Annual Report
2020-21
Padma Vibhushan
Shri Dhirubhai H. Ambani
(28th December, 1932 - 6th July, 2002)
Reliance Group - Founder and Visionary
Reliance Infrastructure Limited
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. Manjari Kacker
Ms. Ryna Karani
Key Managerial Personnel
Shri Pinkesh Shah
- Chief Financial Officer
Notice of Annual General Meeting ............................................ 04
Directors’ Report .......................................................................... 11
Management Discussion and Analysis ....................................... 26
Business Responsibility Report ................................................... 36
Corporate Governance Report .................................................... 45
Shri Paresh Rathod
- Company Secretary &
Investor Information .................................................................... 65
Compliance Officer
Auditors
M/s. Chaturvedi & Shah LLP
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 4662
Email : rinfra.investor@relianceada.com
Website: www.rinfra.com
Independent Auditors' Report on the
Financial Statement ..................................................................... 74
Balance Sheet .............................................................................. 82
Statement of Profit and Loss...................................................... 83
Statement of Changes in Equity ................................................ 84
Cash Flow Statement .................................................................. 86
Notes to Financial Statement .................................................... 88
Independent Auditors’ Report on the
Consolidated Financial Statement ............................................144
Registrar and Transfer Agent
Consolidated Balance Sheet .....................................................150
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 309 4001
Tel. no.
Fax no.
Email
: +91 40 6716 1500
: +91 40 6716 1791
:
rinfra@kfintech.com
Consolidated Statement of Profit and Loss.............................151
Consolidated Statement of Changes in Equity .......................152
Consolidated Cash Flow Statement .........................................154
Notes to Consolidated Financial Statement ...........................157
Statement containing salient features of the
financial statements of Subsidiaries/Associates/
Joint Ventures .............................................................................241
92nd Annual General Meeting on Tuesday, September 14, 2021 at 2.00 P.M. (IST)
through Video Conferencing (VC) / Other Audio Visual Means (OAVM)
This Annual Report can be accessed at www.rinfra.com.
3
Notice
NOTICE is hereby given that the 92nd Annual General Meeting
(AGM) of the Members of Reliance Infrastructure Limited
will be held on Tuesday, September 14, 2021 at 2.00 P.M.
(IST) through Video Conference (VC) / Other Audio Visual Means
(OAVM) facility to transact the following business:
Ordinary Business:
1.
To consider and adopt:
(a)
(b)
the audited financial statement of the Company
for the financial year ended March 31, 2021 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,
2021 and the report of the Auditors thereon.
2.
To appoint a Director in place of Shri Punit Garg
(DIN: 00004407), who retires by rotation under the
provisions of the Companies Act, 2013 and being eligible,
offers himself for re-appointment.
Special Business:
3.
Remuneration to the Cost Auditors:
To consider and, if thought fit, to pass, the following
resolution as an Ordinary Resolution:
to
the provisions of
“RESOLVED THAT pursuant
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
Talati & Associates, Cost Accountants (Firm Registration
Number R/00097), 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, 2022,
be paid remuneration of ` 25,000 (Rupees twenty five
thousand only) plus applicable taxes and out of pocket
expenses, if any.
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.”
4. Reclassification of the Authorised Share Capital of the
Company:
To consider and, if thought fit, to pass, the following
resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section
13, 61, 64 and other applicable provisions, if any, of the
Companies Act, 2013 (the “Act”) and the Rules made
thereunder (including any statutory modification(s) or
re-enactment(s) thereof, for the time being in force)
and in accordance with the provisions of the Articles of
Association of the Company and subject to any approval
/ consent / permission / sanction, as may be required
from any authority / others, approval of the Members
be and is hereby accorded for reclassification of the
existing authorized share capital of the Company from
` 20,50,06,00,000 (Rupees Two Thousand Fifty Crores
Six Lakh) comprising 45,00,60,000 Equity Shares of `10
each, 1,55,00,00,000 Redeemable Preference Shares of
4
` 10 each, 80,00,000 Equity Shares of `10 each, with
differential rights (differential rights as to dividend, voting
or otherwise) and 4,20,00,000 Unclassified Shares of
` 10 each to ` 20,50,06,00,000 (Rupees Two Thousand
Fifty Crores Six Lakh) comprising 194,00,60,000 Equity
Shares of `10 each, 10,00,00,000 Preference Shares of
` 10 each, 1,00,00,000 Equity Shares of `10 each with
differential rights (differential rights as to dividend, voting
or otherwise).
RESOLVED FURTHER THAT the Memorandum of
Association of the Company be accordingly altered by
substituting the existing Clause V with the following:
’V.
The Authorised Share Capital of the Company is
` 20,50,06,00,000 (Rupees Two Thousand Fifty
Crores Six Lakh) comprising 194,00,60,000 Equity
Shares of ` 10 each, 10,00,00,000 Preference
Shares of ` 10 each, 1,00,00,000 Equity Shares of
` 10 each with differential rights (differential rights
as to dividend, voting or otherwise); with power to
increase or reduce the capital of the Company and/
or the nominal value of the shares and to divide the
shares in the capital for the time being into several
classes and to attach thereto respectively such
preferential, deferred, qualified or special rights,
privileges or conditions with or without voting rights
as may be determined by or in accordance with
the Articles of Association of the Company or as
may be decided by the Board of Directors or by
the Company in General Meeting, as applicable, in
conformity with the provisions of the Act and to
vary, modify, amalgamate or abrogate any such
rights, privileges or conditions and to consolidate
or sub-divide the shares and issue shares of higher
or lower denominations in such manner as may
for the time being be provided by the Articles of
Association of the Company.’
RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorized to do and
perform or cause to be done all such acts, deeds, matters
and things as may be required or deemed necessary or
incidental thereto and to settle, approve, ratify and finalise
all issues that may arise in this regard, without further
referring to the members of the Company and to delegate
all or any of the powers or authorities herein conferred to
any Director(s) or other official(s) of the Company and to
do all necessary and incidental acts to give effect to this
resolution.”
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 28, 2021
Reliance Infrastructure Limited
Notice
Notes:
1.
2.
Statement pursuant to Section 102(1) of the Companies
Act, 2013 (“the Act”), in respect of the Special Business
to be transacted at the Annual General Meeting (“AGM”)
is annexed hereto.
5.
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, April 13, 2020 and January 13, 2021 (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, Securities
and Exchange Board of India (SEBI) (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“the
Listing Regulations”) and MCA Circulars, the AGM of the
Company is being held through VC / OAVM.
3.
Since the AGM is being held 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:
In terms of the provisions of Section 152 of the Act, at
the ensuing AGM, Shri Punit Garg, Executive Director of
the Company retires by rotation and being eligible, offers
himself for re-appointment.
The Board of Directors have recommended the re-
appointment of Shri Punit Garg.
none of the Director / Key Managerial Personnel of the
Company and their relatives are, in any way, concerned
or interested, financially or otherwise, in the resolution
set out at item No. 2 of the Notice.
In compliance with the aforesaid MCA Circulars and SEBI
Circulars dated May 12, 2020 and January 15, 2021
(collectively referred to as “Circulars”), Notice of the
AGM along with the Annual Report 2020-21 is being
sent only through electronic mode to those Members
whose email addresses are registered with the Company
or Central Depository Services (India) Limited (CDSL)
/ National Securities Depositories Limited (NSDL)
(“Depositories”). Members may note that the Notice
and Annual Report 2020-21 will also be available on
the Company’s website at 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 also on the website
of KFin Technologies Private Limieted (“KFintech”) at
www.kfintech.com.
6. Members whose email addresses are not registered
can register the same in the following manner so that
they can receive all communications from the Company
electronically:
a. Members holding share(s) in physical mode –
by registering their email ID on the Company’s
website at https://www.rinfra.com/web/rinfra/
shareholder-registration
b. Members holding share(s) in electronic mode - by
registering / updating their e-mail ID with their
respective Depository Participants (“DPs”).
Pursuant to the provisions of the Companies Act, 2013
read with Regulation 36 (3) of the Listing Regulations, the
relevant details of Shri Punit Garg are furnished hereunder:
7.
The Company has engaged the services of Kfintech as
the authorized agency for conducting of the e-AGM and
providing e-voting facility.
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 35 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 a member of the Audit
Committee, Stakeholders Relationship Committee, Risk
Management Committee and CSR Committee of the
Board of the Company.
He is also on the Board of Reliance Communications
Limited where he is a member of the Audit Committee,
Stakeholders Relationship Committee, Nomination and
Remuneration Committee and CSR Committee of the
Board.
As on March 31, 2021, Shri Punit Garg held 1,500
equity shares of the Company. He does not hold any
relationship with other Directors and Key Managerial
Personnel of the Company. Except Shri Punit Garg,
8. Members attending the AGM through VC / OAVM shall
be counted for the purpose of reckoning the quorum
under Section 103 of the Act.
9.
Since the AGM is being held through VC / OAVM, the
Route Map is not annexed in this Notice.
10. Relevant documents referred to in the accompanying
Notice calling the AGM are available on the website of
the Company for inspection by the Members.
11. Members are advised to refer to the section titled
‘Investor Information’ provided in this Annual Report.
12. As mandated by SEBI, effective from April 1, 2019,
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.
13. Members are requested to fill in and submit the
Feedback Form provided in the ‘Investor Relations’
section on the Company’s website at www.rinfra.com to
aid the Company in its constant endeavor to enhance the
standards of service to investors.
5
Reliance Infrastructure Limited
Notice
14.
a.
b.
c.
Instructions for attending the AGM and e-voting are as
follows:
g.
In compliance with the provisions of Section 108 of the
Act, read with Rule 20 of the Companies (Management
and Administration) Rules, 2014, as amended from time
to time 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,
September 7, 2021 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,
September 10, 2021 to 5:00 P.M. (IST) on Monday,
September 13, 2021. At the end of remote e-voting
period, the facility shall forthwith be blocked.
Pursuant to SEBI circular No. SEBI/ HO/CFD/CMD/
CIR/P/2020/242 dated December 9, 2020 on “e-voting
facility provided by Listed Companies”, which is effective
from June 9, 2021, e-voting process has been enabled
for all the individual demat account holders, by way of
single login credential, through their demat accounts /
websites of Depositories / DPs in order to increase the
efficiency of the voting process.
Individual demat account holders would be able to
cast their vote without having to register again with
the e-Voting Service Provider (ESP) thereby not only
facilitating seamless authentication but also ease and
convenience of participating in e-Voting process. Members
are advised to update their mobile number and e-mail ID
with their DPs to access e-Voting facility.
d.
The voting rights of the Members shall be in proportion
to the number of share(s) held by them in the equity
share capital of the Company as on the cut-off date being
Tuesday, September 7, 2021.
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.
Any person holding shares in physical form and non-
individual shareholders, who become a member of the
Company after sending of the Notice and hold shares as
of the cut-off date, may obtain the login ID and password
by sending a request to KFintech at praveendmr@
kfintech.com. However, if he/she is already registered
with KFintech for remote e-Voting, then he/she can use
his/her existing User ID and password for casting the
e-vote.
In case of Individual Members holding securities in demat
mode and who become a member of the Company after
sending of the Notice and hold share(s) as of the cut-
off date may follow steps mentioned below under “Login
method for remote e-Voting and joining virtual meeting
for Individual shareholders holding securities in demat
mode.”
e.
f.
6
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.
h.
The details of the process and manner for remote e-Voting
and e-AGM are explained herein below:
Part A - E-voting
I.
Access to Depositories e-Voting system in case of
individual Members holding shares in demat mode.
Type of
Members
Securities held
in demat mode
with NSDL
Login Method
1. User already registered for
IDeAS facility:
i. Visit URL: https://eservices.nsdl.
com
ii. Click on the “Beneficial Owner”
icon under “Login” under ‘IDeAS’
section.
iii. On the new page, enter User ID
and Password. Post successful
authentication, click on “Access
to e-Voting”
iv. Click on company name or
e-Voting Service Provider (ESP)
and you will be re-directed to
the ESP’s website for casting the
vote during the remote e-Voting
period.
2. User not registered for IDeAS
e-Services:
i. To register click on link :https://
eservices.nsdl.com
ii. Select
“Register Online
for
IDeAS” or click at https://
eservices.nsdl.com/SecureWeb/
IdeasDirectReg.jsp
iii. Proceed with completing the
required fields.
iv. Follow steps given in points 1
3. Alternatively,
directly
accessing the e-Voting website
of NSDL:
by
i. Open
URL:
https://www.
evoting.nsdl.com/
ii. Click on the icon “Login” which
is available under ‘Shareholder/
Member’ section.
iii. A new screen will open. You
will have to enter your User ID
(i.e. your sixteen digit demat
account number held with
NSDL), Password / OTP and a
Verification Code as shown on
the screen.
Reliance Infrastructure Limited
Notice
Type of
Members
Login Method
Securities held
in demat mode
with CDSL
iv Post successful authentication,
you will be requested to select
the name of the Company and
the ESP, i.e. KFintech.
v. On successful selection, you
will be redirected to KFintech
e-Voting page for casting your
vote during the remote e-Voting
period.
1. Existing users who has opted
for Easi / Easiest:
i. Visit URL: https://web.cdslindia.
or
com/myeasi/home/login
www.cdslindia.com
ii. Click on New System Myeasi
iii. Login with your registered User
ID and Password.
iv. The user will see the e-Voting
Menu. The Menu will have links
of ESP i.e. KFintech e-Voting
portal.
v. Click on
service
provider name to cast your vote.
e-Voting
2. User not registered for Easi /
Easiest:
i. Option to register is available
at
https://web.cdslindia.
c o m / m y e a s i / R e g i s t r a t i o n /
EasiRegistration
ii. Proceed with completing the
required fields.
iii. Follow the steps given in point 1.
3. Alternatively,
directly
accessing the e-Voting website
of CDSL:
by
i. Visit URL: www.cdslindia.com
ii. Provide your demat Account
Number and PAN No.
iii. System will authenticate user
by sending OTP on registered
Mobile and Email as recorded in
the demat Account.
iv. After successful authentication,
user will be provided with the
link for the respective ESP i.e.
KFintech where the e- Voting is
in progress.
Type of
Members
Login through
Depository
Participant
Website where
demat account
is held
Login Method
i You can also login using the
login credentials of your demat
your DP
account
registered with NSDL /CDSL for
e-Voting facility.
through
ii Once logged-in, you will be
able to see e-Voting option.
Once you click on e-Voting
option, you will be redirected
to NSDL / CDSL Depository site
after successful authentication,
wherein you can see e-Voting
feature.
iii Click on options available against
Reliance Infrastructure or ESP
– KFintech and you will be
redirected to e-Voting website
of KFintech for casting your
vote during the remote e-Voting
period without any
further
authentication.
Important note: Members who are unable to retrieve
User ID / Password are advised to use Forgot user ID and
Forgot Password option available at respective websites.
Helpdesk for Individual Shareholders holding securities
in demat mode for any technical issues related to login
through Depository i.e. NSDL and CDSL.
Login type
Helpdesk details
Securities held
with NSDL
Securities held
with CDSL
Please contact NSDL helpdesk by
sending a request at evoting@nsdl.
co.in or call at toll free no.: 1800
1020 990 and 1800 224 430
Please contact CDSL helpdesk by
sending a request at helpdesk.
evoting@cdslindia.com or call at
022 - 2305 8738 or 022-2305
8542 - 43
II.
Access to KFintech e-Voting system in case of
shareholders holding shares in physical form and
non-individual shareholders in demat mode
(a) Members whose email IDs are registered with the
Company/ DPs, will receive an email from KFintech
which will include details of E-Voting Event Number
(EVEN), USER ID and password. They will have to
follow the following process:
i.
ii.
Launch internet browser by typing the URL: https://
emeetings.kfintech.com/
Enter the login credentials (i.e. User ID and password).
In case of physical folio, User ID will be EVEN (E-Voting
Event Number) xxxx, followed by folio number. In case
of Demat account, User ID will be your DP ID and
Client ID. However, if you are already registered with
7
Reliance Infrastructure Limited
Notice
KFintech for e-voting, you can use your existing User ID
and password for casting the vote.
above-mentioned documents should be in the naming
format “Corporate Name_Even No.”
iii.
iv.
v.
vi.
After entering these details appropriately, click on
“LOGIN”.
You will now reach password change menu wherein you
are required to mandatorily change your password. The
new password shall comprise of minimum 8 characters
with at least one upper case (A- Z), one lower case
(a-z), one numeric value (0-9) and a special character
(@,#,$, etc.,). The system will prompt you to change
your password and update your contact details like
mobile number, email ID, etc. on first login. You may
also enter a secret question and answer of your choice to
retrieve your password in case you forget it. It is strongly
recommended that you do not share your password with
any other person and that you take utmost care to keep
your password confidential.
You need to login again with the new credentials.
On successful login, the system will prompt you to select
the “EVEN” i.e., ‘Reliance Infrastructure Limited- AGM”
and click on “Submit”
vii. On the voting page, enter the number of share(s) (which
represents the number of votes) as on the Cut-off Date
under “FOR/AGAINST” or alternatively, you may partially
enter any number in “FOR” and partially “AGAINST” but
the total number in “FOR/ AGAINST” taken together shall
not exceed your total shareholding as mentioned herein
above. You may also choose the option ABSTAIN. If the
member does not indicate either “FOR” or “AGAINST” it
will be treated as “ABSTAIN” and the shares held will not
be counted under either head.
(b) Members whose email IDs are not registered with the
Company/DPs, and consequently the Annual Report,
Notice of AGM and e-voting instructions cannot be
serviced, will have to follow the following process:
i.
Temporarily get their email address and mobile number
provided with KFintech, by sending an e-mail to
evoting@kfintech.com.
ii.
Members are requested to follow the process as guided
to capture the email address and mobile number for
sending the soft copy of the notice and e-voting
instructions along with the User ID and Password. In
case of any queries, member may write to einward.ris@
kfintech.com.
Alternatively, member may send an e-mail request
at the email ID einward.ris@kfintech.com along with
scanned copy of the signed request letter providing
the email address, mobile number, self-attested PAN
copy and Client Master copy in case of electronic folio
and copy of share certificate in case of physical folio
for sending the Annual report, Notice of AGM and the
e-voting instructions.
iii.
After receiving the e-voting instructions, please follow
all steps above to cast your vote by electronic means.
Part B – Access to join virtual meetings (e-AGM) of the
Company on KFintech system to participate in e-AGM and
vote thereat.
Instructions for all the Members for attending the AGM of the
Company through VC/OAVM and e-Voting during the meeting.
viii. Members holding multiple folios/demat accounts shall
choose the voting process separately for each folio/
demat accounts.
i.
Voting has to be done for each item of the notice
separately. In case you do not desire to cast your vote
on any specific item, it will be treated as abstained.
You may then cast your vote by selecting an appropriate
option and click on “Submit”.
A confirmation box will be displayed. Click “OK” to
confirm else “CANCEL” to modify. Once you have voted
on the resolution(s), you will not be allowed to modify
your vote. During the voting period, members can
login any number of times till they have voted on the
Resolution(s).
(i.e. other
Corporate/Institutional Members
than
Individuals, HUF, NRI, etc.) are also required to send
scanned certified true copy (PDF Format) of the
Board Resolution/Authority Letter etc., authorizing
its representative to attend the AGM through VC /
OAVM on its behalf and to cast its vote through remote
e-voting together with attested specimen signature(s) of
the duly authorized representative(s), to the Scrutinizer’s
email ID scrutinizeragl@gmail.com with a copy marked
to praveendmr@kfintech.com. The scanned image of the
ix.
x.
xi.
xii.
8
Member will be provided with a facility to attend the
AGM through VC / OAVM platform provided by KFintech.
Members may access the same at https://emeetings.
kfintech.com/ by using the e-voting login credentials
provided in the email received from the Company/
KFintech. After logging in, click on the Video Conference
tab and select the EVEN of the Company. Click on the
video symbol and accept the meeting etiquettes to join
the meeting. Please note that the 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 above.
ii.
Facility for joining AGM though VC/ OAVM shall open
at least 15 minutes before the time scheduled for the
Meeting.
iii. Members are encouraged to join the Meeting through
Laptops / Desktops with Google Chrome (preferred
browser), Safari, Internet Explorer, Microsoft Edge,
Mozilla Firefox 22.
iv. Members will be required to grant access to the
webcam to enable VC / OAVM. Further, Members
connecting from Mobile Devices or Tablets or through
Laptop connecting via Mobile Hotspot may experience
Reliance Infrastructure Limited
Notice
Audio/Video loss due to fluctuation in their respective
network. It is therefore recommended to use stable Wi-
Fi or LAN connection to mitigate any kind of aforesaid
difficulties.
As the AGM is being conducted through VC / OAVM,
for the smooth conduct of proceedings of the AGM,
members are encouraged to express their views / send
their queries in advance mentioning their name, demat
account number / folio number, email ID, mobile
number at: https://evoting.kfintech.com. Queries
received by the Company till Monday, September 13,
2021 (5.00 P.M. IST) shall only be considered and
responded during the AGM.
The members who have not cast their vote through
remote e-voting shall be eligible to cast their vote
through e-voting system available during the AGM.
E-voting during the AGM is integrated with the VC /
OAVM platform. The members may click on the voting
icon displayed on the screen to cast their votes.
A member can opt for only single mode of voting i.e.,
through remote e-voting or voting at the AGM. Once
the vote on a resolution(s) is cast by the member, the
member shall not be allowed to change it subsequently.
v.
vi.
vii.
viii. Facility of joining the AGM through VC / OAVM shall
be available for 1000 members on first come first serve
basis. However, the participation of members holding 2%
or more shares, Promoters, and 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.
The members who wish to speak during the meeting
may register themselves as speakers for the AGM to
express their views. They can visit and login through
the user ID and password provided by KFintech. On
successful login, select ‘Speaker Registration’. The
Company reserves the right to restrict the speakers at
the AGM to only those members who have registered
themselves, depending on the availability of time for
the AGM.
In case of any query and/or grievance, in respect of
voting by electronic means, members may refer to
the Help and Frequently Asked Questions (FAQs) and
E-voting user manual available at the download section
of https://evoting.kfintech.com (KFintech Website) or
send e-mail at evoting@kfintech.com or call KFintech’s
toll free no. 1800-309-4001.
ix.
x.
xi.
1.
Example for NSDL:
MYEPWD IN12345612345678
2.
Example for CDSL:
MYEPWD 1402345612345678
3.
Example for Physical:
MYEPWD XXXX1234567890
ii.
If e-mail address or mobile number of the member
is registered against Folio No. / DP ID Client ID,
then on the home page of https://evoting.kfintech.
com/, the member may click “Forgot Password”
and enter Folio No. or DP ID Client ID and PAN to
generate a password.
xii. Members who may require any technical assistance
or support before or during the AGM are requested to
contact KFintech at toll free number 1800-309-4001 or
write to them at evoting@kfintech.com.
15. 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.kfintech.com.
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 28, 2021
Item No. 3: Remuneration to the Cost Auditors
The Board of Directors has, on the recommendation of the Audit
Committee, approved the appointment and remuneration of
M/s. Talati & Associates, Cost Accountants (Firm Registration No.
R/00097), as the Cost Auditors for audit of the cost accounting
records of the Company for the financial year ending March
31, 2022, at a remuneration of ` 25,000 (Rupees twenty
five thousand only) plus applicable taxes and out-of-pocket
expenses.
In case a person has become a member of the Company
after dispatch of AGM Notice but on or before the cut-
off date for E-voting, he/she may obtain the User ID
and Password in the manner as mentioned below:
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.
i.
If the mobile number of the member is registered
against Folio No./ DP ID Client ID, the member
may send SMS: MYEPWD E-Voting
Event Number + Folio No. or DP ID Client ID to
9212993399
None of the Directors, and/or Key Managerial Personnel
of the Company and/or their relatives are deemed to be,
concerned or interested financially or otherwise in this
resolution set out at Item no. 3 of the Notice except to the
extent of their shareholding, if any.
9
Reliance Infrastructure Limited
Notice
The Board accordingly recommends the Ordinary Resolution
set out at Item No. 3 of the accompanying Notice for
approval of the Members.
concerned or interested, financially or otherwise in the said
resolution set out at Item no.4 of the Notice except to the
extent of their shareholding, if any.
Item No.4: Reclassification of the Authorised Share Capital
of the Company
Considering the business plan and future fund requirements
of the Company, it is proposed to reclassify the unused and
unclassified capital components of the existing authorised
share capital of the Company and accordingly, the capital
clause of the Memorandum of Association of the Company
is proposed to be altered as per the resoluation set out under
Item no. 4 of the accompanying notice.
The Board 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
Pursuant to the provision of Section 13 read with Section
61 of the Companies Act, 2013 (‘the Act’), approval of
the members through Ordinary Resolution is required for
amendment to the Memorandum of Association of the
Company relating to reclassification of the authorised share
capital.
None of the Directors and/or Key Managerial Personnel
of the Company and/or their relatives are deemed to be
Registered Office:
Reliance Centre, Ground Floor,
19, Walchand Hirachand Marg,
Ballard Estate, Mumbai 400 001
CIN:L75100MH1929PLC001530
Website:www.rinfra.com
May 28, 2021
10
Reliance Infrastructure Limited Directors’ Report
Dear Shareowners,
Your Directors present the 92nd Annual Report and the audited financial statements for the financial year ended March 31, 2021.
Financial performance and state of the Company’s affairs
The financial performance of the Company for the financial year ended March 31, 2021 is summarised below:
Particulars
Total Income
Gross Profit before depreciation
Depreciation and Amortisation
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, 2021
*Financial year ended
March 31, 2020
Standalone Consolidated
Standalone Consolidated
(` in crore)
2,522
(406)
59
354
(111)
(92)
-
(19)
303
-
284
-
-
17,665
914
1,352
126
(311)
(167)
-
(532)
(4,347)
3
-
-
-
284
(4,878)
3,339
1,061
65
-
996
(35)
-
1,031
(675)
3
359
-
56
303
20,977
2,330
1,389
(126)
815
(51)
-
771
(5,072)
16
-
5
56
(4,347)
*Figures of previous year have been regrouped and reclassified wherever required.
Financial Performance
During the year under review, your Company earned an income
of ` 2,522 crore against ` 3,339 crore in the previous year. The
Company incurred loss of ` 19 crore for the year as compared to
profit of ` 1,031 crore in the previous year.
The performance and financial position of the subsidiary
companies, associate companies and joint ventures are included
in the consolidated financial statement of the Company.
COVID 19 has impacted businesses across the globe and India
causing significant disturbance and slowdown of economic
activities. The Company’s operations during the year were
impacted due to COVID 19 and it has considered all possible
impact of COVID 19 in preparation of the financial statements,
including assessment of the recoverability of financial and
non financial assets based on the various internal and external
information and assumptions relating to economic forecasts up
to the date of approval of these financial results. The aforesaid
assessment 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.
The dividend distribution policy of the Company is uploaded
on the Company’s website at the link https://www.rinfra.
com/documents/1142822/10625710/RInfra_Dividend_
Distribution_Policy.pdf.
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.
Resources and Liquidity
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.
During the year, the Company has completed the sale of the
following assets:
i.
DA Toll Road Private Limited
The Company signed a binding Share Purchase
Agreement (SPA) with Cube Highways and Infrastructure
III Pte Ltd (Cube) for 100% equity stake sale of DA Toll
11
Reliance Infrastructure Limited
Directors’ Report
Road Private Limited (DATR) on March 14, 2019, for an
Enterprise Value of ~` 3,600 crore including equity or
equity linked instruments or debt of up to ` 1700 crore.
As per the SPA, the Company successfully completed
the sale of its 100% equity stake in DATR to Cube for a
total transaction enterprise value of ~` 3,600 crore. The
proceeds from the transaction were utilized entirely for
debt reduction of the Company.
ii.
Parbati Koldam Transmission Company Limited
The Company entered into the agreement for sale of
its entire 74% equity shares held in Parbati Koldam
Transmission Company Limited (PKTCL) to India Grid
Trust on November 28, 2020. The transaction was
completed on January 8, 2021 for a total transaction
enterprise value of ~` 900 crore. The proceeds from the
transaction were utilized entirely for debt reduction of
the Company.
iii.
Commercial Property
During the year, the Company successfully completed
the sale of its commercial property to YES Bank Limited
(YBL) for a transaction value of ` 1200 crore. For this
purpose, the Company and YBL had entered into a
Composite Transaction for Sale, Buyback, and Lease in
respect of the property whereby the Company would
have the option to buy back the property at the end of
8 years and 6 months and upon buyback, the Company
will simultaneously lease it to YBL for a period of 9
years. Entire proceeds from this sale were utilized to
repay the debt of YES Bank.
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, 2021.
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, 2021, 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 Statement has been prepared based on the financial
statements received from subsidiaries, associates and joint
ventures, as approved by their respective Board of Directors.
Directors
In terms of the provisions of the Act, Shri Punit Garg, Executive
Director of the Company retires by rotation and being eligible,
offers himself for re-appointment at the ensuing Annual
General Meeting.
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/1142822/1189698/Familiarisation_
programme.pdf. Based on the written representations received
from the directors as on March 31, 2021 taken on record by
the Board of Directors and the legal opinion obtained by the
Company, none of the directors is disqualified as on March 31,
2021 from being appointed as a director in terms of Section
164(2) of the Act.
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.
Particulars of Loans, Guarantees or Investments
Key Managerial Personnel
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.
Shri Pinkesh R Shah has been appointed as Chief Financial
Officer of the Company in the place of previous incumbent Shri
Sridhar Narasimhan with effect from May 8, 2020.
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, DA Toll Road Private Limited and
Parbati Koldam Transmission Company Limited ceased to be
subsidiaries of the Company.
Further, Reliance Naval and Engineering Limited ceased to be
an associate of the Company.
The summary of the performance and financial position of
each of the subsidiaries, associate companies and joint venture
companies is presented in Form AOC – 1. 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.
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
evaluation of its own performance, the performance of 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.
Pursuant to the Listing Regulations, performance evaluation of
Independent Directors was done by the entire board, excluding
the Independent Director being evaluated.
12
Reliance Infrastructure Limited
Directors’ Report
A separate meeting of the Independent Directors was also held
for the evaluation of the performance of Non-Independent
Directors, performance of the Board as a whole and that of the
Chairman of the Board.
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 also formulated the criteria for
determining qualifications, positive attributes and independence
of Directors. The Policy has been put up on the Company’s website
at https://www.rinfra.com/documents/1142822/10641881/
Remuneration-Policy.pdf.
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.
ii.
iii.
iv.
v.
vi.
In the preparation of the annual financial statement for
the financial year ended March 31, 2021, 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 judgements 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, 2021 and of the loss 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, 2021, 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.
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 (transactions where
the value involved exceeds 10% of the Company’s consolidated
gross income or 10% of the Company’s consolidated net worth,
whichever is higher), or which is required to be reported in Form
AOC – 2 in terms of section 134 (3)(h) read with Section 188 of
the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.
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 of 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,
2021, eight 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. The members of the
committee are Ms. Manjari Kacker, Shri S S Kohli, Shri K
Ravikumar, Ms. Ryna Karani, Independent Directors 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. Chaturvedi & Shah LLP, Chartered Accountants were
appointed as Statutory Auditors of the Company at the 91st
Annual General Meeting of the Company held on June 23,
2020, to hold office for a term of 5 consecutive years until the
conclusion of 96th Annual General Meeting of the Company.
The Company has received confirmation from M/s. Chaturvedi &
Shah LLP, Chartered Accountants that they are not disqualified
from continuing as Auditors of the Company.
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 Statement of Changes in
Equity and Note 40 to the Standalone Financial Statements
Notes on Accounts. It has been explained that:
(i)
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
13
Reliance Infrastructure Limited Directors’ Report
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, 2021 is ` 6,491.38 crore ( March 31, 2020:
` 8,066.08 crore) net of provision of ` 3,972.17 crore
(March 31, 2020, ` 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.
India’s
the Government of
Given the huge opportunity in the EPC field particularly
considering
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. Based on the
available facts, the provision made will be adequate to deal
with any contingency relating to recovery from the EPC
Company.
The Company has further 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.
(ii) During the year ended March 31, 2020 ` 3,050.98
Crore being the loss on invocation of pledge of shares of
RPower held by the Company 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 Parent 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 ended
March 31, 2020, 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 Company. Although this
being strategic investment and 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 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.
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.
No fraud has been reported by the Auditors to the Audit
Committee or the Board.
14
Cost Auditors
Pursuant to the provisions of Section 148 of the Act read with the
Companies (Audit and Auditors) Rules, 2014, the Board of Directors
have appointed M/s. Talati & Associates, Cost Accountants, as the
Cost Auditors of the Company for conducting the cost audit of the
Engineering & Construction Division and Power Generation Division
of the Company for the financial year ending March 31, 2022, 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
financial year ended March 31, 2021.
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 for the financial year ended
March 31, 2021. The Audit Report of the Secretarial Auditors of
the Company and its material subsidiaries for the financial year
ended March 31, 2021 are attached hereto as Annexure A1 to
A3.
Pursuant to Regulation 24A of the Listing Regulations, 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
copy of the same has been submitted with the Stock Exchanges
within the prescribed due date.
The observations and comments given by the Secretarial Auditor
in their Report are self-explanatory and hence do not call for any
further comments under Section 134 of the Act.
Annual Return
As required under Section 134 (3)(a) of the Act, the Annual Return
for the year 2020-21 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.
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
Reliance Infrastructure Limited
Directors’ Report
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 B 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 conforming 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
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/1142822/1189698/Rinfra_CSRPolicy_revised.
pdf.
The CSR Committee of the Board comprises 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 C.
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 weaknesses 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.
General
During the year under review there were no reportable events
in relation to issue of equity shares with differential rights as
to dividend, voting or otherwise, issue of sweat equity shares
to its Directors or Employees, proceedings pending under
the Insolvency and Bankruptcy Code, 2016 and one-time
settlement with any Bank or Financial Institution.
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
Anil Dhirubhai Ambani
Chairman
15
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
Place: Mumbai
Date : May 28, 2021
Reliance Infrastructure Limited Directors’ Report
Form No. MR-3
Secretarial Audit Report
For the financial year ended March 31, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Annexure – A1
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 reasonable basis for
evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.
Based on our verification of the 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, 2021 (“Audit
Period”) complied with the Statutory provisions listed hereunder
and also that the Company has proper Board-processes and
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 Reliance
Infrastructure Limited for the financial year ended on March 31,
2021, according to the provisions of the;
Companies Act, 2013 (the Act) and the Rules made
thereunder;
2.
The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the Rules made thereunder;
Depositories Act, 1996 and the Regulations and Bye-
law framed thereunder.
Foreign Exchange Management Act, 1999 and the rules
and regulations made there under to the extent of Foreign
Direct Investment and Overseas Direct Investment and
External Commercial Borrowings;
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’):-
a.
b.
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
1.
2.
3.
4.
5.
16
c.
d.
e.
f.
g.
h.
i.
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009;
The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999;
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act
and dealing with client;
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009;
and
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998;
The Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirement)
Regulations, 2015
We have also examined compliance with the applicable clauses
of the following;
1.
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, Stakeholders
Relationship Committee, Corporate Social Responsibility
Committee and Risk Management Committee).
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 and
Standards as mentioned above.
Further, based on the written representations received from the
directors as on March 31, 2021 taken on record by the Board
of Directors and the legal opinion obtained by the Company,
none of the directors is disqualified as on March 31, 2021
from being appointed as a director in terms of Section 164(2)
of the Act.
We further report that:
The Board of Directors of the Company is duly constituted with
proper balance of Executive Director, Non-Executive Directors
and Independent Directors. There were no changes in the
composition of the Board of Directors during the period under
review.
Reliance Infrastructure Limited
We further report that during the audit period there were no
events/actions, which have a major bearing on the Company’s
affairs in pursuance of the above referred laws, rules,
regulations, guidelines and standards.
Directors’ Report
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.
All decisions at Board Meetings and Committee Meetings are
carried unanimously as recorded in the minutes of the Meetings
of the Board of Directors and Committees of the Board, as the
case may be.
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.
Place : Thane
Date : May 28, 2021
UDIN : F006988C000385146
For Ashita Kaul & Associates
Company Secretaries
Proprietor
FCS 6988/ CP 6529
17
Reliance Infrastructure Limited Directors’ Report
Secretarial Audit Report of BSES Rajdhani Power Limited
(Material Subsidiary of Reliance Infrastructure Limited)
Secretarial Audit Report
For the financial year ended March 31, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Annexure – A2
To,
The Members,
BSES Rajdhani Power Limited
BSES - Bhawan, Nehru Place
Delhi -110019
CIN: U40109DL2001PLC111527
Authorised Capital: ` 1,200 Crores
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to good
corporate practices by BSES Rajdhani Power Limited (herein
after 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 the 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 authorized 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, 2021 complied with the statutory
provisions listed hereunder and also that the Company has proper
Board-processes and compliance mechanism in place to the
extent, in the manner and subject to the reporting made herein
after:
We have examined the books, papers, minute books, forms and
returns filed and other records maintained by BSES Rajdhani
Power Limited for the financial year ended on March 31, 2021
according to the provisions of:
(i)
The Companies Act, 2013(the Act) and the rules made
there under;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made there under;
(Not Applicable since the company is not a Listed
Company)
(iii) The Depositories Act, 1996 and the Regulations and Bye-
laws framed there under;
(Not Applicable since the company is not a Listed
Company)
(iv) Foreign Exchange Management Act, 1999 and the rules
and regulations made there under to the extent of Foreign
Direct Investment, Overseas Direct Investment and
External Commercial Borrowings;
(There is no Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings in the
Company)
18
(v) The Regulations and Guidelines prescribed under the
Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’) viz.:-
(a)
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(Not Applicable since the company is not a Listed
Company)
(b)
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,1992;
(Not Applicable since the company is not a Listed
Company)
(c)
The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2009;
(Not Applicable since the company is not a Listed
Company)
(d)
The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999;
(Not Applicable since the company is not a Listed
Company)
(e)
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations,2008;
(Not Applicable since the company is not a Listed
Company)
(f)
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations,1993 regarding the Companies Act and
dealing with client;
(Not Applicable since the company is not a Listed
Company)
(g)
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009; and
(Not Applicable since the company is not a Listed
Company)
(h)
The Securities and Exchange Board of India (Buy
back of Securities) Regulations, 1998;
(Not Applicable since the company is not a Listed
Company)
(vi) and other applicable laws like Electricity Act,2003 ;Delhi
Electricity Reform Act 2000 ; The Indian Electricity
Rules,1956 ; National Electricity Policy ;Tariff Policy
The BSES Rajdhani Distribution and Retail Supply of
Reliance Infrastructure Limited
Directors’ Report
Electricity Licence; DERC (Terms and Condition for
Determination of Wheeling tariff and Retail Supply Tariff)
Regulation, 2011; DERC Supply Code and Performance
Standards Regulations, 2007 Delhi Electricity Regulatory
Commission Comprehensive;
(Conduct & Business)
Regulation, 2001 Tariff Orders; and examined compliance
with the applicable clauses of the following:
(i)
Secretarial Standards issued by The Institute of
Company Secretaries of India.
(Secretarial Standards have come into force with
effect from 1st July, 2015)
(ii)
The Listing Agreements entered into by the
Company with Stock Exchange.
(Not Applicable since the company is not a Listed
Company)
During the period under review the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above:
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 clarifications on the agenda
items before the meeting and for meaningful participation at
the meeting.
Majority decision is carried through the dissenting members’
views are captured and recorded as part of the minutes.
We further report that there are adequate systems and
processes in the company that commensurate with the size and
operations of the company to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
For T. Sharad & Associates
Company Secretaries
Sd/-
(F.C.S. Sharad Tyagi)
C.P. No. 6129
Place : New Delhi
Date : Tuesday, 27 April 2021
This report is to be read with our letter of even date which
is annexed as ‘Annexure A’ and forms an integral part of this
report.
‘Annexure A’
To,
The Members,
BSES Rajdhani Power Limited
BSES Bhawan, Nehru Place
Delhi-110019
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of
the management of the company. Our responsibility is to
express an opinion on these secretarial records based on
our audit.
2. We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the Secretarial records.
The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. We
believe that the processes and practices, we followed
provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness
of financial records and Books of Accounts of the company.
4. Where ever required, we have obtained the Management
representation about the compliance of laws, rules and
regulations and happening of events etc.
5.
6.
The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is
the responsibility of management. Our examination was
limited to the verification of procedures on test basis.
The Secretarial Audit report is neither an assurance as to
the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted
the affairs of the Company.
For T. Sharad & Associates
Company Secretaries
Sd/-
(F.C.S. Sharad Tyagi)
C.P. No. 6129
Place : New Delhi
Date : Tuesday, 27 April 2021
19
Reliance Infrastructure Limited
Directors’ Report
Secretarial Audit Report of BSES Yamuna Power Limited
(Material Subsidiary of Reliance Infrastructure Limited)
Form No. MR-3
Secretarial Audit Report
For the financial year ended March 31, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Annexure – A3
To,
The Members,
BSES Yamuna Power Limited
Shakti Kiran Building, Karkardooma,
New Delhi-110092.
We have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to good
corporate practices followed by BSES Yamuna Power Limited
(CIN U40109DL2001PLC111525) 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 the Company’s books, papers, minute
books, forms and returns filed and other records maintained by the
Company and also the information and explanation provided by
the Company, its officers 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, 2021
complied with the statutory provisions listed hereunder and also
that the Company has proper board processes and 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, 2021 and made available to
us, according to the provisions as under:
(i)
(ii)
(iii)
The Companies Act, 2013 read with its rules, notifications
and circulars made there under;
The Depositories Act, 1996 and the Regulations and Bye-
laws framed there under;
The Memorandum of Association and the Articles of
Association of the company ;
(iv) Secretarial Standards as issued by The Institute of Company
Secretaries of India, as notified and duly amended;
(v) We further report that, having regard to the compliance
system and mechanism formed and prevailed in the
Company by implementation of IT enabled legal support
Compliance Management System to check the compliance
of various laws, orders, notifications, agreements etc.
as applicable to the Company and representation and
certificates provided by its departments on the same and
our examination of relevant documents/records as provided
in pursuant thereof on our test check basis, the Company
has adequate system of compliances for the following
applicable laws:
1.
2.
3.
4.
The Electricity Act, 2003 and Rules made thereunder;
National Tariff Policy;
Indian Electricity Grid Code (IEGC) Regulation;
Direction issued by Delhi Electricity Regulatory
Commission;
20
5.
6.
7.
8.
Direction issued by Central Electricity Regulatory
Commission;
The Electricity Act, 2003 and The Central Electricity
Authority (Measures relating to Safety and Electric
Supply) Amendment Regulations;
The Delhi Fire Service Act 2007 and The Delhi Fire
Service Rules 2010;
The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
and Rules made there under;
9.
The Information Technology Act, 2000;
10. Payment of Gratuity Act 1972 and Payment of
Gratuity (Delhi) Rules, 1973;
11. Employee Provident
fund and Miscellaneous
Provision Act, 1952;
12. The Payment of Bonus Act, 1965 and the Payment
of Bonus Rules, 1971;
13. Childs Labour (Prohibition and Regulation Act) 1986;
14. The Environment (Protection) Act, 1986 and Rules
made thereunder;
15. The Minimum Wages Act,1948 and Rules made
thereunder;
16. The Micro, Small and Medium Enterprises
Development Act, 2006;
17. Employees Deposit- Linked Insurance Scheme
1975;
18. Employees Pension Scheme, 1995 and Rules made
thereunder;
19. The Environment (Protection) Act, 1986 and The
e-waste (Management and Handling) Rules, 2016;
20. The Environment(Protection) Act, 1986 and
Hazardous Wastes (Management, Handling) Rules,
2016;
21. Apprentices Act 1961 and Rules made there under;
22. The Delhi Shops and establishment Act, Rules 1954;
23. The Indian Standard Code of Practice for Selection,
Installation and Maintenance of Portable First Aid
Fire Extinguishers.
24. The Employees’ Compensation Act 1923 and The
Workman’s Compensation Rules, 1924.
25. The Cigarette and Other Tobacco Products
(Prohibition of Advertisement and the Regulation
of Trade and Commerce, Production, Supply and
Distribution) Act, 2003 and the Prohibition of
Smoking in Public Places Rules, 2008.
26. Shareholder Agreement and Licenses issued;
Reliance Infrastructure Limited
Directors’ Report
We further report that the Composition of Board of Directors of
the Company is duly constituted with proper balance of Directors,
Women Director and Independent Directors as per the provisions
of Companies Act, 2013 and Shareholders Agreement.
Adequate notices were given to all the Directors to schedule the
Board Meetings, agenda and detailed notes on agenda were sent
in advance, and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the
meeting and for meaningful participation at the meeting.
As per the minutes of the meetings duly recorded and signed by
the chairperson and the decision of the board were unanimous
and no dissenting views have been recorded.
We further report that the compliance made by the Company
under applicable financial laws like Direct and Indirect Tax Laws
and maintenance of financial records, books of accounts and
internal financial control has not been reviewed in this audit since
the same have been subject to review by statutory financial audit
and other designated professionals.
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 pursuant to compliance of section 134(3)
(p) and other applicable provisions of the Companies Act, 2013
read with applicable rules as amended from time to time, a
Separate Meeting of Independent Directors of Company was
held wherein a formal annual performance evaluation of all
the Directors of the Company, its committees and board as a
whole was carried out as per the policy for the evaluation of
the performance by the Board during the financial Year under
the audit.
We further report that during the period under review there were
no such specific events/actions occurred those have a major
impact on the Company’s affairs.
We further report that during the audit period, there were no
instances of:
I.
Public / Rights / Preferential Issue of Shares /Debentures
/ Sweat Equity.
II.
Redemption / Buy-back of Securities.
III. Merger / Amalgamation / Reconstruction etc.
IV.
Foreign technical collaborations.
Annexure - A
To
The Members,
BSES Yamuna Power Limited
Shakti Kiran Building, Karkardooma,
New Delhi- 110092.
Subject: Our report of even date is to be read along with this
letter.
1. Maintenance of secretarial record is the responsibility of
the management of the company. Our responsibility is to
express an opinion on these secretarial records based on
our audit.
2. We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the secretarial records.
The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. We
believe that the processes and practices, we followed
provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness
of financial records and Books of Accounts of the company.
4. Where ever required, we have obtained the Management
representation about the compliance of laws, rules and
regulations and happening of events etc.
5.
6.
The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is the
responsibility of management our examination was limited
to the verification of procedures on test basis.
The Secretarial Audit report is neither an assurance as to
the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted
the affairs of the company.
For A. K. VERMA & CO
(Practicing Company Secretaries)
Place : New Delhi
Date : 13 April, 2021
ASHOK KUMAR VERMA
(Senior Partner)
FCS: 3945
CP NO: 2568
UDIN NO F003945C000078965
Place : New Delhi
Date : 13 April, 2021
This Report is to be read with our letter of even date which is
Annexed as (Annexure – A) and forms an integral part of this
Report.
For A. K. VERMA & CO
(Practicing Company Secretaries)
ASHOK KUMAR VERMA
(Senior Partner)
FCS: 3945
CP NO: 2568
UDIN NO F003945C000078965
21
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-B
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 a 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
` 84.53 crore
` 66.47 crore
22
Reliance Infrastructure Limited
Directors’ Report
Annual Report on Corporate Social Responsibilities (CSR) Activities
1.
Brief outline on CSR Policy of the Company
Annexure -C
Reliance Infrastructure Limited (‘Reliance Infrastructure’) 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.
2.
Composition of CSR Committee
Name of Director
Sr.
No.
Designation / Nature of
Directorship
No. of meetings of CSR
Committee held during
the year
No. of meetings of CSR
Committee attended
during the year
1 Ms. Ryna Karani (Chairperson)
Independent Director
2
3
4
Shri S S Kohli
Shri K Ravikumar
Shri Punit Garg
Independent Director
Independent Director
Executive Director
1
1
1
1
1
1
1
1
3.
Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the Board are
disclosed on the website of the Company
Our CSR policy is placed on our website at the link – https://www.rinfra.com/documents/1142822/1189698/Rinfra_
CSRPolicy_revised.pdf
4.
Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
Not Applicable.
5.
Details of the amount available for set off in pursuance of sub-rule (3) of Rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any:
Financial Year
Sr.
No.
Amount available for set-off from
preceding financial years (in `)
Amount required to be set-off for the
financial year, if any (in `)
6.
Average net profit of the Company as per section 135(5)
Loss of ` 1,733.26 crore
Nil
7.
(a) Two percent of average net profit of the Company as per section 135(5)
Not Applicable in view of the losses
(Loss of ` 34.67 crore)
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.
Nil
(c) Amount required to be set off for the financial year, if any: Nil
(d) Total CSR obligation for the financial year (7a+7b-7c): Nil
8.
(a) CSR amount spent or unspent for the financial year:
Total Amount
Spent for the
Financial Year
(in `)
Total Amount transferred to
Unspent CSR Account as per
Section 135(6)
Amount Unspent (in `)
Amount transferred to any fund specified under
Schedule VII as per second proviso to Section 135(5)
Amount
Date of transfer Name of the fund
Amount
Date of transfer
Nil
23
Reliance Infrastructure Limited
Directors’ Report
(b) Details of CSR amount spent against ongoing projects for the financial year:
(1)
Sl.
No.
(2)
(3)
Name
of the
Project
Item from
the list of
activities
in Schedule
VII to the
Act
(4)
Local
area
(Yes/
No)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
Location of the
project
Project
Duration
State
District
Amount
allocated
for the
project
(in `)
Amount
transferred to
Unspent CSR
Account for the
project as per
Section 135(6)
(in `)
Amount
spent
in the
current
financial
year (in `)
Nil
Mode of
Implementation –
Direct (Yes/No)
Mode of Implementation – Through
Implementing Agency
Name
CSR Registration
number
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1)
Sr.
No.
(2)
Name
of the
Project
(3)
(4)
(5)
(6)
(7)
(8)
Item from the
list of activities
in Schedule VII
to the Act
Local area
(Yes/No)
Location of the
project
State
District
Nil
Amount spent
in the current
financial year
(in `)
Mode of
Implementation
– Direct (Yes/
No)
Mode of Implementation
– Through Implementing
Agency
Name
CSR
Registration
number
(d) Amount spent in Administrative Overheads: Nil
(e) Amount spent on Impact Assessment, if applicable: Not Applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): Nil
(g) Excess amount for set off, if any: Not Applicable
Sr.
No.
(i)
(ii)
(iii)
(iv)
Particular
Amount (in `)
Two percent of average net profit of the Company as per section 135(5)
Total amount spent for the Financial year
Excess amount spent for the financial year [(ii)-(i)]
Surplus arising out of the CSR projects or programmes or activities of the
previous financial years, if any
(v)
Amount available for set off in succeeding financial years [(iii)-(iv)]
9.
(a) Details of Unspent CSR amount for the preceding three financial years:
Sr.
No.
Preceding
Financial
Year
Amount transferred
to Unspent CSR
Account under
section 135(6)
(in `)
Amount
spent in the
reporting
Financial Year
(in `)
Amount transferred to any fund
specified under Schedule VII as
per section 135(6), if any
Name of
the Fund
Amount
(in `)
Date of
transfer
Amount remaining
to be spent in
succeeding financial
years (in `)
Nil
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Project
ID
Name
of the
Project
Financial Year
in which the
project was
commenced
Project
duration
Total
amount
allocated
for the
project
(in `)
Nil
Amount
spent on
the project
in the
reporting
Financial
Year (in `)
Cumulative
amount spent
at the end
of reporting
Financial Year
(in `)
Status of
the project –
Completed /
Ongoing
(1)
Sr.
No.
24
Reliance Infrastructure Limited
Directors’ Report
10.
In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through
CSR spent in the financial year (asset-wise details): No capital asset has been created or acquired during the financial
year.
(a) Date of creation or acquisition of the capital asset(s): NA
(b) Amount of CSR spent for creation or acquisition of capital asset: NA
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address
etc.: NA
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset):
NA
11. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per section 135(5).
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.
Date: May 28, 2021
Punit Garg
Executive Director and Chief Executive Officer
Ryna Karani
Chairperson CSR Committee
25
Reliance Infrastructure Limited
Management Discussion and Analysis
Forward Looking Statements
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
“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”, or
“Reliance Infrastructure” are to Reliance Infrastructure Limited
and its subsidiary companies and associates.
About Reliance Infrastructure Limited
is one of the
Infrastructure Limited
largest
Reliance
infrastructure companies, developing projects through various
Special Purpose Vehicles (SPVs) in several high growth
sectors such as power distribution, 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 2020-21 are furnished hereunder:
•
•
•
•
•
Total Income of ` 20,106 crore (US$ 2.75 billion)
Net Loss of ` 532.30 crore (US$ 72.81 million)
EBITDA of ` 5,784 crore (US$ 791.12 million)
Cash profit of ` 1,633 crore (US$ 223.37 miillion)
Consolidated Net Worth of ` 9,203 crore (US$ 1.26
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
26
and Contracts Division (the E&C Division) order book position
is at `14,890 crore (US$ 2.04 billion).
Fiscal Review
The Financials of the Company have been prepared in
accordance with the Companies (Indian Accounting Standards)
Rules 2015 (IndAS) prescribedunder Section 133 of the Act.
The Company’s total consolidated income for the year ended
March 31, 2021 was ` 20,106 crore (US$ 2.75 billion)
as compared to ` 22,376 crore (US$ 2.97 billion) in the
previous financial year.
The total income includes earnings from sale of electrical
energy of ` 16,381 crore (US$ 2.24 billion) as compared
to ` 17,336 crore (US$ 2.30 billion)in the previous financial
year.
During the year, interest expenditure was ` 2,727 crore (US$
372.96 million) as compared to ` 2,400 crore (US$ 318.67
million) in the previous year.
The capital expenditure during the year was ` 931 crore
(US$ 127.40 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, 2021 stood at ` 8,766 crore
(US$ 1.20 billion).
With a net worth of about ` 9,203 crore (US$ 1.26 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
Due to various asset monetization events and receipt of claims
against arbitration awards during the year, the Company has
repaid more than 35% of its outstanding debt.
These events have resulted in number of exceptional items
in statement of profit and loss and reduction in assets and
liabilities of the Company.
The key financial ratios including return on networth of the
current financial year are hence not comparable with the
previous year.
Monetisation of Assets and Debt Reduction
The Company has completed sale of 100% stake in Delhi
Agra (DA) Toll Road for Enterprise Value of ~ ` 3,600 crore,
sale of Parbati Koldam Transmission Company for Enterprise
Value of ~ ` 900 crore. The Company successfully completed
the sale of its commercial property at Santacruz, Mumbai,
to YES Bank Limited (YBL) for a transaction value of ` 1200
crore. For this purpose, the Company and YBL had entered
into a Composite Transaction for Sale, Buyback, and Lease in
respect of the property whereby the Company would have the
option to buy back the property at the end of 8 years and 6
months and upon buyback, the Company will simultaneously
lease it to YBL for a period of 9 years. Entire proceeds from
this sale were utilized to repay the debt of YES Bank. Further,
the Company has received arbitration awards for ` 190 crore
from Government of Goa and the entire receipts of the above
transaction are utilized for debt reduction. The Company has
paid ` 2,275 crore to the lenders through above monetization
Reliance Infrastructure Limited Management Discussion and Analysis
of assets / receipts of claims thereby reducing total debt
outstanding by more than 35%.
Operational and Financial Performance of Businesses
We present here under detail report of various business
divisions during 2020-21:
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.
vi.
Four laning and construction of twin tube six-lane
tunnel at Kashedighat, Maharashtra
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.
Following major projects are currently under execution by the
E&C Division.
i.
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). Civil works has already
started and most of the equipments are likely to be
delivered during 2021-22.
ii. 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 Reliance Infrastructure with Astaldi.
iii.
Versova- Bandra Sea Link
improvement of proposed
E&C contract for Design and Construction of Versova-
Bandra Sea Link including development of connectors
and
from
Maharashtra State Road Development Corporation
(MSRDC). This project is a joint venture of Reliance
Infrastructure with Astaldi.
junction
iv.
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.
v.
Six laning of highway from Bihar-Jharkhand Border
to Gorhar, Jharkhand
Reliance Infrastructure 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
Reliance Infrastructure 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“.
vii. Nagpur Mumbai Super communication expressway –
Package 7
Reliance Infrastructure 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.
B.
Delhi Power Distribution Companies
The Company has two material subsidiaries involved
in the electricity distribution in Delhi, they are BSES
Rajdhani Power Limited (BRPL) serving South and West
Delhi and BSES Yamuna Power Limited (BYPL) serving
East and Central Delhi (together called Delhi Discoms).
The year FY20-21, had been exceptional year due
to COVID-19 pandemic breakdown and imposition of
lockdown by the Govt. severely affecting the commercial
and industrial activities. During the year, Delhi Discoms
registered an aggregate income of ` 16,358 crore (BRPL
- ` 10,621 crore and BYPL - ` 5,737 crore) against
aggregate of ` 17,206 crore in the previous year (BRPL-
` 11,128 crore and BYPL - ` 6,079 crore), which is a
decrease of 4.9 per cent over last year. Overall aggregate
power purchase cost during the year FY2020-21 is
` 10,339 crore (BRPL - ` 7,022 crore and BYPL -
` 3,317 crore) from ` 11,994 crore (BRPL - ` 8,142
crore and BYPL - ` 3,852 crore) in the previous year, a
decrease of 13.8 per cent.
Other operating expenses are in line with cost control
objectives of Discoms, which was achieved by following
stringent budgetary control and rigorous monitoring of
all expenses and commercial processes. The aggregate
capital expenditure incurred during the year amounted to
` 735 crore (BRPL - ` 470 crore and BYPL - ` 265 crore)
for up-gradation, strengthening and modernization of the
distribution system. The aggregate net block including
Capital Work in Progress stood at ` 7,187 crore (BRPL -
` 4,752 crore and BYPL - ` 2,435 crore).
The total number of customer base in both Delhi
Discoms grew by 2.9 per cent to 45.1 lakhs (BRPL -
27.4 lakhs and BYPL -17.7 lakhs) in FY2020-21 from
43.8 lakhs (BRPL- 26.5 lakhs and BYPL - 17.3 lakhs) in
FY2019-20. During the year, Delhi Discoms maintained
27
Reliance Infrastructure Limited
Management Discussion and Analysis
the system reliability of over 99.9 per cent. Delhi DiscomsTransmission and Distribution (T&D) loss levels are comparable
to international benchmarks, BRPL achieved 7.21 per cent while BYPL achieved 7.98 per cent in FY2020-21.
During the year,as a result of reduced commercial and industrial activities due to reasons stated above, there is a
decrease in peak demand for Delhi Discoms to 4,254 MW which is 12.5% down from previous year peak demand of
4,864 MW
BRPL
BYPL
BSES Delhi Discoms (Total)
2020-21
2019-20
Variance
2020-21
2019-20
Variance
2020-21
2019-20
Variance
2,815
3,211
- 12.3%
1,439
1,653
-12.9%
4,254
4,864
-12.5%
Key Regulatory Updates
Some of the key regulatory highlights of FY2020-21
are as below-
•
•
•
•
•
•
Tariff recovered as per the DERC Tariff Order
dated 28.08.20 during the FY 2020-21.
Tariff was not decreased for FY 2020-21 despite
COVID-19 pandemic during the year.
DERC has requested MoP to permanently de-
allocate Delhi share of power from Dadri-I (840
MW), which has completed its PPA tenure. This
will strengthen our Petition for exit from PPA with
Dadri-I which is pending before CERC (matter
was reserved for judgment on 8th April 2021).
Detailed
representations were submitted by
BSES during April-June 2020 highlighting various
risks and difficulty arising due to outbreak of
COVID-19. DERC taking cognizance of BSES’s
submission, allowed relaxation in Supply Code
Regulations.
Power Purchase Adjustment Cost (PPAC) of
7.94% for BRPL and 7.43% for BYPL continued
till 31.03.2022
Delhi Discoms have filed petition for ARR for
FY21-22 and trueing up upto FY19-20 on
15.12.20 to DERC.
Measures taken due to COVID-19 to ensure
uninterrupted quality power supply
•
•
•
•
•
•
During lockdown, primary focus was on supplying
reliable and quality power
Operational teams were regrouped in a manner so
that exposure risk is divided and minimized
To supplement the operations, technical teams
from Business, Safety, Enforcement, Quality,
C&M departments were drawn into a Central pool
to manage smooth operations
Progressively deployment for all departments are
being scaled up towards normal
Delhi Discoms staff in all establishments provided
with sanitizers, masks, PPE kits and regularly
educated on social distancing and other aspects
as per Govt. norms/guidelines
Our social support and care team is providing
support to employees including education on
COVID -19 to their medical requirements and
even set up quarantine centers
•
•
Tie-up with hospitals for treatment of staff
affected from COVID -19
Vaccination of frontline workers in coordination
with DoP, Delhi Govt.
Consumer Services Digitization and Automation for
enhanced customer experience
•
•
•
•
•
•
•
•
•
Introduction of Virtual Service Centre concepts
Self-meter reading facility through WhatsApp
Contactless application processes through website
“Call Back” option for customer who cannot visit
our offices
“Appointment” facility prior to physical visit to
reduce waiting time
Instant payment acknowledgement through third
party payments like wallets
Dynamic pay now button provision in the e-bill
SMS link based bill download & payment facility
Recharge of smart pre-paid meters through
website and mobile wallets
Awards and Accolades
Delhi Discoms have been recognized at various national
and international forums and won prestigious awards
for their exemplary performance and best practices
in distribution business, corporate governance, green
initiatives, HR initiatives, CSR programs and safety
practices.
Key awards won by BRPL in FY20-21 are
•
•
•
•
•
•
National Award
Excellence
Management – First position (ICMAI)
for
in Cost
Golden Peacock Award 2020 (Institute of
Directors)
International Safety Award 2020 (British Safety
Council)
Green Energy Award
Commerce - ICC)
(Indian Chamber of
TISS CLO Award 2020(Tata Institute of Social
Science)
Golden Globe Tigers Award - CSR (World HRD
Congress)
28
Reliance Infrastructure Limited
Management Discussion and Analysis
•
•
•
•
•
•
•
•
•
Best Smart Grid Project in India by Utility (India
Smart Grid Forum - ISGF)
Adoption of Emerging Technology by Utility(India
Smart Grid Forum - ISGF)
Best Company - Electric Charging Stations (IPPAI)
Order of Merit for Employee Engagement and
Transforming Workplace (SKOCH
Foundation)
Excellence in Smart Energy Initiative (World HRD
Congress)
Best Practices in Procurement and Services (World
HRD Congress)
State Level Safety Award New Delhi Power
Distribution Sector (World Safety
Forum)
Artisans Award 2020
Development Council)
(Construction
Industry
Energy Conservation & Awareness Award (National
Ability Awards Forum)
Key awards won by BYPL in FY20-21 are
•
•
•
•
•
•
•
•
•
•
•
•
National Award for Excellence in Cost Management
– Second position (ICMAI)
Golden Peacock National CSR Award 2020
(Institute of Directors)
Golden Peacock Innovative Product/Service Award
2020 (Institute of Directors)
Innovation Awards (India Smart Grid Forum – ISGF)
National Energy Award for Excellence in Energy
Management 2020 ( CII )
CCQC Award 2020 (Quality Circle Form of India –
QCFI)
ICQCC Award 2020 (International Convention on
QC Concept – ICQCC)
International Best Practice Award 2020 (Asia
Pacific Quality Organization – APQO)
Global Performance Excellence Awards 2020 (Asia
Pacific Quality Organization – APQO)
Greentech Safety Award 2020
Foundation)
(Greentech
Innovation with Impact Award 2020 (Indian
Chamber of Commerce – ICC)
Compliance 10/10 award under category of “40
under 40” (Legasis Services Pvt. Ltd.)
C.
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.
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
R 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.
29
Reliance Infrastructure Limited
Management Discussion and Analysis
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.
D. 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 a 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 its complex
challenges, Mumbai Metro Line-1 is one of the most
prestigious infrastructure projects.
Mumbai Metro One
(MMOPL), Special Purpose
Vehicle for the project, is in its 7th year of commercial
operation and continues to provide world-class public
infrastructure to city of Mumbai and has served 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
five years and 5 months. Before the pandemic, the
average ridership on weekdays was around 4.50 lakh
per day, making it the busiest metro in India and the
7th densest metro in the world. MMOPL resumed its services
on October 19, 2020 after seven months of lockdown
in a graded manner as per the unlock guidelines issued
by Government of Maharashtra & Ministry of Housing &
Urban Affairs, Government of India. The average weekday
ridership grew from 20,000 in 1st week of re-start,
October 25, 2020, to 110,000 by March 2021.
MMOPL has continued to achieve excellence in the field
of the public transport operation. It has been achieving
100% train availability and 99.9% on-time performance
since the commercial operation. The rolling Stock and
Civil Maintenance process of MMOPL are certified as ISO
9001. The trains are being operated from 06:50 AM to
10:15 PM with the highest frequency of 5 minutes in
peak hours under the graded operations. MMOPL carried
10.20 million passengers with total train trips of 31,793
between October 19, 2020 and March 31, 2021.
MMOPL extended the MyByk (a public bike-sharing
service) from Versova & 6 more metro stations from
January 2021 after the successful launch & operations
from Jagruti Nagar metro station in February 2020
with support from MMRDA, WRI & Toyota Mobility
Foundation. The MyByk services will encourage
Mumbaikars to shift to an eco-friendly mode of
transport as feeder services to decongest the city &
reduce pollution.
30
In coordination with Mumbai Police, State Government
and BMC, MMOPL provided a relief package to Kalina –
Santa cruz Covid treatment Centre on Metro Day, i.e. on
8th June 2020. This relief package includes an electric
kettle, temperature gun, mask, sanitizer, hazmat suit for
our COVID warriors.
MMOPL re-started the operations from October 19,
2020 after the 7-month lockdown with 360-degree
communication through all digital mediums & across all
stations. MMOPL launched campaigns like “Metro se
Chalona Mumbai” & “Your Metro, Safe Metro” online
& offline with a sense of ownership & responsibility to
make the commuters’ journey not only comfortable
but safer than ever to build confidence within them.
MMOPL also bagged the “Brand Impact Award 2021”
by the Indian Achievers’ Forum for “Outstanding
Brand Communication & Reinventing Strategies for
Community Outreach.” MMOPL also launched “Metro
Open for all” campaign to increase ridership, where
extensive communication was carried at road level
across all metro stations.
MMOPL strives to increase the non-fare revenue
through significant initiatives such as station branding
rights (SBR), telecom infrastructure development, retail
area development, train wraps, payment alliances, etc.
During the lockdown in 2020, Techno Mobile took
Marol Naka metro station, whereas IndusInd Bank
considered Chakala (J.B. Nagar) metro station for
station branding rights. Post resumption of MMOPL
services in October 2020, station branding rights of
Andheri & Ghatkopar metro stations were taken by LIC
of India & Mastercard, respectively. For the first time,
MMOPL offered these brands an opportunity to paint
the station’s civil structure in brand colours. IndusInd
Bank and LIC have taken up the initiative to paint
Chakala and Andheri stations, respectively.
E.
Defence Sector
The Government of India has identified Defence
sector as a high growth area with increased focus on
Manufacturing in India.
To address this situation, large number of policy changes
have been implemented by the government over the
last 4-5 years resulting in reduction in Defence imports
by around 33% during 2016-20, as compared to the
period 2011-2015. More such policy changes are on
the anvil, which will promote indigenous manufacturing,
reduce dependence on imports and promote exports.
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 crore of Defence exports by 2025.
Changes in tax regime to promote Maintenance Repair
Overhaul (MRO) for Defence and Commercial aircraft
and introduction of new category - “Buy Global
(Manufacture in India)” in the Defence Acquisition
Procedure 2020 are clear indication on the resolve of
the Government to achieve self sufficiency for majority
of requirements of the Indian Armed Forces.
Reliance Infrastructure Limited
Management Discussion and Analysis
In consonance with this policy initiative, MoD has
indicated its preference to procure Defence equipment
from Indian companies and has accorded highest priority
to the “Buy Indian (Indigenously Designed Developed
and Manufactured-IDDM) procurement category.
Further, MoD has published a negative list of 101 items
and has introduced an import embargo on these items
to boost Indigenisation of Defence production. It is
estimated that contracts worth almost ` 4 Lakh crore will
be placed upon the domestic industry within the next 6
to 7 years after this step.
the
Propelled by domestic Defence spending and a growing
commercial aviation market,
Indian Defence
and aerospace 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 Engineering
Design, IT, Artificial Intelligence, Virtual Reality and Data
Analytics, all force multipliers in the Defence domain.
This, coupled with lower production cost, makes India an
attractive destination 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 Reliance Infrastructure with the aim
of building capabilities and Indigenous development for
Defence and Aerospace Industry. The purpose was to
align with the government initiatives under “Manufacture
in India” and “Atmanirbhar Bharat Abhiyan”.
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 12 Industrial licenses issued by the
Department of Industrial Policy & Promotion (DIPP),
Ministry of Commerce.
In the Defence and Aerospace domain, Reliance Defence
has taken multiple initiatives to meet the needs of
both military and civil aviation. The Dhirubhai Ambani
Aerospace & Defence Park (DAAP) is one such initiative,
located at the SEZ at MIHAN (Multi Modal International
Hub at Nagpur). The long term vision is to create a
comprehensive Aerospace & Defence manufacturing hub,
with capability to address the domestic as well as export
Civil and Military markets. Discussions with multiple
global majors are underway to set up manufacturing
facilities at MIHAN.
Reliance has an operational Joint Venture (JV) Company
with Dassault Aviation of France Dassault Reliance
Aerospace Limited (DRAL); for its Aerospace programs.
DRAL, in operations for three years, now has strength of
115 people and has successfully delivered large number
of aero structures of Falcon-2000 business jets and
components of 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. The first
made in India Falcon-2000 aircraft is expected to fly out
of Nagpur in 2022.
Thales Reliance Defence Systems Limited (TRDS) is the
second Joint Venture company of Reliance in Aerospace
& Defence domain, incorporated in partnership with
Thales of France. TRDS’s scope of work includes
Assembly, Integration and Testing (AIT) of Airborne AESA
Radars and Electronic Warfare Suite of Rafale fighter
jets, Performance Based Logistics (PBL) support to the
Rafale aircraft fleet of the Indian Air Force (IAF) and
integrating multiple Indian companies into Thales’s global
supply chain. TRDS has already carried out successful
AIT of three airborne radars and EW suites of Rafale 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 of a
fighter aircraft.
Reliance is also executing a contract awarded by
Hindustan Aeronautics Limited (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. So far, Reliance has
already helped in modification of 37 aircraft and program
is on track for upgrade of the remaining 18 aircraft will
be delivered over next three years.
Reliance Armament Limited is engaged in multiple
programs valued at over ` 6,000 crore over next 10
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 technological knowhow.
Reliance Ammunition Limited. is pursuing different programs
under “Make in India” for the Indian Army and Indian Air
Force and has already qualified to receive the RFPs, which
are expected to be issued by October 2021. The Company
is also in the process of acquiring land for establishing an
ammunition and explosive manufacturing park.
Reliance Defence Limited. is also pursuing various MRO
opportunities for the Indian Air Force fleet and has already
qualified to receive the RFPs for these programs. For
these opportunities, Reliance has tied up with qualified
vendor.
31
Reliance Infrastructure Limited
Management Discussion and Analysis
infrastructure, Reliance
In continuation of a phased manner approach to developing
capabilities and creating
is
participating in multiple upgrade programs for Armoured
Vehicles like the Armoured Recovery Vehicle (ARV) and
Infantry Combat Vehicle (ICV) BMP 2/2K. These programs
allow us to create skill sets and establish infrastructure for
addressing capital procurement programs.
Reliance Armaments Limited has created the ‘Jai’ series of
small arms and has developed a 7.62x51 Light Machine
Gun (LMG) to meet the exacting requirements of our
Defence Forces as also for overseas requirement. With the
development of the LMG, the Company has achieved an
‘OEM’ status which is a first for any Indian Private Sector
company manufacturing Automatic weapons in Defence
Sector.
F.
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.
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 Reliance Infrastructure, 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
lead our organization to evolving a work environment that nurtures
empowerment, meritocracy, transparency and ownership. As on
March 31, 2021, the Reliance Infrastructure Group had nearly
5,493 employees on roll.
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
32
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.
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
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.
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 has Risk Management Committee consisting of
independent directors and senior managerial personnel. On a
Quarterly basis, the Risk Management Committee independently
reviews all identified major risks & new risks, if any, and assess the
status of mitigation measures/plan.
Reliance Infrastructure Limited
Management Discussion and Analysis
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 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 more
than 45 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 mainlyin 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
•
•
•
•
•
•
•
•
During the year, CSR activities and programs completed
using the annual budget for FY20-21 of ` 5.23 crore
in BRPL and ` 3.11 crore in BYPL. These programs are
empowering women in a big-way, In fact, over 50% of
the beneficiaries are women.
Complementing the efforts of the Delhi Government,
these CSR programs have been playing their part in the
fight against COVID-19 and making a positive impact in
the lives of the needy under its SPARSH initiative.
It has facilitated needy students from government schools
to get better access to online education, handed-over
about 540 e-tablets by BRPL and 300 by BYPL to Govt.
of Delhi
•
Donation of 6 fully equipped ambulances for the use of
Delhi Government’s CAT’s Ambulance service, three each
by BRPL and BYPL.
Promoting Women Self Help Groups involved in stitching
and distributing affordable masks & sanitary napkins. During
the year, they produced and distributed around 67,000
masks and over 27,000 sanitary napkins respectively.
During the year, around 30,000 trees were planted at
the CRPF Camp, Jharonda Kalan in West Delhi, Delhi
Government offices and MCD Schools.
•
•
•
•
•
•
In the Vocational Training Centres, over 1,100 students
enrolled for undertaking job oriented courses on
computers, beauty and tailoring. The classes are being
undertaken by observing full COVID safety protocols.
Distribution of 200 oximeters, 1.5 lakh masks and
2 lakh disposable gloves for MCD hospitals and also
distributed aids/appliances
to 134 people with
disability.
Distribution of 100 sanitizer machines, 6850 hygiene
kits and 2800 COVID relief ration kits to places like
mohalla clinics, police stations and public places in East
& Central Delhi.
Support to treatment for 170 children with clubfoot in
the partnership with Cure International India Trust.
Provided financial assistance under SASHAKT 2020-
21 scholarship to 135 distressed final year graduation
students of Govt. colleges.
Continuing SURAKSHA – Safe Delhi, BYPL installed
246 fire extinguishers at 114 places of worship along
with fire extinguisher demonstration and training.
Roads Business
COVID 19: The unprecedented crisis caused by the
global pandemic, impacted our Citizens and shattered
many livelihoods. The Roads Business provided support
to the people impacted and distribution of food to needy
along the stretch of the toll plaza was undertaken. To
ensure that our frontline warriors of security were safe
and secure, distribution of PPE equipments 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
the Green Highways
and Highways has framed
(Plantation,
and
Transplantation,
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 and the same is
maintained regularly.
•
FAST Tag campaign : To be ready for 100% FASTag as
directed by NHAI all our Toll Roads geared up to efficiently
migrate road users to FASTag, a holistic campaign. For
customers there were pamphlet distribution, personal
33
Reliance Infrastructure Limited Management Discussion and Analysis
counseling, banners at different interjections, barricading
the roads so that customers can be counselled at strategic
locations and dry runs conducted in all shifts to make the
staff effectively handle 100% FASTag adoption
•
Health & Safety Programs:
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.
o
Blood donation camps were organized
•
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.
•
•
Training & Development: Training pertaining to different
kind of staff were regularly under taken, including fire
firghting training, first aid refresher training for paramedic
staff, trainings pertaining to FASTag for toll staff were
carried out at periodic intervals.
Volunteer Based Tree Plantation by Staff: Apart from
the plantation activities carried out as per the requirement
of concession agreement, our staff on site from time to
time conduct plantation drives as part of their individual
drive and commitment towards environment.
o
Creating Awareness in travelers
For customers there were pamphlet distribution,
different
personal
interjections for safe and hassle free travel
counseling,
banners
at
o
Preparing the Road Sites in collaboration with
Stakeholders and Training Staff for FASTag
preparation
Getting maximum toll booths ready for ETC collection, and
creating multiple POS for payments at strategic locations,
working hand in hand with stakeholders like banks, police
and NHAI officials for smooth transition for FASTag as
possible.
The staff has handled customers for FASTag and non
FASTag crowds in less number of cash lanes effectively.
Regular trainings were conducted to prepare staff at
toll booths to handle 100% FASTag users, incident
management and swift transition.
34
The Infrastructure Sector – Structure and Development,
opportunities and threats
Infrastructure, development, a key to economic development,
was severely hit due to the Corona pandemic; however, there
have been many bright spots, especially the progressive
policy initiatives of the government, which bode well for the
sector as a whole.
Large road EPC players are expected to see their revenues
recover with an estimated 15-20% growth in 2021-22.
This pick up is reflected in the performance of highway
construction. In the current financial year ie 2020-21,
8169 km of national highways were constructed from April
2020 to January 15, 2021. During the same period in FY
2019-20, 7573 km of highways were constructed. NHAI
has developed a vendor performance evaluation system
to track the performance of developers, consultants, and
concessionaires, for speeding up work on projects. According
to rating agency, ICRA, liquidity boosting measures for the
highway sector have helped in liquidity, while also getting
the performance guarantees and associated margin monies
released for the executed portion of the projects.
According to rating agency CRISIL, EPC companies engaged
in road construction have reached their pre-Covid levels, with
labour and raw material problems largely resolved.
A number of policy reforms have been undertaken and carried
out by the government to boost infrastructure development.
The Earnest Money Deposit (EMD) and performance security
on government and public sector lenders has been relaxed
for both existing and new contracts from the Centre and
Public Sector Enterprises (PSEs), leading to lower working
capital requirements. Funding requirements will also ease
due to EMD relaxation for new tenders, thus improving
execution capabilities of companies. To boost the liquidity of
contractors, their payments have been fast tracked.
The policy initiatives taken to boost funding to the
infrastructure sector are critical. To encourage foreign funding
in the infra sector, last year, the Income Tax Department
notified tax exemption on incomes of certain funds arising
from their investment in Indian infrastructure.
The government’s progressive reforms and new models
of financing are boosting the confidence of domestic and
foreign investors. There are now better models than TOT
(toll-operate-transfer) and there is 100% FDI allowed in
this. InvITs are emerging as popular funding instruments for
infrastructure sector involving domestic and foreign investors.
Power Grid Corporation of India has raised funds through InvIT
IPO to use the proceeds to fund new and under-construction
capital projects.
Other key budgetary provisions to meet long-term financing
needs of infrastructure sector include proposed Development
Financial Institution (DFI) with initial capitalization of `
2,000 crore and lending portfolio of at least ` 5 lakh crore
with record capital expenditure of ` 5.54 lakh crore for FY
2021-22.
There are some more important policy reforms that are in the
offing to boost infrastructure development. To ensure easier
entry for domestic companies in road projects, a major rejig in
eligibility criteria for EPC projects, including easing of financial,
Reliance Infrastructure Limited
Management Discussion and Analysis
technical criteria, is underway. As a policy reform, NHAI is
set to introduce performance threshold for highway bidders
by ranking concessionaires based on their performance on
various parameters, including safety, frequency of accidents
on the stretch, and road and toll plaza management systems,
among others.
However post covid recovery and despite an impressive
economic recovery over the last quarter of FY:2020-21,
several bottlenecks still pose some challenges. One of the
major challenges faced by the infrastructure sector pertains
to financing. The capital crunch, along with land acquisition
and other issues have been leading to time and cost overruns
of infrastructure projects.
The States account for up to 40% of the total infrastructure
capital expenditure. According to rating agency ICRA, there is
likely to be a 40% cut in capital outlay for infrastructure in
the coming fiscal. The rising debt of NHAI is also a concerning
factor and then there are projects facing a funding challenge
from banks. The funding woes have severely impacted the
contractors (lowest in the chain); their credit cycle has almost
doubled from 3 months to over 5 months.
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
and general slow down conditions. The Company’s business
has also been affected as result of interruption in construction
activities, supply chain disruption, unavailability of personnel,
closure/lock down of various other facilities, etc.
Outlook
India had entered into 2021 with lower growth projections
on the economic front led by global economic slowdown
and the continuing coronavirus panademic with sharp rise in
daily cases after second wave has led to stricter localised
lockdown conditions which further impacted businesses as
well as the economic situation.
The International Monetary Fund (IMF) raised its FY22
growth forecast for India to 12.5% from 11.5% estimated
earlier in January, even as a resurgent Covid spread in second
phase has affected the country’s economic recovery. The IMF
forecast pitches India as the fastest-growing major economy
and the only one expected to record a double-digit recovery
from pandemic-hit 2020.
35
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
2020-21
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 Tamil Nadu,
Maharashtra, Bihar and Jharkhand, etc.
Markets served by the Company
N. A.
Section B: Financial Details of the Company
Paid up Capital
Total Turnover
Total Loss
` 263 crore
` 2,522.17 crore
` 19.08 crore
Total spending on Corporate Social Responsibility
(CSR) as a percentage of profit after tax (%)
Nil (in view of the losses and insufficient profits in the preceding three financial
years).
List of activities in which expenditure as above has
been incurred
Not Applicable
Section C: Other Company’s Details
Does the Company have Subsidiary Companies
Yes. There are 55 subsidiaries and step-down subsidiaries as on March 31,
2021
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 Pinkesh Shah, Chief Financial Officer
Shri Paresh Rathod, Company Secretary
36
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 was updated in terms of the National Guidelines on Responsible Business Conduct (NGRBC). 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/1142822/10625710/
Rinfra_BRRPolicy_revised.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.
37
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?
The Company received 196 Complaints from the
shareholders during 2020-21 and there were no
complaints pending as on March 31, 2021. 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):
2.
(a) Reduction
sourcing/production/
distribution achieved since the previous year
throughout the value chain?
during
(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 (E&C) 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
also into infrastructure business covering toll roads and
Mumbai Metro and also in power distribution.
In the construction of highways and 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.
Deployment of adequate capacity plants and
crushers to enhance productivity.
3.
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.
At Mumbai Metro, the following initiatives are
taken.
Solar Panels: Solar panels with capacity of 2.30
MWp at all 12 Metro stations and a total of
2,000 rooftop solar panels at the Metro Depot are
installed which fulfil 25% of the auxiliary energy of
Mumbai Metro One’s Depot campus. Annual green
and clean energy generation from the rooftop
solar plants has helped reduce carbon emission by
around 900 tons per annum. Electricity generated
from solar panels is utilised for operations of various
auxiliary systems like lighting, air-conditioning, lifts,
escalators and pumps, among others.
38
2. Water Recycling Plant and Rain Water Harvesting:
A water treatment plant at the Metro Depot for
recycling of water recycles 400 kL of water daily
which is used for washing and cleaning of trains/
rakes. Rain water harvesting plant in depot for
conservation and reuse of rain water enables us to
save 20,000 kL of water annually and is used for
utilities at the wash basin, Automatic Train Wash
plant etc.
3.
IT Tools: These tools that are used internally to
maintain our database, have reduced the paper
consumption by almost 25 to 30%.
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.
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 and 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 fulfilling 25% of the auxiliary
energy consumption from our in-house rooftop solar
power.
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 Construction (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
contracts are awarded to local contractors. We are
regularly interacting with vendors and educating them
Reliance Infrastructure Limited
Business Responsibility Report
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
disposed through authorized recyclers. There is a system
of selling the scrap and waste to approved vendors who
can recycle the products and waste.
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
scrap and waste to approved vendors who can recycle
the products and waste. Also, about 400 kL of water is
recycled from total water consumed for train washing.
a.
Principle 3
Businesses should promote the well being of all employees
Total number of employees
5,493
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
Nil
567
Nil
No
NA
The Company does not
employ child labour, forced
labour and involuntary
labour. The Company did
not received 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
1
2
3
Child Labour / forced Labour
/ InvoluntaryLabour
Sexual harassment
Nil
Discriminatory employment Nil
Nil
Nil
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
Principle 4
55%
49%
NA
NA
Businesses should respect the interests of, and be responsive
towards all stake holders, especially those who are
disadvantaged, vulnerable and marginalized
Has the Company mapped its internal and external
stakeholders? Out of the above, has the Company
identified
and
disadvantaged,
the
marginalized stakeholders?
vulnerable
i.e.
The Company has mapped the stakeholders
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, 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. are provided.
Our Mumbai Metro service provides a number of facility
to cater to the special needs of the disadvantaged,
vulnerable and marginalized customers including senior
citizens such as escalators, elevators provided at all the
metro stations, Tactile paths for the visually impaired
passengers and ramps provided next to the Lifts for
entering the metro station to boarding the train and
vice versa. help the passengers on wheelchairs for easy
access.
39
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/involuntary
labouror 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
2020-21.
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.
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 (RCS) is an IGBC certified Green
Building under “IGBC GOLD” Rating category for existing
buildings (with 74 points) - #EB 19 0033.
40
is also
certified under
ISO 14001:2014
RCS
(Environmental Management System, which demonstrate
the commitment of Management towards environment
related issues and concerns).
At RCB, a heritage building, some of the measures for
addressing environmental concerns are installation of LED
lights which has resulted in saving electricity by approx
60-70%, Motion sensor lightening control system which
automatically avoids wastage, Urinal sensors to ensure
better hygiene by automatically flushing the urinals on
usage and helping water conservation and Chillers of
HVAC System wherein old chillers of make McQuay were
replaced with new energy efficient chillers resulting in
estimated reduction in overall electricity consumption by
approx 25-30%.
At Mumbai Metro, we have a water treatment plant to
recycle water which is used to wash rakes/ metro trains
wherein 400 kLof water is recycled every day. We have
installed solar panels on all 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/green-promise.
c.
Does the Company identify and assess potential
environmental risks?
d.
e.
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
Reliance Infrastructure Limited
Business Responsibility Report
with a capacity of ~107 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 39 Charging
Stations, Establishment of micro sub stations etc.
The green initiatives of our Mumbai Metro are provided in
the link https://www.reliancemumbaimetro.com/green-
promise.
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
f.
g.
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 and
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.
Pursuant to the provision of the Companies Act, 2013,
the Company does not have any obligation to spent any
amount towards CSR activity during the year under review.
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).
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.
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 more than 45 lakhs households including
critical governance structure. Road business is ensuring
smooth transport of essential goods with safe, secure
and obstruction free roads.
The various divisions of
the Company actively
participated in several initiatives mainly in the areas of
education, healthcare, welfare programmes for tribal
development, skill development and training, cleanliness
drive such as Swacch Bharat, promotion and protection
of environment, etc. in line with the CSR Policy of the
Company.
Company has undertaken several initiatives to support
inclusive growth and equitable development for social
and economic betterment of the community through
programmes and active participation from enthusiast
employee volunteers. of the Company during the year
2020-21 such as :
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 by facilitating
needy students from government schools to get better
access to online education and created Library in school
near toll plaza also donated books and educational
material to encourage reading and leaning, fixed bore
well of school and installed drinking water fountain to
41
Reliance Infrastructure Limited
Business Responsibility Report
ensure clean drinking water for all students and started
plantation drives to encourage eco friendliness and
awareness towards our responsibilities to mother nature.
Over 1,100 students were enrolled in Vocational Training
Centrefor undertaking job oriented courses.
and way side amenities / user facility to encourage
commuters to use them and not to spoil the Highway or
Toll Plaza area.
v.
Environment
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. Also Promoting Women Self Help
Groups involved in stitching and distributing affordable
masks and sanitary napkins.
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
thesubsidiaries Company 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.
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 and Giving Tuesday
with the theme “Empowering Women & their Safety”
where local people were benefitted, etc.
iv.
Sanitation
Our approach towards Swacch 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.
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
42
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. TheCompany’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.
Few other significant CSR interventions and initiatives
during 2020-21were as under:
•
•
•
During the year, CSR activities and programs are
empowering women in a big-way, in fact, over 50%
of the beneficiaries are women. Complementing
the efforts of the Delhi Government, these CSR
programs have been playing their part in the fight
against COVID-19 and making a positive impact in
the lives of the needy under its SPARSH initiative.
Promoting Women Self Help Groups involved in
and
stitching and distributing affordable masks
sanitary napkins.
Distribution of Oximeters, marks,
sanitiser
machines, hygeine kits and disposable gloves for
MCD hospitals and also distributed aids/appliances
to persons with disability and relief ration kits to
the poor and donation of equipped ambulances
for the use of Delhi Government and distribution
of PPE equipments to Police officers near the
toll plazas. 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 ensure that our frontline
warriors of security were safe and secure.
Reliance Infrastructure Limited
Business Responsibility Report
•
•
100% FASTag Campaign:To be ready for 100%
FASTag as directed by NHAI all our Toll Roads
geared up to efficiently migrate road users to
FASTag, a holistic campaign.For customers there
were pamphlet distribution, personal counseling,
banners at different interjections.
Getting maximum toll booths ready for ETC
collection, right from barricading the roads so that
customers and stakeholders can be counselled
at strategic locations for smooth transition for
FASTag. Regular trainings and dry runs were
conducted in all shifts repeatedly to make the
staff effectively handle 100% FASTag adoption,
and make stakeholders and travellers abreast with
the new way of travelling.
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 undertakes 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 Company’s 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.
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 as discussed in detail in this Report
under the thematic heads viz. Education, Healthcare,
Rural transformation, Swacch Bharat Abhiyan and
Environment.Theseprojects 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.
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
the
implementation level. This not only ensures acceptance
of the programme on ground but also its continuity
and sustainability.
thereafter
them at
inducting
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:
livelihoods. Reliance Group
The unprecedented crisis caused by the global
pandemic COVID-19, impacted our citizens and
shattered many
is
committed to continue to provide essential services
without interruption during this lockdown period.
Our Delhi Distribution business complimented the
Governments efforts through 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
(Personal Protection Equipments) kits to the doctors
and para-medical professions. The Roads business,
was in the frontline of providing support to the people
impacted.
43
Reliance Infrastructure Limited
Business Responsibility Report
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’, ‘AapkeDwar Meet’ to ensure one to one contact
with the customers to understand their needs in a better
manner. It also provides upgraded call centrefacility,
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 (KFintech) renders investor
services to the investors with regard to matters related to
the securities, dividend payments and others. KFintech
services investors through its network of around 400
branches and has dedicated investor helpline number
1800 309 4001. 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.
44
Reliance Infrastructure Limited
Corporate Governance Report
Our Corporate Governance Philosophy
Reliance Infrastructure Limited (‘Reliance Infrastructure’) 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 the Securities Exchange
Board of India (SEBI) (Listing Obligations and
Disclosure Requirements) Regulation, 2015 (the
“Listing Regulations”) as amended, the Board
has constituted Audit Committee, Nomination
and Remuneration Committee, Stakeholders
Social
Relationship
Responsibility
and Risk
Management Committee.
Committee,
(CSR) Committee
Corporate
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 she/he 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
/ his status as an Independent Director, provides a
declaration that she / he meets with the criteria of
independence as provided under the law.
45
Reliance Infrastructure Limited
Corporate Governance Report
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 are familiarized with 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 programs for familiarization
of Independent Directors have been put on the
website of the Company at the link: https://www.
rinfra.com/documents/1142822/1189698/
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
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 2020-
21 have been audited by an independent audit firm M/s.
Chaturvedi & Shah, LLP, Chartered Accountants, who
were appointed by the members of the Company for a
term of five consecutive years from the conclusion of the
ninety first 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.
We present our report on compliance of governance conditions
specified in the Listing Regulations as follows:
46
Reliance Infrastructure Limited
Corporate Governance Report
I.
Board of Directors
1. Board Composition - Board strength and representation
The Board consists of seven Members. The composition and category of Directors on the Board of the Company as on
March 31, 2021 are as under:
Names of Directors
DIN
Category
Shri Anil D Ambani, Chairman
00004878
Promoter, Non-Executive and Non-Independent Director
Shri S Seth, Vice Chairman
00004631
Non-Executive and Non-Independent Director
Shri Punit Garg
Shri S S Kohli
Shri K Ravikumar
Ms. Manjari Kacker
Ms. Ryna Karani
00004407
Executive Director and Chief Executive Officer
00169907
00119753
06945359
00116930
Independent Directors
Sr.
No.
1
2
3
4
5
6
7
Notes:
a.
None of the Directors is related to any other Director and none of the Directors has any business relationship with
the Company.
b.
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 Act 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.
Reviewing and guiding corporate strategy,
major plans of action, risk policy, annual
budgets and business plans,
setting
monitoring
objectives,
performance
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.
Selecting, compensating, monitoring and
when necessary, replacing key executives
and overseeing succession planning.
d.
e.
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 of Directors.
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.
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.
Monitoring and reviewing of Board of
Director’s evaluation framework.
3.
Board meetings
The Board held eight meetings during the financial
year 2020-21 on the following dates:
May 8, 2020, July 30, 2020, November 11,
2020, December 10, 2020, December 24, 2020,
January 13, 2021, February 1, 2021 and March 2,
2021. The maximum time gap between any two
meetings was 103 days and the minimum gap was
13 days.
47
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 2020-21 and at the last Annual General
Meeting (AGM) held on June 23, 2020 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, 2021 were as under:
Names of Directors
Number of Board
meetings attended
out of eight
meetings held
Shri Anil D Ambani
Shri S Seth
Shri Punit Garg
Shri S S Kohli
Shri K Ravikumar
Ms. Manjari Kacker
Ms. Ryna Karani
Notes:
7
8
8
8
8
8
6
Attendance
at the last
AGM held
on June 23,
2020
Present
Present
Present
Present
Present
Present
Present
Number of
directorships
(including
Reliance
Infrastructure)
7
6
2
8
2
6
6
Committee Chairmanship
/Membership (including
Reliance Infrastructure)
Membership
Chairmanship
None
None
4
6
2
3
7
None
None
None
2
1
1
2
a.
b.
c.
d.
e.
f.
g.
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.
Pursuant to the provisions of Regulation 17A(1) of the Listing Regulations, none of the Directors hold directorships
in more than 7 listed entities.
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.
No Alternate Director has been appointed for any Independent Director.
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 Committee Memberships and chairmanships above exclude Memberships and chairmanships in private
companies, foreign companies and in Section 8 companies.
h. Memberships of Committees include chairmanships, if any.
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. One 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, 62 years, B.Sc. Hons. and
MBA from the Wharton School of the University
of Pennsylvania, is the Chairman of our Company.
As on March 31, 2021, Shri Anil D. Ambani held
1,39,437 equity shares of the Company.
Shri S Seth, 65 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 and Reliance Defence
Technologies Private Limited.
As on March 31, 2021, Shri S Seth did not hold any
equity shares of the Company.
Shri S S Kohli, 76 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.
48
Reliance Infrastructure Limited
Corporate Governance Report
leadership,
IIFCL commenced
its
Under his
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 a Member of the Audit Committee,
Nomination and Remuneration Committee, Risk
Management Committee and CSR Committee of
Board of the Company.
He is on the Board of ACB (India) Limited, BSES
Yamuna Power Limited, Seamec Limited, BSES
Rajdhani Power Limited, S V Creditline Limited,
OIT Infrastructure Management Limited and Alp
Overseas Private Limited.
As on March 31, 2021, Shri S S Kohli did not hold
any equity shares of the Company.
Shri K Ravikumar, 71 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 class gas 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
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 the Chairman of Stakeholders Relationship
Committee and Nomination and Remuneration
Committee and member of the Audit Committee,
Risk Management Committee and CSR Committee
of Board of the Company.
He is also a Director on the Board of SPEL
Semiconductor Limited.
As on March 31, 2021, Shri K Ravikumar did not
hold any equity shares of the Company.
Ms. Manjari Kacker, 69 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
49
Reliance Infrastructure Limited
Corporate Governance Report
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.
She is the Chairperson of the Audit Committee and
also member of the Nomination and Remuneration
Committee, Stakeholders Relationship Committee
and Risk Management Committee.
Ms. Manjari Kacker is also a Director in Dhanvarsha
Finvest Limited, Water Systems and Infrastructure
Development Services Private Limited, Hindustan
Gum and Chemicals Limited, DFL Technologies
Private Limited and Arshiya Limited.
As on March 31, 2021, Ms. Manjari Kacker did not
hold any equity shares of the Company.
Ms. Ryna Karani, 53 years, is partner of ALMT
Legal, Advocates and Solicitors with over 25 years
of experience 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. She
is a corporate commercial lawyer and 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 the Chairperson of the CSR Committee and
Risk Management Committee and also member of
the Audit Committee, Stakeholders Relationship
Committee.
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 and INEOS Styrolution
India Limited.
As on March 31, 2021, Ms. Ryna Karani held 100
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 35 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.
50
He is a member of the Audit Committee,
Stakeholders Relationship Committee, Risk
Management Committee and CSR Committee of
the Board of the Company.
He is also on the Board of Reliance Communications
Limited.
As on March 31, 2021, Shri Punit Garg held 1,500
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
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:
Name of the Director Area of Expertise
Shri Anil Ambani
Shri S Seth
Shri Punit Garg
Business Strategy
Business Policy
Business Development
Risk Management
Legal
Commercial
Project Management
Procurement
Engineering
Finance
•
•
•
•
•
•
•
•
•
•
• Human Resource
Business Strategy
•
Business Policy
•
Business Development
•
Risk Management
•
Legal
•
Commercial
•
Project Management
•
Procurement
•
•
Finance
• Human Resource
Business Strategy
•
Business Policy
•
Business Development
•
Risk Management
•
Legal
•
Commercial
•
Project Management
•
Procurement
•
Engineering
•
•
Finance
• Human Resource
Reliance Infrastructure Limited
Corporate Governance Report
Name of the Director Area of Expertise
Shri S S Kohli
Business Strategy
Business Policy
Business Development
Risk Management
Legal
Commercial
Project Management
Procurement
Engineering
Finance
•
•
•
•
•
•
•
•
•
•
• Human Resource
Business Strategy
•
Business Policy
•
Business Development
•
Risk Management
•
Legal
•
Commercial
•
Project Management
•
•
Finance
• Human Resource
Shri K Ravikumar
Name of the Director Area of Expertise
Ms. Manjari
Kacker
Ms. Ryna Karani
•
•
•
•
•
•
•
•
Business Strategy
Business Policy
Business Development
Risk Management
Legal
Commercial
Project Management
Finance
• Human Resource
•
•
•
•
•
•
•
•
Business Strategy
Business Policy
Business Development
Risk Management
Legal
Commercial
Project Management
Finance
• Human Resource
Directorships in other Listed Entities
The details of the directorships held by the Directors in other listed entities as on March 31, 2021 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
Reliance General Insurance Company
Limited
Non-Executive Director, 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
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
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, comprises of
majority of Independent Directors namely Ms. Manjari Kacker, as the Chairperson, Shri S S Kohli, Shri K Ravikumar, Ms. Ryna
Karani, Independent Directors and Shri Punit Garg, Executive Director and Chief Executive Officer as the members. 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.
51
Reliance Infrastructure Limited
Corporate Governance Report
The terms of reference, inter alia, comprises the
following:
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 for appointment, remuneration
and terms of appointment of auditors of the
Company;
Approval of payment to statutory auditors for any
other services rendered by the 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
other
legal requirements relating to financial
statements;
listing
and
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
1.
2.
3.
4.
5.
6.
7.
8.
52
review on quarterly basis, of RPTs entered into
by the Company pursuant to respective omnibus
approval given as above;
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;
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 the department, reporting
structure 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
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;
any
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. Consider and comment on
rationale, cost-
benefits and impact of schemes involving merger,
demerger, amalgamation etc., on the Company
and its shareholders;
22. 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
Reliance Infrastructure Limited
Corporate Governance Report
23. Carrying out any other function as is mentioned in
the terms of reference of the Audit Committee.
Attendance at the meeting of the Audit Committee
held during the financial year 2020-21 is as follows:
The Audit Committee is also authorised to:
Investigate any activity within its terms of
a.
reference;
b.
c.
d.
e.
f.
g.
h.
Seek any information from any employee;
To have full access to information contained in the
records of the Company;
Obtain outside legal and professional advice;
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 financial statements before submission to
the Board; and
Discuss any related issues with the internal and
statutory auditors and the management of the
Company.
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;
the appointment,
terms of
remuneration of the chief internal auditor shall be
subject to review by the audit committee; and
removal 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 2020-21
The Audit Committee held four meetings during the year
on May 8, 2020, July 29, 2020, November 11, 2020
and February 1, 2021. The maximum gap between any
two meetings was 104 days and the minimum gap was
81 days.
Members
Number of meetings
Ms. Manjari Kacker
Shri S S Kohli
Shri K Ravikumar
Ms. Ryna Karani
Shri Punit Garg
held during
the year
attended
4
4
4
4
4
4
4
4
4
4
The Chairperson of the Audit Committee was present at
the previous Annual General Meeting of the Company.
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 and to recommend the Board for approval.
53
Reliance Infrastructure Limited
Corporate Governance Report
III Nomination and Remuneration Committee
The Nomination and Remuneration Committee,
constituted in terms of Section 178 of the Act and the
Listing Regulations, comprises of Shri K Ravikumar as
Chairman and Shri S S Kohli and Ms. Manjari Kacker,
Independent Directors, as Members.
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)
e)
f)
g)
h)
i)
positive
Formulation of the criteria for determining
qualifications,
and
independence of Directors and recommend to
the Board a policy relating to, the remuneration
of the Directors, Key Managerial Personnel and
other employees.;
attributes
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 Key
Managerial Personnel in accordance with the
criteria laid down and to recommend to the Board
their appointment to and/or removal;
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 Key
Managerial 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 Key Managerial
Personnel 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 June 23, 2020.
The Nomination and Remuneration Committee held
one meeting during the year on May 8, 2020.
54
Attendance at the meeting of the Nomination and
Remuneration Committee held during the financial year
2020-21 is as follows:
Members
Shri K Ravikumar
Shri S S Kohli
Ms. Manjari Kacker
Number of
meeting(s)
held during
the year
Number of
meeting(s)
attended
1
1
1
1
1
1
Criteria for making payments to Non-Executive
Directors
remuneration to Non-Executive Directors
is
The
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.
The Company has not paid any remuneration to its
Directors other than sitting fees for attending the
meeting of the Board and Committee(s). Pursuant to
the limits approved by the Board, all non-executive
directors were paid sitting fees of ` 40,000 (excluding
goods and services tax) for attending each meeting of
the Board and its Committee(s). No remuneration by
way of commission to the non-executive directors. The
Company has so far not issued any stock options to its
non-executive directors. There were no other pecuniary
relationships or transactions of non-executive directors
vis-à-vis the Company.
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,
Executive Director are as under:
(i)
All elements of remuneration package such as
salary, benefits, bonuses, stock options, pensions
etc: ` 252 lakhs
(ii) Details of fixed component and performance
linked incentives along with the performance
criteria:
Fixed component – ` 215 lakh
Perquisites – ` 37 lakh
Performance linked incentive – Nil
(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
constituted and comprises of Shri K Ravikumar as
Chairman, Ms. Manjari Kacker, Ms. Ryna Karani and Shri
Punit Garg, as Members.
Reliance Infrastructure Limited
a.
b.
c.
d.
e.
f.
g.
Corporate Governance Report
The composition and terms of reference of Stakeholders
Relationship Committee are in compliance with the
provisions of Section 178 of the Act and Listing Regulations.
The Company Secretary acts as the Secretary to the
Stakeholders Relationship Committee.
The terms of reference of the Committee, inter alia,
includes the following:
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, general meeting etc.;
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;
h.
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
2020-21 is as follows:
The Stakeholders Relationship Committee held three
meetings during the year on July 29, 2020, November
11, 2020 and February 1, 2021. The maximum gap
between any two meetings was 104 days and the
minimum gap was 81 days.
The meetings were attended by the Members as
below:
To review the transfer of amount and shares to the
Investor Education and Protection Fund;
Members
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 and
monitor their functioning;
Shri K Ravikumar
Ms. Ryna Karani
Ms. Manjari Kacker
Shri Punit Garg
Number of meetings
held during
the year
attended
3
3
3
3
3
3
3
1
Shareholders’ Grievances attended
Received From
Securities and Exchange Board of India
Stock Exchanges
NSDL/CDSL
Direct from Shareholders
Total
Analysis of grievances
Received during
April to March
Redressed during
April to March
Pending as on
2020-21 2019-20
2020-21 2019-20
2020-21 2019-20
9
2
0
185
196
33
8
1
0
42
9
2
0
185
196
33
8
1
0
42
0
0
0
0
0
0
0
0
0
0
Non-receipt of dividend warrants
Non-receipt of share certificates
Others
Total
There was no complaint pending as on March 31, 2021.
Notes:
Number
Percentage
2020-21 2019-20
2020-21 2019-20
78
110
8
196
4
0
38
42
39.80
56.12
4.08
9.52
0.00
90.48
100.00
100.00
1.
2.
Investors’ queries / grievances are normally attended within a period of 4 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 2020-21 correspond to 0.0247 per cent (Previous Year 0.005 per cent)
of the number of Members.
55
Reliance Infrastructure Limited
Corporate Governance Report
V.
Corporate Social Responsibility (CSR) Committee
The CSR Committee was duly constituted and comprises
of Ms. Ryna Karani as Chairperson with Shri S S Kohli,
Shri K Ravikumar and Shri Punit Garg as Members.
The Company Secretary acts as the Secretary to the
CSR 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 on May 8, 2020. All the
Members were present at the meeting.
VI. Risk Management Committee
The Risk Management Committee, 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 Pinkesh
Shah, 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 change in the
Chief Financial Officer of the Company.
The Committee held three meetings during the financial
year 2020-21 on July 29, 2020, November 11, 2020
and February 1, 2021. The maximum gap between any
two meetings was 104 days and the minimum gap was
81 days.
Attendance at the meeting of the Risk Management
Committee held during the financial year 2020-21 is
as follows:
Members
Ms. Ryna Karani
Shri K Ravikumar
Shri S S Kohli
Ms. Manjari Kacker
Shri Punit Garg
Number of Meetings
held during
the year
attended
3
3
3
3
3
3
3
3
3
3
The terms of reference of the Committee are as under:
a.
To formulate a detailed risk management policy
which shall include;
i.
A framework for identification of internal
and external risks specifically faced by
the listed entity, in particular including
financial, operational, sectoral, sustainability
56
(particularly, ESG related risks), information,
cyber security risks or any other risk as may
be determined by the Committee.
ii. Measures
for
including
systems and processes for internal control
of identified risks.
risk mitigation
b.
c.
d.
e.
f.
iii.
Business continuity plan.
To ensure that appropriate methodology, processes
and systems are in place to monitor and evaluate
risks associated with the business of the Company;
To monitor and oversee implementation of the
risk management policy, including evaluating the
adequacy of risk management systems;
To periodically review the risk management policy,
at least once in two years, including by considering
the changing industry dynamics and evolving
complexity;
To keep the Board of Directors informed about
the nature and content of
its discussions,
recommendations and actions to be taken;
removal and
The appointment,
terms of
remuneration of the Chief Risk Officer (if any)
shall be subject to review by the Risk Management
Committee.
The minutes of the meetings of all the Committees of
the Board 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 is the Company Secretary and
Compliance Officer of the Company. 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.
VIII. General Body Meetings
1. Annual General Meeting
The Company held its last three Annual General
Meetings as under:
Whether Special
Resolution passed or not
No.
Date and
Time
Financial
Year
2019-20 June 23,
2020 at
02.30 p.m.
Venue
Through Other Audio
Visual means in
terms of Ministry
of Corporate Affairs
(‘MCA’) circular dated
May 5, 2020 read
with circulars dated
April 8, 2020 and
April 13, 2020
Reliance Infrastructure Limited
Corporate Governance Report
Date and
Time
Financial
Year
2018-19 September
30, 2019
at 11.15
a.m.
Venue
Rama & Sundri
Watumull Auditorium,
Vidasagar, Principle K
M Kundnani Chowk,
124, Dinshaw
Wachha Road,
Churchgate, Mumbai
– 400 020
2017-18 September
18, 2018
at 10.45
a.m.
Birla Matushri
Sabhagar, 19 Marine
Lines, Mumbai 400
020
Whether Special
Resolution passed or not
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.
Yes.
Private Placement of Non
Convertible Debentures
(NCD) and/or other Debt
Securities
During the year, there was no Extraordinary General
Meeting held by the Company and no business was
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
Quarterly Results, in the ordinary course, are published
in the Financial Express (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.
and the services 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.
d.
Annual Report
The Annual Report containing, inter alia, Notice of
Annual General Meeting, Audited Standalone Financial
Statement and 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 the Annual Report is 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 Registrar and Transfer
Agent of the Company and has urged the other
Members to register their E-mail Ids to receive the
communication electronically.
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.
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, if any, 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, any
price sensitive information disclosed to the regulatory
authorities from time to time, business activities
Exclusively for investor servicing, the Company has
set up unique investor Help Desk with multiple access
modes as under:
Toll free no. (India)
: 1800 309 4001
Telephone no.
: +91 40 6716 1500
Facsimile no.
: +91 40 6716 1791
Email
: rinfra@kfintech.com
h.
Designated email-id:
The Company has also designated email-Id: rinfra.
investor@relianceada.com, exclusively for investor
servicing.
57
Reliance Infrastructure Limited
Corporate Governance Report
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 Report 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 has 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.
Periodical review of Risk Management process
including that of the subsidiary companies is made
by the Risk Management Committee / Audit
Committee / Board.
The Company has formulated policy for determining
material subsidiaries which
is put on Company’s
website with web
link: https://www.rinfra.com/
d o c u m e n t s / 1 1 4 2 8 2 2 / 1 1 8 9 6 9 8 / P o l i c y _ f o r _
Determination_of_Material_Subsidiary_updated.pdf.
One of the Independent Directors is appointed on the
Board of the subsidiaries as and when a subsidiary
becomes an “unlisted material subsidiary” in accordance
with Regulation 24, read with Regulation 16, of the
Listing Regulations. Ms. Ryna Karani and Shri S S Kohli,
the Independent Directors of the Company have been
appointed on the Boards of BSES Yamuna Power Limited
and BSES Rajdhani Power Limited, material subsidiaries of
the Company.
58
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 2020-21, 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 the Companies (Indian Accounting
Standards) Rules, 2015 (Ind AS) notified under
Section 133 of the Act, read with relevant Rules
and other accounting principles, 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
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 2020-21.”
Executive Director and Chief Executive Officer
Punit Garg
Reliance Infrastructure Limited
Corporate Governance Report
e.
CEO and CFO certification
Shri Punit Garg, Executive Director and Chief
Executive Officer and Shri Pinkesh Shah, 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,
2021 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 website at the web link: https://www.
rinfra.com/documents/1142822/1189698/Rinfra_
Revised_Code_under_POIT_2020.pdf
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, 2021 were as under:
Particulars
Sr.
No.
(a) Aggregate number of
shareholders and the
outstanding shares lying in
suspense account as on April
1, 2020
No. of
shareholders
No. of
shares
502 4056
(b) Number of shareholders
0
0
who approached listed
entity for transfer of shares
from suspense account
during April 1, 2020 to
March 31, 2021
(c) Number of shareholders
0
0
to whom shares were
transferred from suspense
account during April 1,
2020 to March 31, 2021
(d) Number of Shares
transferred to IEPF
(e) Aggregate number of
shareholders and the
outstanding shares lying
in suspense account as on
March 31, 2021
218 1149
284 2907
The voting rights on the shares outstanding in the
‘Reliance Infrastructure Limited- Unclaimed Suspense
Account’ as on March 31, 2021 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.
XVI. Fees to Statutory Auditors
The details of fees paid to M/s. Chaturvedi & Shah
LLP, Chartered Accountants, Statutory Auditors by the
Company and its subsidiaries during the year ended
March 31, 2021 are as follows:
Sr. No. Particulars
Amount (` In Lakhs)
1
2
3
Audit Fees
Certification Charges
Other Matters
Total
77.55
5.94
-
83.49
59
Reliance Infrastructure Limited
Corporate Governance Report
XVII. Disclosures in relation to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
c.
Reporting of Internal Auditor
The internal auditor reports directly to the Audit
Committee of the Company.
As reported by Internal Complaint Committee, the details
of complaints are as under:
XIX General shareholder information
Sr.
No.
1
2
3
Particulars
Details
No. of complaints filed during the
financial year
No. of complaints disposed off during
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.
Audit Qualifications
The qualification and management response to it
are mentioned in the Director’s Report forming part
of this report.
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.
Review of governance practices
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.
60
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
Sr.
No.
Regulation Compliance
Compliance Observed
Status
1
Board of Directors
17
Yes
• Composition and Appointment of Directors
• Meetings and Quorum
• Review of compliance reports
• Plans for orderly succession for appointments
• Code of Conduct
• Fees / compensation to Non-Executive Directors
• Minimum information to be placed before the Board
• Compliance Certificate
• Risk assessment and management
• Performance evaluation of Independent Directors
• Recommendation of the Board for each item of Special
Business
2 Maximum number of Directorship
17A
3
Audit Committee
18
Yes
Yes
• Directorship in listed entities
• Composition
• Meeting and Quorum of the Committee
• Chairperson present at the Annual General Meeting
• Role of the Committee
4
5
Nomination and Remuneration
Committee
19
Yes
• Composition
• Meeting and Quorum of the Committee
• Chairperson present at the Annual General Meeting
Stakeholders Relationship
Committee
• Role of the Committee
20
Yes
• Composition
• Meetings and Quorum of the Committee
• Chairperson present at the Annual General Meeting
• Role of the Committee
6
Risk Management Committee
21
Yes
• Composition
7
Vigil Mechanism
8
Related Party Transactions
• Meetings and Quorum of the Committee
• Chairperson present at the Annual General Meeting
• Role of the Committee
22
23
Yes
• 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 and
the Board
• Review of Related Party Transactions
• No material Related Party Transactions
• Disclosure of Related Party Transactions on consolidated
basis
61
Reliance Infrastructure Limited Corporate Governance Report
Particulars
Sr.
No.
Regulation Compliance
Compliance Observed
Status
9
Subsidiaries of the Company
24
Yes
• Appointment of Company’s Independent Director on the
board of unlisted material subsidiary
• Review of financial statements and investments of subsidiary
by the Audit Committee
• Minutes of the board of directors of the unlisted subsidiaries
are placed at the meeting of the board of directors of the
Company
• Significant transactions and arrangements of unlisted
subsidiary are placed at the meeting of the Board of Directors
of the Company
10 Secretarial Audit
24A
Yes
• Secretarial Audit of the Company
11 Obligations with respect to
Independent Directors
12 Obligations with respect to
employees including Senior
Management, Key Managerial
Personnel, Directors and Promoters
• Secretarial Audit of the Unlisted Material Subsidiaries
• Annual Secretarial Compliance Report
25
Yes
• No alternate director for Independent Directors
• Maximum Directorship and tenure
• Meetings of Independent Directors
• Cessation and appointment of Independent Directors
• Familiarisation of Independent Directors
• Declaration by Independent Directors
• Directors & Officer’s Insurance
26
Yes
• Memberships / Chairmanships in Committees
• Affirmation on compliance of Code of Conduct by Directors
and Senior Management
• 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 Personnel, Director and Promoter
13 Other Corporate Governance
27
Yes
• Compliance with discretionary requirements
Requirements
14 Website
46(2)(b)
to (i)
• Filing of compliance report on Corporate Governance
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
• Details of establishment of Vigil Mechanism / Whistle-
blower policy
• Criteria of making payment to Non-Executive Director
• Policy on dealing with Related Party Transactions
• Policy for determining material subsidiaries
• Details of
familiarisation programmes
imparted
to
Independent Directors
62
Reliance Infrastructure Limited 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, 2021, 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, 2021.
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 28, 2021
UDIN : F006988C000797459
63
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, and
based on the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors
and the legal opinion obtained by the Company, none of the directors is disqualified as on March 31, 2021 from being appointed as
a director in terms of Section 164(2) of the Act. I hereby certify that none of the Directors on the Board of the Company as stated
below for the Financial Year ending on March 31, 2021, 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.
Mr. Anil D. Ambani
Mr. S Seth
Mr. S S Kohli
Mr. K Ravikumar
Ms. Ryna Karani
Mr. Punit Garg
Ms. Manjari Kacker
00004878
00004631
00169907
00119753
00116930
00004407
06945359
Date of appointment in
Company
Date of Cessation
18/01/2003
24/11/2000
14/02/2012
14/08/2012
20/09/2014
06/04/2019
14/06/2019
-
-
-
-
-
-
-
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 28, 2021
UDIN : F006988C000797349
64
Reliance Infrastructure Limited Investor Information
Important Points
Members holding shares in electronic mode are:
Investor should hold securities in dematerialised form as
transfer of shares in physical form is no longer permissible.
a.
As mandated by the Securities and Exchange Board of India
(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.
b.
c.
Members are advised to dematerialise share(s) 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;
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 eliminating the need to correspond
with each of them separately;
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
Holding
Instruments,
Government securities, Mutual Fund Units, etc. in a single
account;
in Equity, Debt
Ease of pledging of securities; and
•
•
•
•
•
•
•
•
requested to submit their PAN and bank account details
to their respective DPs with whom they are maintaining
their demat accounts.
advised to contact their respective DPs for registering
the nomination.
requested to register / update their e-mail address with
their respective DPs for receiving all communications
from the Company electronically.
SEBI 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.
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.
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.
Ease in monitoring of portfolio.
Electronic Payment Services
Members holding shares in physical mode are:
a.
b.
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.
in
shareholding
advised to register the nomination in respect of
their
the Company. Nomination
Form (SH-13) is put on the Company’s website and
link https://www.rinfra.com/
can be accessed at
documents/1142822/1189698/Nomination_Form_
SH_13_20200524.pdf
c.
requested to register / update their e-mail address with
the Company / Kfintech for receiving all communications
from the Company electronically.
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.
65
Reliance Infrastructure Limited
Investor Information
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.
Register for SMS alert facility
Investor should register with their DPs 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.
The Nomination 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 DPs directly, as per the
form prescribed by them.
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/
DPs. 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
66
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
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 92nd Annual General Meeting (AGM) is convened to be held
on Tuesday, September 14, 2021 at 2.00 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. (IST) on Friday, September 10, 2021 to 5.00
P.M. (IST) on Monday, September 13, 2021. At the end of
remote e-voting period, the facility shall forthwith be blocked.
However, the e-voting facility shall also be made available to
the shareholders present at the meeting through VC/OAVM who
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.
Pursuant to Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242
dated December 9, 2020, effective from June 9, 2021, SEBI
has revised the procedure for e-voting facilities to be provided
by listed entities for individual shareholders holding security
demat form. Members are requested to follow the procedure
/ instructions provided in the Notes to Notice for the Annual
General Meeting pursuant to the aforesaid circular.
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.
Reliance Infrastructure Limited Investor Information
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 309 4001
Website: www.kfintech.com
Email: rinfra@kfintech.com
Shareholders/Investors are requested to forward share transfer
documents, dematerialisation requests through their DPs and
other related correspondence directly to Kfintech at the above
address for speedy response.
Dividend announcements
The Board of Directors of the Company has not recommended
any dividend for the financial year 2020-21.
Unclaimed dividend/ Shares
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
Rules) have come into force with effect from September 7,
2016.
The Company has transferred the dividend for the years 1996-
97 to 2012-13 remaining unclaimed for seven years from the
date of declaration to IEPF.
During the year under review, the Company transferred
` 1,86,69,112.40 from the unclaimed dividend account to
the Investor Education and Protection Fund, pertaining to the
year 2012-13 pursuant to the provisions of the Companies Act,
2013.
During the year, the Company has also transferred to the IEPF
Authority 1,23,191 shares of ` 10 each, pertaining to the year
2012-13 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 2, 2020.
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 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, 2021 (`)
2013-14
2014-15
2015-16
2016-17
2017-18
7.50
8.00
8.50
9.00
9.50
September 30,2014
November 6, 2021
September 30, 2015
November 6, 2022
September 27, 2016
November 4, 2023
September 26, 2017
November 2, 2024
September 18, 2018
October 25, 2025
2,02,50,262.50
2,28,19,696.00
2,60,11,496.00
2,92,57,209.00
2,24,23,334.50
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 dividend for the financial year 2013-14; and (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
IEPF, 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.
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 Company as on June 23, 2020 (date of last
Annual General Meeting) and 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.
67
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 31.03.2021
As on 31.03.2020
Number of
Shares
%
Number of
Shares
%
1,30,13,424
4.95
3,83,73,361
14.59
-
-
-
-
1,30,13,424
4.95
3,83,73,361
14.59
Insurance Companies
Foreign Institutional Investors (FII) /
1,24,54,551
71,69,756
4.74
2.73
1,24,54,551
3,47,42,887
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)
18,952
1,22,00,294
60,201
0.01
4.64
0.02
34,571
1,22,05,341
1,29,578
21,57,46,749
82.04 16,27,24,799
24,76,50,503
94.17 22,22,91,727
18,76,073
0.71
18,74,912
18,76,073
4,50,000
4,50,000
0.71
0.17
0.17
18,74,912
4,50,000
4,50,000
GRAND TOTAL (A) + (B) + (C) + (D)
26,29,90,000
100 26,29,90,000
4.74
13.21
0.01
4.64
0.05
61.87
84.52
0.71
0.71
0.17
0.17
100
* 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 31.03.2021
Total shares
as on 31.03.2021
Number of Shareholders
as on 31.03.2020
Total shares
as on 31.03.2020
Number
%
Number
%
Number
%
Number
%
1 – 500
501 - 5,000
5,001 - 1,00,000
1,00,001and above
Total
7,41,053
24,948
3,487
204
7,69,692
96.28
2,51,48,489
3,73,06,145
5,75,79,588
14,29,55,778
3.24
0.45
0.03
100
9.56
14.19
21.89
54.36
7,65,866
96.71
2,39,09,072
22,802
3,115
2.88
0.39
3,38,86,352
4,86,20,924
190
0.02 15,65,73,652
26,29,90,000
100.00
7,91,973
100 26,29,90,000
9.09
12.89
18.49
59.53
100
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, 2021, 98.98 per cent of the Company’s equity shares are held in dematerialised form.
68
Reliance Infrastructure Limited
Investor Information
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
Notes:
01.04.2008
01.04.2008
31.03.2010
07.01.2011
21.04.2011 to
13.02.2012
31.03.2021
Dates
Particulars
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
Price per
equity Shares (`)
Number of
Shares
Cumulative
Total
23,65,30,262
N.A - 1,12,60,000 22,52,70,262
928.89 +1,96,00,000 24,48,70,262
928.89 + 2,25,50,000 26,74,20,262
- 44,30,262 26,29,90,000
N.A
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.
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 2020-21
BSE Limited
National Stock Exchange
of India Limited
Month
April 2020
May 2020
June 2020
July 2020
August 2020
September 2020
October 2020
November 2020
December 2020
January 2021
February 2021
March 2021
High
`
Low
`
Volume
(Nos.)
High
`
Low
`
Volume
(Nos.)
24.08
21.15
38.70
44.70
32.70
28.90
23.65
23.40
30.80
32.90
34.80
42.75
10.60
14.95
51,15,902
35,82,499
16.85 104,00,574
27.85 1,93,58,854
26.50
21.45
19.75
19.20
57,00,307
30,90,417
69,94,895
86,31,761
20.25 1,92,74,253
26.85 1,29,43,982
27.20
83,56,602
30.75 1,55,74,837
23.80
21.15
38.70
44.70
32.60
28.90
23.75
23.00
30.60
33.00
34.80
42.75
10.50
15.05
16.80
2,22,29,660
2,53,44,604
6,51,48,608
27.85 13,13,61,147
26.70
21.45
19.55
19.20
5,16,80,855
2,73,85,444
4,05,03,019
6,59,28,611
20.20 10,35,24,732
26.95
27.20
7,02,26,106
5,17,70,006
30.60 10,18,76,493
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$ = ` 73.11 as on March 31, 2021.
69
Reliance Infrastructure Limited
Investor Information
Stock Exchange listings
The Company’s equity shares are actively traded on BSE Limited
(BSE) and the National Stock Exchange of India Limited (NSE).
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
Note:
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,
240 Greenwich Street,
New York, NY 10286, United States
Domestic Custodian
ICICI Bank Limited, Securities Market Services
Empire Complex, F7/E7 1st Floor
414 Senapati Bapat Marg,
Lower Parel, Mumbai 400 013
: 500390
Security Codes of GDRs
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
Master Rule
144A GDRs
Master Regulations
GDRs
CUSIP
ISIN
75945E109
US75945E1091 USY097891193
Y09789119
Common Code
6099853
6099853
Outstanding GDRs of the Company and likely impact on equity
Outstanding GDRs as on March 31, 2021 represent 18,76,073 equity shares constituting 0.71 per cent of the paid-up equity share
capital of the Company. Each GDR represents three underlying equity shares in the Company.
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 2021-22 has been paid
by the Company.
Credit Rating & Details of Revision
Type of Instrument
Non-Convertible Debentures
issued on Private Placement basis
Long Term Loans
Short Term Bank Facilities
Non-Convertible Debentures
issued on Private Placement basis
Bank Facilities (Long Term / Short
Term)
Long Terms Loans
Rating as on April 1, 2020
CARE D – Issuer not Co-operating
Rating as on March 31, 2021
CARE D – Issuer not Co-operating
CARE D – Issuer not Co-operating
CARE D – Issuer not Co-operating
IND C – Issuer not Co-operating
CARE D – Issuer not Co-operating
CARE D – Issuer not Co-operating
IND D
IND D – Issuer not Co-operating
IND D
BWR D – Issuer not Co-operating
BWR D
Rating Agency
CARE Ratings
Limited1
India Ratings and
Research Private
Limited2
Brickwork Ratings
India Private
Limited3
70
Reliance Infrastructure Limited
Investor Information
Notes:
1.
2.
3.
CARE Rating from D (Issuer not Co-operating) to D to D (Issuer not Co-operating).
Indian Ratings from D (Issuer not Co-operating) to D.
BWR Rating from D (Issuer not Co-operating) to D.
Share Price Performance in comparison with broad based indices – BSE Sensex and NSE Nifty
Period
FY 2020-21
2 years
3 years
Reliance Infrastructure
(%)
Sensex BSE (%)
NIFTY NSE (%)
244.12
(74.38)
(91.79)
68.01
28.02
50.17
70.87
26.38
45.26
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 2021-22
Unaudited results for the First Quarter ended June 30, 2021
:
On or before August 14, 2021
Unaudited results for the Second Quarter and half year ending September 30, 2021 :
On or before November 14, 2021
Unaudited results for the Third Quarter ending December 31, 2021
Audited results for the Financial Year 2021-22
:
:
On or before February 14, 2022
On or before May 30, 2022
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 Floor, Kamala Mills Compound, Lower Parel, Mumbai 400 013,
website: www.nsdl.co.in or Central Depository Services (India) Limited, Marathon Futurex, A-Wing, 25th Floor, N M Joshi Marg,
Lower Parel (E), Mumbai 400013 website: www.cdslindia.com.
Communication to Members
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
SEBI 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 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:
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 309 4001
71
Reliance Infrastructure Limited Investor Information
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,
Company Secretary
Reliance Infrastructure Limited
Reliance Centre, Ground Floor
19, Walchand Hirachand Marg,
Ballard Estate, Mumbai – 400001
Ballard Estate, Mumbai – 400001
Tele : +91 22 4303 1000
Fax : +91 22 4303 4662
Tele : +91 22 4303 1000
Fax : +91 22 4303 4662
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.
72
Reliance Infrastructure Limited Standalone Financial
Statement
73
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, 2021, 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”), which includes
5 Joint Operations accounted on proportionate basis.
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, 2021 aggregating to
` 6,491.38 crore (net of provision of ` 3,972.17 crore
and amount written off during the year of ` 1,009.51
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 Statement of Changes in Equity of the
Standalone financial statements wherein the loss on
invocation of shares and/or fair valuation of shares of
investments held in Reliance Power Limited (RPower)
aggregating to ` 5,024.88 crore for year ended March 31,
2020 was adjusted against the capital reserve as against
charging the same in the Statement of Profit and Loss.
The said treatment of loss on invocation and fair valuation
of investments was not in accordance with the Ind AS
28 “Investment in Associates and Joint Venture”, Ind AS
1 “Presentation of Financial Statements” and Ind AS 109
“Financial Instruments”. Had the Company followed the
above Ind AS’s the Retained earnings as at March 31,
2020 and March 31, 2021 would have been lower by
` 5,024.88 crore and Capital Reserve of the Company
as at March 31, 2020 and March 31, 2021 would have
been higher by ` 5,024.88 crore
74
Material Uncertainty Related to Going Concern
We draw attention to Note 51 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 loss of ` 51.75 crore for the year
ended March 31, 2021 has been debited to Statement
of Profit and Loss and an equivalent amount has been
withdrawn from General Reserve in terms of the Scheme.
Had such withdrawal not been made, loss before tax for
the year ended March 31, 2021 would have been higher
by ` 51.75 crore and General Reserve would have been
higher by an equivalent amount.
2. We draw attention to Note 14 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, 2021 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 performed by the Company in respect
of its receivables of ` 2,380.78 crore from Reliance
Power Limited and its subsidiaries (RPower Group) 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 42 to the standalone financial
statements which describes the impairment assessment
performed by the Company in respect of its Investments and
loans of ` 3,473.18 crore in ten subsidiaries i.e. Toll Road
SPV’s Companies (including KMTR as stated in paragraph
2 above) in accordance with Ind AS 36 “Impairment
of assets” / Ind AS 109 “Financial Instruments”. This
Reliance Infrastructure Limited
Independent Auditor’s Report on the Standalone Financial Statements
assessment involves significant management judgment
and estimates on the valuation methodology and various
assumptions used by the management as more fully
described in the aforesaid note. Based on management’s
assessment no impairment is considered necessary on the
investments and loans.
5. We draw attention to Note 52 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.
the Standalone
Management’s Responsibility for
Financial Statements
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, losses 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.
Other Matters
(i)
1.
The standalone financial statements include the
audited financial statements and other financial
information of 3 joint operations, whose financial
Statement includes, total assets of ` 286.60
crore as at March 31, 2021, total revenues of
` 303.74 crore, total net profit/(loss) after tax of
` (1.51) crore and total comprehensive income /
(loss) of ` (1.51) crore for theyear ended March
31, 2021 as considered in this Standalone Financial
Statement. These financial statement and other
financial information have been audited by other
auditors whose reports have been furnished to us by
the Management and our opinion on the standalone
financial statements, in so far it relates to amounts
and the disclosures included in respect of these
joint operations, is solely based on the reports of
the other auditors and the procedures performed by
us are as stated in paragraph above.
(ii) The Standalone financial statement includes the
unaudited financial statements and other financial
information of 2 Joint Operations, whose financial
statements / financial information reflect total assets of
` 3.77 crore as at March 31, 2021, total revenue
of ` Nil, net profit/ (loss) after tax of ` Nil and total
comprehensive income/(loss) of ` Nil for the year
ended March 31, 2021 respectively and cash flows
(outflow/inflow) of ` Nil for the year ended March
31, 2021, as considered in this standalone financial
statements. These unaudited financial statements
and other financial information have been furnished
to us by the Board of Directors and our opinion on
the standalone financial statements, in so far as it
relates to the amounts and disclosures included in
respect of these jointly controlled entities is based
solely on such unaudited financial statements and
other financial information. In our opinion and
according to the information and explanations
given to us by the Board of Directors, these financial
statements and other financial information are not
material.
2.
The comparative audited standalone financial statements
of the Company for the year ended March 31, 2020
included in these standalone financial statements had
been audited by Pathak H.D. & Associates LLP, Chartered
Accountants, whose reports dated May 8, 2020 expressed
a Disclaimer of Opinion on those audited standalone
financial statements for year ended March 31, 2020.
Our opinion on the standalone financial statements 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 and other financial
information certified by the management.
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.
a)
2.(A) As required by section 143(3) of the Act, we report that:
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
b)
75
Reliance Infrastructure Limited
Independent Auditor’s Report on the Standalone Financial Statements
c)
d)
e)
f)
g)
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.
The Company has defaulted in repayment of the
obligations to its lenders and debenture holders which
is outstanding as at March 31, 2021. Based on the
legal opinion obtained by the Company and based on
the written representations received from the directors
as on March 31, 2021 taken on record by the Board
of Directors, none of the directors is disqualified as on
March 31, 2021 from being appointed as a director
in terms of section 164(2) of the Act.
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 of the
Act.
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.
iii.
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, 2021 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 contracts
including derivative contracts for which there were
any material foreseeable losses.
Other than for dividend amounting to ` 0.18 crore
pertaining to the financial year 2010-2011, financial
year 2011-12 and financial year 2012-13 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.
For Chaturvedi & Shah LLP
Chartered Accountants
Firm’s Registration No:101720W/W100355
Parag D. Mehta
Partner
Membership No: 113904
UDIN: 21113904AAAABI6196
i) With respect to the adequacy of the internal financial
controls with reference to standalone financial
Date: May 28, 2021
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, 2021
(i)
(a)
The Company is maintaining proper records showing full particulars, including quantitative details and situation of its
fixed assets.
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:
(b)
(c)
Particulars
of Land and
Building
Freehold land
at various
locations
Freehold land
at Hyderabad
76
Total
number
of cases
2
Gross Block as
on March 31,
2021 (` Crore)
18.60
Net Block as
on March 31,
2021 (` Crore)
18.60
1
4.16
4.16
Remarks
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.
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:
Particulars
of Land and
Building
Total
number of
cases
Gross Block as
on March 31,
2021 (` Crore)
Net Block as on
March 31, 2021
(` Crore)
Remarks
Leasehold land at
various locations
Leasehold land at
MIDC
3
1
0.35
0.29
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)
(iii)
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.
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. Further, as the Company is engaged in the business of providing
infrastructural facilities, the provisions of Section 186[except for sub-section (1)] are not applicable to it.
(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,
2021 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
20.791
2017-18
Income Tax Act,
1961
Tax Deducted at
source
1.242
Upto September
2020
Due Date
18 September
2018
Date of
Payment
Not yet paid
Various Dates
Not yet paid
*Including interest of 1 ` 1.18 crore and 2 ` 0.28 crore.
77
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, 2021 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
225.95
(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,
and
2008-2009,
A.Y.
1998-1999,
1999-2000,
2001-2002,
2002-2003,
2003-2004,
2007-2008,
2008-2009,
2009-2010,
2010-2011,
2011-2012
AY 2015-16
Income Tax Act, 1961
Income Tax
153.35
78
Reliance Infrastructure Limited
Annexure A to Auditors’ Report
Name of the statute
Income Tax Act, 1961
Nature of
dues
Income Tax
Penalty
Amount
(` Crore)
353.79
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 defaulted in repayment of loans or borrowings to financial institution or bank or dues to debenture holders for
the following instances 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
March 31, 2021 (` Crores)
Period of default as at
March 31, 2021 (days)
Principal
Interest
Principal
Interest
A)
B)
Term Loans/ Working Capital Loan from
Banks / Financial Institution
Jammu & Kashmir Bank
Canara Bank
Yes Bank
Srei Equipment Finance Limited
Debentures
75.00
352.81
2,017.33
17.65
1,087.70
22.90
37.08
9.13
7.14
264.34
841
917
329
487
821
588
58
670
365 to 558 days
Your attention is also drawn
to note no 17.2 and 18.2 of
standalone financial statement
(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.
79
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.
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 Chaturvedi & Shah LLP
Chartered Accountants
Firm’s Registration No:101720W/W100355
(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.
Parag D. Mehta
Partner
Membership No: 113904
UDIN: 21113904AAAABI6196
(xv) 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 Basis for
Date: May 28, 2021
Place: Mumbai
80
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, 2021
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
We were engaged to audit the internal financial controls over
financial reporting of Reliance Infrastructure Limited (hereinafter
referred to as “the Company”) as of March 31, 2021, in
conjunction with our audit of the standalone financial statements
of the Company for the year ended on that date.
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.
Management’s Responsibility for Internal Financial Controls
Disclaimer of Opinion
The Company’s management are responsible for establishing
and maintaining internal financial controls based on the internal
control over financial reporting 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 (the “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 over financial reporting 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 prescribed under section 143(10) of
the Act,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 over financial reporting with reference
to the standalone financial statements of the Company.
Meaning of Internal Financial controls over financial reporting
with Reference to Financial Statements
A company’s internal financial controls over financial reporting
with reference to financial statements is a process designed to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of Standalone financial statements
for external purposes in accordance with generally accepted
accounting principles. A company’s internal financial controls
over financial reporting with reference to financial statements
include those policies and procedures that (1) pertain to the
1. As at March 31, 2021, the Company has investments in and
amounts recoverable from a party aggregating to ` 6,491.38
crore (net of provision of ` 3,972.17 crore and amount written
off during the year of ` 1,009.51 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, 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
over financial reporting with reference to standalone financial
statements and whether such internal financial controls were
operating effectively as at March 31, 2021.
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 Chaturvedi & Shah LLP
Chartered Accountants
Firm’s Registration No:101720W/W100355
Parag D. Mehta
Partner
Membership No: 113904
UDIN: 21113904AAAABI6196
Date: May 28, 2021
Place: Mumbai
81
Reliance Infrastructure Limited Balance Sheet as at March 31, 2021
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
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, 2021
` Crore
As at
March 31, 2020
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
379.57
16.53
-
0.04
7,655.21
86.37
9.81
29.55
5.92
8,183.00
582.57
28.73
482.66
0.82
8,010.34
51.13
13.64
88.42
69.23
9,327.54
3.65
3.68
2,848.34
56.44
73.44
5,740.73
2,109.70
1,183.81
12,016.11
544.94
20,744.05
263.03
10,112.55
10,375.58
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
115.94
3,416.38
-
18.16
212.61
160.00
0.05
1,364.66
1,871.42
-
25.25
123.92
160.00
93.93
1,426.71
5,246.19
448.15
741.92
11.88
1,693.74
3,743.03
2,137.24
20.14
442.87
8,497.05
20,744.05
13.05
2,368.15
2,048.20
1,827.58
47.62
477.11
7,523.63
23,216.83
The accompanying notes form an integral part of the standalone financial statements (1 to 54).
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
82
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
Reliance Infrastructure Limited
Statement of Profit and Loss for the year ended March 31, 2021
Particulars
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
Less: Transfer from General Reserve
Total Expenses
Profit before Exceptional Items and Tax
Exceptional Items
Profit/(Loss) Before Tax
Tax Expenses
- Current Tax
- Deferred tax Credit (Net)
- Income tax for earlier years (Net)
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
Total Comprehensive Income
Earnings per Equity Share (after exceptional Items)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
Earnings per Equity Share (before exceptional Items)
(Face Value of ` 10 per share)
Basic and Diluted (in Rupee)
Note
24
25
38
26
27
3, 4 & 5
28
38
39
23(e)
29
Year ended
March 31, 2021
1,689.15
833.02
-
833.02
2,522.17
` Crore
Year ended
March 31, 2020
1,319.07
2,161.05
141.41
2,019.64
3,338.71
1,384.13
78.33
1,193.23
59.24
324.07
51.75
272.32
2,987.25
(465.08)
353.56
(111.52)
1.44
(93.88)
-
(92.44)
(19.08)
0.21
-
0.21
1,040.15
86.24
918.15
65.31
233.24
-
233.24
2,343.09
995.62
-
995.62
4.35
(40.06)
(0.06)
(35.65)
1,031.27
2.94
-
2.94
(18.87)
1,034.21
(0.73)
39.21
(14.17)
39.21
(2.69)
44.59
(0.73)
39.21
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 54).
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
83
Reliance Infrastructure Limited
.
3
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Reliance Infrastructure Limited
Cash Flow Statement for the year ended March 31, 2021
Particulars
A.
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
Recovery from Investment earlier written off
Exceptional Items (net)
Excess Provisions written back
Loss/(Profit) on Sale / Discarding of Assets (Net)
Bad Debts
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 Operating Activities
B.
Cash Flow from Investing Activities :
` Crore
Year ended
March 31, 2021
Year ended
March 31, 2020
(111.52)
995.62
59.24
(10.84)
65.31
(41.76)
(144.98)
(1,038.00)
(65.98)
(60.38)
(54.55)
1,193.23
-
(36.86)
(353.56)
(423.76)
(3.51)
89.58
76.11
509.70
0.04
(121.95)
387.79
463.90
(18.45)
445.45
(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
Purchase of Property, Plant and Equipment (including Capital work-in-progress,
capital advances and capital creditors)
(14.03)
(6.58)
Proceeds from Disposal of Property, Plant and Equipment and Investment Property*
Net Income relating to Investment Property
Redemption of Fixed Deposits with Banks
Investments in Subsidiaries / Joint Ventures / Associates
Sale of Investment in Subsidiaries/ Joint Ventures / Associates
Sale / Redemption of Investments in Others
Loans given (Net)
Dividend Received
Interest Income
Net Cash generated from Investing Activities
7.84
(5.95)
86.36
(6.39)
883.00
47.74
(15.41)
60.38
7.87
1,051.41
3.37
31.20
21.44
(31.90)
176.51
67.19
326.30
29.85
256.98
874.36
86
Reliance Infrastructure Limited Cash Flow Statement for the year ended March 31, 2021
Particulars
C.
Cash Flow from Financing Activities :
Repayment of Long Term Borrowings*
Short Term Borrowings (Net)
Payment of Interest and Finance Charges
Dividends paid to shareholders
` Crore
Year ended
March 31, 2021
Year ended
March 31, 2020
(702.64)
(94.23)
(714.30)
(1.93)
(242.53)
(168.08)
(689.79)
(1.87)
Net Cash Generated from/ (used in) Financing Activities
(1,513.10)
(1,102.27)
Net Increase / (Decrease) in Cash and Cash Equivalents ( A+B+C)
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
Components of Cash and Cash Equivalents (Refer Note No 9)
(16.24)
72.68
56.44
(16.24)
56.44
1.79
70.89
72.68
1.79
72.68
The above statement of cash flows should be read in conjunction with the accompanying notes (1 to 54).
* Excluding transfer of Investment property and Property, plant & equipment of ` 1200 Cr to lenders towards their outstanding
# Including balance in unpaid dividend account of ` 12.25 crore (` 14.18 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 Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
87
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, Airport,
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 Indian Companies Act, 1913. The registered office of the Company is situated at 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, 2021 were authorised for issue by the board
of directors on May 28, 2021. 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
All other assets are classified as non-current.
88
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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
to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates
89
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
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:
90
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
•
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.
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.
91
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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.
92
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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.
93
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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 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.
94
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
(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.
95
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
96
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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
97
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
98
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
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.
99
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
•
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.
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.
100
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Note 3: Property, Plant and Equipment
Particulars
Freehold
Land
Leasehold
Land
Buildings
Plant and
Machinery
Furniture
and Fixtures
Vehicles
Office
Equipment
Computers
Electrical
Installations
Total
` Crore
Capital
work in
progress
Gross carrying amount
As at April 1, 2019
Additions
Disposals/adjustments
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
Gross carrying amount
Opening gross carrying amount
as at April 1, 2020
Additions
Regroup from Investment
Property
Disposals/adjustment
Closing gross carrying amount
as on March 31, 2021
Accumulated depreciation and
impairment
As at April 1, 2020
Depreciation charge during
the year
Regroup from Investment
Property
Disposals
Closing accumulated
depreciation and impairment
as on March 31, 2021
Net carrying amount as on
March 31, 2021
Notes:
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
-
3.26
31.97
9.04
1.52
39.49
244.31
33.64
-
277.95
2.54
0.46
-
3.00
1.37
0.28
-
1.65
5.46
-
-
5.46
2.47
0.61
-
3.08
1.41
0.09
-
1.50
0.37
0.17
-
0.54
4.52
0.11
1.27
3.36
0.93
0.83
1.20
0.56
4.64
0.01
-
915.59
4.18
7.84
26.01
2.72
-
4.65
911.93
28.73
2.48
0.35
286.55
45.53
-
2.72
2.83
329.36
-
-
-
-
272.44
16.94
113.38
170.50
1.35
2.38
0.96
2.80
1.82
582.57
28.73
272.44
20.20
152.87
448.45
-
-
179.48
92.96
-
-
-
0.52
-
1.08
13.04
-
-
20.20
152.31
461.49
-
-
-
-
-
3.26
0.59
-
-
3.85
39.49
8.55
277.95
28.39
-
0.70
47.34
-
-
306.34
3.00
-
2.44
0.02
5.42
1.65
0.28
1.19
0.01
3.11
5.46
-
-
3.18
2.28
3.08
0.33
-
2.13
1.28
1.50
0.02
-
0.01
1.51
0.54
0.14
-
-
0.68
3.36
4.65
911.93
28.73
0.09
37.24
0.01
40.68
0.56
0.28
35.35
0.01
36.18
-
-
13.67
39.68
-
-
0.01
4.64
183.79
781.49
12.20
16.53
2.83
0.32
329.36
38.88
-
36.54
0.01
3.14
2.86
401.92
-
-
-
-
92.96
16.35
104.97
155.15
2.31
1.00
0.83
4.50
1.50
379.57
16.53
(i)
(ii)
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.
101
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021 (iii) Capital work-in-progress: Capital work in progress comprises expenditure income towards assets under construction.
Particulars
CWIP Movement
CWIP Movement
Year
2020-21
2019-20
Opening
28.73
26.01
Addition Capitalisation
-
-
-
2.72
Deduction
12.20
-
4.
Investment Property
Particulars
Gross Carrying Amount
Opening Gross Carrying Value
Additions
Regrouped to Property, Plant & Equipment and Intangible Assets
Disposal during the year (refer note 39)
Closing Gross Carrying Value
Accumulated Depreciation
Opening accumulated depreciation
Depreciation during the year
Regrouped to Property, Plant & Equipments and Intangible Assets
Disposal during the year (refer note 39)
Closing accumulated Depreciation
Net carrying value
(i)
Amounts recognised in the Statement of Profit and Loss for Investment Property
` Crore
Closing
16.53
28.73
` Crore
As at
March 31, 2021
As at
March 31, 2020
599.84
-
39.69
560.15
-
117.18
19.58
36.55
100.21
-
-
599.84
-
-
-
599.84
97.43
19.75
-
-
117.18
482.66
` Crore
Particulars
Rental income
Direct operating expense from property that generated rental income
Profit from Investment Property before Depreciation
Depreciation
(Loss)/Profit from Investment Property
5.
Other Intangible Assets
Computer Software
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
102
Year Ended
March 31, 2021
Year Ended
March 31, 2020
30.54
19.70
10.84
19.58
(8.74)
67.99
26.24
41.76
19.75
22.01
` Crore
1.24
0.03
-
1.27
0.42
0.03
-
0.45
0.82
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Computer Software
Gross carrying amount
As at April 01, 2020
Additions
Transfer from Investment Property
Disposals
Closing gross carrying amount as on March 31, 2021
Accumulated amortisation and impairment
As at April 01, 2020
Amortisation charge during the year
Transfer from Investment Property
Disposals
Closing accumulated amortisation and impairment as on March 31, 2021
Net carrying amount as on March 31, 2021
Note:
(1)
The above Intangible Assets are other than internally generated.
(2) Remaining amortisation period of computer software is between 0 to 1 years.
6.
Inventories
Particulars
Stores, Spares and Consumables
Total
(Inventories are stated at lower of cost and net realisable value.)
` Crore
1.27
-
0.01
-
1.28
0.45
0.78
0.01
-
1.24
0.04
` Crore
As at
March 31, 2021
As at
March 31, 2020
3.65
3.65
3.68
3.68
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)
PS Toll Road Private Limited^#
HK Toll Road Private Limited#**
Face value
in ` unless
otherwise
specified
As at March 31, 2021
As at March 31, 2020
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
10
10
10
10
10
10
10
10
10
10
10
530,400,000
283,560,000
6,27,60,000
50,000
-
37,88,80,000
24,000
9,59,499
23,000,000
530.40
283.56
82.81
18.27
-
761.43
0.02
1.40
-
530,400,000
283,560,000
6,27,60,000
50,000
201,899,380
353,280,000
24,000
9,59,499
23,000,000
7,936
3,711,000
18.52
37.03
7,936
3,711,000
530.40
283.56
82.81
19.19
202.08
761.48
0.02
1.34
-
5.61
37.26
103
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Particulars
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 (applied
for strike off on December 10, 2020)- refer note 34
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
Reliance SED Limited
In Others at FVTPL
Reliance Power Limited #
In Associates at Cost-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) @ ` 1000
North Eastern Electricity Supply Company of Odisha
Limited (NESCO) @ ` 1000
104
Face value
in ` unless
otherwise
specified
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
As at March 31, 2021
As at March 31, 2020
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
-
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
-
50,000
50,000
10,000
50,000
10,000
50,000
49,999
49,999
10,000
18,500
-
209.69
105.67
144.00
5.21
4.48
195.12
7.24
7.39
5.52
2.13
0.85
2.05
46.50
169.49
2.00
0.13
-
0.05
0.05
0.01
0.05
0.01
0.05
0.05
0.05
0.01
0.02
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
-
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
-
166,560,739
72.45
358,298,193
44.78
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
@
@
@
2,000
100
100
@
@
@
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021 Particulars
Southern Electricity Supply Company of Odisha Limited
(SOUTHCO) @ ` 1000
CLE Private Limited
Rampia Coal Mine and Energy Private Limited
Reliance Infra Projects International Limited
Larimar Holdings Limited @ ` 4909
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 Shares in CLE Private 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
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
Zero Coupon Unsecured Redeemable Non-Convertible
Debentures in DA Toll Road Private Limited #
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
Face value
in ` unless
otherwise
specified
10
10
1
USD 1
USD 1
10
10
As at March 31, 2021
As at March 31, 2020
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
100
@
100
@
409,795
27,229,539
10,000
111
555,370
479,460
0.41
2.72
0.04
@
0.56
@
2,717.87
409,795
27,229,539
10,000
111
555,370
479,460
0.41
2.72
0.04
@
0.56
@
2,978.28
USD 1
360,000
678.62
360,000
678.62
10
1
10
10
10
10
10
10
2,000
10,950,000
792,590
175,522
@
@
0.79
0.18
2,000
10,950,000
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
12,222,104
12.22
12,222,104
12.22
216,886
0.22
216,886
0.22
696.11
696.11
1
4,930,870,662
493.08
-
-
100
100
100,000,000
527.27
100,000,000
614.60
120,000,000
632.73
120,000,000
698.61
1,653.08
1,313.21
46.80
198.27
-
302.26
46.80
198.27
444.91
302.26
105
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021 Particulars
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-
refer note 34
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
As at March 31, 2021
As at March 31, 2020
Number of
shares / units
Amount
` Crore
Number of
shares / units
Amount
` Crore
787.53
1,078.51
0.53
54.63
68.59
128.60
156.18
215.04
34.67
15.00
2.50
-
0.11
178.00
3,267.22
679.07
7,655.21
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
Market Value Book Value
Market Value Book Value
72.45
72.45
44.78
44.78
8,261.83
679.07
8,644.63
679.07
* The Balance equity stake is held by another subsidiary, Reliance Airport Developers Limited
** 26,11,20,000 (26,11,20,000) equity shares of Mumbai Metro One Private Limited and 38,66,574 (3,68,245) equity shares
of SU Toll Road Private Limited, 9,89,840 (9,89,840) shares of DS Toll Road Limited, 3,72,609 (3,72,609) shares of GF Toll Road
Private Limited, 20,41,535 (20,41,535) shares of TD Toll Road Private Limited, 24,23,574 (24,23,574) shares of TK Toll Road
Private Limited, 7,05,090 (7,05,090) shares of HK Toll Road Private Limited, 8,50,570 (8,50,570) shares of NK 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, NIL (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, are pledged
with the lenders of the respective investee Companies.
# NIL (45,99,180) shares of DA Toll Road Private Limited, 2,465 (2,465) 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, 40,35,749 (19,57,73,203) shares of
Reliance Power Limited, 1,88,28,000 (1,88,28,000) shares of BSES Kerala Power Limited and 4,930,870,662 Redeemable Non-
Convertible Debentures in DA Toll Road Private Limited are pledged with lenders of the Company.
106
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021 8.
Trade Receivables:
Particulars
As at March 31, 2021
` Crore
As at March 31, 2020
Current Non current
Current Non current
Unsecured considered good unless otherwise stated
Considered good including Retentions on Contract
2,848.34
86.37
4,106.24
51.13
63.96
-
63.96
-
2,912.30
86.37
4,170.20
51.13
63.96
-
63.96
-
2,848.34
86.37
4,106.24
51.13
Credit Impaired
Less: Provision for Doubtful Debts
Total
9.
Cash and Cash Equivalents
Particulars
Balances with Banks in
Current Account
Unpaid Dividend Account*
Cash on hand (@ March 31, 2020:.` 29,124)
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
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 (Secured)
(Unsecured, Considered good unless otherwise stated)
Security Deposits
Considered good
As at
March 31, 2021
` Crore
As at
March 31, 2020
44.18
12.25
0.01
56.44
58.50
14.18
@
72.68
` Crore
As at
March 31, 2021
As at
March 31, 2020
73.44
73.44
179.36
179.36
` Crore
As at March 31, 2021
As at March 31, 2020
Current Non-Current
Current Non-Current
1,672.48
4,050.89
3,829.14
9,552.51
3,829.14
5,723.37
1.21
-
-
-
-
-
-
-
1,282.42
4,466.28
3,829.14
9,577.84
3,829.14
5,748.70
-
-
-
-
-
-
0.60
3.78
16.15
5,740.73
9.81
9.81
15.91
5,765.21
9.86
13.64
*Loan of ` 397.40 crore assigned between parties through an assignment agreement.
107
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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
` 0.16 crore; March 31, 2020 - ` 0.28 crore)
Considered Good
Credit Impaired
Advance to Employees
Other Receivables
Less; Provision for Expected Credit Loss
Total
13. Other Assets:
Particulars
(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
14. Non Current Assets Held for sale and Discontinued Operations
KM Toll Road Private Limited (KMTR)
As at March 31, 2021
As at March 31, 2020
Current Non-Current
Current Non-Current
` Crore
0.75
29.55
-
10.75
1,539.79
0.25
1,677.15
143.03
0.17
431.63
143.03
-
-
-
-
-
143.03
0.57
401.07
143.03
2,109.70
29.55
1,941.43
-
-
77.42
-
88.42
` Crore
As at March 31, 2021
As at March 31, 2020
Current Non-Current
Current Non-Current
382.47
739.96
-
57.89
-
3.49
5.55
-
0.37
-
-
-
398.47
683.78
-
174.77
17.23
1.50
1,183.81
5.92
1,275.75
68.11
-
0.02
-
-
1.10
69.23
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 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. In terms
of the provisions of the Concession Agreement, 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 has also raised further claims of ` 1,092.74 crore.
KMTR has invoked dispute resolution process under clause 44 of the Concession Agreement. Subsequently, vide letter dated
August 21, 2020, NHAI advised its Programme Director for release of termination payment to KMTR and accordingly `
181.21 crore was released during the year towards termination payment, which has been utilised for debt servicing.
As a part of the dispute resolution, KMTR has invoked arbitration and it is confident of fair outcome. Pending final outcome of
the dispute resolution process and as legally advised, the claims for the Termination Payment are considered fully enforceable.
Notwithstanding the dependence on above said uncertain events, KMTR continues to prepare the financial statements on a
going concern basis. The Company is confident of recovering its entire investment in KMTR of ` 544.94 crore as at March
31, 2021 (` 544.94 crore as at March 31, 2020), and hence, no provision for impairment of the KMTR is considered in the
financial statements. The Investment in the KMTR are classified as Non Current Assets held for sale as per Ind AS 105 “Non
Current Assets held for sale and discontinued operations”.
108
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
The Assets and Liabilities related to KMTR are given below:
Particulars
Investments*
Trade Receivables
Total Assets
` Crore
As at
March 31, 2021
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
As at
March 31, 2021
` Crore
As at
March 31, 2020
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, 2021
As at
March 31, 2020
1,22,50,000
2,53,59,937
(b) Reconciliation of the Shares outstanding at the beginning and at the end of the year:
Particulars
Equity Shares:-
As at March 31, 2021
As at March 31, 2020
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
(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
As at March 31, 2021
As at March 31, 2020
No. of Shares % held
No. of Shares
% held
1,23,50,000
@
2,77,09,937
10.54
2,15,32,488
8.19
2,15,80,995
8.21
@ reduce to 4.70%
109
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
Capital Reserve:
Balance as per last Balance Sheet
Less: Loss on Invocation of Shares/Impairment (refer note 36)
2.
Sale proceeds of Fractional Equity Shares
Certificates and Dividends thereon @ [` 37,953 (` 37,953)]
(b)
Securities Premium
Balance as per last Balance Sheet
(c)
Capital Redemption Reserve
Balance as per last Balance Sheet
(d) Debenture Redemption Reserve -
Balance as per last Balance Sheet
Add: Transfer from Retained Earnings
Less: Transfer to General Reserve
(e) General Reserve
Balance as per last Balance Sheet
Add/(less): Transfer from/to Statement of Profit and Loss
(Refer Note No 38)(net)
Add : Transfer from Debenture Redemption Reserve
` Crore
As at
March 31, 2021
As at
March 31, 2020
155.09
@
130.03
8,825.09
212.98
506.74
(1.56)
284.18
155.09
@
130.03
8,825.09
212.98
558.49
(0.75)
303.05
10,112.55
10,183.98
As at
March 31, 2021
` Crore
As at
March 31, 2020
155.09
-
155.09
5,179.97
(5,024.88)
155.09
@
@
8,825.09
8,825.09
130.03
130.03
212.98
-
-
212.98
558.49
(51.75)
-
506.74
165.02
55.66
(7.70)
212.98
409.38
141.41
7.70
558.49
110
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Particulars
(f)
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 : Transfer to Debenture Redemption Reserve
(g) Treasury Shares
Balance as per last Balance Sheet
Less: Provision for Diminution in value of Equity Shares
Total
Nature and purpose of Other Reserves
(a) Capital Reserve:
As at
March 31, 2021
` Crore
As at
March 31, 2020
303.05
(19.08)
0.21
-
284.18
(675.50)
1031.27
2.94
(55.66)
303.05
(0.75)
(0.81)
(1.56)
10,112.55
(6.14)
5.39
(0.75)
10,183.98
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:
The Company has been creating debenture redemption reserve (DRR) till March 31, 2020 as per the relevant provision
of the Companies Act, 2013, however according to Companies (Share Capital and Debenture) Amendment Rules, 2019
effective from August 16, 2019, being a listed entity, the Company is not required to create DRR, hence DRR is not
created in the books of account for the financial year 2020-21.
(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 Related Party
Total Non- Current Borrowings
As at March 31, 2021
As at March 31, 2020
Non Current
Current *
Non Current
Current *
` Crore
-
-
-
-
115.94
115.94
115.94
1,087.70
2,129.30
27.00
3,244.00
-
-
3,244.00
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
111
* Current Maturities of Long term Debt disclosed under other Financial Liabilities (Refer Note No. 20)
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
17.1 Security:
A.
Non Convertible Debentures (NCD) of ` 1,087.70 Crore are secured as under:
(i)
(ii)
` 385 crore are secured by 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, 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 and all of the
Company’s rights, title, interest and benefits in, to and under a specific bank account of Company.
B.
Term Loans from Banks of ` 2,129.30 crore are secured as under:
(i)
` 111.97 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, and ` 36.97 crore by subservient charge on moveable
Property, Plant and Equipment of the Company.
(ii)
` 2,017.33 crore are secured by the following.
a.
b.
c.
d.
e.
f.
g.
h.
i.
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 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.
Secured by pledge of 1,88,28,000 Equity Shares of BSES Kerala Power 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.
j.
Exclusive charge over all rights, title, interest and benefit of the Company in Debentures issued to the
Company by DA Toll Road Private Limited.
k.
Exclusive charge on indentified buildings of the Company.
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.
112
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
17.2 As per the loan sanctioned terms, borrowing of ` 195.88 crore (Principal undiscounted) from related party is due for
repayment from September, 2031 onwards, NCD of ` 522 crore and Loan of ` 9.35 crore from others in financial year
2021-22 and balance borrowing of ` 2,712.65 crore were overdue for repayment as at March 31, 2021 along with
interest of ` 340.59 crore included in Interest accrued in note no 20. Further the Company has delayed payments of
interest and principal to the lenders as detailed below:
Name of lender
Default as at March 31, 2021
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
36.97
-
75.00
Yes Bank Limited
2,017.33
Srei Equipment Finance Limited
17.65
742
-
841
329
487
37.08
-
22.90
9.13
7.14
588
133.00
-
109.77
821
-
716
657
-
28.51
13.05
-
58 1,609.87
494
465.76
670
-
-
-
588
397
-
396
-
NCD Series 29: As at March 31, 2021, the installments of ` 63 crore were outstanding beginning from March 31, 2020. During the
year there was a delay in repayment of interest of ` 16.08 crore for 290 days. Trustee of NCD Series 29 have issued loan recall notice
on December 8, 2020. NCD Series 18: Axis Trustee Services Ltd (“Trustee”) had issued loan recall notice on September 20, 2019 due
to downgrade of Company’s ratings. As per the Debenture Trust Deed dated April 7, 2014, the final redemption date has been defined
as January 21, 2022. Redemption of debentures shall becomes due on the last date of its tenor and not otherwise and default in
redemption shall be reckoned accordingly. As at March, 31, 2021, installments of ` 400 crore were outstanding beginning from January
20, 2020 and interest of ` 69 crore was outstanding since April 30, 2020. During the year there was a delay in repayment of interest of
` 34.87 crore. Additional interest of ` 51.22 crore clamed by the NCD holders has not been paid and in disputed. NCD Series 20E:
In terms of the Security Interest (Enforcement) Rules, 2002, IDBI Trusteeship Services Limited (“Trustee”) has enforced the security
and taken the possession of the mortgaged properties in respect of the NCDs aggregating ` 102.70 crore and interest aggregating `
144.12 crore. Trustee has informed the Company that in the event dues payable to the debenture holders are not fully recovered/
satisfied with sale proceed of secured assets, the debentures holders are entitled for the recovery of the balance amount in the
manner prescribed under applicable law. The Company has not been informed as regards any shortfall in the recovery of outstanding
debt.
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, 2021
` Crore
As at
March 31, 2020
(A)
(B)
315.84
315.84
115.04
17.27
132.21
448.15
431.57
431.57
287.71
22.64*
310.35
741.92
*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.
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;
113
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
18.2 As at March 31, 2021, the Company has overdue borrowing of ` 315.84 crore. 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, 2021
Delay in repayment during the year
Principal
Interest
Principal
Interest
Amount
` Crore
315.84
-
Maximum
days of
default
Amount
` Crore
Maximum
days of
default
Amount
` Crore
Maximum
days of
delay
Amount
` Crore
Maximum
days of
delay
917
-
-
-
-
-
-
37.28
-
749
-
9.43
-
749
As at March 31, 2021
As at March 31, 2020
Current Non-Current
Current Non-Current
` Crore
Total outstanding dues to Micro and Small Enterprises
11.88
-
13.05
-
Total outstanding dues to Other than Micro and Small
Enterprises including Retention Payable
1,693.74
18.16
2,368.15
25.25
Total
1,705.62
18.16
2,381.20
25.25
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, 2021
As at
March 31, 2020
11.88
2.08
13.05
1.00
-
-
-
-
-
-
2.08
1.00
2.08
2.08
1.00
1.00
114
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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
Advances received from Customers
Amount due to customers for contract work
Other Liabilities including Statutory Liabilities
Total
22. Provisions
Particulars
Provision for Disputed Matters
Tax on Dividend
Provision for Employee Benefit:
Provision for Gratuity (Refer Note No. 43)
Total
Non-Current
-
-
As at March 31, 2021
Current
3,244.00
486.78
12.25
-
-
3,743.03
0.06
212.55
212.61
` Crore
Non-Current
-
-
As at March 31, 2020
Current
1,543.14
490.88
14.18
-
-
2,048.20
0.06
123.86
123.92
As at March 31, 2021
Current Non-Current
351.86
1,364.66
891.71
-
-
893.67
2,137.24
1,364.66
` Crore
As at March 31, 2020
Current Non-Current
410.31
1,426.71
815.56
-
-
601.71
1,827.58
1,426.71
` Crore
As at March 31, 2021
As at March 31, 2020
Current Non-Current
Current Non-Current
-
19.61
0.53
20.14
160.00
-
-
160.00
-
47.62
-
47.62
160.00
-
-
160.00
Information about Provision for Disputed Matters and significant estimates
Represents provision made for disputes in respect of corporate/regulatory matters. No further information is given as the
matters are sub-judice and may jeopardize the interest of the Company.
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
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
(A)
(B)
(A + B)
1.44
-
1.44
(6.29)
(87.59)
(93.88)
(92.44)
4.35
0.06
4.41
(37.43)
(2.63)
(40.06)
(35.65)
115
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
23(b) Reconciliation of tax expenses and the accounting profit multiplied by India’s tax rate
Particulars
(Loss)/Profit before income tax expense
Tax at the Indian tax rate of 31.20% (P.Y.:34.944%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Income not considered for Tax purpose
Utilisation of Losses brought forward
Expenses not allowable for tax purposes
Fair Valuation of Preference shares / Debentures
Effect of change in tax rate
DTA on brought forward depreciation losses
Tax on income Jointly Controlled Operations assessed separately
Adjustments for current tax of prior periods
Income tax expense charged to Statement of Profit and Loss
23(c) Tax losses and Tax credits
Particulars
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
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:
Property plant and Equipment, Intangible Assets and Investment Property
Provisions for employees benefits and doubtful debts/advances
Fair Valuation of Financial Instruments
Brought forward depreciation losses
Total Deferred Tax Assets
Net Deferred Tax (Assets)/Liabilities
Net Deferred Tax Liabilities pertains to Jointly Controlled Operations
Year ended
March 31, 2021
(111.52)
(34.79)
` Crore
Year ended
March 31, 2020
995.62
347.91
129.28
(184.06)
3.00
-
-
(7.36)
1.49
-
(92.44)
(10.43)
(299.06)
7.90
(56.50)
0.87
(26.40)
-
0.06
(35.65)
As at
March 31, 2021
` Crore
As at
March 31, 2020
149.44
834.26
16.22
149.33
1,353.19
26.40
As at
March 31, 2021
As at
March 31, 2020
` Crore
0.05
36.03
24.94
-
61.02
26.29
25.57
44.32
16.22
112.40
(51.43)
0.05
37.12
51.23
48.44
11.82
148.61
-
28.27
26.41
54.68
93.93
-
As at March 31, 2021, the Company has net deferred tax assets of ` 51.43 crore. In the absence of convincing evidences
that sufficient future taxable income will be available against which deferred tax assets can be realised, the same has not been
recognised in the books of account in line with Ind - AS 12 on Income Taxes.
116
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
23(e) Movement in deferred tax balances
Deferred Tax Liability
As At March 31, 2019
Charged/(Credited):
- to profit or loss- Continued Operations
As At March 31, 2020
Charged/(Credited):
- to statement of profit and loss- Continued Operations
As At March 31, 2021
24. Revenue from Operations
Particulars
(a) 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 (a)
(b)
Income from Sale of Power
Cross Subsidy Charges
Sub-total (b)
(c) Other Operating Income
Provisions / Liabilities written back
Insurance Claim received
Management and Consultancy Services
Other Income
Sub-total (c)
Total (a) + (b) + (c)
` Crore
Amount
133.99
(40.06)
93.93
93.88
0.05
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
1,466.98
1,150.82
739.96
677.54
62.42
8.62
677.54
576.68
100.86
11.06
1,538.02
1,262.74
4.68
(1.00)
3.68
-
4.69
133.69
9.07
147.45
8.67
(1.93)
6.74
3.00
32.42
14.17
49.59
1,689.15
1,319.07
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 ` 6,574.73 crore as at March 31, 2021, (` 17,893.13 crore as at March 31, 2020) out of which ` 3,066.33
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
2020-21
1,986.21
194.94
(486.11)
1,695.04
` Crore
2019-20
1,715.08
385.56
(114.43)
1,986.21
117
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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
2020-21
2,652.58
(56.20)
11.85
2019-20
2,566.01
(227.11)
313.68
2,608.23
2,652.58
24.4 Reconciliation of contracted prices with the revenue from operations from E&C Business:
Particulars
Opening contracted price of orders
Add:
2020-21
29,079.29
` Crore
2019-20
30,291.16
Fresh orders/change orders received (net)
28.52
-
Less:
Orders Completed/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)
(14,218.91)
14,888.90
(1,211.87)
29,079.29
1,538.02
(64.45)
1,262.74
(144.88)
1,473.57
6,840.60
6,574.73
14,888.90
1,117.86
10,068.30
17,893.13
29,079.29
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
Recovery from Investment earlier written off
Gain on Derivative Instruments (net) (including MTM on Forward Contracts)
Provisions / Liabilities written back
Profit on sale of Property, plant & equipments (net)
Income from Lease of Investment Property
Recovery from Regulatory Assets pertaining to MPB
Miscellaneous Income
118
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
130.34
1,002.63
7.06
7.58
144.98
65.98
60.38
54.55
36.86
-
423.76
3.51
30.54
-
12.46
833.02
13.11
22.26
1,038.00
173.14
29.85
-
-
141.41
77.41
-
67.99
418.09
215.16
2,161.05
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
26. Employee Benefit Expenses:
Particulars
Salaries, Wages and Bonus
Contribution to Provident Fund and other Funds (Refer Note No. 43)
Gratuity
Workmen and Staff Welfare Expenses
27. Finance Costs:
Particulars
Interest and Finance Charges on
Debentures
Working Capital and other Borrowings
Fair Value Change in Financial Instruments
Other Finance Charges
28. Other Expenses:
Particulars
Rent
Power and Electricity
Repairs and Maintenance
Buildings
Plant and Machinery
Other Assets
Insurance
Rates and Taxes
Community Development and Environment Monitoring Expenses
Loss on foreign currency translations or transactions
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)
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, 2021
62.80
4.45
4.68
6.40
78.33
` Crore
Year ended
March 31, 2020
54.26
6.94
13.87
11.17
86.24
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
182.10
557.80
739.90
277.66
175.67
1,193.23
174.21
664.22
838.43
54.73
24.99
918.15
` Crore
Year ended
March 31, 2021
Year ended
March 31, 2020
12.13
47.99
0.85
3.51
10.45
10.49
5.87
0.01
51.75
0.13
3.90
2.00
77.96
89.58
0.36
7.09
-
-
-
-
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
324.07
233.24
119
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021 29. Earnings Per Equity Share:
Particulars
(i)
Profit / (Loss) for Basic and Diluted Earnings per Share
before exceptional Items (a) (` crore)
after exceptional Items(b) (` crore)
before effect of withdrawal of scheme (c) (` crore)
after effect of withdrawal of scheme (d) (` crore)
(ii) Weighted average number of Equity Shares
For Basic Earnings per share (e)
For Diluted Earnings per share(f)
(iii)
(iv)
(v)
(vi)
Earnings per share before exceptional Items (Face Value of ` 10 per share)
Basic (a/e)
Diluted (a/f)
Earnings per share after exceptional Items (Face Value of ` 10 per share)
Basic (b/e)
Diluted (b/f)
Earnings per share before effect of withdrawal of scheme
(Face Value of `10 per share)
Basic (c/e)
Diluted (c/f)
Earnings per share after effect of withdrawal of scheme
(Face Value of `10 per share)
Basic (d/e)
Diluted (d/f)
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
Short term borrowing converted in long term borrowings
Impact of non-cash items
- Transfer of Investment Property and Property, plant & equipments
- Impact of Effective Rate of Interest
Repaid During the year
Closing Balance
Short term Borrowings
Opening Balance
Short term borrowing converted in long term borrowings
Impact of non-cash items
Write back during the year
Repaid during the year
Closing Balance
120
Year ended
March 31, 2021
Year ended
March 31, 2020
(372.64)
(19.08)
(70.83)
(19.08)
1,031.27
1,031.27
1,172.68
1,031.27
26,29,90,000
26,29,90,000
26,29,90,000
26,29,90,000
Rupees
(14.17)
(14.17)
Rupees
(0.73)
(0.73)
Rupees
39.21
39.21
Rupees
39.21
39.21
Rupees
Rupees
(2.69)
(2.69)
44.59
44.59
Rupees
Rupees
(0.73)
(0.73)
39.21
39.21
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
4,959.52
5,168.81
-
195.88
(1150.00)
57.18
(702.64)
3,359.94
741.92
(195.88)
(3.66)
(94.23)
448.15
-
-
-
33.24
(242.53)
4,959.52
910.00
-
-
(168.08)
741.92
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Particulars
Interest Expenses
Interest Accrued - Opening Balance
Interest Charge as per Statement Profit & Loss
Changes in Fair Value
-
-
Paid through Sale of Investment
Write back during the year
Interest paid to Lenders
Interest Accrued - Closing Balance
Impact of Effective Rate of Interest
Impact of Change in Fair Value of Financial Guarantee Obligation
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
490.88
1,193.23
(139.27)
(277.66)
(64.25)
(1.85)
(714.30)
486.78
350.49
918.15
(33.24)
(54.72)
(689.79)
490.88
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 ` 1,117.13 crore (March
31, 2020 - ` 1,231.30 crore). These include claim from suppliers aggregating to ` 32.37 crore (March 31, 2020 -
` 29.34 crore), income tax claims ` 567.55 crore (March 31, 2020 - ` 677.78 crore), indirect tax claims aggregating
to ` 447.88 crore (March 31, 2020 - ` 447.88 crore) and other claims ` 69.32 crore (March 31, 2020 - ` 76.30
crore).
Corporate Guarantee NIL (March 31, 2020: ` 1,487.67 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.
iv) With respect of Energy Purchase Agreeement (EPA) entered with Dhursar Solar Power Private Limited (DSPPL), The
Maharashtra Electricity Regulatory Commission (MERC) vide order dated October 21, 2016 allowed partial cost claimed
by the Company. Aggrieved by the said order, the Company had challenged the said order before Appellate Tribunal for
Electricity (APTEL). The APTEL has upheld the findings of MERC and the Company filed an appeal before the Supreme
Court of India against the APTEL Order. The matter is currently pending before the Supreme Court of India. Post
transfer of Mumbai Power Business to Reliance Electric Generation and Supply Limited (REGSL), a inter-se agreement
was entered between REGCL, DSPPL and the Company, whereby the Company has agreed that the liability of REGSL
to make tariff payments for the energy supplied by DSPPL is limited to the MERC approved tariff and the Company
has agreed to pay the differential amount between tariff payment as per EPA and MERC approved tariff to the DSPPL
thorough an agreement cum indemnity. Pending outcome of the matter, the Company continues to account differential
expenditure as cost on monthly basis. The Company has also legally been advised that it has good case on merit and
have fair chance to succeed. Based on the above facts the Company has not considered the said agreement cum
indemnity as an Onerous Contract. The Company does not expect any cash outflow on this account.
(b) Capital and Other Commitments:
i)
Estimated amount of contracts remaining unexecuted on capital account and not provided for ` Nil (March 31, 2020
- ` Nil).
ii) Uncalled liability on partly paid shares ` 10.70 crore (March 31, 2020 - ` 10.70 crore).
iii)
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.
(c) During the year the Company, as a part of settlement with Yes Bank Limited, has sold its Investment property including
Property, plant and equipment at Santacruz at a total transaction value of ` 1,200 crore through the conveyance deed
entered with Yes Bank Limited. The Company is entitled to exercise its rights/option to buy back this property after 8.5 years
from the date of sale, subject to fulfillment of the condition precedents at an agreed price as per option agreement entered
between parties.
121
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
33. Payment to Auditors (excluding taxes):
Sr.
No
(a)
(b)
Particulars
As Auditor-Audit Fees
For other services- Certification Fees
34. Related Party Disclosures:
` Crore
2020-21
2019-20
0.78
0.06
0.84
0.78
0.02
0.80
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
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) (Cease to be a subsidiary w.e.f. 08.01.2021)
PS Toll Road Private Limited (PSTRPL)
KM Toll Road Private Limited (KMTRPL)
HK Toll Road Private Limited (HKTRPL)
DA Toll Road Private Limited (DATRPL) (Cease to be a subsidiary w.e.f. 31.12.2020)
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)
Utility Infrastructure & Works Private Limited (UIWPL) (Applied for struck off on December 10, 2020)
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)
122
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
S.No Name of Company
46
47
48
49
50
51
52
53
54
55
56
57
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)
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)
(ii)
Joint Venture
1
2
3
4
5
6
Reliance Naval and Engineering Limited (RNEL) (Ceased to be an associate w.e.f April
24, 2020)
Reliance Geothermal Power Private Limited (RGPPL)
Metro One Operations Private Limited (MOOPL)
RPL Sun Techniques Private Limited
RPL Photon Private Limited
RPL Sun Power Private Limited
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
Reliance General Insurance Company Limited (RGI)
Reliance Capital Limited (RCap)
Reliance Securities Limited (RSL)
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)
Rosa Power Supply Company Limited (ROSA)
Sasan Power Limited (SPL)
Vidarbha Industries Power Limited (VIPL)
Chitrangi Power Private Limited (CPPL)
Samalkot Power Limited (SaPoL)
Rajasthan Sun Technique Energy Private Limited (RSTEPL)
Dhursur Solar Power Private Limited (DSPPL)
Reliance Communication Limited (RCom)
Globalcom IDC Limited(GIL)
Reliance Corporate Advisory Services Limited (RCASL)
Reliance Infratel Limited (RITL)
Reliance Webstore Limited (RWL)
Reliance Natural Resources Limited
Reliance Natural Resources (Singapure) Pte Ltd
123
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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)
(vii)
Other Income ( including Income from Investment
Property)
Provision Written Back
(viii) Recovery of Investment earlier w/off
(II)
(i)
(ii)
(iii)
Expenses:
Purchase of Power (Including Open Access Charges
(Net of Sales)
Purchase / Services of other items on revenue
account
Interest Paid
(iv)
Investment written off
(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
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
-
-
-
-
-
-
58.55
28.27
30.99
30.59
0.51
0.09
-
-
20.74
-
-
-
-
-
0.28
0.18
12.52
-
0.86
0.96
74.00
82.89
2,658.77
2,946.85
547.84
529.52
3,267.22
3,701.81
51.70
54.32
166.62
135.63
-
-
-
0.16
544.94
544.94
Investing
party,
Associates
and Joint
Ventures
` Crore
Enterprises
over which
person
described
in (iv) has
significant
influence
-
-
-
3.24
-
32.42
1.83
1.58
-
79.97
-
4.94
-
-
-
-
-
31.70
-
-
-
12.18
-
-
0.07
-
-
-
0.43
0.43
-
-
-
-
-
5.95
-
-
-
0.17
-
-
-
-
2.83
7.56
1.47
-
84.53
-
-
-
97.31
19.98
25.78
54.42
-
5.15
-
-
43.12
11.16
6.63
8.74
23.02
24.81
-
-
1,501.15
1,445.95
236.93*
204.82
72.45
44.78
1,124.64
752.90
-
-
2,671.27
2,750.66
204.33
99.93
-
-
15.14
28.98
-
-
124
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Particulars
Year
Subsidiaries
Investing
party,
Associates
and Joint
Ventures
` Crore
Enterprises
over which
person
described
in (iv) has
significant
influence
(c)
(i)
(d)
(i)
(ii)
Guarantees and Collaterals (Closing balances):
Guarantees and Collaterals
Transactions During the Year:
Guarantees and Collaterals provided earlier - expired
/ encashed / surrendered
Guarantees and Collaterals provided
(iii)
ICD Given/assigned to
(iv)
ICD Returned by
(v)
Subordinate Debts given
(vi)
Purchase of Investments of Subsidiary company
(vii)
ICD Taken from
(viii)
ICD Repaid to
(ix)
Subordinate Debts returned/adjusted
(x)
ICD Converted to Subordinate debts
2020-21
2019-20
1,329.64
1,893.67
-
-
5,728.67
5,728.67
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
-
-
-
-
328.26
55.16
309.95
1.17
6.11
32.02
0.27
-
-
9.02
5.24
3.78
-
0.13
-
9.44
-
905.90
-
-
-
92.96
-
447.96
-
-
-
-
-
12.81
-
190.00
-
-
-
-
-
-
-
4,048.87
371.73
-
-
-
-
-
-
-
-
213.62
-
224.16
-
-
-
-
* does not include fair value gain of ` 79.94 crore accounted during the year in terms of Ind AS 109
d)
Details of Material Transactions with Related Party
(i)
Transactions during the year (Balance Sheet heads)
2020-21
ICD given/assigned RePL ` 371.73 crore.
2019-20
ICD refunded by RePL ` 447.96 crore.
(ii) Balance sheet heads (Closing balance)
2020-21
Trade payable, advances received and other liabilities CPPL ` 911.03 crore and SPL ` 283.87 crore. Investment
in Equity of MMOPL ` 761.48 crore, BRPL ` 530.40 crore and BYPL ` 283.56 crore. ICD given to RePL
` 1,121.21 crore and MMOPL ` 283.79 crore. Subordinate debt given to PSTL ` 1,078.51 crore, and DAMEPL
` 787.53 crore, HKTL ` 302.26 crore. Trade Receivables, Advances given and other receivables for rendering
services SaPoL ` 2,585.89 crore. Non Current Assets Held for sale and Discontinued Operations of KMTL
` 544.94 crore.
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.
125
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(iii) Guarantees and Collaterals
2020-21
Corporate Guarantee to RCap ` 1,673 crore, to RHFL ` 1,960.49 crore and to RCFL ` 1,803.38 crore, PSTL
` 786.71 crore and JRTR ` 307 crore outstanding as at March 31, 2021.
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.
e)
Detail of transactions with Key Management Personnel (KMP) and their relative:
Name
Category
Years
Remuneration Sale of Assets
` Crore
Shri Punit Garg
Executive Director and Chief Executive Officer
Shri Paresh Rathod
Company Secretary
Shri Pinkesh Shah
Chief Financial Officer(w.e.f May 8, 2020)
Ms Shruti Garg
Daughter of Shri Punit Garg
Shri Lalit Jalan
Chief Executive Officer
(up to April 6, 2019)
Shri Sridhar
Narasimhan
Shri Anil C Shah
Chief Financial Officer(up to May 8, 2020)
Company Secretary
(up to August 15, 2019)
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2.52*
2.36*
0.47*
0.39*
0.94*
-
-
-
-
3.50
0.36*
1.64*
-
1.06
-
-
-
-
-
-
-
3.30
-
-
-
-
-
-
*Remuneration does not include post-employment benefits, as they are determined on an actuarial basis for the
Company as a whole.
f) Details of Transactions with Person having Control: During the year, the Company received advance of ` 10.75 crore
against the expenses incurred on his behalf. Closing Balance Nil. Sitting fees paid ` 0.03 crore during the year 2020-21
(2019-20: ` 0.02 crore)
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 of the Company as per
standalone financial statements are considered as Material Related Party Transactions.
35. Segment Reporting
(a) Description of segments and principal activities
The Company is predominantly engaged in the business of Engineering and Construction (E&C). E&C segment renders
comprehensive, value added services in construction, erection and commissioning. All other activities of the Company
revolve around E&C business. As such there are no separate reportable segments, as per the Ind-AS 108 on Operating
Segment.
(b)
Information about Major Customer
Revenue from operations include ` 1,188.86 crore (Previous Year: ` 883.41 crore) from two customer (Previous Year:
Three customer) having more than 10% of the total revenue.
(c) 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.
126
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
36. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company
towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social
Security, 2020 on November 13, 2020. The Company will assess the impact once the subject rules are notified and will give
appropriate impact in its financial statements in the period in which, the Code becomes effective.
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 by DAMEPL of the Concession Agreement for Delhi Airport Metro Express
Line Project (Project) was referred to arbitral tribunal, which vide its award dated May 11, 2017, granted arbitration award
for a sum 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 Court. 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.Based on the facts of the case and the
applicable law and as legally advised DAMEPL has a fair chance 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
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 loss of ` 51.75 crore for the year ended
March 31, 2021 (gain of ` 141.41 crore for the year ended March 31, 2020) has been credited/debited to the Statement
of Profit and Loss and an equivalent amount has been transferred to/from 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 loss before tax for year ended March 31, 2021 would have been higher by
` 51.75 crore and General Reserve would have been higher by ` 51.75 crore. The treatment prescribed under the Scheme
override the relevant provisions of Ind AS 1: “Presentation of Financial Statements”.
39. Exceptional Items
Exceptional Items for the year represents a) gain of ` 156.83 crore on sale of entire stake in Parbati Koldam Transmission
Company Limited (PKTCL), a subsidiary of the Company pursuant to Share Purchase Agreement entered with India Grid Trust
on January 8, 2021; b) gain of ` 585.40 crore on sale of entire investment in DA Toll Road Private Limited a subsidiary of the
Company pursuant to Share Purchase Agreement entered with Cube Highways and Infrastructure III Pte Limited on December
31, 2020; c) gain of ` 551.26 crore on sale of investment property and Property plant and equipments at Santacruz as a
part of settlement with Yes Bank Limited at a total transaction value of ` 1,200 crore ; d) written off ` 1009.51 crore trade
receivables against the projects which are either completed or on hold and no further work is to be done; e) gain of ` 82.10
crore arising from fair valuation of Inter Corporate Loan pursuant to modification of terms of the loan agreement, in the line
with Ind AS 109; f) ` 3.19 crore write-off of Investment (net) in Utility Infrastructure & Works Private Limited, a subsidiary
of the Company; g) ` 9.32 crore write-off of Investment in Reliance Cement Corporation Private Limited, a subsidiary of the
Company.
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, 2021 is ` 6,491.38 crore (March 31, 2020: ` 8,066.08 crore) net of provision
of ` 3,972.17 crore (March 31, 2020 ` 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.
127
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
Based on the available facts, the provision made will be adequate to deal with any contingency relating to recovery from the
EPC Company.
The Company has further 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.
42. With respect to Company’s ten subsidiaries engaged in road projects (road SPVs), the Company has net recoverable amounts
aggregating to ` 3,473.18 crore as at March 31, 2021. Management has recently performed an impairment assessment
of these recoverable by considering interalia arbitrational claims filed by SPVs aggregating ` 6,373 Cr and projected future
cash flows from the respective projects. As legally advised on arbitration matters, Company is confident of recovering its
entire investment in road SPVs. The determination of the recoverable value of investments involves significant management
judgement and estimates on the various assumptions including time that may be required to get the award and its subsequent
settlements by the customers, etc. Accordingly, based on the assessment and as advised by the experts, impairment of said
recoverable is not considered necessary by the Management.
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)
2020-21
2.88
0.37
0.43
0.74
0.03
` Crore
2019-20
4.44
0.63
0.57
1.16
0.03
The benefit involving employee established provident funds, which require interest shortfall to be recompensated are to
be considered as defined benefit plans. Any shortfall arising in meeting the stipulated interest liability, if any, gets duly
provided for in the accounts of Provident Fund Trust maintained by the Company.
Gratuity
The Company operates a gratuity plan administered by insurance company. 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.
128
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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
Gratuity for
the year ended
March 31,
2021-Funded
` Crore
Gratuity for
the year ended
March 31,
2020-Funded
April 01, 2020
April 01, 2019
March 31, 2021 March 31, 2020
6.26%
6.26%
5.00%
10.00%
6.59%
6.59%
5.00%
10.00%
Indian Assured
Lives Mortality
(2006-08)
Indian Assured
Lives Mortality
(2006-08)
N.A.
N.A.
As at
March 31, 2021
As at
March 31, 2020
24.57
(0.02)
0.08
1.62
2.06
(1.43)
(2.66)
0.28
-
(0.43)
24.07
24.67
2.41
(0.02)
1.63
-
(2.66)
0.06
26.09
(24.07)
26.09
2.02
-
-
-
32.35
(1.64)
0.27
2.42
2.41
(7.58)
(3.97)
0.93
-
(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
-
-
-
129
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021 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 assets 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
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
Gratuity for
the year ended
March 31,
2021-Funded
` Crore
Gratuity for
the year ended
March 31,
2020-Funded
2.07
(0.01)
2.06
(0.15)
(0.06)
(0.21)
100%
-
6.37
11.92
13.51
24.07
1%
(3.44%)
3.77%
1%
3.77%
(3.51%)
1%
(0.18%)
0.20%
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%
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.
130
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Gratuity Plan for Jointly Controlled Operations- Unfunded
The Gratuity plan in the two Jointly Controlled Operation of the Company viz RInfra Astaldi Joint Venture (Metro) and Reliance
Astaldi JV (VBSL) is unfunded. During the year gratuity expenses of ` 0.63 crore has been provided in statement of profit and
loss and liability as at March 31, 2021 is ` 0.53 crore.
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)
Closing Bal Amt O/s
as at
Max Amt O/s during
the year
March 31,
2021
March 31,
2020
March 31,
2021
March 31,
2020
` Crore
Name
Sr.
No.
Subsidiaries:
Mumbai Metro One Private Limited*
DA Toll Road Private Limited
Delhi Airport Metro Express Private Limited
PS Toll Road Private Limited
Reliance Airport Developers Limited
TK Toll Road Private Limited
JR Toll Road Private Limited
GF Toll Road Private Limited
Reliance Land System Limited
Reliance Aero System Private Limited
Reliance Defence Technologies Private Limited
BSES Kerala Power 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 Arament Limited
Reliance Velocity Limited
Reliance Defence Infrastructure Limited
CBD Tower Private Limited
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
* Except for this, all loans and advances stated are interest free
283.79
-
67.51
31.90
0.04
7.33
13.75
1.50
0.01
0.02
0.02
1.74
0.06
0.32
0.36
7.47
0.16
0.41
104.25
26.75
0.21
0.08
0.16
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
76.83
67.51
31.90
0.04
7.33
13.75
1.50
0.01
0.02
0.02
1.74
0.06
0.32
0.36
7.47
0.16
0.41
104.25
97.72
15.60
0.08
0.16
There are no investments by loanees as at March 31, 2021 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.
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
131
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
45. The Company has net recoverable amounts aggregating to ` 2,380.78 crore from RPower Group as at March 31, 2021.
Management has recently 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, 2021
55 % **
Terminated ***
74%
50%
90%
Participating Interest (%)
March 31, 2020
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).
132
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
The Company’s shares in respect of assets and liabilities and expenditure for dthe year have been accounted as under.
Particulars
Income
Expenses
Non Current Assets
Current Assets
Non Current
Liabilities
Current Liabilities
47. Lease
Rinfra
Astaldi
Joint
Venture
(Metro)
Reliance
Astaldi
JV
(VBSL)
92.85 108.23
97.99 108.05
23.99
97.46 135.39
68.51 108.51
4.75
2020-21
Kashedighat
JV
Mizo
Block
102.66
97.73
1.11
23.90
0.02
-
-
-
0.24
-
CBM
Block
Rinfra
Astaldi
Joint
Venture
(Metro)
- 123.20
- 114.94
7.24
-
3.53 115.08
71.84
-
` Crore
2019-20
Kashedighat
JV
Mizo
Block
CBM
Block
42.68
36.00
1.98
36.71
12.27
-
-
-
0.24
-
-
-
-
3.53
-
Reliance
Astaldi JV
(VBSL)
15.04
15.04
6.38
14.99
2.08
36.90
50.74
15.46
-
0.01
45.63
19.28
21.95
-
0.01
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 ` 12.13 crore as lease rental for the financial year
2020-21 (` 3.23 crore for the financial year 2019-20).
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 interest accrued thereon)
Trade payables
Deposits from others
Interest Payable Others
Financial guarantee obligation
Unpaid dividends
Total Financial Liabilities
As at March 31, 2021
As at March 31, 2020
FVTPL
FVOCI
Amortised
cost
FVTPL
FVOCI
Amortised
cost
76.18
-
696.11
1,653.08
-
-
-
-
-
-
-
-
-
-
-
-
-
- 2,934.71
- 5,723.37
25.96
-
-
1.21
431.63
-
0.17
-
- 1,677.15
56.44
-
73.44
-
48.51
-
-
178.00
696.11
-
- 1,313.21
-
-
-
-
-
-
-
-
-
-
-
30.30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
164.47
-
-
4,157.37
5,748.70
25.77
4.38
478.49
0.57
1,540.04
72.68
179.36
10.75
2,425.37
- 11,132.38 2,057.83
- 12,382.58
-
-
-
-
212.55
-
212.55
- 4,235.72
- 1,723.78
-
0.06
59.15
-
-
-
-
12.25
- 6,030.96
-
-
-
123.86
-
123.86
-
-
-
-
-
-
6,192.32
2,406.45
0.06
-
14.18
8,613.01
133
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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, 2021
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, 2021
Financial Liabilities
Borrowings (including nterest)
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, 2020
Non-financial assets
Investment property
Financial Liabilities
Borrowings (including interest)
There were no transfers between any levels during the year
Level 1
Level 2
Level 3
` Crore
Total
-
72.45
-
-
-
Level 1
-
-
-
-
-
Level 2
3.73
-
696.11
1,653.08
212.55
Level 3
3.73
72.45
696.11
1,653.08
212.55
Total
-
-
4,235.72
4,235.72
Level 1
Level 2
Level 3
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 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds and equity
shares 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.
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, debentures and financial guarantee 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.
134
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(d)
Fair value measurements using significant unobservable inputs (level 3)
Particulars
As at March 31, 2019
Other fair value gains / (losses) recognised during the year
As at March 31, 2020
Other fair value gains / (losses) recognised during the year
Financial assets purchased during the year
As at March 31, 2021
(e)
Fair value of financial assets and liabilities measured at amortised cost
Financial Assets
` Crore
Financial Liabilities
` Crore
1,851.37
161.68
2,013.05
(153.21)
493.08
2,352.92
22.90
(100.96)
123.86
(88.69)
-
212.55
Particulars
Financial Liabilities
Borrowings (including interest accrued thereon)
As at March 31, 2021
Fair value
Carrying
amount
` Crore
As at March 31, 2020
Fair
value
Carrying
amount
4,235.72
4,235.72
6,192.32
6,052.05
The carrying amounts of trade receivables, trade payables, advances to employees including interest thereon (secured/
unsecured), inter corporate 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, 2021
March 31, 2020
Preference Shares
696.11
696.11
Earnings/EBIDTA
Multiple Method
Discounted Cash Flow
Debentures
1,653.08
1,313.21
Discounted Cash Flow
Financial Guarantee
Obligation
212.55
123.86
Credit Default Swap
(CDS)
` Crore
Significant unobservable
inputs and range
Earning growth Factor
7% to 9%
Discount rate: 11% to
13%
Discount rate: 11% to
13%
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 and loans.
135
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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, 2021:
Expected credit loss for financial assets where general model is applied
Particulars
Asset group
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
Interest
and Other
receivables
Inter corporate
deposits
Internal
credit
rating
Rating 2
Estimated
gross
carrying
amount at
default
25.96
Expected
probability
of default
Expected
credit
losses
` Crore
Carrying
amount net
of provision
0%
NIL
25.96
Rating 1
2,253.17
6%
143.03
2,110.14
Rating
2 / 3
9,552.50
40% 3,829.14
5,723.36
Year ended March 31, 2020
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
25.77
0%
NIL
25.77
Rating 1
2,161.56
7%
143.03
2,018.53
Inter Corporate
Deposits
Rating
2 / 3
9,577.84
40% 3,829.14
5,748.70
136
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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, 2019
Changes in loss allowance
Loss allowance as at March 31, 2020
Changes in loss allowance
Loss allowance as at March 31, 2021
` Crore
Lifetime expected credit
losses measured using
simplified approach
67.01
3.05
63.96
-
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, 2019
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2020
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2021
3,972.17
-
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.
(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, 2021
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
` Crore
Total
4,551.61
1,723.78
212.55
12.31
4,120.53
1,705.62
-
12.25
431.08
18.16
212.55
0.06
5,567.01
4,401.82
9,968.83
137
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
Contractual maturities of financial liabilities
March 31, 2020
Less than 1 year
More than 1
year
Total
Non-derivatives
Borrowings*
Trade payables (Including Retention payable)
Financial guarantee obligation
Other finance liabilities
Total non-derivative liabilities
3,171.57
2,381.20
-
14.18
4,252.71
25.25
123.86
0.06
7,424.28
2,406.45
123.86
14.24
5,566.96
4,401.88
9,968.83
*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
Financial Assets
Investment in preference shares
Trade Receivable
Advance to Vendor
Bank balance in EEFC accounts $ USD 4,457
@ Euro 10.10
Exposure to foreign currency risk (Assets)
Financial Liabilities
Advance from Customer
Trade payables
Exposure to foreign currency risk (Liabilities)
As at March 31, 2021
As at March 31, 2020
USD in Crore
EUR in Crore USD in Crore
EUR in Crore
9.81
29.25
1.53
-
40.58
0.82
2.50
3.32
-
1.33
0.03
-
1.36
2.48
2.48
9.81
26.87
-
$
30.68
5.97
5.97
-
1.33
-
@
1.33
2.45
2.45
The outstanding SEK denominated balance being insignificant has not been considered.
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, 2021
March 31, 2020
158.02
(158.02)
133.85
(133.85)
The outstanding Euro and SEK 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, 2021 and March 31, 2020, 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.
138
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
(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, 2021
As at
March 31, 2020
2,472.13
1,335.96
3,808.09
4,330.73
1,507.82
5,838.55
As at the end of the reporting period, the Company had the following variable rate borrowings outstanding:
March 31, 2021
March 31, 2020
Particulars
Weighted
average
interest rate
Balance
` Crore
% of total
loans
Weighted
average
interest rate
Balance
` Crore
% of total
loans
Borrowings
11.87%
2,472.13
64.92%
11.36%
4,330.73
74.17%
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 loss/profit before tax
(` Crore)
March 31, 2021
March 31, 2020
(24.72)
4.94
(43.31)
8.66
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.
(b)
Sensitivity
Particulars
Price increase by 10%
Price decrease by 10%
49. Capital Management
Impact on other components of equity
(` Crore)
March 31, 2021
March 31, 2020
7.62
(7.62)
4.85
(4.85)
(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.
139
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
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.
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. The Company is not required expend any amount towards Corporate Social Responsibility as per section 135
of the Act, since there is no average profit in the preceding three financial years calculate as per the provision of the Act.
51. 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. During the year
the company has paid ` 2,275.19 crore to the lenders through monetisation/receipt of claims thereby reducing total debt
outstanding by more than 35%. The Company is confident of meeting of obligations by way of 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.
52. COVID 19 has impacted businesses across the globe and India causing significant disturbance and slowdown of economic
activities. The Company’s operations during the year were impacted due to COVID 19 and it has considered all possible impact
of COVID 19 in preparation of the financial statement, including assessment of the recoverability of financial and non financial
assets based on the various internal and external information and assumptions relating to economic forecasts up to the date
of approval of these financial results. The aforesaid assessment 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.
53. The figures for the previous year ended March 31, 2020 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 @.
54. 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 Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
140
Reliance Infrastructure LimitedNotes to the standalone financial statements as at and for the year ended March 31, 2021
ANNEXURE I
I
Sr.
No.
Particulars
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, 2021
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]
Audited Figures
(` in Crore)
(as reported
before adjusting
for qualifications)
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
5
6
7
8
Audit Qualification (each audit qualification separately):
a.
II
Audited Figures
(` in Crore)
(audited figures
after adjusting
for qualifications)
quoted in II (a)(2)
2,522.17
2,541.25
(19.08)
(0.73)
20,744.05
10,368.47
9,724.67
10,375.58
2,522.17
2,541.25
(19.08)
(0.73)
20,744.05
10,368.47
4,699.79
10,375.58
Details of Audit Qualification:
1. We refer to Note 10 to the standalone financial results regarding the Company’s exposure in an EPC Company
as on March 31, 2021 aggregating to ` 6491.38 crore (net of provision of ` 3,972.17 crore and amount
written off during the year of ` 1,009.51 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 12 of the Standalone financial results wherein the loss on invocation of shares and/or fair
valuation of shares of investments held in Reliance Power Limited (RPower) aggregating to ` 1,983.49 crore
and ` 5,024.88 crore for the quarter and year ended March 31, 2020 was adjusted against the capital reserve
as against charging the same in the Statement of Profit and Loss. The said treatment of loss on invocation and
fair valuation of investments was not in accordance with the Ind AS 28 “Investment in Associates and Joint
Venture”, Ind AS 1 “Presentation of Financial Statements” and Ind AS 109 “Financial Instruments”. Had the
Company followed the above Ind AS’s the profit before tax for the quarter and year ended March 31, 2020
would have been lower by ` 1,983.49 crore and ` 5,024.88 crore respectively and Net Worth of the Company
as at March 31, 2020 and March 31, 2021 would have beenlower by ` 5,024.88 crore.
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) - coming Since year ended
March 31, 2020
141
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 notes to the Standalone Financial Results, as below:
During the year ended March 31, 2020 ` 3,050.98 crore being the loss on invocation of pledge of shares of RPower
held by the Company 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 Parent 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 ended March 31, 2020, 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 Company. Although this being strategic investment and 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 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 notes 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, 2021
is ` 6,491.38 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. Based on the available facts, the provision made will be adequate to deal with any contingency
relating to recovery from the EPC Company.
The Company has further 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
Pinkesh Shah
Manjari Kacker #
(Executive Director and Chief Executive Officer)
(Chief Financial Officer)
(Audit Committee Chairperson)
Statutory Auditors
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No:101720W /W100355
Parag D Mehta #
Partner
Membership No. 113904
UDIN: 21113904AAAABK6721
Place: Mumbai
Date: May 28, 2021
# Present in the meeting through audio visual means
142
Reliance Infrastructure Limited
Consolidated Financial
Statement
143
Reliance Infrastructure Limited Independent Auditors’ Report on the Consolidated Financial Statements
To the Member of Reliance Infrastructure Limited
Report on the Audit of 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,
2021,the consolidated statement of profit and loss (including
other comprehensive
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”).
income),consolidated
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, 2021 aggregating to
` 6,491.38 crore (net of provision of ` 3,972.17 crore
and amount written off during the year of ` 1,009.51
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
further provided Corporate Guarantees of
has
` 4,895.87crore 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 Statement of Changes in Equity of the
consolidated financial statement wherein the loss on
invocation of shares and/or fair valuation of shares of
investments held in Reliance Power Limited (RPower)
aggregating to ` 5,312.02 crore for the year ended
144
March 31, 2020 was adjusted against the capital reserve/
capital reserve on consolidation as against charging the
same in the Statement of Profit and Loss. The said
treatment of loss on invocation and fair valuation of
investments was not in accordance with the Ind AS 28
“Investment in Associates and Joint Venture”, Ind AS 1
“Presentation of Financial Statements” and Ind AS 109
“Financial Instruments”. Had the Company followed the
above Ind AS’s the retained earnings as at March 31,
2020 and March 31, 2021 would have been lower by
` 5,312.02 crore, capital reserve and capital reserve on
consolidation of the Company as at March 31, 2020 and
March 31, 2021 would have been higher by ` 5,024.88
crore and ` 287.14 crore respectively.
Material Uncertainty Related to Going Concern
We draw attention to Note 8,27and 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) due to the inability
of GFTR to repay the overdue amount of installments, the
lenders have classified GFTR as a Non-Performing Asset
(NPA). 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, 2021 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, 2021 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
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.
5.
KM Toll Road Private Limited (KMTR), has terminated the
Concession Agreement with National Highways Authority
Reliance Infrastructure Limited
Independent Auditors’ Report on the Consolidated Financial Statements
6.
of India (NHAI) for KandlaMundra 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 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. The
auditors of DAMEPL have refered this matter in the
‘Emphasis of Matter’ Paragraph in their report.
7.
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.
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 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 loss of ` 51.75
crore for the year ended March 31, 2021 has been debited
to Statement of Profit and Loss and an equivalent amount
has been twithdrawalfrom General Reserve in terms of the
Scheme. Had such withdrawal not been made, loss before
tax for the year ended March 31, 2021 would have been
higherby ` 51.75 crore and General Reserve would have
been higher by an equivalent amount.
2. We draw attention to Note 36 to the consolidated
financial statements which describes the impairment
assessment performed by the Parent Company in
respect of its net receivable aggregating to ` 2,380.78
crore in Reliance Power Limited and its subsidiaries
(“RPower Group”) as at March 31, 2021 in accordance
with Ind AS 36 “Impairment of assets” / Ind AS 109
“Financial
involves
Instruments”. This assessment
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 investment
and the recoverable amounts.
3. We draw attention to Note 8 to the consolidated financial
statements with respect to KMTR has terminated the
concession agreement with NHAI on May 7, 2019 and
accordingly, the business operations of the company post
terminationdate has ceased to continue. 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) has issued Tariff Order
fortruing up revenue gap upto March 31, 2019 vide
various tariff orders September 29, 2015 to August 28,
2020 with certain disallowances, for two subsidiaries
of the Parent Company, namely, BSES Rajdhani Power
Limited (BRPL) and BSES Yamuna Power Limited (BYPL)
(Delhi Discoms). Delhi Discoms havefiled an appeals
against these orders before Hon’ble Appellate Tribunal for
Electricity (APTEL) against such disallowance.Based on
legal opinion taken by Delhi Discoms, the disallowances
which are subject matter of appeal, has not been
accepted by the Delhi Discoms and Delhi Discoms has,
in accordance with Ind AS 114 (and it’s predecessor AS)
treated such amount as it ought to be treated in terms of
the accepted regulatory framework in the carrying value
of Regulatory Deferral Account balance as at March, 31,
2021. 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 outstanding balances
payable to various electricity generating companies
and timely recovery of accumulated regulatory deferral
account balance by Delhi Discoms 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 Delhi
Discoms conducted by the Comptroller and Auditor
General of India (CAG). The said matter is pending before
the Honorable Supreme Court. The opinion of BRPL and
BYPL’s auditors is not modified in respect of this matter.
7. We draw attention to Note 32 to the consolidated
financial statements, as regards to the management
evaluation of COVID – 19 impact on the future
performance of the Group.Our opinion is not modified in
respect of the above matters.
Our opinion on the consolidated financial statements is not
modified in respect of the above matters.
145
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 (“ the Act”) that give a true and fair
view of the consolidated state of affairs, consolidated lossesand
other comprehensive loss, consolidated statement of changes in
equity and consolidated cash flows of the Group andits associates
and joint venturein 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.
b.
crore and net cash inflows amounting to ` 316.79 crore
for the year ended March 31,2021. The consolidated
financial statements also include the Group’s share of net
profit and other comprehensive income of ` 9.89 crore
and ` 8.77 crore for the year ended March 31, 2021 in
respect of 6 associates and 1 Joint venturewhose 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 ` 220.67 crore as at
March 31, 2021, total revenues of ` 45.76 crore and net
cash outflows amounting to ` (27.51) for the year ended
March 31, 2021. 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 joint ventureis 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.
c. We draw attention to Note 28 to the statement regarding
Reliance Naval and Engineering Limited (RNEL) associate
of the Parent Company upto April 24, 2020. There is no
impact on the Group financial results for the year ended
March 31, 2021 for the reason stated therein.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
d.
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 48 subsidiaries
included in the consolidated financial statements, whose
financial statements reflect total assets of ` 41,071.52
crore as at March 31, 2021, total revenue of ` 17,090.38
146
The comparative audited consolidated financial statement
of the Group for the year ended March 31, 2020 included
in this Statement had been audited by Pathak H.D. &
Associates LLP, Chartered Accountants, whose reports
dated May 8, 2020 expressed a Disclaimer of Opinion
on those audited consolidated financial statements for the
year ended March 31, 2020.
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.
Reliance Infrastructure Limited Independent Auditors’ Report on the Consolidated Financial Statements
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 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.
loss
The consolidated balance sheet, the consolidated
statement of profit and
(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 Opinionsection,
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
Opinionsection and going concern matter described in
the Material Uncertainty related to Going Concern may
have an adverse effect on the functioning of the Group.
The Parent Company has defaulted in repayment of the
obligations to its lenders and debenture holders which is
outstanding as at March 31, 2021. Based on the legal
opinion obtained by the Parent Company and based on
the written representations received from the directors of
the Parent Company as on March 31, 2021 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, 2021
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 Opinionsection.
h) With respect to the matter to be included in the Auditor’s
report under section 197(16) 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”.
(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 Opinionsection,
the consolidated financial statements disclose the
impact of pending litigations as at March 31, 2021
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, 2021.
Other than for dividend amounting to ` 0.18 crore
pertaining to the financial year 2010-11, financial
year 2011-12 and financial year 2012-13, 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, 2021.
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No. 101720W/W100355
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.
Parag D. Mehta
Partner
Membership No. 113904
UDIN:21113904AAAABJ5948
Place: Mumbai
Date: May 28, 2021
147
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, 2021
Report on the internal financial controls with reference to
Matters paragraph below, we were not able to obtain sufficient
the aforesaid consolidated financial statements under Clause
appropriate audit evidence to provide a basis for an audit
(i) of Sub-section 3 of Section 143 of the Companies Act,
opinion on internal financial controls over financial reporting
2013
with reference to the consolidated financial statements of the
We were engaged to audit the internal financial controls
Parent Company.
over financial reporting of Reliance Infrastructure Limited
Meaning of Internal Financial controls over financial reporting
(hereinafter referred to as “the Parent Company”) and its
with Reference to Consolidated Financial Statements
subsidiary companies, its associate companies and joint
venture company, which are companies incorporated in India,
as of March 31, 2021, in conjunction with our audit of the
consolidated financial statements of the Parent Company for
the year ended on that date.
A company’s internal financial controls over financial reporting
with reference to consolidated financial statements are 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
Management’s Responsibility for Internal Financial Controls
generally accepted accounting principles. A company’s internal
The respective management 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 control
over financial reporting 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,
financial controls over financial reporting 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.
the prevention and detection of frauds and errors, the accuracy
Disclaimer of Opinion
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 over financial reporting
with reference to consolidated 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 prescribed
under section 143(10) of the Act, to the extent applicable
to an audit of internal financial controls, both issued by the
Institute of Chartered Accountants of India.
1) As at March 31, 2021, the Parent Company has exposure in
an EPC Company as on March 31, 2021 aggregating ` 6,491.38
crore (net of provision of ` 3,972.17 crore and amount written
off during the year of ` 1,009.51 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.
We were unable to evaluate about the
relationship,
recoverability and possible obligation towards the Corporate
Guarantees given. Accordingly, we are unable to determine the
Because of the matters described in the Disclaimer of Opinion
consequential implications arising therefrom in the consolidated
paragraph below and after considering the audit evidence of the
financial statements of the Group and its associates and joint
other auditors in terms of their reports referred to in the Other
ventures.
148
Reliance Infrastructure Limited Annexure A to the Independent Auditor’s Report
Because of the above reasons, we are unable to obtain sufficient
controls over financial reporting with reference to consolidated
appropriate audit evidence to provide a basis for our opinion
financial statements insofar as it relates to 50 subsidiary
whether the Parent Company had adequate internal financial
companies, 6 associate companies and 1 Joint Venture, which are
controls with reference to consolidated financial statements
companies incorporated in India, is based on the corresponding
and whether such internal financial controls were operating
reports of the auditors of such companies incorporated in India.
effectively as at March 31, 2021.
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 Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No. 101720W/W100355
Parag D. Mehta
Partner
Membership No. 113904
UDIN:21113904AAAABJ5948
Place: Mumbai
Date: May 28, 2021
149
Reliance Infrastructure Limited Consolidated Balance Sheet as at March 31, 2021
Particulars
ASSETS
Non-current Assets
Property, Plant and Equipment
Capital work-in-progress
Investment Property
Goodwill on Consolidation
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 – 41).
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
150
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Notes
As at
March 31, 2021
` Crore
As at
March 31, 2020
3
3
4
5
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)
8
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
8
8,765.69
874.96
-
76.75
9,461.71
1,200.36
1,149.82
1,768.10
86.37
15.17
271.66
169.27
82.03
160.88
24,082.77
72.66
0.99
3,632.56
632.18
293.69
5,240.53
4,574.17
26.25
1,515.80
15,988.83
1,697.15
20,394.66
62,163.41
263.03
8,939.86
9,202.89
2,182.18
11,385.07
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
709.61
750.57
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
6,472.90
11,758.86
-
18.16
2,479.28
541.80
426.51
3,091.94
13,030.59
-
25.26
2,409.73
540.83
569.40
3,162.70
18,466.78
2,306.49
2,541.37
60.26
19,812.65
9,647.21
3,757.46
393.62
445.43
36,423.12
1,324.63
62,163.41
56.83
20,039.35
6,894.88
3,136.91
573.08
483.06
33,725.48
1,288.72
65,102.80
Chairman
Vice Chairman
Directors
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
Reliance Infrastructure Limited
Consolidated Statement of Profit and Loss for the year ended March 31, 2021
Particulars
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
Less: Transfer from General Reserve
Total Expenses
Loss before Exceptional Items, Rate Regulated Activities and Tax
Exceptional Items:
Income / (Expenses)
Less : Transfer from General Reserve
Loss from before Rate Regulated Activities and Tax
Add : Regulatory Income / (Expenses) (Net of Deferred Tax)
Profit / (Loss) from before Tax
Tax Expenses:
Current Tax
Deferred Tax Charges / (Credit) (net)
Income Tax for earlier years (net)
Profit /(Loss) for the year before Share of net profit of Associates and Joint Venture
Share of Net 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
Items that will be reclassified to Profit and Loss
Foreign currency translation Gain
Other Comprehensive Income, net of taxes (including share of associates ` 1.12 crore (` 12.77 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
Notes
Year ended
March 31, 2021
Year ended
March 31, 2020
` Crore
14
15
26
16
17
35(e)
3,4,5
18
26
30
13(a)
34
9
13(a)
16,704.58
960.22
-
960.22
17,664.80
10,307.32
13.76
1,444.09
1,091.37
2,726.74
2,142.78
1,352.10
1,517.39
51.75
20,543.80
(2,879.00)
126.34
-
126.34
(2,752.66)
2,441.23
(311.43)
20.53
(104.25)
(83.38)
(167.10)
(144.33)
9.89
(134.44)
397.86
(532.30)
(21.09)
23.48
0.34
-
2.73
(131.71)
(532.30)
397.86
(134.44)
1.19
1.54
2.73
(531.11)
399.40
(131.71)
`
(20.24)
(22.21)
18,874.21
2,244.09
141.41
2,102.68
20,976.89
11,985.80
34.48
1,140.98
1,047.01
2,400.46
1,967.10
1,389.10
1,474.78
-
21,431.71
(462.82)
(126.00)
-
(126.00)
(588.82)
1,403.52
814.70
108.62
(159.14)
(0.36)
(50.88)
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
`
29.32
34.70
(113.07)
(24.04)
Earnings Per Equity Share (face value of ` 10 each)
Earnings Per Equity Share :
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 – 41).
19
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
151
Reliance Infrastructure Limited
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Reliance Infrastructure Limited
Consolidated Statement of Cash Flows for the year ended March 31, 2021
Particulars
CASH FLOW FROM OPERATING ACTIVITIES:
Profit / (Loss) before tax
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 Retirement of Inventory and Property, Plant and Equipments
Recovery from Investment earlier w/off
Excess Provisions Written Back
Loss on Sale / Discarding of Assets
Amortisation of Consumer Contribution
Bad Debts
Net foreign exchange (gain)/loss
Exceptional Items (net)
Provision for major maintenance and overhaul expenses
Year ended March
31, 2021
Year ended
March 31, 2020
` Crore
(311.43)
814.70
1,352.10
(10.84)
(146.77)
(52.44)
(0.02)
(64.31)
2,726.74
2,142.78
(1.11)
38.34
1.60
(36.86)
(442.00)
24.09
(63.46)
89.58
(5.29)
(126.34)
-
1,389.10
(41.76)
(1,042.95)
(173.14)
(0.12)
36.69
2,396.44
1,967.10
4.02
12.03
5.54
-
(123.63)
25.19
(57.52)
8.82
10.92
126.00
17.38
Cash Generated from Operations before working capital changes
5,114.36
5,374.81
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
CASH FLOW FROM INVESTING ACTIVITIES:
(2041.74)
(10.32)
(1,554.08)
1,508.22
(72.00)
1,436.22
(888.73)
(4.46)
(1,754.98)
2,726.64
148.40
2,874.82
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)
(309.97)
(671.78)
(294.10)
(1,028.69)
Proceeds From Disposal of Property, Plant and Equipment *
Net Income / (Expenses) relating to Investment Property
Investment / (Redemption) in fixed deposits
Sale of Investment in Subsidiaries, Associates (net)
Sale / Redemption of Investment in others
Received from NHAI against Termination Payment
Loan given (net)
Dividend received
Interest Income
21.68
(5.95)
280.34
883.00
58.89
181.21
(7.19)
0.02
16.69
14.73
31.20
(495.78)
183.30
64.85
-
350.67
0.12
365.40
Net cash generated from /(used in) investing activities
446.94
(808.31)
154
Reliance Infrastructure Limited Consolidated Statement of Cash Flows for the year ended March 31, 2021
Particulars
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Non Controlling Interest (net)
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
Net Increase/(Decrease) in cash and cash equivalents - [A+B+C]
Add: Adjustment on Disposal of Subsidiaries
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents at the end of the year**
Cash and Cash Equivalents – (For Component Refer Note 7 (e))
Cash and Cash Equivalents – Non Current Assets held for Sale
Year ended March
31, 2021
Year ended
March 31, 2020
` Crore
(0.24)
1,033.85
(1,136.51)
(24.29)
13.51
576.58
(652.80)
(262.54)
(1,367.23)
(1,620.98)
(14.16)
(22.50)
(13.14)
(19.65)
(1,531.08)
(1,979.02)
352.08
(429.43)
713.52
636.17
632.18
3.99
636.17
87.50
-
626.02
713.52
709.61
3.91
713.52
Note: Figures in brackets indicate cash outflows.
* Excluding transfer of Investment property and Property, Plant and Equipments of ` 1,200 crore to lenders towards their outstanding.
**Including balance in unpaid dividend account ` 12.25 crore (` 14.18 crore) and balance in current account with banks of
` 91.92 crore (` 98.77 crore) lying in escrow account with bank held as a Security against the borrowings and fixed deposits of
` 82.98 crore (` 443.88 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 – 41).
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
155
Reliance Infrastructure Limited
Disclosure pursuant to para 44 A to 44 E of IndAS 7 - Consolidated Statement of cash flows
Particulars
Long Term Borrowings
Year ended March
31,2021
Year ended March
31,2020
` Crore
Opening Balance (Including Current Maturities)
14,524.14
14,919.06
Availed during the year
Short term borrowing converted in long term borrowings
Impact of non-cash items
-
Impact of Effective Rate of Interest
- Foreign Exchange Movement
- Transfer of Investment Property and Property, plant & equipments
- Others
Disposal of Subsidiaries
Repaid During the year
Repayment related to non current assets held for sale
Closing Balance
Short Term Borrowings
Opening Balance
Availed during the year
Short term borrowing converted in long term borrowings
Impact of non-cash items
- Other
Repaid during the year
Closing Balance
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
1,033.85
195.88
60.53
(11.31)
(1,150.00)
142.46
(2,316.75)
(1,136.51)
181.26
576.58
-
41.46
70.52
-
172.72
(603.40)
(652.80)
-
11,523.55
14,524.14
2,541.37
119.76
(195.88)
(14.71)
(144.05)
2,306.49
2,852.51
-
(49.99)
(261.15)
2,541.37
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
156
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. 38. 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, 2021. These Consolidated Financial Statements of RInfra for the year ended March 31, 2021 were authorised for issue by the
Board of Directors on May 28, 2021. 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 Indian Companies Act, 1913.
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.
157
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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.
38(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).
158
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
BRPL, BYPL and PKTCL 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.
159
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
160
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
161
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
162
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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. 40 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)
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”.
iii) 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.
iv) 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.
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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 40).
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
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
170
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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 judgments
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
171
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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 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 ` 126.31 crore (` 251.43 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 ` 149.44 crore (` 149.33 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 40 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 40 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
172
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
•
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 38 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.
173
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Note 3: Property, Plant and Equipment (PPE)
Particulars
Freehold
Land
Leasehold
Land
Buildings
Plant and
Machinery
Distribution
Systems
Furniture
and
Fixtures
Vehicles
Office
Equipment
Computers
Electrical
Installations
Total
` Crore
Capital
work in
progress
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
Gross carrying amount
As at April 1, 2020
Additions
Regrouped from
Investment Property
Disposals
Gross carrying amount as
on March 31, 2021
Accumulated
depreciation and
impairment
As at April 1, 2020
Depreciation charge during
the year
Regrouped from
Investment Property
Disposals
Accumulated
depreciation and
impairment as on March
31, 2021
Net carrying amount as
on March 31, 2021
Less: Provision for
Retirement
Net carrying amount
after provision
as at March 31, 2021
Notes:
334.65
-
-
334.65
84.64
97.40
-
182.04
712.83 5,673.02
447.29
86.38
6,033.93
30.06
8.24
734.64
4,787.20
391.39
-
5,178.59
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
-
14.17
11,858.06 1,127.36
857.95
851.52
1,133.79
1,014.54
97.72
12,774.88
-
-
-
-
-
4.54
3.38
91.29 1,433.73
398.11
23.45
835.02
286.03
12.65
2.82
8.39
2.47
28.56
11.63
41.05
10.93
2.59
0.63
2,457.82
739.45
-
-
126.00
-
-
-
-
-
-
126.00
-
7.92
1.80
32.34
112.94 1,925.50
-
1,121.05
0.01
15.46
0.15
10.71
0.53
39.66
1.51
50.47
-
3.22
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
334.65
-
182.04
15.49
734.64 6,033.93
464.70
7.68
5,178.59
440.74
-
-
-
-
-
182.61
152.04
-
197.53
42.28 1,008.26
5,490.37
700.04
0.19
5,619.14
50.60
2.17
2.44
0.86
54.35
28.26
6.30
-
121.93
19.69
-
96.06
9.84
37.24
14.17
-
12,774.87 1,133.79
612.27
966.61
-
39.68
-
3.56
31.00
1.10
140.52
0.58
142.56
0.51
1,239.95
13.66 12, 541.21
859.01
887.05
-
-
-
-
-
7.92
5.42
112.94 1,925.50
375.50
22.49
1,121.05
299.98
15.46
2.79
10.71
2.46
39.66
12.28
50.47
11.19
3.22
0.82
3,286.93
732.93
-
-
-
-
1.19
-
-
35.35
-
36.54
-
13.34
8.23
297.38
127.20 2,003.62
0.07
1,420.96
0.27
19.17
2.43
10.74
0.51
51.43
0.46
96.55
0.15
3.89
309.50
3,746.90
152.04
184.19
572.84
3,468.75
4,198.18
35.18
20.26
89.09
46.01
9.77
8,794.31
887.05
28.62
12.09
8,765.69
874.96
Capital Work in Progress includes borrowing cost of ` 3.48 crore (` 11.55 crore) and Foreign exchange fluctuation loss of
` 0.20 crore (` 0.25 crore).
Additions to Building, Plant and Machinery and Other tangible assets includes borrowing cost of ` 0.10 crore (` 0.61 crore), `
25.40 crore (` 19.83 crore) and ` 0.94 crore (` 0.54 crore) respectively. Borrowing cost is capitalized @12.08% to 12.25%.
a.
b.
174
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021 c.
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
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 for the year
ended March 31, 2020.
g.
Capital work-in-progress
Particulars
CWIP Movement
CWIP Movement
Year
2020-21
2019-20
Opening
1,121.70
1,115.27
Addition
612.27
857.95
Capitalisation
846.81
851.52
Deduction
Closing*
12.20
-
874.96
1,121.70
*(net off of Provision for Non moving Capital Inventories of ` 4.12 crore (` 4.52 crore) and Provision for retirement of assets
of ` 12.09 crore (` 12.09 crore). Includes personnel cost of ` 22.09 crore (` 43.16 crore).
` Crore
CWIP pledged to lenders Refer Note 11 (a) and 11 (b).
h. Movement in Provision for Retirement of PPE/CWIP
Year
2020-21
2019-20
4.
Investment Property
Particulars
Gross carrying amount
Opening Gross Carrying value
Additions
Regrouped to Property, Plant and Equipments
Deductions
Closing gross carrying value
Accumulated depreciation:
Opening accumulated depreciation
Depreciation during the year
Regrouped to Property, Plant and Equipments
Deductions
Closing accumulated depreciation
Net carrying value
Opening
Provision
made
Provision
reversed
46.99
46.59
-
0.40
(6.28)
-
` Crore
Closing
40.71
46.99
` Crore
As at
March 31, 2021
As at
March 31, 2020
599.84
-
39.69
560.15
-
117.18
19.58
36.55
100.21
-
-
599.84
-
-
-
599.84
97.43
19.75
117.18
482.66
175
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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
(Loss) / Profit from investment properties
Year Ended
March 31, 2021
30.54
19.70
10.84
19.58
(8.74)
` Crore
Year Ended
March 31, 2020
67.99
26.24
41.76
19.75
22.01
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, 2019
Additions
Effect of foreign currency
exchange difference
Disposals/Assets held for Sale
Gross carrying amount as at
March 31, 2020
Accumulated amortisation and
impairment
As at April 01, 2019
Amortisation charge for the year
Disposals/Assets held for Sale
Accumulated amortisation and
impairment as at March 31, 2020
Net carrying amount as at March
31, 2020
Gross carrying amount
As at April 01, 2020
Additions
Effect of foreign currency
exchange difference
Disposals
Gross carrying amount as at
March 31, 2021
Accumulated amortisation and
impairment
As at April 01, 2020
Amortisation charge for the year
Disposal
Accumulated amortisation and
impairment as at March 31, 2021
Net carrying amount as at March
31, 2021
56.85
7.22
-
1,454.26
-
-
0.01
64.06
-
1,454.26
28.63
6.40
0.01
35.02
410.78
-
-
410.78
60.61
-
-
-
60.61
2.61
0.62
-
3.23
3,360.47
-
37.60
-
3,398.07
12,734.14
-
-
1,346.79
11,387.35
535.91
113.97
-
649.88
1,608.11
497.58
80.13
2,025.56
-
86.60
-
-
86.60
-
8.79
-
8.79
17,666.33
93.82
37.60
1,346.80
16,450.95
2,586.04
627.36
80.14
3,133.26
29.04
1,043.48
57.38
2,748.19
9,361.79
77.81
13,317.69
64.06
9.83
-
1,454.26
-
-
0.01
73.88
-
1,454.26
35.02
8.86
-
43.88
410.78
-
-
410.78
60.61
-
-
-
60.61
3.23
0.72
-
3.95
3,398.07
-
(14.38)
-
3,383.69
11,387.35
-
-
2,459.06
8,928.29
649.88
113.06
-
762.94
2,025.56
467.87
406.10
2,087.33
86.60
1.65
-
0.16
88.09
8.79
9.08
-
17.87
16,450.95
11.48
(14.38)
2,459.23
13,988.82
3,133.26
599.59
406.10
3,326.75
-
-
-
-
-
76.75
-
-
76.75
-
-
-
-
30.00
1,043.48
56.66
2,620.75
6,840.96
70.22
10,662.07
76.75
Overall Movement of Intangible assets under development
Financial Year
Opening
Additions*
Capitalisation
Assets held for Sale/
Disposal
` Crore
Closing
2020-21
2019-20
1,407.72
1,477.15
187.89
219.12
-
-
445.79
288.55
1,149.82
1,407.72
*Additions includes Borrowing cost incurred during the year of ` 81.93 crore (` 77.56 crore) and Foreign exchange fluctuation-
Gain /(Loss) of ` 1.54 crore (` (3.88) crore).
176
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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, Spares and Consumables *(net off of Provision/impairment for Non moving
inventories of ` 3.31 crore (` 6.53 crore)
Total
* including in transit and with third party
` Crore
As at
March 31, 2021
As at
March 31, 2020
0.16
72.50
72.66
0.28
0.16
64.18
64.34
0.01
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))
7.
Financial assets
7(a) Non-current investments
Particulars
Face value
in ` unless
otherwise
stated
As at March 31, 2021
As at March 31, 2020
Number of
Shares / Units
Amount
` Crore
Number of
Shares / Units
Amount
` Crore
Investment in equity instruments (fully paid-up
unless otherwise stated):
In associate companies - valued as per equity
method
Quoted
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
10
10
10
10
10
10
10
-
- 18,61,03,025
-
3,000
2,500
5,000
5,000
5,000
5,001
2.44
-
-
-
-
-
3,000
2,500
5,000
5,000
5,000
5,001
2.46
-
-
-
-
-
2.44
2.46
177
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Particulars
Investment in preference shares
Face value
in ` unless
otherwise
stated
As at March 31, 2021
As at March 31, 2020
Number of
Shares / Units
Amount
` Crore
Number of
Shares / Units
Amount
` Crore
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
10
7,92,000
36.79
36.79
7,92,000
29.78
29.78
In Others - At FVTPL
Quoted
Reliance Power Limited #
Unquoted
CLE Private Limited (formerly Crest Logistics and
Engineers 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
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 (formerly
Crest Logistics and Engineers Private Limited) @
` 20,000
10% Non-Convertible Non-Cumulative Redeemable
Preference Shares in Jayamkondam Power Limited
@ Re 1
10
10
10
10
10
10
1
USD 1
USD 1
10
10
16,65,60,739
72.49 35,82,98,193
44.78
4,09,795
0.41
4,09,795
0.41
2,000
100
100
100
-
@
@
@
2,000
100
100
100
2,72,29,539
2.72 2,72,29,539
10,000
111
0.04
@
10,000
111
5,55,370
0.56
5,55,370
4,09,795
@
4,09,795
76.24
115.47
-
@
@
@
2.72
0.04
@
0.56
@
48.52
80.76
USD 1
3,60,000
678.62
3,60,000
678.62
10
2,000
@
2,000
@
1
1,09,50,000
@ 1,09,50,000
@
Total
678.62
678.62
178
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021 Particulars
Investment in Debentures (fully paid-up)
At FVTPL Unquoted
Zero Coupon Unsecured Redeemable Non-
Convertible Debentures in DA Toll Road Private
Limited #
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, 2021
As at March 31, 2020
Number of
Shares / Units
Amount
` Crore
Number of
Shares / Units
Amount
` Crore
1
4,930,870,662
493.08
-
-
100
10,00,00,000
527.27 10,00,00,000
614.60
100
12,00,00,000
632.73 12,00,00,000
698.61
1,653.08
2,447.17
679.07
1,313.21
2,072.60
679.07
1,768.10
1,393.53
Market
Value
Book
Value
Market
Value
Book
Value
72.49
72.49
44.78
44.78
2,374.68
679.07
2,027.82
679.07
# 40,35,749 (19,57,73,203) shares of Reliance Power Limited and all Redeemable Non-Convertible Debentures in DA Toll
Road Private 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.
7(b)
Current Investments
Particulars
Investment in Mutual Funds Units
At FVTPL
Quoted
Face value
in ` unless
otherwise
stated
As at March 31, 2021
As at March 31, 2020
Number
of Units
Amount
` Crore
Number
of Units
Amount
` Crore
Reliance Floating Short Term Fund-Growth option
Nippon India Low Duration Fund - Daily Dividend
Plan
10
10
2,12,463
2,188
Total
Aggregate amount of quoted investments
Aggregate amount of impairment in the value of
investments
2,12,463
2,229
0.87
0.12
0.99
0.99
-
0.80
0.13
0.93
0.93
-
179
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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183
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
7 (c) Service Concession Receivables
Particulars
Opening balance
Accrued interest
Scheduled Repayments
(Disposal) / 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 ` 20.56 crore (` 28.91 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
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
b) Payment of Dividend
c) Escrow accounts
d) Margin Money
184
As at
March 31, 2021
28.91
-
-
(8.35)
20.56
` Crore
As at
March 31, 2020
36.93
1.84
12.92
3.06
28.91
-
20.56
20.56
-
28.91
28.91
` Crore
As at
March 31, 2021
As at
March 31, 2020
352.46
3,366.47
297.35
4,016.28
297.35
3,718.93
3,632.56
86.37
327.87
4,677.30
274.24
5,279.41
274.24
5,005.17
4,954.04
51.13
` Crore
As at
March 31, 2021*
As at
March 31, 2020
459.82
59.79
12.25
97.65
2.67
632.18
532.10
127.43
14.18
35.21
0.69
709.61
` Crore
As at
March 31, 2021
293.69
As at
March 31, 2020
750.57
293.69
750.57
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
details of which are given below:
Particulars
Bank Deposits
Unpaid dividend
Escrow account
Margin Money
Total
7(g) Loans
Particulars
(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
7(h) Other Financial Assets
As at
March 31, 2021
As at
March 31, 2020
` Crore
82.98
12.25
91.92
13.75
200.90
460.23
14.18
98.77
13.75
586.93
` Crore
As at March 31, 2021
As at March 31, 2020
Current
Non-Current
Current
Non-Current
1,124.66
4,089.58
3,829.14
9,043.38
3,829.14
5,214.24
23.30
2.99
5,240.53
-
-
-
-
14.64
0.53
15.17
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
Particulars
As at March 31, 2021
` Crore
As at March 31, 2020
Current
Non-Current
Current
Non-Current
(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
1,824.68
28.24
20.56
1,585.93
143.03
0.75
-
-
-
0.46
-
44.55
Margin money with Banks/Restricted Bank Deposit
-
226.16
Unbilled Revenue
Other Receivables
Less: Provision for diminution in value of deposits/
Expected Credit Loss
Total
*Secured
293.01
821.00
4,717.20
143.03
-
0.49
271.66
-
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
-
4,574.17
271.66
4,168.14
301.72
0.16
0.28
185
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
7(i) Other Assets
Particulars
As at March 31, 2021
(` Crore)
As at March 31, 2020
(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
8.
Assets classified as Non Current Assets held for sale
KM Toll Road Private Limited (KMTR)
Current
Non-Current
Current
Non-Current
-
410.01
2.79
362.36
-
739.96
0.68
39.91
9.00
106.51
0.99
0.37
-
4.10
-
436.42
31.21
449.11
0.37
683.78
0.91
40.95
78.01
46.23
1.11
0.39
-
4.09
1,515.80
160.88
1,601.80
170.78
KM Toll Road Private Limited (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. In terms of the provisions of the Concession Agreement, 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 has also raised further
claims of ` 1,092.74 crore. KMTR has invoked dispute resolution process under clause 44 of the Concession Agreement.
Subsequently, vide letter dated August 21, 2020, NHAI advised its Programme Director for release of termination payment
to KMTR and accordingly ` 181.21 crore was released during the year towards termination payment which has been utilised
for debt servicing.
As a part of the dispute resolution, KMTR has invoked arbitration and is confident of a fair outcome. Pending final outcome of
the dispute resolution process and as legally advised, the claims for the Termination Payment are considered fully enforceable.
Notwithstanding the dependence on above said material uncertain events, KMTR 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 is considered in the financial statements. The assets and liabilities of KMTR are classified as Non Current Assets
held for sale as per Ind AS 105 “Non-Current Assets held for sale and discontinued operations”. Since the Group continues to
operate in Infrastructure segment which includes businesses with respect to development, operation and maintenance of toll
roads, metro rail transit systems and airports, KMTR is not classified as Discontinued Operations as per Ind AS 105 “Non Current
Assets held for sale and discontinued operations”. Accordingly the previous period/year figures are reclassified in statement of
profit and loss.
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, 2021 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
Net Movement during the year (B-C)
Closing Balance (A+D)
C
D
E
186
2020-2021
` Crore
2019-2020
17,917.57
16,505.00
3,392.42
-
-
3,392.42
915.33
2,477.09
20,394.66
2,527.57
-
-
2,527.57
1,115.00
1,412.57
17,917.57
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Sr.
No.
II
Particulars
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
2020-2021
` Crore
2019-2020
1,640.22
756.22
2,396.44
2,396.44
-
572.37
1,067.85
1,640.22
1,640.22
-
20,394.66
-
17,917.57
-
Regulatory Assets of `s 20,394.66 crore (` 17,917.57 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 Licensees.
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, 2020, 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. Further, DERC
on December 27, 2019 issued the DERC (Business Plan) Regulations, 2019 (Business Plan Regulations’19) which is in force
for a period of three years upto FY 2022-23 and provides trajectory for various controllable parameters for the aforesaid
period. 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.
DERC has trued up revenue gap up to March 31, 2019 vide various Tariff Orders from September 29, 2015 to August 28,
2020 with certain disallowances. The Company has preferred an appeal before Honorable Appellate Tribunal for Electricity
(“APTEL”) against such disallowances. Based on the legal opinion taken by the Delhi Discoms, the disallowances which are
subject matter of appeal, has not been accepted by Delhi Discoms and in accordance with Ind AS 114 treated such amounts
as they ought to be treated in terms of the accepted Regulatory Framework in the carrying value of Regulatory Deferral
Account Balance as at March 31, 2021.
DERC has allowed recovery of 8% surcharge on the applicable tariff since July 13, 2012 towards Accumulated Regulatory
Deferral Account Balance and carrying cost. DERC vide its true up order dated July 25, 2014, September 29, 2015, August
31, 2017, March 28, 2018, July 31, 2019 and August 28, 2020 has allowed adjustment of such recovery of surcharge only
towards principal amount of Regulatory Assets and has separately allowed carrying cost in the Annual Revenue Requirement
of the respective years. Accordingly, the same is being recovered from the consumers.
Delhi Discoms has also taken up the matter of timely recovery of Accumulated Regulatory assets through a Writ Petition
before the Hon’ble Supreme Court.
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.
187
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
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, 2021
As at
March 31, 2020
450.06
8.00
450.06
8.00
1,550.00
1,550.00
42.00
2,050.06
42.00
2,050.06
265.40
265.40
262.99
0.04
263.03
265.40
265.40
262.99
0.04
263.03
(a) Shares Pledged Details:
Sr.
No.
1
Particulars
As at
March 31, 2021
As at
March 31, 2020
No. of Shares Pledged by Promoter Group Companies
1,22,50,000
2,53,59,937
(b) Reconciliation of the Shares outstanding at the beginning and at the end of the year
Particulars
Equity Shares -
As at March 31, 2021
As at March 31, 2020
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
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 if any, 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.
188
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Reliance Project Ventures and
Management Private Limited
Housing Development Corporation
Finance Limited
@ reduced to 4.70%
10(b) Other Equity - Reserves and surplus
Particulars
Capital Reserve
Capital Reserve on Consolidation
iv. Details of shareholders holding more than 5% shares in the Parent Company
Name of the Shareholders
As at March 31, 2021
As at March 31, 2020
No. of Shares
1,23,50,000
% held
No. of Shares
@ 2,77,09,937
% held
10.54
2,15,32,488
8.19
2,15,80,995
8.21
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
Closing balance
(ii)
Capital Reserve on Consolidation
Particulars
Balance as per last Balance Sheet
Less: Loss on invocation / impairment of shares
Closing balance
` Crore
As at
March 31, 2021
As at
March 31, 2020
155.09
3,687.62
@
130.03
8,825.09
212.98
-
808.25
155.09
3,687.62
@
130.03
8,825.09
212.98
5.81
860.00
(4,877.64)
(4,346.53)
(1.56)
8,939.86
(0.75)
9,529.34
` Crore
As at
March 31, 2021
155.09
-
155.09
As at
March 31, 2020
5,179.97
(5,024.88)
155.09
` Crore
As at
March 31, 2021
3,687.62
-
3,687.62
As at
March 31, 2020
3,974.76
(287.14)
3,687.62
(iii)
Sale proceeds of fractional Equity Share Certificates and dividends thereon
Particulars
Balance as per last Balance Sheet (@` 37,953 (` 37,953))
Closing balance
` Crore
As at
March 31, 2021
@
@
As at
March 31, 2020
@
@
189
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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)
Self Insurance Reserve
Particulars
Balance as per last Balance Sheet
Add: Transfer from Retained Earnings
Less: Transfer on Disposal
Closing balance
(viii) General Reserve
Particulars
` Crore
As at
March 31, 2021
As at
March 31, 2020
130.03
130.03
130.03
130.03
` Crore
As at
March 31, 2021
As at
March 31, 2020
8,825.09
8,825.09
8,825.09
8,825.09
` Crore
As at
March 31, 2021
As at
March 31, 2020
212.98
-
-
212.98
165.02
55.66
(7.70)
212.98
` Crore
As at
March 31, 2021
As at
March 31, 2020
5.81
-
5.81
-
4.80
1.01
-
5.81
` Crore
As at
March 31, 2021
As at
March 31, 2020
Balance as per last Balance Sheet
Less: Transfer to Statement of Consolidated Statement of Profit and
Loss (Refer Note 26)
Add :Transfer to Statement of Consolidated Statement of Profit and
Loss (Refer Note 26)
Add: Transfer from Debenture Redemption Reserve
Closing balance
860.00
51.75
-
-
808.25
710.89
-
141.41
7.70
860.00
190
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021 (ix)
Retained Earnings
Particulars
Balance as per last Balance Sheet
Add: Net (Loss)/ Profit 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: Transfer to Debenture Redemption Reserve
Less: Transfer to Self Insurance Reserve
Closing balance
(x)
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:
` Crore
As at
March 31, 2021
As at
March 31, 2020
(4,346.53)
(5,071.71)
(532.30)
771.17
1.19
15.49
-
-
-
(4.81)
(55.66)
(1.01)
(4,877.64)
(4,346.53)
` Crore
As at
March 31, 2021
As at
March 31, 2020
(0.75)
(0.81)
(1.56)
(6.14)
5.39
(0.75)
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:
The Parent Company has been creating debenture redemption reserve (DRR) till March 31, 2020 as per the
relevant provision of the Companies Act, 2013, however according to Companies (Share Capital and Debenture)
Amendment Rules, 2019 effective from August 16, 2019, the Parent Company is not required to create DRR,
hence DRR is not created in the books of account for the financial year 2020-21.
(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 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.
191
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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 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, 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 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:
` 102.29 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, 2021) 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 37 (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.
External Commercial Borrowings in Foreign Currency:
` 412.02 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.
Term Loans from Financial Institutions are secured as under:
` 323.00 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.
` 465.99 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 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,
C.
D.
193
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
` 1,753.79 crore and ` 1,073.91 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, 2021 the required permission from DERC is sought and is under process.
E.
Term Loans from Banks are secured as under:
(i)
In case of Parent Company are secured by the following:
(i)
` 111.97 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, and ` 36.97 crore by subservient charge on moveable
Property, Plant and Equipment of the Company.
(ii)
` 2,017.33 crore are secured by the following:
a.
b.
c.
d.
e.
f.
g.
h.
i.
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 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.
Secured by pledge of 1,88,28,000 Equity Shares of BSES Kerala Power 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.
j.
Exclusive charge over all rights, title, interest and benefit of the Company in Debentures issued to the
Company by DA Toll Road Private Limited.
k.
Exclusive charge on identified building of the Company.
194
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(ii)
In case of Other than Parent Company are secured by the following:
` 1,284.13 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
` 2,896.73 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.
` 1,206.75 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.
The Group has delayed payments of interest and principal to the lenders as detailed below:
Name of lender
Default as at March 31, 2021
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
110.27
1,005
248.21
1,095
Canara Bank
IDFC Bank
Jammu and Kashmir
Bank
Yes Bank Limited
Srei Equipment Finance
Limited
Axis Bank
Bank of Baroda
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
-
75.00
2,025.12
17.65
70.33
102.42
121.64
79.70
52.81
-
841
329
487
1,093
1,093
1,005
1,005
1,005
-
22.90
16.47
7.14
39.38
37.50
41.11
10.04
13.05
23.06
1,005
5.09
142.68
16.20
23.52
51.03
1,005
1,005
456
456
48.07
-
18.75
37.50
133.00
109.77
-
716
657
-
39.96
13.05
-
-
821
59
1,625.44
494
477.10
670
456
456
578
578
578
578
578
-
456
456
-
-
-
-
-
-
-
-
-
-
-
-
--
-
-
-
-
-
-
-
-
-
-
2.05
3.62
8.61
10.17
8.89
3.19
9.36
-
-
-
588
397
-
396
-
147
147
335
335
335
335
335
-
-
-
195
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Name of lender
Default as at March 31, 2021
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
-
38.71
13.78
51.94
27.56
39.68
19.30
-
-
456
1,004
1,004
1,004
1,004
1,004
60.05
28.12
51.23
28.13
136.58
-
-
-
27.47
152.59
1,095
152.13
1,095
456
1,095
456
1,095
-
-
1,095
1,095
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.53
1.71
3.06
4.40
2.14
-
-
-
-
147
147
147
147
147
-
-
Bank of Maharashtra
Punjab and Sindh Bank
State Bank of India
Allahabad Bank
Indian Bank
Union Bank of India
United Bank of India
IDBI Bank
Indian Infrastructure
Finance Company (UK)
Limited
NCD Series 29: As at March 31, 2021, the installments of ` 63 crore were outstanding biginning from March 31, 2020. During the
year there was a delay in repayment of interest of ` 16.08 crore for 290 days. Trustee of NCD Series 29 have issued loan recall
notice on December 8, 2020. NCD Series 18: Axis Trustee Services Ltd (“Trustee”) had issued loan recall notice on September 20,
2019 due to downgrade of Parent Company’s ratings. As per the Debenture Trust Deed dated April 7, 2014, the final redemption
date has been defined as January 21, 2022. Redemption of debentures shall becomes due on the last date of its tenor and not
otherwise and default in redemption shall be reckoned accordingly. As at March, 31, 2021, installment of ` 400 crore were
outstanding beginning from January 21, 2020 and interest of ` 69 crore was outstanding since April 30, 2020. During the year there
was a delay in repayment of interest of ` 34.87 crore. Additional Interest of ` 51.22 crore claimed by the NCD holders has not been
paid and is disputed. NCD Series 20E: In terms of the Security Interest (Enforcement) Rules, 2002, IDBI Trusteeship Services Limited
(“Trustee”) has enforced the security and taken the possession of the mortgaged properties in respect of the NCDs aggregating `
102.70 crore and interest aggregating ` 144.12 crore. Trustee has informed the Parent Company that in the event dues payable to
the debenture holders are not fully recovered/satisfied with sale proceed of secured assets, the debentures holders are entitled for
the recovery of the balance amount in the manner prescribed under applicable law. The Parent Company has not been informed as
regards any shortfall in the recovery of outstanding debt.
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)
196
` Crore
As at
March 31, 2021
As at
March 31, 2020
552.03
1,284.13
412.02
2,248.18
548.01
1,328.88
437.02
2,313.91
41.04
17.27
58.31
204.82
22.64
227.46
2,306.49
2,541.37
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021 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, 2021, the Group has overdue of ` 315.84 crore towards the principal. Further the Group has delayed
payments of interest and principal to the banks as detailed below:
Name of lender
Default as at March 31, 2021
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
315.84
-
917
-
-
-
-
-
-
37.28
-
749
-
9.43
-
749
11(c): Trade Payables
Particulars
As at March 31, 2021
` Crore
As at March 31, 2020
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
60.26
-
56.83
-
19,812.65
18.16
20,039.35
25.26
Total
19,872.91
18.16
20,096.18
25.26
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
` Crore
As at
March 31, 2021
As at
March 31, 2020
60.26
2.08
56.83
1.00
-
-
-
2.29
2.66
-
-
-
1.21
1.30
2.08
1.00
197
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
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, 2021
Current Non- Current
` Crore
As at March 31, 2020
Non-Current
Current
1,424.33
216.34
5,050.65
373.17
-
1,709.05
12.25
-
654.01
83.00
14.10
110.31
9,647.21
9.58
0.07
-
2,206.01
200.54
-
-
-
-
-
63.08
-
2,479.28
1,400.60
229.01
2,765.28
272.31
-
1,348.40
14.18
-
672.19
8.21
13.98
170.72
6,894.88
9.47
0.06
-
2,206.92
123.86
-
-
1.81
-
-
67.61
-
2,409.73
As at March 31, 2021
Current Non- Current
1,426.92
796.40
-
446.58
1,206.13
-
12.31
-
` Crore
As at March 31, 2020
Non-Current
1,509.68
448.51
1,191.22
13.29
Current
748.67
-
-
-
891.71
2,069.35
3,757.46
-
-
3,091.94
815.56
1,572.68
3,136.91
-
-
3,162.70
As at March 31, 2021
Current Non- Current
160.00
-
11.31
36.22
152.17
19.61
6.19
168.12
393.62
94.68
1.36
285.76
-
-
-
541.80
` Crore
As at March 31, 2020
Non-Current
160.00
Current
-
11.01
27.10
174.34
47.62
9.52
303.49
573.08
128.84
2.28
249.71
-
-
-
540.83
Information about Provision for Disputed Matters and significant estimates
Represents provision made for disputes in respect of corporate/regulatory matters of the Parent Company. No further
information is given as the matters are sub-judice and may jeopardize the interest of the Parent 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.
1.
2.
3.
198
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Movement in Provisions:
Particulars
As at April 01, 2019
Add : Provision made
Less : Provision used / reversed
As at March 31, 2020
Add : Provision made
Less : Provision used / reversed
As at March 31, 2021
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
Disputed
Matters
Legal Claim
Major Maintenance &
Overhaul Expenses
Total
160.00
-
-
160.00
-
-
160.00
8.23
1.42
0.13
9.52
0.30
3.63
6.19
404.59
89.12
69.66
424.05
52.68
38.80
437.93
572.82
90.54
69.79
593.57
52.98
42.43
604.12
` Crore
Year ended
March 31, 2021
Year ended
March 31, 2020
20.19
(83.38)
(63.19)
420.38
(524.63)
(104.25)
(167.44)
(A)
(B)
(A + B)
109.46
(0.36)
109.10
4.14
(155.00)
(159.14)
(50.04)
` Crore
13(b) Reconciliation of tax expenses and the accounting profit multiplied by India’s tax rate:
Particulars
(Loss) /Profit from before income tax expense
Tax at the Indian tax rate of 31.20% (34.944%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Income not considered for Tax purpose
Expenses not allowable for tax purposes
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
Tax losses for which no deferred tax was recognized
Recognition of Deferred Tax on Tax Losses
Unrecognised MAT Credit
Tax on income Jointly Controlled Operations assessed separately
Adjustments for current tax of prior periods
Other items
Income tax expense charged to Consolidated Statement of Profit and Loss
(Including Other Comprehensive Income)
Year ended
March 31, 2021
(311.43)
(166.49)
Year ended
March 31, 2020
814.70
284.69
129.28
37.39
(184.06)
0.16
-
(0.16)
263.54
(255.57)
3.01
1.49
(83.38)
87.35
(167.44)
(10.43)
3.69
(299.06)
0.62
(56.50)
33.02
126.51
(251.83)
102.36
-
(0.36)
17.25
(50.04)
199
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
13(c) Amounts recognised in respect of current tax / deferred tax directly in equity:
Particulars
Amounts recognised in respect of current tax / deferred tax directly in equity
13(d) Tax losses and Tax credits
Particulars
` Crore
As at
March 31, 2021
-
As at
March 31, 2020
-
` Crore
As at
March 31, 2021
149.44
834.26
As at
March 31, 2020
149.33
1,353.19
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 Credits – MAT credit entitlement
In the absence of reasonable certainty of future profit, the Group has not recognised deferred tax assets on unused losses.
4,710.94
126.31
4,951.70
251.43
13(e) Unrecognised temporary differences
Particulars
As at
March 31, 2021
As at
March 31, 2020
` Crore
Temporary differences relating to subsidiaries for which deferred tax liability has not
been recognised as the Parent Company is able to control the temporary difference:
Undistributed earnings
2,859.32
2,275.91
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
Fair Valuation of financial instruments
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, 2021
As at
March 31, 2020
` Crore
0.05
439.81
30.14
-
456.74
926.74
98.95
240.75
44.32
336.91
720.93
205.81
426.51
169.27
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
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.
As at March 31, 2021, the Parent Company has net deferred tax assets of ` 51.43 crore. In the absence of convincing
evidences that sufficient future taxable income will be available against which deferred tax assets can be realised, the same
has not been recognised in the books of account in line with Ind - AS 12 on Income Taxes.
200
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
13(g) Movement in deferred tax balances:
Particulars
As At March 31, 2019
(Charged)/credited:
- to profit or loss
- to other comprehensive income
As At March 31, 2020
(Charged)/credited:
- to profit or loss
- to other comprehensive income
- On Disposal of subsidiaries
As At March 31, 2021
14. Revenue from operations
Particulars
Revenue from Power Business :
Income from sale of power and transmission charges
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
Management and Consultancy Services
Others
Total revenue
` Crore
Deferred Tax Liability
492.32
(159.14)
(5.92)
327.26
(104.25)
2.93
31.30
257.24
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
14,719.66
516.36
514.05
13,689.25
(1.00)
13,688.25
16,809.62
587.51
528.01
15,694.10
(1.93)
15,692.17
1,528.14
1,253.67
739.96
677.54
62.42
8.62
1,599.18
964.28
26.10
1.81
992.19
3.73
133.69
287.54
424.96
16,704.58
677.54
576.68
100.86
11.06
1,365.59
1,177.90
300.42
2.51
1,480.83
7.63
32.42
295.57
335.62
18,874.21
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 ` 6,574.73 crore as at March 31, 2021, (` 17,893.13 crore as at March 31, 2020) out of which
` 3,066.33 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.
201
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
14.4 Reconciliation of contracted prices with the revenue during the year:
2020-21
1,986.21
194.94
(486.11)
1,695.04
2020-21
2,652.58
(56.20)
11.85
` Crore
2019-20
1,715.08
385.56
(114.43)
1,986.21
` Crore
2019-20
2,556.01
(227.11)
313.68
2,608.23
2,652.58
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 completed/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)
2020-21
2019-20
29,536.04
30,645.06
` Crore
28.52
61.16
-
102.85
(14,736.82)
14,888.90
(1,211.87)
29,536.04
1,599.18
(125.61)
1,365.59
(144.88)
1,473.57
6,840.60
6,574.73
14,888.90
1,220.71
10,422.20
17,893.13
29,536.04
* 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
Recovery of Investment earlier written off
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, 2021
52.44
Year ended
March 31, 2020
161.70
102.79
34.62
9.36
0.02
30.54
54.99
36.86
6.49
438.26
12.18
-
181.67
960.22
974.50
37.74
42.16
0.12
67.99
1.10
-
142.99
116.31
7.58
418.09
273.81
2,244.09
202
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
17. Finance Cost
Particulars
Interest and financing charges on financial liabilities:
Debentures
Term Loan
Foreign currency loan
External Commercial Borrowings
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
Fair Value change in financial instruments
Other finance charges
Total
18. Other Expenses
Particulars
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)
Provision for Doubtful debts / Advances / Deposits / Diminution of Investments
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
Total
Year ended
March 31, 2021
873.46
149.37
21.37
47.17
1,091.37
` Crore
Year ended
March 31, 2020
868.14
90.34
27.47
61.06
1, 047.01
Year ended
March 31, 2021
Year ended
March 31, 2020
` Crore
182.10
1,177.80
48.95
3.44
575.01
107.28
113.70
7.44
277.66
233.36
2,726.74
174.21
999.58
53.82
1.78
680.36
73.06
232.15
25.32
54.73
105.45
2,400.46
` Crore
Year ended
March 31, 2021
51.82
Year ended
March 31, 2020
164.82
13.11
18.50
246.81
49.46
51.28
22.12
0.01
9.22
134.32
89.58
0.36
523.61
51.83
36.28
38.34
179.14
-
-
1.60
4.89
17.05
157.24
57.30
26.99
51.44
0.15
8.25
120.05
8.82
0.42
583.37
12.51
32.76
12.03
180.82
8.95
17.38
9.54
1,517.39
1,474.78
203
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
19. Earnings per share
Particulars
i.
Profit /(Loss) for the year for basic and diluted earnings per share:
Profit /(Loss) for the year (a)
Profit / (Loss) before effect of withdrawal from scheme (b)
Profit /(Loss) before Rate Regulated Activities (c)
ii.
Basic and diluted earnings per share:
Basic and diluted earnings per share (a /d)
Before withdrawal from scheme (b / d)
Before Rate Regulated Activities (c / d)
Year ended
March 31, 2021
` Crore
Year ended
March 31, 2020
` Crore
(532.30)
(584.05)
(2,973.52)
`
(20.24)
(22.21)
(113.07)
771.17
912.58
(632.36)
`
29.32
34.70
(24.04)
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 (d)
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, 2021 have been regrouped and reclassified 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 @.
22. Contingent Liabilities
Particulars
` Crore
As at
March 31, 2021
As at
March 31, 2020
(i)
Claims against the Group not acknowledged as debts and under litigation
3,859.27
3,976.93
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
183.85
588.81
524.09
56.88
1,643.80
861.84
180.82
696.00
523.85
50.92
1,643.80
881.54
(ii) Corporate Guarantee - Nil (March 31, 2020 ` 1,487.67 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.
(iv) With respect of Energy Purchase Agreement (EPA) entered with Dhursar Solar Power Private Limited (DSPPL), The
Maharashtra Electricity Regulatory Commission (MERC) vide order dated October 21, 2016 allowed partial cost
claimed by the Parent Company. Aggrieved by the said order, the Parent Company had challenged the said order
before Appellate Tribunal for Electricity (APTEL). The APTEL has upheld the findings of MERC and the Parent Company
filed an appeal before the Supreme Court of India against the APTEL Order. The matter is currently pending before the
Supreme Court of India. Post transfer of Mumbai Power Business to Reliance Electric Generation and Supply Limited
(REGSL), a inter-se agreement was entered between REGCL, DSPPL and the Parent Company, whereby the Parent
Company has agreed that the liability of REGSL to make tariff payments for the energy supplied by DSPPL is limited
to the MERC approved tariff and the Company has agreed to pay the differential amount between tariff payment
as per EPA and MERC approved tariff to the DSPPL thorough an agreement cum indemnity. Pending outcome of
the matter, the Parent Company continues to account differential expenditure as cost on monthly basis. The Parent
Company has also legally been advised that it has good case on merit and have fair chance to succeed. Based on the
above facts the Parent Company has not considered the said agreement cum indemnity as an Onerous Contract. The
Parent Company does not expect any cash outflow on this account.
204
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(v)
In case of Mumbai Metro One Private Limited (MMOPL):
a)
b)
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.
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 of hearing is yet to be fixed by the Court.
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.
(vi) 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.
(vii) Proportionate share of claims not acknowledged as debt and other contingent liabilities in respect of Associate and
Joint Venture Companies amounts to ` 5.45 crore (` 261.88 crore).
23. Commitments
Particulars
(i)
(ii)
` Crore
As at
March 31, 2021
As at
March 31, 2020
241.84
270.84
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) During the year the Parent Company, as a part of settlement with Yes Bank Limited, has sold its Investment property
including property, plant and equipment at Santacruz at a total transaction value of ` 1,200 crore through the
conveyance deed entered with Yes Bank Limited. The Parent Company is entitled to exercise its rights/option to buy
back this property after 8.5 years from the date of sale, subject to fulfillment of the condition precedents at an agreed
price as per option agreement entered between parties.
(iv) Proportionate share of Capital and other Commitments in respect of Associate and Joint Venture Companies amounts
to ` 1.72 crore (` 1.12 crore).
205
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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)
1
2
Reliance Naval and Engineering Limited (RNEL) (upto April 24, 2020)
Reliance Geothermal Power Private Limited (RGPPL)
3 Metro One Operations Private Limited (MOOPL)
4
5
6
7
RPL Sun Techniques Private Limited
RPL Photon Private Limited
RPL Sun Power Private Limited
Gullfoss Enterprises Private Limited
Utility Powertech Limited (UPL)
Reliance Project Ventures and Management Private Limited (RPVMPL)
(ii)
(iii)
Joint Ventures
Investing Party
(iv) Persons having control over
Shri Anil D Ambani
investing party
(v)
Enterprises over which
person described in (iv) has
significant influence
1
2
3
4
5
6
7
8
9
Reliance General Insurance Company Limited (RGI)
Reliance Capital Limited (RCap)
Reliance Securities Limited (RSL)
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)
10 Reliance Transport and Travels Private Limited (RTTPL)
11 Reliance Broadcast Network Limited (RBNL)
12 Reliance Wealth Management Limited (RWML)
13 Reliance Innoventures Private Limited (REIL)
14 Reliance Power Limited (RePL)
15 Rosa Power Supply Company Limited (ROSA)
16 Sasan Power Limited (SPL)
17 Vidarbha Industries Power Limited (VIPL)
18 Chitrangi Power Private Limited (CPPL)
19 Samalkot Power Limited (SaPoL)
20 Rajasthan Sun Technique Energy Private Limited (RSTEPL)
21 Dhursur Solar Power Private Limited (DSPPL)
22 Reliance Communication Limited (RCom)
23 Globalcom IDC Limited(GIL)
24 Reliance Corporate Advisory Services Limited (RCASL)
25 Reliance Infratel Limited (RITL)
26 Reliance Webstore Limited (RWL)
27 Reliance Natural Resources Limited
28 Reliance Natural Resources (Singapure) Pte Ltd
206
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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
Interest Paid
(ii)
(iii)
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
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
-
-
-
3.24
-
32.42
1.83
1.58
-
79.97
-
4.94
-
-
-
354.20
0.41
4.09
-
12.18
2.73
2.71
-
-
39.23
32.24
-
-
-
-
-
5.96
-
0.17
-
-
2.83
7.56
1.47
-
84.53
-
-
-
97.31
19.98
25.78
54.42
-
5.15
473.28
131.11
21.23
16.87
23.02
24.81
1,604.38
1,538.43
236.93*
204.82
72.45
44.79
1,124.64
752.90
204.33
99.93
2,673.18
2,754.45
-
-
15.14
28.98
-
-
5,728.67
5,728.67
207
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Particulars
Year
Investing party,
Associates and
Joint Ventures
` Crore
Enterprises over
which person
described in
(iv) above,
has significant
influence
(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)
ICD Taken from
(vi)
ICD Repaid by / Assigned
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
-
905.90
-
-
-
92.96
-
447.96
-
12.81
-
190.00
* does not include fair value gain of ` 79.94 crore accounted during the year in terms of Ind AS 109
(d) Key Management Personnel (KMP) and details of transactions with KMP:
Name
Shri Punit Garg
Shri Paresh Rathod
Shri Pinkesh Shah
Category
Executive Director and
Chief Executive Officer
Company Secretary
(w.e.f. August 16, 2019)
Chief Financial Officer
(w.e.f May 8, 2020)
Ms Shruti Garg
Daughter of Shri Punit Garg
Shri Lalit Jalan
Chief Executive Officer
(upto April 06, 2019)
Shri Sridhar Narasimhan Chief Financial Officer
Shri Anil C Shah
(up to May 8, 2020)
Company Secretary
(upto August 15, 2019)
Years
Remuneration
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2020-21
2019-20
2.52*
2.36
0.47*
0.39
0.94*
-
-
-
-
3.50
0.36*
1.64
-
1.06
-
-
-
4,048.87
371.73
-
-
-
-
213.62
-
224.15
` Crore
Sale of Assets
-
-
-
-
-
-
-
3.30
-
-
-
-
-
-
*Remuneration does not include post-employment benefits, as they are determined on an actuarial basis for the
Company as a whole.
(e) Details of Transactions with Person having Control: During the year, the Parent Company received advance of
` 10.75 crore against the expenses incurred on his behalf. Closing Balance Nil. Sitting fees paid ` 0.03 crore during the
year 2020-21 (2019-20: ` 0.02 crore)
(f) Details of Material Transactions with Related Party
(i) Balance sheet heads (Closing balance)
Trade Receivables, Advances given and other receivables for rendering services SaPoL ` 2,585.89 crore (March
31, 2020 ` 2,678.34).
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.
208
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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, 2021 and
March 31, 2020.
Segment Information:
Particulars
Revenue:
Year ended March 31, 2021
Year ended March 31, 2020
Power*
E&C
Infrastructure
Total
Power*
E&C
Infrastructure
Total
` Crore
Total segment revenue
Less : Inter Segment revenue
16,381.32
1,746.63
1,017.86
19,145.81
17,336.41
1,622.79
1,528.53
20,487.73
-
-
-
-
-
-
-
-
Revenue from external customers
16,381.32
1,746.63
1,017.86
19,145.81
17,336.41
1,622.79
1,528.53
20,487.73
Less: Regulatory Income/(expenses)
Revenue from Operations as per Consolidated
Statement of Profit and Loss
2,441.23
16,704.58
1,403.52
19,084.21
209
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Particulars
Result
Segment Result
Finance Cost
Late Payment Surcharge
Interest Income
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) for the year
Capital Expenditure
Depreciation
Provision /(Reversal) of Impairment loss
Non cash expenses other than depreciation
(Pertaining to segment only)
*Total segment revenue includes Regulatory Income
Year ended March 31, 2021
Year ended March 31, 2020
Power*
E&C
Infrastructure
Total
Power*
E&C
Infrastructure
Total
` Crore
3,551.41
163.79
100.76
3,815.96
2,879.76
353.07
485.96
3,718.79
(2,726.74)
(2,142.78)
146.77
126.34
469.02
(311.43)
(167.10)
9.89
397.86
(532.30)
(2,400.46)
(1,967.10)
1,054.40
(126.00)
535.07
814.70
(50.88)
42.85
137.26
771.17
695.93
703.68
-
39.94
13.67
31.48
-
-
187.89
581.63
-
-
921.87
705.99
131.54
41.46
0.11
37.64
-
-
219.27
612.27
-
-
Particulars
Segment Assets:
Power
Engineering and Construction Business
Infrastructure
Total Segment Assets
Unallocated Assets
Total
Non Current Assets held for sale
Total Assets
Segment Liabilities:
Power
Engineering and Construction Business
Infrastructure
Total Segment Liabilities
Unallocated Liabilities (Including Non-controlling Interest)
Total
Liabilities relating to non current assets held for sale
Total Liabilities
As at
March 31, 2021
As at
March 31, 2020
` Crore
31,014.04
4,551.52
14,841.04
50,406.60
10,059.66
60,466.26
1,697.15
62,163.41
22,642.83
4,458.10
4,664.03
31,764.96
19,870.93
51,635.89
1,324.63
52,960.52
29,334.79
6,135.45
17,919.33
53,389.57
10,066.30
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
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.
210
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Pursuant to the option exercised under the above Scheme, net foreign exchange loss of ` 51.75 crore for the year ended
March 31, 2021 (Net Gain of ` 141.41 crore for the year ended March 31, 2020) has been debited / credited to the
Consolidated Statement of Profit and Loss and an equivalent amount has been transferred from / 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 withdrawn/transfer not been done, the Loss before tax for year ended
March 31, 2021 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 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 including COVID-19 lockdown. The SC vide
its order dated June 15, 2020 scheduled the hearing. Based on the facts of the case, applicable law and as legally advised,
DAMEPL has a fair chance 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.
28. Reliance Naval and Engineering Limited (RNEL), which was associate of the Parent Company till April 24, 2020 was admitted
for Corporate Insolvency Resolution Process in January 2020 and the financial results for the period ended April 24, 2020 are
not available. However, since the entire investment in RNEL has been written off in earlier years, there is no impact of RNEL’s
financial results on Group’s financial results during the year ended March 31, 2021.
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. During the financial year 2021, metro operations were suspended for about
seven months due to lockdown orders received from government authorities due to covid pandemic. However, MMOPL
is entitled to get the extension of the concession period to compensate the continuing revenue loss. 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. Further MMOPL has revised the Resolution Plan after
incorporating the impact of Covid lockdown and lower ridership thereafter and submitted to Lenders for approval, which
is under their active consideration. The Parent Company will endeavour 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), it has been classified as a Non Performing Asset (NPA) by the
consortium lenders. While there are some overdues relating to principal amount, GFTR has been regular in paying the
monthly interest and has paid interest upto March 31, 2021. GFTR is under discussion with the consortium of lenders
and has proposed a Resolution Plan (RP).The lenders have appointed an independent consultant to undertake Techno
Economic Viability study of GFTR business. Further GFTR has filed arbitration claims and is confident of favourable
outcome, which will further improve the financial position of GFTR. In view of the above, the management of GFTR
continues to prepare the financial statements as a ‘Going Concern’.
c.
In case of TK Toll Road Private Limited (TKTR) a wholly owned subsidiary of the Parent Company, the current liabilities
have exceeded its current assets as at March 31, 2021. TKTR is undertaking number of steps which will result in
improvement in cash flows and enable TKTR to meet its financial obligations. The revenues of TKTR have been sufficient
211
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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 is on account of 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 its loans as per RBI Circular on
Prudential Framework for resolution of Stressed Assets dated June 07, 2019 and is confident that the loan would be
restructuring. 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 TKTR. Notwithstanding the dependence on above said material
uncertain events, TKTR continues to prepare the financial statements on a going concern basis.
d.
In case of TD Toll Road Private Limited (“TDTR”) a wholly owned subsidiary of the Parent Company, the current
liabilities have exceeded its current assets as at March 31, 2021. TDTR is undertaking a number of steps which will
result in an improvement in cash flows and enable TDTR to meet its financial obligations. The revenues of TDTR 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 is on account of mismatch in the repayment schedule vis a vis the concession
period.
One of the lenders has applied for the insolvency petition under the Insolvency and Bankruptcy Code, 2016 (IBC)
against TDTR before the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, for non payment of the
interest and the instalments payable under the Rupee Term Loan Agreement. The Hon’ble NCLT vide its order dated
November 25, 2019 admitted the application and appointed the Interim Resolution Professional (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 said Appeal was dismissed on May 22, 2020. Civil Appeal to set aside the impugned
order filed by one of the Directors of TDTR is pending in Supreme Court. Meanwhile Committee of Creditors was formed
and the IRP was appointed as Resolution Professional. Further it has won arbitration claim worth ` 158.45 crore,
which will further improve the financial position of the TDTR. Notwithstanding the dependence on above said material
uncertain events, TDTR continues to prepare the financial statements on a going concern basis.
e.
Notwithstanding the dependence on these materials 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. During the year ended March 31, 2021, Parent Company has paid ` 2,275.19
crore to the lenders through monetisation and receipt of claims thereby reducing total debt by more than 35% of
outstanding standalone debts. Accordingly, the consolidated financial statements of the Group have been prepared on
a going concern basis.
30. Exceptional Items for the year represents a) gain of ` 56.77 crore on sale of entire stake in Parbati Koldam Transmission
Company Limited (PKTCL), a subsidiary of the Parent Company pursuant to Share Purchase Agreement entered with
India Grid Trust on January 8, 2021; b) gain of ` 445.72 crore on sale of entire investment in DA Toll Road Private
Limited a subsidiary of the Parent Company pursuant to Share Purchase Agreement entered with Cube Highways
and Infrastructure III Pte Limited on December 31, 2020; c) gain of ` 551.26 crore on sale of Property Plant and
Equipment and Investment Property Santacruz as a part of settlement with Yes Bank Limited at a transaction value of
` 1,200 crore; d) written off ` 1,009.51 crore trade receivables against the projects which are either completed or on hold
and no further work is to be done; e) gain of ` 82.10 crore arising from fair valuation of Inter Corporate Loan pursuant to
modification of terms of the loan agreement, in the line with Ind AS 109.
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, 2021 was ` 6,491.38 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.
Based on the available facts, the provision made will be adequate to deal with any contingency relating to recovery from the
EPC Company.
The Parent Company has further 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.
212
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
32. COVID 19 continues to spread across the globe and India. It has impacted 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. Most of the activities, viz construction at sites, toll collections, etc. have already commenced
and the scale of operations is getting normalize. 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 all possible impact of COVID 19 in preparation of the financial
result, including assessment of the recoverability of financial and non financial assets based on the various internal and external
information and assumptions relating to economic forecasts up to the date of approval of these financial results for assessing
the recoverability of financial and non financial assets. The aforesaid assessment 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.
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.
(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
- Later than one year and not later than five years
- Later than five years
(ii) Assets taken on Operating Lease:
As at
March 31, 2021
As at
March 31, 2020
` Crore
12.57
0.21
0.22
4.35
7.32
5.46
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 ` 13.11 crore as lease
rental for the financial year 2020-21 (` 4.07 crore for the financial year 2019-20).
34. Disclosure under Ind AS 19 “Employee Benefits”:
Post-employment obligations
Defined contribution plans
The Group has following defined contribution plans:
(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 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.
213
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
Defined benefit plans
(i) Provident Fund (Applicable to certain Employees):
Year ended
March 31, 2021
Year ended
March 31, 2020
` Crore
15.70
2.08
67.23
3.90
17.38
2.28
54.92
3.94
The benefit involving employee established provident funds, which require interest shortfall to be recompensated are to
be considered as defined benefit plans. Any shortfall arising in meeting the stipulated interest liability, if any, gets duly
provided for in the accounts of Provident Fund Trust maintained by the respective Company.
(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
2020-21
` Crore
2019-20
5.18% to 6.50%
5.24% to 7.50%
5.18% to 6.90%
5.45% to 6.80%
3.00% to 11.00% 3.00% to 10.00%
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.
Change in the Present Value Of Defined Benefit Obligation
Present value of Benefit Obligation at the beginning of the year
160.94
136.48
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
(2.55)
0.36
10.71
16.85
(4.11)
(3.65)
(0.30)
0.07
22.67
200.99
132.32
2.69
(2.17)
(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)
214
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Particulars
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
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
Major Categories of plan assets 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
2020-21
8.63
(0.84)
(1.50)
24.25
(0.01)
2.50
165.87
200.99
165.87
(35.12)
-
(35.12)
16.85
1.91
18.76
19.87
0.10
19.97
100%
36.48
12.97
30.59
163.88
163.88
` Crore
2019-20
7.71
(2.75)
(1.44)
23.75
0.27
0.79
132.32
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
0.50% to 1.00%
0.50% to 1.00%
Impact on defined benefit obligation -in % increase
(0.04%) to (5.40%)
(1.95%) to (5.41%)
Impact on defined benefit obligation -in % decrease
0.04% to 6.11%
2.06% to 6.13%
Assumptions - Future Salary Increase:
Sensitivity Level
Impact on defined benefit obligation -in % increase
0.50% to 1.00%
0.50% to 1.00%
0.04% to 5.93%
2.09% to 6.31%
Impact on defined benefit obligation -in % decrease
(0.04%) to (5.38%)
(2.02%) to (5.67%)
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the
Code on Social Security, 2020 on November 13, 2020. The Group will assess the impact once the subject rules are
notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective.
215
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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 ` 29.99 crore (` 30.26 crore) and in case of BYPL ` 10.72 crore (` 16.73 crore) is
lying under provision for retirement of fixed assets.
(b) Transfer Schemes:
(i)
(ii)
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.
Interest is provided at MCLR (Marginal Cost of Fund Based Lending Rate) as notified by SBI prevailing on the
April 01 of respective year on consumer security deposit received from all consumers as per DERC Supply Code
and Performance Standard Regulations, 2017. The MCLR rate as on April 01, 2020 is @ 7.75 % (April 1, 2019
@ 8.55%). Accordingly, BRPL and BYPL have provided for interest amounting ` 69.00 crore (` 72.69 crore) and
` 38.28 crore (` 40.76 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. An application for early hearing of tariff appeals
of 2010 was filed by Delhi Discoms and the same got listed along with Writ on July 17, 2020. The Hon’ble Court
directed the listing of appeal alongwith connected matters in the month of December 2020. As the matters did not
get listed till February 2021, another application has been filed for early hearing in March 2021. The matter was
mentioned before the Hon’ble Supreme Court on April 19, 2021 and the court has directed for listing of application
in July 2021.
216
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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.
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
` 1,159.81 crore (` 789.51 crore) and ` 1,084.59 crore (` 637.89 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 various Tariff Orders from September 29, 2015 to August 28,
2020 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 August 28, 2020, a surcharge of 5% has been allowed w.e.f. September
01, 2020 (earlier 3.80% w.e.f. April 01, 2018 and 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.
217
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
36. The Parent Company has net recoverable amounts aggregating to ` 2,380.78 crore from RPower Group as at March 31,
2021. 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. Project Status:
(a) CBD Tower Private Limited (CBDTPL)
CBDTPL had signed a development agreement dated May 28, 2008 with Telangana State Industrial Infrastructure
Corporation (TSIIC), erstwhile 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 revised proposal to TSIIC to restructure the project in
three categories - financial restructuring (waivers/concession for all project obligations untill signing of amendment
agreement), restructuring of project development framework and restructuring of project implementation. It now awaits
the Proposal to be taken by TSIIC and Government of Telangana for final decision.
(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.
Concerned utilities 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. On hearing held on June 11, 2020, the CERC directed Central Transmission Utility (CTU) to
submit on affidavit as to whether in the current circumstances, the said transmission projects are required or not.
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, 2021
38.
Interests in other entities
(a) Subsidiaries
The Group’s subsidiaries at March 31, 2021 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.
Principal
activities
Place of
business/
country of
incorporation
Name of entity
BSES Rajdhani Power Limited
BSES Yamuna Power Limited
BSES Kerala Power Limited
Reliance Power Transmission Limited
Parbati Koldam Transmission Company
Limited (upto January 08, 2021)
Mumbai Metro One Private Limited
Mumbai Metro Transport Private
Limited
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)
HK Toll Road Private Limited
DA Toll Road Private Limited (upto
December 30, 2020)
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
Power distribution
Power distribution
Power generation
Power transmission
Power transmission
Metro rail concession
Metro rail concession
Metro rail concession
Power generation
Sea link 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
Toll road concession
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
Controlling interest
held by the group
March
March
31, 2020
31, 2021
%
%
51.00
51.00
51.00
51.00
100.00
100.00
100.00
100.00
74.00
-
Non-controlling
interest
March
31, 2021
%
49.00
49.00
-
-
-
March
31, 2020
%
49.00
49.00
-
-
26.00
74.00
48.00
69.00
48.00
26.00
52.00
31.00
52.00
99.95
99.95
0.05
0.05
33.70
33.70
66.30
66.30
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.00
100.00
100.00
-
100.00
100.00
-
-
-
-
-
-
-
26.00
-
-
-
-
-
-
-
-
-
-
26.00
-
-
-
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
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, 2021
Principal
activities
Place of
business/
country of
incorporation
Non-controlling
interest
March
31, 2021
%
March
31, 2020
%
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Name of entity
Reliance Cement Corporation Private
Limited
Utility Infrastructure and Works Private
Limited (Applied for strike off w.e.f.
December 10, 2020)
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
Cement manufacture
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
Reliance Energy Limited
Thales Reliance Defence System
Limited
220
manufacture
Power transmission
Power transmission
Beneficiary Trust
Smart city
construction
Power, generation,
transmission and
distribution
Power generation,
operations &
maintenance of
power stations and
power trading
Defence systems
manufacture
Controlling interest
held by the group
March
March
31, 2020
31, 2021
%
%
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
-
-
-
-
-
-
-
74.00
100.00
26.00
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
India
100.00
100.00
India
51.00
51.00
49.00
49.00
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021 Name of entity
Reliance Global Limited
Reliance Property Developers Private
Limited
Reliance Armaments Limited
Reliance Ammunition Limited
Reliance Velocity Limited
Principal
activities
Engineering and
Construction
Power, generation,
transmission and
distribution
Defence systems
manufacture
Defence systems
manufacture
Urban Transport
Systems
Place of
business/
country of
incorporation
South Korea
Controlling interest
held by the group
March
March
31, 2020
31, 2021
%
%
100.00
100.00
India
100.00
100.00
India
India
India
100.00
100.00
100.00
100.00
100.00
100.00
Non-controlling
interest
March
31, 2021
%
March
31, 2020
%
-
-
-
-
-
-
-
-
-
-
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
BSES Rajdhani Power Limited
March 31, 2021
March 31, 2020
BSES Yamuna Power Limited
March 31, 2021
March 31, 2020
Mumbai Metro One Private Limited
March 31, 2021
March 31, 2020
PS Toll Road Private Limited
March 31, 2021
March 31, 2020
Current
assets
Current
liabilities
Net current
assets/
(liabilities)
Non-current
assets
Non-current
liabilities
Net assets
Net non-
current
assets/
(liabilities)
` Crore
Accumulated
NCI (after
elimination)
1,521.43
11,705.49
(10,184.06)
16,805.46
3,201.43
13,604.02
3,419.96
1,404.03
11,206.71
(9,802.68)
15,049.08
2,539.00
12,510.08
2,707.39
692.74
691.49
9,773.01
9,320.31
(9,080.27)
12,354.46
1,539.34
10,815.12
1,734.85
(8,628.82)
11,460.19
1,493.53
9,966.67
1,337.84
1,675.78
1,326.62
850.08
655.54
7.14
72.42
67.95
55.77
3,263.31
3,050.82
(3,256.17)
(2,978.40)
2,624.14
2,753.31
255.32
242.59
2,368.82
(887.35)
2,510.73
(467.67)
(423.19)
(364.29)
435.64
345.19
(367.69)
(289.42)
3,385.63
1,921.74
1,463.89
1,096.20
3,434.22
1,871.90
1,562.32
1,272.90
4.68
50.63
221
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
ii)
Summarised Statement of Profit and Loss
Entities
BSES Rajdhani Power Limited
March 31, 2021
March 31, 2020
BSES Yamuna Power Limited
March 31, 2021
March 31, 2020
Mumbai Metro One Private Limited
March 31, 2021
March 31, 2020
PS Toll Road Private Limited
March 31, 2021
March 31, 2020
Revenue
Profit / (Loss)
for the year
Other
comprehensive
income
Total
comprehensive
income
Profit / (Loss)
allocated to
NCI
10,621.12
11,127.57
5,737.34
6,078.59
62.42
336.64
293.02
334.63
710.56
261.44
396.38
198.47
(420.40)
(241.57)
(176.51)
(73.92)
2.01
0.96
0.52
0.52
0.71
(0.55)
(0.20)
(0.01)
712.57
262.40
396.90
198.99
(419.69)
(242.13)
(176.70)
(73.93)
349.16
128.58
194.48
97.51
(135.39)
(75.06)
(45.94)
(19.22)
iii) Summarised Statement of Cash flows
` Crore
Dividends
paid to NCI
-
-
-
-
-
-
-
-
` Crore
Entities
BSES Rajdhani Power Limited
March 31, 2021
March 31, 2020
BSES Yamuna Power Limited
March 31, 2021
March 31, 2020
Mumbai Metro One Private Limited
March 31, 2021
March 31, 2020
PS Toll Road Private Limited
March 31, 2021
March 31, 2020
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
(187.85)
599.24
263.43
551.88
3.55
182.69
170.83
250.89
(453.30)
(690.20)
(177.87)
(304.19)
(3.28)
(19.47)
(105.75)
(176.00)
657.56
184.62
(75.23)
(259.71)
(56.93)
(109.15)
(49.64)
(69.80)
16.41
93.66
10.33
(12.02)
(56.66)
54.07
23.44
5.09
(c) Consolidated structured entities
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.
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
222
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
(e) Disclosure of the Company’s share in Joint Controlled Operations:
Name of the Field in the Joint
Venture
Location
Participating Interest
(%) March 31, 2021
Participating Interest
(%)March 31, 2020
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).
The Parent Company’s shares in respect of assets and liabilities and expenditure for the year have been accounted as
under.
` Crore
Particulars
2020-21
2019-20
Rinfra
Astaldi JV
(Metro)
Reliance
Astaldi JV
(VBSL)
Kashedighat
JV
Mizo
Block
CBM
Block
Rinfra
Astaldi JV
(Metro)
Reliance
Astaldi JV
(VBSL)
Kashedighat
JV
Mizo
Block
CBM
Block
Income
Expenses
Non Current Assets
4.75
23.98
92.85
108.23
102.66
97.98
108.05
97.72
1.11
-
-
-
-
-
-
123.20
15.04
114.94
15.04
7.24
6.38
42.68
36.00
1.98
-
-
-
-
-
-
Current Assets
97.46
135.39
23.90
0.24
3.53
115.08
14.99
36.71
0.24
3.53
Non Current Liabilities
68.51
108.51
Current Liabilities
36.90
50.74
0.02
15.46
-
-
-
71.84
2.08
0.01
45.63
19.28
12.27
21.95
-
-
-
0.01
223
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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, 2021
March 31, 2020
^
^
Metro One Operation Private
Limited
Reliance Geo Thermal Power
Private Limited
RPL Sun Technique Private
Limited
India
March 31, 2021
30.00%
March 31, 2020
30.00%
India
March 31, 2021
25.00%
March 31, 2020
25.00%
India
March 31, 2021
50.00%
March 31, 2020
50.00%
RPL Photon Private Limited
India
March 31, 2021
50.00%
March 31, 2020
50.00%
RPL Sun Power Private Limited
India
March 31, 2021
50.00%
Reliance Naval and Engineering
Limited
March 31, 2020
50.00%
India
March 31, 2021
^^
March 31, 2020
25.23%
27.92
Utility Powertech Limited
India
March 31, 2021
19.80%
Gullfoss Enterprises Private
Limited (w.e.f. April 26, 2019)
Total
March 31, 2020
19.80%
India
March 31, 2021
50.01%
March 31, 2020
50.01%
March 31, 2021
March 31, 2020
*
*
*
-
^ upto January 09, 2020
^^ upto April 24, 2020 Refer Note 28
*Note: Unlisted entity- no quoted price available
Reliance Power Limited
^
^
*
*
*
*
*
*
*
*
*
*
-
^
^
2.44
2.46
-
-
-
-
-
-
-
-
-
-
36.79
29.78
-
-
39.23
32.24
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 was 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.
224
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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.
(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) Reconciliation to carrying amounts
Particulars
Opening carrying value
Profit / (Loss) for the year
Other comprehensive income
Stake increased/(decreased) during the year
Closing carrying value
Group’s share in %
Group’s share in `
Including Goodwill
Carrying amount
^ upto January 09, 2020
** upto April 24, 2020 Refer Note 28
Reliance Power Limited
As at ^
March 31, 2021
-
-
-
-
-
^
-
As at
March 31, 2020
5,469.82
36.51
12.03
(5,518.36)
-
^
-
-
-
` Crore
Reliance Naval and
Engineering Limited
As at **
March 31, 2021
-
-
-
-
-
**
-
-
-
As at **
March 31, 2020
-
-
-
-
-
25.23%
-
-
-
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
Share in total comprehensive income
Year ended
March 31, 2021
Year ended
March 31, 2020
` Crore
(0.02)
-
(0.02)
(0.01)
-
(0.01)
` Crore
Year ended
March 31, 2021
Year ended
March 31, 2020
9.91
(1.12)
8.79
6.39
0.74
7.13
225
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
40. Additional Information required by Schedule III
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
Amount
As % of
consolidated
profit or loss
Amount
As % of
consolidated
other
comprehensive
income
Amount
As % of
consolidated
total
comprehensive
income
Amount
112.74%
106.68%
10,375.58
10,447.01
3.58%
133.73%
(19.08)
1,031.27
17.64%
19.00%
0.21
2.94
3.55%
131.47%
(18.87)
1,034.21
2.33%
2.23%
0.43%
0.41%
0.00%
0.00%
0.00%
0.00%
214.12
218.06
0.74%
(3.94)
-19.13%
(147.54)
40.02
40.15
0.03%
0.00%
(0.41)
(0.40)
(0.27)
(0.25)
0.02%
-0.01%
0.02%
-0.01%
(0.15)
(0.02)
(0.08)
(0.07)
(0.09)
(0.07)
0.00%
4.51%
(0.00)
441.23
-8.94%
10.80%
47.59
83.31
-8.98%
-4.15%
(825.96)
(406.27)
78.98%
(420.40)
-31.33%
(241.57)
-
0.00%
0.68%
0.65%
1.76%
1.70%
0.95%
1.49%
4.05%
3.66%
-
0.00
62.56
63.72
161.79
166.19
87.40
145.56
372.52
358.21
-
0.00%
0.22%
0.21%
0.84%
0.43%
-
0.00
(1.17)
1.62
(4.49)
3.30
10.94%
-2.81%
(58.21)
(21.66)
-2.69%
-0.41%
14.33
(3.16)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
25.28%
0.83%
60.09%
-3.58%
-
0.00%
0.65%
1.84%
7.10%
-0.32%
4.91%
-1.66%
0.00%
0.00%
11.91%
13.00%
1,096.20
1,272.90
33.16%
(176.51)
-16.45%
-9.59%
(73.92)
-0.08%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.30
0.13
0.74%
(3.94)
-18.76%
(147.54)
0.03%
0.00%
0.02%
-0.01%
0.02%
-0.01%
(0.15)
(0.02)
(0.08)
(0.07)
(0.09)
(0.07)
-9.02%
10.61%
47.89
83.44
0.72
(0.55)
79.02%
(419.69)
-30.78%
(242.13)
-
0.00
0.01
0.29
0.08
(0.05)
0.06
(0.26)
0.00
0.00
(0.20)
(0.01)
-
0.00%
0.22%
0.24%
0.83%
0.41%
-
0.00
(1.16)
1.90
(4.40)
3.25
10.95%
-2.79%
(58.15)
(21.92)
-2.70%
-0.40%
14.33
(3.16)
33.27%
(176.70)
-9.40%
(73.93)
Name of the entity in the group
Parent
Reliance Infrastructure Limited
March 31, 2021
March 31, 2020
Subsidiaries (group's share)
Indian
BSES Kerala Power Limited
March 31, 2021
March 31, 2020
Reliance Power Transmission Limited
March 31, 2021
March 31, 2020
North Karanpura Transmission Company
Limited
March 31, 2021
March 31, 2020
Talcher II Transmission Company Limited
March 31, 2021
March 31, 2020
Parbati Koldam Transmission Company
Limited
March 31, 2021
March 31, 2020
Mumbai Metro One Private Limited
March 31, 2021
March 31, 2020
Reliance Sea Link One Private Limited
March 31, 2021
March 31, 2020
DS Toll Road Limited
March 31, 2021
March 31, 2020
NK Toll Road Limited
March 31, 2021
March 31, 2020
GF Toll Road Private Limited
March 31, 2021
March 31, 2020
KM Toll Road Private Limited
March 31, 2021
March 31, 2020
PS Toll Road Private Limited
March 31, 2021
March 31, 2020
226
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Name of the entity in the group
DA Toll Road Private Limited
March 31, 2021
March 31, 2020
HK Toll Road Private Limited
March 31, 2021
March 31, 2020
TK Toll Road Private Limited
March 31, 2021
March 31, 2020
TD Toll Road Private Limited
March 31, 2021
March 31, 2020
SU Toll Road Private Limited
March 31, 2021
March 31, 2020
JR Toll Road Private Limited
March 31, 2021
March 31, 2020
Reliance Energy Trading Limited
March 31, 2021
March 31, 2020
CBD Tower Private Limited
March 31, 2021
March 31, 2020
Utility Infrastructure & Works Private
Limited
March 31, 2021
March 31, 2020
Reliance Airport Developers Limited
March 31, 2021
March 31, 2020
Baramati Airport Limited
March 31, 2021
March 31, 2020
Latur Airport Limited
March 31, 2021
March 31, 2020
Nanded Airport Limited
March 31, 2021
March 31, 2020
Osmanabad Airport Limited
March 31, 2021
March 31, 2020
Yavatmal Airport Limited
March 31, 2021
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
As % of
consolidated
net assets
Amount
As % of
consolidated
profit or loss
Amount
As % of
consolidated
other
comprehensive
income
Amount
As % of
consolidated
total
comprehensive
income
Amount
60.75
114.68
10.15%
-2.65%
0.00%
8.11%
1.01%
1.93%
3.05%
3.18%
0.25%
0.66%
0.66%
1.17%
0.02%
0.43%
0.08%
0.08%
2.03%
1.91%
0.00%
0.04%
0.77%
0.72%
0.16%
0.15%
0.03%
0.03%
0.00
794.19
92.81
188.91
280.79
311.10
22.77
64.19
1.60
42.51
7.71
7.71
186.55
186.55
0.00
3.66
70.78
70.78
14.29
14.54
3.06
3.23
-0.14%
-0.12%
(13.19)
(11.64)
0.06%
0.06%
0.01%
0.01%
5.54
5.62
0.99
1.08
22.46%
(119.56)
-4.76%
(36.71)
18.04%
-7.41%
5.70%
-2.58%
7.78%
-1.94%
7.66%
-2.75%
0.00%
-0.04%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.05%
-0.03%
0.03%
0.03%
0.29%
0.21%
0.02%
0.03%
0.02%
0.04%
(96.02)
(57.14)
(30.32)
(19.86)
(41.42)
(14.95)
(54.04)
(20.44)
(40.80)
(21.17)
(0.00)
(0.31)
0.00
0.00
0.00
(0.00)
(0.00)
(0.04)
(0.25)
(0.24)
(0.18)
(0.18)
(1.55)
(1.12)
(0.08)
(0.13)
(0.09)
(0.19)
0.00%
-2.77%
-6.93%
1.62%
1.07%
-0.23%
-0.75%
-0.13%
9.64%
-0.37%
-9.32%
-0.44%
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
(0.43)
(0.08)
0.25
0.01
(0.04)
(0.01)
(0.02)
0.11
(0.06)
(0.11)
(0.07)
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
22.51%
(119.56)
-4.72%
(37.14)
18.09%
-7.23%
5.71%
-2.53%
7.80%
-1.90%
10.15%
-2.61%
7.70%
-2.70%
0.00%
-0.04%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.05%
0.04%
0.03%
0.03%
0.29%
0.21%
0.02%
0.03%
0.02%
0.04%
(96.10)
(56.89)
(30.31)
(19.89)
(41.43)
(14.97)
(53.93)
(20.50)
(40.91)
(21.24)
(0.00)
(0.31)
0.00
0.00
0.00
(0.00)
(0.00)
(0.04)
(0.25)
(0.24)
(0.18)
(0.18)
(1.55)
(1.12)
(0.08)
(0.13)
(0.09)
(0.19)
227
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
Amount
As % of
consolidated
profit or loss
Amount
As % of
consolidated
other
comprehensive
income
Amount
As % of
consolidated
total
comprehensive
income
Amount
Reliance Cement Corporation Private
Limited
March 31, 2021
March 31, 2020
Reliance Defence Systems Private Limited
March 31, 2021
March 31, 2020
Reliance Defence Technologies Private
Limited
March 31, 2021
March 31, 2020
Reliance Defence & Aerospace Private
Limited
March 31, 2021
March 31, 2020
Reliance Defence Limited
March 31, 2021
March 31, 2020
Reliance Defence Infrastructure Ltd.
March 31, 2021
March 31, 2020
Reliance SED Ltd
March 31, 2021
March 31, 2020
Reliance Propulsion System Limited
March 31, 2021
March 31, 2020
Reliance Defence Systems & Tech Limited
March 31, 2021
March 31, 2020
Reliance Helicopters Ltd
March 31, 2021
March 31, 2020
Reliance Land Systems Ltd
March 31, 2021
March 31, 2020
Reliance Naval Systems Ltd
March 31, 2021
March 31, 2020
Reliance Unmanned Systems Ltd
March 31, 2021
March 31, 2020
Reliance Aerostructure Ltd
March 31, 2021
March 31, 2020
Reliance Cruise and Terminals Limited
March 31, 2021
March 31, 2020
228
0.00%
0.00%
0.00%
0.07%
0.00%
0.00%
0.00%
0.00%
0.03%
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%
-0.07%
-0.03%
0.00%
0.00%
(0.00)
0.00
0.15
6.48
(0.02)
(0.01)
(0.05)
(0.05)
3.13
1.45
0.03
0.03
0.03
0.03
0.03
0.03
(0.17)
(0.17)
0.02
0.03
0.01
0.01
0.02
0.03
0.03
0.03
(6.37)
(3.28)
0.03
0.03
0.00%
0.00%
-3.92%
0.86%
0.00%
0.00%
0.00%
0.00%
0.84%
-0.84%
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%
0.58%
-0.08%
0.00%
0.00%
(0.00)
(0.00)
20.89
6.65
(0.00)
(0.00)
(0.00)
(0.00)
(4.46)
(6.50)
(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)
(3.09)
(0.60)
(0.00)
(0.00)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.75%
0.33%
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
0.03
0.05
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%
-3.93%
0.85%
0.00%
0.00%
0.00%
0.00%
0.83%
-0.82%
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%
0.58%
-0.08%
0.00%
0.00%
(0.00)
(0.00)
20.89
6.65
(0.00)
(0.00)
(0.00)
(0.00)
(4.43)
(6.45)
(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)
(3.09)
(0.60)
(0.00)
(0.00)
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
Amount
As % of
consolidated
profit or loss
Amount
As % of
consolidated
other
comprehensive
income
Amount
As % of
consolidated
total
comprehensive
income
Amount
0.02%
-3.47%
(0.08)
(26.76)
6.72%
-0.45%
0.08
(0.07)
0.00%
-3.41%
(0.00)
(26.83)
Dassault Reliance Aerospace Limited
March 31, 2021
March 31, 2020
Reliance Aero Systems Private Limited
March 31, 2021
March 31, 2020
Reliance Smart Cities Limited
March 31, 2021
March 31, 2020
Reliance E-Generation and Management
Private Limited
March 31, 2021
March 31, 2020
Reliance Energy Limited
March 31, 2021
March 31, 2020
BSES Rajdhani Power Limited
March 31, 2021
March 31, 2020
BSES Yamuna Power Limited
March 31, 2021
March 31, 2020
Tamil Nadu Industries Captive Power
Company Limited
March 31, 2021
March 31, 2020
Delhi Airport Metro Express Private
Limited
March 31, 2021
March 31, 2020
Mumbai Metro Transport Private Limited
March 31, 2021
March 31, 2020
Reliance Property Developers Private
Limited
March 31, 2021
March 31, 2020
Reliance Armaments Limited
March 31, 2021
March 31, 2020
Reliance Ammunition Limited
March 31, 2021
March 31, 2020
Reliance Velocity Limited
March 31, 2021
March 31, 2020
Reliance Delhi Metro Trust
March 31, 2021
March 31, 2020
0.22%
0.22%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
20.12
21.62
(0.01)
(0.00)
0.03
0.03
(0.00)
(0.00)
0.03
0.03
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
30.98%
21.24%
2,851.07
-144.52%
2,079.71
40.14%
17.06%
11.83%
1,570.30
1,158.74
-77.20%
28.31%
-0.01%
-0.01%
(0.73)
(0.73)
0.00%
0.00%
0.12%
0.16%
0.00%
0.00%
0.00%
0.00%
-0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
11.42
15.72
0.35
0.40
(0.00)
0.00
(0.48)
0.04
0.03
0.03
0.01
0.01
0.81%
-0.76%
0.01%
0.00%
0.00%
0.00%
0.10%
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)
769.30
309.51
410.93
218.35
(0.00)
(0.00)
(4.31)
(5.88)
(0.05)
(0.02)
(0.00)
(0.00)
(0.52)
(0.00)
(0.00)
(0.01)
(0.00)
(0.11)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
168.84%
6.20%
53.04%
3.39%
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
2.01
0.96
0.63
0.52
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%
-145.23%
39.47%
-77.49%
27.82%
0.00%
0.00%
0.81%
-0.75%
0.01%
0.00%
0.00%
0.00%
0.10%
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)
771.31
310.47
411.56
218.88
(0.00)
(0.00)
(4.31)
(5.88)
(0.05)
(0.02)
(0.00)
(0.00)
(0.52)
(0.00)
(0.00)
(0.01)
(0.00)
(0.11)
-
-
-
-
0.00%
0.00
0.00%
0.00
229
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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
Amount
As % of
consolidated
profit or loss
Amount
As % of
consolidated
other
comprehensive
income
Amount
As % of
consolidated
total
comprehensive
income
Amount
Thales Reliance Defence System Limited
March 31, 2021
March 31, 2020
Reliance Global Limited
March 31, 2021
March 31, 2020
Non-controlling interests in all
subsidiaries
March 31, 2021
March 31, 2020
Associates
(Investment as per equity method)
Indian
Reliance Power Limited
March 31, 2021
March 31, 2020
Metro One Operation Private Limited
March 31, 2021
March 31, 2020
Reliance Geo Thermal Power Private
Limited
March 31, 2021
March 31, 2020
RPL Sun Technique Private Limited
March 31, 2021
March 31, 2020
RPL Photon Private Limited
March 31, 2021
March 31, 2020
RPL Sun Power Private Limited
March 31, 2021
March 31, 2020
Gullfoss Enterprises Private Limited
March 31, 2021
March 31, 2020
Joint ventures
(Investment as per equity method)
Indian
Utility Powertech Limited
March 31, 2021
March 31, 2020
Inter Co. Elimination/Adjustments arising
out of consolidation
March 31, 2021
March 31, 2020
Total
March 31, 2021
March 31, 2020
230
0.58%
0.19%
0.00%
0.00%
53.46
18.39
0.00
0.04
-6.59%
-0.54%
0.00%
0.00%
35.08
(4.18)
(0.00)
(0.02)
-0.50%
0.00%
0.00%
0.00%
(0.01)
0.00
0.00
0.00
-6.60%
-0.53%
0.00%
0.00%
35.07
(4.18)
(0.00)
(0.02)
-23.71%
(2,182.18)
-18.68%
(1,829.44)
74.74%
-17.80%
(397.86)
(137.27)
-129.70%
-3.54%
(1.54)
(0.55)
75.20%
-17.52%
(399.40)
(137.81)
-
0.46%
0.03%
0.03%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
-
-
-
44.79
-6.85%
36.47
1010.36%
2.44
2.46
0.00%
0.00%
(0.02)
(0.01)
0.00%
0.00%
-
12.03
0.00
0.00
-
-
-9.13%
48.50
0.00%
0.00%
(0.02)
(0.01)
-
-
-
-
-
-
-
-
0.00
-
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
-
-
-
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
0.01
0.40%
0.30%
36.79
29.77
-1.86%
-1.20%
9.91
6.39
-94.92%
62.37%
(1.13)
0.74
-1.65%
-1.34%
8.78
7.13
-59.49%
(5,474.62)
67.90%
(361.45)
-64.30%
(6,297.03)
-10.86%
(83.77)
100%
100%
9202.89
9,792.37
100%
100%
(532.30)
771.17
0.00%
0.00%
100%
100%
0.00
0.00
1.19
15.48
68.05%
(361.45)
-10.65%
(83.77)
100%
100%
(531.11)
786.65
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
40. Fair Value Measurement and Financial Risk Management
(A)
Fair Value Measurement
(a)
Financial Instruments by category
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)
Interest Payable Others
Trade payables
Other payable
Deposits from consumers
Deposits from Others
NHAI premium payable
Creditors for Capital Expenditure
Lease Liabilities
As at March 31, 2021
As at March 31, 2020
FVTPL
FVOCI
Amortised
cost
FVTPL
FVOCI
Amortised
cost
` Crore
76.24
678.62
1,653.08
0.99
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48.51
678.62
- 1,313.21
-
0.93
3,718.93
5,214.24
37.94
3.52
821.49
1,824.68
28.24
20.56
293.01
226.16
1,586.39
632.18
293.69
45.50
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,005.17
5,250.78
34.54
7.82
763.13
1,608.29
29.12
28.91
376.21
160.62
1,463.90
709.61
750.57
39.68
2,408.93
-
14,746.33 2,041.28
-
16,228.21
-
-
-
-
-
-
-
-
-
-
15,479.94
59.15
19,891.07
193.31
1,433.91
216.42
2,579.18
654.01
77.18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,413.91
-
-
-
-
-
-
-
-
-
-
-
-
-
20,121.44
178.93
1,410.07
229.07
2,479.23
672.19
81.59
-
-
14.18
43,600.61
231
Financial guarantee obligation
200.54
Derivative Financial Liability
Unpaid dividends
-
-
-
-
12.25
123.86
1.81
-
Total Financial Liabilities
200.54
-
40,596.42
125.67
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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, 2021
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
-
72.51
0.99
-
-
-
-
-
-
-
-
-
3.73
-
-
3.73
72.51
0.99
678.62
678.62
1,653.08
1,653.08
200.54
200.54
Assets and liabilities for which fair values are disclosed as
at March 31, 2021
Level 1
Level 2
Level 3
Total
Financial Liabilities
Borrowings (including finance lease obligation and interest)
15,479.94 15,479.94
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
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, 2020
Non-financial assets
Investment property
Investments in equity instruments of associates
Reliance Naval and Engineering Limited
Financial Liabilities
Level 1
Level 2
Level 3
` Crore
Total
-
-
-
-
-
-
3.73
-
3.73
44.78
678.62
678.62
1,313.21
1,313.21
-
0.93
123.86
123.86
-
44.78
-
-
0.93
-
-
1.81
-
Level 1
Level 2
Level 3
1.81
Total
-
27.92
-
-
531.00
531.00
-
27.92
Borrowings (including finance lease obligation and interest)
-
- 18,267.93 18,267.93
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.
232
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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, 2019
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, 2020
Financial Assets purchased during the year
Other fair value gains(losses) recognised in Consolidated
Statement of Profit and Loss (unrealised)
Financial Assets
Financial Liabilities
` Crore
1,833.88
161.68
-
-
1,995.56
493.08
(153.21)
22.90
100.96
-
-
123.86
-
(76.68)
As at March 31, 2021
2,335.43
200.54
(e) Fair value of financial assets and liabilities measured at amortised cost
Particulars
As at March 31, 2021
As at March 31, 2020
` Crore
Financial liabilities
Borrowings (including finance lease
obligations and interest accrued thereon)
Carrying
amount
Fair value
Carrying
amount
Fair
value
15,479.94
15,479.94
18,413.91
18,267.93
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.
233
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(f)
Valuation Inputs and relationship to fair value
Particulars
Fair Value as at
March 31, 2021 March 31, 2020
Valuation
Techniques
Equity Instruments
3.73
Preference Shares
678.62
Debentures
1,653.08
3.73 Earnings/EBIDTA
Multiple Method
678.62 Discounted Cash
Flow
1,313.21 Discounted Cash
Flow
Financial Guarantee
Obligation
200.54
123.86 Credit Default Swap
(CDS)
Significant
unobservable inputs
and range
Earning growth Factor
7% to 9%
Discount rate: 11% to
13%
Discount rate: 11% to
13%
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.
234
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Year ended March 31, 2021:
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
37.94
0%
NIL
37.94
Rating 1
4,717.40
3%
143.03
4,574.37
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
9,043.38
42% 3,829.14
5,214.24
Year ended March 31, 2020:
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
34.94
0%
NIL
34.54
Rating 1
4,412.59
3%
144.03
4,269.56
Rating 2 / 3
9,079.88
42% 3,829.14
5,250.74
(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, 2019
Changes in loss allowance
Loss allowance as at March 31, 2020
Changes in loss allowance
Loss allowance as at March 31, 2021
` Crore
Lifetime expected credit losses
measured using simplified approach
351.61
(77.37)
274.24
23.11
297.35
(iv) Reconciliation of loss allowance provision - Other than trade receivables, retentions on contract under general model
approach
Reconciliation of loss allowance
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
Add / (Less): Changes in loss allowances due to assets originated or purchased (Net)
Loss allowance as at March 31, 2021
` Crore
Loss allowance measured at
12 month expected losses
3,977.11
(4.94)
3,972.17
-
3,972.17
235
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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, 2021
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, 2020
Non-derivatives
Borrowings*
Trade payables (Including Retention payable)
Security and other deposits
Financial guarantee obligation
NHAI Premium Payable
Creditors for Capital Expenditure
Lease Liability
Other Financial Liability
Total non-derivative liabilities
Derivatives (not settled)
Forward Contract
Less than
1 year
More than
1 year
9,066.94
19,872.91
-
1,640.67
373.17
654.01
14.10
205.56
31,827.36
6,788.04
18.16
200.54
9.66
4,811.30
-
63.08
-
11,890.78
-
-
Less than
1 year
More than
1 year
` Crore
Total
15,854.98
19,891.07
200.54
1,650.33
5,184.47
654.01
77.18
205.56
43,718.14
-
Total
7,016.26
20,096.18
1,629.70
-
251.85
672.19
13.98
193.11
29,873.27
15,246.42
25.26
9.53
123.86
5,075.74
-
67.61
-
20,548.42
22,262.68
20,121.44
1,639.23
123.86
5,327.59
672.19
81.59
193.11
50,421.69
-
1.81
1.81
*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.
236
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
Foreign exchange forward contracts are taken to manage such risk.
Particulars
Financial assets
Investment in preference shares
Trade Receivable
Advance to Vendors
Bank balance in EEFC accounts $ USD 4,457 @
Euro 10.10
Exposure to foreign currency risk (assets)
Financial liabilities
Borrowing
Trade payables
Advance from customer
Other payable payables
Exposure to foreign currency risk (liabilities)
As at March 31, 2021
EUR
In Crore
USD
In Crore
As at March 31, 2020
USD
In Crore
EUR
In Crore
9.81
29.25
1.53
-
40.59
10.06
2.65
0.82
2.57
16.10
-
1.34
0.03
-
1.37
2.26
2.64
-
0.99
5.89
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
The outstanding SEK denominated balance being insignificant has not been considered.
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%*
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, 2021 March 31, 2020
59.03
(59.03)
(21.78)
21.78
107.43
(107.43)
(21.85)
21.85
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, 2021 and March 31, 2020, 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
As at
March 31, 2021
10,894.99
2,935.04
13,830.03
` Crore
As at
March 31, 2020
15,680.39
1,522.24
17,202.63
As at the end of the reporting period, the Company had the following variable rate borrowings outstanding:
Particulars
March 31, 2021
March 31, 2020
Weighted
average
interest rate
Balance
(` Crore)
% of total
loans
Weighted
average
interest rate
Balance
(` Crore)
% of total
loans
Borrowings
11.87% 10,894.99
78.78%
11.36% 15,680.39
91.15%
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.
237
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
(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, 2021 March 31, 2020
(108.95)
21.79
(156.80)
31.36
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%
41. Capital Management
` Crore
Impact on other components of equity
March 31, 2020
4.94
(4.94)
March 31, 2021
7.72
(7.72)
(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
The Parent Company has not declared dividends for the year ended March 31, 2020 and March 31, 2021.
As per our attached Report of even date
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No: 101720W/W100355
For and on behalf of the Board
DIN – 00004878
Anil D Ambani
DIN - 00004631
S Seth
DIN – 00169907
S S Kohli
DIN - 00119753
K Ravikumar
DIN – 00116930
Ryna Karani
Manjari Kacker DIN - 06945359
Chairman
Vice Chairman
Directors
Parag D. Mehta
Partner
Membership No. 113904
Place : Mumbai
Date : May 28, 2021
238
Punit Garg
Pinkesh Shah
Paresh Rathod
Place : Mumbai
Date : May 28, 2021
Executive Director and Chief Executive Officer
Chief Financial Officer
Company Secretary
Reliance Infrastructure LimitedNotes to the consolidated financial statements as at and for the year ended March 31, 2021
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, 2021
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]
I
Sr.
No.
Particulars
1
2
3
4
5
6
7
8
Turnover / Total income including regulatory 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
(` in Crore)
(as reported before
adjusting for
qualifications)
Audited Figures
(` in Crore) (audited
figures after adjusting
for qualifications)
quoted in II (a)(2)
20,106.03
20,638.33
(532.30)
(20.24)
62,163.41
52,960.52
9,049.36
9,202.89
20,106.03
20,638.33
(532.30)
(20.24)
62,163.41
52,960.52
3,737.34
9,202.89
1. We refer to Note 6 to the consolidated financial results regarding the Holding Company has exposure in an EPC
Company as on March 31, 2021 aggregating to ` 6,491.38 crore (net of provision of ` 3,972.17 crore and
amount written off during the year of ` 1,009.51 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 therefrom in the
consolidated financial results.
2. We refer to Note 14 of the consolidated financial results wherein the loss on invocation of shares and/or fair
valuation of shares of investments held in Reliance Power Limited (RPower) aggregating to ` 2,105.84 crore and
` 5,312.02 crore for the quarter and year ended March 31, 2020 was adjusted against the capital reserve/ capital
reseve on consolidation as against charging the same in the Statement of Profit and Loss. The said treatment of loss
on invocation and fair valuation of investments was not in accordance with the Ind AS 28 “Investment in Associates
and Joint Venture”, Ind AS 1 “Presentation of Financial Statements” and Ind AS 109 “Financial Instruments”. Had
the Company followed the above Ind AS’s the profit before tax for the quarter and year ended March 31, 2020
would have been lower by ` 2105.84crore and ` 5,312.02crore respectively and Net Worth of the Company as
at March 31, 2020 and March 31, 2021 would have been lower by ` 5,312.02crore.
b.
c.
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.
Item II(a)(1) Since year ended March 31,
2019
2.
Item II(a)(2) – Since year ended March 31,
2020
239
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 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.
Further, due to above said invocation, during the year ended March 31, 2020, 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.
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 the Consolidated Financial Results, as below:
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, 2021 is ` 6,491.38 crore (net of provision of ` 3,972.17 crore). 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. Based on the available facts, the provision made will be adequate to deal
with any contingency relating to recovery from the EPC Company.
The Parent Company has further 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
Pinkesh Shah
Manjari Kacker #
(Executive Director and Chief Executive Officer)
(Chief Financial Officer)
(Audit Committee Chairman)
Statutory Auditors
For Chaturvedi & Shah LLP
Chartered Accountants
Firm Registration No:101720W /W100355
Parag D Mehta #
Partner
Membership No. 113904
UDIN: 21113904AAAABL6768
Place: Mumbai
Date: May 28, 2021
# Present in the meeting through audio visual means
240
Reliance Infrastructure Limited
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Reliance Infrastructure Limited
NOTES
244
Reliance Infrastructure Limited
NOTES
245
Reliance Infrastructure Limited
NOTES
246
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