
47.62
-
3.82
51.44
160.00
-
-
1.43
161.43
Information about Provision for Disputed Matters and significant estimates
Represents provision made for disputes in respect of corporate matters. No further information is given as the matters are
sub-judice and may jeopardize the interest of the Company.
105
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
23.
Income Tax and Deferred Tax (Net)
23(a)Income tax expenses
Particulars
Income tax Expense:
Current tax:
Current tax on profits for the year
Adjustments for current tax of prior periods
Total current tax expense
Deferred tax:
Increase in deferred tax assets
Decrease in deferred tax liabilities
Total deferred tax expense/(benefit)
Income tax expense
Income tax expense is attributable to:
Continuing operations
Discontinued operation
` Crore
Year ended
March 31, 2020
Year ended
March 31, 2019
(A)
(B)
(A + B)
4.35
0.06
4.41
(37.43)
(2.63)
(40.06)
(35.65)
-
(163.76)
(163.76)
(545.03)
(2,860.92)
(2,315.89)
(2,479.65)
(35.65)
(187.76)
-
(2,291.89)
23(b) Reconciliation of tax expenses and the accounting profit multiplied by India’s tax rate
Particulars
Profit from continuing operations before income tax expense
Profit from discontinued operation before income tax expense
Tax at the Indian tax rate of 34.944% (34.944%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Income not considered for Tax purpose
Income chargeable to Tax at Special rate
Utilisation of Losses brought forward
Expenses withdrawn from general reserve and allowable for Income Tax
Expenses not allowable for tax purposes
Corporate social responsibility expenditure not allowable for Tax purpose
Fair Valuation of Preference shares / Debentures
Effect of change in tax rate
DTA on brought forward depreciation losses
Reversal of DTA on Sale of Undertaking
Previous year disallowance allowed in current year
Adjustments for current tax of prior periods
Income tax expense charged to Statement of Profit and Loss
Year ended
March 31, 2020
995.62
-
995.62
347.91
` Crore
Year ended
March 31, 2019
(5,077.99)
1,681.95
3,396.04
(1,186.71)
(10.43)
-
(299.06)
-
7.90
-
(56.50)
0.87
(26.40)
-
-
0.06
(35.65)
(11.95)
111.59
(111.59)
(368.20)
1,459.41
5.92
(79.54)
-
-
(2,291.89)
157.07
(163.76)
(2,479.65)
106
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 23(c) Tax losses and Tax credits
Particulars
Unused Capital Gains tax losses for which no deferred tax asset has been recognised
Unused Tax Credits – MAT credit entitlement
Unused tax on business losses for which no deferred tax asset has been recognised
Unused tax on Depreciation losses
23(d) Deferred tax balances
The balance comprises temporary differences attributable to:
Particulars
Deferred tax liabilities on account of:
Property plant and Equipment, Intangible Assets and Investment Property -
Carrying amounts other than on account of Fair Valuation
Fair Valuation of Property, Plant and Equipment
Impact of Effective Interest Rate on Borrowings / other Financial assets / liabilities
Fair Valuation of Financial Instruments
Total Deferred Tax Liabilities
Deferred tax asset on account of:
Provisions for employees benefits and doubtful debts/advances
Brought forward depreciation losses
Total Deferred Tax Assets
Net Deferred Tax Liabilities
23(e) Movement in deferred tax balances
Deferred Tax Liability
As At March 31, 2018
Charged/(Credited):
- to profit or loss- Continued Operations
- to profit or loss – Discontinued Operations
- to other comprehensive income
As At March 31, 2019
Charged/(Credited):
- to statement of profit and loss- Continued Operations
As At March 31, 2020
` Crore
As at
March 31, 2020
As at
March 31, 2019
149.33
-
1,353.19
26.40
341.77
55.33
-
-
` Crore
As at
March 31, 2020
As at
March 31, 2019
37.12
51.23
48.44
11.82
33.85
57.85
59.60
7.94
148.61
159.24
28.27
26.41
54.68
93.93
25.25
-
25.25
133.99
` Crore
Amount
2,449.88
(27.00)
(2,291.89)
3.00
133.99
(40.06)
93.93
107
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
24. Revenue from Operations
Particulars
(a)
Income from Sale of Power
Cross Subsidy Charges
Sub-total (A)
(b) Revenue from Engineering and Construction Business
Value of Contracts billed and Service Charges
Increase /(decrease) in Contract Assets
Contract Assets at close
Less: Contract Assets at commencement
Net increase / (decrease) in Contract Assets
Miscellaneous Income
Sub-total (B)
(c) Other Operating Income
Provisions / Liabilities written back
Consultancy Services
Other Income
Sub-total (C)
Total (A) + (B) + (C)
` Crore
Year ended
March 31, 2020
Year ended
March 31, 2019
8.67
(1.93)
6.74
10.92
(2.32)
8.60
1,150.82
662.21
677.54
576.68
100.86
11.06
1,262.74
3.00
32.42
14.17
49.59
1,319.07
576.68
389.55
187.13
18.41
867.75
75.94
-
33.79
109.73
986.08
24.1 Refer note 35 on Segment Reporting for Revenue disaggregation
24.2 Performance Obligation: The aggregate value of transaction price allocated to unsatisfied or partially satisfied performance
obligation is ` 17,893.13 Crore as at March 31, 2020, (` 20,222.86 Crore as at March 31, 2019) out of which ` 2,285
Crore is expected to be recognised as revenue in next year and balance thereafter. The unsatisfied or partially satisfied
performance obligations are subject to variability due to several commercial and economic factors.
24.3 Changes in balance of Contract Assets and Contract Liabilities are as under:
Contract Assets
Particulars
Opening Contract Assets including retention receivable
Increase as a result of change in the measure of progress
Transfers from contract assets recognised at the beginning of the year to receivables
Closing Contract Assets including retention receivable
Contract Liabilities
Particulars
Opening Contract Liabilities including advance from customer
Revenue recognised during the year out of opening Contract Liabilities
Increases due to cash received/advance billing done, excluding amount recognised
as revenue during the period
Closing Contract Liabilities including advance from customer
2019-20
1,715.08
385.56
(114.43)
1,986.21
2019-20
2,566.01
(227.11)
313.68
` Crore
2018-19
1,495.16
252.53
(32.61)
1,715.08
2018-19
2,673.25
(429.98)
322.74
2,652.58
2,566.01
108
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
24.4 Reconciliation of contracted prices with the revenue during the year:
Particulars
Opening contracted price of orders*
Add:
Fresh orders/change orders received (net)
Increase due to additional consideration recognised as per
contractual terms
Less:
Orders cancelled during the year
Closing contracted price of orders
Revenue recognised during the year
Less: Revenue out of orders completed during the year including
incidental Income
Revenue out of orders under execution at the end of the year (I)
Revenue recognised upto previous year (from orders pending
completion at the end of the year) (II)
Balance revenue to be recognised in future viz. Order book (III)
Closing contracted price of orders * (I+II+III)
2019-20
30,291.16
-
-
(1,211.87)
29,079.29
1,117.86
10,068.30
17,893.13
29,079.29
1,262.74
(144.88)
` Crore
2018-19
19,596.52
10,255.91
438.73
-
30,291.16
637.72
9,430.58
20,222.86
30,291.16
867.75
(230.03)
The above note represents reconciliation of revenue from operations of E&C business.
* Excluding the contracts, where E&C activities has been physically completed but the same has not been closed due to its
fulfilment of the technical parameters and pending receipt of final take over certificate from the Customer.
25. Other Income:
Particulars
Interest Income on-
Inter Corporate Deposits
Bank Deposits
Others
Fair value gain on Financial Instruments through FVTPL / Amortised Cost
Dividend Income
Net Gain on Sale of Investments
Gain on Derivative Instruments (net) (including MTM on Forward Contracts)
Provisions / Liabilities written back
Income from Lease of Investment Property
Recovery from Regulatory Assets pertaining to MPB
Miscellaneous Income*
Year ended
March 31, 2020
` Crore
Year ended
March 31, 2019
1,002.63
13.11
22.26
1,038.00
173.14
29.85
-
141.41
77.41
67.99
418.09
215.16
2,161.05
1,271.02
19.69
65.60
1,356.31
227.62
34.19
16.62
192.24
160.01
60.45
700.16
39.92
2,787.52
*Recognised pursuant to arbitration award won by the Company against Damodar Valley Corporation (DVC) totaling to
` 1,250 Crore including return of Bank Guarantees of ` 354 Crore. DVC has preferred an appeal against the award before the
Hon’ble Calcutta High Court, which was listed for hearing in the first week of March 2020, however the same is postponed
due to Covid19 outbreak and the next date of hearing is awaited. Although the Company is confident of recovering the entire
amount, out of prudence, the Company has recognized only ` 210 Crore being the retention money which was earlier written
off.
109
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
26. Employee Benefit Expenses:
Particulars
Salaries, Wages and Bonus (Refer Note No. 43)
Contribution to Provident Fund and other Funds (Refer Note No. 43)
Contribution to Gratuity Fund (Refer Note No. 43)
Workmen and Staff Welfare Expenses
27. Finance Costs:
Particulars
Interest and Finance Charges on
Debentures
Commercial Paper
Working Capital and other Borrowings
Other Finance Charges (Net of Commission on Corporate Guarantee ` 46.24 Crore)
28. Other Expenses:
Particulars
Consumption of stores and spares (Net of allocation to Repairs and other relevant
revenue accounts)
Rent
Power and Electricity
Repairs and Maintenance
Buildings
Plant and Machinery (including Distribution Systems)
Other Assets
Insurance
Rates and Taxes
Community Development and Environment Monitoring Expenses
Corporate Social Responsibility Expenditure (Refer Note No. 50)
Bank and LC/BG Charges
Communication Expenses
Provision for Exploration Charges
Legal and Professional charges
Bad Debts
Directors' Sitting Fees and Commission
Miscellaneous Expenses
Loss on Sale / Disposal of Property, Plant and Equipment (net)
Impairment Provision/ (reversed)
Provision for Impairment of Inventory
Loss on Sale of Investment (net of reversal of Diminution of investments)
Provision for Doubtful Debts / Advances / Deposits / Diminution of investments
Year ended
March 31, 2020
54.26
6.94
13.87
11.17
86.24
` Crore
Year ended
March 31, 2019
129.09
9.61
13.30
16.75
168.75
Year ended
March 31, 2020
` Crore
Year ended
March 31, 2019
174.21
-
664.22
838.43
79.72
918.15
150.35
14.50
1,008.03
1,172.88
38.05
1,210.93
` Crore
Year ended
March 31, 2020
Year ended
March 31, 2019
-
3.23
54.76
3.81
4.68
6.19
7.55
30.42
0.15
-
1.40
2.96
12.00
52.47
8.82
0.42
26.28
1.75
-
4.00
8.95
3.40
233.24
8.97
2.69
39.95
1.25
10.11
4.98
6.18
5.53
0.52
17.00
42.72
12.34
12.03
80.95
4.16
0.48
76.99
1.97
18.00
-
-
91.56
438.38
110
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 29. Earnings Per Equity Share:
Particulars
(i)
Profit / (Loss) for Basic and Diluted Earnings per Share from Discontinued
Operations (a) (` Crore)
from Continued Operations before exceptional Items (b) (` Crore)
of Continued Operations after exceptional Items(c) (` Crore)
before effect of withdrawal of scheme ( d) (` Crore)
after effect of withdrawal of scheme (e) (` Crore)
(ii) Weighted average number of Equity Shares
For Basic Earnings per share (f)
For Diluted Earnings per share(g)
(iii)
(iv)
(v)
(vi)
Earnings per share for Continuing Operations before exceptional Items
(Face Value of `10 per share)
Basic (b/f)
Diluted (b/g)
Earnings per share for Continuing Operations after exceptional Items
(Face Value of `10 per share)
Basic (c/g)
Diluted (c/g)
Earnings per share for Discontinued Operations
(Face Value of `10 per share)
Basic (a/f)
Diluted (a/g)
Earnings per share before effect of withdrawal of scheme
(Face Value of `10 per share)
Basic (d/f)
Diluted (d/g)
(vii)
Earnings per share after effect of withdrawal of scheme
(Face Value of `10 per share)
Basic (e/f)
Diluted (e/g)
30. Disclosure pursuant to para 44 A to 44 E of Ind AS 7 - Statement of cash flows
Particulars
Long term Borrowings
Opening Balance (Including Current Maturities)
Availed during the year
Impact of non-cash items
- Impact of Effective Rate of Interest
Transfer to Discontinued Operations
Repaid During the year
Closing Balance
Year ended
March 31, 2020
Year ended
March 31, 2019
-
3,973.84
995.62
1,031.27
1,172.68
1,031.27
1,103.35
(4,887.23)
(7,337.17)
(913.39)
26,29,90,000
26,29,90,000
26,29,90,000
26,29,90,000
Rupees
Rupees
37.86
37.86
41.95
41.95
Rupees
Rupees
39.21
39.21
(185.83)
(185.83)
Rupees
Rupees
-
-
151.10
151.10
Rupees
Rupees
44.59
44.59
(278.99)
(278.99)
Rupees
Rupees
39.21
39.21
(34.73)
(34.73)
` Crore
Year ended
March 31,2020
Year ended
March 31,2019
5,168.81
-
33.24
-
(242.53)
4,959.52
12,961.33
3467.00
19.98
(9,496.07)
(1,783.43)
5.168.81
111
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Particulars
Short term Borrowings
Opening Balance
Availed during the year
Impact of non-cash items
Transfer to Discontinued Operations
Repaid during the year
Closing Balance
Interest Expenses
Interest Accrued - Opening Balance
Interest Charge as per Statement Profit & Loss
Changes in Fair Value
- Impact of Effective Rate of Interest
- Impact of Change in Fair Value of Financial Guarantee Obligation
Interest paid to Lenders
Interest Accrued - Closing Balance
` Crore
Year ended
March 31,2020
Year ended
March 31,2019
910.00
-
-
(168.08)
741.92
350.49
918.15
(33.24)
(54.72)
(689.79)
490.88
3,437.48
397.35
(2,773.53)
(151.30)
910.00
772.15
1,210.93
(19.98)
(10.50)
(1,602.11)
350.49
31. The current assets of the Company are provided as security to the lenders as mentioned in note 17 & 18 and subservient
charge on certain corporate guarantees.
32.
(a) Contingent Liabilities:
i)
ii)
iii)
Claims against the Company not acknowledged as debts and under litigation aggregates to ` 1,231.30 Crore (March
31, 2019 - ` 1,894.81 Crore). These include claim from suppliers aggregating to ` 29.34 Crore (March 31, 2019 - `
643.49 Crore), income tax claims ` 677.78 Crore (March 31, 2019 - ` 453.13 Crore), indirect tax claims aggregating
to ` 447.88 Crore (March 31, 2019 - ` 722.57 Crore) out of which claims of `Nil (March 31, 2019 - ` 337.15
Crore), if materialised, will be recovered from the customers and other claims `76.30 Crore (Net of provision made of
` 71.00 Crore) (March 31, 2019 - ` 75.62 Crore – (Net of Provision made of ` 59.00 Crore)).
Corporate Guarantee ` 1,487.67 Crore (March 31, 2019: ` 1,947 Crore)
The Company’s application for compounding in respect of its ECB of USD 360 million has been deemed by the Reserve
Bank of India (RBI) as never to have been made subsequent to the withdrawal of the compounding application.
Accordingly, there is no liability in respect of the compounding fee of `124.68 Crore earlier specified by RBI. Subsequent
to the withdrawal of the compounding application, the matter has been referred to the Enforcement Directorate where
the same is still pending.
(b) Capital and Other Commitments:
i)
ii)
iii)
Estimated amount of contracts remaining unexecuted on capital account and not provided for ` Nil (March 31, 2019
- ` Nil).
Uncalled liability on partly paid shares ` 10.70 Crore (March 31, 2019 - ` 10.70 Crore).
The Company has given equity / fund support / other undertakings for setting up of projects / cost overrun in respect of
various infrastructure and power projects being set up by Company’s subsidiaries and associates; the amounts of which
currently are not ascertainable.
33. Payment to Auditors (excluding taxes):
Sr.
No
(a)
(b)
(c)
Particulars
As Auditor-Audit Fees
For other services- Certification Fees
For Reimbursement of out of pocket expenses
112
` Crore
2019-20
2018-19
0.78
0.02
-
0.80
1.58
0.45
0.06
2.09
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
34. Related Party Disclosures:
As per Ind AS – 24 “Related Party Disclosures”, the Company’s related parties and transactions with them in the ordinary course
of business are disclosed below:
(a) Parties where control exists (Subsidiaries including step down subsidiaries):
S.No Name of Company
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Delhi Airport Metro Express Private Limited (DAMEPL)
Mumbai Metro Transport Private Limited (MMTPL)
Mumbai Metro One Private Limited (MMOPL)
Reliance Energy Trading Limited (RETL)
Parbati Koldam Transmission Company Limited (PKTCL)
PS Toll Road Private Limited (PSTRPL)
KM Toll Road Private Limited (KMTRPL)
HK Toll Road Private Limited (HKTRPL)
DA Toll Road Private Limited (DATRPL)
SU Toll Road Private Limited (SUTRPL)
TD Toll Road Private Limited (TDTRPL)
TK Toll Road Private Limited (TKTRPL)
DS Toll Road Limited (DSTRL)
NK Toll Road Limited (NKTRL)
GF Toll Road Private Limited (GFTRPL)
JR Toll Road Private Limited (JRTRPL)
CBD Tower Private Limited (CBDT)
Reliance Global Limited (RGL)
Reliance Cement Corporation Private Limited (RCCPL)
Reliance Sea Link One Private Limited (RSOPL) (struck off w.e.f. December 16, 2019)
Utility Infrastructure & Works Private Limited (UIWPL)
Reliance Smart Cities Limited (RSCL)
Reliance Energy Limited (REL)
Reliance E-Generation and Management Private Limited (REGMPL)
Reliance Defence Limited (RDL)
Reliance Cruise and Terminals Limited (RCTL)
BSES Rajdhani Power Limited (BRPL)
BSES Yamuna Power Limited (BYPL)
BSES Kerala Power Limited (BKPL)
Reliance Power Transmission Limited (RPTL)
Talcher II Transmission Company Limited (TTCL)
Latur Airport Limited (LAL)
Baramati Airport Limited (BAL)
Nanded Airport Limited (NAL)
Yavatmal Airport Limited (YAL)
Osmanabad Airport Limited (OAL)
Reliance Airport Developers Limited (RADL)
Reliance Defence and Aerospace Private Limited (RDAPL)
Reliance Defence Technologies Private Limited (RDTPL)
Reliance SED Limited (RSL)
Reliance Propulsion Systems Limited (RPSL)
Reliance Defence System & Tech Limited (RDSTL)
Reliance Defence Infrastructure Limited (RDIL)
Reliance Helicopters Limited (RHL)
Reliance Land Systems Limited (RLSL)
Reliance Naval Systems Limited (RNSL)
Reliance Unmanned Systems Limited (RUSL)
Reliance Aerostructure Limited (RAL)
Reliance Defence Systems Private Limited (RDSPL)
Reliance Armaments Limited (RAL)
Reliance Ammunition Limited (RamL)
Reliance Velocity Limited (RVL)
Reliance Delhi Metro Trust (RDMT) (up to April 1, 2019)
113
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
S.No Name of Company
54
55
56
57
58
59
Thales Reliance Defense System Limited (TRDSL)
Reliance Property Developers Private Limited (RPDPL)
North Karanpura Transmission Company Limited (NKTCL)
Tamilnadu Industries Captive Power Company Limited (TICAPCO)
Dassault Reliance Aerospace Limited (DRAL)
Reliance Aero Systems Private Limited (RASPL)
(b) Other related parties where transactions have taken place during the year:
(i)
Associates
(including
Subsidiaries of
Associates)
Reliance Power Limited (RePL) (up to January 09, 2020)
Rosa Power Supply Company Limited (ROSA) (up to January 09, 2020)
Sasan Power Limited (SPL) (up to January 09, 2020)
Vidarbha Industries Power Limited (VIPL) (up to January 09, 2020)
Chitrangi Power Private Limited (CPPL) (up to January 09, 2020)
Samalkot Power Limited (SaPoL) (up to January 09, 2020)
Rajasthan Sun Technique Energy Private Limited (RSTEPL) (up to January 09, 2020)
Dhursur Solar Power Private Limited (DSPPL) (up to January 09, 2020)
Reliance Naval and Engineering Limited (RNEL)
Reliance Geothermal Power Private Limited (RGPPL)
1
2
3
4
5
6
7
8
9
10
11 Metro One Operations Private Limited (MOOPL)
12
Reliance Power Holding (FZC) (up to January 09, 2020)
(ii)
Joint Venture
Utility Powertech Limited (UPL)
(iii)
Investing Party
Reliance Project Ventures and Management Private Limited (RPVMPL)
(iv)
(v)
Persons having
control over
investing party
Enterprises
over which
person
described in
(iv) has control
/ significant
influence
Shri Anil D Ambani
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Reliance General Insurance Company Limited (RGI)
Reliance Capital Limited (RCap)
Reliance Securities Limited (RSL)
Reliance Big Entertainment Private Limited (RBEPL)
Reliance Assets Reconstruction Company Limited (RARCL)
Unlimit IOT Private Limited (UIPL)
Reliance Health Insurance Limited (RHIL)
Reliance Home Finance Limited (RHL)
Reliance Commercial Finance Limited (RCFL)
Reliance Nippon Life Insurance Company Limited (RNLICL)
Reliance Transport and Travels Private Limited (RTTPL)
Reliance Broadcast Network Limited (RBNL)
Reliance Wealth Management Limited (RWML)
Reliance Innoventures Private Limited (REIL)
Reliance Power Limited (RePL) (w.e.f January 09, 2020)
Rosa Power Supply Company Limited (ROSA) (w.e.f January 09, 2020)
Sasan Power Limited (SPL) (w.e.f January 09, 2020)
Vidarbha Industries Power Limited (VIPL) (w.e.f January 09, 2020)
Chitrangi Power Private Limited (CPPL) (w.e.f January 09, 2020)
Samalkot Power Limited (SaPoL) (w.e.f January 09, 2020)
Rajasthan Sun Technique Energy Private Limited (RSTEPL) (w.e.f January 09, 2020)
Dhursur Solar Power Private Limited (DSPPL) (w.e.f January 09, 2020)
Reliance Power Holding (FZC) (w.e.f. January 09, 2020)
Reliance Communication Limited (RCom)
Globalcom IDC Limited(GIL)
Nippon Life Asset Management Limited (formerly known as Reliance Nippon Life Asset
Management Limited) (RNLAML) (up to September 27, 2019)
Reliance Corporate Advisory Services Limited (RCASL)
Reliance Reality Limited (RRL)
Reliance Infratel Limited (RITL)
Reliance Webstore Limited (RWL)
114
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
c)
Details of transactions during the year and closing balances as at the year end:
Particulars
Year
Subsidiaries
(a)
(I)
(i)
Statement of Profit and Loss Heads:
Income:
Sale of Power
(ii)
Gross Revenue from E&C Business
(iii) Other Operating Revenue
(iv) Dividend Received
(v)
Interest earned
(vi) Other Income ( including Income from Investment
Property)
(vii) Provision written back
(II)
(i)
(ii)
(iii)
Expenses:
Purchase of Power (Including Open Access Charges
(Net of Sales)
Purchase / Services of other items on revenue
account
Dividend Paid
(iv)
Interest Paid
(b)
(i)
(ii)
Balance Sheet Heads (Closing Balances):
Trade payables, Advances received and other
liabilities for receiving of services on revenue and
capital account
Inter Corporate Deposit (ICD) Taken
(iii)
Investment in Securities
(iv)
Inter Corporate Deposit (ICD) Given
(v)
Subordinate Debts
(vi)
(vii)
Trade Receivables, Advance given and other
receivables for rendering services
Interest receivable on Investments and Deposits
(viii) Other Receivable
(ix)
Interest Payable
(x) Non Current Assets Held for sale and Discontinued
Operations
Contingent Liabilities (Closing balances):
Guarantees and Collaterals
(c)
(i)
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
-
-
-
-
-
-
28.27
32.30
30.59
30.38
0.09
7.33
-
-
-
-
-
-
-
-
0.18
-
0.96
-
82.89
77.65
2,946.85
2,980.85
529.52
494.96
3,701.81
4,163.91
54.32
83.86
135.63
105.10
-
-
0.16
-
544.94
-
Investing
party,
Associates
and Joint
Ventures
` Crore
Enterprises
over which
person
described
in (iv) has
significant
influence
-
-
3.24
19.44
32.42
-
1.58
1.89
79.97
292.06
4.94
5.85
-
-
31.70
29.41
-
0.50
-
100.84
12.18
19.95
7.56
7.52
-
-
-
-
-
-
19.98
17.52
54.42
52.66
5.15
-
11.16
-
8.74
9.13
-
19.35
24.81
24.56
-
2,127.28
1,445.95
19.26
-
217.53
0.40
5,231.58
-
1,104.48
-
-
5.95
2,515.34
-
115.15
0.17
526.11
-
37.36
-
-
204.82
175.00
44.78
-
752.90
-
-
-
2,750.66
50.14
99.93
-
-
-
28.98
5.35
-
-
2019-20
2018-19
1,893.67
340.99
-
1,083.75
5,728.67
1,548.74*
115
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Particulars
Year
Subsidiaries
(d)
(i)
(ii)
Transactions During the Year:
Guarantees and Collaterals provided earlier - expired
/ encashed / surrendered
Guarantees and Collaterals provided
(iii)
ICD Given to
(iv)
ICD Returned by
(v)
Subordinate Debts given
(vi)
Sale of Investment
(vii)
Purchase of Investments of Subsidiary company
(viii)
ICD Taken from
(ix)
ICD Repaid to / Assigned
(x)
Subordinate Debts returned/adjusted
(xi)
Subordinate Debts written off
(xii)
ICD Given Written off
(xiii)
ICD Converted to Subordinate debts
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
-
22.54
-
-
55.16#
29.22
1.17
5.60
32.02
143.12
-
1,500.05
-
1,500.00
9.02
25.00
3.78
-
0.13
3.70
-
1,586.17
-
-
9.44
-
Investing
party,
Associates
and Joint
Ventures
905.90
122.15
-
905.90
92.96
2,328.04
447.96**
803.65
-
-
-
-
-
-
12.81
27.53
190.00
-
-
-
-
-
-
-
-
-
` Crore
Enterprises
over which
person
described
in (iv) has
significant
influence
-
-
4,048.87
1,548.50*
-
-
-
12.15
-
-
-
-
-
-
213.62^
-
224.16^
25.00
-
-
-
-
-
210.85
-
-
* net of corporate guarantee of ` 286.90 Crore cancelled subsequent to the balance sheet date
**include ICD of ` 412 Crore receivable from RPower assigned to one of its Subsidiary Company against payable by
the Company through an assignment agreement
#include ` 9.32 Crore assigned to RCCPL by one of party to whom the Company has receivable.
^include ICD of ` 175 Crore assigned to RCASL by RNLAML
d)
Detail of transactions with Key Management Personnel (KMP) and their relative:
Name
Category
Years
Remuneration
Shri Anil D Ambani
Chairman
Shri Lalit Jalan
Shri Punit Garg
Shri Sridhar
Narasimhan
Shri Anil C Shah
Promoter, Non-executive and
Non- Independent director
Chief Executive Officer
(up to April 6, 2019)
Executive Director and
Chief Executive Officer
(w.e.f April 6, 2019)
Chief Financial Officer
Company Secretary
(up to August 15, 2019)
Shri Paresh Rathod Company Secretary
Shri Anmol Anil
Ambani
Ms Shruti Garg
w.e.f August 16, 2019)
Son of Shri Anil D Ambani
Daughter of Shri Punit Garg
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
-
-
3.50
2.17*
2.36*
-
1.64*
1.77*
1.06
0.09*
0.39*
-
-
-
-
-
Dividend
Paid
-
0.14
-
-
-
-
Commission
& Sitting Fees
0.02
0.04
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.01
-
-
-
` Crore
Sale of
Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.30
-
116
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
e)
Details of Material Transactions with Related Party
(i)
Transactions during the year (Balance Sheet heads)
2019-20
ICD refunded by RePL ` 447.96 Crore.
2018-19
ICD given to RePL ` 1,616.99 Crore and RNEL ` 588.45 Crore ICD refunded by RePL ` 803.66 Crore. Subordinate
debt written off to RDSPL ` 1,586.17 Crore . Purchase and sale of Investment in REGSL ` 1,500 Core.
(ii) Balance sheet heads (Closing balance)
2019-20
Trade payable, advances received and other liabilities for receiving of services on revenue and capital account
of CPPL ` 911.03 Crore . Investment in Equity of MMOPL ` 761.48 Crore, BRPL ` 530.40 Crore. ICD given to
RePL ` 749.48 Crore. Subordinate debt given to PSTL ` 1,078.51 Crore, DATL ` 444.91 Crore and DAMEPL
` 787.53 Crore. Trade Receivables, Advances given and other receivables for rendering services SaPoL ` 2,678.34
Crore. Non Current Assets Held for sale and Discontinued Operations of KMTL ` 544.94 Crore.
2018-19
Trade payable, advances received and other liabilities for receiving of services on revenue and capital account
of CPPL ` 911.03 Crore and VIPL ` 718.69 Crore Investment in Equity of MMOPL ` 761.48 Crore, BRPL
` 530.40 Crore and RePL ` 5,231.18 Crore. ICD given to RePL ` 1,104.48 Crore. Subordinate debt given to PSTL
` 1,078.51 Crore, KMTL ` 505.45 Crore, DATL ` 444.91 Crore and DAMEPL ` 787.53 Crore. Trade Receivables,
Advances given and other receivables for rendering services SaPoL ` 2,490.27 Crore. Other receivable from VIPL
` 526.11 Crore.
(iii) Guarantees and Collaterals
2019-20
Corporate Guarantee to RCFL ` 1,803.38 Crore and to RHFL ` 1,960.49 Crore given during the year. Corporate
Guarantee to SaPoL ` 905.90 Crore surrendered during the year. Corporate Guarantee to RCap ` 1,673 Crore, to
RHFL ` 1,960 49 Crore and to RCFL ` 1,803.38 Crore outstanding as at March 31, 2020.
2018-19
Corporate Guarantee for SaPoL ` 905.90 Crore given during the year and outstanding as at March 31, 2019.
Corporate Guarantee to RCap ` 1,388.00 Crore given during the year and outstanding as at March 31, 2019.
*Remuneration does not include post-employment benefits, as they are determined on an actuarial basis for the
Company as a whole.
Notes:
1)
2)
The above disclosure does not include transactions with/as public utility service providers, viz, electricity,
telecommunications etc. in the normal course of business.
Transactions with Related Party which are in excess of 10% of the Total Revenue (including regulatory
Income) of the Company are considered as Material Related Party Transactions.
35. Segment Reporting
(a) Description of segments and principal activities
The Company operates in two Business Segments namely Power and Engineering and Construction (E&C) Business.
Business (E&C) segments have been identified as reportable segments based on how the CODM examines the Company’s
performance both from a product and geographic perspective. The inter segment pricing is effected at cost. Segment
accounting policies are in line with the accounting policies of the Company.
The Power segment is engaged in generation and distribution of electrical power at various locations. E&C segment of
the Company renders comprehensive value added services in construction, erection, commissioning and contracting.
(b)
Summary of Segment information is as under:
The expenses and income that are not directly attributable to any business segment are shown as unallocable income
(net of unallocable expenses). Interest income and finance cost are not allocated to segments, as this type of activity
is driven by the central treasury function, which manages the cash position of the Company.
117
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Particulars
2019-20
2018-19
Power
E&C
Total
Power
E&C
Total
` Crore
Revenue
External Sales
Less: Inter- Segment Sales
Net revenue
Results
Segment Results
Unallocated Income net of
unallocable Expenses
Exceptional Items- Refer note 39
Finance Cost
Interest Income
Profit/ (Loss) before tax
Provision for Income-tax
Net Profit/ (Loss) after tax from
Continuing Operations
Profit/ (Loss) after tax from
Discontinued Operations
Profit/ (Loss) for the Year
Capital Expenditure*
Depreciation*
Impairment Loss/(reversal)*
Non Cash Expenses other than
Depreciation*
Segment Assets
Unallocated Corporate Assets
Non Current Assets Held for sale
and Discontinued Operations
Total Assets
Segment Liabilities
Unallocated Corporate Liabilities
Total Liabilities
* Only pertaining to the segment
Note:
i
Segment Revenue
9.13
-
9.13
1,519.94
-
1,519.94
1,529.07
-
1,529.07
10.55 975.53
-
10.55 975.53
-
986.08
-
986.08
(4.26) 351.05
346.79
(45.56)
175.94
130.38
355.84
-
(918.15)
1,211.14
995.62
(35.65)
1,031.27
-
1,031.27
6,176.82
16,495.07
22,671.89
544.94
23,216.83
5,118.51
7,651.31
12,769.82
599.97
(6,181.34)
(1,210.93)
1,583.93
(5,077.99)
(190.76)
(4,887.23)
3,973.84
(913.39)
5,382.55
22,869.90
28,252.45
-
28,252.45
4,695.35
9,266.22
13,961.57
- 1.14
3.84 45.03
18.00 -
15.65
-
45.24 5,337.31
28.61 4,666.74
- 0.11
1.74 37.64
- -
4.00
-
41.36 6,135.46
31.23 5,087.28
Sales between segments are carried out at arm’s length and are eliminated on consolidation. The segment revenue is
measured in the same way as in the standalone Statement of Profit and Loss.
ii
Segment Assets
Segment assets are measured in the same way as in the standalone financial statements. These assets are allocated
based on the operations of the segment and the physical location of the asset. Assets which can’t be allocated to any
of the segments are shown as Unallocated Assets. Investments held by the Company are not considered to be segment
assets and are managed by the treasury function.
iii
Segment Liabilities
Segment liabilities are measured in the same way as in the standalone financial statements. These liabilities are allocated
based on the operations of the segment. Liabilities which can’t be allocated to any of the segments are shown as
Unallocated Liabilities. The Company’s borrowings are not considered to be segment liabilities and are managed by the
treasury function.
(c)
Information about Major Customer
Revenue from operations (E&C) include ` 883.41 Crore (Previous Year: ` 512.59 Crore ) from three customer (Previous
Year: One customer) having more than 10% of the total revenue.
118
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(d) Geographical Segment:
The Company’s operations are mainly confined in India. The Company does not have material earnings from business
segment outside India. As such, there are no reportable geographical segments.
36.
(A) Standby Charges
In the matter of Stand by Charges with the Tata Power Company Limited (TPC) in respect of erstwhile Mumbai Power
Business, the Hon’ble Supreme Court has dismissed the appeal filed by TPC vide Order dated May 2, 2019 and vide
its order dated August 20, 2019 also directed the TPC pay an amount of ` 505.74 Crore to Adani Electricity Mumbai
Limited (AEML), accordingly the AEML has received and amount of ` 513.39 Crore (including Interest of ` 7.65 Crore),
which was adjusted against the amounts payable by the Company to AEML. The Company has recognised income of
` 418.09 Crore (net of earlier receivable) for the financial year 2019-20 in respect of above order.
(B) Take or Pay and Additional Energy Charges
Pursuant to the order passed by MERC dated December 12, 2007, in case No. 7 of 2002, TPC has claimed an amount
of ` 323.87 Crore towards the following:
(a)
(b)
Difference in the energy charge for energy supplied by TPC at 220 kV interconnection for the period March 2001
to May 2004 along with interest at 24% per annum up to December 31, 2007, and
Minimum offtake charges for energy for the years 1998-99 to 1999-2000 along with interest at 24% per
annum up to December 31, 2007.
In an appeal filed by the Company, ATE held that the amount in the matter (a) above is payable by the Company along
with interest at State Bank of India prime lending rate for short term borrowings. The Company has filed an appeal
against the said order before the Supreme Court, which while admitting the appeal, has restrained TPC from taking
any coercive action in respect of the matter stated in (a) above subject to Company depositing ` 25 Crores and giving
Bank Guarantee for Balance amount. The Hon’ble Supreme Court by its Judgment and Order dated 23rd July 2019 said
that no interference is required in the impugned judgment except change of the rate of interest to 9% with respect to
recovery of payment due with respect to tariff @ 2.09, with the aforesaid modification, the appeal disposed off. The
liability arising out of this has been paid by AEML.
The matter (b) was remanded to MERC for redetermination. MERC by its Order dated 22 January 2020 in MA No. 39
of 2019 in Case No. 7 of 2007 held that Energy drawn at 220 KV interconnection point and impact of change-over
consumers shall be considered while computing bills under ‘Take or Pay’ by TPC. AEML is required to pay such amount
to TPC within one month without any interest. Further, such amount received for FY 1998 - 1999 and FY 1999 -
2000 shall be shared amongst the Distribution Licensees who were taking supply from TPC in the ratio of quantum of
energy supplied.TPC has claimed ` 57.05 Cr payable by AEML under the Take or Pay obligation and has not considered
the netting of the amount which TPC has to share with Company, as Company was also a distribution licensee at the
relevant time taking supply from TPC during the period FY 1998 - 1999 and FY 1999 – 2000, claim expected to
reduce by 40%. Company is in the process of reconciliation of the amount claimed by TPC, post ascertainment same
would be paid by AEML to TPC. Further, any amount crystallized is to be recovered from consumers as per the extant
regulations through FAC and there is no liability on the Company.
37.
Investment in Delhi Airport Metro Express Private Limited
The dispute between Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of the Company and Delhi Metro Rail
Corporation (DMRC) arising out of the termination of the Concession Agreement for Delhi Airport Metro Express Line Project
(Project) by DAMEPL was referred to arbitral tribunal, which vide its award dated May 11, 2017, granted arbitration award of
` 4,662.59 Crore on the date of the Award in favour of DAMEPL being inter alia in consideration of DAMEPL transferring the
ownership of the Project to DMRC who has taken over the same. The Award was upheld by a Single Judge of Hon’ble Delhi
High Court vide Judgment dated March 06, 2018. However, the said Judgment dated March 06, 2018 was set aside by the
Division Bench of Hon’ble Delhi High Court vide Judgement dated January 15, 2019. DAMEPL has filed Special Leave Petition
(SLP) before the Hon’ble Supreme Court of India against the said Judgement dated January 15, 2019 of Division Bench of
Hon’ble Delhi High. Hon’ble Supreme Court of India, while hearing the Interlocutory Application filed by DAMEPL seeking
interim relief,had directed vide its Order dated April 22, 2019 that DAMEPL’s accounts shall not be declared as NPA till further
orders and further directed listing of the SLP for hearing on July 23, 2019. However, the matter was adjourned on DMRC’s
request dated July 22, 2019. Later, the hearing could not take place due to various reasons. The next hearing to take place
sometime after the present COVID-19 lockdown ends and courts reopen. Based on the facts of the case and the applicable
law, DAMEPL is confident of succeeding in the Hon’ble Supreme Court. In view of the above, pending outcome of SLP before
the Hon’ble Supreme Court of India, DAMEPL has continued to prepare its financial statements on going concern basis.
38. Scheme of Amalgamation of Reliance Infraprojects Limited (RInfl) with the Company
The Hon’ble High Court of Judicature of Bombay had sanctioned the Scheme of Amalgamation of Reliance Infraprojects
Limited (RInfl) with the Company on March 30, 2011 with the appointed date being April 01, 2010. As per the clause 2.3.7
119
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
of the Scheme, the Company, as determined by its Board of Directors, is permitted to adjust foreign exchange / hedging /
derivative contract losses / gains debited / credited in the Statement of Profit and Loss by a corresponding withdrawal from
or credit to General Reserve.
Pursuant to the option exercised under the above Scheme, net foreign exchange gain of ` 141.41 Crore for the year ended
March 31, 2019 (` 192.24 Crore for the year ended March 31, 2019) has been credited to the Statement of Profit and
Loss and an equivalent amount has been transferred to General Reserve. The Company has been legally advised that crediting
and debiting of the said amount in Statement of Profit and Loss is in accordance with Schedule III to the Act. Had such
transfer not been done, the Profit before tax for year ended March 31, 2020 would have been higher by ` 141.41 Crore and
General Reserve would have been lower by ` 141.41 Crore. The treatment prescribed under the Scheme override the relevant
provisions of Ind AS 1: “Presentation of Financial Statements”.
39. Exceptional Items
Particulars
` Crore
Year ended
March 31, 2020
Year ended
March 31, 2019
Write off /loss (profit) on sale of Investments
Provision/write-off/Loss on sale of loans given and w/off of interest accrued
thereon
Loss on invocation of Pledged Shares
Loss on transfer of Western Region System Strengthening Scheme (WRSS)-
Transmission Undertaking
Provision for diminution in value of investments
Expenses / (Income)
Less: Withdrawn from General Reserve
Exceptional Items (net)
-
-
-
-
-
-
-
-
2,446.61
8,410.99
1,261.14
-
678.62
12,797.36
6,616.02
6,181.34
In terms of the Scheme of amalgamation of Reliance Cement Works Private Limited with Western Region Transmission
(Maharashtra) Private Limited (WRTM) wholly owned subsidiary of the Company, which was subsequently amalgamated with
the Company w.e.f. April 1, 2013, during the year ended March 31, 2019 an amount of ` 6,616.02 Crore has been withdrawn
from General Reserve and credited to the Statement of Profit and Loss against the exceptional items of ` 12,797.36 Crore
as stated above which was debited to the Statement of Profit and Loss. Had such withdrawal not been done, the Loss before
tax for the year ended March 31, 2019 would have been higher by ` 6,616.02 Crore and General Reserve would have been
higher by an equivalent amount. The treatment prescribed under the Scheme overrides the relevant provisions of IndAS 1”
Presentation of Financial Statements”.
40. The Reliance Group of companies of which the Company is a part, supported an independent company in which the Company
holds less than 2% of equity shares (“EPC Company”) to inter alia undertake contracts and assignments for the large number
of varied projects in the fields of Power (Thermal, Hydro and Nuclear), Roads, Cement, Telecom, Metro Rail, etc. which were
proposed and/or under development by the Reliance Group. To this end along with other companies of the Reliance Group the
Company funded EPC Company by way of project advances, subscription to debentures and inter corporate deposits. The total
exposure of the Company as on March 31, 2020 is ` 8,066.08 Crore (March 31, 2019: ` 7,082.96 Crore) net of provision
of ` 3,972.17 Crore (March 31, 2019: ` 3,972.17 Crore). The Company has also provided corporate guarantees aggregating
of ` 1,775 Crore (March 31, 2019: ` 1,775 Crore).
The activities of EPC Company have been impacted by the reduced project activities of the companies of the Reliance Group.
While the Company is evaluating the nature of relationship; if any, with the independent EPC Company, based on the analysis
carried out in earlier years, the EPC Company has not been treated as related party
Given the huge opportunity in the EPC field particularly considering the Government of India’s thrust on infrastructure sector
coupled with increasing project and EPC activities of the Reliance Group, the EPC Company with its experience will be able to
achieve substantial project activities in excess of its current levels, thus enabling the EPC Company to meet its obligations. The
Company is reasonably confident that the provision will be adequate to deal with any contingency relating to recovery from
the EPC Company.
During the year, the Company has provided corporate guarantees of ` 4,895.87 Crore on behalf of certain companies towards
their borrowings. As per the reasonable estimate of the management of the Company, it does not expect any obligation
against the above guarantee amount.
41. The Company is engaged in the business of providing infrastructural facilities as per Section 186 (11) read with Schedule VI
of the Act. Accordingly, Section 186 of the Act is not applicable to the Company.
120
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
42. During the year the Company has accounted loss of ` 3,050.98 Crore being the loss on invocation of pledge of shares
of RPower held by the Company and has been adjusted against the capital reserve. According to the management of the
Company, this is an extremely rare circumstance where even though the value of long term strategic investment is high, the
same is being disposed off at much lower value for the reasons beyond the control of the Company, thereby causing the said
loss to the Company. Hence, being the capital loss, the same has been adjusted against the capital reserve.
Further, due to above said invocation, during the year investment in RPower has been reduced to 12.77% of its paid-up
share capital. Accordingly in terms of Ind AS 28 on Investments in Associates and Joint Venture, RPower ceases to be an
associate of the Company. Although this being strategic investment and Company continues to be promoter of RPower, due
to the invocations of the shares by the lenders for the reasons beyond the control of the Company the balance investments
in RPower have been carried at fair value in accordance with Ind AS 109 on Financial Instruments and valued at current
market price and loss of ` 1,973.90 Crore being the capital loss, has been adjusted against the capital reserve. Had the above
mentioned treatments of loss not been debited to capital reserve, the profit before tax for year ended March 31, 2020 would
have been lower by ` 5,024.88 Crore and capital reserve in aggregate would have been higher by an equivalent amount.
43. Disclosure under Ind AS 19 “Employee Benefits”
(a) Defined Contribution Plan
(i)
Provident fund
(ii)
Superannuation fund
(iii)
State defined contribution plans
-
-
Employer’s contribution to Employees’ state insurance
Employers’ Contribution to Employees’ Pension Scheme 1995
The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner and
the superannuation fund is administered by the trustees of the Reliance Infrastructure Limited Officer’s Superannuation
Scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the
retirement benefit schemes to fund the benefits.
The Company has recognised the following amounts as expense in the standalone financial statements for the year
Particulars
Contribution to Provident Fund
Contribution to Employees Superannuation Fund
Contribution to Employees Pension Scheme
Contribution to National Pension Scheme
Contribution to Employees State Insurance
(b) Defined Benefit Plan
Provident Fund (Applicable to certain Employees)
2019-20
4.44
0.63
0.57
1.16
0.03
` Crore
2018-19
5.95
1.03
0.81
1.63
-
The benefit involving employee established provident funds, which require interest shortfall to be recompensated are
to be considered as defined benefit plans. As per the Audited Accounts of Provident Fund Trust maintained by the
Company, the shortfall arising in meeting the stipulated interest liability, if any, gets duly provided for.
Gratuity
The Company operates a gratuity plan administered by various insurance companies. Every employee is entitled to a
benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of
Gratuity Act, 1972 or Company scheme whichever is beneficial. The same is payable at the time of separation from the
Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.
121
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Particulars
Starting Period
Date of Reporting
Assumptions
Expected Return On Plan Assets
Rate of Discounting
Rate of Salary Increase
Rate of Employee Turnover
Mortality Rate During Employment
Mortality Rate After Employment
Change in the Present Value of Defined Benefit Obligation
Present value of Benefit Obligation at the beginning of the year
Liability Transferred Out
Liability Transferred In
Interest Cost
Current Service Cost
Benefit Paid Directly by the Employer
Benefit Paid From the Fund
Actuarial (Gain) / Losses on Obligation- Due to Change in Financial Assumptions
Actuarial (Gain) / Losses on Obligation- Due to Change in Demographic
Assumptions
Actuarial (Gain) / Losses on Obligation-Due to Experience
Present Value of Benefit Obligation at the end of the year
Change in the Fair Value of Plan Assets
Fair Value of Plan Asset at the beginning of the year
Asset Transferred In / Out
Asset Transferred Out / Divestment
Interest Income
Contribution by the Employer
Benefits paid from the fund
Return on Plan Assets Excluding Interest Income#
Fair Value of Plan Asset at the end of the year
Amount Recognised in the Balance Sheet
Present Value of Benefit Obligation at the end of the year
Fair Value of Plan Assets at the end of the year
Funded Status Surplus/(Deficit)
Net Assets/(Liability) Recognized in the Balance Sheet
Provisions
Current
Non-Current
` Crore
Gratuity for
the year ended
March 31, 2020
Gratuity for
the year ended
March 31, 2019
April 01, 2019
April 01, 2018
March 31, 2020 March 31, 2019
6.59%
6.59%
5.00%
10.00%
Indian Assured
Lives Mortality
(2006-08)
N.A.
7.48%
7.48%
5.00%
10.00%
Indian Assured
Lives Mortality
(2006-08)
N.A.
As at
March 31, 2020
32.35
(1.64)
0.27
2.42
2.41
(7.58)
(3.97)
0.93
-
As at
March 31, 2019
588.20
(570.07)
-
18.89
13.70
(16.70)
(1.12)
(7.29)
(2.16)
(0.61)
24.57
27.10
0.27
(1.21)
2.03
0.02
(3.97)
0.43
24.67
(24.57)
24.67
0.10
-
-
-
8.90
32.35
466.60
-
(453.95)
35.97
-
(1.13)
(20.39)
27.10
(32.35)
27.10
(5.25)
(5.25)
(3.82)
(1.43)
122
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020 Particulars
Expenses Recognized in the Statement of Profit and Loss
Current Service Cost
Net Interest Cost/(Income)
Expenses Recognised
Income/(Expenses) Recognised in Other Comprehensive Income (OCI)
Actuarial Income/(Losses) on Obligation for the year
Return on Plan Assets Excluding Interest Income
Net Income for the year recognised in OCI
Major Categories of plan asses as a percentage of total
Insurance Fund
Prescribed Contribution For Next Year
Maturity Analysis of Project Benefit Obligation : From Fund
Projected Benefit in Future Years from the Date of Reporting
Within next 12 months
Between 2 to 5 years
Beyond 6 years
Sensitivity Analysis
Increase / (Decrease) in Present value of Defined Benefits Obligation at the
end of the year
Assumptions – Discount Rate
Sensitivity Level
Impact on defined benefit obligation –in % increase
Impact on defined benefit obligation –in % decrease
Assumptions – Future Salary Increase
Sensitivity Level
Impact on defined benefit obligation –in % increase
Impact on defined benefit obligation –in % decrease
Assumptions – Employee Turnover
Sensitivity Level
Impact on defined benefit obligation –in % increase
Impact on defined benefit obligation –in % decrease
` Crore
Gratuity for
the year ended
March 31, 2020
Gratuity for
the year ended
March 31, 2019
2.41
0.39
2.80*
1.94
0.43
2.37
100%
1.96
3.28
13.28
18.28
-
24.57
1%
(4.23%)
4.64%
1%
4.67%
(4.31%)
1%
(0.29%)
0.32%
13.70
(0.40)
13.30
9.46
0.84
8.62
100%
3.82
7.90
14.63
9.82
-
32.35
1%
(3.85%)
4.24%
1%
4.30%
(3.98%)
1%
(0.49%)
0.55%
*net off excess provision written back of ` 11.07 Crore included in other income
# includes ` 21.23 Crore for the financial year 2018-19 towards discontinued operations of MPB
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity
of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
In the absence of detailed information regarding plan assets which is funded with Reliance Life Insurance Corporation of India,
the composition of each major category of plan assets, the percentage and amount for each category of the fair value of plan
assets has not been disclosed.
123
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Risk Exposure :
Investment Risk: The Present value of the defined benefit plan liability is calculated using a discount rate which is determined
by reference to market yields at the end of reporting period on government bonds. If the return on plan asset is below this
rate, it will create plan defecit.
Interest Risk: A decrease in the bond interest rate will increase the plan liability: however, this will be partially offset by an
increase in th return on the plan debt investment.
Liquidity Risk: The present value of the defined plan liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan’s liability.
Salary Risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.
44. Disclosure of Loans and Advances in the nature of loans to Subsidiaries and Associates (Pursuant to Regulation 34(3) and
53(f) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015)
Name
Sr.
No.
Closing Bal Amt O/s
as at
Max Amt O/s during
the year
March 31,
2020
March 31,
2019
March 31,
2020
March 31,
2019
` Crore
Subsidiaries:
Mumbai Metro One Private Limited
DA Toll Road Private Limited #
Delhi Airport Metro Express Private Limited #
PS Toll Road Private Limited #
Reliance Electric Generation and Supply Limited#
TK Toll Road Private Limited #
JR Toll Road Private Limited#
GF Toll Road Private Limited#
KM Toll Road Private Limited#
TD Toll Road Private Limited#
Reliance Defence Technologies Private Limited #
Reliance Defence System & Tech Limited #
Reliance Defence and Aerospace Private Limited #
Baramati Airport Limited
Latur Airport Limited
Nanded Airport Limited
Osmanabad Airport Limited
Yavatmal Airport Limited
Reliance Aerostructure Limited #
Reliance Defence Limited#
Reliance Velocity Limited#
Reliance Defence Infrastructure Limited#
CBD Tower Private Limited#
Associates including Subsidiaries of Associates:
Reliance Power Limited*
Reliance Naval and Engineering Limited
REDS Marine Services Limited
E Complex Private Limited
RMOL Engineering and Offshore Limited
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
124
24
25
26
27
28
* ceased to be an associate of the Company
# Except for these companies, all loans and advances stated above carry interest.
There are no investments by loanees as at March 31, 2020 in the shares of the Company and Subsidiary Companies.
As at the year-end, the Company-
(a) has no loans and advances in the nature of loans to firms / companies in which directors are interested.
(b) The above amounts exclude subordinate debts.
1,178.45
-
-
-
-
1,104.48
-
-
-
-
-
-
-
-
-
283.79
18.05
64.12
31.90
-
7.33
13.75
1.50
-
-
0.01
-
0.05
0.06
0.31
6.42
0.16
0.36
101.48
-
-
0.08
0.15
283.79
15.44
57.25
31.90
-
-
-
-
-
-
0.01
-
0.05
0.10
0.22
5.62
0.13
0.26
90.01
-
0.11
0.08
-
283.79
18.05
64.12
31.90
-
7.33
13.75
1.50
-
-
0.01
-
0.05
0.11
0.31
6.42
0.16
0.36
101.48
-
0.11
0.08
0.15
283.79
15.44
57.25
31.90
108.31
3.52
4.70
7.39
30.78
1.72
0.01
2.50
0.05
0.10
0.22
5.62
0.13
0.26
90.01
3.86
0.11
0.08
-
1,104.48
2,284.89
49.40
206.17
45.10
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
45. The Company has net recoverable amounts aggregating to ` 792.44 Crore from RPower as at March 31, 2020. Management
had performed an impairment assessment of these recoverable by considering interalia the valuations of the underlying
subsidiaries of RPower which are based on their value in use (considering discounted cash flows) and valuations of other
assets of RPower/its subsidiaries based on their fair values, which have been determined by external valuation experts .
The determination of the value in use / fair value involves significant management judgement and estimates on the various
assumptions including relating to growth rates, discount rates, terminal value, time that may be required to identify buyers,
negotiation discounts etc. Accordingly, based on the assessment, impairment of said recoverable is not considered necessary
by the management.
46.
Interest in Jointly Controlled Operations
Coal Bed Methane: The Company along with M/s. Geopetrol International Inc. and Reliance Natural Resources Limited *(the
consortium) was allotted 4 Coal Bed Methane (CBM) blocks from Ministry of Petroleum and Natural Gas (Mo PNG) covering
an acreage of 3,266 square kilometers in the States of Madhya Pradesh, Andhra Pradesh and Rajasthan. The consortium had
entered into a contract with Government of India for exploration and production of CBM gas from these four CBM blocks. The
Company as part of the consortium had 45% share in each of the four blocks. M/s. Geopetrol International Inc was appointed
the operator on behalf of the consortium for all the four CBM blocks. In SP(N) CBM block, Company subsequently acquired
10% share and Operatorship from M/s. Geopetrol International Inc.
MZ-ONN-2004 / 2: The Company along with M/s. Geopetrol International Inc, NaftoGaz India Private Limited and Reliance
Natural Resources Limited *(the consortium) was allotted Oil and Gas block from Ministry of Petroleum and Natural Gas
(MoPNG), in the State of Mizoram under the New Exploration Licensing Policy (NELP-VI) round, covering an acreage of
3,619 square kilometers and the consortium had signed a production sharing contract with the Government of India for
exploration and production of Oil and Gas from block. The Company as part of the consortium had 70% share in the block.
M/s NaftoGaz India Private Limited was the operator on behalf of the consortium for the block.
Rinfra Astaldi Joint Venture (Metro): The Company along with ASTALDI S.p.A. (ASTALDI), a company incorporated under
the law of Italy, consortium was allotted a project for Part Design and Construction of Elevated Viaduct and Elevated Stations
[Excluding Architectural Finishing & Pre-engineered steel roof structure of Stations] from Chainage (-) 550 M TO 31872.088
M of LINE-4 CORRIDOR [Wadala-Ghatkopar-Mulund-Thane Kasarvadavali] of Mumbai Metro Rail Project of MMRDA.
Reliance Astaldi JV (VBSL): The Company along with ASTALDI S.p.A. (ASTALDI), a company incorporated under the law of
Italy, consortium was allotted a project from Maharashtra State Road Development Corporation Ltd. (MSRDC) for Design,
Construction and Maintenance of 17.17 km length of Versova Bandra Sea Link (VBSL) in the State of Maharashtra.
Kashedighat JV:The Company along with “Construction Association Interbudmontazh” (CAI), a company registered at Ukraine,
consortium was allotted a project from Ministry of Road Transport & Highways (MoRTH) through PWD, Maharashtra for
Rehabilitation and Upgradation of NH-66 (Erstwhile NH-17) including 6 Lanes near Parshuram village in the State of
Maharashtra under NHDP-IV on EPC Mode of Contract.
Disclosure of the Company’s share in Joint Controlled Operations:
Location
Name of the Field in the Joint
Venture
SP-(North) – CBM - 2005 / III
MZ-ONN-2004 / 2
Rinfra Astaldi Joint Venture (Metro) Mumbai, Maharashtra
Mumbai , Maharashtra
Reliance Astaldi JV (VBSL)
Parshuram Village, Maharashtra
Kashedighat
Sohagpur, Madhya Pradesh
Mizoram
Participating Interest
(%) March 31, 2020
55 % **
Terminated ***
74%
70%
90%
Participating Interest (%)
March 31, 2019
55 % **
Terminated ***
74%
70%
90%
**The Board of Directors of the Company has approved the transfer of operatorship from M/s. Geopetrol International Inc
to the Company on February 14, 2015. MoPNG approved the same on April 28, 2016 and amendment to Contract has
been conveyed on January 29, 2018. DGH approved exploration Phase-II commencement date as February 28, 2018 with
Company as Operator. Currently the company is awaiting the change of ownership of Environment clearance which was
applied to Ministry of Environment Forest and Climate Change on March 28, 2018.
*** MoPNG, Government of India in October 2012, after six years of the award of block, observed that NaftoGaz India
Limited had falsely represented itself as the subsidiary of NaftoGaz of Ukraine at the time of bidding and served notice of
termination to all consortium members referring relevant clause of NELP-VI notice inviting offer (NIO) and Article 30.3(a)
of the Production Sharing Contract (PSC) and demanded to pay penalty towards unfinished minimum work program. The
Company has received letter dated April 16, 2015 from DGH to deposit USD 9,467,079 as cost of unfinished Minimum Work
Program (MWP) to MoPNG. The claim has been contested by the Company vide letter dated June 21, 2014, May 25, 2015
and March 05, 2016. The said amount is disclosed under Contingent Liability in Note No. 32 above.
(* Share of RNRL has since been demerged to 4 Companies of Reliance Power Limited).
125
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Based on the audited statement of accounts of the JV, the Company’s shares in respect of assets and liabilities and expenditure
for the year have been accounted as under.
Particulars
2019-20
Rinfra
Astaldi
Joint
Venture
(Metro)
123.20
114.94
7.24
115.08
71.84
Reliance
Astaldi
JV
(VBSL)
15.04
15.04
6.38
14.99
2.08
Kashedighat
JV
Mizo
Block
CBM
Block
42.68
36.00
1.98
36.71
12.27
-
-
-
0.24
-
-
-
-
3.53
-
Rinfra
Astaldi
Joint
Venture
(Metro)
61.90
61.90
4.79
55.12
33.97
Reliance
Astaldi JV
(VBSL)
15.35
15.35
0.65
18.28
0.69
` Crore
2018-19
Kashedighat
JV
Mizo
Block
CBM
Block
17.91
17.91
0.32
7.69
1.03
-
-
-
0.24
-
-
0.03
-
3.53
-
45.63
19.28
21.95
-
0.01
25.94
18.24
6.98
-
0.01
Income
Expenses
Non Current Assets
Current Assets
Non Current
Liabilities
Current Liabilities
47. Lease
The Company has adopted Ind AS 116, effective annual reporting period beginning on April 1, 2019 and applied the standard
to its leases, retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial
application without making any adjustment to opening balance of retained earnings. The adoption of the standard did not have
any material impact on the Standalone Financial Statement of the Company.
The Company has entered into cancellable leasing agreement for office, residential and warehouse premises renewable by
mutual consent on mutually agreeable terms. The Company has accounted ` 3.23 Crore as lease rental for the financial year
2019-20 (` 2.69 Crore for the financial year 2018-19).
48. Fair Value Measurement and Financial Risk Management
(A)
(a)
Fair Value Measurement
Financial Instruments by category
Particulars
Financial Assets
Investments
- Equity instruments
- Subordinate debt-Debt Instruments
- Preference shares
- Debentures
Trade Receivables
Inter Corporate Deposits
Security Deposits
Loan to Employees
Other Receivables
Advance to Employees
Interest Receivable
Cash and Cash Equivalents
Bank deposits with original maturity of more
than 3 months but less than 12 months
Bank deposits with more than 12 months original
maturity
Total Financial Assets
Financial Liabilities
Borrowings (including finance lease obligations
and interest accrued thereon)
Trade payables
Deposits from consumers
Financial guarantee obligation
Unpaid dividends
Total Financial Liabilities
126
As at March 31, 2020
As at March 31, 2019
FVTPL
FVOCI
Amortised
cost
FVTPL
FVOCI
Amortised
cost
48.51
-
696.11
1,313.21
-
-
-
-
-
-
-
-
-
-
-
-
-
- 4,157.37
- 5,748.70
25.77
-
4.38
-
478.49
-
-
0.57
- 1,540.04
72.68
-
179.36
-
78.24
-
-
164.47
696.11
-
- 1,151.53
-
-
-
-
-
-
-
-
-
-
-
-
153.02
-
-
-
-
- 3,835.44
- 5,999.08
- 105.65
-
6.92
- 652.62
-
1.78
- 761.34
- 70.89
- 200.94
-
-
10.75
-
- 10.60
2,057.83
- 12,382.58 1,925.88
- 11,798.28
-
- 6,192.32
-
-
6,429.30
-
-
123.86
-
123.86
- 2,406.45
0.06
-
-
-
-
14.18
- 8,613.01
-
-
22.90
-
22.90
-
-
-
-
-
3,060.89
-
-
16.05
9,506.24
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(b)
Fair value hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the
Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation
of each level follows underneath the table.
Assets and Liabilities measured at fair value - recurring fair value
measurements as at March 31, 2020
Financial instruments at FVTPL
Unquoted equity instruments
Quoted equity instruments
Preference shares
Debentures
Financial Guarantee Obligations
Assets and Liabilities for which fair values are disclosed as at
March 31, 20120
Non-financial assets
Investment property
Financial Liabilities
Borrowings (including finance lease obligation and interest)
Assets and liabilities measured at fair value - recurring fair value
measurements as at March 31, 2019
Financial instruments at FVTPL
Unquoted equity instruments
Quoted equity instruments
Preference shares
Debentures
Financial Guarantee Obligations
Assets and liabilities for which fair values are disclosed as at March
31, 2018
Non-financial assets
Investment property
Investments in equity instruments of associates
Reliance Power Limited
Financial Liabilities
Borrowings (including finance lease obligation and interest)
There were no transfers between any levels during the year
Level 1
Level 2
Level 3
` Crore
Total
-
44.78
-
-
-
Level 1
-
-
-
-
-
Level 2
3.73
-
696.11
1,313.21
123.86
Level 3
3.73
44.78
696.11
1,313.21
123.86
Total
-
-
-
-
531.00
531.00
6,052.05
6,052.05
Level 1
Level 2
Level 3
Total
-
74.51
-
-
-
Level 1
-
-
-
-
-
Level 2
3.73
-
696.11
1,151.53
22.90
Level 3
3.73
74.51
696.11
1,151.53
22.90
Total
-
1,053.85
-
-
531.00
531.00
-
1,053.85
6,456.97
6,456.97
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have a
quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price
as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, preference shares and debentures which are included in level 3
(c) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include
•
•
the use of quoted market prices or dealer quotes for similar instruments
the fair value of the remaining financial instruments is determined using discounted cash flow analysis / Earnings /
EBITDA multiple method.
127
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
All of the resulting fair value estimates are included in level 1 and 2 except for unlisted equity securities, where the fair values
have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.
(d)
Fair value measurements using significant unobservable inputs (level 3)
Particulars
As at March 31, 2018
Other fair value gains(losses) recognised in Statement of Profit and Loss
(unrealised)
Loss recognised in Statement of profit and loss
Sale Proceeds
As at March 31, 2019
Other fair value gains(losses) recognised in Statement of Profit and Loss
(unrealised)
As at March 31, 2020
(e)
Fair value of financial assets and liabilities measured at amortised cost
Financial Assets
` Crore
Financial Liabilities
` Crore
2,443.97
271.94
860.44
4.10
1,851.37
161.68
9.24
(13.66)
-
-
22.90
(100.96)
2,013.05
123.86
Particulars
Financial Liabilities
Borrowings (including finance lease obligations and interest
accrued thereon)
As at March 31, 2020
Fair value
Carrying
amount
` Crore
As at March 31, 2019
Fair
value
Carrying
amount
6,192.32
6,054.72
6,429.30
6,456.97
The carrying amounts of trade receivables, trade payables, advances to employees including interest thereon (secured/
unsecured), intercorporate deposits, security deposits, deposits from customers, other receivable, loans to employees, interest
receivables, subordinate debt, unpaid dividends, bank deposits with original maturity of more than 3 months but less than
12 months, bank deposits with more than 12 months maturity, capital creditors, loans to employee and cash and cash
equivalents are considered to have their fair values approximately equal to their carrying values. The fair values for other assets
and liabilities were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair
values in the fair value hierarchy if there is inclusion of unobservable inputs including counterparty credit risk. The fair values of
non-current borrowings and finance lease obligations are based on discounted cash flows using a current borrowing rate. They
are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
(f)
Valuation inputs and relationship to fair value
Particulars
Fair Value as at
Valuation Techniques
Equity Instruments
3.73
3.73
March 31, 2020
March 31, 2019
Preference Shares
696.11
696.11
Earnings/EBIDTA
Multiple Method
Discounted Cash Flow
Debentures
1,313.21
1,151.53
Discounted Cash Flow
Financial Guarantee
Obligation
123.86
22.90
Credit Default Swap
(CDS)
` Crore
Significant unobservable
inputs and range
Earning growth Factor
7% to 9%
Discount rate: 12% to
16%
Discount rate: 12% to
16%
One year CDS spread for
respective entity’s credit
rating
(B) Financial Risk Management
The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk.
The Company’s senior management has overall responsibility for the establishment and oversight of the Company’s risk
managementframework. The Company has constituted a Risk Management Committee, which is responsible for developing
and monitoring the Company’s risk management policies
128
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
The Company’s risk management is carried out by the treasury department under policies approved by the board of directors.
Treasury Department identifies, evaluates and hedge financial risks in close cooperation the Company’s operating units.
(a) Credit risk
The Company is exposed to credit risk, which is the risk that one party to a financial instrument will cause a financial loss
for the other party by failing to discharge an obligation. Credit risk arises from cash and cash equivalents, investments
carried at amortised cost or fair value through profit & loss and deposits with banks and financial institutions, as well as
credit exposures to trade/non-trade customers including outstanding receivables and loans.
(i)
Credit risk management
Credit risk is managed at segment level and corporate level depending on the policy surrounding credit risk
management. For banks and financial institutions, only high rated banks/institutions are accepted. Generally all
policies surrounding credit risk have been managed at segment and corporate level. Each segment is responsible
for managing and analysing the credit risk for each of their new clients before standard payment and delivery
terms and conditions are offered. For other financial assets, the Company assesses and manages credit risk based
on internal credit rating system. The finance function consists of a separate team who assess and maintain an
internal credit rating system. Internal credit rating is performed on a Company basis for each class of financial
instruments with different characteristics. The Company assigns the following credit ratings to each class of
financial assets based on the assumptions, inputs and factors specific to the class of financial assets
Rating 1: High-quality assets, negligible credit risk
Rating 2: Quality assets, low credit risk
Rating 3: Medium to low quality assets, Moderate to high credit risk
Rating 4: Doubtful assets, credit-impaired
(ii) Provision for expected credit losses
Trade receivables, retentions on contract and amounts due from customers for contract work
The provision for expected credit losses on financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs, based
on the Company’s past history, existing market conditions, current creditability of the party as well as forward
looking estimates at the end of each reporting period.
Investments other than equity instruments
Investments in financial assets other than equity instruments are exposed to the risk of loss that may occur in
future from the failure of counterparties or issuers to make payments according to the terms of the contract. The
maximum exposure to credit risk for each class of financial assets is the carrying amount of that class of financial
instruments presented in the balance sheet
Year ended March 31, 2020:
Expected credit loss for financial assets where general model is applied
Particulars
Asset group
Expected
probability
of default
Expected
credit
losses
` Crore
Carrying
amount net
of provision
Internal
credit
rating
Estimated
gross
carrying
amount at
default
Financial
assets for
which credit
risk has / has
not increased
significantly
since initial
recognition
Loss
allowance
measured at
12 month
/Life time
expected
credit losses
Security
deposits
Other
receivables
Inter Corporate
Deposits
Rating 2
25.77
0%
NIL
25.77
Rating 1
2,161.56
7%
143.03
2,018.53
Rating
2 / 3
9,577.84
40% 3,829.14
5,748.70
129
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Year ended March 31, 2019
Expected credit loss for financial assets where general model is applied
Particulars
Asset group
` Crore
Expected
probability
of default
Expected
credit
losses
Carrying
amount net
of provision
Internal
credit
rating
Estimated
gross
carrying
amount at
default
Financial
assets for
which credit
risk has / has
not increased
significantly
since initial
recognition
Loss
allowance
measured at
12 month
/Life time
expected
credit losses
Security
deposits
Other
receivables
Rating 2
105.65
0%
NIL
105.65
Rating 1
1,556.99
9%
143.03
1,413.96
Inter Corporate
Deposits
Rating
2 / 3
9,828.22
39% 3,829.14
5,999.08
(iii) Reconciliation of loss allowance provision -Trade receivables, retentions on contract under general model
approach
Reconciliation of loss allowance
Loss allowance as at March 31, 2018
Changes in loss allowance
Loss allowance as at March 31, 2019
Changes in loss allowance
Loss allowance as at March 31, 2020
` Crore
Lifetime expected credit
losses measured using
simplified approach
91.57
(24.56)
67.01
3.05
63.96
(iv) Reconciliation of loss allowance provision - Other than trade receivables, retentions on contract under
general model approach
Reconciliation of loss allowance
Loss allowance
measured at 12 month
expected losses
Loss allowance as at March 31, 2018
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2019
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2020
2,714.87
1,257.30
3,972.17
-
3,972.17
(b)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in
funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the
basis of expected cash flows. This is generally carried out at local level in the operating companies of the Company in
accordance with practice and limits set by the Company. These limits vary by location to take into account the liquidity
of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting
cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance
sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Further in view of the certain cash flow mismatches the Company is considering debt resolution plan. Also the time
bound monetisation of assets as well as favorable and timely outcome of various claims will enable the Company to
meet its obligation. The Company is confident that such cash flows would enable it to service its debt, realise its assets
and discharge its liabilities in the normal course of its business.
130
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(i) Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturities based on their contractual
maturities for all financial liabilities at the reporting date. The amounts are gross and undiscounted and include
contractual interest payment.
` Crore
Total
7,424.28
2,406.45
123.86
14.24
Contractual maturities of financial liabilities
March 31, 2020
Less than
1 year
More than 1
year
Non-derivatives
Borrowings*
Trade payables (Including Retention payable)
Financial guarantee obligation
Other finance liabilities
Total non-derivative liabilities
3,171.57
2,381.20
-
14.24
4,252.71
25.25
123.86
-
Contractual maturities of financial liabilities
March 31, 2019
Less than 1 year
More than 1
year
Total
5,567.01
4,401.82
9,968.83
Non-derivatives
Borrowings*
2,861.40
5,588.32
Trade payables (Including Retention payable)
3,043.36
17.53
22.90
-
8,449.72
3,060.89
22.90
16.05
-
16.05
5,920.82
5,628.75
11,549.57
Financial guarantee obligation
Other finance liabilities
Total non-derivative liabilities
*Includes contractual interest payments based on the interest rate prevailing at the reporting date.
(c) Market risk
(i)
Foreign currency risk
The Company operates in a business that exposes it to foreign exchange risk arising from foreign currency transactions,
primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised
assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured
through a forecast of highly probable foreign currency cash flows. The objective of the Company is to minimise the
volatility of the INR cash flows of highly probable forecast transactions.
Foreign exchange forward contracts are taken to manage such risk.
Particulars
As at March 31, 2020
As at March 31, 2019
USD in Crore
EUR in Crore USD in Crore
EUR in Crore
Financial Assets
Investment in preference shares
Investment in equity shares
Trade Receivable
Bank balance in EEFC accounts $ USD 4,457 @
Euro 10.10
9.81
-
26.87
$
-
-
1.33
@
9.81
1.49
27.10
0.01
Exposure to foreign currency risk (assets)
30.68
1.33
38.41
-
-
1.33
@
1.33
Financial Liabilities
Trade payables
5.97
2.45
4.65
2.45
131
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments and from foreign forward exchange contracts.
Particulars
INR/USD - Increase by 6%*
INR/USD - Decrease by 6%*
*Holding all other variables constant
Impact on profit before tax ` Crore
March 31, 2020
March 31, 2019
133.85
(133.85)
128.66
(128.66)
The outstanding Euro denominated balance being insignificant has not been considered for the purpose of sensitivity
disclosures.
(ii) Cash flow and fair value interest rate risk
The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company
to cash flow interest rate risk. During March 31, 2020 and March 31, 2019, the Company’s borrowings at variable rate
were mainly denominated in INR. The Company’s fixed rate borrowings are carried at amortised cost. They are therefore
not subject to interest rate risk as defined in Ind AS 107.
(a)
Interest rate risk exposure
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
Particulars
Variable rate borrowings
Fixed rate borrowings
Total borrowings
` Crore
As at
March 31, 2020
As at
March 31, 2019
4,330.73
1,507.82
5,838.55
4,443.48
1,805.68
6,249.16
As at the end of the reporting period, the Company had the following variable rate borrowings outstanding:
March 31, 2020
March 31, 2019
Particulars
Weighted
average
interest rate
Balance
` Crore
% of total
loans
Weighted
average
interest rate
Balance
` Crore
% of total
loans
Borrowings
11.36%
4,330.73
74.17%
11.15%
4,443.48
71.11%
An analysis by maturities is provided above. The percentage of total loans shows the proportion of loans that are
currently at variable rates in relation to the total amount of borrowings.
(b)
Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates
Particulars
Interest rates – increase by 100 basis points*
Interest rates – decrease by 20 basis points*
*Holding all other variables constant
(iii) Price risk
(a)
Exposure
` Crore
Impact on profit before tax
March 31, 2020 March 31, 2019
43.31
(8.66)
44.43
(8.89)
The Company’s exposure to equity securities price risk arises from unquoted and quoted equity investments held
by the Company and classified in the balance sheet as fair value through profit and loss. To manage its price risk
arising from investments in equity securities, the Company invests only in accordance with the limits set by the
Company.
132
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
(b)
Sensitivity
Particulars
Price increase by 10%
Price decrease by 10%
49. Capital Management
Impact on other components of equity ` Crore
March 31, 2020
March 31, 2019
4.85
(4.85)
7.82
(7.82)
(a)
The Company considers the following components of its Balance Sheet to be managed capital:
1.
Total equity – retained profit, general reserves and other reserves, share capital, share premium
2. Working capital.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
our shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance
of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion
to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the
underlying assets.
The Company’s aim to translate profitable growth to superior cash generation through efficient capital management.
The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditor, and market confidence and to sustain future development and growth of its business. The Company’s
focus is on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility
for potential future borrowings, if required, without impacting the risk profile of the group. The Company will take
appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The management monitors the return on capital as well as the level of dividends to shareholders. The Company’s goal
is to continue to be able to return excess liquidity to shareholders by continuing to distribute dividends in future periods.
(b) Dividends
Final dividend for the year ended March 31, 2018 of ` 9.50 per fully paid share aggregating to ` 297.45 Crore paid in
financial year 2018-19. No dividend has been declares for the year ended March 31, 2019 and March 31, 2020.
50. The Company has constituted a Corporate Social Responsibility Committee (CSR Committee) in compliance with the provisions
of Section 135 of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The CSR Committee
consists of Ms. Ryna Karani as Chairperson and Shri. S S Kohli, Shri K Ravikumar and Shri Punit Garg as members. The CSR
Committee has formulated a Corporate Social Responsibility Policy (CSR policy) indicating the CSR activities to be undertaken
by the Company. Due to losses in the previous year, the Company was not required to spend any amount on CSR Activities
during the financial year 2019-20.
51. The Company has entered into a Share Purchase Agreement with Cube Highways and Infrastructure III Pte Limited for sale of
its entire stake in DA Toll Road Private Limited, a subsidiary of the Company. The Company has received in-principle approval
from National Highway Authority of India; final approval and other customary approvals are awaited and hence has not been
considered as non current assets held for sale and discontinued operations as per Ind AS 105 “Non Current Assets Held for
Sale and Discontinued Operations”.
52. The Company has outstanding obligations payable to lenders and in respect of loan arrangements of certain entities including
subsidiaries/associates where the Company is also a guarantor where certain amounts have also fallen due. The resolution
plans have been submitted to the lenders of respective companies which are under their consideration. The Company is
confident of meeting of all the obligations by way of time bound monetisation of its assets and receipt of various claims
and accordingly, notwithstanding the dependence on these material uncertain events the Company continues to prepare the
Standalone Financial Statement on a going concern basis.
53. The outbreak of COVID-19 epidemic has significantly impacted businesses around the world. The Government of India
ordered a nationwide lockdown, initially for 21 days which further got extended twice and now valid till May 17, 2020 to
prevent community spread of COVID-19 in India. This has resulted in significant reduction in economic activities. With respect
to operations of the Company, it has impacted its business by way of interruption in construction activities, supply chain
disruption, unavailability of personnel, closure / lock down of various other facilities etc. Few of the construction activities is
already commenced albeit in a limited manner. The Company has considered various internal and external information including
assumptions relating to economic forecasts up to the date of approval of these financials for assessing the recoverability
of various receivables, which includes unbilled receivables, investments, goodwill, contract assets and contract costs. The
assumptions used by the company have been tested through sensitivity analysis and the company expects to recover the
carrying amount of these assets based on the current indicators of future economic conditions. Further the Company has
availed protections available to it as per various contractual provisions to reduce the impact of COVID-19.
133
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
The aforesaid evaluation is based on projections and estimations which are dependent on future development including
government policies. Any changes due to the changes in situations / circumstances will be taken into consideration, if
necessary, as and when it crystallizes
54. The figures for the previous year ended March 31, 2019 have been regrouped and rearranged to make them comparable with
those of current year. Figures in bracket indicate previous year’s figures. @ - represents figures less than ` 50,000 which have
been shown at actual in brackets with @.
55. Pursuant to first proviso to sub-section (3) of section 129 of the Act, read with rule 5 of Companies (Accounts) Rules, 2014,
the Company has attached salient features of the financial statement of its subsidiaries, associates and joint-ventures in form
AOC-1 with its Consolidated Financial Statements.
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Chairman
Vice Chairman
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
Date : May 08, 2020
Place : Mumbai
134
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2020
ANNEXURE I
Statement on Impact of Audit Qualifications (for audit report with modified opinion)
submitted along-with Annual Audited Financial Results - Standalone)
Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2020
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016] Standalone
I
Sr.
No.
Particulars
Turnover / Total income
Total Expenditure including exceptional items
Net profit/(loss) for the year after tax
Earnings Per Share (`)
Total Assets
Total Liabilities
Net worth-Other Equity
1
2
3
4
6
7
8
Audit Qualification (each audit qualification separately):
a.
II
Audited Figures
(` Crore) (as
reported before
adjusting for
qualifications)
Audited Figures
(` Crore) (audited
figures after
adjusting for
qualifications)
3,338.71
2,343.09
1,031.27
39.21
23,216.83
12,769.82
10,447.01
3,338.71
7,367.97
(3,993.61)
(151.85)
23,216.83
12,769.82
10,447.01
Details of Audit Qualification:
1. We refer to Note 11 to the standalone financial results regarding the Company’s exposure in an EPC Company
as on March 31, 2020 aggregating to ` 8,066.08 Crore (net of provision of ` 3,972.17 Crore). Further, the
Company has also provided corporate guarantees aggregating to ` 1,775 Crore on behalf of the aforesaid EPC
Company towards borrowings of the EPC Company.
According to the Management of the Company, these amounts have been funded mainly for general corporate
purposes and towards funding of working capital requirements of the party which has been engaged in providing
Engineering, Procurement and Construction (EPC) services primarily to the Company and its subsidiaries and its
associates and the EPC Company will be able to meet its obligation.
As referred to in the above note, the Company has further provided Corporate Guarantees of ` 4,895.87 Crore
in favour of certain companies towards their borrowings. According to the Management of the Company these
amounts have been given for general corporate purposes.
We were unable to evaluate about the relationship, recoverability and possible obligation towards the Corporate
Guarantees given. Accordingly, we are unable to determine the consequential implications arising therefrom in
the standalone financial results of the Company.
2. We refer to Note 8 of the standalone financial results wherein the loss on invocation of shares held in Reliance
Power Limited (RPower) amounting to ` 9.59 Crore and ` 3,050.98 Crore for the quarter and year ended
March 31, 2020 respectively has been adjusted against the capital reserve. The above treatment of loss on
invocation of shares is not accordance with the Ind AS 28 “Investments in Associates and Joint Ventures” and
Ind AS 1 “Presentation of Financial Statements”.
Further, due to the invocation of shares as stated above RPower ceases to be an associate of the Company.
The balance investments in RPower have been carried at fair value in accordance with Ind AS 109 “Financial
Instruments” and valued at current market price and loss on fair valuation amounting to ` 1,973.90 Crore
has been adjusted against the capital reserve. The above treatment is not in accordance with the Ind AS 1
“Presentation of Financial Statements” and Ind AS 109 “Financial Instruments”.
Had the Company followed the treatments prescribed under the above mentioned Ind AS’s the Profit before tax
for the quarter and year ended would have been lower by ` 1,983.49 Crore and ` 5,024.88 Crore and capital
reserve and total equity would have been higher by an equivalent amount
b.
c.
Type of Audit Qualification : Qualified Opinion / Disclaimer of Opinion /
Adverse Opinion
Frequency of qualification: Whether appeared first time / repetitive /
since how long continuing
Disclaimer of Opinion
Item II(a)(1) coming Since year ended
March 31, 2019 Item II(a)(2) - first time
135
Reliance Infrastructure Limited
ANNEXURE I
d.
e.
For Audit Qualification(s) where the impact is quantified by the auditor, Management’s Views:
With respect to Item II(a)(2) Management view is set out in note 8 to the Standalone Financial Results, as below:
During the quarter ended and year ended March 31, 2020, ` 9.59 Crore and ` 3,050.98 Crore respectively being the
loss on invocation of pledge of shares of RPower held by the Parent Company has been adjusted against the capital
reserve/capital reserve on consolidation. According to the management of the Parent Company, this is an extremely
rare circumstance where even though the value of long term strategic investment is high, the same is being disposed
off at much lower value for the reasons beyond the control of the Parent Company, thereby causing the said loss to
the Parent Company. Hence, being the capital loss, the same has been adjusted against the capital reserve.
Further, due to above said invocation, during the quarter, investment in RPower has been reduced to 12.77% of
its paid-up share capital. Accordingly in terms of Ind AS 28 on Investments in Associates, RPower ceases to be an
associate of the Parent Company. Although this being strategic investment and Parent Company continues to be
promoter of the RPower, due to the invocations of the shares by the lenders for the reasons beyond the control of
the Parent Company the balance investments in RPower have been carried at fair value in accordance with Ind AS
109 on financial instruments and valued at current market price and loss of ` 1,973.90 Crore being the capital loss,
has been adjusted against the capital reserve..
For Audit Qualification(s) where the impact is not quantified by the auditor (with respect to II(a)(1) above:
(i) Management’s estimation on the impact of audit qualification:
(ii)
Not Determinable
If management is unable to estimate the impact, reasons for the same:
With respect to Item II(a)(1) Management view is set out in note 11 to the Standalone Financial Results, as below:
The Reliance Group of companies of which the Company is a part, supported an independent company in which the
Company holds less than 2% of equity shares (“EPC Company”) to inter alia undertake contracts and assignments
for the large number of varied projects in the fields of Power (Thermal, Hydro and Nuclear), Roads, Cement,
Telecom, Metro Rail, etc. which were proposed and/or under development by the Reliance Group. To this end
along with other companies of the Reliance Group the Company funded EPC Company by way of project advances,
subscription to debentures and inter corporate deposits. The total exposure of the Company as on March 31, 2020
is ` 8,066.08 Crore net of provision of ` 3,972.17 Crore. The Company has also provided corporate guarantees
aggregating of ` 1,775 Crore.
The activities of EPC Company have been impacted by the reduced project activities of the companies of the
Reliance Group. While the Company is evaluating the nature of relationship; if any, with the independent EPC
Company, based on the analysis carried out in earlier years, the EPC Company has not been treated as related party
Given the huge opportunity in the EPC field particularly considering the Government of India’s thrust on infrastructure
sector coupled with increasing project and EPC activities of the Reliance Group, the EPC Company with its experience
will be able to achieve substantial project activities in excess of its current levels, thus enabling the EPC Company
to meet its obligations. The Company is reasonably confident that the provision will be adequate to deal with any
contingency relating to recovery from the EPC Company.
During the year, the Company has provided corporate guarantees of ` 4,895.87 Crore on behalf of certain
companies towards their borrowings. As per the reasonable estimate of the management of the Company, it does
not expect any obligation against the above guarantee amount.
(iii) Auditors’ Comments on (i) or (ii) above:
Impact is not determinable.
III
Signatories:
Punit Garg
Sridhar Narasimhan
Manjari Kacker
(Executive Director and Chief Executive Officer)
(Chief Financial Officer)
(Audit Committee Chairperson)
Statutory Auditors
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No:107783W/W100593
Vishal D Shah
Partner
Membership No. 119303
UDIN: 20119303AAAABO6852
Place: Mumbai
Date: May 8, 2020
136
Reliance Infrastructure Limited
Consolidated Financial
Statement
137
Reliance Infrastructure Limited Independent Auditors’ Report on the Consolidated Financial Statements
To the Member of Reliance Infrastructure Limited
Report on the Consolidated Financial Statements
Disclaimer of Opinion
statements of Reliance
We were engaged to audit the accompanying consolidated
financial
Infrastructure Limited
(hereinafter referred to as the ‘Parent Company”) and its
subsidiaries (Parent Company and its subsidiaries together
referred to as “the Group”), its associates and its joint venture
which comprise the consolidated balance sheet as at March 31,
2020, the consolidated statement of profit and loss (including
other comprehensive income), consolidated statement of
changes in equity and consolidated statement of cash flows for
the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred
to as “the consolidated financial statements”).
We do not express an opinion on the accompanying consolidated
financial statements of the Group. Because of the significance
of the matters described in the Basis for Disclaimer of Opinion
section of our report, we have not been able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion
on these consolidated financial statements.
Basis for Disclaimer of Opinion
1. We refer to Note 31 to the consolidated financial
statements regarding the Parent Company has exposure
in an EPC Company as on March 31, 2020 aggregating to
` 8,066.08 Crore (net of provision of ` 3,972.17 Crore).
Further, the Parent Company has also provided corporate
guarantees aggregating to ` 1,775 Crore on behalf of the
aforesaid EPC Company towards borrowings of the EPC
Company.
According to the Management of the Parent Company,
these amounts have been funded mainly for general
corporate purposes and towards funding of working
capital requirements of the party which has been engaged
in providing Engineering, Procurement and Construction
(EPC) services primarily to the Parent Company and its
subsidiaries and its associates and the EPC Company will
be able to meet its obligation.
As referred to in the above note, the Parent Company
has further provided Corporate Guarantees of ` 4,895.87
Crore on behalf of certain companies towards their
borrowings. According to the Management of the Parent
Company these amounts have been given for general
corporate purposes.
We were unable to obtain sufficient and appropriate audit
evidence about the relationship, the recoverability and
possible obligation towards the Corporate Guarantee given.
Accordingly, we are unable to determine the consequential
implications arising therefrom in the consolidated financial
statements.
2. We refer to Note 36 (a) to the consolidated financial
statements wherein the loss on invocation of shares
held in Reliance Power Limited (RPower) amounting to
` 3,215.77 Crore for the year ended March 31, 2020
has been adjusted against the capital reserve / capital
reserve on consolidation. The above treatment of loss on
138
invocation of shares is not accordance with the Ind AS 28
“Investments in Associates and Joint Ventures” and Ind AS
1 “Presentation of Financial Statements”.
Further, due to the invocation of shares as stated above,
RPower ceases to be an associate of the Company.
The balance investments in RPower have been carried
at fair value in accordance with Ind AS 109 “Financial
Instruments” and valued at current market price and loss
on fair valuation amounting to ` 2,096.25 Crore has been
adjusted against the capital reserve / capital reserve on
consolidation. The above treatment is not in accordance
with the Ind AS 1 “Presentation of Financial Statements”
and Ind AS 109 “Financial Instruments”.
Had the Group followed the treatment prescribed under
the above Ind AS’s the Profit before tax for the year ended
would have been lower by ` 5,312.02 Crore and capital
reserve / capital reserve on consolidation would have
been higher by an equivalent amount.
Material Uncertainty Related to Going Concern
We draw attention to Note 8(i), 27 and 29 to the consolidated
financial statements in respect of:
1. Mumbai Metro One Private Limited (MMOPL) whose net
worth has been eroded and, as at the year end, MMOPL’s
current liabilities exceeded its current assets. These events
or conditions, along with other matters as set forth in Note
29(a) to the consolidated financial statements, indicate
that a material uncertainty exists that may cast significant
doubt on MMOPL’s ability to continue as a going concern.
However, the financial statements of MMOPL have been
prepared on a going concern basis for the reasons stated
in the said Note.
2.
3.
4.
GF Toll Road Private Limited (GFTR) which indicates that
due to the inability of GFTR to repay the overdue amount
of installments, the lenders have classified GFTR as a Non-
Performing Asset (NPA) during the year ended March 31,
2020. The events and conditions along with the other
matters as set forth in Note 29(b) to the consolidated
financial statements, indicate that a material uncertainty
exists that may cast significant doubt on GFTR ability
to continue as a going concern. However, the financial
statements of GFTR have been prepared on a going
concern basis for the reasons stated in the said Note.
TK Toll Road Private Limited (TKTR), which indicates that
TKTR has incurred a net loss during the year ended March
31, 2020 and as on date the current liabilities exceed the
current assets. These conditions along with other matters
set forth in Note 29(c) to the consolidated financial
statements, indicate that a material uncertainty exists that
may cast significant doubt on TKTR’s ability to continue
as a going concern. However, the financial statements of
TKTR have been prepared on a going concern basis for the
reasons stated in the said Note.
TD Toll Road Private Limited (TDTR), which indicates that
TDTR has incurred a net loss during the year ended March
31, 2020 and as on date the current liabilities exceed the
current assets. These conditions along with other matters
set forth in Note 29(d) to the consolidated financial
statements, indicate that a material uncertainty exists that
Reliance Infrastructure Limited
Independent Auditors’ Report on the Consolidated Financial Statements
may cast significant doubt on TDTR’s ability to continue
as a going concern. However, the financial statements of
TDTR have been prepared on a going concern basis for the
reasons stated in the said Note.
KM Toll Road Private Limited (KMTR), has terminated the
Concession Agreement with National Highways Authority
of India (NHAI) for Kandla Mundra Road Project (Project)
on May 7, 2019, and accordingly the operations of the
Project post termination date has ceased to continue.
These conditions alongwith the other matters set forth
in Note 8(i) indicate that material uncertainty exists that
may cast significant doubt on KMTR’s ability to continue
as a going concern. However, the financial statements of
KMTR have been prepared on a going concern basis for
the reasons stated in the said Note.
Delhi Airport Metro Express Private Limited (DAMEPL)
which has significant accumulated losses and a special
leave petition in relation to an Arbitration Award is pending
with the Honorable Supreme Court of India. These events
and conditions as more fully described in Note 27 to the
consolidated financial statements indicate that a material
uncertainty exists that may cast a significant doubt on
DAMEPL’s ability to continue as a going concern.
Additionally the auditors of certain subsidiaries and
associates have highlighted material uncertainties related
to going concern / emphasis of matter paragraph in their
respective audit reports.
5.
6.
7.
The Parent Company has outstanding obligations to lenders and
is also an guarantor for its subsidiaries and as stated in paragraphs
1 to 7 above in respect of the subsidiaries and associates of the
Parent Company, the consequential impact of these events or
conditions, along with other matters as set forth in Note 29(e)
to the consolidated financial statements, indicate that a material
uncertainty exists that may cast significant doubt on the Group’s
ability to continue as a going concern.
Our opinion on the consolidated financial statements is not
modified in respect of the above matters.
Emphasis of matter
1. We draw attention to Note 26 to the consolidated financial
statements regarding the Scheme of Amalgamation
(‘the Scheme’) between Reliance Infraprojects Limited
(wholly owned subsidiary of the Parent Company) and
the Parent Company sanctioned by the Hon’ble High
Court of Judicature at Bombay vide its order dated
March 30, 2011, wherein the Parent Company, as
determined by the Board of Directors, is permitted to
adjust foreign exchange/derivative/hedging losses/gains
debited/credited to the Statement of Profit and Loss by
a corresponding withdrawal from or credit to General
Reserve which overrides the relevant provisions of Ind
AS – 1 ”Presentation of financial statements”. The net
foreign exchange gain of ` 141.41 Crore for the year
ended March 31, 2020 has been credited to Statement
of Profit and Loss and an equivalent amount has been
transferred to General Reserve in terms of the Scheme.
Had such transfer not been made, profit before tax for
the year ended March 31, 2020 would have been higher
by ` 141.41 Crore and General Reserve would have been
lower by an equivalent amount.
2. We draw attention to Note 36(b) to the consolidated
financial statements which describes the impairment
assessment performed by the Parent Company in respect
of its receivable aggregating to ` 2,044.50 Crore in
Reliance Power Limited (RPower) as at March 31, 2020
in accordance with Ind AS 36 “Impairment of assets” / Ind
AS 109 “Financial Instruments”. This assessment involves
significant management judgment and estimates on the
valuation methodology and various assumptions used in
determination of value in use/fair value by independent
valuation experts / management as more fully described
in the aforesaid note. Based on management’s assessment
and
impairment
is considered necessary on the investment and the
recoverable amounts.
independent valuation
reports, no
3. We draw attention to Note 8(i) to the consolidated financial
statements with respect to KMTR has terminated the
concession agreement ) for Kandla Mundra Road Project
(Project) with NHAI on May 7, 2019 and accordingly, the
operations of the Project post termination date it is taken
over by NHAI and NHAI has given a contract to a third
party for toll collection. No provision for impairment in
values of assets of the Company has been considered in
the financial statements of KMTR for the reasons stated
in the said note.
4. We draw attention to Note 35(f) to the consolidated
financial statements with regard to Delhi Electricity
Regulatory Commission (DERC) Tariff Order received by
BSES Rajdhani Power Limited (BRPL) and BSES Yamuna
Power Limited (BYPL), subsidiaries of the Parent Company,
wherein revenue gap upto March 31, 2014, March 31,
2015, March 31, 2016, March 31, 2017 and March
31, 2018 has been trued up with certain disallowances.
BRPL and BYPL have preferred an appeal before Appellate
Tribunal (APTEL) on the said disallowance and based on
legal opinion, no impact of such disallowance, which
is subject matter of appeal, has been considered. The
opinion of BRPL and BYPL’s auditors is not modified in
respect of this matter.
5. We draw attention to Note 35(c) to the consolidated
financial statements regarding dues payable to various
electricity generating companies and timely recovery
of accumulated regulatory deferral account balance by
BRPL and BYPL in respect of which the dispute is pending
before Hon’ble Supreme Court. The opinion of BRPL and
BYPL’s auditors is not modified in respect of this matter.
6. We draw attention to Note 35(d) to the consolidated
financial statements relating to the audit of BRPL and
BYPL conducted by the Comptroller and Auditor General
of India (CAG), stay granted by the Honorable High Court
against any action to be taken by CAG pursuant to the
said audit and the subsequent appeal by the CAG and
others against judgment of the Honorable High Court. The
opinion of BRPL and BYPL’s auditors is not modified in
respect of this matter.
7. We draw attention to Note 37 to the consolidated financial
statements, as regards to the management evaluation of
COVID – 19 impact on the future performance of the
Group.
Our opinion on the consolidated financial statements is not
modified in respect of the above matters.
139
Reliance Infrastructure Limited Independent Auditors’ Report on the Consolidated Financial Statements
Responsibilities of Management and Those Charged with
Governance for the Consolidated Financial Statements
The Parent Company’s management and Board of Directors
are responsible for the preparation and presentation of these
consolidated financial statements in terms of the requirements
of the Companies Act, 2013 (“Act”) that give a true and fair
view of the consolidated state of affairs, consolidated profit/loss
and other comprehensive income/loss, consolidated statement
of changes in equity and consolidated cash flows of the Group
including its associates and joint venture in accordance with
the accounting principles generally accepted in India, including
the Indian Accounting Standards (Ind AS) specified under
section 133 of the Act. The respective Board of Directors of
the companies included in the Group and of its associates and
joint venture are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act
for safeguarding the assets of each company and for preventing
and detecting frauds and other irregularities; the selection and
application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the consolidated financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error, which have
been used for the purpose of preparation of the consolidated
financial statements by the Directors of the Parent Company,
as aforesaid.
In preparing the consolidated financial statements, the respective
management and Board of Directors of the companies included
in the Group and of its associates and joint venture are
responsible for assessing the ability of each company to continue
as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the company or
to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in
the Group and of its associates and joint venture are responsible
for overseeing the financial reporting process of each company.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
Our responsibility is to conduct an audit of the Group’s
consolidated financial statements in accordance with Standards
on Auditing and to issue an auditor’s report. However, because
of the matters described in the Basis for Disclaimer of Opinion
section of our report, we were not able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion
on these consolidated financial statements.
We are independent of the Group in accordance with the Code of
Ethics and provisions of the Act that are relevant to our audit of
the consolidated financial statements in India under the Act, and
we have fulfilled our other ethical responsibilities in accordance
with the Code of Ethics and the requirements under the Act.
Other Matters
a. We did not audit the financial statements of 27 subsidiaries
included in the consolidated financial statements, whose
financial statements reflect total assets of ` 46,772.76
140
b.
Crore as at March 31, 2020, total revenue of ` 18,915.90
Crore and net cash inflows amounting to ` 59.99 Crore
for the year ended March 31, 2020. The consolidated
financial statements also include the Group’s share of net
profit (and other comprehensive income) of ` Nil for the
year ended March 31, 2020 in respect of 4 associates
whose financial statements have not been audited by us.
These financial statements have been audited by other
auditors whose reports have been furnished to us by
the Management, and our opinion on the consolidated
financial statements, in so far as it relates to the amounts
and disclosures included in respect of these subsidiaries,
associates and joint venture and our report in terms of
sub-section (3) of Section 143 of the Act, in so far as
it relates to the aforesaid subsidiaries, associates and
joint venture is based solely on the reports of the other
auditors.
financial
The
information of
statements/financial
2 subsidiaries, whose financial statements/financial
information reflect total assets of ` 213.75 Crore as at
March 31, 2020, total revenues of ` 10.12 Crore and
net cash outflows amounting to ` 41.56 Crore for the
year ended on March 31, 2020, as considered in the
consolidated financial statements, have not been audited
either by us or by other auditors. The consolidated financial
statements also include the Group’s share of net profit (and
other comprehensive income) of ` 6.38 Crore for the year
ended March 31, 2020 in respect of 2 associates and one
jointly controlled entities whose financial statements have
not been audited either by us or by other auditors. These
unaudited financial statements/financial information have
been furnished to us by the Management and our opinion
on the consolidated financial statements in so far as it
relates to the amounts and disclosures included in respect
of this subsidiary and our report in terms of sub-section
(3) of Section 143 of the Act in so far as it relates to the
aforesaid subsidiary, associate and jointly controlled entity
is based solely on such unaudited financial statements/
financial information. In our opinion and according to the
information and explanations given to us by the Parent
Company’s Management, these financial statements/
financial information are not material to the Group.
Our opinion on the consolidated financial statements, and
our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters
with respect to our reliance on the work done and the
reports of the other auditors and the financial statements/
financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
(A) As required by Section 143(3) of the Act, based on
our audit and on the consideration of reports of the
other auditors on separate financial statements of such
subsidiaries, associates and joint venture as were audited
by other auditors, as noted in the ‘Other Matters’ section,
we report, to the extent applicable, that.
a)
As described in the Basis for Disclaimer of Opinion
section, we were unable to obtain all the information
and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
Reliance Infrastructure Limited
Independent Auditors’ Report on the Consolidated Financial Statements
(B) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditor’s) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us and based on
the consideration of the reports of the other auditors on
separate financial statements of the subsidiaries, associates
and joint venture, as noted in the ‘Other Matters’ section:
i.
ii.
iii.
Except for the possible effects of the matters
described in the Basis for Disclaimer of Opinion
section, the consolidated financial statements
disclose the impact of pending litigations as at March
31, 2020 on the consolidated financial position of
the Group, its associates and joint venture. Refer
Note 22 to the consolidated financial statements.
Except for the possible effects of the matters
described in the Basis for Disclaimer of Opinion
section, the Group, its associates and joint venture
did not have any material foreseeable losses on
long-term contracts including derivative contracts
during the year ended March 31, 2020.
Other than for dividend amounting to ` 0.12
Crore pertaining to the financial year 2010-11
and financial year 2011-12, which were kept in
abeyance by the Parent Company, due to pending
litigation amongst the investors, there has been
no delay in transferring amounts, required to
be transferred, to the Investor Education and
Protection Fund by the Parent Company and its
subsidiary companies, associate companies and joint
venture incorporated in India during the year ended
March 31, 2020.
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
UDIN: 20119303AAAABS3039
Mumbai
May 08, 2020
b)
c)
d)
e)
f)
Due to the effects / possible effects of the matters
described in the Basis for Disclaimer of Opinion section,
we are unable to state whether proper books of account
as required by law have been kept by the Group so far as
it appears from our examination of those books.
The consolidated balance sheet,
the consolidated
statement of profit and loss (including other comprehensive
income), the consolidated statement of changes in equity
and the consolidated statement of cash flows dealt with
by this Report are in agreement with the relevant books of
account maintained for the purpose of preparation of the
consolidated financial statements.
Due to the effects/possible effects of the matters
described in the Basis for Disclaimer of Opinion section,
we are unable to state whether the consolidated financial
statements comply with the Indian Accounting Standards
specified under section 133 of the Act.
The matters described in the Basis for Disclaimer of
Opinion section and going concern matter described in the
Material Uncertainty related to Going Concern may have
an adverse effect on the functioning of the Group.
On the basis of the written representations received from
the directors of the Parent Company as on March 31,
2020 taken on record by the Board of Directors of the
Parent Company and the reports of the statutory auditors
of its subsidiary companies, associate companies and joint
venture incorporated in India, none of the directors of
the Group companies, its associate companies, and joint
venture incorporated in India is disqualified as on March
31, 2020 from being appointed as a director in terms of
Section 164(2) of the Act.
g)
The reservation relating to maintenance of accounts and
other matters connected therewith are as stated in the
Basis for Disclaimer of Opinion section.
h) With respect to the matter to be included in the Auditor’s
report under section 197(16) of the Act:
In our opinion and according to the information and
explanations given to us and based on the reports of the
statutory auditors of such subsidiary companies, associate
companies and joint venture incorporated in India which
were not audited by us, the remuneration paid during
the current year by the Parent Company, its subsidiary
companies, associate companies and joint venture to its
directors is in accordance with the provisions of Section
197 of the Act. The remuneration paid to any director by
the Parent Company, its subsidiary companies, associate
companies and joint venture is not in excess of the limit
laid down under Section 197 of the Act.
i)
With respect to the adequacy of the internal financial
controls with reference to consolidated financial statements
of the Parent Company, its subsidiary companies, associate
companies and joint venture incorporated in India and
the operating effectiveness of such controls, refer to our
separate Report in “Annexure A”.
141
Reliance Infrastructure Limited
Annexure A to the Independent Auditor’s Report
Annexure A to the Independent Auditor’s Report on the consolidated financial statements of Reliance Infrastructure Limited
for the year ended March 31, 2020
Report on the internal financial controls with reference to the
Because of the matters described in the Disclaimer of Opinion
aforesaid consolidated financial statements under Clause (i)
paragraph below and after considering the audit evidence of
of Sub-section 3 of Section 143 of the Companies Act, 2013
the other auditors in terms of their reports referred to in the
(Referred to in paragraph (A)(i) under ‘Report on Other Legal
and Regulatory Requirements’ section of our report of even
date)
We were engaged to audit the internal financial controls with
reference to consolidated financial statements of Reliance
Infrastructure Limited (hereinafter referred to as “the Parent
Other Matters paragraph below, we were not able to obtain
sufficient appropriate audit evidence to provide a basis for an
audit opinion on internal financial controls system with reference
to the consolidated financial statements of the Parent Company.
Meaning of Internal Financial controls with Reference to
Consolidated Financial Statements
Company”) and its subsidiary companies, its associate companies
A company’s internal financial controls with reference to
and joint venture company, which are companies incorporated in
consolidated financial statements are is a process designed to
India, as of March 31, 2020, in conjunction with our audit of the
provide reasonable assurance regarding the reliability of financial
consolidated financial statements of the Parent Company for the
reporting and the preparation of financial statements for external
year ended on that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Parent Company, its
subsidiary companies, its associate companies and joint venture
company, which are companies incorporated in India, are
responsible for establishing and maintaining internal financial
controls with reference to consolidated financial statements
based on the criteria established by the respective company
considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Controls over Financial
Reporting (‘Guidance Note’) issued by the Institute of Chartered
Accountants of India (‘ICAI’). These responsibilities include the
design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence
to the respective company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required
under the Companies Act, 2013 (hereinafter referred to as “the
Act”).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Parent Company’s
internal financial controls with reference to consolidated financial
statements based on our audit conducted in accordance with
purposes in accordance with generally accepted accounting
principles. A company’s internal financial controls with reference
to consolidated financial statements includes those policies and
procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in
accordance with authorisations of management and directors of
the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use,
or disposition of the company’s assets that could have a material
effect on the financial statements.
Disclaimer of Opinion
As at March 31, 2020, the Parent Company has exposure in an
EPC Company as on March 31, 2020 aggregating ` 8,066.08
Crore (net of provision of ` 3,972.17 Crore). Further, the Parent
Company has provided corporate guarantees aggregating to
` 1,775 Crore on behalf of the aforesaid EPC Company towards
borrowings of the EPC Company.
The Parent Company has further provided Corporate Guarantees
of ` 4,895.87 Crore on behalf of certain companies towards
their borrowings.
the Guidance Note on Audit of Internal Financial Controls Over
We were unable to evaluate about the relationship, recoverability
Financial Reporting (the “Guidance Note”) and the Standards on
and possible obligation towards the Corporate Guarantees given.
Auditing, to the extent applicable to an audit of internal financial
Accordingly, we are unable to determine the consequential
controls, both issued by the Institute of Chartered Accountants
implications arising therefrom in the consolidated financial
of India.
142
statements of the Group and its associates and joint ventures.
Reliance Infrastructure Limited Annexure A to the Independent Auditor’s Report
Because of the above reasons, we are unable to obtain sufficient
controls with reference to consolidated financial statements
appropriate audit evidence to provide a basis for our opinion
insofar as it relates to 27 subsidiary companies and 4 associate
whether the Parent Company had adequate internal financial
companies, which are companies incorporated in India, is based
controls with reference to consolidated financial statements
on the corresponding reports of the auditors of such companies
and whether such internal financial controls were operating
incorporated in India.
effectively as at March 31, 2020.
We have considered the disclaimer reported above in determining
the nature, timing, and extent of audit tests applied in our audit
of the consolidated financial statements of the Parent Company,
and the disclaimer has affected our opinion on the consolidated
financial statements of the Parent Company and we have issued
a Disclaimer of Opinion on the consolidated financial statements
of the Parent Company.
Other Matters
Our aforesaid reports under Section 143(3)(i) of the Act on the
adequacy and operating effectiveness of the internal financial
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
UDIN: 20119303AAAABS3039
Mumbai
May 08, 2020
143
Reliance Infrastructure Limited Consolidated Balance Sheet as at March 31, 2020
Particulars
ASSETS
Non-current Assets
Property, Plant and Equipment
Capital work-in-progress
Investment Property
Concession Intangible Assets
Other Intangible Assets
Intangible Assets under development
Financial Assets:
Investments
Trade Receivables
Loans
Other Financial Assets
Deferred Tax Assets (net)
Advance Tax Assets (net)
Other Non - current Assets
Total Non-current Assets
Current assets
Inventories
Financial Assets:
Investments
Trade Receivables
Cash and Cash Equivalents
Bank balances other than cash and cash equivalents
Loans
Other Financial Assets
Current Tax Assets (Net)
Other Current Assets
Total Current Assets
Assets classified as held for sale
Regulatory deferral account debit balances and related deferred tax balances
Total Assets
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital
Other Equity
Equity attributable to owners
Non-controlling Interests
Total Equity
LIABILITIES
Non-current Liabilities
Financial Liabilities:
Borrowings
Trade Payables
Total outstanding dues of micro enterprises and small enterprises
Total outstanding dues of creditors other than micro enterprises and small enterprises
Other Financial Liabilities
Provisions
Deferred Tax Liabilities (net)
Other Non - current Liabilities
Total Non-current Liabilities
Current Liabilities
Financial Liabilities:
Borrowings
Trade Payables
Total outstanding dues of micro enterprises and small enterprises
Total outstanding dues of creditors other than micro enterprises and small enterprises
Other Financial Liabilities
Other Current Liabilities
Provisions
Current Tax Liabilities (net)
Total Current Liabilities
Liabilities relating to assets held for sale
Total Equity and Liabilities
The accompanying notes form an integral part of the Consolidated Financial Statements (1 – 42).
Notes
As at
March 31, 2020
` Crore
As at
March 31, 2019
3
3
4
7(c)
5
5
7(a)
7(d)
7(g)
7(h)
13(f)
7(i)
6
7(b)
7(d)
7(e)
7(f)
7(g)
7(h)
7(i)
9
10(a)
10(b)
11(a)
11(c)
11(d)
12
13(f)
11(e)
11(b)
11(c)
11(d)
11(e)
12
9,453.05
1,121.70
482.66
12,109.98
1,207.71
1,407.72
1,393.53
51.13
17.90
301.72
242.14
41.18
170.78
28,001.20
64.34
0.93
4,954.04
732.39
727.79
5,275.20
4,168.14
12.47
1,601.80
17,537.10
1,646.93
17,917.57
65,102.80
263.03
9,529.34
9,792.37
1,829.45
11,621.82
9,365.73
1,115.27
502.41
13,950.59
1,129.70
1,477.15
6,725.83
3.56
51.19
255.74
189.31
31.13
530.15
35,327.76
62.05
16.63
4,467.52
634.95
259.38
5,619.49
3,569.67
9.76
1,910.95
16,550.40
-
16,505.00
68,383.16
263.03
13,912.71
14,175.74
1,690.11
15,865.85
11,758.86
13,007.73
-
25.26
2,409.73
540.83
569.40
3,162.70
18,466.78
-
17.53
2,663.29
456.96
681.63
3,090.06
19,917.20
2,541.37
2,852.51
56.83
20,039.35
6,894.88
3,136.91
573.08
483.06
33,725.48
1,288.72
65,102.80
35.46
19,783.80
5,291.08
3,540.44
586.04
510.78
32,600.11
-
68,383.16
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Date : May 08, 2020
Place : Mumbai
144
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Chairman
Vice Chairman
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
Reliance Infrastructure Limited
Consolidated Statement of Profit and Loss for the year ended March 31, 2020
Particulars
Continuing Operations:
Revenue from Operations
Other Income
Less: Transfer to General Reserve
Total Income
Expenses
Cost of Power Purchased
Cost of Fuel Consumed
Construction Material Consumed and Sub-Contracting Charges
Employee Benefits Expenses
Finance Costs
Late Payment Surcharge
Depreciation and Amortization Expense
Other Expenses
Total Expenses
Profit / (Loss) from Continuing Operations before Exceptional Items, Rate Regulated Activities and Tax
Exceptional Items:
Expenses
Less : Transfer from General Reserve
(Loss) from Continuing Operations before Rate Regulated Activities and Tax
Add : Regulatory Income / (Expenses) (Net of Deferred Tax)
Profit / (Loss) from Continuing Operations before Tax
Tax Expenses:
Current Tax
Deferred Tax Charges / (Credit) (net)
Income Tax for earlier years (net)
Profit / (Loss) from Continuing Operations after Tax
Discontinued Operations:
Net (Loss) / Profit after tax from Discontinued Operations
Profit /(Loss) for the year before Share of net profit of Associates and Joint Venture
Share of Nnet Profit /(Loss) of Associates and Joint Ventures accounted for using the equity method
Profit / (Loss) for the year
Non Controlling Interest Profit
Net Profit / (Loss) for the year attributable to the owners of the Parent Company
Other Comprehensive Income (OCI):
Items that will not be reclassified to Profit and Loss
Remeasurements of net defined benefit plans : (Loss)
Net movement in Regulatory Deferral Account balances related to OCI
Income Tax relating to the above
Other Comprehensive Income – Discontinued Operations( Net of Tax)
Items that will be reclassified to Profit and Loss
Foreign currency translation Gain
Gains from investments in equity instruments designated at fair value through OCI
Other Comprehensive Income, net of taxes (including share of associates `12.77 Crore (` 45.08 Crore)
Total Comprehensive Income
(Loss) / Profit attributable to :
(a) Owners of the Parent Company
(b) Non Controlling Interest
Other Comprehensive Income attributable to :
(a) Owners of the Parent Company
(b) Non Controlling Interest
Total Comprehensive Income attributable to :
(a) Owners of the Parent Company
(b) Non Controlling Interest
14
15
26
16
17
35(e)
3,4,5
18
30
13(a)
8
36
9
13(a)
Notes
Year ended
March 31, 2020
Year ended
March 31, 2019
` Crore
18,869.97
2,243.77
141.41
2,102.36
20,972.33
11,985.80
34.48
1,140.98
1,047.01
2,396.11
1,967.10
1,386.57
1,473.94
21,431.99
(459.66)
(126.00)
-
(126.00)
(585.66)
1,403.52
817.86
108.62
(159.14)
(0.36)
(50.88)
868.74
(3.16)
865.58
42.85
908.43
137.26
771.17
(10.83)
16.16
(0.84)
-
11.54
-
16.03
924.46
771.17
137.26
908.43
15.48
0.55
16.03
786.65
137.81
924.46
`
29.44
(0.12)
29.32
34.70
(24.04)
19,174.34
2,913.64
192.24
2,721.40
21,895.74
11,381.87
30.72
925.08
1,093.69
2,581.06
1,890.79
1,291.84
1,669.59
20,864.64
1,031.10
(12,681.08)
6,616.02
(6,065.06)
(5,033.96)
(98.59)
(5,132.55)
72.87
(36.90)
(274.11)
(238.14)
(4,894.41)
3,954.61
(939.80)
(1,382.84)
(2,322.64)
104.18
(2,426.82)
(7.06)
18.01
(4.99)
2.69
44.86
0.06
53.57
(2,269.07)
( 2,426.82)
104.18
(2,322.64)
53.09
0.48
53.57
(2,373.73)
104.66
(2,269.07)
`
(242.65)
150.37
(92.28)
(349.34)
(88.53)
Earnings Per Equity Share (face value of ` 10 each)
Earnings Per Equity Share (for Continuing Operations) : Basic & Diluted
Earnings Per Equity Share (for Discontinued Operations) : Basic & Diluted
Earnings Per Equity Share (for Continuing and Discontinued Operations) : Basic & Diluted
Earnings Per Equity Share (before effect of withdrawal from scheme) : Basic & Diluted
Earnings Per Equity Share (before Rate Regulatory Activities) : Basic & Diluted
The accompanying notes form an integral part of the Consolidated Financial Statements (1 – 42).
19
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Date : May 08, 2020
Place : Mumbai
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Chairman
Vice Chairman
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
145
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147
Reliance Infrastructure Limited
Consolidated Statement of Cash Flows for the year ended March 31, 2020
Particulars
CASH FLOW FROM OPERATING ACTIVITIES:
Profit / (Loss) before tax from continuing operations
Adjustments for:
Depreciation and amortisation expenses
Net (Income) / Expenses relating to Investment Property
Interest Income
Fair value gain on Financial Instruments through FVTPL / Amortised Cost
Dividend Income
Loss / (Gain) on sale / redemption of investments (net)
Interest and Finance Costs
Late Payment Surcharge
Mark to Market (Gain) / Loss on derivative financial instruments
Provision for doubtful debts / advances / deposits
Provision for ECL
Amortisation of Consumer Contribution
Provision for Retirement of Inventory and Property, Plant and Equipments
Excess Provisions Written Back
Loss on Sale / Discarding of Assets
Provision for / (write back of) diminution in value of investments – Exceptional Items
Bad Debts
Provision for/(Reversal) of Impairment of Assets
Net foreign exchange / derivative (gain)/loss
Provision for major maintenance and overhaul expenses
Cash Generated from Operations before working capital changes
Adjustments for:
(Increase) / Decrease in Financial Assets and Other Assets
(Increase) / Decrease in Inventories
Increase / (Decrease) in Financial Liabilities and Other Liabilities
Cash generated from/(used in) operations
Income Taxes paid (net of refunds)
Net cash generated from/(used in) operating activities - Continuing Operations
Net cash generated from/(used in) operating activities - Discontinued Operations
Net cash generated from/(used in) operating activities - Continuing and Discontinued
Operations [A]
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of intangible assets (including intangible assets under development)
Purchase of Property, Plant and Equipment (including capital work in progress, capital
advance and capital creditors)
Purchase of Investment Property
Proceeds From Disposal of Property, Plant and Equipment
Net Income / (Expenses) relating to Investment Property
Investment / (Redemption) in fixed deposits
Investment in Associates (net)
Investment in others
Sale of Investment in Subsidiaries
Sale / Redemption of Investment in others
Inter Corporate Deposits given (net)
Dividend received
Interest Income
Net cash generated from /(used in) investing activities - Continuing Operations
Net cash generated from /(used in) investing activities - Discontinued Operations
Net cash generated from /(used in) investing activities - Continuing and Discontinued
Operations [B]
148
Year ended
March 31, 2019
Year ended
March 31, 2018
` Crore
817.86
(5,132.55)
1,386.57
(41.76)
(1,042.94)
(173.14)
(0.12)
36.69
2,392.09
1,967.10
4.02
12.03
-
(57.52)
131.54
(123.63)
25.19
-
8.82
-
10.92
17.38
5,371.10
(886.48)
(4.46)
(1,756.48)
2,723.68
148.40
2,872.08
2.74
2,874.82
(294.10)
(1,028.69)
-
14.73
31.20
(481.92)
183.30
-
-
64.85
350.67
0.12
365.38
(794.46)
0.01
(794.45)
1,291.84
(31.60)
(1,395.38)
(217.46)
(0.96)
(18.65)
2,581.06
1,890.79
(3.80)
102.43
11.30
(54.86)
0.31
(386.11)
39.56
6,065.06
4.16
18.00
8.20
17.86
4,789.20
(712.38)
17.86
(4,506.20)
(411.52)
151.48
(260.04)
944.12
684.08
(518.72)
(930.41)
(3.79)
30.25
23.90
318.66
246.41
(156.31)
2,444.52
382.23
232.31
0.96
859.18
2,929.19
(170.01)
2,759.18
Reliance Infrastructure Limited Consolidated Statement of Cash Flows for the year ended March 31, 2020
Particulars
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Non Controlling Interest
Proceeds from long term borrowings
Repayment of long term borrowings
Proceeds / (Repayment) of Short Term Borrowings (Net)
Payment of Interest and Finance charges
Payment of Lease Liability
Dividends Paid To Shareholders Including Tax
Net cash generated from/ (used in) financing activities - Continuing Operations
Net cash generated from/(used in) financing activities - Discontinued Operations
Net cash generated from/ (used in) financing activities - Continuing and
Discontinued Operations [C]
Net Increase/(Decrease) in cash and cash equivalents - [A+B+C]
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents at the end of the year *
Cash and Cash Equivalents – Continuing Operations (For Component Refer Note 7 (e))
Cash and Cash Equivalents – Discontinued Operations
Year ended
March 31, 2019
Year ended
March 31, 2018
` Crore
13.51
576.58
(652.80)
(262.54)
(1,620.98)
(13.14)
(19.65)
(1,979.02)
-
(1,979.02)
101.35
634.95
736.30
732.39
3.91
736.30
22.92
3,843.82
(2,174.24)
203.99
(2,644.86)
-
(279.66)
(1,028.03)
(2,306.05)
(3,334.08)
109.18
525.77
634.95
634.95
-
634.95
Note: Figures in brackets indicate cash outflows.
*Including balance in unpaid dividend account ` 14.18 Crore (` 16.05 Crore) and balance in current account with banks of ` 98.77
Crore (` 212.41 Crore) lying in escrow account with bank held as a Security against the borrowings and fixed deposits of ` 443.88
Crore (` 62.95 Crore) held as security with banks / authorities. Refer below the disclosure pursuant to para 44 A to 44 E of Ind AS
7- Statement of Cash flows.
Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable to those for
the current year.
The above statement of cash flows should be read in conjunction with the accompanying notes (1 – 42).
149
Reliance Infrastructure Limited Disclosure pursuant to para 44 A to 44 E of IndAS 7 - Consolidated Statement of cash flows
Particulars
Long Term Borrowings
Opening Balance (Including Current Maturities)
Availed during the year
Impact of non-cash items
- Impact of Effective Rate of Interest
- Foreign Exchange Movement
- Others
- Transferred to Discontinued Operations
Repaid During the year
Closing Balance
Short Term Borrowings
Opening Balance
Availed during the year
Impact of non-cash items
- Other
- Transferred to Discontinued Operations
Repaid during the year
Closing Balance
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
` Crore
Year ended
March 31,2020
Year ended
March 31,2019
14,919.06
25,996.78
576.58
3,843.82
41.46
70.52
172.72
(603.40)
(652.80)
14,524.14
31.01
52.26
(1,782.86)
(9,496.07)
(3,725.88)
14,919.06
2,852.51
-
3,613.77
433.42
(49.99)
1,808.28
-
(2,773.53)
(261.15)
2,541.37
(229.43)
2,852.51
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Chairman
Vice Chairman
Directors
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
Date : May 08, 2020
Place : Mumbai
150
Reliance Infrastructure Limited Corporate Information:
Reliance Infrastructure Limited (RInfra) is one of the largest infrastructure companies, developing projects through various Special
Purpose Vehicles (SPVs) in several high growth sectors within the infrastructure space such as Power, Roads, Metro Rail and Defence.
RInfra is also a leading utility having presence across the value chain of power business i.e. Generation, Transmission, Distribution and
Power Trading. RInfra also provides Engineering and Construction (E&C) services for various infrastructure projects. Information on the
Group’s structure is provided in Note No.39. Information on other related party relationships of the Group is provided in Note No. 24.
The Consolidated Financial Statements comprise financial statements of Reliance Infrastructure Limited (‘RInfra’ or the ‘Parent Company’)
and its Subsidiaries, Associates, Joint Ventures and controlled trust (collectively, the Group) for the year ended March 31, 2020. These
Consolidated Financial Statements of RInfra for the year ended March 31, 2020 were authorised for issue by the Board of Directors
on May 8, 2020. Pursuant to the provisions of section 130 of the Act, the Central Government, Income tax authorities, Securities and
Exchange Board of India, other statutory regulatory body and under section 131 of the Act, the Board of Directors of the Company
have powers to amend / re-open the financial statements approved by the board / adopted by the members of the Company.
RInfra is a Public Limited Company which is listed on two recognised stock exchanges in India .The Rinfra’s Global Depository Receipts,
representing Equity Shares, is also listed on London Stock Exchange. RInfra is incorporated and domiciled in India under the provisions
of the Companies Act, 1913. During the year, RInfra has changed its registered office vide a circular resolution dated August 30, 2019
duly approved by board of directors from H block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai 400 710 to Reliance
Centre, Ground Floor, 19 Walchand Hirachand Marg, Ballard Estate, Mumbai 400001.
1.
Significant Accounting Policies:
This note provides a list of the significant accounting policies adopted in the preparation of these Consolidated Financial
Statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation, measurement and significant accounting policies:
(i)
Compliance with Indian Accounting Standards (Ind AS)
The Consolidated Financial Statements of the Group comply in all material aspects with Companies (Indian Accounting
Standards) Rules, 2015 (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with relevant
rules and other accounting principles. The policies set out below have been consistently applied during the years
presented.
(ii) Basis of Preparation
These Consolidated Financial Statements are presented in ‘Indian Rupees’, which is also the Group’s functional and
presentation currency and all amounts, are rounded to the nearest Crore with two decimals, unless otherwise stated.
The Consolidated Financial Statements have been prepared in accordance with the requirements of the information and
disclosures mandated by Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations.
(iii) Basis of Measurement
The Consolidated Financial Statements have been prepared on a historical cost convention on accrual basis, except for
the following:
•
•
•
certain financial assets and liabilities (including derivative instruments) that is measured at fair value;
defined benefit plans - plan assets measured at fair value; and
assets held for sale – measured at fair value less cost to sell or carrying value, whichever is lower.
(iv) Consolidated Financial Statements have been prepared on a going concern basis. (Refer Note 29).
(b) Principles of consolidation and equity accounting
(i)
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
The Group combines the financial statements of the parent and its subsidiaries line by line adding together like items
of assets, liabilities, income and expenses. Intercompany transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence
of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement
of Profit and Loss, consolidated statement of changes in equity and balance sheet respectively.
151
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(ii) Associates
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally
the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted
for using the equity method of accounting (see (iv) below), after initially being recognised at cost.
(iii)
Joint arrangements
Under Ind AS 111 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement. The Parent Company has both joint operations and joint ventures.
Joint operations
Parent Company recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its
share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the
Consolidated Financial Statements under the appropriate headings. Details of the joint operation are set out in Note No.
39(d).
Joint ventures
Interests in joint ventures are accounted for using the equity method (see (iv) below), after initially being recognised at
cost in the consolidated balance sheet.
(iv) Equity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the Group’s share of the post-acquisition profits or losses of the investee in profit and loss, and the Group’s
share of other comprehensive income of the investee in other comprehensive income. Dividends received or receivable
from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity,
including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent
of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence
of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The carrying amount of equity accounted investments are tested for impairment in accordance with the policy described
in Note No.3 below.
(v) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with
equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of
the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any consideration paid or received is recognised within equity.
When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control
or significant influence, any retained interest in the entity is remeasured to its fair value in accordance with IndAS 109
“Financial Instuments”. This fair value becomes the initial carrying amount for the purposes of subsequently accounting
for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised
in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of
the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are
reclassified to Consolidated Statement of Profit and Loss. . When, the Company ceases to be a subsidiary, associate
or Joint-Venture of the Group, the said investment is carried at fair value in accordance with Ind AS 109 “Financial
Instruments”.
If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained,
only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit
or loss where appropriate.
(vi) The excess of cost to the Parent Company of its investment in the subsidiary / joint venture over the Parent Company’s
portion of equity of the subsidiary / joint venture is recognised in the Consolidated Financial Statements as Goodwill.
This Goodwill is tested for impairment at the end of the financial year. The excess of Parent Company’s portion of equity
over the cost of investment as at the date of its investment is treated as Capital Reserve.
(vii) The financial statements of the subsidiaries / joint ventures / associates used in consolidation are drawn upto the same
reporting date as that of the Parent Company.
(c) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker (CODM).
152
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
The board of directors of Parent Company has appointed the chief executive officer (‘CEO’) to assess the financial performance
and position of the Group, and making strategic decisions. The CEO has been identified as being the chief operating decision
maker for corporate planning. Refer Note 25 for segment information presented.
(d) Current versus non-current classification
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
Expected to be realised or intended to be sold or consumed in normal operating cycle
Expected to be realised within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
Held primarily for the purpose of trading
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in normal operating cycle
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
Held primarily for the purpose of trading
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities. Regulatory Assets / Liabilities are presented
as separate line item distinguished from assets and liabilities as per Ind AS 114 “Regulatory Deferral Accounts”.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The Group has identified twelve months as its operating cycle.
(e) Revenue recognition
The Group applies Ind AS 115 using cumulative catch-up transition method. The Group recognize revenue from contracts with
customers when it satisfies a performance obligation by transferring promised goods or service to a customer. The revenue is
recognised to the extent of transaction price allocated to the performance obligation satisfied.
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are, wherever
applicable, net of returns, trade allowances, rebates, taxes and amounts collected on behalf of third parties.
Further specific criteria for revenue recognition are followed for different businesses as under:
i.
Power Business:
Revenue from sale of power is accounted on the basis of billing to consumers based on billing cycles followed by the
Group which is inclusive of fuel adjustment charges (FAC) and unbilled revenue for the year. Generally all consumers
are billed on the basis of recording of consumption of electricity by installed meters. Where meters have stopped or are
faulty, the billing is done based on the past consumption for such period.
PKTCL, BRPL and BYPL determine revenue gaps (i.e. surplus / shortfall in actual returns over returns entitled) in respect
of their regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts” read with
the Guidance Note on Rate Regulated Activities issued by ICAI and based on the principles laid down under the relevant
tariff regulations / tariff orders notified by the respective state electricity regulators and the actual or expected actions
of the regulators under the applicable regulatory framework. Appropriate adjustments in respect of such revenue gaps
are made in the revenue of the respective years for the amounts which are reasonably determinable and no significant
uncertainty exists in such determination. These adjustments / accruals representing revenue gaps are carried forward as
Regulatory deferral accounts debit / credit balances (Regulatory assets / Regulatory liabilities) as the case may be in the
Consolidated Financial Statements and are classified Separately in the Consolidated Financial Statements, which would
be recovered / refunded through future billing based on future tariff determination by the regulators in accordance with
the respective electricity regulations.
In case of BKPL, revenue from sale of power is accounted for on the basis of billing to bulk customer as provided in the
Power Purchase Agreement (PPA).
In case of Transmission business not assessed as service concession arrangement, revenue is accounted on the basis of
periodic billing to consumers / state transmission utility. The surcharge on late/non-payment of dues by sundry debtors
for sale of energy is recognised as revenue on receipt basis. The Transmission system Incentive/disincentive is accounted
for based on the certification of availability by the respective regional power committee and in accordance with the
norms notified / approved by the CERC.
153
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
ii.
Engineering and Construction Business (E&C):
In case of Engineering and Contact Business performance obligations are satisfied over a period of time and contracts
revenue is recognised over a period of time by measuring progress towards complete satisfaction of the performance
obligation at the reporting date. The progress is measured based on the proportion of contract costs incurred for work
performed to date, to the estimated total contract costs attributable to the performance obligation, using the input
method.
Contract cost includes costs that relate directly to the specific contract and allocated costs that are attributable to the
performance obligation. Cost that cannot be attributed to the contract activity such as general administration costs are
expensed as incurred and classified as other operating expenses.
The Group account for a contract modification (change in the scope or price (or both)) when that is approved by the
parties to the contract. In case of modification of contracts a cumulative adjustment is accounted for if changes of
transaction price for existing obligation.
Contract assets are recognised when there is excess of revenue earned over billing on contracts. Contract assets are
classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and
only passage of time is required, as per contractual terms.
Unearned and deferred revenue (“contract liability”) is recognised when there is billing in excess of revenues.
The billing schedule agreed with customer include periodic performance based payments and/or milestone based
progress payments.
iii.
Infrastructure Business:
In respect of Toll Roads, toll revenue from operations of the facility is accounted on receipt basis.
In respect of Airports, revenue is recognised on accrual basis when services are rendered and is net of taxes.
In respect of Metro Rail Transit System, revenue from fare collection is recognized on the basis of use of tokens, money
value of actual usage in case of smart cards and other direct fare collection.
iv.
Service Concession Arrangements:
The Group manages concession arrangements which include the construction of roads, rails, transmission lines and
power plants followed by a period in which the Group maintains and services the infrastructure. This may also include, in
a secondary period, asset replacement or refurbishment. These concession arrangements set out rights and obligations
relative to the infrastructure and the service to be provided.
Under Appendix D to Ind AS 115 – “Service Concession Arrangements”, these arrangements are accounted for based
on the nature of the consideration. The financial model/intangible asset model are used when the Group has an
unconditional right to receive cash or another financial asset from or at the direction of the grantor for the construction
services.
For fulfilling those obligations, the Group is entitled to receive either cash from the grantor or a contractual right to
charge the users of the service. The consideration received or receivable is allocated by reference to the relative fair
values of the services provided; typically:
•
•
A construction component
A service element for operating and maintenance services performed
As given below, the right to consideration gives rises to an intangible asset, or financial asset:
•
•
Revenue from the concession arrangements earned under the financial asset model consists of the (i) fair value
of the amount due from the grantor; and (ii) interest income related to the capital investment in the project.
Income from the concession arrangements earned under the intangible asset model consists of the fair value of
contract revenue, which is deemed to be fair value of consideration transferred to acquire the asset and payments
actually received from the users.
v.
Others:
Insurance and other claims are recognised as revenue on certainty of receipt on prudent basis.
Income from advertisements, rentals and others is recognized in accordance with terms of the contracts with customers
based on the period for which the Group’s facilities have been used.
Amounts received from consumers as Service Line Contribution (SLC) towards Property, Plant and Equipment (PPE) are
accounted as Liability under Non-Current Liabilities. An amount equivalent to depreciation on such PPE is recognised as
income in the Consolidated Statement of Profit and Loss over the life of the assets.
154
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest
rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Group estimates the
expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses.
Dividends are recognised in Consolidated Statement of Profit and Loss only when the right to receive payment is
established.
(f)
Accounting of assets under Service Concession Arrangement:
The Group has Toll Road Concession rights/ Metro Rail / transmission lines and Power Plants Concession Right where
it Designs, Builts, Finances, Operates and Transfers (DBFOT) or Built Operates and Transfer (BOT) as the case may be,
infrastructure used to provide public service for a specified period of time. These arrangements may include Infrastructure used
in a public-to-private service concession arrangement for its entire useful life.
These arrangements are accounted for based on the nature of the consideration. The intangible asset model is used to the
extent that it receives a right (a license) to charge users of the public service. The financial asset model is used when it
has an unconditional contractual right to receive cash or another financial asset from or at the direction of the grantor for
the construction services. When the unconditional right to receive cash covers only part of the service, the two models are
combined to account separately for each component. If more than one service (i.e., construction or upgrade services and
operation services) is under a single contract or arrangement, consideration received or receivable is allocated by reference to
the relative fair values of the services delivered, when the amounts are separately identifiable.
(i)
Intangible assets model:
Intangible assets arising out of service concession arrangements are accounted for as intangible assets where it has
a contractual right to charge users of service when the projects are completed. Apart from above as per the service
concession agreement the Group is obligated to pay the amount of premium to National Highways Authority of India
(NHAI). This premium obligation has been treated as Intangible asset given it is paid towards getting the right to earn
revenue by constructing and operating the roads during the concession period.
Hence, the total premium payable to the Grantor as per the Service Concession Agreement is also recognized as an
‘Intangible Assets’ and the corresponding obligation for committed premium is recognized as premium obligation.
(ii)
Financial assets model
The financial asset model applies when the operator has an unconditional right to receive cash or another financial
asset from the grantor in remuneration for concession services. In the case of concession services, the operator has
such an unconditional right if the grantor contractually guarantees the payment of amount specified or determined in
the contract or the shortfall, if any, between amounts received from users of public service and amounts specified or
determined in the contract.
Any asset carried under concession arrangements is derecognized on disposal or when no future economic benefits are
expected from its future use or disposal or when the contractual rights to the financial asset expire.
g.
Foreign currency translation
i.
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the respective entities operates (‘the functional currency’). The Consolidated Financial
Statements are presented in Indian rupee (`), which is Group’s functional and presentation currency and all amounts,
are rounded to the nearest Crore with two decimals, unless otherwise stated.
ii.
Transactions and balances
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the
transaction. Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary
assets and liabilities at the reporting date exchange rates are recognised in the Consolidated Statement of Profit and
Loss except in case of certain long term foreign currency monetary items where the treatment is as under:
Non monetary items which are carried at historical cost denominated in foreign currency are reported using the exchange
rates at the dates of the transaction.
Foreign exchange gains and losses are presented in other expenses/income in the Consolidated Statement of Profit and
Loss on a net basis.
h.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the Group will comply with all attached conditions.
Government grants relating to income are deferred and recognised in the Consolidated Statement of Profit and Loss over the
period necessary to match them with the costs that they are intended to compensate and presented within other income.
155
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred
income and are credited to Consolidated Statement of Profit and Loss on a straight-line basis over the expected lives of the
related assets and presented within other income.
i.
Financial Instruments
The Group recognises financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. All
financial assets and liabilities are recognised at fair values on initial recognition, except for trade receivables which are initially
measured at transaction price.
(A)
Financial Assets:
1.
Classification
The Group classifies its financial assets in the following measurement categories:
•
those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss), and
•
those measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in Consolidated Statement of
Profit and Loss or other comprehensive income. For investments in debt instruments, this will depend on
the business model in which the investment is held. For investments in equity instruments, this will depend
on whether the Group has made an irrevocable election at the time of initial recognition to account for the
equity investment at fair value or through other comprehensive income.
The Group reclassifies debt investments when and only when its business model for managing those assets
changes.
2.
Initial Recognition and Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash
flows are solely payment of principal and interest.
Subsequent Measurement
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories into which the Group
classifies its debt instruments:
•
•
•
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship
is recognised in Consolidated Statement of Profit and Loss when the asset is derecognised or impaired.
Interest income from these financial assets is included in finance income using the effective interest rate
method.
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual
cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of
principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements
in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses,
interest revenue and foreign exchange gains and losses which are recognised in Consolidated Statement of
Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income
from these financial assets is included in other income using the effective interest rate method.
Fair value through profit or loss (FVTPL) : Assets that do not meet the criteria for amortised cost or FVOCI
are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is not part of a hedging relationship is recognised in
Consolidated Statement of Profit and Loss and presented net in the Consolidated Statement of Profit and
Loss. Interest income from these financial assets is included in other income.
156
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group has elected to present
fair value gains and losses on equity investments in other comprehensive income, there is no subsequent
reclassification of fair value gains and losses to the Consolidated Statement of Profit and Loss. Dividends from
such investments are recognised in Consolidated Statement of Profit and Loss as Other Income when the Group’s
right to receive payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognised in income/ (expenses)
in the Consolidated Statement of Profit and Loss.
3.
Impairment of financial assets
The Group assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. Note No.42 details how the Group determines whether there has been a
significant increase in credit risk.
For trade receivables, the Group (except BRPL/BYPL) measures the expected credit loss associated with its trade
receivables based on historical trend, industry practices and the business environment in which the entity operates
or any other appropriate basis. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.
For trade receivables in respect of BRPL/BYPL, the Group applies the simplified approach permitted by Ind AS
109 ‘Financial Instruments’, which requires expected lifetime losses to be recognised from initial recognition of
the receivables. The Group has used a practical expedient as permitted under Ind AS 109. This expected credit
loss allowance is computed based on a provision matrix which takes into account historical credit loss experience
and adjusted for forward-looking information.
4.
Derecognition of financial assets
A financial asset is derecognised only when:
i)
ii)
iii)
iv)
The right to receive cash flows from the financial assets have expired
The Group has transferred the rights to receive cash flows from the financial asset or retains the contractual
rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash
flows in full without material delay to third party under a “pass through arrangement”.
Where the entity has transferred an asset, the Group evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.
Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is derecognised if the Group has not retained control
of the financial asset. Where the Group retains control of the financial asset, the asset is continued to be
recognised to the extent of continuing involvement in the financial asset.
(B) Financial Liabilities
Initial Recognition and Measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts and derivative financial instruments.
Subsequent measurement
Financial liabilities at amortized cost: After initial measurement, such financial liabilities are subsequently measured at
amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance costs in the Consolidated Statement of Profit and Loss.
(a) Borrowings:
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the Consolidated Statement of Profit and Loss over the period of the borrowings using
the effective interest rate method.
(b) Trade and Other Payables:
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year
which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within
12 months after the reporting period. They are recognised initially at their fair value and subsequently measured
at amortised cost using the effective interest rate method.
157
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(c) Financial Guarantee Obligations:
The fair value of financial guarantees is determined as the present value of the difference in net cash flows
between the contractual payments under the debt instrument and the payments that would be required without
the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.
Where guarantees in relation to loans or other payables of subsidiaries, joint ventures or associates are provided
for no compensation, the fair values as on the date of transition are accounted for as contributions and recognised
as part of the cost of the equity investment.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and
the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Consolidated Statement of Profit and Loss.
j.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
•
•
In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the Consolidated Financial Statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable
Level 3 -Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the Consolidated Financial Statements on a recurring basis, the Group determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Group’s Management determines the policies and procedures for both recurring and non–recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value.
At each reporting date, the Management analyses the movements in the values of assets and liabilities which are required
to be remeasured or re-assessed as per the Group’s accounting policies. For this analysis, the Management verifies the major
inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant
documents.
The management also compares the change in the fair value of each asset and liability with relevant external sources to
determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Disclosures for valuation methods, significant estimates and assumptions of Financial instruments (including those carried at
amortised cost) (Refer Note 2) and Quantitative disclosures of fair value measurement hierarchy (Refer Note 41).
k.
(i) Derivatives
Derivatives (including forward contracts) are initially recognised at fair value on the date a derivative contract is entered
into and are subsequently re-measured to their fair value at the end of each reporting period. The Group does not
158
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
designate their derivatives as hedges and such contracts are accounted for at fair value through profit or loss and are
included in Consolidated Statement of Profit and Loss.
In respect of derivative transactions, gains / losses are recognised in the Consolidated Statement of Profit and Loss on
settlement. On a reporting date, open derivative contracts are revalued at fair values and resulting gains / losses are
recognised in the Consolidated Statement of Profit and Loss.
(ii)
Embedded derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host
contract – with the effect that some of the cash flows of the combined instrument vary in a way similar to a standalone
derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract
to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate,
index of prices or rates, credit rating or credit index, or other variable, provided in the case of a nonfinancial variable
that the variable is not specific to a party to the contract. Reassessment only occurs if there is either a change in the
terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of
a financial asset out of the fair value through profit or loss.
Derivatives embedded in a host contract that is an asset within the scope of Ind AS 109 “Financial Instruments” are not
separated. Financial assets with embedded derivatives are considered in their entirety when determining whether their
cash flows are solely payment of principal and interest.
Derivatives embedded in all other host contract are separated only if the economic characteristics and risks of the
embedded derivative are not closely related to the economic characteristics and risks of the host and are measured at
fair value through profit or loss. Embedded derivatives closely related to the host contracts are not separated.
l.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the
liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the
normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.
m.
Property, Plant and Equipment
Property, Plant and Equipment assets are carried at cost net of tax / duty credit availed less accumulated depreciation and
accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to Consolidated Statement of Profit and Loss during the reporting period in
which they are incurred.
Capital Work in Progress (CWIP) includes cost of property, plant and equipment under installation / under development, as at
balance sheet date.
All project related expenditure viz. civil works, machinery under erection, construction and erection materials, preoperative
expenditure incidental / attributable to the construction of projects, borrowing cost incurred prior to the date of commercial
operations and trial run expenditure are shown under CWIP. These expenses are net of recoveries and income (net of tax)
from surplus funds arising out of project specific borrowings.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Property, Plant and Equipment are eliminated from the Consolidated Financial Statements, either on disposal or when retired
from active use.
Gains and losses on disposals or retirement of assets are determined by comparing proceeds with carrying amount. These are
recognized in the Consolidated Statement of Profit and Loss.
Depreciation methods, estimated useful lives and residual value
Power Business:
Property, Plant and Equipment relating to license business (except Delhi discoms) and other power business (including amount
of fair valuation considered as deemed cost) are depreciated under the straight line method as per the rates and useful life
prescribed as per the Electricity Regulations as referred in Part “B” of Schedule II to the Act.
The individual asset once depreciated to seventy percent of cost, the remaining depreciable value spreads over the balance
useful life of the asset, as provided in the Electricity Regulations. The residual values of assets are not more than 10% of the
cost of the assets.
In case of Delhi Discoms, Property, Plant and Equipment relating to license business and other power business (including
amount of fair valuation considered as deemed cost) are depreciated under the straight line method as per the rates and useful
159
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
life prescribed as per the Electricity Regulations as referred in Part “B” of Schedule II to the Act or as per the independent
valuer’s certificate whichever is lower. Depreciation on refurbished/revamped assets which are capitalized separately is provided
for over the reassessed useful life. The useful life of the following assets are assessed by the independent valuer less than
referred in Part “B” of Schedule II to the Act.
Description of Assets
Energy Meters
Communication Equipments
Engineering and Construction Business:
Useful Life of Asset (In Years)
10
10
Property, Plant and Equipment are depreciated under the reducing balance method as per the useful life and in the manner
prescribed in Part “C” Schedule II to the Act.
Other Activities:
Property, Plant and Equipment of other activities have been depreciated under the straight line method as per the useful life
and in the manner prescribed in Part “C” Schedule II to the Act.
n.
Investment Property
Investment property comprise portion of office building that are held for long term yield and / or capital appreciation.
Investment property is initially recognised at cost. Subsequently investment property comprising of building is carried at cost
less accumulated depreciation and accumulated impairment losses.
The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria
are met. When significant parts of the investment property are required to be replaced at intervals, the Group depreciates them
separately based on their specific useful lives. All other repair and maintenance costs are recognized in Consolidated Statement
of Profit and Loss as incurred.
Depreciation on Investment Property is depreciated under the straight line method as per the rates and the useful life
prescribed in part “C” of Schedule II to the Act.
Though the Group measures investment property using cost based measurement, the fair value of investment property is
disclosed in the notes. Fair values are determined based on periodical basis performed by an accredited external independent
valuer applying a valuation model recommended by the International Valuation Standards Committee.
Investment properties are derecognised when either they have been disposed of or when the investment property is
permanently withdrawn from use and no economic benefit is expected from its disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the Consolidated
Statement of Profit and Loss.
o.
Intangible assets
Intangible assets are stated at cost of acquisition net of tax/duty credits availed, if any, less accumulated amortisation /
depletion/ impairment. Cost includes expenditure directly attributable to the acquisition of asset.
Amortisation Method:
(i)
(ii)
Softwares pertaining to the power business are amortized as per the rate and in the manner prescribed in the Electricity
Regulations. Other softwares are amortised over a period of 3 years.
Toll Collection Rights received up to March 31, 2016 are amortised over the concession period on the basis of projected
toll revenue which reflects the pattern in which the assets’ economic benefits are consumed. Toll Collection Rights
received after March 31, 2016 are amortised over the concession period on pro-rata basis on straight line method.
(iii)
In case of Airports, amounts in the nature of upfront fee and other costs paid to various regulatory authorities, are
amortised on a straight line method over the period of the license.
(iv) Metro Rail Concessionaire Rights are amortised over straight line basis over the operation of concession period.
Goodwill on Consolidation
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment
annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less
accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating
to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which
the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal
management purposes, which are the operating segments.
160
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
p.
Inventories
Inventories are stated at lower of cost and net realisable value. In case of fuel, stores and spares “cost” means weighted
average cost. Unserviceable / damaged stores and spares are identified and written down based on technical evaluation.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
q.
Allocation of Expenses
(i) Power Business:
The allocation to capital and revenue is done consistently on the basis of a technical evaluation.
(ii) Engineering and Construction Business:
Common overheads are absorbed by various jobs in proportion to the prime cost of each job.
r.
Employee benefits
i.
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are presented as Short term employee benefit obligations in the balance sheet.
ii.
Post-employment obligations
The Group operates the following post-employment schemes:
(a)
(b)
defined benefit plans such as gratuity, and
defined contribution plans such as provident fund, superannuation fund etc.
Define Benefit Plans:
(a) Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The present
value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have terms
approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expense in the Consolidated Statement of Profit and Loss. Remeasurement gains and losses
arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which
they occur, directly in other comprehensive income. They are included in retained earnings in the statement
of changes in equity and in the balance sheet. Changes in the present value of the defined benefit obligation
resulting from plan amendments or curtailments are recognised immediately in Consolidated Statement of Profit
and Loss as past service cost. The Group contributes to a trust set up by the Group which further contributes to
policies taken from Insurance Regulatory and Development Authority (IRDA) approved insurance companies.
(b) Provident Fund
The benefit involving employee established provident funds, which require interest shortfall to be recompensated
are to be considered as defined benefit plans. As per the Audited Accounts of Provident Fund Trust maintained by
the Group, the shortfall arising in meeting the stipulated interest liability, if any, gets duly provided for.
Defined Contribution Plans
The Group pays provident fund contributions to publicly administered provident funds as per local regulations. The
Group has no further payment obligations once the contributions have been paid. The contributions are accounted for
as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.
Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is
available. Superannuation plan, a defined contribution scheme is administered by IRDA approved Insurance Companies.
The Group makes annual contributions based on a specified percentage of each eligible employee’s salary.
(iii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service. They are therefore measured as the present value of
expected future payments to be made in respect of services provided by employees up to the end of the reporting
period using the projected unit credit method. The benefits are discounted using the market yields at the end of the
reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of
161
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
experience adjustments and changes in actuarial assumptions are recognised in the Consolidated Statement of Profit and
Loss. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement
is expected to occur.
In case of employees of erstwhile Delhi Vidyut Board (DVB) (presently employees of BRPL and BYPL) in accordance
with the stipulation made by the Government of National Capital Territory of Delhi (GoNCTD), in its notification dated
January 16, 2001 the contributions on account of the general provident fund, pension, gratuity and earned leave as per
the Financial Rules and Service Rules applicable in respect of the employees of the erstwhile DVB, is accounted for on
due basis and are paid to the Delhi Vidyut Board – Employees Terminal Benefit Fund 2002 (DVB ETBF 2002). Further
the retirement benefits are guaranteed by GoNCTD. All such payments made to the DVB ETBF 2002 are charged off to
the Consolidated Statement of Profit and Loss.
s.
Treasury Share
The Parent Company has created a Reliance Infrastructure ESOS Trust (ESOS Trust) for providing share-based payment to
its employees. The parent Company uses ESOS Trust as a vehicle for distributing shares to employees under the employee
remuneration schemes. The ESOS Trust buys shares of the Parent company from the market, for giving shares to employees.
The Parent Company treats ESOS Trust as its extension and shares held by ESOS Trust are treated as treasury shares.
Reliance Infrastructure ESOS Trust has in substance acted as an agent and the Parent Company as a sponsor retains the
majority of the risks rewards relating to funding arrangement. Accordingly, the Parent Company has recognised issue of shares
to the Trust as the issue of treasury shares and deducted the total cost of such shares from a separate category of equity
(Treasure Shares) by consolidating Trust into financial statements of the Parent Company.
t.
Borrowing Cost
Borrowing cost includes interest, amortisation of ancillary cost incurred in connection with the arrangement of borrowings and
the exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the
interest cost. General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use
or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalization.
Other borrowing costs are expensed in the period in which they are incurred.
u.
Income Tax
Income tax expense for the year comprises of current tax and deferred tax. Income tax is recognised in the Consolidated
Statement of Profit and Loss except to the extent that it relates to items recognised in ‘Other comprehensive income’ or
directly in equity, in which case the tax is recognised in ‘Other comprehensive income’ or directly in equity, respectively.
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of
the reporting period in the country where the Parent Company and its subsidiaries generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate, on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities are not
recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and
associates and interest in joint arrangements where the Group is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
162
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
v.
Provisions
Provisions for legal claims/ disputed matters, major maintenance/overhaul expenses and other matters are recognised when
the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to
any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as finance cost.
w.
Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not
recognized because it is probable that an outflow of resources will not be required to settle the obligation. However, if the
possibility of outflow of resources, arising out of present obligation, is remote, it is not even disclosed as contingent liability.
A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The Group does not recognize a contingent liability but discloses its existence in the notes to Consolidated
Financial Statements. A Contingent asset is not recognized in Consolidated Financial Statements, however, the same is
disclosed where an inflow of economic benefit is probable.
x.
Impairment of non-financial assets
Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non-financial asset
may be impaired. Indefinite-life intangibles are subject to a review for impairment annually or more frequently if events or
circumstances indicate that it is necessary. For the purpose of assessing impairment, the smallest identifiable Group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or Groups
of assets is considered as a cash generating unit. Goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units that are expected to benefit from the synergies of the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units. If any indication of impairment
exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. Asset/cash generating
unit whose carrying value exceeds their recoverable amount are written down to the recoverable amount by recognising the
impairment loss as an expense in the Consolidated Statement of Profit and Loss.
The impairment loss is allocated first to reduce the carrying amount of any goodwill (if any) allocated to the cash generating
unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Recoverable
amount is higher of an asset’s or cash generating unit’s fair value less cost of disposal and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit
and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is
any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have
decreased. An impairment loss recognised for goodwill is not reversed in subsequent periods.
y.
Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits with
banks, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
z.
Cash flow Statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-
cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Group are segregated based on the available information.
aa. Oil and Gas Activity
Oil and natural gas exploration and evaluation expenditures are accounted for using the ‘successful efforts’ method of
accounting. Costs are accumulated on a field-by-field basis. Geological and geophysical costs are expensed as incurred. Costs
directly associated with an exploration well, and exploration and property leasehold acquisition costs, are capitalised until the
determination of reserves is evaluated. If it is determined that commercial discovery has not been achieved, these costs are
charged to expense.
163
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
bb. Contributed Equity:
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
cc. Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
dd. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.
Both Basic earnings per share and Diluted earnings per share have been calculated with and without considering income from
Rate Regulated activities and Discontinued Operations and also before withdrawal of general reserve from the Net Profit
attributable to Equity Shareholders.
ee.
Leases
The Group has adopted the new accounting standard Ind AS 116 “Leases” on April 1, 2019 as per Companies (Indian
Accounting Standards) amendment Rules, 2019, notified by MCA on March 30, 2019. Ind AS 116 is a single lessee accounting
model and sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and
lessors.
Transition to Ind AS 116
The Group has adopted Ind AS 116, effective annual reporting period beginning on April 1, 2019 and applied the standard
to its leases, retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial
application without making any adjustment to opening balance of retained earnings. The adoption of the standard did not have
any material impact on the Consolidated Financial Statement of the Group.
On application of IndAS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for
the right-of-use assets(ROU), and finance cost for interest accrued on lease liability.
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly
specified in an arrangement.
As a lessee:
Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership
are classified as finance leases. In case of finance lease, at the commencement date of the lease the Group recognizes a lease
liability measured at the present value of the lease payments that are not paid at that date. The lease payments included in
the measurement of the lease liability consist of the payments for the right of use the underlying assets during the lease term
that are not paid at the commencement date of the lease.
The lease payments are discounted using the interest rate implicit in the lease, if that rate is readily determined, if that rate is
not readily determined, the lease payments are discounted using the incremental borrowing rate.
The Group recognizes a right-of-use asset from a lease contract at the commencement date of the lease, which is the date
that the underlying asset is made available for use.
The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any initial direct
costs incurred and any lease payments made at or before the commencement date of the lease less any lease incentives
received. Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated
impairment losses, if any and adjusted for any re measurement of the lease liability. The right-of-use assets is depreciated
using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use
asset.
Leases which are of short term lease with the term of twelve months or less and low value in which significant portion of the
risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases. Payments made
under operating leases (net of any incentives received from the lessor) are charged to Consolidated Statement of Profit and
Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected
general inflation to compensate for the lessor’s expected inflationary cost increases.
164
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
As a lessor:
Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease
unless the receipts are structured to increase in line with expected general inflation to compensate for the lessor’s expected
inflationary cost increases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Group to
the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Group’s net investment in the
leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.
ff. Non-current assets (or disposal groups) held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising
from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from
this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less
costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but
not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of
the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified
as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue
to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented
separately from other liabilities in the balance sheet.
A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose
of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately in the Consolidated Statement of Profit and Loss.
gg. Maintenance obligations
Contractual obligations to maintain, replace or restore the infrastructure (principally resurfacing costs and major repairs and
unscheduled maintenance which are required to maintain the Infrastructure asset in operational condition except for any
enhancement element) are recognized and measured at the best estimate of the expenditure required to settle the present
obligation at the balance sheet date for which next resurfacing would be required as per the concession arrangement . The
provision is discounted to its present value at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability.
hh. Self insurance reserve
In case of PKTCL, Self Insurance reserve is created @ 0.1% p.a. on Gross Block of Property, Plant and Equipment (except
assets covered under any other insurance policy) as at the end of the year, subject to maximum of `5.50 Crore, by appropriating
current year profit towards future losses which may arise from un-insured risks. The same is shown as “Self Insurance Reserve”
under ‘Reserves and Surplus’.
ii.
Rounding off of amounts
All amounts disclosed in the Consolidated Financial Statements and notes have been rounded off to the nearest Crore with
two decimals as per the requirement of Schedule III, unless otherwise stated.
2.
Critical estimates and judgements
The presentation of financial statements under Ind AS requires management to take decisions and make estimates and
assumptions that may impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the
items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and judgments are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to
be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year
are discussed below:
165
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
•
Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID 19)
The Group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying
amounts of receivables, investments, goodwill, tangible assets, contract assets and contract cost. In developing the
assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic,
the Group, as at the date of approval of these financial statements has used internal and external sources of information
on the expected future performance of the Group. The Group has performed sensitivity analysis on the assumptions
used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of
COVID-19 on the Group financial statements may differ from that estimated as at the date of approval of these
financial statements.
•
Estimation of deferred tax assets recoverable
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the same can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.
The Group has ` 251.43 Crore (` 333.25 Crore) of MAT credit entitlement assets. According to management’s
estimate, these balances will expire and may not be used to offset taxable income. The Company neither has any
taxable temporary difference nor any tax planning opportunities available that could partly support the recognition of
these MAT credit entitlement as deferred tax assets. On this basis, the Company has determined that it cannot recognise
deferred tax assets on these balances.
Similarly, the Group has unused capital gain tax losses of ` 149.43 Crore (` 341.77 Crore), which according to the
management will expire and may not be used to offset taxable gain, if any, incurred by the Group. Refer Note 13 for
amounts of such temporary differences on which deferred tax assets are not recognised.
•
Estimated fair value of unlisted securities
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques.
The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market
conditions existing at the end of each reporting period.
Refer Note 41 on fair value measurements where the assumptions and methods to perform the same are stated.
•
Estimation of defined benefit obligation
The cost of the defined benefit gratuity plan and other post-employment employee benefits and the present value
of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the discount
rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available Indian Assured Lives Mortality (2006-08) Ultimate. Those mortality
tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases
are based on expected future inflation.
Refer Note 34 for key actuarial assumptions.
•
Impairment of trade receivables, loans and other financial assets
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and
expected loss rates. The Group uses judgment in making these assumptions and selecting the inputs to the impairment
calculation, based on the Group’s past history, existing market conditions as well as forward looking estimates at the
end of each reporting period.
Refer Note 41 on financial risk management where credit risk and related impairment disclosures are made.
•
Revenue recognition
The Group uses the ‘percentage-of-completion method’ for its E&C business to determine the appropriate amount to
recognise in a given period. The stage of completion is measured by reference to the contract costs incurred up to the
end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred in the year in
connection with future activity on a contract are excluded from contract costs in determining the stage of completion.
Determination of future costs is judgmental and is revised periodically considering changes in internal/external factors.
166
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
•
Regulatory deferral assets and liabilities
Delhi Discoms (BRPL/BYPL):
From April 01, 2012 till March 31, 2015 (MYT period), determination of Retail Supply Tariff (RST) chargeable by the
Delhi Discoms to its consumers is governed by DERC (Terms and Conditions for Determination of Wheeling Tariff and
Retail Supply Tariff) Regulations 2011 (MYT Regulations, 2011), whereby DERC shall determine the RST in a manner
that the Company recovers its power purchase costs as well as other prudently incurred expenses and earns assured
return of 16% p.a. on DERC approved equity subject to achievement of Aggregate Technical and Commercial (AT&C)
loss reduction targets. The truing up process during the MYT period is being conducted as per the principle stated in
Section 4.21 of the MYT Regulations, 2011. The earlier MYT Regulations dated May 30, 2007 were applicable for the
extended period upto March 31, 2012.
During the truing up process, revenue gaps (i.e. shortfall in actual returns over assured returns) are determined by the
regulator and are permitted to be carried forward as regulatory assets/ regulatory liabilities which would be recovered
/refunded through future billing based on future tariff determination by the regulator. At the end of each accounting
period. Delhi Discoms determines revenue gap based on the principles laid down under the MYT Regulations and Tariff
Orders issued by DERC (except for the current Tariff Order referred in Note No. 9). In respect of such revenue gaps,
appropriate adjustments, have been made for the respective years in term of the Guidance Note on Rate Regulated
Activities issued by ICAI on a conservative basis.
Refer Note 9 for tariff orders received during the reporting periods that allowed the Companies to recover regulatory
gap determined by the regulator.
•
Consolidation decisions and classification of joint arrangements
The management has concluded that the Group controls certain entities where it holds less than half of the voting
rights of its subsidiaries as per the guidance of Ind AS 110. This is because the Group directs the relevant activities
(procurement, production and marketing) and has the ability to use the powers to unilaterally control the returns it
derives from these entities.
Refer Note 39 for disclosure of ownership interests in subsidiaries controlled by the Group.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable
under the circumstances.
•
Useful life of Property, Plant and Equipment:
The estimated useful life of Property, Plant and Equipment is based on a number of factors including the effects
of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known
technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.
The Group reviews, periodically, the useful life of Property, Plant and Equipment and changes, if any, are adjusted
prospectively.
•
Provision for Resurfacing and Future Cost of Replacement / Overhaul obligation (major maintenance expenditures):
Resurfacing obligation (major maintenance expenditure) (for Toll Roads)
The Group records the resurfacing obligation for its present obligation as per the concession arrangement to maintain
the toll roads at every five years during the concession period. The provision is included in the financial statements at
the present value of the expected future payments. The calculations to discount these amounts to their present value
are based on the estimated timing of expenditure occurring on the roads.
The discount rate used to value the resurfacing provision at its present value is determined through reference to the
nature of provision and risk associated with the expenditure.
Future cost of replacement / overhaul of assets (for Metros):
The Group is required to operate and maintain the project assets in a serviceable condition which requires periodical
replacement and overhaul of certain component of project assets. The Group has accordingly recognized a provision in
respect of this obligation. The measurement of this provision considers the future cost of replacement / overhaul of
assets and the timing of replacement/ overhaul. These amounts are being discounted to present value since time value
of money is material.
167
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Note 3: Property, Plant and Equipment (PPE)
Particulars
Freehold
Land
Leasehold
Land
Buildings
Plant and
Machinery
Distribution
Systems
Railway
Siding
Furniture
and
Fixtures
Vehicles
Office
Equipment
Computers
Electrical
Installations
Total
` Crore
Capital
work in
progress
Gross carrying amount
As at April 1, 2018
Additions
Disposals
Gross carrying amount as
on March 31, 2019
Accumulated depreciation
and impairment
As at April 1, 2018
Depreciation charge during
the year
Impairment loss / (reversal)
Disposals
Accumulated depreciation
and impairment
as on March 31, 2019
Net carrying amount as on
March 31, 2019
Less: Provision for
Retirement
Net carrying amount after
provision
as at March 31, 2019
Gross carrying amount
As at April 1, 2019
Additions
Disposals
Gross carrying amount as
on March 31, 2020
Accumulated depreciation
and impairment
As at April 1, 2019
Depreciation charge during
the year
Impairment loss / (reversal)
Disposals
Accumulated depreciation
and impairment as on
March 31, 2020
Net carrying amount as on
March 31, 2020
Less: Provision for
Retirement
Net carrying amount after
provision
as at March 31, 2020
Notes:
2,686.63
12.86
2,364.84
334.65
122.12 2,147.38 13,381.83
23.33
477.08
17.94
60.81 1,452.49 8,185.89
712.83 5,673.02
84.64
9,350.01
427.60
4,990.41
4,787.20
8.20
-
8.20
-
57.75
2.98
20.82
39.91
41.37
4.78
20.39
25.76
110.62
18.51
16.52
112.61
110.59
14.59
43.06
82.12
28,043.12 1,359.50
26.62
0.32
810.43
999.99
21.62 17,185.05 1,042.57
11,858.06 1,127.36
5.32
-
-
-
-
-
6.35
2.06
268.27
24.61
2,507.74
384.75
1,253.89
269.12
2.12
-
12.83
4.32
10.66
2.37
-
3.87
4.54
-
201.59
91.29
18.00
1,476.76
1,433.73
-
687.99
835.02
-
2.12
-
-
4.50
12.65
-
4.64
8.39
23.84
8.79
-
4.07
28.56
46.46
12.31
-
17.72
41.05
6.74
0.53
4,138.90
708.86
-
4.68
2.59
18.00
2,407.94
2,457.82
334.65
80.10
621.54
4,239.29
3,952.18
-
27.26
17.37
84.05
41.07
2.73
9,400.24 1,127.36
34.51
12.09
9,365.73 1,115.27
334.65
-
-
334.65
84.64
97.40
712.83 5,673.02
447.29
30.06
-
182.04
8.24
734.64
86.38
6,033.93
4,787.20
391.39
-
5,178.59
-
-
-
-
-
4.54
3.38
91.29
23.45
1,433.73
398.11
835.02
286.03
-
-
7.92
-
1.80
112.94
126.00
32.34
1,925.50
-
-
1,121.05
-
-
-
-
-
-
-
-
-
39.91
10.70
0.01
50.60
25.76
2.83
0.33
28.26
112.61
10.36
1.04
121.93
82.12
15.66
1.72
96.06
5.32
8.85
11,858.06 1,127.36
857.95
1,014.54
-
14.17
97.72
851.52
12,774.88 1,133.79
12.65
2.82
8.39
2.47
-
0.01
15.46
-
0.15
10.71
28.56
11.63
-
0.53
39.66
41.05
10.93
-
1.51
50.47
2.59
0.63
2,457.82
739.45
-
-
3.22
126.00
36.34
3,286.93
334.65
174.12
621.70
4,108.43
4,057.54
-
35.14
17.55
82.27
45.59
10.95
9,487.95 1,133.79
34.90
12.09
9,453.05 1,121.70
Capital Work in Progress includes borrowing cost of `11.55 Crore (` 9.82 Crore) and Foreign exchange fluctuation loss of
` 0.25 Crore (` 1.24 Crore).
Additions to Building, Plant and Machinery and Other tangible assets includes borrowing cost of ` 0.61 Crore (` 0.36 Crore),
`19.83 Crore (` 25.81 Crore) and ` 0.54 Crore (` 0.95 Crore) respectively. Borrowing cost is capitalized @12.08% to
12.25%.
Pursuant to certain events of default by Delhi Metro Rail Corporation (DMRC), Delhi Airport Metro Express Private Limited
(DAMEPL) has terminated the concession agreement with effect from July 1, 2013 and entire assets (including project assets)
have been handed over to DMRC and DAMEPL ceases to provide depreciation / amortisation. However, due to pending
settlement of cases through arbitration, acceptance of termination by DMRC and based on legal opinion, the assets including
project assets, have been continued to be shown in the books of account of DAMEPL.
a.
b.
c.
168
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020 d.
Lease Hold Land
The lease period for lease hold land varies from 35 Years to 99 years.
The Plant and Building of BKPL have been erected on 20 acre parcel of land taken on lease from Lessor (TCCL) by virtue of
an agreement dated November 06, 2014.
The Lease period for lease hold land of Reliance Aerostructure Limited is 99 years with option for renewal and is considered
as finance lease.
In case of BRPL, BRYPL, under the provisions of Delhi Electricity Reforms (Transfer Scheme 2001) Rules, vide Delhi Gazette
Notification dated November 20, 2001, the successor utility companies are entitled to use certain lands as a license of the
Government of Delhi, on “Right to Use” basis on payment of consolidated amount of ` 1/- per month.
e.
Property, Plant and Equipment pledged as security
Property, Plant and Equipment of the Group are provided as security against the secured borrowings of the Group as detailed
in note no. 11 (a) and 11 (b).
f.
Impairment Loss
The Impairment loss relates to PPE of BSES Kerala Power Limited, (BKPL) a wholly owned subsidiary of the Parent Company
which has been impaired to the extent of ` 126 Crore in terms of IndAS 36 on Impairment of Assets. Accordingly the provision
for impairment has been made and considered as an exceptional item in consolidated statement of profit and loss.
Capital work-in-progress
g.
Particulars
Year
Opening
Addition
Capitalisation
Discontinued
Operations
` Crore
Closing*
CWIP Movement
CWIP Movement
2019-20
2018-19
1,115.27
1,347.41
857.95
810.43
851.52
853.10
-
189.47
1,121.70
1,115.27
*(net off of Provision for Non moving Capital Inventories of ` 4.52 Crore (` 9.02 Crore) and Provision for retirement of assets
of ` 12.09 Crore (` 12.09 Crore). Includes personnel cost of `43.16 Crore (` 35.01 Crore).
CWIP pledged to lenders Refer Note 11 (a) and 11 (b).
h. Movement in Provision for Retirement of PPE/CWIP
Year
2019-20
2018-19
4.
Investment Property
Particulars
Gross carrying amount
Opening Gross Carrying value
Additions
Closing gross carrying value
Accumulated depreciation:
Opening accumulated depreciation
Depreciation during the year
Closing accumulated depreciation
Net carrying value
Opening
Provision
made
Provision
reversed
46.59
47.41
0.40
-
-
0.82
` Crore
Closing
46.99
46.59
` Crore
As at
March 31, 2020
As at
March 31, 2019
599.84
-
599.84
97.43
19.75
117.18
482.66
596.05
3.79
599.84
67.35
30.08
97.43
502.41
169
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(i)
Amounts recognised in Consolidated Statement of Profit and Loss for investment property
Particulars
Rental income
Direct operating expense from property that generated rental income
Profit from investment properties before depreciation
Depreciation
Profit from investment properties
(ii) Contractual Obligations
Year Ended
March 31, 2020
67.99
26.24
41.76
19.75
22.01
` Crore
Year Ended
March 31, 2019
60.44
28.84
31.60
30.08
1.53
The Group has no contractual obligations to purchase, construct or develop investment property. However, the
responsibility for its repairs, maintenance or enhancements is with the Group.
(iii) Fair Value
The Parent Company had carried out fair valuation of the investment property during the previous year amounting to
` 531 Crore by an independent valuer. The Parent Company does not envisage any significant decrease in the value of
the property as at March 31, 2020 as compared to previous year.
(iv) Pledged details
The Investment property is pledged against the secured borrowings of the Parent Company. (Refer Note 11(a))
(v)
Estimation of Fair Value
The Group obtains independent valuations for its investment property periodically. The best evidence of fair value is
current prices in an active market for similar properties. Where such information is not available, the Group considers
information from a variety of sources including:
•
current prices in an active market for properties of different nature or recent prices of similar properties in less
active markets, adjusted to reflect those differences;
discounted cash flow projections based on reliable estimates of future cash flows; and
capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate
derived from an analysis of market evidence.
•
•
The fair values of investment property is determined by reputed third party, independent valuers. The main inputs used
were rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions
and industry data. All resulting fair value estimates for investment property are included in level 3.
5.
Intangible assets
Particulars
Computer
Software
Other
Intangible
Assets
Airport
Concessionaire
Rights
Metro
Concessional
Intangible Assets
Toll Concessional
Intangible Assets
Right-of-
Use Assets
Total
` Crore
Goodwill on
Consolidation
Gross carrying amount
As at April 01, 2018
53.99
1,454.26
60.61
3,336.73
12,094.68
Additions
Effect of foreign currency
exchange difference
Disposals
Gross carrying amount as at
March 31, 2019
Accumulated amortisation and
impairment
13.83
-
10.97
-
-
-
-
-
-
-
23.74
666.03
-
-
26.57
56.85
1,454.26
60.61
3,360.47
12,734.14
As at April 01, 2018
21.58
410.78
Amortisation charge for the year
Disposal
7.05
-
-
-
2.07
0.54
-
423.75
112.16
-
1,146.53
462.68
1.10
Accumulated amortisation and
impairment as at March 31, 2019
Net carrying amount as at March
31, 2019
28.63
410.78
2.61
535.91
1,608.11
28.22
1,043.48
58.00
2,824.56
11,126.03
-
-
-
-
-
-
-
-
-
-
17,000.27
33.42
679.86
23.74
37.54
17,666.33
33.42
2,004.71
582.43
1.10
33.42
-
2,586.04
33.42
15,080.29
-
170
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Particulars
Computer
Software
Other
Intangible
Assets
Airport
Concessionaire
Rights
Metro
Concessional
Intangible Assets
Toll Concessional
Intangible Assets
Right-of-
Use Assets
Total
` Crore
Goodwill on
Consolidation
Gross carrying amount
As at April 01, 2019
Additions
Effect of foreign currency
exchange difference
Disposals/Discontinued Operations
Gross carrying amount as at
March 31, 2020
Accumulated amortisation and
impairment
56.85
1,454.26
60.61
3,360.47
12,734.14
-
17,666.33
33.42
7.22
-
0.01
-
-
-
-
-
-
-
37.60
-
-
-
1,346.79
86.60
-
-
93.82
37.60
1,346.80
64.06
1,454.26
60.61
3,398.07
11,387.35
86.60
16,450.95
33.42
As at April 01, 2019
28.63
410.78
Amortisation charge for the year
Disposal/Discontinued Operations
6.40
0.01
-
-
2.61
0.62
-
535.91
113.97
-
1,608.11
497.58
80.13
-
2,586.04
8.79
-
627.36
80.14
33.42
-
Accumulated amortisation and
impairment as at March 31, 2020
Net carrying amount as at March
31, 2020
35.02
410.78
3.23
649.88
2,025.56
8.79
3,133.26
33.42
29.04
1,043.48
57.38
2,748.19
9,361.79
77.81
13,317.69
-
Overall Movement of Intangible assets under development
Financial Year
Opening
Additions*
Capitalisation
Discontinued
Operations
2019-20
2018-19
1,477.15
1,657.21
219.12
485.97
-
288.55
666.03
` Crore
Closing
1,407.72
1,477.15
*Additions includes Borrowing cost incurred during the year of ` 77.56 Crore (` 118.47 Crore) and Foreign exchange
fluctuation-Loss of `3.88 Crore (` 8.02 Crore).
Note:
(1)
The above Intangible Assets are other than internally generated.
(2) Remaining amortisation period of computer software is between 0 to 1 years.
(3) Computer Software, Other Intangible Assets and Airport Concessionaire Rights are at deemed cost.
(4) Concessional Intangible Assets are accounted in accordance with Appendix D of Ind AS 115”Service Concession
Arrangement”.
Concession Intangible Assets relate to Service Concession Arrangements as explained in Note No.7(c). Borrowing cost
is capitalized @11.30% to 13.50%.
(5)
The above assets are pledged as security with the lenders (Refer Note 11(a) and 11 (b))
6.
Inventories
Particulars
Coal and Fuel*
Stores and Spares *(net off of Provision / impairment for Non moving inventories
of `6.53 Crore (`6.08 Crore)
Total
* including in transit and with third party
Inventories are stated at lower of Cost and Net realisable value.
These Inventories are pledged as security with the lenders (Refer Note 11(a) and 11 (b))
` Crore
As at
March 31,2020
As at
March 31,2019
0.16
64.18
64.34
0.01
0.16
61.89
62.05
1.13
171
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
7.
Financial assets
7(a) Non-current investments
Particulars
Face value
in ` unless
otherwise
stated
As at March 31, 2020
As at March 31, 2019
Number of
Shares / Units
` Crore
Number of
Shares / Units
` Crore
Investment in equity instruments (fully paid-up
unless otherwise stated):
In associate companies-valued as per equity method
Quoted
Reliance Power Limited *#$
Reliance Naval and Engineering Limited #
Unquoted
Metro One Operation Private Limited
Reliance Geo Thermal Power Private Limited
RPL Sun Technique Private Limited
RPL Photon Private Limited
RPL Sun Power Private Limited
Gullfoss Enterprises Private Limited
Investment in preference shares – In associate
companies
10
10
10
10
10
10
10
10
-
- 92,84,98,193 5,469.82
18,61,03,025
- 22,01,03,025
-
3,000
2,500
5,000
5,000
5,000
5,001
2.46
-
-
-
-
-
3,000
2,500
5,000
5,000
5,000
-
2.47
-
-
-
-
-
2.46
5,472.29
Reliance Naval and Engineering Limited
10
4,22,45,764
- 4,22,45,764
-
In joint venture companies - valued as per equity
method
Unquoted
Utility Powertech Limited
In Others - At FVTPL
Quoted
10
7,92,000
29.78
29.78
7,92,000
24.22
24.22
Reliance Power Limited *# $
10
35,82,98,193
44.78
-
-
USD10
-
-
22,30,548
74.51
Yatra Online Inc.
Unquoted
CLE Private Limited ^
Urthing Sobla Hydro Power Private Limited
Western Electricity Supply Company of Odisha Limited
(WESCO) @ ` 1,000
North Eastern Electricity Supply Company of Odisha
Limited (NESCO) @ ` 1,000
Southern Electricity Supply Company of Odisha Limited
(SOUTHCO) @ ` 1,000
Rampia Coal Mine and Energy Private Limited
Reliance Infra Projects International Limited
Larimar Holdings Limited @ ` 4,909
Indian Highways Management Company Limited
Jayamkondam Power Limited @ ` 1.
Total
172
4,09,795
0.41
4,09,795
0.41
10
10
10
10
10
1
2,000
100
100
100
-
@
@
@
2,000
100
100
100
2,72,29,539
2.72 2,72,29,539
USD 1
USD 1
10
10
10,000
111
5,55,370
4,09,795
10,000
111
5,55,370
4,09,795
0.04
@
0.56
@
48.52
80.76
-
@
@
@
2.72
0.04
@
0.56
@
78.24
5,574.75
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Particulars
Investment in preference shares (fully paid-up)
In Others - At FVTPL
Unquoted
Non-Convertible Redeemable Preference Shares in
Reliance Infra Projects International Limited
6% Non-Cumulative Non-Convertible
Redeemable Preference Shares in CLE Private
Limited ^ @ `20,000
10% Non-Convertible Non-Cumulative Redeemable
Preference Shares in Jayamkondam Power
Limited @ ` 1
Total
Investment in Debentures (fully paid-up)
At FVTPL Unquoted
10.50% Unsecured Redeemable Non-Convertible
Debentures in CLE Private Limited ^
10.50% Unsecured Redeemable Non-Convertible
Debentures in CLE Private Limited ^
Total
Less : Provision for diminution in value of
Investments ** @
Total
Aggregate amount of quoted investments
Aggregate amount of unquoted investments
Aggregate amount of impairment in the value of
investments @
Face value
in ` unless
otherwise
stated
As at March 31, 2020
As at March 31, 2019
Number of
Shares / Units
` Crore
Number of
Shares / Units
` Crore
USD 1
3,60,000
678.62
3,60,000
678.62
1
1
2,000
@
2,000
1,09,50,000
@ 1,09,50,000
@
@
678.62
678.62
100
10,00,00,000
614.60 10,00,00,000
538.93
100
12,00,00,000
698.61 12,00,00,000
612.60
1,313.21
2,072.60
679.07
1,393.53
Market
Value
Book
Value
Market
Value
1,151.53
7,404.90
679.07
6,725.83
Book
Value
72.70
44.78
1,366.07 5,544.33
1,348.73
679.07
1,181.50
679.07
*Nil (10,19,00,000) shares of Reliance Power Limited are pledged with the lenders of Investee Company.
# 19,57,73,203 (53,90,73,203) shares of Reliance Power Limited and 18,61,03,025 (22,01,03,025) shares of Reliance
Naval and Engineering Limited are pledged with the lenders of the Parent Company.
** Include ` 678.62 Crore in respect of Non-Convertible Redeemable Preference Shares in Reliance Infra Projects International
Limited
^ formerly Crest Logistics and Engineers Private Limited
$During the year investment in RPower has been reduced to 12.77% of its paid-up share capital. Accordingly in terms of
Ind AS 28 on Investments in Associates and Joint Venture, RPower ceases to be an associate of the Company w.e.f January
09, 2020. The balance investments in RPower have been carried at fair value in accordance with Ind AS 109 on Financial
Instruments and valued at current market price
173
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
7(b)
Current Investments
Particulars
Investment in Mutual Funds Units
At FVTPL
Quoted
Reliance Floating Short Term Fund-Growth option
Nippon India Low Duration Fund (formerly Reliance
Money Manager Fund)- Daily Dividend Plan
Reliance Liquid Fund -Cash Plan - Direct -Daily
Dividend Option
Total
Aggregate amount of quoted investments
Aggregate amount of unquoted investments
Aggregate amount of impairment in the value of
investments
Face value
in ` unless
otherwise
stated
As at March 31, 2020
As at March 31, 2019
Number
of Units
` Crore
Number
of Units
` Crore
10
10
2,12,463
2,229
0.80
0.13
2,12,463
2,227
0.74
0.12
1,000
-
-
1,41,477
15.77
0.93
0.93
-
-
16.63
16.63
-
-
174
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020 e
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178
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
7 (c) Service Concession Receivables
Particulars
Opening balance
Accrued interest
Scheduled Repayments
Addition during the year
Closing balance
Grant Receivable from NHAI*
Non-current
Current
Total
Particulars
Secured, considered good
Unsecured, considered good
Credit Impaired
Total
Less: Allowance for doubtful debts
Trade Receivables (net)
Current portion
Non-current portion
* Grant receivable from NHAI ` 28.91 Crore (` 36.93 Crore) grouped under financial assets.
7(d) Trade Receivables
These trade receivables are given as security to the lenders – Refer Note 11 (a) and 11(b)
7(e) Cash and Cash Equivalents
Particulars
Balances with banks in -
Current Account
Bank Deposit with original maturity of less than 3 months
Unpaid Dividend Account
Cheques and drafts on hand
Cash on hand
Total
` Crore
As at
March 31, 2020
As at
March 31, 2019
36.93
1.84
12.92
3.06
28.91
-
28.91
28.91
54.23
2.50
39.61
19.81
36.93
-
36.93
36.93
` Crore
As at
March 31, 2020
As at
March 31, 2019
327.87
4,677.30
274.24
5,279.41
274.24
5,005.17
4,954.04
51.13
274.93
4,196.15
351.61
4,822.69
351.61
4,471.08
4,467.52
3.56
` Crore
As at
March 31, 2020*
As at
March 31, 2019
532.10
150.21
14.18
35.21
0.69
732.39
339.15
123.68
16.05
132.68
23.39
634.95
179
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
7(f) Bank Balances other than cash and cash equivalents
Particulars
Bank Deposits with Original Maturity of more than 3 months but less than 12
months
Total
*Restricted Cash and Bank Balances:
The Group is required to keep restricted cash for
a) issuing Bank Guarantee for GST
b) Payment of Dividend
c) Escrow accounts
d) Margin Money
details of which are given below:
` Crore
As at
March 31, 2020
727.79
As at
March 31, 2019
259.38
727.79
259.38
As at
March 31, 2020
460.23
14.18
98.77
13.75
586.95
` Crore
As at
March 31, 2019
62.95
16.05
212.41
13.75
305.16
Particulars
Bank Deposits
Unpaid dividend
Escrow account
Margin Money
Total
7(g) Loans
Particulars
As at March 31, 2020
Non-Current
Current
` Crore
As at March 31, 2019
Non-Current
Current
(Unsecured, considered good unless otherwise stated)
Inter-Corporate deposits to :-
Related parties-considered good* (Refer Note 24)
Others-considered good
Others- credit impaired
Less : Provision for Expected Credit Loss
Security Deposits – Considered good
Loans to Employees*
Total
752.90
4,497.84
3,829.14
9,079.88
3,829.14
5,250.74
21.23
3.23
5,275.20
-
-
-
-
-
13.31
4.59
17.90
1,104.48
4,441.72
3,832.28
9,378.48
3,832.28
5,546.20
70.53
2.76
5,619.49
*Secured
4.88
-
7.29
-
-
-
-
-
43.48
7.71
51.19
-
7(h) Other Financial Assets
Particulars
(Unsecured, considered good unless otherwise stated)
Receivable from DMRC
Claim receivable from NHAI
Grant receivable from NHAI
Interest Accrued / receivables*
Considered Good
Considered Doubtful
Fixed Deposit with bank with maturity of more than
12 months
Margin money with Banks/Restricted Bank Deposit
Unbilled Revenue
Other Receivables
Less: Provision for diminution in value of deposits/
Expected Credit Loss
Total
As at March 31, 2020
Non-Current
Current
` Crore
As at March 31, 2019
Non-Current
Current
1,608.29
29.12
28.91
1,463.65
143.03
-
-
376.21
661.96
4,311.17
143.03
-
-
-
0.25
-
39.68
160.62
-
101.17
301.72
-
1,374.60
38.20
36.93
689.97
144.83
-
-
512.39
917.58
3,714.50
144.83
-
-
-
0.22
-
40.15
133.97
-
81.40
255.74
-
4,168.14
301.72
3,569.67
255.74
*Secured
0.28
0.25
180
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
7(i) Other Assets
Particulars
(Unsecured, considered good unless otherwise stated)
Capital advances
Advance to vendors
Duties and Taxes Recoverable
Advances recoverable in kind or for value to be received
Gratuity Advance (Refer Note 34)
Amount due from customers for Contract work
Other receivables
Total
As at March 31, 2020
As at March 31, 2019
Current
Non-Current
Current
Non-Current
(` Crore)
-
436.42
31.21
449.11
0.37
683.78
0.91
40.95
78.01
46.23
1.11
0.39
-
4.09
-
457.37
328.16
545.85
1.93
576.68
0.96
24.40
453.44
46.22
1.61
0.39
-
4.09
1,601.80
170.78
1,910.95
530.15
8.
Assets classified as held for sale and Discontinued operations
(i)
KM Toll Road Private Limited (KMTR)
KMTR, a subsidiary of the Parent Company, has terminated the Concession Agreement with National Highways
Authority of India (NHAI) for Kandla Mundra Road Project (Project) on May 7, 2019, on account of Material Breach
and Event of Default under the provisions of the Concession Agreement by NHAI. The operations of the Project have
been taken over by NHAI and NHAI has given a contract to a third party for toll collection with effect from April 16,
2019. Accordingly, in terms of the provisions of the Concession Agreement, NHAI is liable to pay KMTR a termination
payment estimated at ` 1205.47 Crore as the termination has arisen owing to NHAI Event of Default. KMTR has also
raised further claims of ` 1,092.74 Crore. KMTR is confident of the positive outcome of the claims so raised. Pending
final outcome of the notice of termination and possible arbitration proceedings and as legally advised, the claims for
the Termination Payment are considered fully enforceable. Accordingly, notwithstanding the dependence on above said
uncertain events, the company continues to prepare the financial statements on a going concern basis. The Group is
confident of recovering its entire investment in KMTR and hence, no provision for impairment on the KMTR is considered
in the financial statements. The results of the KMTR are classified as Discontinued operations as per Ind AS 105 “Non
Current Assets held for sale and discontinued operations”.
The financial performance and cash flow information of KMTR presented as under:
Particulars
Revenue
Expenses
Profit / (Loss) before Tax
Income tax expense
Profit after income tax from discontinued operations
Net cash inflow/(outflow) from operating activities
Net cash inflow/(outflow) from investing activities
Net cash inflow/(outflow) from financing activities
Net increase in cash generated from discontinued operations
The carrying amount of assets and Liabilities are as follows:
Particulars
Assets
Liabilities
` Crore
Year ended
March 31, 2020
4.56
7.73
(3.16)
-
(3.16)
2.74
0.01
-
2.75
(` Crore)
As at
March 31, 2020
1,646.93
1,288.72
181
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(ii) Reliance Electric Generation and Supply Limited (REGSL)
The Scheme of Arrangement for the vesting of Mumbai Power Business (MPB) of the Parent Company to its resulting
wholly owned subsidiary viz. Reliance Electric Generation and Supply Limited (REGSL) has been implemented on August
29, 2018 with effect from April 01, 2018 after receiving all necessary approvals. Pursuant to the Share Purchase
Agreement entered with Adani Transmission Limited (ATL) for the sale of MPB, the Parent Company on August 29,
2018 divested its entire stake in REGSL. The results of the MPB are classified as Discontinued operations as per Ind AS
105 “Non Current Assets held for sale and discontinued operations”.
The financial performance and cash flow information of REGSL presented as under:
Particulars
Revenue
Expenses
Profit / (Loss) before Rate Regulated Activities and Tax
Add: Regulatory Income
Profit / (Loss) before Tax
Income tax expense
Profit after income tax from discontinued operations
Net cash inflow/(outflow) from operating activities
Net cash inflow/(outflow) from investing activities
Net cash inflow/(outflow) from financing activities
Net increase in cash generated from discontinued operations
Note: The above amount is attributable to equity holders of the Parent Company
` Crore
April 01, 2018 to
August 28, 2018
3,210.16
3,373.93
(163.77)
105.28
(58.49)
-
(58.49)
863.64
(169.40)
(2,194.38)
(1,500.14)
The carrying amount of assets and Liabilities of REGSL as at the date of sale i.e. August 29, 2018 were as follows:
Particulars
Assets
Liabilities
(` Crore)
As at
August 29, 2018
17,735.52
14,438.30
The Loss for the year ended March 31, 2020 is ` 3.16 Crore (Profit for the year ended March 31, 2019 was
` 3,954.61 Crore) including tax expenses of ` Nil and reversal of deferred tax liability of ` 2,234.30 Crore has been
shown as profit from Discontinued Operations in respect of above transactions.
(iii) The Parent Company has entered into a Share Purchase Agreement with Cube Highways and Infrastructure III
Pte Limited for sale of its entire stake in DA Toll Road Private Limited. The Company has received in-principle
approval from NHAI; final approval and customary approvals are awaited and hence has not been considered as
Non-Current Assets held for sale and discontinued operations as at March 31, 2020 as per Ind AS 105 “Non-
Current Assets held for sale and discontinued operations”.
182
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
9.
Regulatory deferral account balances
In accordance with accounting policy (Refer Note 1 (e) (i)) and in accordance with the Guidance Note on Rate Regulated
Activities issued by ICAI, the reconciliation of the Regulatory Assets / (Liabilities) of Delhi Discoms (subsidiaries) and PKTCL
as on March 31, 2020 is as under:
Sr.
No.
I
Particulars
Regulatory Assets / (Liability)
A
B
Opening Balance
Add : Income recoverable/(reversible) from future tariff / Revenue
GAP for the year
1
2
3
For Current Year
For Earlier Year
Regulatory assets recoverable on account of Deferred Tax on
Depreciation difference
Total (1+2+3)
Recovered during the year
Assets transferred on Disposal (Refer Note 8)
Net Movement during the year (B-C-D)
Closing Balance (A-E)
C
D
E
F
II
Deferred Tax (Assets) / Liability associated with Regulatory Assets /
(Liability)
Opening Balance
Add: Deferred Tax (Assets) / Liabilities during the Year
Total deferred Tax (Assets) / Liability associated with Regulatory Assets
/ (Liability)
Less: Recoverable from future Tariff
Closing Balance
III
Balance as at the end of the year (I+II)
Regulatory Assets
Regulatory Liability
2019-2020
` Crore
2018-2019
16,505.00
18,219.62
2,527.57
-
-
2,527.57
1,115.00
-
1,412.57
17,917.57
5,393.55
499.96
5,893.51
5,893.51
-
1,023.20
-
-
1,023.20
1,103.78
1,634.04
(1,714.62)
16,505.00
5,069.18
324.37
5,393.55
5,393.55
-
17,917.57
-
16,505.00
-
Regulatory Assets of ` 17,917.57 Crore ( ` 16,503.80 Crore ) have been given as Security to the Lenders.
Regulatory Assets of Delhi Discoms (BRPL / BYPL):
The Retail Supply Tariff (RST) chargeable to consumers by Delhi Discoms is regulated by Delhi Electricity Regulatory Commission
(DERC or Commission). These regulations provides for segregating of costs into controllable and uncontrollable costs. Financial
losses arising out of the under-performance with respect to the targets specified by the DERC for the “controllable” parameters
is to be borne by the Licensee’s.
From April 01, 2012 till March 31, 2015 (MYT period), and as per new Regulations-139 (DERC Tariff Regulations, 2017
notified by DERC on January 31, 2017), the previous MYT Regulations 2011 which was already over has been extended
upto March 31, 2019, determination of Retail Supply Tariff (RST) chargeable by the Delhi Discoms to its consumers is
governed by DERC (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations 2011
(MYT Regulations, 2011). In terms of MYT Regulations 2017, DERC on September 01, 2017 issued the DERC (Business
Plan) Regulations, 2017 (Business Plan Regulations)which is in force for a period of three years upto FY 2019-20. In terms
of these regulations, DERC shall determine the RST in a manner that the Company recovers its power purchase costs as well
as other prudently incurred expenses and earns assured return of 16% p.a. on DERC approved equity subject to achievement
of Aggregate Technical and Commercial (AT&C) loss reduction targets. The truing up process during the MYT periods is being
conducted as per the principle stated in the respective MYT Regulations.
During the truing up process, revenue gaps (i.e. shortfall in actual returns over assured returns) are determined by the regulator
and are permitted to be carried forward as regulatory assets/ regulatory liabilities which would be recovered / refunded
through future billing based on future tariff determination by the regulator at the end of each accounting period.
Delhi Discoms determined revenue gap (FY 2013-14 to FY 2017-18) based on the principles laid down under the MYT
Regulations and Tariff Orders issued by DERC (except for the current Tariff Order referred below). In respect of such revenue
gaps, appropriate adjustments, have been made for the respective years in terms of Ind AS 114 read with the Guidance Note
on Regulatory Assets issued by the ICAI. Further for the current year self truing up has been conducted as per the principles
laid down in the Business Plan Regulations.
183
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
DERC has trued up revenue gap for period upto March 31, 2014 vide its Tariff Order dated September 29, 2015 and for
FY 2014-15, 2015-16 , FY 2016-17 and FY 2017-18 in the subsequent Tariff Orders dated August 31, 2017,March 28,
2018 and July 31, 2019 with certain dis-allowances. Delhi Discoms has filed an appeal before Hon’ble APTEL against such
disallowances.
DERC issued Tariff Order for FY 2017-18 on August 31, 2017 which is applicable from September 01, 2017 to March 31,
2019. On March 28, 2018 DERC issued another Tariff Order for FY 2019-20 which will remain in force from April 01, 2018
and will remain in force till replaced by a subsequent tariff order and/or is amended, reviewed or modified in accordance with
the provisions of the Electricity Act, 2003 and the Regulations made there under.
Market Risk
Delhi Discoms is in the business of Supply of Electricity, being an essential and life line for consumers, therefore no demand
risk anticipated. There is regular growth in the numbers of consumers and demand of electricity from existing and new
consumers.
Regulatory Risk
Delhi Discoms is operating under regulatory environment governed by DERC. Tariff is subject to Rate Regulated Activities.
Regulatory Assets recognized in the financial statements of Delhi Discoms are subject to true up by DERC as per Regulation
and disallowances of past assessments pending in courts /authorities.
Regulatory Assets/( Liability) of PKTCL
In respect of PKTCL, determination of Transmission service charges (TSC) chargeable by the Company to its consumers is
governed by CERC Tariff Regulation, 2014, whereby CERC determines the Transmission service charges. During the year, the
Company has billed the total regulatory asset balance lying as on March 31, 2019 ` 1.20 Crore and the same is reduced from
the total regulatory deferral account debit balances. During the year, ` Nil (` 0.42 Crore) is added to the approved TSC.
10. Share Capital and other equity
10(a) Share Capital
Particulars
Authorised
45,00,60,000 (45,00,60,000) Equity Shares of ` 10 each
80,00,000 (80,00,000) Equity Shares of ` 10 each with differential rights
155,00,00,000 (155,00,00,000) Redeemable Preference Shares of ` 10
each
4,20,00,000 (4,20,00,000) Unclassified Shares of ` 10 each
Issued
26,53,92,065 (26,53,92,065) Equity Shares of ` 10 each
Subscribed and fully paid-up
26,29,90,000 (26,29,90,000) Equity Shares of ` 10 each fully paid up
Add: 3,54,479 (3,54,479) Forfeited Shares- Amounts originally paid up
` Crore
As at
March 31,2020
As at
March 31,2019
450.06
8.00
1,550.00
42.00
2,050.06
265.40
265.40
262.99
0.04
263.03
450.06
8.00
1,550.00
42.00
2,050.06
265.40
265.40
262.99
0.04
263.03
(a) Shares Pledged Details:
Sr.
No.
1
Particulars
As at
March 31, 2020
As at
March 31, 2019
No. of Shares Pledged by Promoter Group Companies
2,53,59,937
10,45,94,607
(b) Reconciliation of the Shares outstanding at the beginning and at the end of the year
Particulars
Equity Shares -
As at March 31, 2020
As at March 31, 2019
No. of shares
` Crore
No. of shares
` Crore
At the beginning of the year
26,29,90,000
262.99
26,29,90,000
Outstanding at the end of the year
26,29,90,000
262.99
26,29,90,000
262.99
262.99
184
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Terms and rights attached to equity shares
i.
Voting:
The Parent Company has issued only one class of equity shares having a par value of ` 10 per share. Each holder
of equity shares is entitled to one vote per share.
ii.
Dividends:
Respective companies declare and pay dividend in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting.
iii.
Liquidation:
In the event of liquidation, the holders of equity shares will be entitled to receive all of the remaining assets after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held
by the shareholders.
iv. Details of shareholders holding more than 5% shares in the Parent Company
Name of the Shareholders
As at March 31, 2020
As at March 31, 2019
Reliance Project Ventures and
Management Private Limited
Housing Development Corporation
Finance Limited
No. of Shares
2,77,09,937
% held
No. of Shares
10.54
8,80,29,932
% held
33.47
2,15,80,995
8.21
@
@
Reliance Big Private Limited
@
@ 1,68,00,000
6.39
(@ holds less than 5%)
10(b) Other Equity - Reserves and surplus
Particulars
Capital Reserve
Capital Reserve on Consolidation
Sale proceeds of fractional Equity Shares Certificates and dividends thereon
(@` 37,953 (` 37,953)
Capital Redemption Reserve
Securities Premium Account
Debenture Redemption Reserve
Self Insurance Reserve
General Reserve
Retained Earnings
Treasury Shares
Total Reserves and Surplus
(i)
Capital Reserve
Particulars
Balance as per last Balance Sheet
Less: Loss on invocation / impairment of shares (Refer Note 36)
Closing balance
` Crore
As at
March 31, 2020
As at
March 31, 2019
155.09
3,687.62
@
130.03
8,825.09
212.98
5.81
860.00
5,179.97
3,974.76
@
130.03
8,825.09
165.02
4.80
710.89
(4,346.53)
(5,071.71)
(0.75)
(6.14)
9,529.34
13,912.71
` Crore
As at
March 31, 2020
5,179.97
(5,024.88)
155.09
As at
March 31, 2019
5,179.97
-
5,179.97
185
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(ii)
Capital Reserve on Consolidation
Particulars
Balance as per last Balance Sheet
Less: Loss on invocation / impairment of shares (Refer Note 36)
Closing balance
` Crore
As at
March 31, 2020
3,974.76
(287.14)
3,687.62
As at
March 31, 2019
3,974.76
-
3,974.76
(iii)
Sale proceeds of fractional Equity Share Certificates and dividends thereon
Particulars
Balance as per last Balance Sheet (@` 37,953 (` 37,953 ))
Closing balance
(iv)
Capital Redemption Reserve
Particulars
Balance as per last Balance Sheet
Closing balance
(v)
Securities Premium
Particulars
Balance as per last Balance Sheet
Closing balance
(vi) Debenture Redemption Reserve
Particulars
Balance as per last Balance Sheet
Add: Transfer from Retained Earnings
Less: Transfer to General Reserve
Closing balance
(vii) Statutory Reserve
Particulars
Development Reserve Account No.1
Development Reserve Account No.2
Debt Redemption Reserve
Rural Electrification Scheme Reserve
Reserve to augment production facilities
Reserve for Power Project
Development Reserve Account No. 3
Total
Less: Transfer to General Reserve
Closing balance
186
` Crore
As at
March 31, 2020
@
@
As at
March 31, 2019
@
@
` Crore
As at
March 31, 2020
130.03
130.03
As at
March 31, 2019
130.03
130.03
` Crore
As at
March 31, 2020
8,825.09
8,825.09
As at
March 31, 2019
8,825.09
8,825.09
As at
March 31, 2020
165.02
55.66
(7.70)
212.98
` Crore
As at
March 31, 2019
528.23
96.84
(460.05)
165.02
As at
March 31, 2020
-
-
-
-
-
-
-
-
-
-
` Crore
As at
March 31, 2019
1.69
18.97
2.30
0.11
0.04
100.00
140.88
263.99
(263.99)
-
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020 (viii)
Self Insurance Reserve
Particulars
Balance as per last Balance Sheet
Add: Transfer from Retained Earnings
Closing balance
(ix)
General Reserve
Particulars
Balance as per last Balance Sheet
Less: Transfer to Statement of Consolidated Statement of Profit and
Loss (net)
Add:Transfer to Statement of Consolidated Statement of Profit and
Loss (Refer Note 26)
Add: Transfer from Statutory Reserve
Less: Adjustment of Carrying Cost
Add: Transfer from Debenture Redemption Reserve
Closing balance
(x)
Foreign Currency Monetary Item Translation Difference Account
Particulars
Balance as per last Balance Sheet
Add: Addition during the year - Gain / (Loss)
Less: Amortisation during the year
Less: Transfer to Consolidated Statement of Profit and Loss
Closing balance
(xi)
Retained Earnings
Particulars
Balance as per last Balance Sheet
Add: Net Profit / (Loss) for the year
Add :Items of other Comprehensive Income recognised directly in
retained earnings
- Remeasurements gains / (loss) on defined benefit plans (Net of
Tax) and movement in Regulatory Deferral account balance
Less: Dividend paid
Less: Tax on dividend
Less: Transfer to Debenture Redemption Reserve
Less: Transfer to Self Insurance Reserve
Closing balance
As at
March 31, 2020
As at
March 31, 2019
` Crore
4.80
1.01
5.81
3.79
1.01
4.80
` Crore
As at
March 31, 2020
As at
March 31, 2019
710.89
6,748.61
-
(6,616.02)
141.41
192.24
-
-
7.70
860.00
263.99
(337.98)
460.05
710.89
` Crore
As at
March 31, 2020
As at
March 31, 2019
-
-
-
-
-
77.77
39.52
(12.22)
(105.07)
-
` Crore
As at
March 31, 2020
As at
March 31, 2019
(5,071.71)
771.17
(2,296.03)
(2,426.82)
15.49
53.09
(4.81)
-
(55.66)
(1.01)
(249.84)
(54.26)
(96.84)
(1.01)
(4,346.52)
(5,071.71)
187
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020 (xii)
Treasury Shares
Particulars
Balance as per last Balance Sheet
Less : Provision for diminution in value of equity shares
Closing balance
Nature and purpose of other reserves
(a) Capital Reserve:
As at
March 31, 2020
(6.14)
5.39
(0.75)
(` Crore)
As at
March 31, 2019
(19.13)
12.99
(6.14)
The Reserve is created based on statutory requirement under the Companies Act, 2013, on account of
forfeiture of equity shares warrants, mergers and acquisitions pursuant to the Order of Hon’ble High Court
of Bombay. This is not available for distribution of dividend but can be utilised for issuing bonus shares.
(b) Securities Premium Account:
Securities premium account is used to record the premium on issue of shares. The same is utilized in
accordance with the provisions of the Act.
(c) Debenture Redemption Reserve:
As per the Companies (Share Capital and Debentures) Rules, 2014 (amended), the Company is required
to create debenture redemption reserve out of profits, which is available for payment of dividend, equal
to 25% of the amount of debentures issued. Accordingly the Group has created DRR out of the profit of
the company in terms of the Companies (Share Capital and Debentures) Rules, 2014 (as amended) which
would be utilized for redemption of debentures during its maturity.
(d) Capital Redemption Reserve:
The Capital Redemption Reserve is required to be created on buy-back of equity shares. The Group may
issue fully paid up bonus shares to its members out of the capital redemption reserve account.
(e) Treasury Shares:
Reliance Infrastructure ESOS Trust has in substance acted as an agent and the Parent Company as a
sponsor retains the majority of the risks and rewards relating to funding arrangement. Accordingly, the
Parent Company has recognised issue of shares to the Trust as the issue of treasury shares by consolidating
Trust into financial statements of the Parent Company.
188
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
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189
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Secured borrowings (Principal undiscounted amounts) :
A. Non Convertible Debentures referred to above to the extent of
i.
In case of Parent Company
` 385 Crore are secured by Pledge of 19,17,37,454 Equity shares of Reliance Power Limited which are held by the
Company and all of the Company’s rights, title, interest and benefits in, to and under a specific bank account of the
Company and also subservient charge over current assets of the Company.
` 600 Crore are secured by first pari-passu charge on Company’s Land situated at Village Sancoale, Goa and Plant,
property and equipment at Samalkot Mandal, East Godavari District Andhra Pradesh, one Flat located in Thane District
in the State of Maharashtra, first pari-passu charge over Immoveable Property (free hold Land) & Moveable Property
of BSES Kerala Power Limited and over the Identified Fixed assets (buildings) situated in Mumbai.
` 102.70 Crore are secured by pledge of 40,35,749 Equity shares of Reliance Power Limited which are held by the
Company, first pari-passu charge over the Identified Fixed assets (buildings) situated in Mumbai , exclusive charge on
One Flat located in Thane District in the State of Maharashtra and all of the Company’s rights, title, interest and benefits
in, to and under a specific bank account of Company.
ii.
In case of Other than Parent Company are secured by the followings:
` 107.99 Crore in case of Toll Collection Rights, is secured by a first ranking pari passu mortgage/charge over all the
Borrower’s immoveable and movable properties, intangible assets but not limited to goodwill, rights, undertaking and
uncalled capital present and future except the project assets. The same are also secured by charge on all the Borrower’s
bank accounts including, but not limited to the Escrow Account/ its Sub-Accounts where all revenues, Disbursements,
receivables shall be deposited and in all funds from time to time deposited therein and in all authorized Investments or
other securities representing all amounts credited to the Escrow Account.
The same is also secured by a first ranking pari passu charge over / assignment of the right, title, interests, benefits,
claims and demands of the Borrower in, to and under any letter of credit, guarantees (except the guarantees issued in
favour of NHAI) including contractor guarantees and liquidated damages and performance bond provided by any party
to the Project Documents. The same is also secured by pldedge/Non Disposal Undertaking (NDU) of promoters equity
interest representing 51% of the equity capital of the investee companies.
B.
Convertible Debentures
CBDTPL had entered into a debenture subscription agreement dated May 28, 2008 with Telangana State Industrial
Infrastructure Corporation (TSIIC), erstwhile Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for the issue
of 12% fully convertible debentures of ` 10 each aggregating to ` 179.99 Crore (outstanding ` 159.05 Crore as at March
31, 2020) for consideration other than cash secured against a first charge created on the land till the date of execution of
the financing documents and thereafter TSIIC will cede the first charge in favour of the lenders and shall continue to have a
second charge till the debentures are fully converted into equity shares of the Company. The debentures shall be convertible
into equity shares of the Company to maintain the equity holding of TSIIC of 11% in the Company till the debentures are fully
converted into equity shares of the Company. The debentures shall be entitled to a coupon of 12% per annum compounded
annually pending the conversion into equity shares. Pursuant to the restructuring of the project (Refer Note 38 (a)), the
coupon rate for interest on debentures has been reduced to 2% p.a. for the period April 1, 2010 to March 31, 2014.
As per Ind AS 109, the compound financial instruments i.e. fully convertible debentures has to be split between equity and
financial liability as per features i.e. timeline, coupon rate, conversion ratio. The Project restructuring proposal of CBDTPL and
the signing of amendment agreements should take place, after receipt of final communication from TSIIC. Therefore CBDTPL
has in the interim classified the same as financial liability, since there is no definite timeline of conversion of debentures in to
equity, presently available and there is a ‘contractual obligation’ to pay coupon rate as per the agreement up to the time of
conversion of these debentures.
C.
External Commercial Borrowings in Foreign Currency:
` 437.02 Crore, in case of Mumbai Metro Rail Concession Rights, are secured by first mortgage/charge of all immovable
properties, moveable assets and all other moveable assets, all other intangible assets both present and future, save and except
project assets. The same also secured by first mortgage/charge on all receivables, escrow accounts, bank accounts, revenues
of whatsoever nature and wherever arising, both present and future.
The above securities rank pari passu to the security interest created in favor of the Rupee term loans availed from banks.
` 331.54 Crore, in case of Toll Collection Rights, is secured by a first ranking pari passu mortgage/charge over all the
Borrower’s immoveable and movable properties, intangible assets but not limited to goodwill, rights, undertaking and uncalled
capital present and future except the project assets. The same are also secured by charge on all the Borrower’s bank
accounts including, but not limited to the Escrow Account/ its Sub-Accounts where all revenues, disbursements, receivables
shall be deposited and in all funds from time to time deposited therein and in all Permitted Investments or other securities
representing all amounts credited to the Escrow Account. The same are also secured by charge over / assignment of the right,
title, interests, benefits, claims and demands of the Borrower in, to and under any letter of credit, guarantees (except the
guarantees issued in favour of NHAI) including contractor guarantees and liquidated damages and performance bond provided
by any party to the Project Documents. The same is also secured by Pledge/NDU of promoter’s Equity Interest representing
51% of the equity capital of the investee companies.
190
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
D.
Term Loans from Financial Institutions are secured as under:
` 334.01 Crore, in case of Delhi Metro Rail Concession Rights is secured by by first charge against moveable properties,
machinery, machinery spares, equipment, tools and accessories, vehicles, and all other movable assets save and except project
assets, both present and future and the borrower’s other assets, book debts, operating cash flow, commission, outstanding
moneys including claims etc.
` 100.52 Crore, in case of PKTCL is secured by first pari-passu charge by way of mortgage of all immovable properties
acquired for the project, both present and future and also first pari-passu charge by way of hypothecation of all movable
assets, including moveable plant & machinery, machinery spares,tools and accessories, furniture, fixtures, vehicles and all other
moveable assets, present and future and also on all the cash flows, Receivables, book debts, revenues of whatsoever nature
and wherever arising, present and future and on all intangibles assets, present and future and on guarantees, letter of credit,
performance bond, indemnities etc, on all Insurance Contracts and Insurance Proceeds. The same is also secured by Pledge of
promoter’s Equity Interest representing 51% of the project Equity Capital.
` 927.49 Crore, in case of Toll Collection Rights, is secured by a first ranking pari passu mortgage/charge over all the
Borrower’s immoveable and movable properties, intangible assets but not limited to goodwill, rights, undertaking and uncalled
capital present and future except the project assets. The same are also secured by charge on all the Borrower’s bank
accounts including, but not limited to the Escrow Account/ its Sub-Accounts where all revenues, Disbursements, receivables
shall be deposited and in all funds from time to time deposited therein and in all Permitted Investments or other securities
representing all amounts credited to the Escrow Account. The same are also secured by charge over / assignment of the right,
title, interests, benefits, claims and demands of the Borrower in, to and under any letter of credit, guarantees (except the
guarantees issued in favour of NHAI) including contractor guarantees and liquidated damages and performance bond provided
by any party to the Project Documents and on all insurance contracts. The same is also secured by Pledge/NDU of promoter’s
Equity Interest representing 51% of the equity capital of the investee companies.
Term Loans from Banks are secured as under:
(i)
In case of Parent Company are secured by the following:
(i)
E.
(ii)
(iii)
b.
c.
d.
e.
` 244.97 Crore are secured as under:
` 75 Crore by way of first exclusive charge on certain Plant and Equipment of EPC division and on Property, Plant
and Equipment of Windmill Project of the Company, ` 83 Crore by second charge on Company’s current assets
and ` 86.97 Crore by subservient charge on moveable Property, Plant and Equipment of the Company.
`3,736.96 Crore are secured by the following.
a.
Pledge of 13,43,100 Equity Shares of NK Toll Road Limited, 15,63,000 Equity Shares of DS Toll Road
Limited, 5,88,330 Equity Shares of GF Toll Road Private Limited, 10,22,700 Equity Shares of KM Toll
Road Private Limited, 11,13,300 Equity Shares of HK Toll Road Private Limited, 38,26,695 Equity Shares
of TK Toll Road Private Limited, 32,23,476 Equity Shares of TD Toll Road Private Limited, 55,23,678
Equity Shares of SU Toll Road Private Limited, 2,462 Equity Shares of JR Toll Road Private Limited and
2,466 Equity Shares of PS Toll Road Private Limited.
Non-disposal Undertaking on 45,99,180 Equity Shares of DA Toll Road Private Limited.
Non-disposal Undertaking on 19% Equity Share holding of SU Toll Road Private Limited, GF Toll Road
Private Limited, KM Toll Road Private Limited, HK Toll Road Private Limited, TD Toll Road Private Limited
TK Toll Road Private Limited, NK Toll Road Limited and DS Toll Road Limited . (Pledge of this 19% Equity
Shares is yet to be created).
Second pari passu charge on the current assets of Company.
First pari passu charge on all receivable arising out of sub-debt / loan advanced / to be advanced to Road
Companies, as mentioned above.
` 3,627.18 Crore are secured by the following.
a.
b.
c.
Secured by pledge of 1,88,28,000 Equity Shares of BSES Kerala Power Limited.
Secured by pledge of 18,61,03,025 Equity Shares of Reliance Naval and Engineering Limited.
Exclusive charge over all amounts owing to, and received and/or receivable by the Company on its behalf
from Delhi Airport Metro Express Pvt. Ltd.
Second pari passu charge over all amounts owing to and/or received and/or receivable by the Company
from certain liquidity events.
First pari passu charge over all amounts owing to and received and/or receivables by the Company and/ or
any persons (s) on its behalf from claims under unapproved regulatory assets.
Exclusive charge over the ‘Surplus Proceeds” from Sale of Shares of BSES Rajdhani Power Limited (BRPL)
and / or BSES Yamuna Power Limited (BYPL), to be received by the Borrower or any Group Company
of the Borrower (incl. subsidiary, affiliates, etc.). Charge on these loans shall rank pari-passu subject to,
other lender(s)/security trustee having charge, on the charged assets, sharing pari- passu letters wherever
applicable.
Exclusive charge over the ‘Surplus Proceeds” from Sale of Shares of Parbati Koldam Transmission Company
Limited, to be received by the Borrower or any Group Company of the Borrower (incl. subsidiary, affiliates,
etc.). Charge on these loans shall rank pari-passu subject to, other lender(s)/security trustee having charge,
on the charged assets, sharing pari- passu letters wherever applicable.
d.
e.
f.
g.
191
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(iv) Further loan aggregating to ` 2,732.74 Crore included in above are secured by exclusive charge on identified
Building and Investment property situated in Mumbai and exclusive charge over receivables and cash flow from
Investment Property
(ii)
In case of Other than Parent Company are secured by the following:
` 346.64 Crore in case of PKTCL is secured by first pari-passu charge by way of mortgage of all immovable properties
acquired for the project, both present and future and also first pari-passu charge by way of hypothecation of all movable
assets, including moveable plant & machinery, machinery spares,tools and accessories, furniture, fixtures, vehicles and
all other moveable assets, present and future and also on all the cash flows, Receivables, book debts, revenues of
whatsoever nature and wherever arising, present and future and on all intangibles assets, present and future and on
guarantees, letter of credit, performance bond, indemnities etc, on all Insurance Contracts and Insurance Proceeds. The
same is also secured by Pledge of promoter’s Equity Interest representing 51% of the project Equity Capital.
` 1,328.88 Crore in case of Mumbai Metro Rail Concession Rights are secured by first mortgage/charge of all immovable
properties, moveable assets, all other intangible assets both present and future, save and except project assets. The
same are also secured by first mortgage/charge on all receivables, escrow accounts, bank accounts, revenues of
whatsoever nature and wherever arising, both present and future.
The above securities rank pari passu to the security interest created in favor of the Rupee term loans and the buyers
credit facilities availed from banks
` 3,955.82 Crore, in case of Toll Collection Rights, is secured by a first ranking pari passu mortgage/charge over all the
Borrower’s immoveable and movable properties, intangible assets but not limited to goodwill, rights, insurance contracts,
undertaking and uncalled capital present and future except the project assets. The same are also secured by charge on
all the Borrower’s bank accounts including, but not limited to the Escrow Account/ its Sub-Accounts where all revenues,
Disbursements, receivables shall be deposited and in all funds from time to time deposited therein and in all Permitted
Investments or other securities representing all amounts credited to the Escrow Account. The same are also secured by
charge over / assignment of the right, title, interests, benefits, claims and demands of the Borrower in, to and under
any letter of credit, guarantees (except the guarantees issued in favour of NHAI) including contractor guarantees and
liquidated damages and performance bond provided by any party to the Project Documents and insurance contracts.
The same is also secured by Pledge/NDU of promoter’s Equity Interest representing 51% of the equity capital of the
investee companies.
` 1,206.24 Crore, in case of Delhi Metro Rail Concession Rights is secured by first charge against moveable properties,
machinery, machinery spares, equipment, tools and accessories, vehicles, and all other movable assets save and except
project assets, both present and future and the borrower’s other assets, book debts, operating cash flow, commission,
outstanding moneys including claims etc.
F. Loans from Others are secured as under:
` 27.00 Crore in case of Parent Company is secured by subservient charge on all current assets of the Parent Company,
present and future.
` 962.44 Crore and ` 956.66 Crore, in case of BRPL and BYPL (Delhi Discoms) respectively are secured by the following:
a.
first ranking pari passu charges on all movable and immovable properties and assets, regulatory assets, present and
future revenue of whatsoever nature and wherever arising and Second pari-passu charge on the receivable of the
Company.
b.
Collateral Security:
(i)
Pledge of 51% of ordinary equity share of the Company
(ii) DSRA equvilant to interest and principal dues of ensuing two quarters in the form of fixed deposit.
c.
As per the terms of “The BSES Rajdhani Distribution and Retail Supply of Electricity License (License No. 2/DIST of
2004)”, Discoms is required to obtain permission of the DERC for creating charges for loans and other credit facilities
availed by it. As on March 31, 2020 the required permission from DERC is sought and is under process.
192
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
As at March 31, 2020, the Group has overdue of ` 1,775.13 Crore included in current maturities of long term debts in note no
11(e) and ` 1,098.85 Crore included in interest accrued in note no 11 (d) towards the principal and interest respectively. Further
the Group has delayed payments of interest and principal to the lenders as detailed below:
Name of lender
Default as at March 31, 2020
Delay in repayment during the year
Principal
Interest
Principal
Interest
Amount
(` Crore)
Maximum
days of
default
Amount
(` Crore)
Maximum
days of
default
Amount
(` Crore)
Maximum
days of
delay
Amount
(` Crore)
Maximum
days of
delay
Canara Bank
IDFC Bank
Jammu and Kashmir
Bank
Yes Bank Limited
Srei Equipment Finance
Limited
Syndicate Bank
Axis Bank
Bank of Baroda
IFCI Limited
NCD Series 29
NCD Series 18 *
NCD Series 20E
Bank of India
Corporation Bank
India Infrastructure
Finance Company
Limited
Oriental Bank of
Commerce
UCO Bank
Indian Overseas Bank
Andhra Bank
Central Bank of India
Dena Bank
Bank of Maharashtra
Punjab and Sindh Bank
State Bank of India
Allahabad Bank
Indian Bank
Union Bank of India
United Bank of India
IntesaSanpaoloS.p.a
SBI (Mauritius) Limited
IDBI Bank
Indian Infrastructure
Finance Company (UK)
Limited
124.72
109.78
45.00
186.37
5.19
83.00
25.32
14.44
0.50
21.00
600.00
102.70
49.47
41.08
30.80
640
472
456
275
122
275
639
639
92
1
25.68
6.49
12.31
160.65
3.42
128.78
27.39
10.62
7.08
244
213
456
183
305
730
425
213
213
16.08
32
193
55.73
7
111.07
640
640
640
28.28
3.14
31.88
71
7
425
213
213
12.58
640
1.55
213
63.63
8.70
9.75
18.50
18.50
-
13.88
9.20
21.33
14.06
19.91
9.32
9.08
2.27
-
105.05
640
640
366
366
366
-
366
639
639
639
639
639
187
187
-
730
32.29
-
19.31
26.77
34.65
37.89
19.92
67.16
18.64
98.11
10.62
-
10.25
2.54
17.61
72.94
425
-
425
425
425
730
425
730
425
730
213
-
187
187
730
730
163.03
15.23
-
154
325
-
39.92
7.43
-
5.09
239
322.04
-
-
-
-
33.32
106
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.25
1.06
-
-
89
89
-
-
1.21
3.31
1.73
6.16
4.34
-
-
-
0.83
2.17
19.07
1.07
1.36
-
4.24
-
-
-
-
21.59
-
5.97
6.15
-
5.37
1.31
-
-
304
89
-
154
89
99
106
85
85
-
-
-
92
92
92
92
92
-
85
-
-
-
-
85
-
85
85
-
89
89
-
-
*During the year, the Parent Company received a recall notice from LIC for NCD Series 18 amounting to ` 600 Crore vide letter
date September 20, 2019 and December 23, 2019.
193
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020 11 (b) : Current Borrowings
Particulars
Sr
No.
Secured
1
Rupee Loan:
Working Capital Loans from banks
Term Loans from banks
Foreign Currency Loan:
External Commercial Borrowings
Total (A)
Unsecured
Rupee Loan:
1
Inter Corporate Deposits
- from Related Parties (Refer Note 24)
- Others
Total (B)
Total (A + B)
` Crore
As at
March 31, 2020
As at
March 31, 2019
548.01
1,328.88
437.02
2,313.91
550.37
1,408.86
399.42
2,358.65
204.82
22.64
227.46
392.53
101.33
493.86
2,541.37
2,852.51
Secured borrowings and assets pledged as security
Working Capital Loans from Banks are secured by way of first pari-passu charge on stock, book debts, other current assets and
additionally secured by a specific immovable property of the Parent Company located at Mumbai.
In case of Delhi Discom working capital loans is also secured by i) First pari-passu charge on all movable and immovable
properties and assets , regulatory assets, on present and future revenue of whatsoever nature and wherever arising (ii) Second
pari-passu charge on the receivable.
As at March 31, 2020, the Group has overdue of ` 431.57 Crore and ` 8.93 Crore towards the principal and interest
respectively. Further the Group has delayed payments of interest and principal to the banks as detailed below:
Name of lender
Default as at March 31, 2020
Delay in repayment during the year
Principal
Interest
Principal
Interest
Amount
(` Crore)
Maximum
days of
default
Amount
(` Crore)
Maximum
days of
default
Amount
(` Crore)
Maximum
days of
delay
Amount
(` Crore)
Maximum
days of
delay
Canara Bank
Union Bank of India
394.29
37.28
552
477
-
8.93
-
477
-
-
-
-
-
-
-
-
11(c): Trade Payables
Particulars
As at March 31, 2020
` Crore
As at March 31, 2019
Total outstanding dues to micro enterprises and small
enterprises
Total outstanding dues to other than micro enterprises
and small enterprises (Including retention payable)
Current Non- Current
Current
Non-Current
56.83
-
35.46
-
20,039.35
25.26
19,783.80
17.53
Total
20,096.18
25.26
19,819.26
17.53
194
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Disclosure requirement under MSMED Act, 2006
This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)
has been determined to the extent such parties have been identified on the basis of information available with the group and
relied upon by the auditors.
Particulars
Principal amount due to suppliers at year end
Interest accrued, due to suppliers on the above amount, and unpaid as at the year
end
Payment made to suppliers(other than interest) beyond the appointed date under
Section 16 of MSMED
Interest paid to suppliers under MSMED Act (other than Section 16)
Amount of Interest paid by the Company in terms of Section 16 of the MSMED,
along with the amount of the payment made to the supplier beyond the appointed
day during the accounting year
Amount of Interest accrued and remaining unpaid at the end of each accounting
year to suppliers
Amount of Interest due and payable for the period of delay in making the payment,
which has been paid but beyond the appointed date during the year, but without
adding the interest specified under MSMED Act
Amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the
small enterprise, for the purpose of disallowance as a deductible expenditure under
Section 23 of MSMED
As at
March 31, 2020
56.83
1.00
` Crore
As at
March 31, 2019
35.46
0.01
-
-
-
1.21
1.30
-
-
-
0.19
0.29
1.00
0.01
11(d): Other Financial Liabilities
Particulars
Security deposits
- from consumers
- from others
Current maturities of long-term debt
NHAI premium payable
Financial guarantee obligation
Interest accrued
Unpaid dividends
MTM on Derivative Financial Instrument (including
forward contract)
Creditors for capital expenditure
Employee benefits payable
Lease Liabilities
Other Payables
Total
As at March 31, 2020
` Crore
As at March 31, 2019
Current Non- Current
Current
Non-Current
1,400.60
229.01
2,765.28
9.47
0.06
-
1,260.17
258.04
1,911.33
7.82
-
-
272.31
2,206.92
274.96
2,628.02
-
123.86
-
22.90
1,348.40
14.18
-
672.19
8.21
13.98
170.72
-
-
1.81
-
-
67.61
-
650.31
16.05
-
781.00
8.20
-
131.02
-
-
0.18
-
-
-
4.37
6,894.88
2,409.73
5,291.08
2,663.29
195
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
11(e): Other Liabilities
Particulars
Advance received from customers
Service Line Contribution
Consumer Contribution for Capital works
Grant in Aid (Under Accelerated Power Development &
Reforms Program to the Government of India)
Contingencies Reserve Fund
Amount due to customers for Contract work
Other liabilities (Including statutory dues)
Total
12. Provisions
Particulars
Provision for Disputed Matters
Provision for Employee Benefits:
Provision for Leave Encashment
Provision for Gratuity (Refer Note 34)
Provision for Major Maintenance and Overhaul Expenses
Provision for Tax on Dividend
Provision for Legal Claim
Provision-Others
Total
As at March 31, 2020
Current Non- Current
1,509.68
748.67
-
448.51
1,191.22
-
13.29
-
` Crore
As at March 31, 2019
Non-Current
1,338.90
431.54
1,078.55
14.27
Current
894.52
-
-
-
815.56
1,572.68
3,136.91
-
-
3,162.70
885.64
1,760.28
3,540.44
-
226.80
3,090.06
As at March 31, 2020
Current Non- Current
160.00
-
11.01
27.10
174.34
47.62
9.52
303.49
573.08
128.84
2.28
249.71
-
-
-
540.83
` Crore
As at March 31, 2019
Non-Current
160.00
Current
-
15.38
31.15
243.52
47.62
8.23
240.14
586.04
132.27
3.62
161.07
-
-
-
456.96
Information about Provision for Disputed Matters and significant estimates
1.
2.
3.
Represents provision made for disputes in respect of power business and other corporate matters. No further information
is given as the matters are sub-judice and may jeopardize the interest of the Company.
The provision for major maintenance and overhaul expenses relates to the estimated cost of replacement/overhaul of
assets and major maintenance work. These amounts are being discounted for the purposes of measuring the provisions.
(Refer Note 1(gg)).
The Group has a program for physical verification of major fixed assets in a phased manner. Under this program, the
Group has completed physical verification of some of the fixed assets during the year. On the basis of this exercise and
further reconciliation, provision has been made towards retirement of fixed assets in the books.
Movement in Provisions:
Particulars
As at April 01, 2018
Add : Provision made
Less : Provision used / reversed
As at March 31, 2019
Add : Provision made
Less : Provision used / reversed
As at March 31, 2020
Disputed
Matters
160.00
-
-
160.00
-
-
160.00
Legal Claim
Major Maintenance &
Overhaul Expenses
Total
8.07
0.26
0.10
8.23
1.42
0.13
9.52
422.89
590.96
94.21
112.51
404.59
89.12
69.66
94.47
112.61
572.82
90.54
69.79
424.05
593.57
196
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
13.
Income and deferred taxes
13(a) Income tax expense
Particulars
Income tax Expense:
Current tax:
Current tax on profits for the year
Adjustments for income tax of prior periods
Total current tax expense
Deferred tax:
Decrease/(increase) in deferred tax assets
(Decrease)/increase in deferred tax liabilities
Total deferred tax expense/(benefit)
Income tax expense
Income tax expense is attributable to:
Continuing operations
Discontinued operations
Year ended
March 31, 2020
Year ended
March 31, 2019
` Crore
(A)
(B)
(A + B)
109.46
(0.36)
109.10
4.14
(155.00)
(159.14)
(50.04)
(50.04)
-
(50.04)
77.88
(274.11)
(196.23)
932.18
(3,203.38)
(2,271.20)
(2,467.43)
(175.54)
(2,291.89)
(2,467.43)
13(b) Reconciliation of tax expenses and the accounting profit multiplied by India’s tax rate:
Particulars
Profit from Continuing Operations before income tax expense
Profit from Discontinued Operation before income tax expense
Total profit before tax
Tax at the Indian tax rate of 34.944% (34.944%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Year ended
March 31, 2020
817.86
(3.16)
814.70
284.69
` Crore
Year ended
March 31, 2019
(5,132.55)
1,720.31
(3,412.24)
(1,192.37)
Income not considered for Tax purpose
Expenses withdrawn from general reserve and allowable for Income Tax
Expenses not allowable for tax purposes
Income Chargeable to tax at special rate
Utilisation of Losses brought forward
Corporate social responsibility expenditure not allowable for Tax purpose
Fair Valuation of Preference shares / Debentures
Effect of Change in Tax Rate
Reversal of DTL on Sale of Undertaking
Tax losses for which no deferred tax was recognized
Recognition of Deferred Tax on Tax Losses
Unrecognised MAT Credit
Previous year disallowance allowed in current year
Adjustments for current tax of prior periods
Other items
Income tax expense charged to Consolidated Statement of Profit and Loss
(Including Other Comprehensive Income)
13(c) Amounts recognised in respect of current tax / deferred tax directly in equity:
(10.43)
-
3.69
-
(299.06)
0.62
(56.50)
33.02
-
126.51
(251.83)
102.36
-
(0.36)
17.25
(50.04)
(11.95)
(368.20)
1,468.44
111.59
(110.65)
6.13
(79.54)
25.55
(2,291.89)
101.03
(205.94)
70.98
157.07
(274.11)
126.44
(2,467.43)
` Crore
Particulars
As at
March 31, 2020
As at
March 31, 2019
Amounts recognised in respect of current tax / deferred tax directly in equity
-
-
197
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
13(d) Tax losses and Tax credits
Particulars
` Crore
As at
March 31, 2020
149.33
1,353.19
As at
March 31, 2019
341.77
-
Unused Capital Gains tax losses for which no deferred tax asset has been recognised
Unused tax on business losses for which no deferred tax asset has been recognised
by Parent Company
Unused losses for which no deferred tax asset has been recognised by subsidiary
Unused Tax on depreciation losses of Parent Company
Unused Tax Credits – MAT credit entitlement - Continuing operations
4,046.26
-
333.25
-
In the absence of reasonable certainty of future profit, the Group has not recongnised deferred tax assets on unused losses.
4,951.70
26.40
249.56
1.87
- Discontinuing operations
13(e) Unrecognised temporary differences
Particulars
As at
March 31, 2020
As at
March 31, 2019
` Crore
Temporary differences relating to subsidiaries for which deferred tax liability has not
been recognized as the Parent Company is able to control the temporary difference:
Undistributed earnings
2,275.91
1,726.42
13(f) Deferred Tax Balances
The balance comprises temporary differences attributable to:
Particulars
Deferred Tax Liability on account of:
Property Plant and Equipment, Intangible Assets and Investment Property -
Carrying amounts other than on account of Fair Valuation
Fair Valuation of Property, Plant and Equipment
Impact of Effective Interest Rate on Borrowings / other financial assets / liabilities
Fair Valuation of Financial Instruments
Intangible Assets
Total Deferred Tax Liabilities
Deferred Tax Asset on account of:
Provisions
NHAI Premium Payable
Unabsorbed losses (including depreciation)
Total Deferred Tax Assets
Net Deferred Tax Liability
Deferred Tax Liabilities (net) as per Consolidated Balance Sheet
Deferred Tax Assets (net) as per Consolidated Balance Sheet
As at
March 31, 2020
As at
March 31, 2019
` Crore
37.12
525.13
60.98
19.83
852.63
1,495.69
177.47
536.37
454.59
1,168.43
327.26
569.40
242.14
33.85
551.25
69.26
7.94
944.19
1,606.49
136.25
633.56
344.36
1,114.17
492.32
681.63
189.31
Note: In line with the requirements of Ind AS 114, Regulatory Deferral Accounts, the entity presents the resulting deferred tax
asset / (liability) and the related movement in that deferred tax asset / (liability) with the related regulatory deferral account
balances and movements in those balances, instead of within that presented above in accordance with Ind AS 12 Income
Taxes. Refer Note 9 for disclosures as per Ind AS 114.
13(g) Movement in deferred tax balances:
Particulars
As At March 31, 2018
(Charged)/credited:
- to profit or loss – Continued Operations
- to profit or loss – Discontinued Operations
- to other comprehensive income
As At March 31, 2019
(Charged)/credited:
- to profit or loss – Continued Operations
- to profit or loss – Discontinued Operations
- to other comprehensive income
As At March 31, 2020
198
` Crore
Deferred Tax Liability
2,787.74
(36.90)
(2,234.30)
(24.22)
492.32
(159.14)
-
(5.92)
327.26
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
14. Revenue from operations
Particulars
Revenue from Power Business :
Year ended
March 31, 2020
Year ended
March 31, 2019
` Crore
Income from sale of power and transmission charges
16,809.62
17,198.11
Less - Tax on Sale of Electricity
Less - Pension Trust Surcharge Recovery (Refer Note 35(g))
Cross subsidy charges
Revenue from Engineering and Construction Business :
Value of contracts billed and service charges
Increase / (decrease) in Contract Assets-
Contract Assets at close
Less: Contract Assets at commencement
Net increase / (decrease) in Contract Assets
Miscellaneous income
Revenue from Infrastructure Business :
Income from Toll business
Income from Metro business
Income from Airport business
Other Operating Income :
Provisions / Liabilities written back
Others
Total revenue
587.51
528.01
15,694.10
(1.93)
15,692.17
556.61
525.73
16,115.77
(2.32)
16,113.45
1,253.67
1,016.11
677.54
576.68
100.86
11.06
576.68
389.55
187.13
18.41
1,365.59
1,221.65
1,173.66
300.42
2.51
1,476.59
7.63
327.99
335.62
1,219.72
293.24
1.79
1,514.75
119.75
309.40
429.15
18,869.97
19,279.00
14.1 Refer Note 25 on Segment Reporting for Revenue disaggregation
14.2 Performance Obligation: The aggregate value of transaction price allocated to unsatisfied or partially satisfied performance
obligation is ` 17,893.13 Crore as at March 31, 2020, (` 20,222.86 Crore as at March 31, 2019) out of which
` 2285 Crore is expected to be recognised as revenue in next year and balance thereafter. The unsatisfied or partially
satisfied performance obligations are subject to variability due to several commercial and economic factors.
14.3 Changes in balance of Contract Assets and Contract Liabilities are as under:
Contract Assets
Particulars
Opening Contract Assets including retention receivable
Increase as a result of change in the measure of progress
Transfers from contract assets recognised at the beginning of the year to receivables
Contract Assets including retention receivable
Contract Liabilities
Particulars
Opening Contract Liabilities including advance from customer
Revenue recognised during the year out of opening Contract Liabilities
Increases due to cash received/advance billing done, excluding amount recognised
as revenue during the year
Closing Contract Liabilities including advance from customer
2019-20
1,715.08
385.56
(114.43)
1,986.21
2019-20
2,556.01
(227.11)
313.68
` Crore
2018-19
1,495.16
252.53
(32.61)
1,715.08
` Crore
2018-19
2,673.24
(429.98)
322.75
2,652.58
2,566.01
199
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
14.4 Reconciliation of contracted prices with the revenue during the year:
Particulars
Opening contracted price of orders *
Add:
Fresh orders/change orders received (net)
Increase due to additional consideration recognised as per
contractual terms
Less:
Orders cancelled during the year
Closing contracted price of orders
Revenue recognised during the year
Less: Revenue out of orders completed during the year
including incidental Income
Revenue out of orders under execution at the end of the
year (I)
Revenue recognised upto previous year (from orders
pending completion at the end of the year) (II)
Balance revenue to be recognised in future viz. Order book
(IV)
Closing contracted price of orders * (I+II+III+IV)
2019-20
30,645.06
-
102.85
(1,211.87)
29,536.04
1,365.59
(144.88)
1,221.65
(230.03)
1,220.71
10,422.20
17,893.13
29,536.04
` Crore
2018-19
19,950.42
10,255.91
438.73
-
30,645.06
991.62
9,430.58
20,222.86
30,645.06
* Excluding the contracts, where E&C activities has been physically completed but the same has not been closed due
to its fulfilment of the technical parameters and pending receipt of final take over certificate from the Customer.
The above note represents reconciliation of revenue from E&C Business.
15. Other Income
Particulars
Fair Value Gains on financial instrument through FVTPL /amortised cost
Interest income from other financial assets at amortised cost
Inter corporate deposits
On Fixed Deposit with banks
Others
Dividend income
Income from Lease of Investment Property
Net gain/(loss) on sale of Investments
Gain on foreign exchange / derivative contracts (net) (including MTM on forward
contracts)
Provisions / Liabilities written back
Profit on sale of Property, Plant & Equipments
Recovery from Regulatory Assets pertaining to MPB
Miscellaneous Income*
Total
` Crore
Year ended
March 31, 2020
161.70
Year ended
March 31, 2019
217.46
974.50
37.73
42.16
0.12
67.99
1.10
142.99
116.00
7.58
418.09
273.81
2,243.77
1,243.44
35.82
116.13
0.96
60.45
18.65
196.04
258.36
0.19
700.16
65.98
2,913.64
* Recognised pursuant to arbitration award won by the Parent Company against Damodar Valley Corporation (DVC) totaling
to ` 1,250 Crore including return of Bank Guarantees of ` 354 Crore. DVC has preferred an appeal against the award before
the Hon’ble Calcutta High Court, which was listed for hearing in the first week of March 2020, however the same is postponed
due to Covid19 outbreak and the next date of hearing is awaited. Although the Parent Company is confident of recovering the
entire amount, out of prudence, the Parent Company has recognized only ` 210 Crore being the retention money which was
earlier written off.
16. Employee Benefit Expenses
Particulars
Salaries, Wages, Bonus
Contribution to Provident and Other Funds (Refer Note 34)
Gratuity Expense (Refer Note 34)
Workmen and Staff Welfare
Total
200
` Crore
Year ended
March 31, 2020
868.14
90.34
Year ended
March 31, 2019
915.42
91.40
27.47
61.06
1, 047.01
25.86
61.01
1,093.69
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
17. Finance Cost
Particulars
Interest and financing charges on financial liabilities:
Debentures
Term Loan
Foreign currency loan & buyers credit
External Commercial Borrowings and Commercial Paper
Working capital and other borrowings
Security Deposits from Consumers
Unwinding of discount on NHAI premium payable and maintenance obligations
under concession arrangements
Unwinding of discount on other financial liabilities and provisions
Other finance charges (Net of Commission on Corporate Guarantee ` 46.24 Crore)
Total
18. Other Expenses
Particulars
Year ended
March 31, 2020
Year ended
March 31, 2019
` Crore
174.21
997.30
53.82
1.78
664.22
73.06
230.10
25.32
176.30
2,396.11
150.35
925.05
37.90
17.57
1,008.03
99.48
226.86
23.37
92.45
2,581.06
` Crore
Year ended
March 31, 2020
Year ended
March 31, 2019
Consumption of stores and spares (Net of allocation to Repairs and other relevant
revenue accounts)
Rent (Refer Note 33(ii))
Repairs and Maintenance:
- Buildings
- Plant and Machinery (including Distribution Systems)
- Other Assets
Insurance
Rates and Taxes
Community Development and Environment Monitoring Expenses
Corporate Social Responsibility Expenditure
Legal and Professional Charges
Bad Debts (net of reversal of provision of expected credit loss of ` 3.13 Crore)
Directors’ Sitting fees and Commission
Miscellaneous Expenses
Loss on foreign currency translations or transactions (net)
Loss on Sale/Disposal of Property, Plant & Equipments (net)
Impairment Provision/ (reversed)
Provision for Doubtful debts / Advances / Deposits / Diminution of Investments
Provision for Expected Credit Loss
Operation and Maintenance Expenses
Loss on Sale of Investment (net of reversal of Diminution of investments)
Provision for Major Maintenance and Overhaul Expenses
Provision for Impairment/Retirement of Inventory and Property, Plant and
Equipment
164.82
4.87
17.05
157.24
57.30
26.95
51.44
0.15
8.25
120.05
8.82
0.42
583.36
12.51
32.76
-
12.03
-
180.05
8.95
17.38
9.54
87.37
4.80
7.95
241.89
35.44
20.58
35.69
0.52
19.18
164.69
4.16
0.48
594.83
8.20
39.75
18.00
102.43
11.30
254.16
-
17.86
0.31
Total
1,473.94
1,669.59
201
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
19. Earnings per share
Particulars
i.
Profit /(Loss) for the year for basic and diluted earnings per share:
From Continuing Operations (a)
From Discontinued Operations (b)
Total Profit /(Loss) for the year (c)
Profit / (Loss) before effect of withdrawal from scheme (d)
Profit /(Loss) before Rate Regulated Activities (e)
ii.
Basic and diluted earnings per share:
From Continuing Operations (a / f)
From Discontinued Operations (b / f)
from Continuing and Discontinued Operations (c / f)
before withdrawal from scheme (d / f)
Before Rate Regulated Activities (e / f)
Year ended
March 31, 2020
Year ended
March 31, 2019
` Crore
` Crore
774.33
(3.16)
771.17
912.58
(632.36)
`
29.44
(0.12)
29.32
34.70
(24.04)
(6,381.43)
3,954.61
(2,426.82)
(9,187.23)
(2,328.23)
`
(242.65)
150.37
(92.28)
(349.34)
(88.53)
iii. Weighted average number of equity shares used as the denominator in
26,29,90,000
26,29,90,000
calculating basic and diluted earnings per share (f)
20. The Parent Company is engaged in the business of providing infrastructural facilities as per Section 186 (11) read with
Schedule VI of the Act. Accordingly, disclosures under Section 186 of the Act is not applicable to the Parent Company.
21. The figures for the year ended March 31, 2019 have been regrouped and reclassified to make them comparable with those
of current year. The Assets and Liabilities as at March 31, 2019 include those pertaining to MPB, hence are not comparable
with current year’s figures. Figures in bracket indicate previous year’s figures. @ represents figures less than ` 50,000 which
have been shown at actual in brackets with @.
22. Contingent Liabilities
Particulars
` Crore
As at
March 31, 2020
As at
March 31, 2019
(i)
Claims against the Group not acknowledged as debts and under litigation
3,976.93
5,106.07
These include:-
a)
b)
c)
d)
e)
f)
Claims from suppliers
Income tax / Wealth tax claims
Indirect tax claims
Claims from consumers
Claims by MMRDA for delay in achieving milestone
Other claims
180.82
696.00
523.85
50.92
1,212.92
474.52
841.35
48.61
1,643.80
1,643.80
881.54
884.87
(ii) Corporate Guarantee of ` 1,487.67 Crore (March 31, 2019 ` 1,947 Crore)
(iii)
The Parent Company’s application for compounding in respect of its ECB of USD 360 million has been deemed by
the Reserve Bank of India (RBI) as never to have been made subsequent to the withdrawal of the compounding
application. Accordingly, there is no liability in respect of the compounding fee of `124.68 Crore earlier specified by
RBI. Subsequent to the withdrawal of the compounding application, the matter has been referred to the Enforcement
Directorate where the same is still pending.
202
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(iv)
In case of Mumbai Metro One Private Limited (MMOPL):
a)
The Municipal Corporation of Greater Mumbai (MCGM) denied the exemption to the Company from payment of
municipal taxes and octroi. The Company has filed an appeal dated April 20, 2016 in the Court of Small Causes
at Bombay for claiming exemptions for payment of municipal taxes and octroi. The company has received a
demand notice for payment of municipal taxes and octroi aggregating `115.57 Crore and `1,586.65 Crore
respectively which has been disputed by the company. The Government of Maharashtra vide its letter dated
April 17, 2018 has directed MCGM to provide concession from payment of local taxes/property tax to the
Company since it is a public transportation project. The order from MCGM is however awaited.
b)
The Ministry of Housing and Urban Affairs, Government of India had constituted a fresh Fair Fixation Committee
(FFC) on November 28, 2018 for the purpose of recommending the metro fare for MMOPL. The FFC vide its
Order dated March 11, 2019 had recommended a fare structure of ` 10 to ` 35 and had reduced the existing
fares. MMOPL has filed a Writ Petition challenging the same on June 07, 2019. Matter was heard on June 20,
2019. Hon’ble High Court of Mumbai has granted Stay on the FFC recommendations. The matter is sub-judice.
The last hearing was held on November 08, 2019. Next date for listing is likely in May 2020.
c) MMOPL has filed various claims against Mumbai Metropolitan Region Development Authority (MMRDA) on
account of damages incurred due to delays by MMRDA in handing over of unencumbered Right of Way and
land, and additional cost incurred due to various changes in design to accommodate project encumbrances. The
amount of claims filed against MMRDA aggregate `1,766.25 Crore. MMRDA has not accepted the said claims
filed by MMOPL and hence MMOPL has initiated arbitration proceedings as per the provisions of the Concession
Agreement.
(v) BRPL and BYPL had announced Special Voluntary Retirement Scheme (SVRS). Both Companies had taken a stand
that terminal benefit to SVRS retirees was the responsibility of Delhi Vidyut Board (DVB) Employees Terminal Benefits
Fund - 2002 Trust (DVB ETBF - 2002) and the amount was not payable by the companies, which however was
contended by DVB ETBF 2002. The Companies had filed a writ petition in High Court of Delhi which provided two
options. Both Companies had taken the option that DVB ETF Trust to pay the terminal benefits of the SVRS optees on
reimbursement by Discoms of ‘Additional Contribution’ required on account of premature payout by the Trust which
shall be computed by an Arbitral Tribunal of Actuaries whereas the liability to pay residual pension i.e. monthly pension
be borne by respective Companies. On August 31, 2015, the division bench of Delhi High Court dismissed the appeal
filed by the GoNCTD/Pension Trust and directed constituting Arbitral Tribunal.
Pending computation of the additional contribution, if any, by the Arbitral Tribunal of Actuaries, BRPL and BYPL have
paid leave encashment, gratuity and commuted pension amounting to ` 85.07 Crore and ` 60.53 Crore (including
interest), respectively. The interest amounting to ` 20.26 Crore and ` 14.90 Crore on the delayed payment has
also been paid during the year 2007-08. DERC has approved the aforesaid retiral pension in its Annual Revenue
Requirement (ARR) and the same has been charged to Statement of Profit and Loss.
Both GoNCTD and Pension Trust have challenged the dismissal of their respective appeals by filing Special Leave
Petitions (SLP’s) before the Hon’ble Supreme Court of India. Both the SLPs came for hearing before the Hon’ble
Supreme Court on January 02, 2017, where in both the SLPs have been admitted. These SLPs will now come up
for final hearing on their turn, as and when listed by the Court
(vi) Proportionate share of claims not acknowledged as debt and other contingent liabilities in respect of Associate and
Joint Venture Companies amounts to `5.30 Crore (`261.88 Crore).
23. Commitments
Particulars
(i)
(ii)
` Crore
As at
March 31, 2020
As at
March 31, 2019
270.84
607.35
Estimated amount of contracts remaining unexecuted on capital account
and not provided for (net off of advances)
The Parent Company has given equity/fund support/other undertakings for setting up of projects/cost overrun
in respect of various infrastructure and power projects being set up by company’s subsidiaries and associates; the
amounts of which are currently not ascertainable.
(iii) Proportionate share of Capital and other Commitments in respect of Associate and Joint Venture Companies amounts
to `1.12 Crore (`2,977.94 Crore ).
203
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
24. Related party Disclosures
As per Ind AS – 24 “Related Party Disclosures”, the Group’s related parties and transactions with them in the ordinary course
of business are disclosed below :
(a)
Parties where control exists: None
(b) Other related parties where transactions have taken place during the year:
(i)
Associates (including
Subsidiaries of Associates)
Joint Ventures
Investing Party
(ii)
(iii)
(iv) Persons having control over
investing party
(v) Enterprises over which
person described in (iv) has
significant influence
1
2
3
4
5
6
7
Reliance Power Limited (RePL) (up to January 09, 2020)
Rosa Power Supply Company Limited (ROSA) (up to January 09, 2020)
Sasan Power Limited (SPL) (up to January 09, 2020)
Vidarbha Industries Power Limited (VIPL) (up to January 09, 2020)
Chitrangi Power Private Limited (CPPL) (up to January 09, 2020)
Samalkot Power Limited (SaPoL) (up to January 09, 2020)
Rajasthan Sun Technique Energy Private Limited (RSTEPL) (up to January
09, 2020)
Dhursur Solar Power Private Limited (DSPPL) (up to January 09, 2020)
8
9
Reliance Naval and Engineering Limited (RNEL)
10 Reliance Geothermal Power Private Limited (RGPPL)
11 Metro One Operations Private Limited (MOOPL)
12 Reliance Power Holding (FZC) (up to January 09, 2020)
13 Gullfoss Enterprises Private Limited (w.e.f April 26, 2019)
Utility Powertech Limited (UPL)
Reliance Project Ventures and Management Private Limited (RPVMPL)
Shri Anil D Ambani
Reliance General Insurance Company Limited (RGI)
Reliance Capital Limited (RCap)
Reliance Reality Limited (RRL)
Reliance Securities Limited (RSL)
Reliance Infratel Limited (RITL)
Reliance Webstore Limited (RWL)
Reliance Communication Limited (RCom)
Reliance Big Entertainment Private Limited (RBEPL)
Reliance Assets Reconstruction Company Limited (RARCL)
1
2
3
4
5
6
7
8
9
10 Unlimit IOT Private Limited (UIPL)
11 Reliance Health Insurance Limited (RHIL)
12 Reliance Home Finance Limited (RHL)
13 Nippon Life Asset Management Limited (RNLAML) (formerly Reliance
Nippon Life Asset Management Limited) (upto September 27, 2019)
14 Reliance Commercial Finance Limited (RCFL)
15 GlobalCom IDC Limited (formerly Reliance IDC Limited) (GIDC)
16 Reliance Nippon Life Insurance Company Limited (RNLICL)
17 Reliance Transport and Travels Private Limited (RTTPL)
18 Reliance Broadcast Network Limited (RBNL)
19 Reliance Wealth Management Limited (RWML)
20 Reliance Innoventures Private Limited (REIL)
21 Reliance Power Limited (RePL) (w.e.f .January 09, 2020)
22 Rosa Power Supply Company Limited (ROSA) (w.e.f. January 09, 2020)
23 Sasan Power Limited (SPL) (w.e.f. January 09, 2020)
24 Vidarbha Industries Power Limited (VIPL) (w.e.f .January 09, 2020)
25 Chitrangi Power Private Limited (CPPL) (w.e.f. January 09, 2020)
26 Samalkot Power Limited (SaPoL) (w.e.f .January 09, 2020)
27 Rajasthan Sun Technique Energy Private Limited (RSTEPL) (w.e.f. January
09, 2020)
28 Dhursur Solar Power Private Limited (DSPPL) (w.e.f. January 09, 2020)
29 Reliance Power Holding (FZC) (w.e.f. January 09, 2020)
30 Reliance Capital Advisory Services Limited (RCASL)
204
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(c) Details of transactions during the year and closing balances as at the end of the year:
Particulars
Year
Investing party,
Associates and
Joint Ventures
` Crore
Enterprises over
which person
described in
(iv) above,
has significant
influence
(a)
(b)
Consolidated Statement of Profit and Loss heads:
(I)
Income:
(i)
Revenue from Power business
(ii)
Gross revenue from E&C business
(iii)
Other Operating Revenue
(iv)
Dividend received
(v)
Interest earned
(vi)
(vii)
Other Income ( including Income
from Investment Property)
Provision written back
(II)
Expenses:
(i)
Purchase of Power (Including Open
Access Charges - Net of Sales)
Purchase / Services of other items
on revenue account
Dividend Paid
(ii)
(iii)
(iv)
Interest Paid
Balance Sheet Heads (Closing Balances):
(i)
Trade payables, Advances received and
other liabilities for receiving of services on
revenue and capital account
Inter Corporate Deposit taken
(ii)
(iii)
Investment
(iv)
Inter Corporate Deposit (ICD) given
(v)
(vi)
Interest receivable on Investments and
Deposits
Trade Receivables, Advance given and other
receivables for rendering services
(vii) Other Receivable
(viii)
Interest Payable
(c)
Guarantees and Collaterals (Closing balances):
Guarantees and Collaterals
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
-
-
3.24
19.45
32.42
-
1.58
1.89
79.97
292.26
4.94
5.86
-
-
354.20
446.38
4.09
76.62
-
100.84
12.18
19.95
2.71
2,220.14
-
217.53
32.24
6,940.75
-
1,104.88
-
115.15
5.96
2,515.34
0.17
526.11
-
37.37
7.56
7.52
-
-
-
-
-
19.98
17.53
54.42
52.68
5.15
-
131.11
-
16.87
14.74
-
19.35
24.81
24.57
1,538.43
23.64
204.82
175.00
44.79
-
752.90
-
99.93
-
2,754.45
53.47
-
0.01
28.98
5.36
-
1,083.75
5,728.67
1,548.74*
205
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Particulars
Year
Investing party,
Associates and
Joint Ventures
(d)
Transactions during the year:
(i)
Guarantees and Collaterals provided earlier-
expired/encashed/surrendered
Guarantees and Collaterals provided
(ii)
(iii)
ICD Given to
(iv)
ICD Returned by
(v)
Recoverable Expenses:-
incurred for related parties
(vi)
ICD Taken from
(vii)
ICD Repaid by / Assigned
(viii)
ICD written off
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
905.90
122.15
-
905.90
92.96
2,328.04
447.96**
803.66
-
0.01
12.81
27.53
190.00
-
-
-
` Crore
Enterprises over
which person
described in
(iv) above,
has significant
influence
-
-
4,048.87*
1,548.50*
-
-
-
12.15
-
-
213.62
-
224.15^
25.00
-
210.85
* net of Corporate Guarantee of ` 286.90 Crore.
**include ICD of ` 412 Crore receivable from RPower assigned to one of its Subsidiary Company against payable by
the Parent Company through an assignment agreement.
^ include ICD of ` 175 Crore assigned to RCASL by RNLAML.
(d) Key Management Personnel (KMP) and details of transactions with KMP:
Name
Category
Years
Remuneration* Dividend
Shri Anil D Ambani
Chairman
Promoter, Non-executive and
Non- Independent director
2019-20
2018-19
Shri Lalit Jalan
Shri Punit Garg
Chief Executive Officer
(upto April 06, 2019)
Executive Director and
Chief Executive Officer
(w.e.f. April 06, 2019)
Shri Sridhar Narasimhan Chief Financial Officer
Shri Anil C Shah
Shri Paresh Rathod
Company Secretary
(upto August 15, 2019)
Company Secretary
(w.e.f. August 16, 2019)
Shri Anmol Anil Ambani Son of Shri Anil D Ambani
Ms Shruti Garg
Daughter of Shri Punit Garg
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
Paid
-
-
-
0.14
3.50
2.17*
2.36*
-
1.64*
1.77*
1.06
0.09*
0.39*
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Commission
& Sitting Fees
0.02
0.04
` Crore
Sale of
Assets
-
-
-
-
-
-
-
-
-
-
-
-
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.30
-
*Remuneration does not include post-employment benefits, as they are determined on an actuarial basis for the
Company as a whole.
206
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(e) Details of Material Transactions with Related Party
(i) Balance sheet heads (Closing balance)
As at March 31, 2020
Trade Receivables, Advances given and other receivables for rendering services SaPoL ` 2,678.34 Crore.
As at March 31, 2018
Investment in Equity of RePL ` 5,469.82 Crore. Trade Receivables, Advances given and other receivables for
rendering services SaPoL ` 2,490.27 Crore.
Note:
1)
2)
The above disclosure does not include transactions with/as public utility service providers, viz, electricity,
telecommunications etc. in the normal course of business.
Transactions with Related Party which are in excess of 10% of the Total Revenue (including regulatory
Income) of the Group are considered as Material Related Party Transactions.
25. Segment information
(a) Description of segments and principal activities
The Group has identified three business segments as reportable viz. ‘Power’, ‘Engineering and Construction’ (E&C) and
‘Infrastructure’. Business segments have been identified as reportable segments based on how the Chief Operating
Decision Maker (CODM) examines the Company’s performance both from a product and geographic perspective. The
inter segment pricing is effected at cost. Segment accounting policies are in line with the accounting policies of the
Group.
The Power segment is engaged in generation, transmission and distribution of electrical power at various locations.
The Parent Company operates a 220 MW Combined Cycle Power Plant at Samalkot, a 48 MW Combined Cycle
Power Plant at Mormugao, a 9.39 MW Wind-farm at Chitradurga. BRPL and BYPL distribute the power in the city of
Delhi. The Group supplies power to residential, industrial, commercial and other consumers. BKPL operates a 165 MW
combined cycle power plant at Kochi. The Group also transmits power through its transmission networks in the States
of Himachal Pradesh. The segment also includes operations from trading of power.
E&C segment of Parent Company renders comprehensive value added services in construction, erection, commissioning
and contracting.
Infrastructure segment includes businesses with respect to development, operation and maintenance of toll roads,
metro rail transit system and airports.
(b) Geographical Segments: All the operations are mainly confined within India. There are no material earnings from outside
India. As such there are no reportable geographical segments.
(c)
Segment Revenue and Result
Sales between segments are carried out at arm’s length and are eliminated on consolidation. The segment revenue is
measured in the same way as in the Consolidated Statement of Profit and Loss. The expenses and income that are not
directly attributable to any business segment are shown as unallocable income (net of unallocable expenses). Interest
income and finance cost (including those on concession arrangements i.e. income on concession financial receivables,
interest cost on unwinding of NHAI premium) are not allocated to segments, as this type of activity is driven by the
central treasury function, which manages the cash position of the Group.
(d)
Segment Assets
Segment assets are measured in the same way as in the Consolidated Financial Statements. These assets are allocated
based on the operations of the segment and the physical location of the asset. Investments & derivative financial
instruments held by the Group are not considered to be segment assets but are managed by the treasury function.
(e) Segment Liabilities
Segment liabilities are measured in the same way as in the Consolidated Financial Statements. These liabilities are
allocated based on the operations of the segment.
The Group’s borrowings and derivative financial instruments are not considered to be segment liabilities, but are managed
by the treasury function.
(f)
Information about Major Customer
No single customer represents 10% or more of the group’s total revenue for the years ended March 31, 2020 and
March 31,2019.
207
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Segment Information:
Particulars
Continuing Operations
Revenue:
Total segment revenue
Less : Inter Segment revenue
Revenue from external customers
Less: Regulatory Income/(expenses)
Revenue from Operations as per Consolidated
Statement of Profit and Loss
Result
Segment Result
Finance Cost
Late Payment Surcharge
Interest Income including fair valuation of
financial instruments
Exceptional Item
Other un-allocable Income net of
expenditure
Net Profit /(Loss) before Tax, Share of Profit
in Associates, Joint Ventures
Less : Tax Expenses
Add : Share of Profit / (Loss) in Associates
and Joint Ventures (net)
Less : Non-controlling Interest
Profit / (Loss) after tax from Continuing
Operations
(Loss)/Profit after tax from Discontinued
Operations
Profit / (Loss) for the year
Power*
Year ended March 31, 2020
Infrastructure
E&C
Total
Power*
Year ended March 31, 2019
Infrastructure
E&C
16,299.57
-
16,299.57
1,329.44
-
1,329.44
1,446.74
-
1,446.74
2,488.82
182.89
471.52
17,336.41
-
17,336.41
1,622.79
-
1,622.79
1,524.29
-
1,524.29
2,879.76
353.07
485.10
20,483.49
-
20,483.49
1,403.52
19,079.97
3,717.93
(2,396.11)
(1,967.10)
1,216.08
(126.00)
373.06
817.86
(50.88)
42.85
137.26
774.33
(3.16)
771.17
` Crore
Total
19,075.75
-
19,075.75
(98.59)
19,174.34
3,143.23
(2,581.06)
(1,890.79)
1,612.84
(6,065.06)
648.29
(5,132.55)
(238.14)
(1,382.84)
104.18
(6,381.43)
3,954.61
(2,426.82)
0.11
37.64
-
-
219.27
612.27
-
-
881.31
663.06
18.00
18.32
1.14
45.03
-
-
485.97
549.01
-
-
Capital Expenditure
Depreciation
Provision /(Reversal) of Impairment loss
Non cash expenses other than depreciation
(Pertaining to segment only)
*Total segment revenue includes Regulatory Income
921.87
705.99
131.54
41.46
Particulars
Segment Assets:
Power
Engineering and Construction Business
Infrastructure
Total Segment Assets
Unallocated Assets
Total Assets of Continuing Operations
Assets of Discontinued Operations
Total Assets
Segment Liabilities:
Power
Engineering and Construction Business
Infrastructure
Total Segment Liabilities
Unallocated Liabilities (Including Non-controlling Interest)
Total Liabilities of Continuing Operations
Liabilities of Discontinued Operations
Total Liabilities
208
As at
March 31, 2020
As at
March 31, 2019
` Crore
29,334.79
6,135.45
17,896.55
53,366.79
10, 089.08
63,455.87
1,646.93
65,102.80
22,055.08
5,087.28
4,569.36
31,711.72
22,309.99
54,021.71
1,288.72
55,310.43
27,720.62
5,337.31
19,235.33
52,293.26
16,089.90
68,383.16
-
68,383.16
20,983.40
4,666.74
4,979.72
30,629.86
23,577.56
54,207.42
-
54,207.42
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
26. Scheme of Amalgamation of Reliance Infraprojects Limited ( RInfl) with the Parent Company
The Hon’ble High Court of Judicature of Bombay had sanctioned the Scheme of Amalgamation of Reliance Infraprojects
Limited (RInfl) with the Parent Company on March 30, 2011 with the appointed date being April 01, 2010. As per the clause
2.3.7 of the Scheme, the Parent Company, as determined by its Board of Directors, is permitted to adjust foreign exchange
/ hedging / derivative contract losses / gains debited / credited in the Statement of Profit and Loss by a corresponding
withdrawal from or credit to General Reserve.
Pursuant to the option exercised under the above Scheme, net foreign exchange gain of ` 141.41 Crore for the year ended
March 31, 2020 (Net Gain of ` 192.24 Crore for the year ended March 31, 2019) has been credited to the Consolidated
Statement of Profit and Loss and an equivalent amount has been transferred to General Reserve. The Parent Company has
been legally advised that crediting and debiting of the said amount in Statement of Profit and Loss is in accordance with
Schedule III to the Act. Had such transfer not been done, the Profit before tax for year ended March 31, 2020 would have
been higher and General Reserve would have been lower by respective amount. The treatment prescribed under the Scheme
override the relevant provisions of Ind AS 1: “Presentation of Financial Statements”.
27.
Investment in Delhi Airport Metro Express Private Limited
Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of the Parent Company, had terminated the Concession
Agreement with Delhi Metro Rail Corporation (DMRC) for the Delhi Airport Metro Line Project (Project) and the operations
were taken over by DMRC with effect from July 1, 2013. As per the terms of the Concession Agreement, DMRC is liable to
pay DAMEPL a Termination Payment. The matter was referred to arbitration tribunal and vide order dated May 11, 2017
DAMEPL was granted arbitration award of ` 4,662.59 Crore (on the date of award). DMRC preferred an appeal against the
Arbitration award before the Hon’ble Delhi High Court. The Single Judge Hon’ble Delhi High Court vide order dated March 06,
2018 upheld the arbitration award.
The Hon’ble Delhi High Court also passed an order on March 23, 2018 directing DMRC to pay ` 306 crore as an immediate
interim relief to DAMEPL. DMRC has preferred an appeal against the order of the single judge before the division bench of
the Hon’ble Delhi High Court. However it was set aside by the Division Bench of Hon’ble Delhi High Court vide it’s Judgement
dated January 15, 2019. DAMEPL has filed Special Leave Petition (SLP) before the Hon’ble Supreme Court against the said
Judgement of Division Bench of Hon’ble Delhi High Court. Hon’ble Supreme Court, while hearing the Interlocutory Application
seeking interim relief, on April 22, 2019 has directed that DAMEPL’s accounts shall not be declared as NPA till further orders
and directed listing of the SLP for hearing on July 22, 2019. Later, the hearing could not take place due to various reasons.
The next hearing to take place sometime after the present COVID-19 lockdown ends and courts reopen. Based on the facts
of the case and the applicable law, DAMEPL is confident of succeeding in the Hon’ble Supreme Court. In view of the above,
pending outcome of SLP before the Hon’ble Supreme Court, DAMEPL has continued to prepare the financial statements on
going concern basis.
28. The lack of new orders, losses in the operations, erosion of net worth and calling back of loans by secured lenders has resulted
into financial constraints on Reliance Naval and Engineering Limited (RNaval), an associate of the Parent Company. Hon’ble
National Company Law Tribunal (NCLT), Ahmedabad bench vide its order dated January 15, 2020 has initiated Corporate
Insolvency Resolution Process and appointed Interim Resolution Professional (IRP) under Insolvency and Bankruptcy Code,
2016 (IBC). Since the entire investment in RNaval has been written off in previous year, there is be no impact of RNaval’s
account on Group’s financial results during the year ended March 31, 2020.
29. Certain subsidiaries and associates have continued to prepare the financial statements on a going concern basis. The details thereof
together with the reasons for the going concern basis of preparation of the respective financial statements are summarised below
on the basis of the related disclosures made in the separate financial statements of such subsidiaries and associates:
a.
b.
In respect of Mumbai Metro One Private Limited (MMOPL), a subsidiary of the Parent Company, the net worth has
eroded and as at the year end, its current liabilities exceeded its current assets. MMOPL is taking a number of steps
to improve overall commercial viability which will result in an improvement in cash flows and enable the Company to
meet its financial obligations. It has shown year-on-year growth in passenger traffic and the revenues of the Company
have been sufficient to recover its operating costs and the EBITA (Earnings before Interest, Tax and Amortization) has
been positive since commencement of operations. Additionally, the overall infrastructure facility has a long useful life
and the remaining period of concession is approximately 25 years. MMOPL is also in active discussion with its bankers
for restructuring of their loans. The Lenders of MMOPL have decided to implement the resolution plan submitted by
MMOPL and lead bank has already sanctioned the same and other lenders are in the process of obtaining necessary
approvals. The Parent Company has confirmed to provide necessary support to enable MMOPL to operate as a going
concern and accordingly, the financial statements of MMOPL have been prepared on a going concern basis.
In case of GF Toll Road Private Limited (GFTR), a wholly owned subsidiary of the Parent Company, due to its inability to
pay the overdue amount of Rupee Term Loan installments and have been classified as a Non Performing Assets (NPA)
by the consortium lenders. The consortium lenders have stopped charging monthly interest amount with effect from
the date of classifying the account as NPA. However, GFTR has been regular in paying the monthly interest amount
on accrual basis. GFTR is under discussion with the consortium lenders and has proposed a Resolution Plan (RP). The
Lead Lender and the consortium are in the process of appointing Techno Economic Viability consultant for presenting
RP to the consortium. In view of the above, in spite of the Loan account being classified as NPA by the lenders and the
ongoing RP, the management of GFTR has continued to be prepared the financial statements as a ‘Going Concern’.
209
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
c.
d.
In case of TK Toll Road Private Limited (TKTR) a wholly owned subsidiary of the Parent Company, as at March 31,
2020, the current liabilities of the TKTR have exceeded its current assets. TKTR is undertaking a number of steps which
will result in an improvement in cash flows and enable TKTR to meet its financial obligations. There has also been
improvement in the revenues of TKTR and such revenues have been sufficient to recover the operating costs and the
EBITA (Earnings before Interest, Tax & Amortisation) has been positive since the commencement of the operations.
Additionally, it enjoys long concession period extending upto FY 2038 and the current cash flow issues have occurred
due to mismatch in the repayment schedule vis a vis the concession period. TKTR is also in advanced stages of discussion
with its lenders for restructuring of their loans and is confident that the restructuring plan would be approved. Further it
has filed arbitration claims worth ` 1,117.00 Crore, and is confident of favourable outcome, which will further improve
the financial position of the TKTR. Accordingly, notwithstanding the dependence on above said uncertain events, TKTR
continues to prepare the financial statements on a going concern basis.
In case of TD Toll Road Private Limited (“TDTR”) a wholly owned subsidiary of the Parent Company, as at March 31,
2020, the current liabilities of TDTR have exceeded its current assets. TDTR is undertaking a number of steps which
will result in an improvement in cash flows and enable TDTR to meet its financial obligations. There has also been
improvement in the revenues of TDTR and such revenues have been sufficient to recover the operating costs and the
EBITA (Earnings before Interest, Tax & Amortisation) has been positive since the commencement of the operations.
Additionally, it enjoys long concession period extending upto FY 2038 and the current cash flow issues have occurred
due to mismatch in the repayment schedule vis a vis the concession period. It is also in advanced stages of discussion
with its lenders for restructuring of their loans and is confident that the restructuring plan would be approved. Further it
has won arbitration claim worth `158.45 Crore, which will further improve the financial position of the TDTR. Pursuant
thereto one of the lender applied for the insolvency petition under the IBC against TDTR before the Hon’ble NCLT,
Mumbai Bench, for non payment of the interest and the installments payable under the Rupee Term Loan Agreement.
The Hon’ble NCLT vide its order dated November 25, 2019 admitted the application and appointed the IRP. The IRP
took over the affairs of TDTR from December 05, 2019. Aggrieved by the order of the NCLT Mumbai Bench, TDTR
moved an appeal before the Hon’ble National Company Law Appellate Tribunal (NCLAT) praying to set aside the
impugned order and stay the proceedings. The matter is currently reserved for orders. Accordingly, notwithstanding the
dependence on above said uncertain events, TDTR continues to prepare the financial statements on a going concern
basis.
e.
Notwithstanding the dependence on these material uncertain events including achievement of debt resolution and
restructuring of loans, time bound monetisation of assets as well as favourable and timely outcome of various claims,
the Group is confident that such cash flows would enable it to service its debt, realise its assets and discharge its
liabilities, including devolvement of any guarantees / support to certain entities including the subsidiaries and associates
in the normal course of its business. Accordingly, the consolidated financial statements of the Group have been prepared
on a going concern basis.
30. Exceptional Items:
Particulars
Impairment of Property, Plant and Equipments
Write off / Impairment/ loss on sale of Investments
Provision/write-off/Loss on Sale of loans given and w/off of interest accrued thereon
Loss on invocation of Pledged Shares
Provision for diminution in value of investments
Expenses/ (Income)
Less: Withdrawn from General Reserve
Exceptional Items (net)
Year ended
March 31, 2020
126.00
-
-
-
-
` Crore
Year ended
March 31, 2019
-
1,850.23
8,410.99
1,741.24
678.62
126.00
12,681.08
-
126.00
6,616.02
6,065.06
BSES Kerala Power Limited (BKPL), a wholly owned subsidiary of the Parent Company, carried out impairment testing of
Property, Plant and Equipments and other assets considering overall situation and accordingly has provided for the impairment
of ` 126 Crore in terms of IndAS 36 on Impairment of Assets to the Consolidated Statement of Profit and Loss for the year
ended March 31, 2020.
In terms of the Scheme of amalgamation of Reliance Cement Works Private Limited with Western Region Transmission
(Maharashtra) Private Limited (WRTM) wholly owned subsidiary of the Parent Company, which was subsequently amalgamated
with the Parent Company w.e.f. April 1, 2013, during the year ended March 31, 2019 an amount of ` 6,616.02 Crore has
been withdrawn from General Reserve and credited to the Consolidated Statement of Profit and Loss against the exceptional
items of ` 12,681.08 Crore as stated above which was debited to the Consolidated Statement of Profit and Loss. Had such
withdrawal not been done, the Loss before tax for the year ended March 31, 2019 would have been higher by ` 6,616.02
Crore and General Reserve would have been higher by an equivalent amount. The treatment prescribed under the Scheme
overrides the relevant provisions of IndAS 1” Presentation of Financial Statements”.
210
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
31. The Reliance Group of companies of which the Parent Company is a part, supported an independent company in which the
Parent Company holds less than 2% of equity shares (“EPC Company”) to inter alia undertake contracts and assignments for
the large number of varied projects in the fields of Power (Thermal, Hydro and Nuclear), Roads, Cement, Telecom, Metro Rail,
etc. which were proposed and/or under development by the Reliance Group. To this end along with other companies of the
Reliance Group the Parent Company funded EPC Company by way of project advances, subscription to Debentures and Inter
corporate Deposits. The total exposure of the Parent Company as on March 31, 2020 was ` 8,066.08 Crore net of provision
of ` 3,972.17 Crore and the Parent Company has also provided corporate guarantees aggregating of ` 1,775 Crore.
The activities of EPC Company have been impacted by the reduced project activities of the companies of the Reliance Group.
While the Parent Company is evaluating the nature of relationship, if any, with the independent EPC Company, based on the
analysis carried out in earlier years, the EPC Company has not been treated as related party.
Given the huge opportunity in the EPC field particularly considering the Government of India’s thrust on infrastructure sector
coupled with increasing project and EPC activities of the Reliance Group, the EPC Company with its experience will be able to
achieve substantial project activities in excess of its current levels, thus enabling the EPC Company to meet its obligations. The
Parent Company is reasonably confident that the provision will be adequate to deal with any contingency relating to recovery
from the EPC Company. During the year, the Parent Company has provided corporate guarantees of ` 4,895.87 Crore on
behalf of certain companies towards their borrowings. As per the reasonable estimate of the management of the Parent
Company, it does not expect any obligation against the above guarantee amount.
32.
(a) Standby Charges (Parent Company) :
In the matter of Stand by Charges with the Tata Power Company Limited (TPC) in respect of erstwhile Mumbai Power
Business, the Hon’ble Supreme Court has dismissed the appeal filed by TPC vide Order dated May 2, 2019 and vide
its order dated August 20, 2019 also directed the TPC pay an amount of ` 505.74 Crore to Adani Electricity Mumbai
Limited (AEML), accordingly the AEML has received and amount of ` 513.39 Crore (including Interest of ` 7.65 Crore),
which was adjusted against the amounts payable by the Parent Company to AEML. The Parent Company has recognised
income of ` 418.09 Crore (net of earlier receivable) for the financial year 2019-20 in respect of above order.
(b) Take or Pay and Additional Energy Charges (Parent Company) :
Pursuant to the order passed by MERC dated December 12, 2007, in case No. 7 of 2002, TPC has claimed an amount
of ` 323.87 Crore towards the following: Pursuant Pursuant to the order passed by the MERC dated December 12,
2007, in case No. 7 of 2002, TPC has claimed an amount of ` 323.87 Crore towards the following:
(a) Difference in the energy charge for energy supplied by TPC at 220 kV interconnection for the period March 2001
to May 2004 along with interest at 24% per annum up to December 31, 2007, and
(b) Minimum offtake charges for energy for the years 1998-99 to 1999-2000 along with interest at 24% per
annum up to December 31, 2007.
In an appeal filed by the Company, ATE held that the amount in the matter (a) above is payable by the Company along
with interest at State Bank of India prime lending rate for short term borrowings. The Company has filed an appeal
against the said order before the Supreme Court, which while admitting the appeal, has restrained TPC from taking
any coercive action in respect of the matter stated in (a) above subject to Company depositing ` 25 Crores and giving
Bank Guarantee for Balance amount. The Hon’ble Supreme Court by its Judgment and Order dated 23rd July 2019 said
that no interference is required in the impugned judgment except change of the rate of interest to 9% with respect to
recovery of payment due with respect to tariff @ 2.09, with the aforesaid modification, the appeal disposed off. The
liability arising out of this has been paid by AEML.
The matter (b) was remanded to MERC for redetermination. MERC by its Order dated 22 January 2020 in MA No. 39
of 2019 in Case No. 7 of 2007 held that Energy drawn at 220 KV interconnection point and impact of change-over
consumers shall be considered while computing bills under ‘Take or Pay’ by TPC. AEML is required to pay such amount
to TPC within one month without any interest. Further, such amount received for FY 1998 - 1999 and FY 1999 -
2000 shall be shared amongst the Distribution Licensees who were taking supply from TPC in the ratio of quantum of
energy supplied.TPC has claimed ` 57.05 Cr payable by AEML under the Take or Pay obligation and has not considered
the netting of the amount which TPC has to share with Company, as Company was also a distribution licensee at the
relevant time taking supply from TPC during the period FY 1998 - 1999 and FY 1999 – 2000, claim expected to
reduce by 40%. The Company is in the process of reconciliation of the amount claimed by TPC, post ascertainment
same would be paid by AEML to TPC. Further, any amount crystallized is to be recovered from consumers as per the
extant regulations through FAC and there is no liability on the Parent Company.
33. Disclosure as required under Ind AS–116 –Lease is given below:
The Group has adopted Ind AS 116, effective annual reporting period beginning on April 1, 2019 and applied the standard
to its leases, retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial
application without making any adjustment to opening balance of retained earnings. The adoption of the standard did not have
any material impact on the Consolidated Financial Statement of the Group.
211
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(i) Assets given on operating lease
The Group has given following properties under operating lease arrangements:
MMOPL has provided space on operating lease for a period from 1 – 15 years with a non-cancellable period at the
beginning of the agreement ranging from 1 – 5 years.
Such assets are reported under property, plant and equipment. Lease income from operating leases is not straight-
lined and recorded as per the contractual terms as the lease rentals are structured to compensate for expected general
inflation.
The following is the summary of future minimum lease rental receivable under non cancellable operating lease
arrangement entered into by the Group
Operating leases: future minimum lease receipts under non¬ cancellable leases
Particulars
- Not later than one year
` Crore
As at
March 31, 2020
As at
March 31, 2019
4.35
4.24
- Later than one year and not later than five years
7.32
3.35
- Later than five years
(ii) Assets taken on Operating Lease:
5.46
-
Disclosure as required under Ind AS - 17 “Accounting for Leases” is given below :
The Group has entered into cancellable / non-cancellable leasing agreement for office, residential and warehouse
premises renewable by mutual consent on mutually agreeable terms. The Group has accounted ` 4.07 Crore as lease
rental for the financial year 2019-20 (` 4.80 Crore for the financial year 2018-19).
34. Disclosure under Ind AS 19 “Employee Benefits”:
Post-employment obligations
Defined contribution plans
The Group has following defined contribution plans:
(i)
(ii)
(iii)
Provident fund
Superannuation fund
State defined contribution plans
- Employer’s contribution to Employees’ state insurance
- Employers’ Contribution to Employees’ Pension Scheme 1995
The provident fund and the state defined contribution plan are operated by the regional provident fund commissioner and the
superannuation fund is administered by the Trustees of respective schemes of the companies. Under the schemes, respective
companies are required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the
benefits. These funds are recognized by the Income tax authorities. The obligation of the Group is limited to the amount
contributed and it has no further contractual nor any constructive obligation. However in case of employees of erstwhile DVB
(presently employees of BRPL and BYPL) in accordance with the stipulation made by GoNCTD, in its notification dated January
16, 2001, the contributions on account of the general provident fund, pension, gratuity and earned leave as per the Financial
Rules and Service Rules applicable in respect of the employees of the erstwhile DVB, is accounted for on due basis and are
paid to the DVB -ETBF 2002.
The Group has recognised the following amounts as expense in the Consolidated Financial Statements for the year:
Particulars
Contribution to Provident Fund
Contribution to Employees Superannuation Fund
Contribution to Employees Pension Scheme
Contribution to National Pension Scheme
(* includes ` 0.03 Crore from Discontinued Operations of KMTR).
Year ended
March 31, 2020
Year ended
March 31, 2019*
` Crore
17.38
2.28
54.92
3.94
17.08
2.62
55.45
3.98
212
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Defined benefit plans
(i) Provident Fund (Applicable to certain Employees):
The benefit involving employee established provident funds, which require interest shortfall to be recompensated are
to be considered as defined benefit plans. As per the Audited Accounts of Provident Fund Trust maintained by the
respective Company, the shortfall arising in meeting the stipulated interest liability, if any, gets duly provided for.
(ii) Gratuity
The Group operates a gratuity plan administered by various insurance companies. Every employee is entitled to a benefit
equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act,
1972 or Company scheme whichever is beneficial. The same is payable at the time of separation from the Company or
retirement, whichever is earlier. The benefits vest after five years of continuous service.
Particulars
Assumptions :
Expected Return on Plan Assets
Rate of Discounting
Rate of Salary Increase
Rate of Employee Turnover
Mortality Rate during Employment
Mortality Rate after Employment
Change in the Present Value Of Defined Benefit Obligation
Present value of Benefit Obligation at the beginning of the year
Liability Transferred Out
Liability Transferred In
Interest Cost
Current Service Cost
Benefit Paid Directly by the Employer
Benefit Paid From the Fund
Actuarial Losses on Obligation- Due to Change in Financial
Assumptions
Actuarial (Gain)/Losses on Obligation- Due to Change in
Demographic Assumptions
Actuarial Losses on Obligation-Due to Experience
Present Value of Benefit Obligation at the End of the year
Change in the Fair Value of Plan Assets
Fair Value of Plan Asset at the beginning of the year
Asset Transferred In/Out
Asset Transferred Out/Divestment
Interest Income
Benefit Paid From the Fund
Benefit Paid Directly by the Employer
Contribution by the Employer
Return on Plan Assets Excluding Interest Income #
Actuarial Losses - Due to Experience
Fair Value of Plan Asset at the End of the year
2019-20
` Crore
2018-19
5.24% to 7.50%
5.97% to 7.54%
5.45% to 6.80%
7.48% to 7.66%
3.00% to 10.00%
5.00% to 9.00%
4.00% to 10.00% 4.00% to 10.00%
Indian Assured Lives
Mortality (2006-08)
Indian Assured Lives
Mortality (2006-08)
N.A.
N.A.
136.48
(1.75)
2.34
10.41
13.87
(9.75)
(6.97)
1.23
0.09
14.99
160.94
104.10
1.10
(1.21)
7.71
(2.75)
(1.44)
23.75
0.27
0.79
132.32
659.64
(570.17)
2.59
24.44
23.15
(17.58)
(2.91)
(8.80)
(2.98)
29.63
136.48
501.20
1.61
(453.95)
38.64
(2.42)
(0.62)
37.64
(20.47)
2.47
104.10
213
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Particulars
Amount Recognised in the Consolidated Balance Sheet
Present Value of Benefit Obligation at the end of the year
Fair Value of Plan Assets at the end of the year
Funded Status (Deficit)
Amount not recognized as asset (asset ceiling)
Net (Liability) Recognized in the Consolidated Balance Sheet
Expenses Recognized in the Consolidated Statement of Profit
and Loss
Current Service Cost
Net Interest Cost
Expenses Recognised
Expenses Recognised in Other Comprehensive Income (OCI)
Actuarial Losses on Obligation (net of plan assets) for the year
Return on Plan Assets Excluding Interest Income
Net Expenses for the Period Recognised in OCI (including
Discontinued Operations)
Major Categories of plan asses as a percentage of total
Insurance Fund
Prescribed Contribution For Next Year
Maturity Analysis of Project Benefit Obligation : From Fund
Projected Benefit in Future Years From Date of Reporting
Within next 12 months
Between 2 to 5 years
Beyond 6 years
Sensitivity Analysis
Present value of Defined Benefits Obligation at the end of the year
Assumptions - Discount Rate:
Sensitivity Level
2019-20
160.94
132.32
(28.62)
-
(28.62)
13.89
2.51
16.40*
15.45
0.54
15.99
100%
27.48
8.91
28.71
130.19
161.02
` Crore
2018-19
136.48
104.10
(32.38)
0.07
(32.45)
23.39
2.51
25.90^
6.18
0.92
7.10^^
100%
29.64
12.22
22.71
107.90
137.07
0.50% to 1.00%
0.50% to 1.00%
Impact on defined benefit obligation -in % increase
(1.95%) to (5.41%)
(2.78%) to (6.40%)
Impact on defined benefit obligation -in % decrease
2.06% to 6.13%
2.96% to 7.38%
Assumptions - Future Salary Increase:
Sensitivity Level
Impact on defined benefit obligation -in % increase
0.50% to 1.00%
0.50% to 1.00%
2.09% to 6.31%
2.75% to 6.85%
Impact on defined benefit obligation -in % decrease
# Includes ` 21.23 Crore for the financial year 2018-19 towards discontinued operations of MPB
* net off excess provision written back of `. 11.07 Crore included in other income
^ Includes ` 0.04 Crore from discontinued operations of KMTR
^^ Includes ` (0.06) Crore from discontinued operations of KMTR
(2.02%) to (5.67%)
(2.65%) to (6.20%)
35. Notes related to BRPL and BYPL (Delhi Discoms) (as per respective financial statements):
(a) Both the Companies have conducted physical verification of its major fixed assets as per its policies. Necessary
adjustments for retirement would be carried out after reconciliation and obtaining the approval of DERC. Accordingly, in
case of BRPL an amount of ` 30.26 Crore (` 35.32 Crore) and in case of BYPL `16.73 Crore (`12.27 Crore) is lying
under provision for retirement of fixed assets.
214
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(b) Transfer Schemes:
(i)
The amount of Consumer Security Deposit (CSD) transferred to both the companies by virtue of Part II of
Schedule E of the Transfer Scheme was ` 11 Crore in case of BRPL and ` 8 Crore in case of BYPL. The Transfer
Scheme as well as erstwhile DVB did not furnish the consumer wise details of the amount transferred to it as
CSD. Both the Companies have compiled from the consumer records the amount of CSD as on June 30, 2002,
which works out to ` 90.43 Crore in case of BRPL and ` 35.38 Crore in case of BYPL. The management of both
the Companies are of the opinion that its liability towards CSD is limited to ` 11 Crore in case of BRPL and ` 8
Crore in case of BYPL, as per the Transfer Scheme. Therefore the liability towards refund of consumer deposits in
excess of ` 11 Crore in case of BRPL and ` 8 Crore in case of BYPL and interest thereon has not been accounted
for in the books of the respective companies. They have also filed a writ petition during the year 2004-05 with
the DERC to deal with the actual amount of CSD as on the date of transfer. DERC during the year 2007-08 had
advised the GoNCTD to transfer the differential amount of deposits to BRPL and BYPL. However GoNCTD did not
abide by the advice and hence both the Companies have filed writ petition and the case is pending before High
Court of Delhi. In the last hearing held, the matter was placed in the category of ‘Rule’ matters and the case shall
get listed in due course. Pending outcome of this case and as per the instructions of DERC, the Companies has
been refunding the security deposit to DVB consumers.
(ii)
As per notification dated April 18, 2007 issued by DERC, interest @ 6% per annum is payable on CSD received
from all consumers up to August 31, 2017. With effect from September 01, 2017 the interest is provided at MCLR
(Marginal Cost of Fund Based) as notified by SBI. The MCLR rate as on April 01, 2019 is @ 8.55 %. Accordingly,
BRPL and BYPL have provided for interest amounting ` 72.69 Crore (` 63.54 Crore) and ` 40.76 Crore (` 35.94
Crore) respectively on consumer security deposit of regular consumers. The Companies are of the view that the
interest on CSD in excess of the amount as per the Transfer Scheme i.e. ` 11 Crore in case of BRPL and ` 8 Crore
in case of BYPL, would be recoverable from GoNCTD if the contention is upheld by the High Court of Delhi.
(c) NTPC and other Generators dues:
BRPL and BYPL have received a notice from NTPC Ltd. on February 1, 2014 for regulation (suspension) of power
supply due to delay in power purchase payments. Both the companies have filed a petition in the Hon’ble Supreme
Court praying for keeping the regulation notice in abeyance, giving suitable direction to DERC to provide cost reflective
tariff and to give a roadmap for liquidation of the accumulated Regulatory Assets. In the interim Order dated March
26, 2014 & May 6, 2014, the Hon’ble Supreme Court had directed both the companies to pay its current dues (w.e.f.
January 1, 2014) by May 31, 2014 failing which the generating / transmission companies may regulate supply. On
July 3, 2014 the court took note that both the companies paid 100% payment of its current dues. All contentions and
disputes were kept open to be considered later. Further, direction was made to pay the recurring amount as per earlier
Orders dated March 26, 2014 & May 6, 2014. In the meantime, an application has been filed before Hon’ble Supreme
Court seeking modification of aforesaid Orders so as to allow both the companies to pay 70% of the current dues, which
was allowed by Hon’ble SC in respect of Delhi Power Utilities on May 12, 2016.
Delhi Power Utilities had filed contempt case in January 2015 against Senior Officials of the Companies alleging non
compliance of the Supreme Court order regarding payment off the dues. No notice has been issued so far , however,
on an interim application filed by them praying for payment of outstanding dues, notice was issued in December 2015.
Thereafter, the matter was listed on few occasions but was simply adjourned. However, on May 12, 2016, the Court
directed the Company to pay 70 % of the current dues till further orders. New contempt petitions have been filed by
Delhi power utilities in November 2016 alleging non compliance of order dated May 12, 2016. No notice has been
issued so far. Thereafter, the matter was listed on various dates. In last hearing on May 02, 2018, the Hon’ble Judge
did not pronounce the judgment. Since then, both the Judges have retired. However, on April 11, 2019 new interim
application have been filed by certain power utilities in pending contempt petitions of 2015 alleging non compliance
of Supreme Court order regarding payment of current dues. On November 28, 2019, Counsel for Delhi Power Utilities
requested for early hearing of the Contempt petitions. These matters along with Writ Petitions were listed on January
7, 2020 before Hon’ble Court. The Hon’ble Court on the request of Delhi Discoms directed that, all connected matters
be tagged with Writ and Contempt Petitions. Till date no specific date of hearing has been fixed.
(d) Audit by The Comptroller and Auditor General of India:
Pursuant to the letter dated January 7, 2014 by Department of Power (GoNCTD), The Comptroller Auditor General of
India has commenced audit of all the three electricity distribution companies of Delhi w.e.f. January 27, 2014. BRPL
and BYPL (Delhi Discoms) has filed a writ petition in the Hon’ble High Court praying for staying the said audit, however,
the said prayer has been declined by the Court. Delhi discoms has filed an appeal before the Division Bench of High
Court against the said Order. Both writ petition and appeal have been tagged together along with PIL (Public Interest
Litigation) filed by United Resident Welfare Association (URWA) on the same matter. All arguments were concluded on
March 4, 2015.
In August / September, 2015, Delhi discoms filed interim applications in aforesaid appeals requesting for directions to
CAG to not share the draft audit report with any third party and the same cannot be cited or acted upon in any manner
whatsoever. CAG counsel submitted that they will take no action on the basis of the same. Further, consolidated draft
report of all discoms was furnished by CAG to Delhi discoms pursuant to direction of the Court.
215
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Another set of applications were filed seeking breakup of alleged loss etc. as stated in draft audit report and stay on Exit
Conference. The same were listed on October 1, 2015.The Court did not grant any stay on holding of Exit conference
and stated that the replies be submitted on whatever material is available to Delhi discoms and seek additional details
in the Exit conference and apprise the court on the next date of hearing ie. October 15, 2015.
On October 15, 2015, Delhi discoms apprised the Court that 1100 pages/1412 pages have been provided for the first
time at the Exit Conference held in October 2015 and time is required to respond for the same. CAG counsel stated
that this information has been shared in the past during the Audit process and therefore it is not a new information. The
Court, after hearing the parties, recorded the submission and said that similar matter in the case of Tata Power Delhi
Distribution Limited (TPDDL) is coming up on October 30, 2015. These applications along with the matter would be
listed along with Writ on October 30, 2015.
The Court has also granted the time to the Company till October 30, 2015 to respond to the documents provided at
the Exit Conference, if it so desires. The matter was listed for October 30, 2015 and Hon’ble Court has pronounced its
judgement, wherein Hon’ble court has concluded with “directions to set aside all actions taken pursuant to the January
7, 2014 order and all acts undertaken in pursuance thereof are infructuous”.
CAG, GoNCTD and URWA have filed an appeal against the Hon’ble Court judgement and the matter was listed on
January 18, 2016, wherein notices were issued. Delhi discoms have submitted their replies. Matter was last listed on July
25, 2016 and Court directed the parties to complete the pleadings.The case was slated to be heared on October 19,
2016, but it did not figure in the cause list, hence, did not get listed on that date. Last hearing was on December 07,
2016, when parties were given further four weeks to complete the pleadings . Matter was listed on various occasions
in February/ March 2017, last hearing being on March 09, 2017. The Court has reserved its order on the issue whether
it would like to hear the matter or transfer it to the constitutional bench where matter between GONCTD powers vis –a
vis LG powers was then pending. On July 03, 2017 the Bench opined that the instant appeals need not be referred to
the Constitution Bench and adjudication of the appeals should not await the outcome of the decision of the Constitution
Bench. In terms of the signed order, appeals were directed to be listed for hearing on merits. Next date of hearing is
not yet fixed.
(e)
Late Payment Surcharge on Power Purchase Overdue
Due to financial conditions of the BRPL and BYPL, they could not service dues of various Power Generators / Transmission
companies on time. Due to delays in payment, these companies are entitled to levy Late Payment Surcharge (LPSC)
on BRPL and BYPL. The LPSC is recognized by the BRPL and BYPL based on the allocation methodology as per
Power Purchase Agreements (PPA), applicable regulations of CERC/DERC and reconciliation with Power Generators
/ Transmission companies. There are differences in LPSC recognized in the books of account and amount claimed by
some of the generators / transmitters as per the reconciliation statements. These differences, amounting to ` 789.51
Crore (` 568.19 Crore) and ` 637.89 Crore (` 378.90 Crore) of BRPL and BYPL respectively, are primarily on account
of interpretation of applicable regulations of CERC/DERC or terms of PPA’s where there are no defined payment
allocation methodology.
(f) Delhi Electricity Regulatory Commission (DERC) issued its Tariff Orders on September 29, 2015 upto March 31, 2014
and on August 31, 2017 for the Financial Years 2014-15 and 2015-16 and on March 28, 2018 for the Financial Year
2016-17 and on July 31, 2019 for the Financial Year 2017-18 to two subsidiaries of the Parent Company, namely
BRPL and BYPL, whereby DERC had trued up the revenue gap with certain dis-allowances. The Delhi Discoms have
preferred appeals against the orders before Hon’ble Appellate Tribunal for Electricity (APTEL). Based on legal opinion,
the impacts of such disallowances, which are subject matter of appeal, have not been considered in the computation
of regulatory assets for the respective years.
(g) Pension Trust Surcharge:
As per DERC directives in the Tariff order dated March 28, 2018, a surcharge of 3.80% has been allowed w.e.f. April
01, 2018 (Previous year 3.70% w.e.f. September 01, 2017) towards recovery of Pension Trust surcharge of erstwhile
DVB Employees/Pensioners as recommended by GoNCTD. Accordingly Delhi Discoms are billing and collecting the
same from the consumers for onwards payment to the pension trust on monthly basis. As per DERC directive, any under
recovery/over recovery from customers shall be considered by DERC at the time of true up, therefore, no impact on
profit or loss for the period is envisaged by Delhi Discoms.
36. Notes related to RPower :
(a) During the year ended March 31, 2020, ` 3,215.77 Crore being the loss on invocation of pledge of shares of RPower
held by the Parent Company has been adjusted against the capital reserve/capital reserve on consolidation. According to
the management of the Parent Company, this is an extremely rare circumstance where even though the value of long
term strategic investment is high, the same is being disposed off at much lower value for the reasons beyond the control
of the Parent Company, thereby causing the said loss to the Parent Company. Hence, being the capital loss, the same has
been adjusted against the capital reserve/capital reserve on consolidation. Further, due to above said invocation, during the
year, investment in RPower has been reduced to 12.77% of its paid-up share capital. Accordingly in terms of Ind AS 28 on
216
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Investments in Associates , RPower ceases to be an associate of the Parent Company. Although this being strategic investment
and Parent Company continues to be promoter of the RPower, due to the invocations of the shares by the lenders for the
reasons beyond the control of the Parent Company the balance investments in RPower have been carried at fair value in
accordance with Ind AS 109 on financial instruments and valued at current market price and loss of ` 2,096.25 Crore being
the capital loss, has been adjusted against the capital reserve/capital reserve on consolidation. Had the above mentioned
treatments of loss not been debited to capital reserve and capital reserve on consolidation, the profit before tax for the year
ended March 31, 2020 would have been lower by ` 5,312.02 Crore and capital reserve and capital reserve on consolidation
in aggregate would have been higher by an equivalent amount.
(b)
The Parent Company also has net recoverable amounts aggregating to ` 2,044.50 Crore from RPower Group as at March 31,
2020. Management had performed an impairment assessment of these recoverable by considering interalia the valuations of
the underlying subsidiaries of RPower which are based on their value in use (considering discounted cash flows) and valuations
of other assets of RPower/its subsidiaries based on their fair values, which have been determined by external valuation experts
. The determination of the value in use / fair value involves significant management judgment and estimates on the various
assumptions including relating to growth rates, discount rates, terminal value, time that may be required to identify buyers,
negotiation discounts etc Accordingly, based on the assessment, impairment of said recoverable is not considered necessary
by the management.
37. The outbreak of COVID-19 epidemic has significantly impacted businesses around the world. The Government of India ordered
a nationwide lockdown, initially for 21 days which further got extended twice and now valid till May 17, 2020, to prevent
community spread of COVID-19 in India. This has resulted in significant reduction in economic activities. With respect to
operations of the Group, it has impacted its business by way of interruption in construction activities, operations of metros,
toll collections, supply chain disruption, unavailability of personnel, closure / lock down of various other facilities etc. Few of
the construction activities are already commenced albeit in a limited manner. Further, to reduce the impact on cash flows of
the group, it has availed moratorium on term loans with respect to certain subsidiaries (Delhi Discoms & selected toll road
companies) as per RBI guidelines, wherever applicable.
The Group has considered various internal and external information including assumptions relating to economic forecasts
up to the date of approval of these financials for assessing the recoverability of various receivables, which includes unbilled
receivables, investments, goodwill, contract assets and contract costs. The assumptions used by the Group have been tested
through sensitivity analysis and the Group expects to recover the carrying amount of these assets based on the current
indicators of future economic conditions. Further the Group has availed protections available to it as per various contractual
provisions to reduce the impact of COVID-19.
The aforesaid evaluation is based on projections and estimations which are dependent on future development including
government policies. Any changes due to the changes in situations / circumstances will be taken into consideration, if
necessary, as and when it crystallizes.
38. Project Status:
(a) Project Restructuring in case of CBD Tower Private Limited (CBDTPL)
CBDTPL had signed a development agreement dated May 28, 2008 with Andhra Pradesh Industrial Infrastructure
Limited (APIIC) for the development of trade tower and business district in Hyderabad, which CBDTPL, after development
intends to lease out to the intended users. To mitigate the risk of the project due to economic slowdown, recession
and uncertainty in real estate market, the Board of Directors of CBDTPL approved and submitted a plan to APIIC to
restructure the project in three categories - financial restructuring, restructuring of project development framework and
restructuring of project implementation. Material proposals approved by APIIC includes waiver of development premium
payable @12% p.a. on the unpaid balance towards cost of land up to March 31, 2012 and decrease in the rate of
interest on debentures to 2% p.a. up to March 31, 2014. APIIC also recommended appointment of an independent
third party consultant to comment on the approved restructuring proposal.
APIIC also approved certain consequential issues, like effective date being date of signing of amended agreement
and mechanism for land transfer for constructing trade tower, permitting construction of business district prior to
construction of trade tower and permitting consortium to dilute its equity from 51% to 26% three years after the
financial closure of trade tower.
Further supplementary demands have been made to APIIC and requested for continuing the waivers / concessions
until signing of amendment agreements and extension of timelines, corresponding to delay period, for all payment
and project obligations. Independent consultant submitted it’s report and recommended in favour of restructuring
including supplementary demands. A sub-committee, appointed by APIIC, approved the Independent consultant’s
recommendations. APIIC has intimated that they have agreed with the findings of the sub-committee and Independent
consultant’s recommendations.
After the bifurcation of state and creation of Telangana State, the project came under Telangana State jurisdiction. The
Government of Telegana (GoT) then constituted a Committee of Secretaries (CoS), empowering it to take final decision
on the recommendations of TSIIC Board read with consultant report.
217
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Post the presentation made on November 13, 2015 by the CBDTPL and Consultant, Chief Secretary asked CBDTPL to
formally put up a letter summarizing all the demands with reasons and the same was submitted to CoS on November
20, 2015. CoS then asked TSIIC to furnish self contained note flagging all the pending issues to be decided by CoS
which was accordingly submitted by them. TSIIC again sent a detailed self explanatory note with recommendations
to GoT for decision. Thereafter CBDTPL had a meeting with Minister (MA&UD &, IT & Industries) along with his senior
officials in July 2016 wherein he assured a favorable communication shortly. Due to delay in communication, in
December 2016 CBDTPL again had a meeting with Principal Secretary (I&C) with a request to expedite the approval
of Restructuring, which has been duly appreciated by the Minister and CoS. Immediate communication was assured.
Further the CBDTPL vide letter dated December 28, 2017, has submitted the Revised Restructuring Proposal to TSIIC,
to ensure that the viability of the project is maintained.
Further TSIIC vide letter dated June 21, 2018 asked the CBDTPL to submit the fresh proposal/commitment taking the
zero date for the project as January 01, 2019. Therefore CBDTPL has resubmitted the Proposal dated July 09, 2018
considering the effective date to be later of January 01, 2019 or the date on which both party execute the Proposal.
Further, the CBDTPL, on advise of TSIIC, revised few of the terms of the proposal and re submitted the proposal
on December 12, 2018. Further CBDTPL was advised to re submit the Revised Proposal, based on above discussed
framework, which shall be examine for approval by TSIIC / Government of Telangana.
Therefore, CBDTPL has submitted Revised Proposal, based on the above discussed framework, on February 14, 2020
and subsequent clarification on March 03, 2020. It now awaits the Proposal to be taken by TSIIC and Government of
Telangana for final decision.
In view of above substantive development on the proposal of CBDTPL for restructuring with the Government of
Telangana, CBDTPL has not made provision for (a) Development Premium of ` 339.88 Crore @ 12% p.a compounded
annually on ` 230.27 Crore balance land cost payment of module- II and (b) Interest of ` 120.99 Crore on Debentures,
both for the period from April 01, 2012 to March 31, 2020, as per the existing agreements.
(b) Project Status of NKTCL and TTCL:
i)
NKTCL and TTCL had approached Central Electricity Regulatory Commission (CERC) for allowing tariff revision and
Force Majeure due to delay in grant of clearance u/s 164 of Electricity Act (EA). CERC notified an unfavorable
order which was later challenged by NKTCL and TTCL in Appellate Tribunal for Electricity (ATE). ATE allowed the
appeal filed by Company and set aside the unfavorable CERC order. Pursuant to the ATE Order, written requests
were sent to the beneficiaries seeking (i) Re-fixation of implementation time of the Project and (ii) to increase
Tariff to the tune of 90% in TTCL and 160% in NKTCL.
Three beneficiaries have appealed against the order of ATE in the Supreme Court of India and notices are being
served on all the beneficiaries of the project for filing petition. All the petitions filed by beneficiaries have been
clubbed together by Supreme Court. The petition has been admitted and next hearing is awaited.
ii) Revocation of Licence:
CERC reopened Power Grid Corporation of India Limited’s (PGCIL) petition seeking revocation of license of NKTCL
and TTCL and transfer the project to PGCIL on cost plus model at risk and cost of Reliance Power Transmission
Limited i.e. holding company of NKTCL and TTCL. CERC issued Order on NKTCL and TTCL for compliance
of certain conditions stated in the order within a stipulated time frame or else its license would be revoked.
Based on the Order of CERC, NKTCL and TTCL filed an appeal to ATE challenging CERC Order. ATE rejected
the Implementation Agreement (IA) meant for stay but allowed the appeal. NKTCL and TTCL filed an appeal in
Supreme Court against ATE’s rejection of IA meant for stay. Based on the appeal filed by NKTCL and TTCL, the
Supreme Court has given a stay order directing no coercive action to be taken by CERC. On August 12, 2016
the Supreme Court has disposed off the appeal and directed ATE to decide on the Appeal. The ATE vide its order
dated February 01, 2019 directed to approach CERC, so that CERC may seek necessary advice from the CEA (u/s
73(n) of EA), as to whether the project is required or not. If required, CERC may also adjudicate on the monetary
compensation. NKTCL and TTCL filed a petition in CERC (40 of 2019) and an order for no coercive action against
the Bank Guarantees (BGs) against the IA has been granted by the CERC.A petition has been filed in CERC as
directed by ATE. In case of TTCL, on February 25, 2020, CERC ordered TTCL to extend the BG for a month.
In case of NKTCL, on March 12, 2020, CERC has again specifically mentioned the Consumers of NKTCL not to
encash the BG. Next Hearing was due on March 19,2020, but due to Covid -19 outbreak the hearing could not
happen. Further listing of the petition is awaited.
iii) As the approval by Ministry of Power (MoP) u/s 68 of Electricity Act 2003 to the project have already expired,
NKTCL and TTCL has filed a letter on January 14, 2014 requesting extension of the same, but MoP’s response is
still awaited. Pending the said approval, the Transmission Service Agreement (TSA) would not become operative
and implementation of the Project could not be commenced.
218
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
39.
Interests in other entities
(a) Subsidiaries
The Group’s subsidiaries at March 31, 2020 are set out below. Unless otherwise stated, they have share capital
consisting solely of equity shares that are held directly either by Parent Company or its subsidiaries / the Group and
the proportion of ownership interests held equals the voting rights held by the Group either through equity shares,
management agreement or structure of the entity. The country of incorporation or registration is also their principal
place of business.
Name of entity
Principal
activities
Place of
business/
country of
incorporation
Power generation
Power distribution
Power distribution
Power generation
Power transmission
Power transmission
BSES Rajdhani Power Limited
BSES Yamuna Power Limited
BSES Kerala Power Limited
Reliance Power Transmission Limited
Parbati Koldam Transmission Company
Limited
Metro rail concession
Mumbai Metro One Private Limited
Mumbai Metro Transport Private Limited Metro rail concession
Metro rail concession
Delhi Airport Metro Express Private
Limited
Tamil Nadu Industries Captive Power
Company Limited
Reliance Sea Link One Private Limited
(struck off w.e.f. December 16, 2019)
SU Toll Road Private Limited
TD Toll Road Private Limited
TK Toll Road Private Limited
DS Toll Road Limited
NK Toll Road Limited
GF Toll Road Private Limited
JR Toll Road Private Limited
PS Toll Road Private Limited
KM Toll Road Private Limited (Refer
Note 8 (i))
HK Toll Road Private Limited
DA Toll Road Private Limited
Nanded Airport Limited
Toll road concession
Toll road concession
Toll road concession
Toll road concession
Toll road concession
Toll road concession
Toll road concession
Toll road concession
Toll road concession
Sea link concession
Baramati Airport Limited
Latur Airport Limited
Yavatmal Airport Limited
Osmanabad Airport Limited
Reliance Airport Developers Limited
CBD Tower Private Limited
Reliance Energy Trading Limited
Toll road concession
Toll road concession
Airport Operation and
Maintenance
Airport Operation and
Maintenance
Airport Operation and
Maintenance
Airport Operation and
Maintenance
Airport Operation and
Maintenance
Airport Operation and
Maintenance
Trade tower and
business district
construction
Sale and purchase
of electricity from
exchanges, bilateral
and barter system
Controlling interest
held by the group
March
March
31, 2019
31, 2020
%
%
51.00
51.00
51.00
51.00
100.00
100.00
100.00
100.00
74.00
74.00
Non-controlling
interest
March
31, 2020
%
49.00
49.00
-
-
26.00
March
31, 2019
%
49.00
49.00
-
-
26.00
69.00
48.00
99.95
69.00
48.00
99.95
31.00
52.00
0.05
31.00
52.00
0.05
33.70
33.70
66.30
66.30
-
90.00
-
10.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.00
100.00
100.00
100.00
74.24
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.00
100.00
100.00
100.00
74.24
-
-
-
-
-
-
-
26.00
-
-
-
25.76
-
-
-
-
-
-
-
26.00
-
-
-
25.76
74.24
74.24
25.76
25.76
74.24
74.24
25.76
25.76
74.24
74.24
25.76
25.76
74.24
74.24
25.76
25.76
65.21
65.21
34.79
34.79
89.00
89.00
11.00
11.00
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
100.00
100.00
-
-
219
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Place of
business/
country of
incorporation
India
India
Controlling interest
held by the group
March
March
31, 2019
31, 2020
%
%
100.00
100.00
-
-
India
100.00
100.00
Non-controlling
interest
March
31, 2020
%
March
31, 2019
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
51.00
49.00
49.00
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
-
100.00
-
100.00
-
100.00
-
100.00
-
-
-
-
-
-
-
Name of entity
Reliance Cement Corporation Private
Limited
Reliance Electric Generation and
Supply Limited (upto August 29,
2018)
Utility Infrastructure & Works Private
Limited
Reliance Defence Systems Private
Limited
Reliance Defence Technologies Private
Limited
Reliance Defence and Aerospace
Private Limited
Reliance Defence Limited
Reliance Defence Infrastructure
Limited
Reliance SED Limited
Reliance Propulsion System Limited
Reliance Defence Systems & Tech
Limited
Reliance Helicopters Limited
Reliance Land Systems Limited
Reliance Naval Systems Limited
Reliance Unmanned Systems Limited
Reliance Aerostructure Limited
Principal
activities
Cement manufacture
Power, generation,
transmission and
distribution
Engineering,
Procurement and
Construction
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Defence systems
manufacture
Reliance Cruise and Terminals Limited Defence systems
Dassault Reliance Aerospace Limited
manufacture
Defence systems
manufacture
Reliance Aero Systems Private Limited Defence systems
North Karanpura Transmission
Company Limited
Talcher II Transmission Company
Limited
Reliance Delhi Metro Trust
Reliance Smart Cities Limited
Reliance E-Generation and
Management Private Limited
manufacture
Power transmission
Power transmission
Beneficiary Trust
Smart city
construction
Power, generation,
transmission and
distribution
220
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Name of entity
Reliance Energy Limited
Thales Reliance Defence System
Limited
Reliance Global Limited
Reliance Property Developers Private
Limited
Reliance Armaments Limited
Reliance Ammunition Limited
Reliance Velocity Limited
Principal
activities
Power generation,
operations &
maintenance of
power stations and
power trading
Defence systems
manufacture
Engineering and
Construction
Power, generation,
transmission and
distribution
Defence systems
manufacture
Defence systems
manufacture
Urban Transport
Systems
Place of
business/
country of
incorporation
India
Controlling interest
held by the group
March
March
31, 2019
31, 2020
%
%
100.00
Non-controlling
interest
March
31, 2020
%
March
31, 2019
%
100.00
-
-
India
51.00
51.00
49.00
49.00
South Korea
100.00
100.00
-
India
100.00
India
India
India
100.00
100.00
100.00
100.00
-
100.00
-
100.00
-
100.00
-
-
-
-
-
-
Significant judgment: consolidation of entities with less than 50% voting interest
The management has concluded that the Group controls certain entities, even though it holds less than half of the voting rights
of these subsidiaries. This is because these entities are designed to operate in a manner that does not regard voting rights to be
significant in managing these entities. Also these entities derive virtually all their funding from Parent Company resulting in economic
exposure coupled with ability to use the power to control the economic exposure which has allowed these entities to be assessed
as subsidiaries.
(b) Non-controlling interests (NCI)
Set out below is summarised financial information for each subsidiary that has non-controlling interests that are material to the
Group. The amounts disclosed for each material subsidiary are before inter-company eliminations and after policy difference
adjustments.
i)
Summarised balance sheet
Entities
Current
assets
Current
liabilities
Net current
assets/
(liabilities)
Non-
current
assets
Non-
current
liabilities
` Crore
Net non-
current
assets/
(liabilities)
Net assets Accumulated
NCI (after
elimination)
BSES Rajdhani Power Limited
March 31, 2020
March 31, 2019
BSES Yamuna Power Limited
March 31, 2020
March 31, 2019
Mumbai Metro One Private Limited
March 31, 2020
March 31, 2019
PS Toll Road Private Limited
March 31, 2020
March 31, 2019
1,404.03 11,206.71 (9,802.68) 15,049.08
2,539.00
12,510.08
2,707.39
1,326.62
1,490.50
10,909.75 (9,419.25)
13,916.95
2,052.71
11,864.25
2,445.00
1,198.05
691.49
9,320.31 (8,628.82) 11,460.19
1,493.53
9,966.67
1,337.84
641.20
8,785.35 (8,144.16)
10,830.37
1,547.35
9,283.01
1,138.86
655.54
558.04
72.42
3,050.82 (2,978.40)
2,753.31
242.59
2,510.73
(467.67)
(364.29)
12.07
2,866.76 (2,854.69)
2,831.72
202.57
2,629..15
(225.54)
(289.23)
55.77
51.93
345.19
(289.42)
3,434.22
1,871.90
1,562.32
1,272.90
265.97
(214.06)
3,462.44
1,901.55
1,560.89
1,346.83
50.63
69.85
221
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
ii)
Summarised Statement of Profit and Loss
Entities
BSES Rajdhani Power Limited
March 31, 2020
March 31, 2019
BSES Yamuna Power Limited
March 31, 2020
March 31, 2019
Mumbai Metro One Private Limited
March 31, 2020
March 31, 2019
PS Toll Road Private Limited
March 31, 2020
March 31, 2019
Revenue
Profit / (Loss)
for the year
Other
comprehensive
income
Total
comprehensive
income
Profit / (Loss)
allocated to
NCI
11,127.57
10,335.38
6,078.59
5,908.81
336.64
322.33
334.63
352.87
261.44
241.35
198.47
144.89
(241.57)
(235.35)
(73.92)
(68.52)
0.96
0.57
0.52
0.28
0.55
0.22
(0.01)
0.45
262.40
241.92
198.99
145.17
(242.13)
(235.57)
(73.93)
(68.06)
128.58
118.54
97.51
71.13
(75.06)
(73.03)
(19.22)
(17.70)
` Crore
Dividends
paid to NCI
-
-
-
-
-
-
-
-
` Crore
iii) Summarised Statement of Cash flows
Entities
BSES Rajdhani Power Limited
March 31, 2020
March 31, 2019
BSES Yamuna Power Limited
March 31, 2020
March 31, 2019
Mumbai Metro One Private Limited
March 31, 2020
March 31, 2019
PS Toll Road Private Limited
March 31, 2020
March 31, 2019
(c) Consolidated structured entities
Cash flows
from operating
activities
Cash flows
from / (used)
investing
activities
Cash flows
from / (used)
financing
activities
Net increase/
(decrease) in
cash and cash
equivalents
599.24
550.42
551.88
529.26
182.69
161.98
250.89
262.07
(690.20)
(540.27)
(304.19)
(264.09)
(19.47)
1.37
(176.00)
(210.37)
184.62
(73.24)
(259.71)
(310.49)
(109.15)
(164.86)
(69.80)
(53.90)
93.66
(63.09)
(12.02)
(45.32)
54.07
(1.51)
5.09
(2.20)
The Group owns investment in the companies which are structured entities consolidated by the Group. These are
contractually driven companies designed in a manner that voting rights or similar rights are not the basis to evaluate
control over the operations of these entities.
(d)
Interest in Jointly Controlled Operations
Coal Bed Methane: The Parent Company along with M/s. Geopetrol International Inc. and Reliance Natural Resources
Limited *(the consortium) was allotted 4 Coal Bed Methane (CBM) blocks from Ministry of Petroleum and Natural
Gas (Mo PNG) covering an acreage of 3,266 square kilometers in the States of Madhya Pradesh, Andhra Pradesh and
Rajasthan. The consortium had entered into a contract with Government of India for exploration and production of
CBM gas from these four CBM blocks. The Parent Company as part of the consortium had 45% share in each of the
four blocks. M/s. Geopetrol International Inc was appointed the operator on behalf of the consortium for all the four
CBM blocks. In SP(N) CBM block, Company subsequently acquired 10% share and Operatorship from M/s. Geopetrol
International Inc.
MZ-ONN-2004 / 2: The Parent Company along with M/s. Geopetrol International Inc, NaftoGaz India Private Limited
and Reliance Natural Resources Limited *(the consortium) was allotted Oil and Gas block from Ministry of Petroleum
and Natural Gas (MoPNG), in the State of Mizoram under the New Exploration Licensing Policy (NELP-VI) round,
covering an acreage of 3,619 square kilometers and the consortium had signed a production sharing contract with
the Government of India for exploration and production of Oil and Gas from block. The Parent Company as part of
the consortium had 70% share in the block. M/s NaftoGaz India Private Limited was the operator on behalf of the
consortium for the block.
222
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Rinfra Astaldi Joint Venture (Metro): The Parent Company along with ASTALDI S.P.A. (ASTALDI), a company
incorporated under the law of Italy, consortium was allotted a project for Part Design and Construction of Elevated
Viaduct and Elevated Stations [Excluding Architectural Finishing & Pre-engineered steel roof structure of Stations] from
Chainage (-) 550 M TO 31872.088 M of LINE-4 CORRIDOR [Wadala-Ghatkopar-Mulund-Thane Kasarvadavali] of
Mumbai Metro Rail Project of MMRDA
Reliance Astaldi JV (VBSL): The Parent Company along with ASTALDI S.P.A. (ASTALDI), a company incorporated
under the law of Italy, consortium was allotted a project from Maharashtra State Road Development Corporation Ltd.
(MSRDC) for Design, Construction and Maintenance of 17.17 km length of Versova Bandra Sea Link (VBSL) in the State
of Maharashtra.
Kashedighat JV: The Parent Company along with “Construction Association Interbudmontazh” (CAI), a company
registered at Ukraine, consortium was allotted a project from Ministry of Road Transport & Highways (MoRTH) through
PWD, Maharashtra for Rehabilitation and Upgradation of NH-66 (Erstwhile NH-17) including 6 Lanes near Parshuram
village in the State of Maharashtra under NHDP-IV on EPC Mode of Contract.
Disclosure of the Company’s share in Joint Controlled Operations:
Name of the Field in the Joint
Venture
Location
Participating Interest
(%)March 31, 2020
Participating Interest
(%)March 31, 2019
SP-(North) – CBM - 2005 / III
Sohagpur, Madhya Pradesh
55 % **
55 % **
MZ-ONN-2004 / 2
Mizoram
Terminated ***
Terminated ***
Rinfra Astaldi Joint Venture (Metro) Mumbai, Maharashtra
Reliance Astaldi JV (VBSL)
Mumbai , Maharashtra
Kashedighat
Parshuram Village, Maharashtra
74%
70%
90%
74%
70%
90%
**The Board of Directors of The Parent Company has approved the transfer of operatorship from M/s. Geopetrol
International Inc to The Parent Company on February 14, 2015. MoPNG approved the same on April 28, 2016 and
amendment to Contract has been conveyed on January 29, 2018. DGH approved exploration Phase-II commencement
date as February 28, 2018 with Company as Operator. Currently the Parent Company is awaiting the change of
ownership of Environment clearance which was applied to Ministry of Environment Forest and Climate Change on
March 28, 2018.
*** MoPNG, Government of India in October 2012, after six years of the award of block, observed that NaftoGaz
India Limited had falsely represented itself as the subsidiary of NaftoGaz of Ukraine at the time of bidding and served
notice of termination to all consortium members referring relevant clause of NELP-VI notice inviting offer (NIO) and
Article 30.3(a) of the Production Sharing Contract (PSC) and demanded to pay penalty towards unfinished minimum
work program. The Parent Company has received letter dated April 16, 2015 from DGH to deposit USD 9,467,079 as
cost of unfinished Minimum Work Program (MWP) to MoPNG. The claim has been contested by The Parent Company
vide letter dated June 21, 2014, May 25, 2015 and March 05, 2016. The said amount is disclosed under Contingent
Liability in Note No. 22 above.
(* Share of RNRL has since been demerged to 4 Companies of Reliance Power Limited).
Based on the audited statement of accounts of the JV, the Company’s shares in respect of assets and liabilities and
expenditure for the year have been accounted as under.
` Crore
Particulars
2019-20
2018-19
Rinfra
Astaldi JV
(Metro)
Reliance
Astaldi JV
(VBSL)
123.20
15.04
114.94
15.04
Income
Expenses
Non Current Assets
7.24
6.38
42.68
36.00
1.98
-
-
-
-
-
-
61.90
15.35
61.90
15.35
4.79
0.65
Kashedighat
JV
Mizo
Block
CBM
Block
Rinfra
Astaldi JV
(Metro)
Reliance
Astaldi JV
(VBSL)
Kashedighat
JV
Mizo
Block
CBM
Block
Current Assets
115.08
14.99
36.71
0.24
3.53
55.12
18.28
Non Current Liabilities
71.84
2.08
Current Liabilities
45.63
19.28
12.27
21.95
-
-
-
33.97
0.69
0.01
25.94
18.24
17.91
17.91
0.32
7.69
1.03
6.98
-
-
-
-
0.03
-
0.24
3.53
-
-
-
0.01
223
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(f)
Interests in Associates and Joint Venture accounted using the equity method
(i) Details of carrying value of Associates and Joint Venture
Name of entity
Place of
business/
country of
incorporation
% of ownership interest as at
` Crore
Quoted
fair value
Carrying
amount
Reliance Power Limited
India
March 31, 2020
12.77%
44.78
^
March 31, 2019
33.10% 1,053.85
5,469.82
Metro One Operation Private
Limited
Reliance Geo Thermal Power
Private Limited
RPL Sun Technique Private
Limited
India
March 31, 2020
30.00%
March 31, 2019
30.00%
India
March 31, 2020
25.00%
March 31, 2019
25.00%
India
March 31, 2020
50.00%
March 31, 2019
50.00%
RPL Photon Private Limited
India
March 31, 2020
50.00%
March 31, 2019
50.00%
RPL Sun Power Private Limited
India
March 31, 2020
50.00%
March 31, 2019
50.00%
*
*
*
*
*
*
*
*
*
*
Reliance Naval and Engineering
Limited
India
March 31, 2020
25.23%
March 31, 2019
29.84%
27.92
237.71
2.46
2.47
-
-
-
-
-
-
-
-
-
-
Utility Powertech Limited
India
March 31, 2020
19.80%
Gullfoss Enterprises Private
Limited (w.e.f. April 26, 2019)
Total
March 31, 2019
India
March 31, 2020
March 31, 2019
March 31, 2020
March 31, 2019
19.80%
50.01%
-
*
*
*
-
29.77
24.22
-
-
32.23
5,496.51
^ upto January 09, 2020 Refer Note 36
*Note: Unlisted entity- no quoted price available
Reliance Power Limited
Reliance Power Limited has India’s largest portfolio of private power generation and resources under development.
The portfolio of RPower comprises of multiple sources of power generation - coal, gas hydro, wind and solar
energy.
Metro One Operation Private Limited
The Company is engaged in operations and maintenance of the Mumbai Metro I line from Versova to Ghatkopar
Reliance Naval and Engineering Limited (erstwhile Reliance Defence and Engineering Limited)
The Company is mainly engaged in the construction of vessels, repairs and refits of ships and rigs and heavy
engineering.
Reliance Geo Thermal Power Private Limited, RPL Photon Private Limited, RPL Sun Technique Private
Limited and RPL Sun Power Private Limited
These Companies are formed with an object of generation and distribution of Power.
Utility Powertech Limited
The Company is a Joint Venture between NTPC Limited and Reliance Infrastructure Limited engaged in operation
and maintenance of electrical and mechanical equipments, civil maintenance of townships, residual life assessment
studies, construction/erection of buildings and electrical equipments in power distribution sector.
Gullfoss Enterprises Private Limited
The Company is principally engaged in India and abroad in financing, manufacturing of all kinds of rotor craft, fixed
wing aircraft of every description and carry out all the related allied activities.
224
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(ii) Summarised financial information for Associates and Joint Ventures
The tables below provide summarised financial information for those associates and joint venture that are material
to the Group. The information disclosed reflects the amounts presented in the financial statements of the relevant
associates and not Reliance Infrastructure Limited’s share of those amounts. They have been amended to reflect
adjustments made by the entity when using the equity method, including fair value adjustments made at the time
of acquisition and modifications for differences in accounting policies.
a)
Summarised Balance Sheet (Material Associates)
Particulars
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Net assets
^ upto January 09, 2020 Refer Note 36
** Refer Note 28
Reconciliation to carrying amounts
Particulars
Opening carrying value
Profit / (Loss) for the year
Other comprehensive income
Stake increased/(decreased) during the year
Carrying cost adjustments
Impairment Loss/Written Off (Refer Note 31)
Closing carrying value
Group’s share in %
Group’s share in `
Including Goodwill
Carrying amount
^ upto January 09, 2020 Refer Note 36
** Refer Note 28
Summarised Statement of Profit and Loss
Particulars
Revenue
Profit / (Loss) from Continuing Operations
Profit / (Loss) after tax from Discontinued
Operations
Other comprehensive income
Total comprehensive income
Dividends received
^ upto January 09, 2020 Refer Note 36
** Refer Note 28
Reliance Power Limited
` Crore
Reliance Naval and
Engineering Limited
As at
As at ^
March 31, 2019
March 31, 2020
5,959.28
-
52,119.12
-
18,208.45
-
22,492.48
-
- 17,377.47
As at **
March 31, 2020
-
-
-
-
-
As at
March 31, 2019
1,678.13
2,468.18
14,231.90
335.90
(10421.49)
Reliance Power Limited
` Crore
Reliance Naval and
Engineering Limited
As at ^
March 31, 2020
5,469.82
36.47
12.03
(5,518.32)
-
-
-
12.77%
-
-
As at
March 31, 2019
9,177.80
(1,052.70)
45.20
(2,075.47)
(337.98)
(287.03)
5,469.82
33.10%
5,469.82
-
5,469.82
As at **
March 31, 2020
-
-
-
-
-
-
-
25.23%
-
-
-
As at
March 31, 2019
967.04
(337.68)
0.03
-
-
(629.40)
-
29.84%
-
-
-
Reliance Power Limited
` Crore
Reliance Naval and
Engineering Limited
As at ^
March 31, 2020
-
As at
March 31, 2019
8,534.26
As at **
March 31, 2020
-
As at
March 31, 2019
184.66
-
-
-
-
-
(2,955.91)
4.09
119.62
(2,832.20)
-
-
-
-
-
-
(10,926.55)
-
(0.12)
(10,926.67)
-
225
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
b)
Summarised Statement of Profit and Loss of Immaterial Associates
Particulars
Share in profit or (loss)
Share in other comprehensive income
Share in total comprehensive income
c) Summarised Statement of Profit and Loss of Immaterial Joint Venture
Particulars
Share in profit or (loss)
Share in other comprehensive income (@` 21,384)
Share in total comprehensive income
40. Additional Information required by Schedule III
Year ended
March 31, 2020
Year ended
March 31, 2019
` Crore
(0.01)
-
(0.01)
1.89
-
1.89
` Crore
Year ended
March 31, 2020
Year ended
March 31, 2019
6.39
0.74
7.13
5.65
@
5.65
Net assets (total assets minus
total liabilities)
Share in profit or (loss)
Share in other comprehensive
income
Share in total comprehensive
income
As % of
consolidated
net assets
` Crore
As % of
consolidated
profit or loss
` Crore
As % of
consolidated
other
comprehensive
income
` Crore
As % of
consolidated
total
comprehensive
income
` Crore
106.69%
10,447.00
133.73%
1,031.27
100.81%
14,290.88
37.64%
(913.39)
19.00%
10.59%
2.94
5.62
131.47%
1,034.21
38.24%
(907.77)
2.23%
2.58%
0.41%
0.28%
0.00%
0.00%
0.00%
0.00%
218.06
365.60
-19.13%
(147.54)
0.86%
(20.91)
40.15
40.17
0.00%
0.01%
(0.40)
(0.40)
(0.25)
(0.25)
-0.01%
0.01%
-0.01%
0.01%
(0.02)
(0.17)
(0.07)
(0.15)
(0.07)
(0.16)
4.51%
2.85%
441.23
403.84
10.80%
-2.03%
83.31
49.24
-4.15%
-1.16%
(406.27)
(164.15)
-31.33%
(241.57)
9.70%
(235.35)
0.00%
0.00%
-
0.00
0.00%
0.00%
-
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.80%
0.12%
-3.46%
-0.42%
0.00%
0.00%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.13
0.06
-18.74%
(147.54)
0.88%
(20.91)
0.00%
0.01%
-0.01%
0.01%
-0.01%
0.01%
(0.02)
(0.17)
(0.07)
(0.15)
(0.07)
(0.16)
10.60%
-2.08%
83.44
49.30
(0.55)
(0.22)
-30.78%
(242.13)
9.92%
(235.57)
-
0.00
0.00%
0.00%
-
0.00
Name of the entity in the group
Parent
Reliance Infrastructure Limited
March 31, 2020
March 31, 2019
Subsidiaries (group's share)
Indian
BSES Kerala Power Limited
March 31, 2020
March 31, 2019
Reliance Power Transmission Limited
March 31, 2020
March 31, 2019
North Karanpura Transmission Company
Limited
March 31, 2020
March 31, 2019
Talcher II Transmission Company Limited
March 31, 2020
March 31, 2019
Parbati Koldam Transmission Company
Limited
March 31, 2020
March 31, 2019
Mumbai Metro One Private Limited
March 31, 2020
March 31, 2019
Reliance Sea Link One Private Limited
March 31, 2020
March 31, 2019
226
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Net assets (total assets minus
total liabilities)
Share in profit or (loss)
Share in other comprehensive
income
Share in total comprehensive
income
Name of the entity in the group
As % of
consolidated
net assets
` Crore
As % of
consolidated
profit or loss
` Crore
As % of
consolidated
other
comprehensive
income
` Crore
As % of
consolidated
total
comprehensive
income
` Crore
DS Toll Road Limited
March 31, 2020
March 31, 2019
NK Toll Road Limited
March 31, 2020
March 31, 2019
GF Toll Road Private Limited
March 31, 2020
March 31, 2019
KM Toll Road Private Limited
March 31, 2020
March 31, 2019
PS Toll Road Private Limited
March 31, 2020
March 31, 2019
DA Toll Road Private Limited
March 31, 2020
March 31, 2019
HK Toll Road Private Limited
March 31, 2020
March 31, 2019
TK Toll Road Private Limited
March 31, 2020
March 31, 2019
TD Toll Road Private Limited
March 31, 2020
March 31, 2019
SU Toll Road Private Limited
March 31, 2020
March 31, 2019
JR Toll Road Private Limited
March 31, 2020
March 31, 2019
Reliance Energy Trading Limited
March 31, 2020
March 31, 2019
CBD Tower Private Limited
March 31, 2020
March 31, 2019
Reliance Electric Generation and Supply
Limited
March 31, 2020
March 31, 2019
0.21%
-0.24%
1.62
5.74
0.43%
0.49%
3.30
(11.84)
-2.81%
1.07%
(21.66)
(25.89)
0.65%
0.44%
1.70%
1.15%
1.49%
1.18%
3.66%
2.55%
63.72
61.84
166.19
162.94
145.56
167.47
358.21
361.38
13.00%
1,272.90
9.50%
1,346.83
-0.41%
3.58%
-9.59%
2.82%
-4.76%
0.05%
-7.41%
2.34%
-2.58%
0.51%
-1.94%
0.01%
-2.65%
1.15%
-2.75%
0.43%
-0.04%
0.23%
0.00%
0.00%
(3.16)
(86.78)
(73.92)
(68.53)
(36.71)
(1.14)
(57.14)
(56.84)
(19.86)
(12.37)
(14.95)
(0.35)
(20.44)
(27.87)
(21.17)
(10.54)
(0.31)
(5.53)
0.00
0.00
-
0.00
794.19
831.34
188.91
245.80
311.10
331.00
64.19
79.16
114.68
120.18
42.51
63.75
7.71
8.02
186.55
186.55
8.11%
5.86%
1.93%
1.73%
3.18%
2.33%
0.66%
0.56%
1.17%
0.85%
0.43%
0.45%
0.08%
0.06%
1.91%
1.32%
-
0.00%
-
0.00
-
0.00%
1.84%
-0.87%
-0.32%
0.00%
-1.60%
0.15%
0.00%
0.08%
-0.08%
0.85%
-2.77%
0.81%
1.62%
-0.26%
-0.23%
0.09%
-0.13%
0.35%
-0.37%
-0.34%
-0.44%
0.12%
0.00%
0.00%
0.00%
0.00%
-
5%
0.29
(0.46)
(0.05)
0.00
(0.26)
0.08
0.00
0.04
(0.01)
0.45
(0.43)
0.43
0.25
(0.14)
(0.04)
0.05
(0.02)
0.19
(0.06)
(0.18)
(0.07)
0.06
0.00
0.00
0.00
0.00
-
2.65
0.24%
-0.22%
1.90
5.28
0.41%
0.50%
3.25
(11.84)
-2.79%
1.09%
(21.92)
(25.82)
-0.40%
3.65%
-9.39%
2.87%
-4.72%
0.03%
-7.23%
2.40%
-2.53%
0.52%
-1.90%
0.01%
-2.61%
1.18%
-2.70%
0.44%
-0.04%
0.23%
0.00%
0.00%
-
-0.11%
(3.16)
(86.74)
(73.93)
(68.08)
(37.14)
(0.71)
(56.89)
(56.97)
(19.89)
(12.32)
(14.97)
(0.16)
(20.50)
(28.05)
(21.24)
(10.48)
(0.31)
(5.53)
0.00
0.00
-
2.65
227
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Net assets (total assets minus
total liabilities)
Share in profit or (loss)
Share in other comprehensive
income
Share in total comprehensive
income
Name of the entity in the group
As % of
consolidated
net assets
` Crore
As % of
consolidated
profit or loss
` Crore
As % of
consolidated
other
comprehensive
income
` Crore
As % of
consolidated
total
comprehensive
income
` Crore
Utility Infrastructure & Works Private
Limited
March 31, 2020
March 31, 2019
Reliance Airport Developers Limited
March 31, 2020
March 31, 2019
Baramati Airport Limited
March 31, 2020
March 31, 2019
Latur Airport Limited
March 31, 2020
March 31, 2019
Nanded Airport Limited
March 31, 2020
March 31, 2019
Osmanabad Airport Limited
March 31, 2020
March 31, 2019
Yavatmal Airport Limited
March 31, 2020
March 31, 2019
Reliance Cement Corporation Private
Limited
March 31, 2020
March 31, 2019
Reliance Defence Systems Private Limited
March 31, 2020
March 31, 2019
Reliance Defence Technologies Private
Limited
March 31, 2020
March 31, 2019
Reliance Defence & Aerospace Private
Limited
March 31, 2020
March 31, 2019
Reliance Defence Limited
March 31, 2020
March 31, 2019
Reliance Defence Infrastructure Limited
March 31, 2020
March 31, 2019
Reliance SED Limited
March 31, 2020
March 31, 2019
228
0.04%
0.03%
0.72%
0.50%
0.15%
0.10%
0.03%
0.02%
3.66
3.66
70.78
70.82
14.54
14.78
3.23
3.41
-0.12%
-0.07%
(11.64)
(10.52)
0.06%
0.04%
0.01%
0.01%
0.00%
-0.07%
0.07%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
5.62
5.75
1.08
1.27
0.00
(9.32)
6.48
(0.18)
(0.01)
(0.01)
(0.05)
(0.04)
1.45
0.44
0.03
0.03
0.03
0.04
0.00%
0.13%
-0.01%
0.00%
-0.03%
0.01%
-0.02%
0.02%
-0.14%
0.11%
-0.02%
0.01%
-0.03%
0.01%
0.00%
0.00%
(0.00)
(3.14)
(0.04)
0.02
(0.24)
(0.33)
(0.18)
(0.40)
(1.12)
(2.58)
(0.13)
(0.24)
(0.19)
(0.34)
(0.00)
(0.00)
0.86%
6.65
62.13% (1,507.72)
0.00%
0.00%
(0.00)
(0.00)
0.00%
0.00%
0.27%
0.41%
0.00%
0.00%
0.00%
0.00%
(0.00)
(0.00)
(6.50)
(10.05)
(0.00)
(0.01)
(0.00)
(0.01)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.03%
0.00%
0.00%
0.00%
0.00%
0.09%
0.83%
0.00%
0.00%
0.00%
0.00%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.00
0.00
0.00
0.00
0.05
0.44
0.00
0.00
0.00
0.00
0.00%
0.13%
-0.01%
0.00%
-0.03%
0.01%
-0.02%
0.02%
-0.14%
0.11%
-0.02%
0.01%
-0.02%
0.01%
0.00%
0.00%
(0.00)
(3.14)
(0.04)
0.02
(0.24)
(0.33)
(0.18)
(0.40)
(1.12)
(2.58)
(0.13)
(0.24)
(0.19)
(0.34)
(0.00)
(0.00)
0.85%
6.65
63.53% (1,507.70)
0.00%
0.00%
0.00%
0.00%
0.27%
0.40%
0.00%
0.00%
0.00%
0.00%
(0.00)
(0.00)
(0.00)
(0.00)
(6.45)
(9.61)
(0.00)
(0.01)
(0.00)
(0.01)
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Net assets (total assets minus
total liabilities)
Share in profit or (loss)
Share in other comprehensive
income
Share in total comprehensive
income
Name of the entity in the group
As % of
consolidated
net assets
` Crore
As % of
consolidated
profit or loss
` Crore
As % of
consolidated
other
comprehensive
income
` Crore
As % of
consolidated
total
comprehensive
income
` Crore
Reliance Propulsion System Limited
March 31, 2020
March 31, 2019
Reliance Defence Systems & Tech Limited
March 31, 2020
March 31, 2019
Reliance Helicopters Limited
March 31, 2020
March 31, 2019
Reliance Land Systems Limited
March 31, 2020
March 31, 2019
Reliance Naval Systems Limited
March 31, 2020
March 31, 2019
Reliance Unmanned Systems Limited
March 31, 2020
March 31, 2019
Reliance Aerostructure Limited
March 31, 2020
March 31, 2019
Reliance Cruise and Terminals Limited
March 31, 2020
March 31, 2019
Dassault Reliance Aerospace Limited
March 31, 2020
March 31, 2019
Reliance Aero Systems Private Limited
March 31, 2020
March 31, 2019
Reliance Smart Cities Limited
March 31, 2020
March 31, 2019
Reliance E-Generation and Management
Private Limited
March 31, 2020
March 31, 2019
Reliance Energy Limited
March 31, 2020
March 31, 2019
BSES Rajdhani Power Limited
March 31, 2020
March 31, 2019
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-0.02%
-0.02%
0.00%
0.00%
0.22%
0.34%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.03
0.03
(0.17)
(0.16)
0.03
0.03
0.01
0.02
0.03
0.03
0.03
0.04
(3.28)
(2.68)
0.03
0.03
21.62
48.45
(0.00)
0.00
0.03
0.03
(0.00)
0.01
0.03
0.03
0.00%
0.00%
0.00%
-0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
-0.12%
0.00%
0.00%
(0.00)
(0.00)
(0.00)
0.16
(0.00)
(0.01)
(0.00)
(0.01)
(0.00)
(0.00)
(0.00)
(0.00)
(0.60)
2.94
(0.00)
(0.00)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00%
0.00%
0.00%
-0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.03%
-0.12%
0.00%
0.00%
(0.00)
(0.00)
(0.00)
0.16
(0.00)
(0.01)
(0.00)
(0.01)
(0.00)
(0.00)
(0.00)
(0.00)
(0.60)
2.94
(0.00)
(0.00)
-3.47%
0.25%
(26.76)
(6.02)
-0.45%
-0.05%
(0.07)
(0.03)
-3.41%
0.25%
(26.83)
(6.04)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6.20%
1.07%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.96
0.57
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
39.47%
-12.29%
310.47
291.84
229
21.24%
12.48%
2,079.71
40.14%
1,769.29
-12.00%
309.51
291.27
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Net assets (total assets minus
total liabilities)
Share in profit or (loss)
Share in other comprehensive
income
Share in total comprehensive
income
Name of the entity in the group
As % of
consolidated
net assets
` Crore
As % of
consolidated
profit or loss
` Crore
As % of
consolidated
other
comprehensive
income
` Crore
As % of
consolidated
total
comprehensive
income
` Crore
11.83%
1,158.74
6.63%
939.86
28.31%
-7.08%
218.35
171.73
-0.01%
-0.01%
(0.73)
(0.72)
0.00%
0.00%
0.16%
0.15%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
0.00%
0.19%
-0.04%
0.00%
0.00%
15.72
21.60
-0.76%
0.37%
0.40
0.42
0.00
0.00
0.04
0.04
0.03
0.04
(0.10)
(0.10)
-
0.03
18.39
(4.99)
0.04
0.04
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-0.01%
0.00%
0.00%
0.00%
-0.54%
0.25%
0.00%
0.00%
(0.00)
(0.01)
(5.88)
(9.05)
(0.02)
(0.02)
(0.00)
(0.00)
(0.00)
(0.00)
(0.01)
(0.01)
(0.11)
(0.11)
0.00
-
(4.18)
(6.00)
(0.02)
(0.02)
3.39%
0.53%
0.00%
0.00%
0.00%
0.03%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.52
0.28
0.00
0.00
0.00
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
27.82%
-7.25%
218.88
172.01
0.00%
0.00%
-0.75%
0.38%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-0.01%
0.00%
0.00%
0.00%
-0.53%
0.25%
0.00%
0.00%
(0.00)
(0.01)
(5.88)
(9.03)
(0.02)
(0.02)
(0.00)
(0.00)
(0.00)
(0.00)
(0.01)
(0.01)
(0.11)
(0.11)
0.00
0.00
(4.18)
(6.00)
(0.02)
(0.02)
-18.68%
(1,829.44)
-17.80%
(137.27)
-11.92%
(1,690.11)
4.29%
(104.18)
-3.54%
-0.91%
(0.55)
(0.48)
-17.52%
(137.81)
4.41%
(104.66)
BSES Yamuna Power Limited
March 31, 2020
March 31, 2019
Tamil Nadu Industries Captive Power
Company Limited
March 31, 2020
March 31, 2019
Delhi Airport Metro Express Private
Limited
March 31, 2020
March 31, 2019
Mumbai Metro Transport Private Limited
March 31, 2020
March 31, 2019
Reliance Property Developers Private
Limited
March 31, 2020
March 31, 2019
Reliance Armaments Limited
March 31, 2020
March 31, 2019
Reliance Ammunition Limited
March 31, 2020
March 31, 2019
Reliance Velocity Limited
March 31, 2020
March 31, 2019
Reliance Delhi Metro Trust
March 31, 2020
March 31, 2019
Thales Reliance Defence System Limited
March 31, 2020
March 31, 2019
Reliance Global Limited
March 31, 2020
March 31, 2019
Non-controlling interests in all
subsidiaries
March 31, 2020
March 31, 2019
230
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Net assets (total assets minus
total liabilities)
Share in profit or (loss)
Share in other comprehensive
income
Share in total comprehensive
income
Name of the entity in the group
As % of
consolidated
net assets
` Crore
As % of
consolidated
profit or loss
` Crore
As % of
consolidated
other
comprehensive
income
` Crore
As % of
consolidated
total
comprehensive
income
` Crore
Associates
(Investment as per equity method)
Indian
Reliance Power Limited
March 31, 2020
March 31, 2019
Metro One Operation Private Limited
March 31, 2020
March 31, 2019
Reliance Naval and Engineering Limited
March 31, 2020
March 31, 2019
Reliance Geo Thermal Power Private
Limited
March 31, 2020
March 31, 2019
RPL Sun Technique Private Limited
March 31, 2020
March 31, 2019
RPL Photon Private Limited
March 31, 2020
March 31, 2019
RPL Sun Power Private Limited
March 31, 2020
March 31, 2019
Gullfoss Enterprises Private Limited
March 31, 2020
March 31, 2019
Joint ventures
(Investment as per equity method)
Indian
Utility Powertech Limited
March 31, 2020
March 31, 2019
Inter Co. Elimination/Adjustments arising
out of consolidation
March 31, 2020
March 31, 2019
Total
March 31, 2020
March 31, 2019
0.46%
38.59%
44.79
4.73%
36.47
5,469.82
43.38% (1,052.70)
2.46
2.47
0.00%
-0.08%
(0.01)
1.89
-
-
-
13.91%
(337.68)
0.19%
0.03%
0.02%
-
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
0.00
-
0.00
-
0.00
-
-
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
-
-
0.01
-
0.30%
0.17%
29.77
24.22
0.83%
-0.23%
6.39
5.65
-64.31%
(6,297.03)
-10.86%
(83.77)
-80.31% (11,384.11)
-64.40%
1,562.99
100%
100%
9792.37
100%
771.17
14,175.74
100% (2,426.82)
77.71%
85.13%
0.00%
0.02%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
4.80%
0.00%
0.00%
0.00%
100%
100%
12.03
45.20
6.17%
48.50
42.44% (1,007.50)
0.00
0.01
-
0.10
0.00%
-0.08%
(0.01)
1.90
-
-
14.22%
(337.58)
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
0.00%
-
0.00%
-
0.00%
(0.00)
0.00%
-
-
-
-
-
-
-
-
0.01
-
0.74
0.00
0.00
0.00
15.48
53.09
0.91%
-0.24%
7.13
5.65
-10.65%
(83.77)
-65.85%
1,562.99
100%
786.65
100% (2,373.73)
231
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
41. Fair Value Measurement and Financial Risk Management
(A)
Fair Value Measurement
(a)
Financial Instruments by category
As at March 31, 2020
As at March 31, 2019
FVTPL
FVOCI
Amortised
cost
FVTPL
FVOCI
Amortised
cost
` Crore
Particulars
Financial Assets
Investments
- Equity instruments
- Preference shares
- Debentures
- Mutual funds
Trade Receivables
Inter Corporate Deposits
Security deposits
Loan to Employees
Other receivables
Receivable from DMRC
Claim receivable from NHAI
Grant receivable from NHAI
Unbilled Revenue
Margin Money with bank
Interest receivable
Cash and cash equivalents
Bank deposits with original maturity
of more than 3 months but less than
12 months
Bank deposits with more than 12
months original maturity
Total Financial Assets
Financial Liabilities
Borrowings (including finance lease
obligations and
interest accrued
thereon)
Trade payables
Other payable
Deposits from consumers
Deposits from Others
NHAI premium payable
Creditors for Capital Expenditure
Lease Liabilities
48.51
678.62
1,313.21
0.93
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,041.27
-
-
-
-
-
-
-
-
-
Financial guarantee obligation
Derivative Financial Liability
123.86
1.81
Unpaid dividends
-
-
78.24
678.62
- 1,151.53
-
16.63
-
-
-
-
-
5,005.17
-
5,250.74
-
-
-
-
-
-
-
-
-
-
-
34.54
7.82
763.13
1,608.29
29.12
28.91
376.21
160.52
1,463.90
732.39
727.79
-
39.68
-
20,121.44
-
-
-
-
-
-
-
-
178.93
1,410.07
229.07
2,479.23
672.19
81.59
-
-
14.18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22.90
0.18
-
16,228.21 1,925.02
-
-
-
18,413.91
-
-
-
-
-
-
-
-
-
-
-
4,471.08
5,546.20
114.01
10.47
998.98
1,374.60
38.20
36.93
512.39
133.97
690.19
634.95
259.38
-
40.15
-
-
-
-
-
-
-
-
-
-
-
-
-
14,861.50
18,421.88
19,836.79
143.77
1,267.99
258.04
2,902.98
781
-
-
-
16.05
Total Financial Liabilities
125.67
-
43,600.61 23.08
-
43,628.51
232
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(b) Fair value hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that
are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An
explanation of each level follows underneath the table.
Assets and liabilities measured at fair value - recurring
fair value measurements as at March 31, 2020
Level 1
Level 2
Level 3
Total
` Crore
Financial instruments at FVTPL
Unquoted equity instruments
Quoted equity instruments
Mutual Fund
Preference Shares
Debentures
Financial Guarantee Obligations
Derivatives not designated as hedges
Derivative Financial Liability
-
44.78
0.93
-
-
-
-
-
-
-
-
-
-
3.73
-
-
3.73
44.78
0.93
678.62
678.62
1,313.21
1,313.21
123.86
123.86
Assets and liabilities for which fair values are disclosed as
at March 31, 2020
Level 1
Level 2
Level 3
Non-financial assets
Investment property
Investments in equity instruments of associates
Reliance Naval and Engineering Limited
Financial Liabilities
-
27.92
-
-
531.00
531.00
-
27.92
Borrowings (including finance lease obligation and interest)
18,267.93 18,267.93
1.81
-
1.81
Total
Assets and liabilities measured at fair value - recurring
fair value measurements as at March 31, 2019
Financial instruments at FVTPL
Unquoted equity instruments
Quoted equity instruments
Preference Shares
Debentures
Mutual funds
Financial Guarantee Obligations
Derivatives not designated as hedges
Derivative financial liabilities
Assets and liabilities for which fair values are disclosed as
at March 31, 2019
Non-financial assets
Investment property
Investments in equity instruments of associates
Reliance Power Limited
Reliance Naval and Engineering Limited
Financial Liabilities
Level 1
Level 2
Level 3
` Crore
Total
-
74.51
-
-
16.63
-
-
-
-
-
-
-
-
3.73
-
3.73
74.51
678.62
678.62
1,151.53
1,151.53
-
22.90
16.63
22.90
0.18
Total
0.18
-
Level 1
Level 2
Level 3
-
1,053.85
237.71
-
-
-
531
531
-
-
1,053.85
237.71
Borrowings (including finance lease obligation and interest)
-
- 18,449.55 18,449.55
233
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
There were no transfers between any levels during the year
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds
that have a quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued
using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities, preference shares and debentures which are included in
level 3
(c) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include
•
•
the use of quoted market prices or dealer quotes for similar instruments
the fair value of the remaining financial instruments is determined using discounted cash flow analysis /
Earnings / EBITDA multiple method.
All of the resulting fair value estimates are included in level 1 and 2 except for unlisted equity securities, where
the fair values have been determined based on present values and the discount rates used were adjusted for
counterparty or own credit risk.
(d)
Fair value measurements using significant unobservable inputs (level 3)
Particulars
As at March 31, 2018
Other fair value gains(losses) recognised in Consolidated
Statement of Profit and Loss (unrealised)
Loss recognised in Consolidated Statement of profit and Loss
Sale Proceeds
As at March 31, 2019
Other fair value gains(losses) recognised in Consolidated
Statement of Profit and Loss (unrealised)
Financial Assets
Financial Liabilities
(` Crore)
2,426.48
271.94
860.44
4.10
1,833.88
161.68
9.24
13.66
-
-
22.9
100.96
As at March 31, 2020
1,995.56
123.86
(e) Fair value of financial assets and liabilities measured at amortised cost
Particulars
As at March 31, 2020
As at March 31, 2019
` Crore
Financial liabilities
Borrowings (including finance lease
obligations and interest accrued thereon)
Carrying
amount
Fair value
Carrying
amount
Fair
value
18,413.91
18,267.93
18,421.88
18,449.55
The carrying amounts of trade receivables, trade payables, advances to employees including interest thereon
(secured/unsecured), intercorporate deposits, security deposits, deposits from customers, other receivable, loans
to employees, interest receivables, subordinate debt, unpaid dividends, bank deposits with original maturity of
more than 3 months but less than 12 months, bank deposits with more than 12 months maturity, capital
creditors, loans to employee and cash and cash equivalents are considered to have their fair values approximately
equal to their carrying values. The fair values for other assets and liabilities were calculated based on cash flows
discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy if there
is inclusion of unobservable inputs including counterparty credit risk. The fair values of non-current borrowings
and finance lease obligations are based on discounted cash flows using a current borrowing rate. They are classified
as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
234
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(f)
Valuation Inputs and relationship to fair value
Particulars
Fair Value as at
March 31, 2020 March 31, 2019
Valuation
Techniques
Equity Instruments
3.73
Preference Shares
678.62
Debentures
1,313.21
3.73 Earnings/EBIDTA
Multiple Method
678.62 Discounted Cash
Flow
1,151.53 Discounted Cash
Flow
Financial Guarantee
Obligation
123.86
22.90 Credit Default Swap
(CDS)
Significant
unobservable inputs
and range
Earning growth Factor
7% to 9%
Discount rate: 12% to
16%
Discount rate: 12% to
16%
One year CDS spread
for respective entity’s
credit rating
(B) Financial Risk Management
The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit
risk. The Company’s senior management has overall responsibility for the establishment and oversight of the Company’s
risk management framework. The Company has constituted a Risk Management Committee, which is responsible for
developing and monitoring the Company’s risk management policies.
The Company’s risk management is carried out by the treasury department under policies approved by the board
of directors. Treasury Department identifies, evaluates and hedge financial risks in close cooperation the Company’s
operating units
(a) Credit risk
The Company is exposed to credit risk, which is the risk that one party to a financial instrument will cause
a financial loss for the other party by failing to discharge an obligation. Credit risk arises from cash and cash
equivalents, investments carried at amortised cost or fair value through profit & loss and deposits with banks and
financial institutions, as well as credit exposures to trade/non-trade customers including outstanding receivables.
(i)
Credit risk management
Credit risk is managed at segment level and corporate level depending on the policy surrounding credit risk
management. For banks and financial institutions, only high rated banks/institutions are accepted. Generally
all policies surrounding credit risk have been managed at segment and corporate level. Each segment
is responsible for managing and analysing the credit risk for each of their new clients before standard
payment and delivery terms and conditions are offered. For other financial assets, the Company assesses
and manages credit risk based on internal credit rating system. The finance function consists of a separate
team who assess and maintain an internal credit rating system. Internal credit rating is performed on a
Company basis for each class of financial instruments with different characteristics. The Company assigns
the following credit ratings to each class of financial assets based on the assumptions, inputs and factors
specific to the class of financial assets.
Rating 1: High-quality assets, negligible credit risk
Rating 2: Quality assets, low credit risk
Rating 3: Medium to low quality assets, Moderate to high credit risk
Rating 4: Doubtful assets, credit-impaired
(ii) Provision for expected credit losses
Trade receivables, retentions on contract and amounts due from customers for contract work
The provision for expected credit losses on financial assets are based on assumptions about risk of default
and expected loss rates. The Company uses judgement in making these assumptions and selecting the
inputs, based on the Company’s past history, existing market conditions, current creditability of the party
as well as forward looking estimates at the end of each reporting period.
Investments other than equity instruments
Investments in financial assets other than equity instruments are exposed to the risk of loss that may occur
in future from the failure of counterparties or issuers to make payments according to the terms of the
contract. The maximum exposure to credit risk for each class of financial assets is the carrying amount of
that class of financial instruments presented in the balance sheet.
235
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Year ended March 31, 2020:
Expected credit loss for financial assets where general model is applied
Particulars
Asset group
Internal
credit
rating
Estimated
gross
carrying
amount at
default
Expected
probability
of default
Expected
credit
losses
` Crore
Carrying
amount
net of
provision
Rating 2
34.54
0%
NIL
34.54
Rating 1
4,412.59
3%
144.03
4,269.56
Financial assets
for which credit
risk has / has
not increased
significantly since
initial recognition
Loss allowance
measured at 12
month / Life
time expected
credit losses
Security
deposits
Other
receivables
Inter Corporate
Deposit
Rating
2 / 3
9,079.88
42% 3,829.14
5,250.74
Year ended March 31, 2019
Expected credit loss for financial assets where general model is applied
Particulars
Asset group
Internal
credit rating
Expected
probability
of default
Expected
credit
losses
Estimated
gross
carrying
amount at
default
` Crore
Carrying
amount
net of
provision
Financial assets
for which credit
risk has / has
not increased
significantly since
initial recognition
Loss allowance
measured at 12
month /Life time
expected credit
losses
Security
deposits
Other
receivables
Inter
Corporate
Deposit
Rating 2
114.01
0%
NIL
114.01
Rating 1
3,796.12
4%
144.83
3,651.29
Rating 2 / 3
9,378.48
41% 3,832.28
5,546.20
(iii) Reconciliation of loss allowance provision -Trade receivables, retentions on contract under general model approach
Reconciliation of loss allowance
Loss allowance as at March 31, 2018
Changes in loss allowance
Loss allowance as at March 31, 2019
Changes in loss allowance
Loss allowance as at March 31, 2020
` Crore
Lifetime expected credit losses
measured using simplified approach
467.75
(116.14)
351.61
(77.37)
274.24
(iv) Reconciliation of loss allowance provision - Other than trade receivables, retentions on contract under general model
approach
Reconciliation of loss allowance
` Crore
Lifetime expected credit losses
measured using simplified
approach
Loss allowance as at March 31, 2018
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2019
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2020
2,714.87
1,262.24
3,977.11
(4.94)
3,972.17
236
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(b) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining
availability under committed credit lines.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of
expected cash flows. This is generally carried out at local level in the operating companies of the Company in accordance with
practice and limits set by the Company. These limits vary by location to take into account the liquidity of the market in which
the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies
and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and
external regulatory requirements and maintaining debt financing plans.
Further in view of the certain cash flow mismatches the Company is considering debt resolution plan. Also the time bound
monetisation of assets as well as favorable and timely outcome of various claims will enable the Company to meet its
obligation. The Company is confident that such cash flows would enable it to service its debt, realise its assets and discharge
its liabilities in the normal course of its business.
(i) Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturities based on their contractual maturities
for all financial liabilities at the reporting date. The amounts are gross and undiscounted and include contractual interest
payment.
Contractual maturities of financial liabilities
March 31, 2020
Non-derivatives
Borrowings*
Trade payables (Including Retention payable)
Financial guarantee obligation
Security and Other Deposits
NHAI Premium Payable
Creditors for Capital Expenditure
Lease Liability
Other finance liabilities
Total non-derivative liabilities
Derivative
Forward Contract
Contractual maturities of financial liabilities
March 31, 2019
Non-derivatives
Borrowings*
Trade payables (Including Retention payable)
Security and other deposits
Financial guarantee obligation
NHAI Premium Payable
Creditors for Capital Expenditure
Other finance liabilities
Total non-derivative liabilities
Derivatives (not settled)
Forward Contract
Less than
1 year
More than
1 year
7,016.26
20,096.18
-
1,629.70
251.85
672.19
13.98
193.11
29,873.18
15,246.42
25.26
123.86
9.53
5,075.74
-
67.61
-
20,548.42
-
1.81
Less than
1 year
More than
1 year
6,053.43
19,819.26
1,518.21
-
290.91
781
155.27
28,618.08
17,636.51
17.53
7.82
22.9
6,577.15
-
4.37
24,266.28
` Crore
Total
22,262.68
20,121.44
123.86
1,639.23
5,327.59
672.19
81.59
193.11
50,421.68
1.81
Total
23,689.94
19,836.79
1,526.03
22.9
6,868.06
781
159.64
52,884.36
-
0.18
0.18
*Includes contractual interest payments based on the interest rate prevailing at the reporting date.
(c) Market risk
(i)
Foreign currency risk
The Company operates in a business that exposes it to foreign exchange risk arising from foreign currency transactions,
primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised
assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured
through a forecast of highly probable foreign currency cash flows. The objective of the Company is to minimise the
volatility of the INR cash flows of highly probable forecast transactions.
237
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
Foreign exchange forward contracts are taken to manage such risk.
Particulars
Financial assets
Investment in preference shares
Investment in equity shares
Trade Receivable
Bank balance in EEFC accounts $ USD 4,457 @
Euro 10.10
Exposure to foreign currency risk (assets)
Financial liabilities
Borrowing
Trade payables
Other payable payables
Exposure to foreign currency risk (liabilities)
Sensitivity
As at March 31, 2020
As at March 31, 2019
USD
In Crore
EUR
In Crore
USD
In Crore
EUR
In Crore
9.81
-
26.87
$
36.68
15.41
6.12
2.15
23.68
-
-
1.34
@
1.34
2.13
2.61
0.99
5.73
9.81
1.49
27.1
0.01
38.41
17.02
4.8
1.89
23.71
-
-
1.34
@
1.34
1.7
2.61
0.98
5.29
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments and from foreign forward exchange contracts.
Particulars
INR/USD - Increase by 6%*
INR/USD - Decrease by 6%*
INR/EURO - Increase by 6%*
INR/EURO - Decrease by 6%*
*Holding all other variables constant
(ii) Cash flow and fair value interest rate risk
` Crore
Impact on profit before tax
March 31, 2020 March 31, 2019
59.03
(59.03)
(21.78)
21.78
61.00
(61.00)
(24.68)
24.68
The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company
to cash flow interest rate risk. During March 31, 2020 and March 31, 2019, the Company’s borrowings at variable rate
were mainly denominated in INR. The Company’s fixed rate borrowings are carried at amortised cost. They are therefore
not subject to interest rate risk as defined in Ind AS 107
(a)
Interest rate risk exposure
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as
follows:
Particulars
Variable rate borrowings
Fixed rate borrowings
Total borrowings
` Crore
As at
March 31, 2020
As at
March 31, 2019
15,680.39
1,522.24
17,202.63
16,115.59
1,826.31
17,941.90
As at the end of the reporting period, the Company had the following variable rate borrowings outstanding:
Particulars
March 31, 2020
March 31, 2019
Weighted
average
interest rate
Balance
(` Crore)
% of total
loans
Weighted
average
interest rate
Balance
(` Crore)
% of total
loans
Borrowings
11.36% 15,680.39
91.15%
11.15% 16,115.59
89.82%
An analysis by maturities is provided above. The percentage of total loans shows the proportion of loans that are
currently at variable rates in relation to the total amount of borrowings
238
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
(b)
Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates
` Crore
Particulars
Interest rates – increase by 100 basis points*
Interest rates – decrease by 20 basis points*
*Holding all other variables constant
(iii) Price risk
(a)
Exposure
Impact on profit before tax
March 31, 2020 March 31, 2019
(156.80)
31.36
(161.16)
32.23
The Company’s exposure to equity securities price risk arises from unquoted/quoted equity investments and
quoted mutual funds held by the Company and classified in the balance sheet as fair value through profit and loss.
To manage its price risk arising from investments in equity securities, the Company invests only in accordance with
the limits set by the Company.
(b) Sensitivity
Particulars
Price increase by 10%
Price decrease by 10%
42. Capital Management
` Crore
Impact on other components of equity
March 31, 2019
9.49
(9.49)
March 31, 2020
4.94
(4.94)
(a)
The Group considers the following components of its Balance Sheet to be managed capital:
1.
Total equity – retained profit, general reserves and other reserves, share capital, share premium
2. Working capital.
The Group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns
to our shareholders. The capital structure of the Group is based on management’s judgement of the appropriate
balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital
in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets.
The Group’s aims to translate profitable growth to superior cash generation through efficient capital management.
The Group’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditor, and market confidence and to sustain future development and growth of its business.
The Group’s focus is on keeping strong total equity base to ensure independence, security, as well as a high
financial flexibility for potential future borrowings, if required, without impacting the risk profile of the Group. The
Group will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The management monitors the return on capital as well as the level of dividends to shareholders. The Group’s goal
is to continue to be able to return excess liquidity to shareholders by continuing to distribute dividends in future
periods.
(b) Dividends
Final dividend for the year ended March 31, 2018 of ` 9.50 per fully paid share aggregating to ` 297.45 Crore paid
in financial year 2018-19. The Parent Company has not declared dividends for the year ended March 31, 2019 and
March 31, 2020.
As per our attached Report of even date
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Vishal D. Shah
Partner
Membership No. 119303
Date : May 08, 2020
Place : Mumbai
For and on behalf of the Board
Anil D Ambani
S Seth
S S Kohli
K Ravikumar
Manjari Kacker
Ryna Karani
Directors
Chairman
Vice Chairman
Punit Garg
Executive Director & Chief Executive Officer
Sridhar Narasimhan
Paresh Rathod
Chief Financial Officer
Company Secretary
Date : May 08, 2020
Place : Mumbai
239
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2020
ANNEXURE I
Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted along-with
Annual Audited Financial Results - Consolidated)
Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2020
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016] Consolidated
I
Sr.
No.
Particulars
1
2
3
4
6
7
8
Turnover / Total income
Total Expenditure including exceptional items
Net profit/(loss) for the year after tax
Earnings Per Share (`)
Total Assets
Total Liabilities
Net worth-Other Equity
II
Audit Qualification (each audit qualification separately):
a.
Details of Audit Qualification:
Audited Figures
(` Crore)
(as reported before
adjusting for
qualifications)
Audited Figures
(` Crore)
(audited figures
after adjusting for
qualifications)
quoted in II (a)(2)
20,972.33
21,557.99
771.17
29.32
65,102.80
55,310.43
9,792.37
20,972.33
26,870.01
(4,540.85)
(172.66)
65,102.80
55,310.43
9,792.37
1. We refer to Note 8 to the consolidated financial results regarding the Holding Company has exposure in an EPC
Company as on March 31, 2020 aggregating to ` 8,066.08 Crore (net of provision of ` 3,972.17 Crore). Further,
the Company has also provided corporate guarantees aggregating to ` 1,775 Crore on behalf of the aforesaid EPC
Company towards borrowings of the EPC Company.
According to the Management of the Holding Company, these amounts have been funded mainly for general
corporate purposes and towards funding of working capital requirements of the party which has been engaged
in providing Engineering, Procurement and Construction (EPC) services primarily to the Holding Company and its
subsidiaries and its associates and the EPC Company will be able to meet its obligation.
As referred to in the above note, the Holding Company has further provided Corporate Guarantees of ` 4,895.87
Crore in favour of certain companies towards their borrowings. According to the Management of the Company
these amounts have been given for general corporate purposes.
We were unable to evaluate about the relationship, the recoverability and possible obligation towards the Corporate
Guarantee given. Accordingly, we are unable to determine the consequential implications arising there from in the
consolidated financial results.
2. We refer to Note 12 to the consolidated financial results wherein the loss on invocation of shares held in Reliance
Power Limited (RPower) amounting to ` 3,215.77 Crore for year ended March 31, 2020 has been adjusted
against the capital reserve. The above treatment of loss on invocation of shares is not accordance with the Ind AS
28 “Investments in Associates and Joint Ventures” and Ind AS 1 “Presentation of Financial Statements”.
Further, due to the invocation of shares as stated above RPower ceases to be an associate of the Company.
The balance investments in RPower have been carried at fair value in accordance with Ind AS 109 “Financial
Instruments” and valued at current market price and loss on fair valuation amounting to ` 2,096.25 Crore has been
adjusted against the capital reserve. The above treatment is not in accordance with the Ind AS 1 “Presentation of
Financial Statements” and Ind AS 109 “Financial Instruments”.
Had the Group followed the treatment prescribed under the above Ind AS’s the Profit before tax for the year ended
would have been lower by ` 5,312.02 Crore and capital reserve and total equity would have been higher by an
equivalent amount.
Type of Audit Qualification : Qualified Opinion / Disclaimer of Opinion
/ Adverse Opinion
Disclaimer of Opinion
Frequency of qualification: Whether appeared first time / repetitive /
since how long continuing
1.
2.
Item II(a)(1) Coming Since year ended
March 31, 2019
Item II(a)(2) - first time
b.
c.
240
Reliance Infrastructure Limited
ANNEXURE I
d.
For Audit Qualification(s) where the impact is quantified by the auditor, Management’s views:
With respect to Item II(a)(2) Management view is set out in note 12 to the Consolidated Financial Results, as below:
During the year ended March 31, 2020, ` 3,215.77 Crore being the loss on invocation of pledge of shares of RPower
held by the Parent Company has been adjusted against the capital reserve/capital reserve on consolidation. According to
the management of the Parent Company, this is an extremely rare circumstance where even though the value of long
term strategic investment is high, the same is being disposed off at much lower value for the reasons beyond the control
of the Parent Company, thereby causing the said loss to the Parent Company. Hence, being the capital loss, the same
has been adjusted against the capital reserve/capital reserve on consolidation.
Further, due to above said invocation, during the quarter, investment in RPower has been reduced to 12.77% of its
paid-up share capital. Accordingly in terms of Ind AS 28 on Investments in Associates, RPower ceases to be an associate
of the Parent Company. Although this being strategic investment and Parent Company continues to be promoter of the
RPower, due to the invocations of the shares by the lenders for the reasons beyond the control of the Parent Company
the balance investments in RPower have been carried at fair value in accordance with Ind AS 109 on financial instruments
and valued at current market price and loss of ` 2,096.25 Crore being the capital loss, has been adjusted against the
capital reserve/capital reserve on consolidation.
e.
For Audit Qualification(s) where the impact is not quantified by the auditor (with respect to II(a)(1) above:
(i) Management’s estimation on the impact of audit qualification:
Not Determinable
(ii)
If management is unable to estimate the impact, reasons for the same:
With respect to Item II(a)(1) Management view is set out in note 8 to the Consolidated Financial Results, as below:
The Reliance Group of companies of which the Company is a part, supported an independent company in which the
Company holds less than 2% of equity shares (“EPC Company”) to inter alia undertake contracts and assignments
for the large number of varied projects in the fields of Power (Thermal, Hydro and Nuclear), Roads, Cement,
Telecom, Metro Rail, etc. which were proposed and/or under development by the Reliance Group. To this end
along with other companies of the Reliance Group the Company funded EPC Company by way of project advances,
subscription to debentures and inter corporate deposits. The total exposure of the Company as on March 31, 2020
is ` 8,066.08 Crore net of provision of ` 3,972.17 Crore. The Company has also provided corporate guarantees
aggregating of ` 1,775 Crore.
The activities of EPC Company have been impacted by the reduced project activities of the companies of the
Reliance Group. While the Company is evaluating the nature of relationship; if any, with the independent EPC
Company, based on the analysis carried out in earlier years, the EPC Company has not been treated as related party
Given the huge opportunity in the EPC field particularly considering the Government of India’s thrust on
infrastructure sector coupled with increasing project and EPC activities of the Reliance Group, the EPC Company
with its experience will be able to achieve substantial project activities in excess of its current levels, thus enabling
the EPC Company to meet its obligations. The Company is reasonably confident that the provision will be adequate
to deal with any contingency relating to recovery from the EPC Company.
During the period, the Company has provided corporate guarantees of ` 4,895.87 Crore on behalf of certain
companies towards their borrowings. As per the reasonable estimate of the management of the Company, it does
not expect any obligation against the above guarantee amount
(iii) Auditors’ Comments on (i) or (ii) above:
Impact is not determinable.
III
Signatories:
Punit Garg
Sridhar Narasimhan
Manjari Kacker
(Executive Director and Chief Executive Officer)
(Chief Financial Officer)
(Audit Committee Chairperson)
Statutory Auditors
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No:107783W/W100593
Vishal D Shah
Partner
Membership No. 119303
UDIN: 20119303AAAABP2371
Place: Mumbai
Date: May 8, 2020
241
Reliance Infrastructure Limited
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NOTES
245
Reliance Infrastructure Limited NOTES
246
Reliance Infrastructure Limited NOTES
247
Reliance Infrastructure Limited