REG - Reliance Infra Ld - Annual Financial Report - Standalone results

Reliance InfrastructureAnnouncement

08/05/2018 07:05

2018-05-08T06:00:08.622Zreuters.comtag:reuters.com,2018-05-08:newsml_RSH2514Na:13TXT
This file is provided for EAP sample purposes only; it's structure and detail are subject to change, and should not be used as a definitive reference for actual development and processing.2018-05-08T06:00:08.622Z2018-05-08T06:00:08.622Z____UCDP:parsn_lse_10.54.4.69_1.2.37235:2019-06-08T06:00:08.622Z3RSH2514NaREG - Reliance Infra Ld  - Annual Financial Report - Standalone resultsUtilities (TRBC level 2)Electric Utilities (NEC) (TRBC level 5)Electric Utilities (TRBC level 4)Emerging Market CountriesWestern EuropeIndiaUnited KingdomEuropeSouth AsiaAsia / PacificAsiaSuggested SourcesServicesNews AnnouncementsRegulatory Corporate News AnnouncementsCompany NewsEurope daily earnings hits & missesReliance Infrastructure Ltd








RNS Number : 2514N
Reliance Infrastructure Limited
07 May 2018
 




RELIANCE INFRASTRUCTURE LIMITED




Registered Office: H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai 400 710




website:www.rinfra.com      CIN : L75100MH1929PLC001530




Statement of Standalone Financial Results for the Quarter and Year ended March 31, 2018








` crore
















Quarter Ended






Year ended
















31-03-2018


31-03-2017


31-03-2017


31-03-2018


31-03-2017
















(Unaudited)


(Unaudited)


(Unaudited)


(Audited)


(Audited)




1


Income from Operations




























(a) Net Sales / Income from Power Business


     1,799.15


   1,838.34


   1,713.63


   7,602.15


   7,048.83








(b) Income from EPC and Contracts Business


        227.37


      103.63


      384.15


      894.67


   1,578.66








(c) Other Operating Income


         20.24


      124.89


        67.07


      478.48


      130.19








Total Income from Operations


     2,046.76


   2,066.86


   2,164.85


   8,975.30


   8,757.68




2


Other Income (net) (Refer Note 5)


        618.24


      519.87


        87.33


   2,165.59


   2,096.73








Total Income


     2,665.00


   2,586.73


   2,252.18


 11,140.89


 10,854.41




3


Expenses




























(a) Cost of Power Purchased


        657.49


      698.19


      633.84


   2,809.26


   2,623.38








(b) Cost of Fuel


        254.79


      261.78


      282.68


   1,076.49


   1,004.75








(c) Construction Materials Consumed and Sub-contracting Charges


        110.15


       (55.18)


      226.62


      402.27


   1,098.13








(d) Employee Benefits Expense


        247.65


      252.46


      195.67


      995.09


      974.34








(e) Finance Costs


        707.49


      759.73


      719.19


   2,929.75


   2,640.99








(f) Depreciation and Amortisation Expense


        217.03


      222.36


      217.12


      889.09


      930.32








(g) Other Expenses (Refer Note 5)


        216.98


      358.34


      340.98


   1,064.43


   1,054.54








Total Expenses


     2,411.58


   2,497.68


   2,616.10


 10,166.38


 10,326.45




4


Profit before Rate Regulated Activities, Exceptional Items and Tax (1+2-3)


        253.42


        89.05


     (363.92)


      974.51


      527.96




5


Add : Regulatory Income (net of deferred tax)


        107.99


      131.55


      336.23


      288.89


      755.94




6


Profit before Exceptional Items (4+5)


        361.41


      220.60


       (27.69)


   1,263.40


   1,283.90




7


Exceptional Items (Net)




























Profit/(Loss) on Sale of Investments


              -  


             -  


             -  


      284.19


     (153.33)








Income/(Expenses) (Refer Note 6)


       (213.00)


             -  


     (555.58)


     (411.50)


     (555.58)








Less : Transferred from General Reserve (Refer Note 6)


        213.00


             -  


      555.58


      411.50


      555.58
















              -  


             -  


             -  


      284.19


     (153.33)




8


Profit before tax (6+7)


        361.41


      220.60


       (27.69)


   1,547.59


   1,130.57




9


Tax Expenses




























 - Current Tax


              -  


         2.50


     (224.00)


            -  


       46.00








 - Deferred Tax (net)


         29.18


       (94.70)


        36.31


      (83.02)


     (113.17)








 - Tax adjustment for earlier years (net)


              -  


             -  


       (16.51)


            -  


      (16.51)




10


Net Profit for the period from Continuing Operations (8-9)


        332.23


      312.80


      176.51


   1,630.61


   1,214.25




11


Net Profit for the period from Discontinuing Operations


              -  


         7.05


        28.38


       33.76


       74.16




12


Net Profit for the period (10+11)


        332.23


      319.85


      204.89


   1,664.37


   1,288.41




13


Other Comprehensive Income




























Items that will not be reclassified to Profit and Loss




























Remeasurement of post employment benefit obligation


        (49.63)


         6.00


        15.45


      (29.63)


       30.45








Income Tax relating to the above


         14.00


        (1.00)


        (3.00)


       10.50


        (6.00)
















         35.63


        (5.00)


       (12.45)


       19.13


      (24.45)




14


Total Comprehensive Income (12+13)


        367.86


      314.85


      192.44


   1,683.50


   1,263.96






































15


Earnings Per Share (* not annualised) (Face value of ` 10 per share)
















(a)


Basic and Diluted Earnings per Share (in `) (for Continuing Operations)


12.63*


11.89*


6.71*


       62.00


       46.17




(b)


Basic and Diluted Earnings per Share (in `) (for Discontinued Operations)


              -  


0.27*


1.08*


         1.28


         2.82




(c)


Basic and Diluted Earnings per Share (in `)


12.63*


12.16*


7.79*


       63.28


       48.99




(d)


Basic and Diluted Earnings per Share (in `) - Before Rate Regulated Activities


8.53*


7.16*


(4.99)*


       52.30


       20.25






































16


Debenture Redemption Reserve














      528.23


      626.37




17


Net Worth














 15,854.61


 14,877.73




18


Debt Service Coverage Ratio (Refer Note 11)














         0.91


         0.99




19


Interest Service Coverage Ratio (Refer Note 11)














         3.70


         2.98




20


Debt Equity Ratio (Refer Note 11)














         0.56


         0.78




21


Paid-up Equity Share Capital (Face value of ` 10 per share)











      263.03


      263.03




22


Other Equity














 21,721.63


 20,732.11



 







Segment-wise Revenue, Results and Capital Employed








` crore
















Quarter Ended






Year ended
















31-03-2018


31-03-2017


31-03-2017


31-03-2018


31-03-2017
















(Unaudited)


(Unaudited)


(Unaudited)


(Audited)


(Audited)






































1


Segment Revenue




























       - Power Business


     1,925.45


   1,995.10


   2,112.60


   8,196.73


   7,915.42








       - EPC and Contracts Business


        229.30


      203.31


      388.48


   1,067.46


   1,598.20








Total


     2,154.75


   2,198.41


   2,501.08


   9,264.19


   9,513.62








Less : Inter Segment Revenue


              -  


             -  


             -  


            -  


            -  








Net Sales / Income from Operations (Including Regulatory Income)


     2,154.75


   2,198.41
 


   2,501.08


   9,264.19


   9,513.62






































2


Segment Results




























   Profit before Tax and Interest from each segment :




























       - Power Business


        507.92


      405.84


      633.75


   2,007.13


   1,927.64








       - EPC and Contracts Business


         66.15


      220.04


      102.70


      465.70


      251.44








Total


        574.07


      625.88


      736.45


   2,472.83


   2,179.08








- Finance Costs


       (707.49)


     (759.73)


     (719.19)


  (2,929.75)


  (2,640.99)








- Interest Income


        534.12


      504.80


        41.30


   2,012.64


   1,859.71








- Exceptional Item - Unallocable segment


              -  


             -  


             -  


      284.19


     (153.33)








- Other Un-allocable Income net of Expenditure


        (39.29)


     (150.35)


       (86.25)


     (292.32)


     (113.90)








Profit before Tax from continuing operations


        361.41


      220.60


       (27.69)


   1,547.59


   1,130.57




3


Capital Employed




























Segment Assets




























       - Power Business


   18,955.13


 18,919.16


 19,871.84


 18,955.13


 19,871.84








       - EPC and Contracts Business


     4,884.59


   4,904.96


   5,469.12


   4,884.59


   5,469.12








       - Unallocated Assets


   34,279.43


 33,724.55


 30,233.82


 34,279.43


 30,233.82
















   58,119.15


 57,548.67


 55,574.78


 58,119.15


 55,574.78








Non Current Assets Held for sale and Discontinued Operations


        667.77


      661.70


   1,860.65


      667.77


   1,860.65
















   58,786.92


 58,210.37


 57,435.43


 58,786.92


 57,435.43








Segment Liabilities




























       - Power Business


   10,784.05


 10,567.25


   9,780.20


 10,784.05


   9,780.20








       - EPC and Contracts Business


     4,922.00


   5,365.10


   6,377.80


   4,922.00


   6,377.80








       - Unallocated Liabilities


   21,096.21


 20,485.80


 19,577.66


 21,096.21


 19,577.66
















   36,802.26


 36,418.15


 35,735.66


 36,802.26


 35,735.66








Liabilities of Discontinued Operations


              -  


             -  


      704.63


            -  


      704.63
















   36,802.26


 36,418.15


 36,440.29


 36,802.26


 36,440.29






































 


Standalone Statement of Assets and Liabilities


` crore


 




 


Particulars


As at


As at


 




 






31-03-2018


31-03.2017


 




 






(Audited)


(Audited)


 




 


ASSETS










 




 














 




 


Non-Current Assets










 




 


Property, Plant and Equipment


15,393.91


15,845.52


 




 


Capital Work-in-progress


217.01


183.67


 




 


Investment Property


528.70


558.42


 




 


Other Intangible Assets


11.86


13.63


 




 


Financial Assets










 




 


Investments


17,287.34


16,631.03


 




 


Other Financial Assets


56.69


65.58


 




 


Loans


39.22


40.59


 




 


Other Non - Current Assets


396.26


332.58


 




 


Total Non-Current Assets


33,930.99


33,671.02


 




 














 




 


Current Assets










 




 


Inventories


335.67


307.24


 




 


Financial Assets










 




 


Investments


266.64


245.40


 




 


Trade Receivables


4,801.33


5,059.37


 




 


Service Concession Receivable


-


75.54


 




 


Cash and Cash Equivalents


86.22


153.72


 




 


Bank Balance other than Cash and Cash Equivalents above


499.47


91.78


 




 


Other Financial Assets


2,108.68


1,429.58


 




 


Loans


13,557.69


11,544.18


 




 


Other Current Assets


905.63


1,040.06


 




 


Total Current Assets


22,561.33


19,946.87


 




 














 




 


Non Current Assets Held for sale and Discontinued Operations


667.77


1,860.65


 




 


Total Assets before Regulatory Assets


57,160.09


55,478.54


 




 














 




 


Regulatory deferral account debit balances and related deferred tax balances


1,626.83


1,956.89


 




 


Total Assets


58,786.92


57,435.43


 




 


 
 










 




 


Equity and Liabilities










 




 














 




 


Equity










 




 


Equity Share Capital


263.03


263.03


 




 


Other Equity


21,721.63


20,732.11


 




 


Total Equity


21,984.66


20,995.14


 




 














 




 


LIABILITIES










 




 














 




 


Non-Current Liabilities










 




 


Financial Liabilities










 




 


Borrowings


4,567.16


6,738.92


 




 


Financial Lease Obligations


4,110.92


4,164.75


 




 


Trade Payables


8.79


4.98


 




 


Other Financial Liabilities


539.25


504.01


 




 


Provisions


364.73


380.00


 




 


Deferred Tax Liabilities (Net)


2,449.88


2,522.40


 




 


Other Non - Current Liabilities


1,900.21


1,958.08


 




 


Total Non-Current Liabilities


13,940.94


16,273.14


 




 














 




 


Current Liabilities










 




 


Financial Liabilities










 




 


Borrowings


3,437.48


5,248.54


 




 


Financial Lease Obligations


58.68


52.66


 




 


Trade Payables


5,295.98


5,562.03


 




 


Other Financial Liabilities


5,724.48


4,004.61


 




 


Other Current Liabilities


8,009.84


3,862.84


 




 


Provisions


34.22


251.54


 




 


Current Tax Liabilities (Net)


300.64


480.30


 




 


Total Current Liabilities


22,861.32


19,462.52


 




 














 




 


Liabilities of Discontinued Operations


-


704.63


 




 














 




 


Total Equity and Liabilities


58,786.92


57,435.43


 




 














 
















Notes: 
 
1.   The Board has recommended dividend of ` 9.50 per equity share for the year 2017-18.
 
2.   The Standalone Financial Results of the Company have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013.



3.   The Board of Directors of the Company has approved the Scheme of Arrangement envisaging transfer of various operating divisions of the Company, namely Dahanu Thermal Power Station, Mumbai Power Transmission Division and Mumbai Power Distribution Division (together considered as Mumbai Power Business) to its resulting wholly owned subsidiary viz. Reliance Electric Generation and Supply Limited with effect from April 1, 2016. The Scheme received approval of the Hon'ble Bombay High Court on January 19, 2017. The Hon'ble Bombay High Court vide order dated November 20, 2017 sanctioned the effective date of the Scheme from April 1, 2016 to April 1, 2018 with liberty to apply. The Scheme is effective subject to various approvals and accordingly has not been considered as Non Current Assets held for sale as per Ind AS 105 "Non Current Assets held for sale and discontinued operations".
 
4.   On December 21, 2017, the Company signed Share Purchase Agreement (SPA) with Adani Transmission Limited (ATL) for sale of its integrated business of generation, transmission and distribution of power for Mumbai City. The said transaction is subject to various regulatory and customary approvals and hence has not been considered as Non Current Assets held for sale and discontinued operations as per Ind AS 105 "Non Current Assets held for sale and discontinued operations".
 
5.   Pursuant to the option exercised under the Scheme of Amalgamation of Reliance Infraprojects Limited with the Company, sanctioned by the Hon'ble High Court of Judicature at Bombay on March 30, 2011, net foreign exchange gain of ` 24.39 crore and loss of ` 11.68 crore for the quarter and year ended March 31, 2018 respectively has been credited / debited to the Statement of Profit and Loss and an equivalent amount has been transferred to / withdrawn from General Reserve. Had such transfer / withdrawal not been done, the Profit before tax for the quarter and year ended March 31, 2018 would have been higher / lower by ` 24.39 crore and ` 11.68 crore respectively and General Reserve would have been lower / higher by an equivalent amount. The treatment prescribed under the Scheme overrides the relevant provisions of Ind AS 1 "Presentation of Financial Statements". This matter has been referred to by the Auditors in their report.
 
6.   Pursuant to the Scheme of Amalgamation of Reliance Cement Works Private Limited with Western Region Transmission (Maharashtra) Private Limited (WRTM), wholly owned subsidiary of the Company, which was subsequently amalgamated with the Company w.e.f. April 1, 2013, the Board of Directors of the Company during the quarter and year ended March 31, 2018 determined an amount of ` 213 crore as Exceptional items being write off of Loan of ` 190.39 crore given to Mumbai Metro One Private Limited and Investment of `  22.61 crore of Reliance Defence Systems Private Limited which has been debited to the Statement of Profit and Loss and an equivalent amount has been withdrawn from General Reserve. During the quarter ended September 30, 2017, the Board of Directors of the Company determined loss of ` 198.50 crore as exceptional item being loss on transfer of its Western Region System Strengthening Scheme (WRSSS) Transmission Undertakings to its two subsidiaries, viz. Western Transmission Gujarat Limited (WTGL) and Western Transco Power Limited (WTPL) which was debited to the Statement of Profit and Loss and an equivalent amount was withdrawn from General Reserve. Had such withdrawal not been done, the Profit before tax for the quarter and year ended March 31, 2018 would have been lower by ` 213 crore and ` 411.50 crore respectively and General Reserve would have been higher by an equivalent amount. The treatment prescribed under the Scheme overrides the relevant provisions of Ind AS 1 "Presentation of Financial Statements". This matter has been referred to by the Auditors in their report.
 
7.   During the quarter ended March 31, 2018, Reliance Velocity Limited has become wholly owned subsidiary of the Company and Thales Reliance Defence Systems Limited has been incorporated as wholly owned subsidiary of the Company.
 
8.   Company's long term rating by India Ratings and Research Private Limited has changed to IND A/Rating Watch Evolving; rating by CARE Ratings has been changed to CARE A-/credit watch with developing implications; rating by CRISIL has been changed to CRISIL BBB+/rating watch with developing implications and rating by Brickwork Ratings has been changed to BWR AA-/ Credit Watch with developing implications.
 
9.   The listed non convertible debentures aggregating ` 2,680 crore as on March 31, 2018 are secured by way of first pari passu charge on the Company's certain fixed assets and regulatory assets, second mortgage on the Company's certain fixed assets and pledge of certain investments and asset cover thereof exceeds one hundred percent of the principal amount of the said debentures. Charge creation in respect of listed non convertible debentures of ` 75 crore issued on March 28, 2018 is under process.
 
10.  Details of due datewise obligations in respect of Secured Non Convertible debentures outstanding as on March 31, 2018 are as follows:           
 







Particulars


ISIN No.


Previous Date October 01, 2017 till March  31, 2018)*


Next Date (April 01, 2018 till September 30, 2018)
















Principal


Interest


Principal


Interest




1.


NCD Series 3


INE036A07039


N.A.


N.A.


August 19, 2018


August 19, 2018




2.


NCD Series 4


INE036A07096


February 23, 2018


February 23, 2018


-


-




3.


NCD Series 5


INE036A07104


N.A.


January 25, 2018


July 27, 2018


July 27, 2018




4.


NCD Series 6


INE036A07112


January 25, 2018


January 25, 2018


N.A.


N.A.




5.


NCD Series 10


INE036A07146


March 31, 2018


March 31, 2018


-


-




6.


NCD Series 11A


INE036A07153


N.A.


N.A.


N.A.


June 15, 2018




7.


NCD Series 11B


INE036A07161


N.A.


N.A.


June 15, 2018


June 15, 2018




8.


NCD Series 11C


INE036A07195


N.A.


N.A.


N.A.


June 29, 2018




9.


NCD Series 11D


INE036A07203


N.A.


N.A.


June 29, 2018


June 29, 2018




10.


NCD Series 12A


INE036A07179


N.A.


N.A.


N.A.


June 15, 2018




11.


NCD Series 12B


INE036A07187


N.A.


N.A.


June 15, 2018


June 15, 2018




12.


NCD Series 12C


INE036A07211


N.A.


N.A.


June 29, 2018


June 29, 2018




13.


NCD Series 12D


INE036A07229


N.A.


N.A.


N.A.


June 29, 2018




14.


NCD Series 13A


INE036A07237


N.A.


N.A.


July 26, 2018


July 26, 2018




15.


NCD Series 13B


INE036A07245


N.A.


N.A.


N.A.


July 26, 2018




16.


NCD Series 14


INE036A07252


N.A.


N.A.


N.A.


August 6, 2018




17.


NCD Series 16


INE036A07278


N.A.


October 31, 2017


N.A.


N.A,




18.


NCD Series 17


INE036A07286


N.A.


November 12, 2017


N.A.


N.A.




19.


NCD Series 18


INE036A07294


N.A.


January 21, 2018


N.A.


April 21, 2018




20.


NCD Series 19


INE036A07302


N.A.


January 21, 2018


N.A.


N.A.




21.


NCD Series 20D


INE036A07344


N.A.


N.A.


N.A.


N.A.




22.


NCD Series 20E


INE036A07351


N.A.


N.A.


N.A.


N.A.




23.


NCD Series 21D


INE036A07401


March  23, 2018


March  23, 2018


-


-




24.


NCD Series 25B


INE036A07450


N. A.


N. A.


-


-




25.


NCD Series 25C


INE036A07468


March  23, 2018


March  23, 2018


-


-




26.


NCD Series 25D


INE036A07476


N. A.


March  26, 2018


April 25, 2018


April 25, 2018




27.


NCD Series 25E


INE036A07484


N. A.


March  26, 2018


N.A.


April 25, 2018




28.


NCD Series 25F


INE036A07492


N. A.


March  26, 2018


N.A.


April 25, 2018




29.


NCD Series 26


INE036A07500


N. A.


February 28,2018


May 30, 2018


May 30, 2018




30.


NCD Series 27


INE036A07559


N.A.


N.A.


N.A.


N A.



*Interest and Principal amount of above debentures have been paid.
 
11.  Ratios have been computed as under:
 
·    Debt Service Coverage Ratio = Earnings before Interest and Tax / (Interest on Long Term Debt + Principal Repayment of Long Term Debt during the year)
·    Interest Service Coverage Ratio = Earnings before Interest and Tax / Interest on Long Term Debt
·    Debt Equity Ratio = Borrowings / Equity
·    Net worth means, as per section 2(57) of the Companies Act, 2013, the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
 
12.  Delhi Airport Metro Express Private Limited (DAMEPL), a SPV of the Company, had terminated the Concession Agreement with Delhi Metro Rail Corporation (DMRC) for the Delhi Airport Metro Line 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 ` 2,950 crore along with interest. DMRC preferred an appeal against the Arbitration award before the Hon'ble Delhi High Court. The 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. On April 09, 2018, the divisional bench of the Hon'ble Delhi High Court has directed DMRC to take over servicing of all debt liabilities of DAMEPL aggregating to ` 1,618 crore pending disposal of the appeal.
 
13.  The Company operates in two segments, namely, Power and Engineering, Procurement, Construction (EPC) and Contracts. Power segment comprises of generation, transmission and distribution and EPC segment renders comprehensive, value added services in construction, erection and commissioning.
 
14.  On April 28, 2017 Reliance Infrastructure Invit Fund filed Updated Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI). Pursuant to such filing, the Company proposed to transfer the controlling interest in seven Toll Road Companies  viz. DS Toll Road Limited, GF Toll Road Private Limited, NK Toll Road Limited, JR Toll Road Private Limited, SU Toll Road Private Limited, TK Toll Road Private Limited and TD Toll Road Private Limited and accordingly the investments in these subsidiaries have been considered as Non-Current Assets held for sale as per Ind AS 105 "Non Current Assets held for sale and discontinued operations".
 
15.  In terms of SEBI circular CIR/CFD/CMD/26/2016 dated May 27, 2016, the Company hereby declares that the auditors have issued audit report with unmodified opinion on the audited standalone financial results for the year ended March 31, 2018.
 
16.  In the previous year, the Company had availed certain optional exemptions available as provided in Ind AS 101 "First Time Adoption of Indian Accounting Standards" for which the impact had been given in the quarter in which the option was availed. The corresponding previous period figures disclosed in these results are the figures as reported for the respective quarters in the unaudited financial results.  
 
17.  The figures of the current quarter ended March 31, 2018 and March 31, 2017 are balancing figures between audited figures in respect of the full financial year and the reviewed year to date figures upto the third quarter of the relevant financial year.
 
18.  Figures of the previous periods have been regrouped / reclassified wherever considered necessary. Similarly in view of transfer of two WRSSS Transmission undertakings during the year (Refer Note 6 above), the figures of the previous periods have been restated after excluding the figures of the WRSSS undertakings to make them comparable with the current quarter and year ended March 31, 2018.
 
19.  After review by the Audit Committee, the Board of Directors of the Company has approved the Standalone financial results at their meeting held on April 23, 2018.
                                                                                     
                                                                                                 For and on behalf of the Board of Directors
 
 
 
 
Place: Mumbai                                                                                                           Anil D. Ambani    
Date: April 23, 2018                                                                                                        Chairman
 
 
 
           



B S R & Co. LLP


Pathak H.D. & Associates




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Auditor's Report on the standalone Financial Results of Reliance Infrastructure Limited pursuant to Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
 
To the Board of Directors of Reliance Infrastructure Limited
 
                   
1.     We have audited the accompanying Statement of standalone financial results ('the Statement')of Reliance Infrastructure Limited ('the Company') for the quarter and year ended March 31, 2018 attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015read with relevant circulars issued by SEBI.Attention is drawn to the fact that the figures for quarter ended March 31, 2018 and corresponding quarter ended in previous year as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the published year-to-date figures up to the end of third quarter of the current and previous financial year respectively. Also figures up to the end of third quarter for the current and previous financial year had only been reviewed and not subjected to audit.
 
Management's Responsibility
 
2.     The Company's management is responsible for the preparation of the accompanying Statement. The management is also responsible for preparation of annual standalone financial statements in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Companies Act, 2013 ('the Act'), which are approved by the Board of Directors, on the basis of which the above Statement containing the annual audited standalone financial results has been prepared.
 
 
Auditor's Responsibility                                                                            
 
3.     Our responsibility is to express an opinion on the Statement based on our audit of the annual standalone Ind AS financial statements. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial results are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.
 
Opinion
 
4.     Based on our audit conducted as above, in our opinion and to the best of our information and according to the explanations given to us, the standalone financial results:
 
(i)         are presented in accordance with the requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; and
 
(ii)        give a true and fair view in conformity with the aforesaid Ind AS and other accounting principles generally accepted in India of the net profit (financial performance including other comprehensive income) and other financial information of the Company for the quarter and year ended March 31, 2018.
 
Emphasis of Matter
           
5.     We draw attention to Note 5 of the Statement regarding the Scheme of Amalgamation ('the Scheme') between Reliance Infraprojects Limited (wholly owned subsidiary of the Company) and the Company sanctioned by the Hon'ble High Court of Judicature at Bombay vide its order dated March 30, 2011, wherein the Company, as determined by the Board of Directors, is permitted to adjust foreign exchange/derivative/hedging losses/gains debited/credited to the Statement of Profit and Loss by a corresponding withdrawal from or credit to General Reserve which overrides the relevant provisions of Ind AS - 1 'Presentation of financial statements'. The net foreign exchange gain of Rs. 24.39 Crore and net foreign exchange loss of Rs. 11.68 Crore for the quarter and year ended March 31, 2018 respectively has been credited / debited to Statement of Profit and Loss and an equivalent amount has been transferred / withdrawn from General Reserve in terms of the Scheme.Had such transfer / withdrawal not been made, profit before tax for the quarter and year ended March 31, 2018 would have been higher by Rs. 24.39 Crore and lower by Rs. 11.68 Crore respectively and General Reserve would have been lower / higher by an equivalent amount.
 
 
6.     We draw attention to Note 6 of the Statement, wherein pursuant to the Scheme of Amalgamation of Reliance Cement Works Private Limited with Western Region Transmission (Maharashtra) Private Limited (WRTM), wholly owned subsidiary of the Company, which was subsequently amalgamated with the Company with effect from April 1, 2013, WRTM or its successor(s) is permitted to offset any extraordinary/exceptional items, as determined by the Board of Directors, debited to the Statement of Profit and Loss by a corresponding withdrawal from General Reserve, which overrides the relevant provisions of IndAS - 1 'Presentation of financial statements'. During the quarter ended March 31, 2018, the write off of loan of Rs.190.39 crore given to a subsidiary as also the write-off of investment of Rs.22.61 crore in another subsidiary was identified as an exceptional item by the Board of Directors of the Company, in terms of the aforesaid scheme. Further, during the year ended March 31, 2018, the Board of Directors determined an amount of Rs.198.5 crore to be an exceptional item being loss on fair valuation of assets and liabilities considered as held for sale. The aforesaid amountsaggregating to Rs 213 Crore and Rs. 411.50 Crore for the quarter and year ended March 31, 2018 has been debited to the Statement of Profit and Loss and an equivalent amount has been withdrawn from General Reserve. Had such withdrawal not been made, profit before tax for the year ended March 31, 2018 would have been lower by Rs. 411.50 Crore and General Reserve would have been higher by an equivalent amount.
 
Our opinion is not modified in respect of the above matters.  
 
Other matter
 
The comparative financial information of the Company for the quarter and year ended March 31, 2017included in this Statement had been jointly audited by Haribhakti& Co. LLP, Chartered Accountants and Pathak H.D. & Associates, Chartered Accountants, whose report dated April 15, 2017 expressed an unmodified opinion on those audited financial results for the quarter and year ended March 31, 2017. 
 
Our opinion is not modified in respect of the above matter.    
 
 
 



For B S R & Co. LLP


For Pathak H.D. & Associates




Chartered Accountants


Chartered Accountants




Firm's Registration No: 101248W /W-100022


Firm's Registration No:107783W


































Bhavesh Dhupelia


Vishal D. Shah




Partner


Partner




Membership No: 042070


Membership No:119303














23April 2018


23April 2018




Mumbai


Mumbai



 
 



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