REG - Reliance Infra Ld - Annual Financial Report
22/06/2022 13:45
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RNS Number : 8344P Reliance Infrastructure Limited 22 June 2022
RELIANCE INFRASTRUCTURE LIMITED
Registered Office: Reliance Center, Ground Floor, 19, Walchand Hiranchand
Marg, Ballard Estate, Mumbai 400 001
website:www.rinfra.com CIN : L75100MH1929PLC001530
Statement of Audited Standalone Financial Results for the Financial Year Ended
March 31, 2022
( Rs Crore)
Sr. No. Particulars Quarter ended Year ended
31-Mar-22 31-Dec-21 31-Mar-21 31-Mar-22 31-Mar-21
Refer note 15 Unaudited Refer note 15 Audited Audited
1 Income from Operations 436.06 320.21 776.87 1,467.37 1,689.15
2 Other Income (net) 202.62 39.36 368.45 505.84 833.02
Total Income 638.68 359.57 1,145.32 1,973.21 2,522.17
3 Expenses
(a) Construction Materials Consumed 411.57 279.07 689.08 1,310.75 1,384.13
and Sub-contracting Charges
(b) Employee Benefits Expense 23.89 22.93 16.23 83.69 78.33
(c) Finance Costs 168.34 154.96 381.61 654.62 1,193.23
(d) Depreciation/Amortisation and Impairment Expense 12.89 9.71 14.46 41.96 59.24
(e) Other Expenses 90.55 85.39 55.26 246.15 272.32
Total Expenses 707.24 552.06 1,156.64 2,337.17 2,987.25
4 Profit/(loss) before Exceptional Items and Tax (1+2-3) (68.56) (192.49) (11.32) (363.96) (465.08)
5 Exceptional Items (Net) - - 121.59 - 353.56
6 Profit /(Loss) before tax (4+5) (68.56) (192.49) 110.27 (363.96) (111.52)
7 Tax Expenses
- Current Tax 1.36 0.57 0.65 2.94 1.44
- Deferred Tax (net) - - (18.35) (0.05) (93.88)
- Tax adjustment for earlier years (net) - 0.21 - 1.44 -
1.36 0.78 (17.70) 4.33 (92.44)
8 Net Profit/(Loss) for the period/year (6-7) (69.92) (193.27) 127.97 (368.29) (19.08)
9 Other Comprehensive Income
Items that will not be reclassified to Profit and Loss
Remeasurement of net defined benefit plans - (gain)/loss 0.91 - 1.28 0.91 (0.21)
(0.91) - (1.28) (0.91) 0.21
10 Total Comprehensive Income/(Loss) (8+9) (70.83) (193.27) 126.69 (369.20) (18.87)
11 Paid-up Equity Share Capital 263.03 263.03
(Face value of Rs 10 per share)
12 Other Equity 9,877.52 10,112.55
13 Earnings Per Share (* not annualised)
(Face value of Rs 10 per share)
(a) Basic and Diluted Earnings per Share (in Rs ) (2.69)* (7.35)* 4.87* (14.00)* (0.73)
(b) Basic and Diluted Earnings per Share (in Rs ) (2.69)* (7.35)* 5.33* (14.00)* (2.69)
(Before adjustment to General Reserve- Refer Note 14)
(c) Basic and Diluted Earnings per Share (in Rs ) (2.69)* (7.35)* 4.87* (14.00)* (0.73)
(After adjustment to General Reserve- Refer Note 14)
RELIANCE INFRASTRUCTURE LIMITED
Standalone Statement of Assets and Liabilities
( Rs Crore)
Particulars As at As at
31-Mar-22 31-Mar-21
Audited Audited
ASSETS
Non-Current Assets
Property, Plant and Equipment 324.91 379.57
Capital Work-in-progress 11.42 16.53
Other Intangible Assets 0.03 0.04
Financial Assets
Investments 8,432.81 7,655.21
Trade Receivables 11.51 86.37
Other Financial Assets 9.71 39.36
Other Non - Current Assets - 5.92
Total Non-Current Assets 8,790.39 8,183.00
Current Assets
Inventories 3.50 3.65
Financial Assets
Investments 1.77 -
Trade Receivables 2,916.09 2,848.35
Cash and Cash Equivalents 69.22 56.44
Bank Balance other than Cash and Cash Equivalents above 88.91 73.44
Loans 5,167.43 5,724.58
Other Financial Assets 1,936.08 2,125.84
Other Current Assets 520.90 1,183.81
Total Current Assets Total Current Assets 10,703.90 12,016.11
Non Current Assets Held for sale and Discontinued Operations 544.94 544.94
Total Assets 20,039.23 20,744.05
Equity and Liabilities
EQUITY
Equity Share Capital 263.03 263.03
Other Equity 9,877.52 10,112.55
Total Equity 10,140.55 10,375.58
LIABILITIES
Non-Current Liabilities
Financial Liabilities
Borrowings 120.35 115.94
Trade Payables
- Total outstanding dues to Micro and Small Enterprises - -
- Total outstanding dues to Others 15.49 18.16
Other Financial Liabilities 313.78 212.55
Provisions 160.00 160.00
Deferred Tax Liabilities (Net) - 0.05
Other Non - Current Liabilities 1,237.13 1,364.72
Total Non-Current Liabilities 1,846.75 1,871.42
Current Liabilities
Financial Liabilities
Borrowings 3,722.58 3,692.15
Trade Payables
- Total outstanding dues to Micro and Small Enterprises 12.33 11.88
- Total outstanding dues to Others 1,564.11 1,538.48
Other Financial Liabilities 827.84 499.04
Other Current Liabilities 1,457.07 2,312.11
Provisions - 0.52
Current Tax Liabilities (Net) 468.00 442.87
Total Current Liabilities 8,051.93 8,497.05
Total Equity and Liabilities 20,039.23 20,744.05
Notes:
1. The Standalone Financial Results of Reliance Infrastructure Limited
("the Company") for the quarter and year ended March 31, 2022 have been
prepared in accordance with Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 and the Companies
(Indian Accounting Standards) (Amendment) Rules, 2016.
2. COVID-19 pandemic had impacted businesses across the globe and
India causing significant disturbance and slowdown of economic activities. The
Company has considered all possible impact of COVID-19 in preparation of the
standalone financial results, 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.
3. The Company at its Board Meeting dated September 25, 2021 has
approved issue of unsecured foreign currency convertible bonds (FCCBs) upto
U.S.$ 100 million maturing at the end of 10 years and 1 day from the issue
date or the date of the FCCBs being fully paid up, whichever is later, with
a coupon rate of 4.5% p.a. on private placement basis. The FCCBs shall be
convertible into approximately 6.64 crore equity shares of Rs.10 each of the
Company in accordance with the terms of the FCCBs, at a price of Rs. 111
(including a premium of Rs. 101) per equity share.
4. The Company has outstanding obligations payable to lenders and in
respect of loan arrangements of certain entities including
subsidiaries/associates where the Company is also a guarantor where certain
amounts have also fallen due. The Company has repaid substantial debt during
the previous financial year vis a vis certain debts repayment in the current
financial year and is confident of meeting balance obligations by way of time
bound monetisation of its assets and receipt of various claims including
receivable from DAMEPL and accordingly, notwithstanding the dependence on
these material uncertain events, the Company continues to prepare the
Standalone Financial Results on a 'Going Concern' basis.
5. Hon'ble Supreme Court on September 9, 2021 upheld the arbitral
award in favour of Delhi Airport Metro Express Private Limited (DAMEPL), a
subsidiary of the Company, in the matter of the dispute between DAMEPL and
Delhi Metro Rail Corporation Limited (DMRC), arising due to the termination of
the Concession Agreement for Delhi Airport Metro Express Line Project by
DAMEPL. DMRC was consequently directed to pay termination payment and other
compensation, totaling to Rs. 2,945 crore plus pre-award and post-award
interest up to the date of payment to DAMEPL. DAMEPL had filed execution
petition dated September 10, 2021 before Hon'ble Delhi High Court seeking
execution of the Award against DMRC.
DMRC had deposited Rs.1,000 crore on December 8, 2021, Rs. 600 crore on
February 23, 2022 and Rs. 166.44 crore on March 14, 2022, in the escrow
account of DAMEPL, as per Hon'ble Delhi High Court's interim orders from time
to time. DAMEPL has utilised the amount for its debt repayments. Hon'ble High
Court of Delhi on March 10, 2022, in its Final Order, directed DMRC to make
payment of Rs. 824.10 crore within two weeks' time and the remaining amount in
two equal instalments on or before April 30, 2022 and May 31, 2022
respectively.
Being aggrieved by a particular paragraph of the judgment dated March 10,
2022, DAMEPL filed a Special Leave Petition before Hon'ble Supreme Court,
limited to the issue of interest on pre-award interest, which was dismissed on
May 5, 2022. DAMEPL is evaluating the judgment and contemplates to go for
review against the judgment and will be filing suitable proceedings for speedy
realization of the sums receivable.
6. With respect to Company's wholly owned subsidiaries engaged in road
projects:
a. The Company has exposure aggregating to Rs. 2,954.24 crore in
its nine subsidiaries (road SPVs) as at March 31, 2022. Management has
recently performed an impairment assessment against these exposures, by
considering inter-alia the valuations of the underlying subsidiaries carried
out by independent external valuation expert. The Company is confident of
recovering its entire investment in road SPVs. Accordingly, based on the
assessment and external valuation report, impairment of said exposure is not
considered.
b. KM Toll Road Private Limited (KMTR), a subsidiary of the
Company and part of road SPVs referred above, 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 (Agreement) by
NHAI. The operations of the Project have been taken over by NHAI. In terms of
the provisions of the Agreement, NHAI is liable to pay KMTR a termination
payment as the termination has arisen owing to NHAI Event of Default and its
has also raised further claims towards damages for the breaches of NHAI as per
the Agreement. KMTR has invoked dispute resolution process under clause 44 of
the Agreement. Subsequently on August 24, 2020 NHAI has release Rs.181.21
crore towards termination payment, which was utilized toward debt servicing.
As a part of the dispute resolution, KMTR has invoked arbitration and it is
confident of fair outcome. KMTR filed its statement of claims before Arbitral
Tribunal claiming termination payment Rs. 866.14 crore as the termination has
arisen owing to NHAI's Event of Default (This amount is arrived at after
adjusting the amount of aforementioned payment received from NHAI). KMTR has
also filed further claims of Rs. 981.63 Crore towards damages for the breaches
of NHAI as per the Agreement. 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 material uncertain events, KMTR
continues to prepare its financial results on a Going Concern basis. The
Company is confident of recovering its entire investment in KMTR of Rs. 544.94
crore as at March 31, 2022, and hence, no provision for impairment of the KMTR
is considered in the financial results. The Investments 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".
7. The listed non-convertible debentures of Rs. 1,064.29 crore as on
March 31, 2022 are secured by way of first pari-passu charge on certain fixed
assets and investments. There are certain shortfalls in the security cover.
8. The Company has net receivables aggregating to Rs. 1,677 crore from
Reliance Power Group as at March 31, 2022. Management has recently performed
an impairment assessment of these receivables by considering inter-alia the
valuations of the underlying subsidiaries of Reliance Power which are based on
their value in use (considering discounted cash flows) and valuations of other
assets of Reliance Power/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 receivables are not considered necessary by the Management.
9. 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 at March 31, 2022 is
Rs 6,526.82 crore (net of provision of Rs. 3,972.17 crore). The Company has
also provided corporate guarantees aggregating of Rs. 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 Rs.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.
10. Disclosures required under SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in respect of debt securities issued by the
Company are as under :
Sr. No. Particulars Quarter Ended Year Ended
Unaudited Au
di
te
d
31-Mar-22 31-Dec-21 31-Mar-21 31-Mar-22 31-Mar-21
1 Debt Service Coverage Ratio 0.03 (0.01) 0.15 0.09 0.30
2 Interest Service Coverage ratio 1.16 (0.29) 4.08 0.84 2.05
3 Debt Equity Ratio 0.37 0.37 0.37 0.37 0.37
4 Current Ratio 1.33 1.32 1.41 1.33 1.41
5 Long Term debt to Working Capital 0.57 0.56 0.50 0.57 0.50
6 Bad Debts to Account Receivable Ratio 0.00 0.00 0.19 0.00 0.31
7 Current Liability Ratio 0.81 0.81 0.82 0.81 0.82
8 Total Debts to Total Assets 0.19 0.18 0.18 0.19 0.18
9 Debtors Turnover Ratio 0.15 0.10 0.22 0.50 0.48
10 Inventory Turnover Ratio # N.A. N.A. N.A. N.A. N.A.
11 Operating Margin in % 22.68 (11.72) 47.66 19.75 43.11
12 Net Profit Margin in % (16.24) (60.36) 16.47 (25.16) (1.13)
13 Debenture Redemption Reserve (Rs. in Crore) 212.98 212.98 212.98 212.98 212.98
14 Capital Redemption Reserve (Rs. in Crore) 130.03 130.03 130.03 130.03 130.03
15 Net Worth (Rs. in Crore) @ 9,493.13 9,563.94 9,724.67 9,493.13 9,724.67
# Inventory represents store, spares and consumables only, hence
Inventory turnover ratio is not applicable to the Company.
@ In the financial year 2019-20, the Company had adjusted the loss
on invocation/mark to market (required to be done due to invocation of shares
by the lenders) of Rs. 5,024.88 crore against the capital reserve. The
auditors in their report had mentioned that the above treatment is not in
accordance with the Ind AS 1, "Presentation of Financial Statements", Ind AS
109, "Financial Instruments" and Ind AS 28, "Investment in Associates and
Joint Ventures". However, the Company continues to disclose Net worth for the
subsequent period without considering impact of above.
Formulae for computation of ratios are as follows:
Ratios Formulae
Debt Service Coverage Ratio Earnings before Interest, Tax, depreciation & amortisation and exceptional
items
Interest Expenses + Principal Repayment of Long Term Debt made within one year
Interest Service Coverage Ratio Earnings before Interest, Tax and exceptional items
Interest Expenses
Debt Equity Ratio Total Debt
Total Equity
Current Ratio Current Assets
Current Liabilities
Long Term Debts to Working Capital Non-Current Borrowings (Including Current Maturities of Non- Current
Borrowings)
working capital excluding current maturities of non-current borrowings
Bad debts to Account Receivable Bad debts
Average Trade Receivable
Current Liability Ratio Total Current Liabilities
Total Liabilities
Total Debts to Total Assets Total Debts
Total Assets
Debtors Turnover Revenue from Operation
Average Trade Receivable
Inventory turnover Cost of Good Sold
Average Inventories of Finished Goods, Stock-in-Process and
Stock-in-Trade
Operating margin Earnings before Interest , Tax and Exceptional Items less Other Income
Revenue from operation
Net profit margin Profit after tax
Revenue from operation
11. During the quarter, the Company has sold its entire investments in its
wholly owned subsidiary i.e. Utility Infrastructure & Works Private
Limited.
12. 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". All the
operations the Company are predominantly conducted within India, as such
there are no separate reportable geographical segments.
13. The Code on Social Security, 2020 relating to employee benefits during
employment and post- employment benefits has received presidential assent.
However the effective date of the code and final rules are yet to be notified.
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.
14. Other income for the quarter and year ended March 31, 2022 includes ;
(i) Foreign exchange gain of Rs. 26.94 crore and Rs. 55.23 crore respectively.
The Corresponding impact during the previous periods and year was considered
in the General Reserve. Figures for the previous periods and year are not
comparable with current quarter and year ended to that extent.
(ii) Gain of Rs 127.97 crore, on transfer of participating interest in one of
the joint operation i.e. Rinfra-Astaldi JV.
15. The figures for the quarter ended March 31, 2022 and March 31, 2021 are
the balancing figures between the audited figures in respect of the full
financial year and the published year to date figures up to the nine months of
the respective financial year. The figures for the previous periods and for
the year ended March 31, 2021 have been regrouped and rearranged to make them
comparable with those of current period.
16. After review by the Audit Committee, the Board of Directors of the
Company has approved the standalone financial results at their meeting held on
May 13, 2022.
For and on behalf of the Board of
Directors
Place:
Mumbai
Punit Garg
Date: May 13, 2022
Executive Director and Chief Executive Officer
Auditor's Report on the standalone financial results of Reliance
Infrastructure Limited for the quarter and year ended March 31, 2022 pursuant
to Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015
Independent Auditor's Report
To The Board of Directors of Reliance Infrastructure Limited
Report on the audit of the Standalone Financial Results
Disclaimer of Opinion
We were engaged to audit the accompanying standalone financial results of
Reliance Infrastructure Limited ("the Company") which includes joint
operations on a proportionate basis listed in Annexure A for the quarter and
year ended March 31, 2022 ("standalone financial results", "the Statement")
attached herewith, being submitted by the Company pursuant to the requirement
of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended ("Listing Regulations").
Because of the substantive nature and significance of the matter described in
the "Basis for Disclaimer of Opinion", we have not been able to obtain
sufficient appropriate audit evidence to provide the basis of our opinion as
to whether these standalone financial results:
i. are presented in accordance with the requirements of Regulation 33
and Regulation 52 read with Regulation 63(2) of the Listing Regulations in
this regard; and
ii. give a true and fair view in conformity with the recognition and
measurement principles laid down in the applicable Indian Accounting Standards
and other accounting principles generally accepted in India of the net
profit/(loss) and other comprehensive income and other financial information
for the quarter and year ended March 31, 2022.
Basis for Disclaimer of Opinion
1. We refer to Note 9 to the standalone financial results regarding the
Company's exposure in an EPC Company as on March 31, 2022 aggregating to Rs.
6526.82 Crore (net of provision of Rs. 3,972.17 Crore . Further, the Company
has also provided corporate guarantees aggregating to Rs. 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 Rs. 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 10 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 Rs. 5,024.88 Crore for
the 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 Net Worth of the
Company as at March 31, 2021 and March 31, 2022 would have been lower by Rs.
5,024.88 Crore.
As a result of the matters described in paragraph 1 and 2 above, we were not
able to obtain sufficient appropriate evidence to provide a basis of our
Opinion on the standalone financial results.
Material Uncertainty related to Going Concern
We draw attention to Note 4 to the standalone financial results, 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 results is not modified in respect of
this matter.
Emphasis of Matter Paragraph
1. We draw attention to Note 8 to the Statement which describes the
impairment assessment in accordance with Ind AS 36 "Impairment of assets"
/ Ind AS 109 "Financial Instruments" performed by the Company in respect of
net receivables of Rs.1,677 Crore as at March 31,2022 from Reliance Power
Limited associate of the company and its Subsidiaries ("RPower Group") .
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 by the management . Our Conclusion on the Statement is not
modified in respect of above matter.
2. We draw attention to Note 6(b) to the Statement 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 Rs.
544.94 Crore in KMTR, as at March 31, 2022 and no impairment has been
considered necessary against the above investments by the management for the
reasons stated in the aforesaid note. Our Conclusion on the Statement is not
modified in respect of above matter.
3. We draw attention to Note 6(a) to the Statement which describes the
impairment assessment in accordance with Ind AS 36 "Impairment of assets"
/ Ind AS 109 "Financial Instruments" performed by the Company in respect of
net receivables of Rs.2954.24 Crore as at March 31,2022 in Nine subsidiaries
i.e. Toll Road SPV's Companies (Excluding KMTR as stated in paragraph 2 above)
. 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 by the management . Our Conclusion on the Statement is not
modified in respect of above matter.
4. We draw attention to Note 2 to the Statement, as regards to the
management evaluation of COVID - 19 impact on the future performance of the
Company. Our conclusion on the Statement is not modified in respect of this
matter.
Management's Responsibilities for the Standalone Financial Results
The standalone financial results, which is the responsibility of the Company's
Management and approved by the Board of Directors, has been prepared on the
basis of standalone financial statements. The Company's Board of Directors are
responsible for the preparation of these financial results that give a true
and fair view of the net profit/loss and other comprehensive income and other
financial information in accordance with the Indian Accounting Standards
prescribed under Section 133 of the Act read with relevant rules issued
thereunder and other accounting principles generally accepted in India and in
compliance with Regulation 33 and Regulation 52 read with Regulation 63(2) of
the Listing Regulations.
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 results that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial results, the 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 the Board of Directors either
intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's
financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Results
Our responsibility is to conduct an audit of the standalone financial results
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 results.
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
1. The standalone financial results include the audited financial results of
3 joint operations included in the Statement, whose financial information
reflect total assets of Rs. 132.32 Crore as at March 31, 2022, total revenues
of Rs. 26.36 Crore and Rs. 208.68 Crore, total net profit/(loss) after tax of
Rs. 0.36 Crore and Rs. 3.71 Crore and total comprehensive income / (loss) of
Rs. 0.36 Crore and Rs. 3.71 Crore for the quarter and year ended March 31,
2022 respectively as considered in this Statement. These 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 results, in so far
it relates to amounts and 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.
2. The audited financial results includes financial information of 2 Joint
Operations which have not been auditor by their auditors, whose financial
information reflect total revenues of Rs. NIL , total net loss after tax and
total comprehensive loss of Rs. 0.24 Crore for the quarter and year ended
March 31, 2022 as considered in this statement, have been furnished to us by
the management. Our conclusion on the Statement in so far it relates to the
amounts and disclosures is based solely on such unaudited financial
information. In our opinion and according to the information and explanation
given to us by the management, these financial information are not material to
the Company.
Our opinion on the standalone financial results 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.
3. The standalone financial results include the results for the
quarter ended March 31, 2022 being the balancing figure between the audited
figures in respect of the full financial year and the published unaudited year
to date figures up to the third quarter of the current financial years which
were subject to limited review by us, as required under the Listing
Regulations.
For Chaturvedi & Shah LLP
Chartered Accountants
Firm's Registration No:101720W/W100355
Parag D. Mehta
Partner
Membership No:113904
UDIN: 22113904AIYPJM7525
Date: 13(th) May, 2022
Place: Mumbai
Annexure A
The Standalone financial results includes the financial information of the
following joint operations
Sr no. Name of the Joint Operations
1 Rinfra & Construction Association Interbudmntazh JT Stock Co. Ukraine (JV)
2 Rinfra - Astaldi Joint Venture
3 Rinfra - Astaldi JV (Upto Jan 17, 2022)
4 Coal Bed Methane (Block - SP(N) - CBM - 2005 III)
5 MZ - ONN- 2004/ 2 (NaftoGaz India Private Limited)
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