Enter the first few characters of Company and click 'Go'

Notes to Accounts of Reliance Power Ltd.

Mar 31, 2023

7.5% Compulsory Convertible Redeemable Non-Cumulative Preference Shares (CCRPS)

The issuer companies shall have a call option on the CCRPS which can be exercised by them in one or more tranches and in part or in full before the end of agreed tenure from November, 2029 to March 2035 (20 years/ 15 years) of the said shares. In case the call option is exercised, the CCRPS shall be redeemed at an issue price (i.e. face value and premium). The Company, however, shall have an option to convert the CCRPS into equity shares at any time during the tenure of such CCRPS. At the end of tenure and to the extent the issuer Companies or the CCRPS holders thereof have not exercised their options, the CCRPS shall be compulsorily converted into equity shares. On conversion, in either case, each CCRPS shall be converted into equity shares of corresponding value (including the premium applicable thereon). In case the Issuer companies declare dividend on their equity shares, the CCRPS holders will also be entitled to the equity dividend in addition to the coupon rate of dividend.

Considering the said terms, these investments have been classified as equity and fair valued through Other Comprehensive Income.

³6% Compulsory Convertible Redeemable Non-Cumulative Preference Shares (CCRPS)

The issuer shall have a call option on the CCRPS which can be exercised by them in one or more tranches and in part or in full before the end of agreed tenure upto June, 2026 (5 years) of the said shares. In case the call option is exercised, the CCRPS shall be redeemed at an issue price equivalent to face value. The Company, however, shall have an option to convert the CCRPS into equity shares at any time during the tenure of such CCRPS. At the end of tenure and to the extent the issuer Companies or the CCRPS holders thereof have not exercised their options, the CCRPS shall be compulsorily converted into equity shares. On conversion, in either case, each CCRPS shall be converted into equity shares of corresponding value. In case the Issuer companies declare dividend on their equity shares, the CCRPS holders will also be entitled to the equity dividend in addition to the coupon rate of dividend.

Considering the said terms, these investments have been classified as equity and fair valued through Other Comprehensive Income.

The holder of convertible preference shares shall not be entitled to receive dividend to be paid out of the distributable profits of the Company for any financial period. The holder shall have the conversion right in relation to his convertible preference shares and shall be entitled at any time and at his option, to excercise the conversion right in respect of all or any of his convertible preference shares to convert such convertible preference shares into one ordinary share of USD 1 each credited as fully paid with a conversion premium of 5% per annum payable in cash, upto and including the date of conversion, calculated on annual basis for every convertible preference shares held. CPS issued on July, 2018 have conversion auction which can be excercised by them before the end of agreed tenure upto June, 2028.

(a) Capital Reserve

The Capital Reserve had arisen pursuant to the composite scheme of arrangement on account of net assets taken over from Reliance Futura Limited and forfeiture of unexercised share warrants.

(b) Capital Reserve (arisen pursuant to scheme of amalgamation)

The Capital Reserve had arisen pursuant to the composite scheme of arrangement with erstwhile Reliance Clean Energy Private Limited. The said scheme was sanctioned by Hon''ble High Court of Bombay vide order dated April 05, 2013. The Capital Reserve shall be a Reserve which arose pursuant to the above scheme and shall not be and shall not for any purpose be considered to be a Reserve created by the Company.

Securities premium is created to record premium received on issue of shares. The Reserve is utilized in accordance with the provision of the Companies Act, 2013.

(d) General Reserve (arisen pursuant to various schemes)

All below General Reserve arisen pursuant to schemes and shall not be and shall not for any purpose be considered to be a Reserve created by the Company.

i. General Reserves (arisen pursuant to composite scheme of arrangement)

The General Reserve had arisen pursuant to the composite scheme of arrangement between the Company, Reliance Natural Resources Limited, erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz. Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited. The said scheme was sanctioned by Hon''ble High Court of Judicature at Bombay vide order dated October 15, 2010.

ii. General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infraventures Private Limited)

The General Reserve had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infraventure Private Limited, sanctioned by the Hon''ble High Court of Bombay vide order dated April 29, 201 1. The scheme was effective from January 01, 2011.

iii. General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited)

The General Reserve had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited, sanctioned by the Hon''ble High Court of Bombay, vide order dated December 23, 201 1. The scheme was effective from September 01, 2011.

(e) Debentures Redemption Reserve

The Company is required to create a debenture redemption Reserve out of the profits of the Company for the purpose of redemption of debentures.

(f) Treasury Shares

The Reserve comprises loss on sale of treasury shares.

(g) Equity instruments/ others through Other Comprehensive Income:

The Company has elected to recognise changes in the fair value of investments in equity instruments in subsidiaries in other comprehensive income. The changes are accumulated within the FVOCI equity instruments Reserve within equity. The Company transfers amount from this Reserve to retained earnings when the relevant equity securities are derecognised.

3.9(a1) Nature of security for term loans

(i) Series I (2018) listed, rated, secured redeemable non convertible debentures of '' Nil (March 31, 2022''54,500 lakhs) was secured by first pari-passu charge with Rupee term loan at Sr. no. (iii), (vii) and (viii) over long term loans and advances of the Company.

(ii) 2500 Series III (2017) listed, rated, secured, redeemable non convertible debentures of '' 25,000 lakhs (March 31, 2022 '' 25,000 lakhs) are secured by pledge over 60,30,44,493 equity shares of Coastal Andhra Power Limited (a subsidiary). The fair value of immovable property of CAPL has sufficient asset cover to discharge the borrowing.

(iii) Rupee term loans from banks of '' Nil (March 31, 2022''32,400 lakhs) was secured by first charge over long term loans and advances of the Company on pari passu basis NCD at Sr. no. (i) and Rupee term loan at Sr. no. (vii) and (viii) was also secured by pledge over 29.97% shares of Rosa Power Supply Company Limited (a subsidiary), which has been invoked by the lender on January 14, 2020, the entire obligation of the lender is discharged. However the pledge of 29.97% equity shares of subsidiary RPSCL is under process of release. (Refer note 25).

(iv) Rupee term loans from banks of '' Nil (March 31, 2022''1,895 lakhs) and foreign currency loan of '' 4,950 lakhs (March 31, 2022''5,449 lakhs) are secured by first charge on all the assets of the 45 MW wind power project at Vashpet on pari passu basis with Rupee term loan at Sr. no. (vi).

(v) Rupee term loans from banks of '' 6,912 lakhs (March 31, 2022''6,912 lakhs) are secured by first pari passu charge over current assets of the Company excluding receivable pertaining to 45 MW wind power project at Vashpet.

(vi) Rupee term loans from banks of '' 10,962 lakhs (March 31, 2022''1 1,203 lakhs) are secured by first charge on all the assets of the 45 MW wind power project at Vashpet on pari passu basis with Rupee term loan and foreign currency loan at Sr. no. (iv).

(vii) Rupee term loans from banks of '' Nil (March 31, 2022''6,300 lakhs) was secured by the first pari passu charge with NCD at Sr. no. (i) and Rupee term loan at Sr. no. (iii) & (viii) over long term loans and advances including receivables accrued out of such long term loans and advances of the Company and also secured by pledge over 29.97% shares of Rosa Power Supply Company Limited (a subsidiary) which has been invoked by the bank on January 14, 2020, the entire obligation of the lender is discharged. However the pledge of 29.97% equity shares of subsidiary RPSCL is under process of release. (Refer note 25)

(viii) Rupee term loans from banks of '' Nil (March 31, 2022''16,875 lakhs) was secured by the first pari passu charge with NCD at Sr. no. (i) and Rupee term loan at Sr. no. (iii) and (vii) over long term loans and advances of the Company and also secured by pledge over 29.97% shares of Rosa Power Supply Company Limited (a subsidiary) which has been invoked by the bank on January 14, 2020, the entire obligation of the lender is discharged. However the pledge of 29.97% equity shares of subsidiary RPSCL is under process of release. (Refer note 25).

(ix) Current maturities of long term borrowings have been classified as current borrowings (Refer note 3.11(a))

3.9(a2) Terms of Repayment and Interest

(i) 2500 Series III (2017) listed, rated, secured, redeemable non convertible debentures are redeemable in 5 structured annual installments starting from June 30, 2031 and interest is payable at the end of tenure on June 30, 2035.

(ii) Foreign currency loans is repayable in 42 structured quarterly instalments commenced from September 2013 and interest is payable on a half yearly basis. The outstanding balance as at year end is '' 4,950 lakhs (March 31, 2022''5,449 lakhs).

(iii) Rupee term loans from bank is repayable in 16 quarterly instalments commencing from June 2017 and interest is payable on a monthly basis. The outstanding balance as at year end is '' 6,912 lakhs (March 31, 2022''6,912 lakhs).

(iv) Rupee term loans from bank is repayable in 53 structured quarterly instalments commenced from September 201 6 and interest is payable on a monthly basis. The outstanding balance as at year end is '' 10,962 lakhs (March 31, 2022''1 1,203 lakhs).

(v) ICD payable to related parties are repayable in 5 structured installments starting from June 30, 2031 and interest is payable at the end of the tenure on June 30, 2035.

3.9(a3) The amortised cost disclosed above is net off incidental cost of borrowings aggregating of '' 54 lakhs (March 31,2022 '' 792 lakhs).

(i) Rupee loan from bank of '' 17,213 lakhs (March 31, 2022 '' 17,213 lakhs) is secured by subservient charge on the current assets of the Company (except pertaining to 45 MW Wind power project at Vashpet) and is repayable on demand.

(ii) Working capital loan from bank is secured by first hypothecation and charge on all receivables of the Company, (excluding assets acquired under the merger scheme with erstwhile Reliance Clean Power Private Limited) both present and future on pari passu basis and is repayable on demand and interest is payable on a monthly basis.

4. Contingent liabilities and commitments

(a) Bank guarantees outstanding as at balance sheet date aggregating to '' 14,551 lakhs (March 31, 2022 '' 18,301 lakhs) issued in favor of subsidiaries by banks.

(b) Corporate guarantee issued to banks and financial institutions for loan facilities availed by subsidiary companies, outstanding as at balance sheet date aggregating to '' 7,39,100 lakhs (March 31, 2022''5,66,572 lakhs).

(c) The Company has acted as a co-borrower for facilities aggregating to '' Nil lakhs (March 31, 2022''55,542 lakhs) availed by one of its subsidiary.

(d) The Appeals pending aggregating to '' 1 1,689 lakhs (March 31, 2022 '' 14,610 lakhs) and '' 23 lakhs (March 31, 2022''42 lakhs) for direct and indirect tax respectively.

(e) In respect of subsidiaries, the Company has committed/ guaranteed to extend financial support in the form of equity or debt as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiaries, including any capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/debt servicing. Future cash flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors.

(f) As on March 31, 2023 there were no contracts remaining unexecuted on capital account.

6. Project status of Subsidiaries(a) Coastal Andhra Power Limited (CAPL)

CAPL was incorporated to develop an imported coal-based Ultra Mega Power Project (UMPP) of 3,960 MW capacity located in Krishnapatnam, District Nellore, in the State of Andhra Pradesh.

The project was awarded to Reliance Power Limited (RPL) through international tariff-based competitive bidding process managed by Power Finance Corporation (PFC), the nodal agency appointed by Ministry of Power. PFC was required to set up special purpose vehicles for each UMPP and to undertake initial development of UMPPs in terms of land acquisition and key clearances and thereafter select a developer for development, financing, construction and operation of the UMPP. On emerging successful, 100% ownership of CAPL was transferred by PFC to RPL pursuant to execution of a Share Purchase Agreement (SPA); thereafter RPL became the Parent Company of CAPL.

CAPL had entered into a firm price fuel supply agreement which envisaged supply of coal from Indonesia with RCRPL, a wholly owned subsidiary of the Parent Company. The Government of Indonesia introduced a new regulation in September, 2010 which prohibited sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and required adjustment of sale price every 12 months. This regulation also mandated to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September, 2011. The new Indonesian regulations led to steep increase in price of coal imported from Indonesia, making the UMPP unviable and as a result CAPL could not draw down already tied-up debt for the project. The said issue was communicated to the power procurers of the UMPP with a view to enter into mutual discussions to arrive at a suitable solution to the satisfaction of all the stakeholders. The impact of new Indonesian regulation, being an industrywide issue which impacted all imported coal-based projects in the Country, was also taken up with GoI through the Association of Power Producers.

Since no resolution could be arrived, CAPL invoked the dispute resolution provision of the PPA. The procurers also issued a notice for termination of the PPA and raised a demand for liquidated damages of '' 40,000 lakhs.

CAPL filed a petition before the Hon''ble High Court at Delhi inter-alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The single judge of the High Court at Delhi vide order dated July 02, 2012 dismissed the petition and CAPL filed an appeal against the said order before the Division Bench of the High Court at Delhi. The Division Bench dismissed the appeal on January 15, 2019 and consequently the PPA between procurers and CAPL stood terminated. Thereafter, the procurers have encashed the Performance Bank Guarantees of '' 30,000 lakhs towards recovery of their liquidated damages claim.

CAPL has now filed a petition before the Central Electricity Regulatory Commission (CERC) for referring the dispute to arbitration. Subsequently CAPL requested CERC to adjudicate the dispute itself and allow to file substantive petition which CERC vide order dated October 23, 2021 granted and disposed of the said Petition as withdrawn, with a liberty to CAPL & RPL to approach this Hon''ble Commission with a substantive petition. Accordingly substantive petition is filed before CERC which is currently pending adjudication. This has been shown as receivables from procurer (Refer note 3.4(e) and 26).

As per the terms of SPA among PFC, RPL and CAPL, on termination of PPA under Article 3.3.3 of PPA, PFC has a right to seek transfer of ownership of CAPL to PFC / entity designated by PFC. Accordingly, RPL has requested PFC to initiate process of transfer of ownership of CAPL and invite a procurers'' meeting in that regard to decide on modalities of transfer. As PFC/Procurers are yet to take action on the request of CAPL, R-Power has filed a Writ Petition in DHC for direction to PFC/Procurers to buyback the SPV. Next date of hearing is August 1, 2023.

Government of Andhra Pradesh (GoAP), citing that the project has not been developed for last 10 years; has issued three land resumption orders dated July 22, 2017, February 25, 2021 and February 27, 2021. Aggrieved by this, CAPL and RPL have filed a Writ Petitions (WP 33246 of 2017 and WP 5058 of 2021) in High Court of Andhra Pradesh at Amaravati praying for setting aside the relevant land resumption orders. The High court vide orders dated October 06, 2017 and March 02, 2021 directed both the parties to maintain a "Status Quo". Next date of hearing is awaited.

(b) Samalkot Power Limited (SMPL)

The management had planned to set up a gas-based power plant consisting of 3 modules of 754 MW each at Samalkot (Andhra Pradesh), with gas being sourced from KG-D6 basin. After making significant progress in the construction of the said plant, the Company stopped further construction of the plant due to severe domestic gas shortage and nonavailability of long-term domestic gas linkage.

Out of the three modules, one module has been moved to Bangladesh. Reliance Power Limited, had entered into a Memorandum of Understanding (MOU) with Bangladesh Power Development Board (BPDB) in June 2015 for developing a gas-based project of 3000 MW capacity in a phased manner. Pursuant to the above, Reliance Bangladesh LNG and Power Limited (RBLPL), has concluded a long-term power purchase agreement (PPA) for supply of 718 MW (net) power from a combined cycle gas-based power plant to be set up at Meghnaghat near Dhaka in Bangladesh as Phase-1 project. RBLPL has signed all the project agreements (Power Purchase Agreement, Implementation Agreement, Land Lease Agreement and Gas Supply Agreement) with Government of Bangladesh authorities on 1 September 2019, and also inducted a strategic partner JERA Power International (Netherlands) - a subsidiary of JERA Co. Inc. (Japan) to invest 49% equity in RBLPL on 2 Sept., 2019. Samsung C&T (South Korea) has been appointed as the EPC contractor for the Bangladesh project. Samalkot Power Ltd. has signed an Equipment Supply Contract (ESC) with Samsung C&T (South Korea) on 11 March, 2020 to sell one module of equipment for the Phase-1 project in Bangladesh and the same was amended between the Parties and approved by US Exim Bank vide a Side Letter dated 3 December, 2020. All the conditions for achieving financial closure were satisfied and Financial Closure achieved and NTP issued by Samsung on 2 Feb., 2021. All the equipment to be supplied by Samalkot Power under the ESC were shipped by November 2021.

The Company has already realized the proceeds from sale of one Module and these have been used to repay a major portion of the outstanding US Exim loan.

For balance two modules, the Company is evaluating various alternatives including setting up next phase of the project in Bangladesh based on the MOU referred above or selling it to other third parties.

Considering the above facts, including the active discussions with the lenders to revise terms of the agreement and financial assistance from the company, the management believes that SMPL would be able to meet its financial and other obligations in foreseeable future.

7. Applicability of NBFC Regulations

The Company, based on the objects given in the Memorandum and Articles of Association, its role in construction and operation of power plants through subsidiaries and other considerations, has been legally advised that it is not covered under the provisions of Non-Banking Financial Company as defined in the Reserve Bank of India Act, 1934 and accordingly, is not required to be registered under section 45 IA of the said Act.

8. Status of Dadri Project

The Company proposed to develop a 7,480 MW gas-based power project to be located at Dadri, District Hapur, Uttar Pradesh in the year 2003. The Government of Uttar Pradesh (the GoUP) in the year 2004 acquired 2,100 acres of land and conveyed the same to the Company in the year 2005, However, certain land owners challenged the acquisition of land by the GoUP for the project before the Hon''ble Allahabad High Court. The Hon''ble Allahabad High Court quashed a part of land acquisition proceedings. Subsequently, in the appeals filed by the Company and land owners against the findings of the Hon''ble Allahabad High Court, the Hon''ble Supreme Court held the land acquisition proceedings as lapsed but upheld the right of the Company to recover the amount paid in any other proceeding. The Company has represented to the GoUP seeking compensation towards cost incurred on the land acquisition as well as other incidental expenditure thereto. Considering the above facts, the Company has classified assets related to the Dadri project under the head ''Assets

classified as held for sale'' the Company has fully provided for receivables of '' 1 5,005 lakhs against the Dadri project. GoUP has not paid the agreed amount and consequently the Company invoked arbitration against GoUP. Arbitration Tribunal after pleadings disposed of the petition on 20.06.2022 and allowed claim of the Company GoUP has appealed in Delhi High Court against the Arbitral Award. Next date of hearing in the appeal is pending.

The Company has a defined benefit plan, governed by the Payment of Gratuity Act, 1 972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days basic salary for every completed years of services or part thereof in excess of six months, based on the rate of basic salary last drawn by the employee concerned.

The above sensitivity analysis is 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. While 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 liabilities 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.

(iv) The above defined benefit gratuity plan was administrated 100% by Life Insurance Corporation of India (LIC).

(v) Defined benefit liability and employer contributions

The Company will pay demand raised by LIC towards gratuity liability on time to time basis to eliminate the deficit in defined benefit plan.

The weighted average duration of the defined benefit obligation is 2.41 years (March 31, 2022 - 3.19 years).

(vi) The Company has seconded certain employees to the subsidiaries. As per the terms of the secondment, liability towards salaries, provident fund and leave encashment will be provided and paid by the respective subsidiaries and gratuity will be paid / provided by the Company. Accordingly, provision for gratuity includes cost in respect of seconded employees

(vii) The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit.

Details of material transactions: Service income includes '' 3,960 lakhs from SPL, '' 2,400 lakhs from RPSCL (March 31,2022: SPL '' 3,960 lakhs, RPSCL '' 2,400 lakhs), Interest income on ICD given includes '' 5,517 lakhs to RCRPL (March 31, 2022: '' 5,467 lakhs), Interest expense on ICD includes '' 5,427 lakhs to Rinfra (March 31, 2022: '' 7,482 lakhs to Rinfra), Reimbursement of expenses and advances given includes '' 5,834 lakhs to CAPL, '' 4,151 to CPPL (March 31, 2022: CAPL '' 4,817 lakhs, CPPL '' @), Inter corporate deposit received includes '' 53,811 lakhs from RPSCL (March 31, 2022: '' Nil), Corporate guarantee issued to banks/financial institution includes '' 30,000 lakhs for RNRL and '' 82,600 lakhs for RPSCL, Conversion of ICD into equity and share warrants of '' 25,131 lakhs from R Infra (March 31, 2022: '' 77,750 lakhs), Forfeiture of equity share warrants of '' 9,873 lakhs from R Infra.

Details of material balances: Investment in Equity shares includes SPL '' 5,18,494 lakhs and RPSCL '' 2,24,1 90 lakhs (March 31, 2022: SPL '' 5,35,805 lakhs and RPSCL '' 296,338 lakhs), Investment in Preference shares includes SPL '' 425,006 lakhs, (March 31, 2022: '' 439,1 95 lakhs), Short term borrowing - Inter- corporate deposit includes '' 345,509 lakhs from RPSCL (March 32, 2022: '' 301 ,653 lakhs), Bank/ Corporate Guarantee issued to banks/ financial institutions includes '' 3,41,482 lakhs for VIPL and '' 1 58,224 lakhs for SMPL (March 31, 2022: '' 3,09,257 lakhs for VIPL and '' 1,42,053 lakhs for SMPL).

(iii) Other transactions

As per the terms of sponsor support agreement entered for the purpose of security of term loans availed by subsidiaries, the Company has pledged following percentage of its shareholding in the respective subsidiaries.

â¢ 100% of equity shares of Sasan Power Limited

â¢ 100% of equity shares of Dhursar Solar Power Private Limited

â¢ 100% of equity shares of Rajasthan Sun Technique Energy Private Limited

â¢ 98% of equity shares of Vidarbha Industries Power Limited

â¢ 100% of preference shares of Sasan Power Limited

â¢ 100% of preference shares of Dhursar Solar Power Private Limited

â¢ 100% of preference shares of Rajasthan Sun Technique Energy Private Limited

â¢ 100% of equity shares of Reliance Natural Resources Limited

â¢ 100% of equity shares of Coastal Andhra Power Limited

â¢ 100% of equity shares of Samalkot Power Limited

â¢ 100% of equity shares of Rosa Power Supply Company Limited

The Company has given commitments / guarantees for loans taken by SPL, SMPL, VIPL, DSPPL and RSTEPL. (Refer note 4(e)).

(iv) The list of investment in subsidiaries along with proportion of ownership interest held and country of incorporation are disclosed in note no. 2 (c) (V) of consolidated financial statement

(v) The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

(vi) Transactions and balances with related parties which are in excess of 10% of the total revenue and 10% of net worth respectively of the Company are considered as material transactions.

(vii) Transactions with related parties are made on terms equivalent to those that prevail in case of arm''s length transactions.

(viii) During the year 2022-23, the Company has paid sitting fees of '' Nil (March 31, 2022 '' 2 lakhs) to Individual mentioned in B (I) (b) above

(e) Valuation technique used to determine fair values

The fair value of financial instruments is determined using discounted cash flow analysis.

The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.

The fair value of the long-term borrowings with floating-rate of interest is not impacted due to interest rate changes, and will be evaluated for their carrying amounts based on any change in the under-lying credit risk of the Company borrowing (since the date of inception of the loans).

For financial assets and liabilities that are measured at fair value, the carrying amount is equal to the fair values.

Note

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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 which are included in level 3.

There are no transfers between any levels during the year.

The Company''s policy is to recognise transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.

(a) Credit risk

The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the Company. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to trade customers including outstanding receivables.

Credit risk management

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

The Company''s credit risk arises from accounts receivable balances on sale of electricity is based on tariff rate approved by electricity regulator and inter-corporate deposits/loans are given to subsidiaries incorporated as special purpose vehicle for power projects awarded to the Company. The credit risk is very low as the sale of electricity is based on the terms of the PPA which has been approved by the Regulator. With respect to inter corporate deposits/ loans given to subsidiaries, the Company will be able to control the cash flows of those subsidiaries as the subsidiaries are wholly owned by the Company.

For deposits with banks and financial institutions, only highly rated banks/institutions are accepted. Generally all policies surrounding credit risk have been managed at company level. The Company''s policy to manage this risk is to invest in debt securities that have a good credit rating.

(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''s treasury function maintains flexibility in funding by maintaining availability under committed credit lines.

In respect of its existing operations, the Company funds its activities primarily through long-term loans secured against each power plant. In addition, each of the operating plants has working capital loans available to it which are renewed annually, together with certain intra-group loans. The Company''s objective in relation to its existing operating business is to maintain sufficient funding to allow the plants to operate at an optimal level.

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 the operating subsidiaries level 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 maintained debt financing plans.

Periodic budgets and rolling forecasts are prepared at the level of operating subsidiaries as regular practice and in accordance with limits specified by the Company. There is delay/ default in repayment of loans for '' 51,669 lakhs as at the end of the financial year. The Company has been pursuing proposed strategic transactions/ sale of assets and overall financial restructuring, when executed, would make available the required liquidity for the continuing business and would also provide an extended maturity period for repayment of restructured balance debt.

Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of volatility of prices in the financial markets. Market risk can be further segregated as: a) Foreign currency risk and b) Interest rate risk.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company holds monetary assets in the form of investments in US Dollar. Further it has long term monetary liabilities which are in US dollar other than its functional currency.

While the Company has direct exposure to foreign exchange rate changes on the price of non-Indian Rupee-denominated securities and borrowings, it may also be indirectly affected by the impact of foreign exchange rate changes on the earnings of companies in which the Company invests. For that reason, the below sensitivity analysis may not necessarily indicate the total effect on the Company''s net assets attributable to holders of equity shares of future movements in foreign exchange rates.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 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. The Company''s borrowings at variable rate were mainly denominated in Rupees.

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, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

17. Capital Management

(a) Risk Management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital on basis of total equity and debt on a periodic basis. Equity comprises all components of equity including the fair value impact. Debt includes long-term loan and short term loans. The following table summarizes the capital of the Company:

18. Segment reporting

Presently, the Company is engaged in only one segment viz ''Generation of Power'' and as such there is no separate reportable segment as per Ind AS 108 ''Operating Segments''. Presently, the Company''s operations are predominantly confined in India.

19. Exchange Difference on Long Term Monetary Items

As explained above in note 2.1(m) with respect to accounting policy followed by the Company for recording of foreign exchange differences, the Company has adjusted the value of Plant and equipment by loss of '' 439 lakhs (March 31, 2022 gain of '' 187 lakhs) towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets.

20. Corporate social responsibility (CSR)

As per the section 135 of the Act, the Company is required to spend '' Nil towards CSR based on profitability of the Company, against the same '' Nil has been spent by the Company.

21. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

22. The Company has outstanding obligations payable to lenders and its current liabilities exceed current assets as at March 31, 2023. The Company is confident of meeting its obligations by generating sufficient and timely cash flows through monetization of its assets and realization of amounts from various regulatory/ arbitration claims. Notwithstanding the dependence on these uncertain events, the Company is confident that such cash flows would enable it to service its debt, realize its assets and discharge its liabilities in the normal course of its business. Accordingly, the standalone financial statement of the Company have been prepared on a Going Concern Basis.

As at March 31, 2023 the Company has overdue of '' 26,893 lakhs (March 31, 2022''93,772 lakhs) included in the current maturities of long term debt in note no. 3.11(a) and '' 24,776 lakhs (March 31, 2022''66,551 lakhs) included in interest accrued in note no. 3.11(c).

* Refer note 25 below

25. During the year ended March 31, 2023, in continuation of the discussions for settlement with one of its lenders, the company has fully settled its debt, which constitutes very substantial portion of its external debt and has recognized one time gain in statement of profit and loss of '' 1,03,686 lakhs as an exceptional income and '' 16,880 lakhs as reversal to finance cost. Pursuant to the above said settlement, the entire obligation of the lender is discharged. However, the pledge of 29.97% equity shares of subsidiary Rosa Power Supply Company Limited is under process of release

26. During the year Company has created a provision of '' 30,000 lakhs against its certain financial assets and charged the same

to the statement of profit and loss for the year ended March 31, 2023

27. During the year the Company has issued and allotted 33,50,79,500 number of fully paid up equity shares of '' 10 each,

to Reliance Infrastructure Limited, upon exercise of its right to convert the equivalent number of warrants held by it and underlying payments have been made by conversion of debt. Consequently 39,49,20,500 warrants remain unexercised and balance of warrant subscription amount of '' 9,873 lakhs forfeited accordingly. The aforesaid equity shares shall rank pari-pasu in all respect with the existing equity shares of the Company. The Company has received listing and trading approval from National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) for the said equity shares.

28. During the year, the Company has proposed to issue upto 6,000 Lakhs equity shares and/or warrants convertible into equity shares through preferential allotment ("Equity Shares") having face value of '' 10 each at the issue price of '' 15.55 each, to VFSI Holding Pte. Ltd under the provision of the Securities and Exchange Board of India (SEBI) (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended up to date (the "ICDR Regulations") and pursuant to Board meeting held on September 08, 2022 the Board has approved the Preferential Issue of Equity Shares. The Company has subsequently received requisite approval from BSE Ltd, National Stock Exchange of India Ltd and members towards the aforesaid Preferential Issue and accordingly the Company on October 21, 2022 has allotted 2,057.88 lakhs warrants to VFSI Holding Pte. Ltd and the initial subscription of '' 8,000 Lakhs (being 25% of allotment value of warrants) has been received on October 21, 2022.

29. The Company lease assets primarily consists of office premises which are of short term in nature with the term of twelve months or less and low value leases. For these short term and low value leases, the Company recognizes the lease payments as an expense in the Statement of Profit and Loss on a straight line basis over the term of lease.

During the year, the Company has recognized '' 336 lakhs as rent expenses in the Statement of Profit and Loss (March 31, 2022''324 lakhs).

30. The Company has net investment in various Forms in its subsidiaries as on March 31, 2023 of '' 1 1,75,444 lakhs consist of (i) '' 12,60,140 lakhs investment in Equity, Preference share and Inter corporate Deposit classified as equity (Refer Note 3.2(a)) (ii) '' 1,33,369 lakhs, loan of long term in nature (Refer Note 3.2(b)) (iii) '' 65,605 lakhs, loan of short term in nature (Refer Note 3.4(d)) (iv) '' 3,094 lakhs, loans / advances to related party short term in nature (Refer Note 3.4(d)) (v) '' 99,992 lakhs Other financial assets receivable from subsidiary (Refer Note 3.4(e)) (vi) '' (3,86,756) lakhs loans from subsidiaries short term in nature (Refer note 3.11(a)) and (vii) '' (4,233) lakhs for other financial liabilities (Refer note 3.11 (c)). These investments are made by the company in equity, preference shares, loans and advances to its subsidiary for meeting the business requirement.

31. (a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party company (ultimate beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

36. The figures for the previous year are re-casted / re-grouped, wherever necessary.

Mar 31, 2022

² 7.5% Compulsory Convertible Redeemable Non-Cumulative Preference Shares (CCRPS)

Considering the said terms, these investments have been classified as equity and fair valued through Other Comprehensive Income.

³ 6% Compulsory Convertible Redeemable Non-Cumulative Preference Shares (CCRPS)

The issuer companies shall have a call option on the CCRPS which can be exercised by them in one or more tranches and in part or in full before the end of agreed tenure upto June, 2026 (5 years) of the said shares. In case the call option is exercised, the CCRPS shall be redeemed at an issue price equivalent to face value. The Company, however, shall have an option to convert the CCRPS into equity shares at any time during the tenure of such CCRPS. At the end of tenure and to the extent the issuer Companies or the CCRPS holders thereof have not exercised their options, the CCRPS shall be compulsorily converted into equity shares. On conversion, in either case, each CCRPS shall be converted into equity shares of corresponding value. In case the Issuer companies declare dividend on their equity shares, the CCRPS holders will also be entitled to the equity dividend in addition to the coupon rate of dividend.

Considering the said terms, these investments have been classified as equity and fair valued through Other Comprehensive Income.

⁴ Convertible Preference Shares (CPS)

Nature and purpose of other reserves:

a) Capital Reserve

The Capital Reserve had arisen pursuant to the composite scheme of arrangement on account of net assets taken over from Reliance Futura Limited.

b) Capital Reserve (arisen pursuant to scheme of amalgamation)

c) Securities Premium

Securities premium is created to record premium received on issue of shares. The Reserve is utilized in accordance with the provision of the Companies Act, 2013.

d) General Reserve (arisen pursuant to various schemes)

All below General Reserve arisen pursuant to schemes and shall not be and shall not for any purpose be considered to be a Reserve created by the Company.

i. General Reserves (arisen pursuant to composite scheme of arrangement)

ii. General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infraventures Private Limited)

iii. General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited)

e) Debentures Redemption Reserve

The Company is required to create a debenture redemption Reserve out of the profits of the Company for the purpose of redemption of debentures.

f) Treasury Shares

The Reserve comprises loss on sale of treasury shares.

h) Equity instruments/others through Other Comprehensive Income:

3.10(a1) Nature of security for term loans

(i) Series I (2018) listed, rated, secured redeemable non convertible debentures of '' 54,500 lakhs (March 31, 2021 '' 54,500 lakhs) are secured by first pari-passu charge with Rupee term loan at Sr. no. (iii), (vii) and (viii) over long term loans and advances of the Company.

(ii) 2500 Series III (2017) listed, rated, secured, redeemable non convertible debentures are secured by pledge over 60,30,44,493 equity shares of Coastal Andhra Power Limited (a subsidiary).

(iii) Rupee term loans from banks of '' 32,400 lakhs (March 31, 2021 '' 32,400 lakhs) are secured by first charge over long term loans and advances of the Company on pari passu basis NCD at Sr. no. (i) and Rupee term loan at Sr. no. (vii) and (viii) and also secured by pledge over 30% shares of Rosa Power Supply Limited (a subsidiary), which has been invoked by the bank on January 14, 2020.

(iv) Rupee term loans from banks of '' 1,895 lakhs (March 31, 2021 '' 2,004 lakhs) and foreign currency loan of '' 5,449 lakhs (March 31, 2021 '' 6,358 lakhs) are secured by first charge on all the assets of the 45 MW wind power project at Vashpet on pari passu basis with Rupee term loan at Sr. no. (vi).

(v) Rupee term loans from banks of '' 6,912 lakhs (March 31, 2021 '' 6,958 lakhs) are secured by first pari passu charge over current assets of the Company excluding receivable pertaining to 45 MW wind power project at Vashpet.

(vi) Rupee term loans from banks of '' 1 1,203 lakhs (March 31, 2021 '' 1 1,467 lakhs) are secured by first charge on all the assets of the 45 MW wind power project at Vashpet on pari passu basis with Rupee term loan and foreign currency loan at Sr. no. (iv).

(vii) Rupee term loans from banks of '' 6,300 lakhs (March 31, 2021 '' 6,300 lakhs) are secured by the first pari passu charge with NCD at Sr. no. (i) and Rupee term loan at Sr. no. (iii) & (viii) over long term loans and advances including receivables accrued out of such long term loans and advances of the Company and also secured by pledge over 30% shares of Rosa Power Supply Company Limited (a subsidiary) which has been invoked by the bank on January 14, 2020.

(viii) Rupee term loans from banks of '' 1 6,875 lakhs (March 31, 2021 '' 16,875 lakhs) are secured by the first pari passu charge with NCD at Sr. no. (i) and Rupee term loan at Sr. no. (iii) and (vii) over long term loans and advances of the Company and also secured by pledge over 30% shares of Rosa Power Supply Company Limited (a subsidiary) which has been invoked by the bank on January 14, 2020.

(ix) Current maturities of long term borrowings have been classified as current borrowings (Refer note 3.12(a))

3.10(a2) Terms of Repayment and Interest

(i) Series I (2018) listed rated secured redeemable non convertible debentures of '' 54,500 lakhs are repayable in 8 half yearly installments starting from September 30, 2021 and carry floating interest rate payable on half yearly basis.

(ii) During the previous year, terms of the 2500 Series III (2017) listed, rated, secured, redeemable non convertible debentures have been restructured and accordingly the NCDs are redeemable in 5 structured annual installments starting from June 30, 2031 and carry an interest rate of 8% per annum payable at the end of tenure on June 30, 2035. (Refer note 24)

(iii) Rupee term loans from banks of '' 32,400 lakhs (March 31, 2021 '' 32,400 lakhs) is repayable in 10 structured quarterly instalment commenced from October 31, 2017 and carry an interest rate of 11.45% per annum payable on a monthly basis.

(iv) Rupee term loans from bank is repayable in 59 structured quarterly instalments commenced from March 2015 and carry an

interest rate of 11.75% per annum payable on a monthly basis. The outstanding balance as at year end is '' 1,895 lakhs (March

31, 2021 '' 2,004 lakhs).

(v) Foreign currency loans is repayable in 42 structured quarterly instalments commenced from September 2013 and carry an interest rate of USD 6 month LIBOR plus 450 basis points per annum payable on a half yearly basis. The outstanding balance as at year end is '' 5,449 lakhs (March 31, 2021 '' 6,358 lakhs).

(vi) Rupee term loans from bank is repayable in 16 quarterly instalments commencing from June 2017 and carry an interest rate of 12.80% per annum payable on a monthly basis. The outstanding balance as at year end is '' 6,912 lakhs (March 31, 2021 '' 6,958 lakhs).

(vii) Rupee term loans from bank is repayable in 53 structured quarterly instalments commenced from September 2016 and carry an

interest rate of 12.85% per annum payable on a monthly basis. The outstanding balance as at year end is '' 1 1,203 lakhs (March

31, 2021 '' 1 1,467 lakhs).

(viii) Rupee term loans from bank is repayable in 12 quarterly instalments commencing from December 2019 and carry an interest rate of 11.62% per annum payable on a monthly basis. The outstanding balance as at year end is '' 6,300 lakhs (March 31, 2021 '' 6,300 lakhs).

(ix) Rupee term loans from bank is repayable in 11 structured quarterly instalments commencing from July 2017 and carry an interest rate of 11.45% per annum payable on a monthly basis. The outstanding balance as at year end is '' 16,875 lakhs (March 31, 2021 '' 16,875 lakhs).

(x) During the previous year, terms of the ICD payable to related parties has been changed and accordingly the ICD is repayable in 5 structured installments starting from June 30, 2031 and carry interest rate of 8% p.a. payable at the end of the tenure on June 30, 2035. (Refer note 24)

3.12(a1) Nature of security and terms of repayment

(i) Rupee loan from bank of '' 17,213 lakhs (March 31, 2021 '' 17,213 lakhs) is secured by subservient charge on the current assets of Reliance Power Limited (except pertaining to 45 MW Wind power project at Vashpet) and is repayable on demand.

4. Contingent liabilities and commitments

(a) Bank guarantees outstanding as at balance sheet date aggregating to '' 18,301 lakhs (March 31, 2021 '' 18,301 lakhs issued in favor of subsidiaries by banks.

(c) The Company has acted as a co-borrower for facilities aggregating to '' 55,542 lakhs (March 31, 2021 '' 46,796 lakhs availed by one of its subsidiary.

(d) The Appeals pending aggregating to '' 14,610 lakhs (March 31, 2021 '' 14,127 lakhs) and '' 30 lakhs (March 31, 202'' '' 35 lakhs) for direct and indirect tax respectively.

(e) In respect of subsidiaries, the Company has committed/ guaranteed to extend financial support in the form of equity or deb as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiaries, including an'' capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/debt servicing. Future cas flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors.

(f) As on March 31, 2022 there were no contracts remaining unexecuted on capital account.

5. Details of remuneration to auditors		'' in lakhs
	Year ended	Year ended
	March 31, 2022	March 31, 2021
As auditors
For statutory audit	39	39
For others	-	1
	39	40

6. Project status of Subsidiaries

(a) Coastal Andhra Power Limited (CAPL)

CAPL was incorporated to develop an imported coal-based Ultra Mega Power Project (UMPP) of 3,960 MW capacity located in Krishnapatnam, District Nellore, in the State of Andhra Pradesh.

CAPL had entered into a firm price fuel supply agreement which envisaged supply of coal from Indonesia with RCRPL, a wholly owned subsidiary of the Parent Company. The Government of Indonesia introduced a new regulation in September, 2010 which prohibited sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and required adjustment of sale price every 12 months. This regulation also mandated to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September, 2011. The new Indonesian regulations led to steep increase in price of coal imported from Indonesia, making the UMPP unviable and as a result CAPL could not draw down already tied-up debt for the project. The said issue was communicated to the power procurers of the UMPP with a view to enter into mutual discussions to arrive at a suitable solution to the satisfaction of all the stakeholders. The impact of new Indonesian regulation, being an industry-wide issue which impacted all imported coal-based projects in the Country, was also taken up with GoI through the Association of Power Producers.

RPL to approach this Hon''ble Commission with a substantive petition. Accordingly substantive petition is filed before CERC which and the petition is currently pending adjudication before CERC. This has been shown as receivable from procurer (Refer Note No.3.5(e))

As per the terms of SPA among PFC, RPL and CAPL, on termination of PPA under Article 3.3.3 of PPA, PFC has a right to seek transfer of ownership of CAPL to PFC / entity designated by PFC. Accordingly, RPL has requested PFC to initiate process of transfer of ownership of CAPL and invite a procurers'' meeting in that regard to decide on modalities of transfer. As PFC/ Procurers are yet to take action on the request of CAPL, R-Power has filed a Writ Petition in DHC for direction to PFC/ Procurers to buyback the SPV. Next date of hearing is awaited.

Government of Andhra Pradesh, citing that the project has not been developed for last 10 years; has issued three land resumption orders dated July 22, 2017, February 25, 2021 and February 27, 2021. Aggrieved by this, CAPL and RPL have filed a Writ Petitions (WP 33246 of 2017 and WP 5058 of 2021) in High Court of Andhra Pradesh at Amaravati praying for setting aside the relevant land resumption orders. The High Court vide orders dated October 06, 2017 and March 02, 2021 directed both the parties to maintain a "Status Quo". Next date of hearing is awaited.

(b) Samalkot Power Limited (SMPL)

(i) With respect to 1508 Mega Watt (MW) (754 MW X 2 ) Plant

There is a continued uncertainty regarding availability of natural gas in the country for operation of the plant, and while SMPL is actively pursuing with relevant authorities for securing gas linkages / supply at commercially viable prices / generation opportunities, it is also evaluating alternative arrangements / approaches, including marketing of equipment pursuant to an agreement with US-EXIM, to deal with the situation. SMPL is confident of arriving at a positive resolution to the foregoing in the foreseeable future and therefore, the carrying amount of capital work in progress is considered recoverable.

(ii) With respect to 754 MW Plant

The Company, had entered into a Memorandum of Understanding (MOU) with the Government of Bangladesh (GoB) for developing a gas-based project of a 3000 MW capacity in a phased manner. Pursuant to the above, Reliance Bangladesh LNG and Power Limited (RBLPL), subsidiary of the Company has taken steps to conclude a long-term power purchase agreement (PPA) for supply of 718 MW (net) power from a combined cycle gas-based power plant to be set up at Meghnaghat near Dhaka in Bangladesh.

RBLPL has signed all the project agreements (Power Purchase Agreement, Implementation Agreement, Land Lease Agreement and Gas Supply Agreement) with Government of Bangladesh authorities on September 01, 2019, and also inducted a strategic partner JERA Power International (Netherlands) - a subsidiary of JERA Co. Inc. (Japan) to invest 49% equity in RBLPL on September 02, 2019. Samsung C&T (South Korea) (SCTK) has been appointed as the EPC contractor for the Bangladesh project. SMPL has signed an Equipment Supply Contract on March 1 1, 2020 to sell equipment of one module. All the project lenders including ADB, JBIC and NEXI have approved the financing of the project and financing agreements were signed in July 2020. All the conditions for achieving financial closure were satisfied and Financial Closure achieved and NTP issued by Samsung on February 02, 2021. Customs authorities have approved the export of equipment by Samalkot Power and first consignment was exported on March 03, 2021. All remaining equipment under the contract has been exported and the last shipment was exported in November, 2021. SMPL has realized the proceeds for transfer of one Module equipment in full and the proceeds have been used to repay a major portion of the outstanding US Exim loan. A separate reserve of ~ Rs 25,500 lakhs has also been created out of the sale proceeds as per the agreement with US Exim Bank. Having regard to the above plans, and the continued financial support from the Company, the management believes that SMPL would be able to meet its financial and other obligations in the foreseeable future.

7. Applicability of NBFC Regulations

The Company, based on the objects given in the Memorandum and Articles of Association, its role in construction and operation of power plants through subsidiaries and other considerations, has been legally advised that it is not covered under the provisions of Non-Banking Financial Company as defined in the Reserve Bank of India Act, 1 934 and accordingly, is not required to be registered under section 45 IA of the said Act.

8. Status of Dadri Project

The Company proposed to develop a 7,480 MW gas-based power project to be located at Dadri, District Hapur, Uttar Pradesh in the year 2003. The Government of Uttar Pradesh (the GoUP) in the year 2004 acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. However, certain land owners challenged the acquisition of land by the GoUP for the project before the Hon''ble Allahabad High Court. The Hon''ble Allahabad High Court quashed a part of land acquisition proceedings. Subsequently, in the appeals filed by the Company and land owners against the findings of the Hon''ble Allahabad High Court, the Hon''ble Supreme Court held the land acquisition proceedings as lapsed but upheld the right of the Company to recover the amount paid in any other proceeding. The Company has represented to the GoUP seeking compensation towards cost incurred on the land acquisition as well as other incidental expenditure thereto. Considering the above facts, the Company has classified assets related to the Dadri project under the head ''Assets classified as held for sale''. The Company has fully provided for receivables of '' 15,005 lakhs against the Dadri project. However, GoUP did not pay the balance agreed amount hence the Company invoked Arbitration Clause. Arbitration proceedings are under progress and next sitting of the Tribunal is on June 06, 2022.

The above sensitivity analysis is 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. While 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.

(iv) The above defined benefit gratuity plan was administrated 100% by Life Insurance Corporation of India (LIC).

(v) Defined benefit liability and employer contributions: The Company will pay demand raised by LIC towards gratuity liability on time to time basis to eliminate the deficit in defined benefit plan.

The weighted average duration of the defined benefit obligation is 3.19 years (March 31, 2021 - 4.48 years).

(vii) The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit.

Details of material transactions: Service income includes '' 3,960 lakhs from SPL, '' 2,400 lakhs from RPSCL (March 31,2021: SPL '' 4,950 lakhs, RPSCL '' 2,400 lakhs), Interest income on ICD given includes '' 5,467 lakhs to RCRPL (March 31, 2021: '' 5,703 lakhs), Interest expense on ICD includes '' 7,482 lakhs to Rinfra (March 31, 2021: '' 9,705 lakhs to Rinfra), Reimbursement of expenses and advances given includes '' 4,817 lakhs to CAPL (March 31, 2021: '' 4,204 lakhs), Refund of ICD given includes '' 17 lakhs from RCGL (March 31, 2021: '' 1,820 lakhs), Fair valuation gain on NCD and ICD from RCAS of '' Nil (March 31, 2021: '' 28,954 lakhs), Inter corporate deposit given includes '' 99 lakhs to RCGL and '' 8 lakhs to VIPL (March 31, 2021: '' 3,268 lakhs to RCGL and '' 1,263 lakhs to VIPL), Investment in Equity shares includes SPL '' 5,35,805 lakhs and RPSCL '' 296,338 lakhs (March 31, 2021: SPL '' 547,895 lakhs and RPSCL '' 291,747 lakhs), Investment in Preference shares includes SPL '' 439,195 lakhs, (March 31, 2021: '' 449,105 lakhs), Loans and advances including Inter- corporate deposit and other receivables includes '' 34,873 lakhs from RCGL (March 31, 2021: '' 34,791 lakhs), Short term borrowing - Inter- corporate deposit includes '' 301,653 lakhs from RPSCL (March 31, 2021: '' 301,653 lakhs), Bank/ Corporate Guarantee issued to banks/ financial institutions includes '' 3,09,257 lakhs to VIPL and '' 1,42,053 lakhs to SMPL (March 31, 2021: '' 279,304 lakhs to VIPL and '' 183,462 lakhs to SMPL).

(iii) Other transactions

â¢ 100% of equity shares of Sasan Power Limited

â¢ 100% of equity shares of Dhursar Solar Power Private Limited

â¢ 77% of equity shares of Rajasthan Sun Technique Energy Private Limited

â¢ 98% of equity shares of Vidarbha Industries Power Limited

â¢ 100% of preference shares of Sasan Power Limited

â¢ 100% of preference shares of Dhursar Solar Power Private Limited

â¢ 66% of preference shares of Rajasthan Sun Technique Energy Private Limited

â¢ 100% of equity shares of Reliance Natural Resources Limited

â¢ 99.996% of equity shares of Coastal Andhra Power Limited

â¢ 100% of equity shares of Samalkot Power Limited

The Company has given commitments / guarantees for loans taken by SPL, SMPL, VIPL, DSPPL and RSTEPL. (Refer note 4(e)).

(iv) The list of investment in subsidiaries along with proportion of ownership interest held and country of incorporation are disclosed in note no. 2(c)(V) of consolidated financial statement

(v) The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

(vi) Transactions and balances with related parties which are in excess of 10% of the total revenue and 10% of net worth respectively of the Company are considered as material transactions.

(vii) Transactions with related parties are made on terms equivalent to those that prevail in case of arm''s length transactions.

(viii) During the year 2021-22, the Company has paid sitting fees of '' 2 lakhs (March 31, 2021 '' 2 lakhs) to Individual mentioned in B (I) (b) above

The fair value of financial instruments is determined using discounted cash flow analysis.

The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.

For financial assets and liabilities that are measured at fair value, the carrying amount is equal to the fair values.

Note

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

There are no transfers between any levels during the year.

The Company''s policy is to recognise transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.

(a) Credit risk

Credit risk management

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

(b) Liquidity risk

Periodic budgets and rolling forecasts are prepared at the level of operating subsidiaries as regular practice and in accordance with limits specified by the Company. There is delay/ default in repayment of loans for '' 93,772 lakhs as at the end of the financial year. The Company has been pursuing proposed strategic transactions/ sale of assets and overall financial restructuring, when executed, would make available the required liquidity for the continuing business and would also provide an extended maturity period for repayment of restructured balance debt.

(i) Foreign currency risk

(ii) Interest rate risk

17. Capital Management (a) Risk Management

18. Segment reporting

19. Exchange Difference on Long Term Monetary Items

As explained above in note 2.1(m) with respect to accounting policy followed by the Company for recording of foreign exchange differences, the Company has adjusted the value of Plant and equipment by loss of '' 187 lakhs (March 31, 2021 gain of '' 185 lakhs) towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets.

20. Corporate social responsibility (CSR)

As per the section 135 of the Act, the Company is required to spend Rs Nil towards CSR based on profitability of the Company, against the same '' Nil has been spent by the Company.

22. During the previous year, the Company had assigned its ICD Rs 14,705 lakhs (including interest thereon Rs 2,469 lakhs) taken from CLE Pvt. Ltd. to Reliance Infrastructure Ltd. and ICD taken by Reliance Cleangen Limited Rs 19,156 lakhs from CLE Pvt. Ltd. (including interest thereon Rs 4,626 lakhs) to Reliance Infrastructure Limited.

23. The Company has incurred losses during the year and has outstanding obligations payable to lenders and its current liabilities exceed current assets as at March 31, 2022 by '' 5,68,732 lakhs (March 31, 2021: Rs 6,06,590 lakhs). The Company is confident of meeting its obligations by generating sufficient and timely cash flows through time bound monetization of its assets, as also envisages to realize amount from regulatory/ arbitration claims. Notwithstanding the dependence on these material uncertain events, the Company is confident that such cash flows would enable it to service its debt, realize its assets and discharge its liabilities in the normal course of its business. The Company has been in discussion with its lenders for resolution of its debt. It has been agreed by the lenders for a resolution outside the Insolvency and Bankruptcy Code, 2016 (IBC). Accordingly, the standalone financial statement of the Company have been prepared on a Going Concern Basis.

24. During the previous year, the Company had outstanding NCD and ICD amounting to '' 29,057 lakhs and '' 18,822 lakhs (including interest accrued thereon) respectively. The terms of the NCDs and ICD have been changed w.e.f. June 30, 2020 and August 01, 2020 respectively which resulted fair valuation gain of '' 28,954 lakhs included under other income in F.Y. 2020-21. The same is in accordance with Ind AS 109 - Financial Instruments, Ind AS 107 - Financial Instruments - Disclosure and Ind AS 32 - Financial Instruments - Presentation.

As at March 31, 2022 the Company has overdue of '' 93,772 lakhs (March 31, 2021 '' 77,211 lakhs) included in the current maturities of long term debt in note no. 3.12(c) and '' 66,551 lakhs (March 31, 2021 '' 39,143 lakhs) included in interest accrued in note no. 3.12(c).

(*) The Company has entered into settlement agreement with the lender on September 27, 2021 and accordingly delay of days has been considered upto September 26, 2021(Refer note 27).

27. The Company has entered into a Composite Settlement Agreement with one of the lenders in pursuance whereof the Company was granted ''standstill'' till December 26, 2021 and the same was extended till March 26, 2022. Further extention of "standstill" on the same terms and conditions upto June 25, 2022 is under consideration by the lender. The interest and principal amounts due and payable on the Debentures and Rupees Term Loans shall be settled accordingly.

28. During the year, the Company has received approval from its members for issue and allotment of 5,950 lakhs equity shares ("Equity Shares") and 7,300 lakhs warrants convertible into equivalent number of equity shares ("Warrants") on preferential basis, at the issue price of '' 10 each, to Rinfra (listed promoter company) amounting to '' 59,500 Lakhs against equity shares and '' 18,250 lakhs, as amount equivalent to 25% of issue price against warrants, by conversion of its existing debt of an equivalent amount. The balance 75% on the said warrants shall be paid if and when the right attached to the warrants is exercised by Rinfra. The Company has also received listing and trading approval from National Stock Exchange Of India Limited (NSE) and BSE Limited (BSE) for the said equity shares.

29. During the year an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, has been filed against the Company and its wholly owned subsidiary RNRL by Piramal Capital and Housing Finance Limited in relation to financial claim of '' 52,610 lakhs.

30. The Company 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 recognizes the lease payments as an expense in the Statement of Profit and Loss on a straight line basis over the term of lease.

During the year, the Company has recognized '' 324 lakhs as rent expenses in the Statement of Profit and Loss (March 31, 2021 '' 386 lakhs).

31. 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, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Group will assess the impact once the subject rules under the Code are notified and will give appropriate effect to the same in the financial statements when the code becomes effective.

32. The Company has outstanding net investment in various Forms in its subsidiary as on March 31, 2022 of '' 13,25,182 lakhs consist of (i) '' 13,89,843 lakhs investment in Equity, Preference share and Inter corporate Deposit classified as equity (Refer Note 3.3(a)), (ii) '' 1,33,360 lakhs, loan of long term in nature (Refer Note 3.3(b)), (iii) '' 65,203 lakhs, loan of short term in nature (Refer Note 3.5(d)), (iv) '' 2,200 lakhs, loans / advances to related party short term in nature (Refer Note 3.5(d)), (v) '' 81,276 lakhs Other financial assets receivable from subsidiary (Refer Note 3.5(e)), (vi) '' (3,42,468) lakhs loans from subsidiaries short term in nature (Refer Note 3.12(a)) and (vii) '' (4,233) lakhs for other financial liabilities (Refer Note 3.12(c)). These investments are made by the company in equity, preference, loans and advances to its subsidiary for meeting the business requirement.

33. (a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Ratios have been computed as under:

â¢ Current Ratio: Current Assets/Current Liabilities

â¢ Debt Equity Ratio = Total Debt / Equity excluding Revaluation Reserve

â¢ Debt Service Coverage Ratio = Earnings before Interest and Tax and exceptional items / (Interest on Long Term and Short Term Debt for the year Principal Repayment of Long Term Debt for the year).

â¢ Return on Equity = Net profit after tax / Shareholder''s fund

â¢ Inventory turnover ratio = Turnover / Average inventory

â¢ Trade Receivables turnover ratio = Net credit turnover / Average Receivables

â¢ Trade Payables turnover ratio = Net credit purchase / Average Payables

â¢ Net Capital turnover ratio = Turnover / Working Capital

â¢ Net Profit ratio = Net Profit after tax / Turnover

â¢ Return on capital employed = EBIT / Capital employed

â¢ Return on Investment = Income generated from investment / Average investments

*Decrease mainly due to higher scheduled repayment in current year and one time gain of '' 28,954 lakhs on NCD and ICD restructuring of one of the lender recognized in FY 2020-21.

**Decrease mainly due to one time gain of '' 28,954 lakhs on NCD and ICD restructuring of one of the lender recognized in FY 2020-21.

38. The figures for the previous year are re-casted / re-grouped, wherever necessary.

Mar 31, 2018

2.2 Critical accounting estimates and judgments

The preparation of the financial statements under Ind AS requires management to take decisions and make estimates and assumptions that may impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(a) Useful life of Property, Plant and Equipment

The Company has estimated its useful life of wind power assets based on the expected wear and tear, industry trends etc. In actual, the wear and tear can be different. When the useful life differ from the original estimated useful life, the Company will adjust the estimated useful life accordingly. It is possible that the estimates made based on existing experience are different to the actual outcomes within the next financial period and could cause a material adjustment to the carrying amount of Property, Plant and Equipment.

(b) Income taxes

There are transactions and calculations for which the ultimate tax determination is uncertain and would get finalized on completion of assessment by tax authorities. Where the final tax outcome is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

The Company is eligible to claim tax holiday on income generated from wind power generation. The deferred tax on temporary differences which are reversing after the tax holiday period have been estimated considering future projections and Company''s plan to start claiming tax holiday in certain years. It is possible that this estimate may be different to the actual outcome within the next financial periods and could cause material adjustments to the deferred tax recognized in financial statements. (Refer note 15)

Deferred tax assets are recognized 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 judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The Company measured its investments in equity shares of subsidiaries at fair value and certain financial assets and liabilities for financial reporting purposes.

The fair values of investments in subsidiaries are not quoted in an active market and are determined by using valuation techniques, primarily earnings multiples and discounted cash flows. The models used to determine fair values including estimates/ judgments involved are validated and periodically reviewed by the management. The inputs used in the valuation models include unobservable data of the Companies which are categorized within level III fair value measurements. They are based on historical experience, technical evaluation and other factors, including expectations of future events. Considering the level of estimation involved and unobservable inputs, the Company has engaged a third party qualified valuer to perform the valuation. Based on the actual performance of respective subsidiaries project, the inputs considered for valuation may vary materially and could cause a material adjustment to carrying amount of investments. (Refer note 16 and 17).

(d) Estimation of employee benefit obligation

Refer note 2.1 (o)

7.5% Compulsory Convertible Redeemable Non-Cumulative Preference Shares (CCRPS)

1The issuer companies shall have a call option on the CCRPS which can be exercised by them in one or more tranches and in part or in full before the end of agreed tenure (20 years) of the said shares. In case the call option is exercised, the CCRPS shall be redeemed at an issue price (i.e. face value and premium). The Company, however, shall have an option to convert the CCRPS into equity shares at any time during the tenure of such CCRPS. At the end of tenure and to the extent the issuer Companies or the CCRPS holders thereof have not exercised their options, the CCRPS shall be compulsorily converted into equity shares. On conversion, in either case, each CCRPS shall be converted into equity shares of corresponding value (including the premium applicable thereon). In case the Issuer companies declare dividend on their equity shares, the CCRPS holders will also be entitled to the equity dividend in addition to the coupon rate of dividend.

Considering the said terms, these investments have been classified as equity and fair valued through Other Comprehensive Income.

Nature and purpose of other reserves:

(a) Capital Reserve

The Capital Reserve had arisen pursuant to the composite scheme of arrangement on account of net assets taken over from Reliance Futura Limited. (Refer note d(i) below).

(b) Capital Reserve (arisen pursuant to scheme of amalgamation)

The Capital Reserve had arisen pursuant to the composite scheme of arrangement with erstwhile Reliance Clean Energy Private Limited. The said scheme was sanctioned by Hon''ble High Court of Bombay vide order dated April 05, 2013. The capital Reserve shall be a Reserve which arose pursuant to the above scheme and shall not be and shall not for any purpose be considered to be a Reserve created by the Company.

(c) Securities Premium Account

Securities premium account is created to record premium received on issue of shares. The Reserve is utilized in accordance with the provisions of the Companies Act, 2013.

(d) General Reserve (arisen pursuant to various schemes)

All below General Reserve arisen pursuant to schemes and shall not be and shall not for any purpose be considered to be a Reserve created by the Company.

(i) General Reserves (arisen pursuant to composite scheme of arrangement)

(ii) General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infraventures Private Limited)

(iii) General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited)

(e) Debentures Redemption Reserve

The Company is required to create a debenture redemption reserve out of the profits of the Company for the purpose of redemption of debentures.

(f) Foreign currency monetary item translation difference account

The Company has opted to continue the Previous GAAP policy for accounting of foreign exchange differences on long term monetary items. This Reserve represents foreign exchange accumulated on long term monetary items which are for other than depreciable assets. The same is amortized over the balance period of such long term monetary items. (Refer note 2.1(m) (ii))

(g) Treasury Shares

The Reserve comprises loss on sale of treasury shares. The RPET held Nil shares (March 31,2017: 85,00,000 shares). (Refer note 8)

(h) Equity instruments through Other Comprehensive Income:

The Company has elected to recognize changes in the fair value of investments in equity instruments in subsidiaries in other comprehensive income. The changes are accumulated within the FVOCI equity instruments Reserve within equity. The Company transfers amount from this Reserve to retained earnings when the relevant equity securities are derecognized.

3.10(a1) Nature of security for term loans

(i) Series I (2018) 12.18% listed redeemable non convertible debentures of Rs, 75,000 lakhs (March 31, 2017 Rs, Nil) are secured by first pari-passu charge over long term loans and advances of the Company.

(ii) Rupee loans from banks of Rs, Nil (March 31, 2017 Rs, 32,000 lakhs) are secured by first charge over long term loans and advances of the Company on pari passu basis.

(iii) Rupee loans from banks of Rs, 34,380 lakhs (March 31, 2017 Rs, Nil) are secured by first charge over long term loans and advances of the Company on pari passu basis.

(iv) Rupee loans from banks of Rs, 2,383 lakhs (March 31, 2017 Rs, 2,463 lakhs) and foreign currency loan of Rs, 9,619 lakhs (March 31, 2017 Rs, 10,950 lakhs) are secured / to be secured by first charge on all the immovable and movable assets of the 45 MW wind power project at Vashpet on pari passu basis.

(v) Rupee loans from banks of Rs, 15,000 lakhs (March 31, 2017 Rs, 20,000 lakhs) are secured by first pari passu charge over current assets of the Company including receivable excluding the assets acquired under scheme of amalgamation with erstwhile Reliance Clean Power Private Limited.

(vi) Rupee loans from banks of Rs, 13,500 lakhs (March 31, 2017 Rs, 1 9,500 Lakhs) are secured by the residual charge over current assets of the Company including receivable excluding the assets acquired under scheme of amalgamation with erstwhile Reliance Clean Power Private Limited.

(vii) Rupee loans from banks of Rs, 12,157 lakhs (March 31, 2017 Rs, 1 2,407 lakhs) are secured by first charge on all the immovable and movable assets and receivables of the 45 MW wind power project at Vashpet on pari passu basis.

(viii) Rupee loans from banks of Rs, 10,500 lakhs (March 31, 2017 Rs, 10,500 lakhs) are secured by the first pari passu charge over long term loans and advances including receivables accrued out of such long term loans and advances of the Company .

(ix) Rupee loans from banks of Rs, 21,560 lakhs (March 31, 2017 Rs, 33,800 lakhs) are secured by the first pari passu charge over long term loans and advances of the Company.

(x) Rupee loans from banks of Rs, 68,125 lakhs (March 31, 2017 Rs, 71,335 lakhs) are secured by the first pari passu charge over long term loans and advances of the Company.

(xi) Current maturities of long term borrowings have been classified as other financial liabilities (Refer note 3.13(c))

3.10(a2) Terms of Repayment and Interest

(i) Series I (2018) 12.18% listed redeemable non convertible debentures of Rs, 75,000 lakhs are repayable in 8 half yearly installments starting from September 30, 2021 and carry an interest rate of 12.18% per annum payable on half yearly basis.

(ii) Rupee loans from banks of Rs, Nil (March 31, 2017 Rs, 32,000 lakhs) was repayable in one instilment on September 30, 2017 and carried an interest rate of 11.23% per annum payable on a monthly basis.

(iii) Rupee loans from banks of Rs, 34,380 lakhs (March 31, 2017 Rs, Nil) is repayable in 10 structured quarterly installment commenced from October 31, 2017 and carry an interest rate of 10.50% per annum payable on a monthly basis.

(iv) Rupee term loans is repayable in 59 quarterly installments commenced from March 2015 and carry an interest rate of 11.75% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 2,383 lakhs (March 31, 2017 Rs, 2,463 lakhs).

(v) Foreign currency loans is repayable in 42 quarterly installments commenced from September 2013 and carry an interest rate of USD 6 month LIBOR plus 4.5% per annum payable on a half yearly basis. The outstanding balance as at year end is Rs, 9,618 lakhs (March 31, 2017 Rs, 10,950 lakhs).

(vi) Rupee term loans from bank is repayable in 16 quarterly installments commencing from June 2017 and carry an interest rate of 12.35% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 15,000 lakhs (March 31, 2017 Rs, 20,000 lakhs).

(vii) Rupee term loans from bank is repayable in 40 monthly installments commenced from March 2017 and carry an interest rate of 10.70% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 1 3,500 lakhs (March 31, 2017 Rs, 19,500 lakhs).

(viii) Rupee term loans from bank is repayable in 53 structured quarterly installments commenced from September

2016 and carry an interest rate of 11.60% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 12,157 lakhs (March 31, 2017 Rs, 12,407 lakhs).

(ix) Rupee term loans from bank is repayable in 12 quarterly installments commencing from December 2019 and carry an interest rate of 10.72% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 10,500 lakhs (March 31, 2017 Rs, 10,500 lakhs).

(x) Rupee term loans from bank is repayable in 16 structured monthly installments commencing from July 2017 and carry an interest rate of 10.5% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 21,560 lakhs (March 31, 2017 Rs, 33,800 lakhs).

(xi) Rupee term loans from bank is repayable in 11 structured quarterly installments commencing from July 2017 and carry an interest rate of 10.5% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 68,125 lakhs (March 31, 2017 Rs, 71,335 lakhs).

3.10(a3) The amortized cost disclosed above is net off incidental cost of borrowings aggregating of Rs, 1,922 lakhs (March 31,2017 Rs, 3,048 lakhs).

3.13(a1) Nature of security and terms of repayment

(i) Working capital loan is secured by first hypothecation and charge on all receivables of the Company, (excluding assets acquired under the merger scheme with erstwhile Reliance Clean Power Private Limited) both present and future on pari passu basis and is repayable on demand and carry an interest rate of 11.50% per annum payable on a monthly basis.

(ii) Series I (2017) 10.60% listed redeemable non convertible debentures is secured by pledge of 2.30% of outstanding equity shares of a subsidiary Rosa Power Supply Company Limited which is redeemable within a period of 364 Days from the date of allotment (i.e. January 24, 201 7) and carry an interest rate of 10.60% per annum payable on a quarterly basis.

(iii) Series II (2017) 10.60% listed redeemable non convertible debentures is secured by pledge of 9.50% of outstanding equity shares of a subsidiary Rosa Power Supply Company Limited which is redeemable within a period of 364 Days from the date of allotment (i.e. March 16, 2017) and carry an interest rate of 10.60% per annum payable on a quarterly basis.

(iv) Loan against fixed deposit is secured by first pari passu charge over the fixed deposit of the Company. The loan is repayable in full on September 26, 2018 and carry an interest rate of 6% per annum payable on a monthly basis.

Unsecured

(i) 2,500 Series I (2016) 10.20% unsecured redeemable non convertible debentures are redeemable within a period of 364 days and carry an interest rate of 10.20% per annum payable on quarterly basis.

(ii) 2,500 Series III (2017) 10.20% unsecured redeemable non convertible debentures are redeemable within a period of 354 days and carry an interest rate of 10.20% per annum payable on a half yearly basis.

(iii) (a) Commercial paper of Rs, 5,000 lakhs have a tenure of 362 days from the date of issue i.e. April 26, 2017

and discount rate of 8.75% per annum.

(b) Commercial paper of Rs, 2,500 lakhs have a tenure of 309 days from the date of issue i.e. June 15, 2017 and discount rate of 8.75% per annum.

(c) Commercial paper of Rs, 2,500 lakhs have a tenure of 341 days from the date of issue i.e. June 15, 2017 and discount rate of 8.75% per annum.

(iv) Inter corporate deposits from Reliance Nippon Life assets management are repayable within one year and carry an interest rate of 12.50% per annum.

(v) Inter corporate deposits from Reliance Infrastructure Limited are repayable within one year and carry an interest rate of 10.50% per annum.

@ Amount is below the rounding off norm adopted by the Company

4) Contingent liabilities and commitments

(a) Guarantees including corporate guarantee issued for subsidiary companies aggregating to Rs, 610,743 lakhs (March 31, 2017 Rs, 701,915 lakhs). Refer note 6(a) with respect to Coastal Andhra Power Limited.

(b) In case of CPPL, as per terms of bid bond of Uttar Pradesh Power Corporation Limited (UPPCL), the Company had provided bank guarantee of Rs, 7,386 lakhs and which has since been invoked by UPPCL. The High Court has ruled that the above invocation is subject to the order passed by the High Court. Consequently, the Company has shown the guarantee invoked as the amount payable to Canara Bank and an equivalent amount has been shown as recoverable from UPPCL. Subsequently, the Company has made payment to the bank of Rs, 7,488 lakhs along with interest (Rs, 102 lakhs). However, the bank has levied bank charges of Rs, 1,384 lakhs on issue of bank guarantee at regular rate than the rate as agreed upon. The bank charges levied by the bank have been disputed by the Company.

(c) In respect of subsidiaries, the Company has committed/ guaranteed to extend financial support in the form of equity or debt as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiaries, including any capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/debt servicing.

Future cash flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors.

(d) As on March 31, 2018 there were no contracts remaining unexecuted on capital account.

âIncludes Rs, 10 lakhs paid to Price Waterhouse, one of the earlier Joint Auditors.

6) Project status of Subsidiaries

(a) Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been incorporated to develop an Ultra Mega Power Project (UMPP) of 3,960 MW capacity located in Krishnapatnam, District Nellore, based on imported coal.

CAPL had entered into a firm price fuel supply agreement which envisaged supply of coal from Indonesia with Reliance Coal Resources Private Limited (RCRPL), a wholly owned subsidiary of the Company. In view of below mentioned new regulation, RCRPL cannot supply coal at the agreed price, because of which there is a risk of inability to pass through market linked prices of imported coal for the project, whereas the power needs to be supplied at a pre-agreed tariff as per the terms of Power Purchase Agreement (PPA) dated March 23, 2007. The Government of Indonesia introduced a new regulation in September, 2010 which prohibits sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and requires adjustment of sale price every 12 months. This regulation also mandates to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September, 2011. The said issue was communicated to the power procurers and also to the Government of India through the Association of Power Producers to arrive at a suitable solution to the satisfaction of all the stakeholders.

Since no resolution could be arrived, CAPL invoked the dispute resolution provision of PPA. The procurers have also issued a notice for termination of PPA and have raised a demand for liquidated damages of Rs, 40,000 lakhs (including bank guarantee of Rs, 30,000 lakhs, which has been provided by the Company on behalf of CAPL).

CAPL has filed a petition before the Hon''ble High Court at Delhi inter-alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The Court vide its order dated March 20, 2012 has prohibited the Procurers from taking any coercive steps against CAPL. The single judge of the Delhi High Court vide order dated July 02, 201 2 dismissed the petition and the appeal filed by CAPL against the said order is pending before the Division Bench of the Delhi High Court.

CAPL has also filed a petition before the Central Electricity Regulatory Commission (CERC) without prejudice to the proceedings pending before the Delhi High Court and the arbitration process has already been initiated. During the course of the CERC proceedings, the power procurers contended that the petition could not be taken up for hearing by CERC since the matter was pending at High Court. CAPL, in response contended that both proceedings are different and independent. The CERC petition did not raise the issue of notice of termination. Considering appeal is pending before the Delhi High Court, CERC has disposed off the petition vide its order dated August 06, 2015 with a liberty to the Petitioner to approach the Commission at an appropriate stage in accordance with law.

(b) Samalkot Power Limited (SMPL)

(i) With respect to 1508 Mega Watt (MW) (2 units of 754 MW each) Plant

There is continued uncertainty regarding availability of natural gas in the country for operation of the plant, and while the SMPL is actively pursuing with relevant authorities for securing gas linkages/ supply at commercially viable prices/ generation opportunities, it is also evaluating alternative arrangements/ approaches to deal with the situation. SMPL is confident of arriving at a positive resolution to the foregoing in the foreseeable future and therefore the carrying amount of capital work in progress is considered recoverable.

(ii) With respect to 754 MW Plant

The Company had entered into a Memorandum of Understanding (MOU) with the Government of Bangladesh (GoB) for developing a gas project of 3000 MW capacity in a phased manner. Pursuant to the above, Reliance

Bangladesh LNG & Power Limited (RBLPL) a subsidiary of the Company, is taking steps to conclude a long term Power Purchase Agreement for supply of 718 MW (net) power from combined cycle gas based power plant to be set up at Meghnaghat near Dhaka in Bangladesh. In this regard, a letter of intent has been entered between the Company and Bangladesh Power Development Board on July 26, 2017.

SMPL has entered into MOU on March 21, 2017 for sale of the Plant to subsidiary for a consideration not less than its carrying amount. Further, during the year, RBLPL has issued letter of award to SMPL''s EPC contractor Reliance Infrastructure Limited for setting up of 745 MW gas based combined cycle power plant at Meghnaghat, Bangladesh with the assets of SMPL. SMPL expects to enter into definitive sale agreement in the next financial year. SMPL is confident that the subsidiary will be able to achieve financial closure and remit the sale proceeds.

Having regard to the above plans and the continued financial support from the Company, management believes that SMPL would be able to meet its financial and other obligations in the foreseeable future. Accordingly, the financial statements of SMPL have been prepared on a going concern basis.

JIPL, a wholly owned subsidiary of Reliance Power Limited (RPower), has been set up to develop Ultra Mega Power Project of 3,960 MW capacity located in Tilaiya, Hazaribagh District, Jharkhand. Tilaiya Ultra Mega Power project (UMPP) was awarded to Reliance Power Limited through International Competitive Bidding (ICB), under the UMPP Policy. Consequently, JIPL was handed over to Reliance Power Limited on August 07, 2009 by Power Finance Corporation (PFC). JIPL has signed a 25 years Power Purchase Agreement (PPA) with 18 procurers in 10 states. For fuel security, the Project was allocated Kerendari BC captive coal mine block.

Due to various reasons, Reliance Power Limited gave a notice for termination of PPA on April 28, 2015 as per the terms of the PPA and the option available therein. The Procurers have agreed to the termination of the PPA on November 03, 2015 and have agreed to take over/purchase the shares held by Reliance Power Ltd (RPower) in JIPL as per the terms of mutually agreed draft of Share Transfer Agreement (STA) and discussion held between RPower and the procurers.

As per the term of Share Transfer Agreement (STA) it has been agreed that JIPL has to be acquired by the Procurers at the purchase price equivalent to the sum of '' 1 1,279 lakhs towards net amount paid by Rpower as per Share Purchase Agreement dated August 07, 2009 (after adjustment for bank balance and other assets not being taken over now) and subsequent expenditure incurred by JIPL on Land. As per the terms of STA, in addition to the termination payment, the lead procurer (Jharkhand Urja Vikas Nigam Limited) has also agreed to make payment towards acquisition of the Geological Report (GR) within six months from the closing date of STA on certain conditions. The payment of '' 3,445 Lakhs shall be contributed by the Procurers in proportion to the allocated contracted capacity from Tilaiya UMPP. Therefore, such GR ('' 3,445 Lakhs) has been shown under CWIP and corresponding liability is included as the Inter Corporate Deposit (ICD) of RPower, as contra items in the books of JIPL. As per the terms of STA, in case lead procurer does not make the aforesaid payment of '' 3,445 Lakhs within 6 (six) months from the closing date for any reason whatsoever, RPower shall retain the Geological Report and the entry towards payable to RPower against the Geological report/ICD in the books of JIPL shall be removed forthwith. Procurers have also agreed to discharge and release the Bank Guarantee aggregating to '' 60,000 lakhs (Procurer Bank Guarantees).

All the Procurers have deposited their respective share of termination payment and released Procurer Bank Guarantees with the Lead Procurer (JUVNL). Presently all the formalities/ pre-requisites for acquisition of JIPL by Procurers have been completed and procurers are ready in all aspects to acquire JIPL from RPower as per the provisions of the PPA.

7) Applicability of NBFC Regulations

The Company, based on the objects given in the Memorandum and Article of Association, its role in construction and operation of power plants through subsidiaries and other considerations, has been legally advised that it is not covered under the provisions of Non-Banking Financial Company as defined in the Reserve Bank of India Act, 1934 and accordingly, is not required to be registered under section 45 IA of the said Act.

8) Employee Stock Option Scheme (ESOS)

Pursuant to the approval accorded by the shareholders on September 30, 2007 under Section 81(1A) of the Companies Act, 1956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. The Board of Directors of the Company have constituted its ESOS Compensation Committee to operate and monitor the ESOS Scheme which is administered through Reliance Power ESOS Trust ("RPET"). The ESOS Scheme mentions that the employees of the Company are entitled for grant of stock options (equity shares), based on the eligibility criteria set in ESOS Plan of the Company.

The ESOS Compensation Committee of the Board of Directors (the Board) of the Company approved a grant of 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 08, 2010. The options were granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan. In accordance with the ESOS Scheme, each option entitles an employee to apply for one fully paid equity share of '' 10 of the Company at an exercise price of '' 162 per share. Pursuant to the amendments made to the ESOS Scheme as approved by the ESOS Compensation Committee of the Board, effective from April 01, 2014, the Independent Directors of the Company shall not be eligible to participate in the Scheme. Further, the exercise period of the vested options may be different for different plans and shall not be longer than ten years from the date of vesting.

However, considering the market price of shares, none of the employees had exercised the options vested and consequently the ESOS Committee at their meeting held on May 19, 2014, has amended to ESOS Plan 2010 and extended the validity period of exercise period.

The Company, considering the proposed revision in its current Employees'' Remuneration & Incentive Policy, market condition and the market price which was quoted to be under '' 50 per share for past six months, and after considering the recommendation of Nomination and Remuneration Committee wind up the Reliance Power - Employee Stock Option Scheme 2010 with effect from October 23, 2017.

Considering the above, the ESOS Trust has sold its shares in the open market at a loss of '' 845 lakhs, impact of which has been taken to other equity in the financial statements of the Company as on March 31, 2018.

9) Status of Dadri Project

The Company proposed developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh in the year 2003. The state of Uttar Pradesh (The State) in the year 2004 acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. The acquisition of land by the State for the project was challenged by certain land owners in the Allahabad High Court. The High Court quashed a part of acquisition proceedings by the State and directed them to fulfill certain compliances. Subsequently the Company filed an appeal before Hon''ble Supreme Court. The Hon''ble Supreme Court in its order disposed off the appeal and upheld the right of the Company to recover the amount paid towards the land acquired and conveyed to it by the State.

The Company has already conveyed its intent to return the acquired land to Government of Uttar Pradesh (GoUP) and raised the claim for the cost incurred on the land acquisition as well as other incidental expenditure thereto.

Considering the above facts, the Company has classified assets related to Dadri project under head ''Non-current assets classified as held for sale''.

The Company has realized amount of Rs, 2,522 lakhs till March 31, 2018 from the Government of Uttar Pradesh (GoUP) and the balance amount is expected to be recovered in the future.

Based on correspondence received from GoUP in previous year towards compensation for land and interest thereon, the Company has recognized an interest income of Rs, 481 lakhs (Previous year Rs, 7,500 lakhs).

10) Employee benefit obligations

The Company has classified various employee benefits as under:

(a) Leave obligations

The leave obligations cover the Company liability for sick and privileged leave.

* The Company does not have an unconditional right to defer the settlements.

(b) Defined contribution plans

(i) Provident fund

(ii) Superannuation fund

(iii) State defined contribution plans

- 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 trust. 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 a defined benefit plan, governed by the Payment of Gratuity Act, 1972. The plan, entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days basic salary for every completed years of services or part thereof in excess of six months, based on the rate of basic salary last drawn by the employee concerned.

(i) Significant estimates: actuarial assumptions

Valuation in respect of gratuity has been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions:

The estimate of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The above sensitivity analysis is 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. While 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 recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(iv) The above defined benefit gratuity plan was administrated 100% by Life Insurance Corporation of India (LIC) as at March 31, 2018 and March 31, 2017

(v) Defined benefit liability and employer contributions:

The Company will pay demand raised by LIC towards gratuity liability on time to time basis to eliminate the deficit in defined benefit plan.

The weighted average duration of the defined benefit obligation is 4.70 years (2017 - 8.43 years).

(vi) The Company has seconded certain employees to the subsidiaries. As per the terms of the secondment, liability towards salaries, provident fund and leave encashment will be provided and paid by the respective subsidiaries and gratuity will be paid/ provided by the Company. Accordingly, provision for gratuity includes cost in respect of seconded employees.

(vii) The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit.

12) Related party transactions

As per Indian Accounting Standard 24 (Ind AS-24) ''Related Party Transactions'' as prescribed by Companies (Indian Accounting Standards) Rules, 2015, the Company''s related parties and transactions are disclosed below:

A. Parties where control exists

Subsidiaries: (Direct and step-down subsidiaries)

1 Sasan Power Limited (SPL)

2 Rosa Power Supply Company Limited (RPSCL)

3 Maharashtra Energy Generation Limited (MEGL)

4 Vidarbha Industries Power Limited (VIPL)

5 Tato Hydro Power Private Limited (THPPL)

6 Siyom Hydro Power Private Limited (SHPPL)

7 Chitrangi Power Private Limited (CPPL)

8 Urthing Sobla Hydro Power Private Limited (USHPPL)

9 Kalai Power Private Limited (KPPL)

10 Coastal Andhra Power Limited (CAPL)

11 Reliance Coal Resources Private Limited (RCRPL)

12 Amulin Hydro Power Private Limited (AHPPL)

13 Emini Hydro Power Private Limited (EHPPL)

14 Mihundon Hydro Power Private Limited (MHPPL)

15 Jharkhand Integrated Power Limited (JIPL)

16 Reliance CleanGen Limited (RCGL)

17 Rajasthan Sun Technique Energy Private Limited (RSTEPL)

18 Dhursar Solar Power Private Limited (DSPPL)

19 Moher Power Limited (MPL)

20 Samalkot Power Limited (SMPL)

21 Reliance Prima Limited (RPrima)

22 Atos Trading Private Limited (ATPL)

23 Atos Mercantile Private Limited (AMPL)

24 Coastal Andhra Power Infrastructure Limited (CAPIL)

25 Reliance Power Netherlands BV (RPN)

26 PT Heramba Coal Resources (PTH)

27 PT Avaneesh Coal Resources (PTA)

28 Reliance Natural Resources Limited (RNRL)

29 Reliance Natural Resources (Singapore) Pte Limited (RNRL- Singapore)

30 Reliance Solar Resources Power Private Limited (RSRPPL)

31 Reliance Wind Power Private Limited (RWPPL)

32 Reliance Green Power Private Limited (RGPPL)

33 PT Sumukha Coal Services (PTS)

34 PT Brayan Bintang Tiga Energi (BBE)

35 PT Sriwijiya Bintang Tiga Energi (SBE)

36 Shangling Hydro Power Private Limited (SPPL)

37 Sumte Kothang Hydro Power Private Limited (SKPL)

38 Teling Hydro Power Private Limited (TPPL)

39 Lara Sumta Hydro Power Private Limited (LHPPL)

40 Purthi Hydro Power Private Limited (PHPPL)

41 Reliance Geothermal Power Private Limited (RGTPPL)

42 RPL Sunshine Power Private Limited (RSUNSHINEPPL) ( up to February 19, 2018)

43 RPL Surya Power Private Limited (RSURYAPPL) ( up to February 19, 2018)

44 RPL Solar Power Private Limited (RSOLARPPL) ( up to February 19, 2018)

45 RPL Sunlight Power Private Limited (RSUNLIGHTPPL) ( up to February 19, 2018)

46 RPL Solaris Power Private Limited (RSOLARISPPL) ( up to February 19, 2018)

47 RPL Star Power Private Limited (RSTARPPL) ( up to February 19, 2018)

48 Reliance Bangladesh LNG & Power Limited (RBLPL) (w.e.f. September 21, 2016)

49 Reliance Power Holding FZC, Dubai (RFZC) (w.e.f. May 15, 2016)

50 Reliance Bangladesh LNG Terminal Limited (RBLTL) (w.e.f. April 17, 2017)

B (I). Investing parties/promoters having significant influence on the Company directly or indirectly

(a) Company

Reliance Infrastructure Limited (R Infra)

(b) Individual

Shri Anil D. Ambani (Chairman)

(II). Other related parties with whom transactions have taken place during the year

(a) Enterprises over which individual described in clause B (I) above and B (II) (b) has control/ significant influence:

1 Reliance Capital Trustee Co Ltd (Rcap Trustee) (up to October 02, 2017)

2 Reliance Nippon Life Insurance Co Ltd (R Nippon Life) (formerly known as Reliance Life Insurance Company Limited) (up to October 02, 2017)

3 Reliance Nippon Life Assets Management Limited (R Nippon) (up to July 02, 2017)

4 Reliance Communications Limited

5 Reliance General Insurance Company Limited ( up to October 02, 2017)

6 Mulla & Mulla and Craigie Blunt & Caroe (Mulla & Mulla)

(b) Key Managerial Personnel:

1 Shri Sateesh Seth (Director)

2 Shri Yogendra Narain (Director) ( up to September 26, 2017)

3 Shri D. J. Kakalia (Director)

4 Smt. Rashna Khan (Director)

5 Shri V. K. Chaturvedi (Director) ( up to April 12, 2017)

6 Shri K. Ravi Kumar (Director) (w.e.f. September 26, 2017)

7 Shri N. Venugopala Rao (Whole-time Director) (Chief Executive Officer) (Chief Financial Officer (w.e.f. February 16, 2018)

8 Shri Ramaswami Kalidas (Manager ( up to May 26, 2016) and Company secretary ( up to June 07, 2017))

9 Shri Suresh Nagrajan (CFO) ( up to February 16, 2018)

10 Shri Murli M. Purohit (w.e.f June 08, 201 7)

(Figures relating to current year are reflected in Bold and relating to previous year are in unbold)

(iii) Other transactions

(a) As per the terms of sponsor support agreement entered for the purpose of security of term loans availed by subsidiaries, the Company has pledge following percentage of its shareholding in the respective subsidiaries.

- 100% of equity shares of Sasan Power Limited.

- 100% of equity shares of Dhursar Solar Power Private Limited.

- 77% of equity shares of Rajasthan Sun Technique Energy Private Limited.

- 98% of equity shares of Vidarbha Industries Power Limited

- 100% of preference shares of Sasan Power Limited.

- 100% of preference shares of Dhursar Solar Power Private Limited.

- 66% of preference shares of Rajasthan Sun Technique Energy Private Limited.

The Company has given commitments/ guarantees for loans taken by SPL, SMPL, VIPL, DSPPL and RSTEPL. (Refer note 4(c)).

(iv) The list of investment in subsidiaries along with proportion of ownership interest held and country of incorporation are disclosed in note no. 2 (b) (V) of consolidated financial statement

(v) The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

(vi) The above disclosures do not include accounting and balances related to financial guarantee obligation in respect of subsidiaries.

(vii) Transactions with related parties which are in excess of 10% of the total revenue of the Group are considered as material transactions.

(viii) Transactions with related parties are made on terms equivalent to those that prevail in case of arm''s lenght transactions.

âIncludes Inter corporate deposits and other receivables.

As at the year end, the Company has no loans and advances in the nature of loans to firms/companies in which directors are interested.

The following table presents the changes in level 3 items for the periods ended March 31, 2018 and March 31, 2017:

(d) Valuation processes

The Company has obtained assistance of independent and competent third party valuation experts to perform the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes and results are held between the Company and the valuer on periodic basis.

Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

(f) Valuation technique used to determine fair values

The fair value of financial instruments is determined using discounted cash flow analysis.

The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.

The fair value of the long-term borrowings with floating-rate of interest is not impacted due to interest rate changes, and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company borrowing (since the date of inception of the loans). Further, the Company has no long-term borrowings with fixed rate of interest except 12.18% Listed redeemable non convertible debentures.

For financial assets and liabilities that are measured at fair value, the carrying amount is equal to the fair values.

Note:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

There are no transfers between any levels during the year.

The Company''s policy is to recognize transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.

(a) Credit risk

The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the Company. Credit risk arises from cash and cash equivalents, financial assets carried at amortized cost and deposits with banks and financial institutions, as well as credit exposures to trade customers including outstanding receivables.

Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

(b) Liquidity risk

(i) Maturities of financial liabilities

The amounts disclosed below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

* Includes contractual interest payments based on the interest rate prevailing at the reporting date.

(i) Foreign currency risk

* Holding all other variables constant

The above amounts have been disclosed based on the accounting policy for exchange differences (Refer note 2.1(m).

(ii) Interest rate risk

The Company''s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS-107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

1) Capital Management

(a) Risk Management

(b) The Company is regular in payment of its debt service obligation and the Company has not received any communication from lenders for non compliance of any debt covenant.

2) Segment reporting

Information about major customers

Revenue from sale of energy for the year ended March 31, 2018 and March 31, 2017 were from customers located in India. Customers include private distribution entities. Revenue from sale of energy to specific customers exceeding 10% of total revenue for the years ended March 31, 2018 and March 31, 2017 were as follows: (Refer note 2n(i))

3) Exchange Difference on Long Term Monetary Items

As explained above in note 2(m) with respect to accounting policy followed by the Company for recording of foreign exchange differences, the Company has accumulated gain of Rs, 3,416 lakhs (March 31, 2017 Rs, 9,340 lakhs) in "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of long term monetary items other than on account of depreciable assets and has adjusted the value of Plant and equipment by loss of Rs, 32 lakhs (March 31, 2017 gain of Rs, 243 lakhs) towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets.

4) Corporate social responsibility (CSR)

As per the section 135 of the Companies Act, 2013, the Company is required to spend Rs, 143 lakhs (March 31, 2017 Rs, 136 lakhs), being 2% of the average net profits during the three immediately preceding financial years, towards CSR activity. The Company has made a contribution of Rs, 143 lakhs (March 31, 2017 Rs, 136 lakhs).

5) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

Disclosure of amounts payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act. There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

24) During the year, the Company has sold its entire holding in its six wholly owned subsidiaries viz. Lara Sumta Hydro Power Private Limited, Purthi Hydro Power Private Limited, Sumte Kothang Hydro Power Private Limited, Amulin Hydro Power Private Limited, Emini Hydro Power Private Limited and Mihundon Hydro Power Private Limited to its another wholly owned subsidiary M/s. Reliance Cleangen Limited (RCGL) on January 23, 2018. On account of such sale, the Company has recognized a gain of Rs, 6 Lakhs in other comprehensive income.

25) The figures for the previous year are re

Mar 31, 2017

27 lakhs. There is no impact on the total equity as at March 31, 2016,

ix. Investments carried at Amortized cost

Under the Previous GAAP, investment in preference shares of wholly owned subsidiary being long term investment were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, as the Company has opted to recognize such investments at fair value on initial recognition and subsequent measurement at amortized cost, the Company has recognized a gain of Rs, 30,639 lakhs in the Retained Earnings on the date of transition.

x. Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the Statement of Profit and Loss as Rs,Other Comprehensive Income'' includes remeasurements of post-employment benefit obligation and fair valuation of investments in subsidiaries,

xi. Retained Earnings

Retained Earnings as at April 01, 2015 has been adjusted consequent to the above Ind AS transition adjustments,

7.5% Compulsory Convertible Redeemable Non-Cumulative Preference Shares (CCRPS)

¹The issuer companies shall have a call option on the CCRPS which can be exercised by them in one or more tranches and in part or in full before the end of agreed tenure (20 years) of the said shares. In case the call option is exercised, the CCRPS shall be redeemed at an issue price (i.e. face value and premium). The Company, however, shall have an option to convert the CCRPS into equity shares at any time during the tenure of such CCRPS. At the end of tenure and to the extent the issuer Companies or the CCRPS holders thereof have not exercised their options, the CCRPS shall be compulsorily converted into equity shares. On conversion, in either case, each CCRPS shall be converted into equity shares of corresponding value (including the premium applicable thereon). In case the Issuer companies declare dividend on their equity shares, the CCRPS holders will also be entitled to the equity dividend in addition to the coupon rate of dividend. Considering the said terms, these investments have been classified as equity and fair valued through Other Comprehensive Income,

Nature and purpose of other reserves:

a) Capital Reserve

The Capital Reserve had arisen pursuant to the composite scheme of arrangement on account of net assets taken over from Reliance Futura Limited (Refer note e(i) below).

b) Capital Reserve (arisen pursuant to scheme of amalgamation)

The Capital Reserve had arisen pursuant to the composite scheme of arrangement with erstwhile Reliance Clean Energy Private Limited. The said scheme was sanctioned by Hon''ble High Court of Bombay vide order dated April 05, 2013. The Capital Reserve shall be a reserve which arose pursuant to the above scheme and shall not be and shall not for any purpose be considered to be a reserve created by the Company.

c) Securities Premium Account

Securities premium account is created to record premium received on issue of shares. The reserve is utilized in accordance with the provision of the Companies Act, 2013,

d) General Reserve

General Reserve is a free reserve created by the Company by transfer from Retained earnings,

e) General Reserve (arisen pursuant to various schemes)

All below General Reserve arisen pursuant to schemes and shall not be and shall not for any purpose be considered to be a reserve created by the Company.

i. General Reserves (arisen pursuant to composite scheme of arrangement)

ii. General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infraventures Private Limited)

The General Reserve had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infraventures Private Limited, sanctioned by the Hon''ble High Court of Bombay vide order dated April 29, 201 1. The scheme was effective from January 01, 2011.

iii. General Reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited)

f) Debentures Redemption Reserve

The Company is required to create a Debenture Redemption Reserve out of the profits of the Company for the purpose of redemption of debentures,

g) Foreign currency monetary item translation difference account

The Company has opted to continue the Previous GAAP policy for accounting of foreign exchange differences on long term monetary items. This reserve represents foreign exchange accumulated on long term monetary items which are for other than depreciable assets. The same is amortized over the balance period of such long term monetary assets. (Refer note 2.1(l ii))

h) Treasury Shares

The reserve for the Company''s treasury shares comprises the cost of the Company''s shares held by the ESOS Trust. The RPET held 8,500,000 shares (March 31,201 6: 8,500,000 shares; April 01, 2015: 8,500,000 shares) (Refer note 10),

i) Equity instruments through Other Comprehensive Income:

The Company has elected to recognize changes in the fair value of investments in equity instruments in subsidiaries in Other Comprehensive Income. The changes are accumulated within the FVOCI equity instruments reserve within equity. The Company transfers amount from this reserve to retained earnings when the relevant equity securities are derecognized, 4.10(a1) Nature of security for term loans

(i) Rupee loans from banks of Rs, 32,000 lakhs (March 31, 2016 Rs, 32,000 lakhs; April 01, 2015 Rs, 32,000 lakhs) are secured by first charge over long term loans and advances of the Company on pari passu basis,

(ii) Rupee loans from banks of Rs, 2,463 lakhs (March 31, 2016 Rs, 1 9,288 lakhs; April 01, 2015 Rs, 1 9,695 lakhs) and foreign currency loan of Rs, 10,950 lakhs (March 31, 2016 Rs, 12,568 lakhs; April 01, 2015 Rs, 13,124 lakhs) are secured / to be secured by first charge on all the immovable and movable assets of the 45 MW wind power project at Vashpet on pari passu basis.

(iii) Rupee loans from banks of Rs, 20,000 lakhs (March 31, 2016 Rs, 20,000 lakhs; April 01, 2015 Rs, Nil) are secured by first pari passu charge over current assets of the Company including receivable excluding the assets acquired under scheme of amalgamation with erstwhile Reliance Clean Power Private Limited,

(iv) Rupee loans from banks of Rs, 19,500 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil) are secured by the residual charge over current assets of the Company including receivable excluding the assets acquired under scheme of amalgamation with erstwhile Reliance Clean Power Private Limited,

(v) Rupee loans from banks of Rs, 12,407 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil) are secured / to be secured by first charge on all the immovable and movable assets and receivables of the 45 MW wind power project at Vashpet on pari passu basis.

(vi) Rupee loans from banks of Rs, 10,500 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil) are secured by the first pari passu charge over long term loans and advances including receivables accrued out of such long term loans and advances of the Company .

(vii) Rupee loans from banks of Rs, 33,800 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil) are secured by the first pari passu charge over long term loans and advances of the Company,

(viii) Rupee loans from banks of Rs, 71,335 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil) are secured by the first pari passu charge over long term loans and advances of the Company,

(ix) Current maturities of long term borrowings have been classified as other financial liabilities (Refer note 4.13(c)),

1.(a2) Terms of Repayment and Interest

(i) Rupee loans from banks of Rs, 32,000 lakhs (March 31, 2016 Rs, 32,000 lakhs; April 01, 2015 Rs, 32,000 lakhs) is repayable in one installment on September 30, 201 7 and carry an interest rate of 11.23% per annum payable on a monthly basis,

(ii) Rupee term loans is repayable in 59 quarterly installments commenced from March 2015 and carry an interest rate of 11.75% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 2,463 lakhs (March 31, 2016 Rs, 1 9,288 lakhs; April 01, 2015 Rs, 1 9,695 lakhs).

(iii) Foreign currency loans is repayable in 42 quarterly installments commenced from September 2013 and carry an interest rate of USD 6 month LIBOR plus 4.5% per annum payable on a half yearly basis. The outstanding balance as at year end is Rs, 10,950 lakhs (March 31, 2016 Rs, 12,568 lakhs; April 01, 2015 Rs, 13,124 lakhs).

(iv) Rupee term loans from bank is repayable in 16 quarterly installments commencing from June 2017 and carry an interest rate of 10.55% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 20,000 lakhs (March 31, 2016 Rs, 20,000 lakhs; April 01, 2015 Rs, Nil).

(v) Rupee term loans from bank is repayable in 40 monthly installments commenced from March 2017 and carry an interest rate of 10.80% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 19,500 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil).

(vi) Rupee term loans from bank is repayable in 53 structured quarterly installments commenced from September 2016 and carry an interest rate of 11.60% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 12,407 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil).

(vii) Rupee term loans from bank is repayable in 12 quarterly installments commencing from December 2019 and carry an interest rate of 11.37% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 10,500 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil).

(viii) Rupee term loans from bank is repayable in 16 structured monthly installments commencing from July 2017 and carry an interest rate of 10.50% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 33,800 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil).

(ix) Rupee term loans from bank is repayable in 11 structured quarterly installments commencing from July 2017 and carry an interest rate of 10.50% per annum payable on a monthly basis. The outstanding balance as at year end is Rs, 71,335 lakhs (March 31, 2016 Rs, Nil; April 01, 2015 Rs, Nil).

2.(a3) The Amortized cost disclosed above is net off incidental cost of borrowings aggregating of Rs, 3,048 lakhs (March 31,2016 Rs, 2,322 lakhs; April 01,2015 Rs, 1,850 lakhs).

3.(a1) Nature of security and terms of repayment

(ii) Series I (201 7) 10.60% listed redeemable non convertible debentures is secured by pledge of 2.30% of outstanding equity shares of a subsidiary Rosa Power Supply Company Limited which is redeemable within a period of 364 Days from the date of allotment (i.e. January 24, 2017) and carry an interest rate of 10.60% per annum payable on a quarterly basis,

(iii) Series II (201 7) 10.60% listed redeemable non convertible debentures is secured by pledge of 9.50% of outstanding equity shares of a subsidiary Rosa Power Supply Company Limited which is redeemable within a period of 364 Days from the date of allotment (i.e. March 16, 2017) and carry an interest rate of 10.60% per annum payable on a quarterly basis,

(iv) Short term rupee loan from bank of Rs, Nil (March 31, 2016: Rs, 15,000 lakhs; April 01, 2015: Rs, Nil) is secured by first pari passu charge over the current assets of the Company including receivables excluding assets acquired under the merger scheme with erstwhile Reliance Clean Power Private Limited. The loan is repayable in 5 equal monthly instalments of Rs, 1,500 lakhs each commencing from April 30, 2016 and ending on August 31, 2016 and bullet repayment of Rs, 7,500 lakhs on September 30, 201 6 and carry an interest rate of 11.65% per annum payable on a monthly basis,

(v) Loan against fixed deposit is secured by first pari passu charge over the fixed deposit of the Company. The loan is repayable in full on June 15, 2017 and carry an interest rate of 7.50% per annum payable on a monthly basis,

Unsecured

(i) 2,500 Series I (201 6) 10.20% unsecured redeemable non convertible debentures are redeemable within a period of 364 days and carry an interest rate of 10.20% per annum payable on a quarterly basis,

(ii) i. Commercial paper of Rs, 2,000 lakhs have a tenure of 174 days from the date of issue i.e. January 31, 2017 and

discount rate of 9.75% per annum.

ii. Commercial paper of Rs, 1,000 lakhs have a tenure of 179 days from the date of issue i.e. March 17, 2017 and discount rate of 9.50% per annum,

(iii) Inter corporate deposits from Reliance Nippon Life assets management are repayable within one year and carry an interest rate of 13.50% per annum,

(iv) Inter corporate deposits from Reliance Infrastructure Limited are repayable within one year and carry an interest rate of 12.50% per annum.

5) Contingent liabilities and commitments

(a) Guarantees including corporate guarantee issued for subsidiary companies aggregating to Rs, 701,915 lakhs (March 31,

2016 Rs, 800,110 lakhs; April 01, 2015 Rs, 877,203 lakhs). Refer note 7(a) with respect to Coastal Andhra Power Limited,

(b) I n respect of subsidiaries, the Company has committed/guaranteed to extend financial support in the form of equity or debt as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiaries, including any capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/debt servicing,

Future cash flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors,

(c) Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs, Nil (March 31, 2016 Rs, Nil; April 01, 2015 Rs, 75 lakhs).

4) Project status of Subsidiaries

(a) Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been incorporated to develop an Ultra Mega Power Project (UMPP) of 3,960 MW capacity located in Krishnapatnam, District Nellore, based on imported coal,

CAPL has filed a petition before the Hon''ble High Court at Delhi, inter-alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The Court vide its order dated March 20, 2012 has prohibited the Procurers from taking any coercive steps against the CAPL. The single judge of the Delhi High Court vide order dated July 02, 2012 dismissed the petition and the appeal filed by CAPL against the said order is pending before the Division Bench of the Delhi High Court. The interim protection against encashing bank guarantees continues to be available.

CAPL has also filed a petition before the Central Electricity Regulatory Commission (CERC) without prejudice to the proceedings pending before the Delhi High Court and the arbitration process has already been initiated. During the course of the CERC proceedings, the power procurers contended that the petition could not be taken up for hearing by CERC since the matter was pending at High Court. CAPL, in response contended that both proceedings are different and independent. The CERC petition did not raise the issue of notice of termination. Considering appeal is pending before the Delhi High Court, CERC has disposed off the petition vide its order dated August 06,2015 with a liberty to the Petitioner to approach the Commission at an appropriate stage in accordance with law.

Based on the impairment assessment, the Company had provided for diminution in the value of equity investments amounting to '' 52,500 lakhs in the Previous GAAP financial statements for the year ended March 31, 2016,

Pursuant to the Scheme of Amalgamation (Scheme) sanctioned by the High Court of Bombay on April 05, 2013, the Company is permitted to offset any exceptional / extraordinary items, as determined by the Board of Directors, debited in the Statement of Profit and Loss by a corresponding withdrawal from General Reserve. The said provision for diminution of value of investments being exceptional in nature, in the opinion of the Board, was offset by withdrawal of equivalent amount from General Reserve in the statement of Profit and Loss in the Previous GAAP financial statements for the year ended March 31, 2016.

On adoption of Ind AS, the Company has opted to carry equity investments in the subsidiaries at fair value through Other Comprehensive Income. Considering the said policy, the diminution in the value of the investments with respect to CAPL has been recorded in the Other Comprehensive Income for the year ended March 31, 2016 and consequentially, as per the above referred Scheme, equivalent amount of General Reserve has been withdrawn to offset the charge in the Other Comprehensive Income, which may be considered to override the relevant provisions of Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, Ind AS 109 - Financial Instruments and Ind AS 1 - ''Presentation of Financial Statements'',

(b) Samalkot Power Limited (SMPL)

With respect to 1508 Mega Watt (MW) (2 units of 754 MW each) Plant:

There is continued uncertainty regarding availability of natural gas in the country for operation of the plant, and while the SMPL, is actively pursuing with relevant authorities for securing gas linkages / supply at commercially viable prices / generation opportunities, it is also evaluating alternative arrangements / approaches to deal with the situation. SMPL is confident of arriving at a positive resolution to the foregoing in the foreseeable future and therefore the carrying amount of capital work in progress is considered recoverable,

With respect to 754 MW Plant:

The Company, in the previous year, had entered into a Memorandum of Understanding with the Government of Bangladesh (GoB) for developing a gas project of 3000 MW capacity. Pursuant to the above, Reliance Bangladesh LNG and Power Limited (RNLG), a step down subsidiary of the Company, is taking steps to conclude a long term Power Purchase Agreement (PPA) for supply of 750 MW power from a gas based power plant to be set up in Bangladesh, SMPL has entered into a MOU on March 21, 2017 for sale of the Plant to RNLG, for a consideration not less than its carrying amount. SMPL expects to enter into definitive sale agreement in the ensuing financial year. SMPL is confident that RLNG will be able to achieve financial closure and remit the sale proceeds,

Having regard to the above plans and the continued financial support from the Company, management believes that the SMPL would be able to meet its financial and other obligations in the foreseeable future. Accordingly, the financial statements of the SMPL have been prepared on a going concern basis,

J IPL, a wholly owned subsidiary, has been set up to develop Ultra Mega Power Project (UMPP) of 3960 MW located in Tilaiya, Hazaribagh District, Jharkhand. The project being developed by JIPL was awarded to the Company through International Competitive Bidding (ICB), under the UMPP regime. JIPL was handed over to the Company on August 07, 2009 by Power Finance Corporation (PFC). JIPL has signed Power Purchase Agreement (PPA) with 18 procurers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block,

As per the Power Purchase Agreement (PPA) between JIPL and the Procurers, the Procurers were obligated to comply with conditions subsequent in the PPA which inter-alia required providing requisite land for the Project within 6 months of the Project Transfer. Considering the status of the project and updates from the Procurers, the Company terminated the PPA on April 28, 2015 as per the option available therein. The Procurers have also agreed to the termination of the PPA by JIPL and have agreed to pay certain expenditure incurred by JIPL on the project pursuant to the minutes of meeting dated November 03, 2015. It has also been agreed that the shares held by the Company in JIPL would be transferred to the Procurers upon completion of the final settlement,

Considering the said settlement process, the Company has taken over the balance expenditure of Rs, 13,186 lakhs in the books of JIPL and charged off the same in the Statement of Profit and Loss as an exceptional item in the Previous GAAP financial statements for the year ended March 31, 2016,

Pursuant to the Scheme of Amalgamation (Scheme) sanctioned by the High Court of Bombay on April 05, 2013, the Company is permitted to offset any exceptional/extraordinary items, as determined by the Board of Directors, debited in the Statement of Profit and Loss by a corresponding withdrawal from General Reserve. The said write off of pre-operative expenditure being exceptional in nature, in the opinion of the Board, was offset by withdrawal of equivalent amount from General Reserve in the Statement of Profit and Loss in the Previous GAAP financial statements for the year ended March 31, 2016.

On adoption of Ind AS also, as per the requirements under the Scheme, the Company has offset the charge of Rs, 13,186 lakhs in the Statement of Profit and Loss of previous year by withdrawal of an equivalent amount from General Reserve, which may be considered to override the relevant provisions of Ind AS 8- ''Accounting Policies, Changes in Accounting Estimates and Errors'' and Ind AS 1- ''Presentation of Financial Statements,

5) During the year, the Company had no specified bank notes or no other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 and there were no transactions during the period from November 8, 2016 to December 30, 2016.

6) Applicability of NBFC Regulations

The Company, based on the objects given in the Memorandum of Association, its role in construction and operation of power plants through subsidiaries and other considerations, has been legally advised that it is not covered under the provisions of Non-Banking Financial Company as defined in Reserve Bank of India Act, 1934 and accordingly, is not required to be registered under section 45 IA of the said Act,

7) Employee Stock Option Scheme (ESOS)

employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan, In accordance with the ESOS Scheme, each option entitles an employee to apply for one fully paid equity share of '' 10 of the Company at an exercise price of '' 162 per share. Pursuant to the amendments made to the ESOS Scheme as approved by the ESOS Compensation Committee of the Board, effective from April 01, 2014, the Independent Directors of the Company shall not be eligible to participate in the Scheme. Further, the exercise period of the vested options may be different for different plans and shall not be longer than ten years from the date of vesting,

Under Previous GAAP, the Company had accounted the employee stock compensation expenses as per the ''Intrinsic Value Method''. No expense was required to be recognized as the stock options'' exercise price was higher than the traded price on the date of grant of those stock options. Under Ind AS, the Company has to recognize such expense based on fair value of the options on the grant date. The Company has elected to take optional exemption in accordance with Ind AS 101 and did not fair value the options which are vested before transition date.

The fair value of stock options granted was determined under Binomial Option Pricing - Hull & White Model. The details pertaining to number of stock options, weighted average price and assumptions considered for fair value are disclosed below:

The expected volatility was determined based on the volatility of the equity share for the period of one year prior to issue of the stock option.

The Company had in earlier years given an advance of Rs, 14,000 lakhs to RPET for purchase of its shares from the open market, as per the ESOS Plan of the Company. RPET had, in turn, in earlier years purchased 8,500,000 equity shares of the Company, Under Previous GAAP, considering the current market value of the shares, option exercise price and other factors, the Company had written down the value of investment held by RPET of Rs, 9,801 lakhs in the Treasury Shares as an exceptional item during the year ended March 31, 2016.

Pursuant to the Composite Scheme of Amalgamation (Scheme) sanctioned by the High Court of Bombay on October 15, 2010, the Company is permitted to offset any expense or loss which in the opinion of the Board of the Company is related to factors such as variation in exchange rates which are beyond the control of the Company, debited in the Statement of Profit and Loss by a corresponding withdrawal from General Reserve.

During the year ended March 31, 2016, under Previous GAAP, the Board of Directors of the Company, in terms of the aforesaid Scheme had identified the write down in the value of investment held by Reliance Power ESOS Trust of Rs, 9,801 lakhs as an exceptional item, which is beyond the control of the Company and accordingly, the write down in the value of advances to ESOS trust in the Statement of Profit and Loss was offset by withdrawal of an equivalent amount from General Reserve (arisen pursuant to the Scheme),

On adoption of Ind AS with transition date of April 1, 2015, the Company treats the RPET as its extension and shares held by RPET are treated as treasury shares and accordingly, the face value of shares has been reduced from share capital and balance amount has been disclosed as treasury shares. Accordingly, for the year ended March 31, 2016 and thereafter, the diminution in value of treasury shares so provided for has now been adjusted in the value of treasury shares and an equivalent amount has been withdrawn from General Reserve (arisen pursuant to the Scheme) to offset the adjustment recorded in the treasury shares, which may be considered to override the relevant provisions of Ind AS 102 - ''Share based Payment'' and Ind AS 1-Presentation of financial statements,

8) Status of Dadri Project

The Company proposed developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh in the year 2003. The state of Uttar Pradesh (The State) in the year 2004 acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. The acquisition of land by the State for the project was challenged by certain land owners in the Allahabad High Court. The High Court quashed a part of acquisition proceedings by the State and directed them to fulfill certain compliances. Subsequent to the judgment of High Court on compliances and procedures relating to land acquisition the Company filed an appeal before Supreme Court. Before the pronouncement of judgment by the Supreme Court, the Company submitted an affidavit stating its inability to continue with the project because of the difficulty in securing the gas supply for the project. The Supreme Court in its order disposed off the appeal and upheld the right of the Company to recover the amount paid towards the land acquired and conveyed to it by the State on its return to the State.

Considering the above facts, the Company has classified assets related to Dadri project under head ''Non-current assets classified as held for sale''.

The Company has realized amount of Rs, Nil (previous year Rs, 2,522 lakhs) from the Government of Uttar Pradesh (GoUP) and the balance amount is expected to be recovered in the future,

Based on correspondence received from GoUP in current year towards compensation for land and interest thereon. The Company has recognized an interest income of Rs, 7,500 lakhs,

9) Employee benefit obligations

The Company has classified various employee benefits as under: a) Leave obligations

The leave obligations cover the Company liability for sick and privileged leave,

The Company has recognized the following amounts in the Statement of Profit and Loss for the year:

c) Post employment obligation Gratuity

The Company has a defined benefit plan, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days basic salary for every completed years of services or part thereof in excess of six months, based on the rate of basic salary last drawn by the employee concerned,

The above sensitivity analysis is 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. While 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 recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(iv) The above defined benefit gratuity plan was administrated 100% by Life Insurance Corporation of India (LIC) as at March 31, 2017, March 31, 2016 as well as April 01, 2015.

(v) Defined benefit liability and employer contributions:

The Company will pay demand raised by LIC towards gratuity liability on time to time basis to eliminate the deficit in defined benefit plan,

The weighted average duration of the defined benefit obligation is 8.43 years (201 6 - 8.98 years, 2015- 8.64 years),

(vii) The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit,

10) Related party transactions:

As per Indian Accounting Standard 24 (Ind AS-24) ''Related Party Transactions'' as prescribed by Companies (Indian Accounting

Standards) Rules, 2015, the Company''s related parties and transactions are disclosed below:

A. Parties where control exists:

Subsidiaries: (Direct and step-down subsidiaries)

1 Sasan Power Limited (SPL)

2 Rosa Power Supply Company Limited (RPSCL)

3 Maharashtra Energy Generation Limited (MEGL)

4 Vidarbha Industries Power Limited (VIPL)

5 Tato Hydro Power Private Limited (THPPL)

6 Siyom Hydro Power Private Limited (SHPPL)

7 Chitrangi Power Private Limited (CPPL)

8 Urthing Sobla Hydro Power Private Limited (USHPPL)

9 Kalai Power Private Limited (KPPL)

10 Coastal Andhra Power Limited (CAPL)

11 Reliance Coal Resources Private Limited (RCRPL)

12 Amulin Hydro Power Private Limited (AHPPL)

13 Emini Hydro Power Private Limited (EHPPL)

14 Mihundon Hydro Power Private Limited (MHPPL)

15 Jharkhand Integrated Power Limited (JIPL)

16 Reliance CleanGen Limited (RCGL)

17 Rajasthan Sun Technique Energy Private Limited (RSTEPL)

18 Dhursar Solar Power Private Limited (DSPPL)

19 Moher Power Limited (MPL)

20 Samalkot Power Limited (SMPL)

21 Reliance Prima Limited (RPrima)

22 Atos Trading Private Limited (ATPL)

23 Atos Mercantile Private Limited (AMPL)

24 Coastal Andhra Power Infrastructure Limited (CAPIL)

25 Reliance Power Netherlands BV (RPN)

26 PT Heramba Coal Resources (PTH)

27 PT Avaneesh Coal Resources (PTA)

28 Reliance Natural Resources Limited (RNRL)

29 Reliance Natural Resources (Singapore) Pte Limited (RNRL- Singapore)

30 Reliance Solar Resources Power Private Limited (RSRPPL)

31 Reliance Wind Power Private Limited (RWPPL)

32 Reliance Green Power Private Limited (RGPPL)

33 PT Sumukha Coal Services (PTS)

34 PT Brayan Bintang Tiga Energi (BBE)

35 PT Sriwijiya Bintang Tiga Energi (SBE)

36 Shangling Hydro Power Private Limited (SPPL)

37 Sumte Kothang Hydro Power Private Limited (SKPL)

38 Teling Hydro Power Private Limited (TPPL)

39 Lara Sumta Hydro Power Private Limited (LHPPL)

40 Purthi Hydro Power Private Limited (PHPPL)

41 Reliance Geothermal Power Private Limited (RGTPPL) (w.e.f. January 17, 2015)

42 RPL Sun Power Private Limited (Formerly known as Reliance Biomass Power Private Limited)

(RSUNPPL) (w.e.f. July 16, 2015 up to February 16, 2016)

43 RPL Photon Private Limited (Formerly known as Reliance Renewable Power Private Limited)

(RPHOTONPL) (w.e.f. July 16, 2015 up to February 16, 2016)

44 RPL Sunshine Power Private Limited (Formerly known as Solar Generation Company (Rajasthan) Private Limited) (RSUNSHINEPPL) (w.e.f. July 16, 2015)

45 RPL Sun Technique Private Limited (Formerly known as Reliance Tidal Power Private Limited)

(RSUNTPL) (w.e.f. July 16, 2015 up to February 16, 2016)

46 RPL Surya Power Private Limited (RSURYAPPL) (w.e.f. July 31, 2015)

47 RPL Solar Power Private Limited (RSOLARPPL) (w.e.f. August 26, 201 5)

48 RPL Sunlight Power Private Limited (RSUNLIGHTPPL) (w.e.f. August 19, 2015)

49 RPL Solaris Power Private Limited (RSOLARISPPL) (w.e.f. September 07, 2015)

50 RPL Aditya Power Private Limited (RADITYAPPL) (w.e.f. August 26, 2015 upto March 03, 2017)

51 RPL Star Power Private Limited (RSTARPPL) (w.e.f. August 07, 2015)

52 Reliance Bangladesh LNG & Power Limited ( RLNG) (w.e.f September 21, 2016)

53 Reliance Power Holding FZC, Dubai (RFZC) (w.e.f. May 15, 2016)

SN Name of Company

1 RPL Sun Power Private Limited (Formerly known as Reliance Biomass Power Private Limited) (RSUNPPL)

(w.e.f. June 16, 2016)

2 RPL Photon Private Limited (Formerly known as Reliance Renewable Power Private Limited) (RPHOTONPL) (w.e.f. June 16, 2016)

3 RPL Sun Technique Private Limited (Formerly known as Reliance Tidal Power Private Limited) (RSUNTPL)

(w.e.f. June 16, 2016)

B (I). Investing parties/promoters having significant influence on the Company directly or indirectly:

(a) Companies

Reliance Infrastructure Limited (R Infra)

(b) Individual

Shri Anil D Ambani

(II). Other related parties with whom transactions have taken place during the year:

(a) Enterprises over which individual described in clause B (I) above have control / significant influence:

1 Reliance Capital Trustee Co Ltd (Rcap Trustee)

2 Reliance Nippon Life Insurance Co Ltd (R Nippon Life) (formerly known as Reliance Life Insurance Company Limited)

3 Reliance Nippon Life Assets Management Limited (R Nippon)

(b) Key Managerial Personnel:

1 Shri Sateesh Seth (Director)

2 Shri Yogendra Narain (Director)

3 Shri D. J. Kakalia (Director)

4 Smt. Rashna Khan (Director)

5 Shri V. K. Chaturvedi (Director)

6 Shri N. Venugopala Rao (Chief Executive Officer) (w.e.f. October 13, 2015)

7 Shri Ramaswami Kalidas (Manager (upto May 26, 2016) and Company secretary)

8 Shri Suresh Nagrajan (CFO) (w.e.f. January 05, 201 7)

9 Shri Ashutosh Agarwala (CFO) (w.e.f. September 26, 2014 up to August 12, 2016)

(iii) Other transactions:

(a) As per the terms of sponsor support agreement entered for the purpose of security of term loans availed by subsidiaries, the Company is required to pledge following percentage of its shareholding in the respective subsidiaries,

- 100% of equity shares of Sasan Power Limited.

- 100% of equity shares of Dhursar Solar Power Private Limited.

- 100% of equity shares of Rajasthan Sun Technique Energy Private Limited.

- 51% of equity shares of Vidarbha Industries Power Limited

- 100% of preference shares of Sasan Power Limited.

- 100% of preference shares of Dhursar Solar Power Private Limited.

- 100% of preference shares of Rajasthan Sun Technique Energy Private Limited.

Also refer note 4.13(a1) (ii) and (iii)

The Company has given commitments / guarantees for loans taken by SPL, SMPL, VIPL, DSPPL and RSTEPL, (Refer note 5(b)).

(iv) The list of investment in subsidiaries along with proportion of ownership interest held and country of incorporation are disclosed in note no. 2 (b) (V) of consolidated financial statement

(v) The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

(vi) The above disclosures do not include accounting and balances related to financial guarantee obligation in respect of subsidiaries.

(b) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at Amortized 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,

(f) Valuation technique used to determine fair values

The main level 3 inputs used by the Company are derived and evaluated as follows:

The fair value of financial instruments is determined using discounted cash flow analysis,

The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature,

The fair value of the long-term Borrowings with floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company borrowing (since the date of inception of the loans). Further, the Company has no long-term Borrowings with fixed rate of interest,

For financial assets and liabilities that are measured at fair value, the carrying amount is equal to the fair values.

Note:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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 maximize 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 which are included in level 3,

There are no transfers between any levels during the year.

The Company''s policy is to recognize transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.

(a) Credit risk

The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the Company. Credit risk arises from cash and cash equivalents, financial assets carried at Amortized cost and deposits with banks and financial institutions, as well as credit exposures to trade customers including outstanding receivables,

Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss,

The Company''s credit risk arises from accounts receivable balances on sale of electricity is based on tariff rate approved by electricity regulator and inter-corporate deposits/loans are given to subsidiaries incorporated as special purpose vehicle for power projects awarded to the Company. The credit risk is very low as the sale of electricity is based on the terms of the PPA, which has been approved by the regulator. With respect to Inter-corporate deposits/loans given to subsidiaries, the Company will be able to control the cash flows of those subsidiaries as the subsidiaries are wholly owned by the Company,

For banks and financial institutions, only highly rated banks/institutions are accepted. Generally all policies surrounding credit risk have been managed at company level. The Company''s policy to manage this risk is to invest in debt securities that have a good credit rating,

(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''s treasury function maintains flexibility in funding by maintaining availability under committed credit lines.

In respect of its existing operations, the Company funds its activities primarily through long-term loans secured against each power plant and long terms loans and advances. In addition, each of the operating plants has working capital loans available to it which are renewed annually, together with certain intra-group loans. The Company''s objective in relation to its existing operating business is to maintain sufficient funding to allow the plants to operate at an optimal level.

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 the operating subsidiaries level 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 considering the level of liquid assets necessary to meet these monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintained debt financing plans,

(i) Maturities of financial liabilities

The amounts disclosed below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant,

Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of volatility of prices in the financial markets. Market risk can be further segregated as: i) Foreign currency risk and ii) Interest rate risk,

(i) Foreign currency risk

* Holding all other variables constant

The above amounts have been disclosed based on the accounting policy for exchange differences (Refer note 2(l)).

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 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, 2016 and April 01, 2015 the Company''s borrowings at variable rate were mainly denominated in Rupees.

The Company''s fixed rate borrowings are carried at Amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS -107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

11) Capital Management

(a) Risk Management

The Company monitors capital on basis of total equity and debt on a periodic basis. Equity comprises all components of equity including the fair value impact. Debt includes long-term loan and short term loans .The following table summarizes the capital of the Company:

(b) The Company is regular in payment of its debt service obligation and the Company has not received any communication from lendors for non compliance of any debt covenant,

(c) Final Dividends for the year ended March 31, 2017 is '' Nil (March 31, 2016: '' 28,051 lakhs @ '' 1 per fully paid up shares).

12) Segment reporting

The Company''s committee of Chief Executive Officer and Chief Financial Officer examine the Company''s performance,

Presently, the Company is engaged in only one segment viz ''Generation of Power'' and as such, there is no separate reportable segment as per Ind AS 108 ''Operating Segments''. Presently, the Company''s operations are predominantly confined in India,

Information about major customers

Revenue for the year ended March 31, 2017 and March 31, 2016 were from customers located in India. Customers include private distribution entities. Revenue to specific customers exceeding 10% of total revenue for the years ended March 31,

2017 and March 31, 2016 were as follows: (Refer note 2m(i))

13) Exchange Difference on Long Term Monetary Items

As explained above in note 2(l) with respect to accounting policy followed by the Company for recording of foreign exchange differences, the Company has accumulated a gain of Rs, 9,340 lakhs (Previous year Rs, 23,058 lakhs) to "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of long term monetary items other than on account of depreciable assets and has adjusted the value of Plant and equipment by gain of Rs, 243 lakhs (Previous year loss of Rs, 768 lakhs) towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets,

14) Corporate social responsibility (CSR)

As per the section 135 of the Companies Act, 2013, the Company is required to spend Rs, 136 lakhs (previous year March 31, 2016 Rs, 402 lakhs), being 2% of the average net profits during the three immediately preceding financial years, towards CSR activity. The Company has made a contribution of Rs, 136 lakhs (previous year ended March 31, 2016 Rs, 402 lakhs) to a Nonprofit organization to facilitate the setting up of day care oncology centers in different districts of Maharashtra,

15) I n view of section 115-O of the Income Tax Act, 1961, the Company has reduced its dividend tax liabilities to the extent dividend received from RPSCL,

16) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

Disclosure of amounts payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

Mar 31, 2016

1. Aggregate number of bonus shares issued and shares issued for consideration other than cash during the five years immediately preceding the reporting date

During the year ended March 31, 2011, the Company had issued 408,282,606 equity shares of Rs. 10 each fully paid to the shareholders of Reliance Natural Resources Limited as a consideration for transfer of business undertaking from Reliance Natural Resources Limited under the composite scheme of arrangement sanctioned by High Court of Bombay on October 15, 2010.

2. Pursuant to the composite scheme of arrangement with Reliance Natural Resources Limited, the Company has 596,696 Global Depository Receipts which are listed on Euro MTF Market of the Luxembourg Stock Exchange since May 17, 2011.

3. Nature of security for term loans

a) Rupee loans from banks of Rs. 32,000 lakhs (Previous Year Rs. 32,000 lakhs) are secured by first charge over long term loans and advances of the Company on pari passu basis.

b) Rupee loans from banks of Rs. 1 9,288 lakhs (Previous Year Rs. 19,695 lakhs) and foreign currency loan of Rs. 12,568 lakhs (Previous Year Rs. 13,124 lakhs) are secured / to be secured by first charge on all the immovable and movable assets of the 45 MW wind power project at Vasphet on pari passu basis.

c) Rupee loans from banks of Rs. 20,000 lakhs (Previous Year Rs. Nil) are secured by first pari passu charge over current assets of the Company including receivable excluding the assets acquired under scheme of amalgamation with erstwhile Reliance Clean Power Private Limited.

d) Current maturities of long term borrowings have been classified as other current liabilities (refer note 3.7)

4. Terms of Repayment and Interest

a) Rupee term loans from bank of Rs. 32,000 lakhs (Previous Year Rs. 32,000 lakhs) is repayable in one installment on September 30, 2017 and carry an interest rate of 11.23% per annum payable on a monthly basis.

b) Rupee term loans is repayable in 59 quarterly installments commencing from March 2015 and carry an interest rate of 11.75% per annum payable on a monthly basis. The outstanding balance as at year end is Rs. 19,288 lakhs (Previous Year Rs. 19,695 lakhs).

c) Foreign currency loans is repayable in 42 quarterly installments commencing from September 2013 and carry an interest rate of USD 6 month LIBOR plus 4.5% per annum payable on a half yearly basis. The outstanding balance as at year end is Rs. 1 2,568 lakhs (Previous Year Rs. 13,124 lakhs).

d) Rupee term loans from bank is repayable in 16 quarterly installments commencing from June 2017 and carry an interest rate of 11.80% per annum payable on a monthly basis. The outstanding balance as at year end is Rs. 20,000 lakhs (Previous Year Rs. Nil).

5. Nature of security and terms of repayment

a) Short term rupee loans from bank is secured by first pari passu charge over the current assets of the Company including receivables excluding assets acquired under the merger scheme with erstwhile Reliance Clean Power Private Limited. The loan is repayable in 5 equal monthly installments of Rs. 1,500 lakhs each commencing from April 30, 201 6 and ending on August 31, 2016 and bullet repayment of Rs. 7,500 lakhs on September 30, 2016 and carry an interest rate of 11.65% per annum payable on monthly basis.

b) Working capital loans is secured by first hypothecation and charge on all receivables of the Company (excluding assets acquired under the merger scheme with erstwhile Reliance Clean Power Private Limited), both present and future on pari passu basis and is repayable on demand and carry an interest rate of 12.75% per annum payable on monthly basis.

c) Series II 11.50% listed redeemable non convertible debentures is secured by pledge of 10% of outstanding equity shares of a subsidiary Rosa Power Supply Company Limited outstanding as on March 31, 2015 which is redeemable within a period of 360 Days from the date of allotment (i.e. March 22, 201 6) and carry an interest rate of 11.50% per annum payable on quarterly basis.

Unsecured

a) Unsecured redeemable non convertible debentures are redeemable within a period of one year and carry an interest rate of 10.20% per annum payable on half yearly basis.

b) i. Commercial paper of Rs. 6,000 lakhs have a tenure of 360 days from the date of issue i.e. March 29, 2016 and discount rate of 10.30% per annum.

ii. Commercial paper of Rs. 2,000 lakhs have a tenure of 179 days from the date of issue i.e. January 08, 2016 and discount rate of 11% per annum.

c) Inter corporate deposits from related party are repayable within one year and carry an interest rate of 12.50% per annum.

6. Contingent liabilities and commitments

(a) Guarantees issued for subsidiary companies aggregating to Rs. 266,128 lakhs (Previous year Rs. 275,222 lakhs). Refer note 9(a) with respect to Coastal Andhra Power Limited.

(b) In respect of subsidiaries, the Company has committed/ guaranteed to extend financial support in the form of equity or debt as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiary, including any capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/debt servicing.

Future cash flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors.

(c) Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs. Nil (Previous year Rs. 75 lakhs).

7. Capital reserve (arisen pursuant to scheme):

The Capital reserve of Rs. 59,995 lakhs had arisen pursuant to the scheme of amalgamation with Erstwhile Reliance Clean Energy Private Limited (RCEPL), sanctioned by the Hon''ble High Court of Bombay vide order dated April 05, 2013. The scheme was effective from January 01, 2013.

8. General reserve (arisen pursuant to various schemes):

(a) The General reserve of Rs. 111,503 lakhs had arisen pursuant to the composite scheme of arrangement between the Company, Reliance Natural Resources Limited, erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz. Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited. The said scheme has been sanctioned by Hon''ble High Court of Judicature at Bombay vide order dated October 15, 2010.

(b) The General reserve of Rs. 18,707 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infraventure Private Limited, sanctioned by the Hon''ble High Court of Bombay vide order dated April 29, 2011. The scheme was effective from January 01, 2011.

(c) The General reserve of Rs. 22,984 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited, sanctioned by the Hon''ble High Court of Bombay, vide order dated December 23, 2011. The scheme was effective from September 01, 2011.

All the above General reserves are reserves which arose pursuant to the above schemes and shall not be and shall not for any purpose be considered to be a reserve created by the Company.

9. Project status of Subsidiaries

(a) Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been set up to develop an Ultra Mega Power Project (UMPP) of 3,960 MW capacity located in Krishnapatnam, District Nellore, based on imported coal.

CAPL had entered into a firm price fuel supply agreement which envisaged supply of coal from Indonesia with Reliance Coal Resources Private Limited (RCRPL), a wholly owned subsidiary of the Company. In view of below mentioned new regulation, RCRPL cannot supply coal at the already agreed price, because of which there is a risk of inability to pass through market linked prices of imported coal for the project, whereas the power needs to be supplied at a pre-agreed tariff as per the terms of Power Purchase Agreement (PPA) dated March 23, 2007. The Government of Indonesia introduced a new regulation in September 2010 which prohibits sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and requires adjustment of sale price every 12 months. This regulation also mandates to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September 2011. The said issue has been communicated to the power procurers and also to the Government of India through the Association of Power Producers to arrive at a suitable solution to the satisfaction of all the stakeholders.

Since no resolution could be arrived at CAPL invoked the dispute resolution provision of PPA. The procurers have also issued a notice for termination of PPA and have raised a demand for liquidated damages of Rs. 40,000 lakhs (including bank guarantee of Rs. 30,000 lakhs, which has been issued by the holding company on behalf of CAPL).

CAPL has filed a petition before the Hon''ble High Court at Delhi, inter-alia, for interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The Court vide its order dated March 20, 2012 has prohibited the Procurers from taking any coercive steps against the CAPL. The single judge of the Delhi High Court vide order dated July 2, 2012 dismissed the petition and the appeal filed by CAPL against the said order is pending before the Division Bench of the Delhi High Court. The interim protection against encashing bank guarantees continues to be available.

CAPL has also filed a petition before the Central Electricity Regulatory Commission (CERC) without prejudice to the proceedings pending before the Delhi High Court and the arbitration process has already initiated. During the course of the CERC proceedings, the power procurers contended that the petition could not be taken up for hearing by CERC since the matter was pending at High Court. CAPL, in response contended that both proceedings are different and independent. The CERC petition did not raise issue of notice of termination. Considering appeal is pending before the Delhi High Court, CERC has disposed off the petition vide its order dated 06.08.2015 with a liberty to the Petitioner to approach the Commission at appropriate stage in accordance with law.

Based on the impairment assessment, considering the current status of the project, nature of expenditure incurred and estimated timeline for settlement of this matter, the Company has provided for diminution in the value of equity investments of Rs. 52,500 lakhs as an exceptional item in the Statement of Profit and Loss Account.

(Also refer note 10 (a)).

(b) Samalkot Power Limited (SMPL)

SMPL, a wholly owned subsidiary, is in the process of constructing a gas based power plant at Kakinada, which based on the current circumstances, has planned its construction work and consequential commercial operations thereafter progressively starting from 2017-2018 and it has incurred an aggregated cost of Rs. 920,141 lakhs as at March 31, 2016. SMPL has applied for allocation of gas and Ministry of Petroleum and Gas (MoPNG) is yet to allocate the gas linkage. Considering that the gas availability in the country has dropped significantly and also based on gas availability projected scenarios in subsequent years. SMPL is actively pursuing / making representations with various government authorities to secure the gas linkage / supply and is evaluating alternative arrangements / various approaches to deal with the situation in respect of its 2,262 MW (754 MW X 3) gas based power project.

SMPL is also exploring options for relocating the project, partially or fully, to other countries and in this context the Parent Company has entered into a Memorandum of Understanding with Government of Bangladesh (GoB) for developing gas project of 3,000 MW capacity. Subsequent to the year end, GoB has given an in principle approval for setting up of a 754 MW project at Meghnaghat, together with setting up of a Floating Storage and Regasification Unit (FSRU) based Liquefied Natural Gas (LNG) terminal at Maheshkhali, for which project agreements are being negotiated. In view of the above developments, SMPL is presently continuing with implementation of 1,508 MW (754 MW X 2) at existing location and plans to relocate the balance 754 MW capacity (754 MW X 1) to Bangladesh.

Based on the business plans and valuation assessment done by the management of SMPL, it is confident that the carrying value of net assets of SMPL is appropriate and consequently, there is no diminution in the value of investment made by the Company..

(c) Jharkhand Integrated Power Limited (JIPL)

JIPL, a wholly owned subsidiary, has been set up to develop Ultra Mega Power Project (UMPP) of 3960 MW capacity located in Tilaiya, Hazaribagh District, Jharkhand. The project being developed by JIPL was awarded to the Company through International Competitive Bidding (ICB), under the UMPP regime. Consequently JIPL was handed over to Company on August 7, 2009 by Power Finance Corporation (PFC). JIPL has signed Power Purchase Agreement (PPA) with 18 procurers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block.

As per the Power Purchase Agreement (PPA) between JIPL and the Procurers, the Procurers were obligated to comply with conditions subsequent to entering the PPA which inter-alia required providing requisite land for the Project within 6 months of the Project Transfer. Considering the status of the project and updates from the procurers, the Company terminated the PPA on April 28, 2015 as per the option available therein. The procurers have also agreed to the termination of the PPA by JIPL and have agreed to pay certain expenditure incurred by JIPL on the project pursuant to the minutes of the meeting held on November 03, 2015. It has also been agreed that the shares held by the Company in JIPL would be transferred to the Procurers upon completion of the final settlement.

Considering the said settlement process, the Company has taken over the balance expenditure of Rs. 13,186 lakhs in the books of JIPL and charged off the same in the Statement of Profit and Loss Account as an exceptional item. Also refer note 10(a) below.

10. Exceptional Items

a) Pursuant to the Scheme of Amalgamation sanctioned by the High Court of Bombay on April 05, 201 3 (refer note 7 above), the Company is permitted to offset any exceptional / extraordinary items, as determined by the Board of Directors, debited in the Statement of Profit and Loss by a corresponding withdrawal from General Reserve.

During the year ended March 31, 2016 the Board of Directors of the Company, in terms of the aforesaid Scheme, have identified expenditure write off of Rs. 13,186 lakhs in relation to Tilaiya Ultra mega Power Project (TUMPP) (Refer note 9(c) above) and provision for diminution in the value of the equity investments by Rs. 52,500 lakhs made in CAPL (Refer note 9(a) above) as an exceptional items, which have been debited to Statement of Profit and Loss and withdrew an equivalent amount from General Reserve and credited to the Statement of Profit and Loss.

b) Similarly, pursuant to the Scheme of Amalgamation sanctioned by the High Court of Bombay on October 26, 2010 (refer note 8(a) above), the Company is permitted to offset any expense or loss which in the opinion of the Board of Directors is related to factors such as variation in exchange rates which are beyond the control of the Company, debited in the Statement of Profit and Loss by a corresponding withdrawal from General Reserve.

During the year ended March 31, 2016, the Board of Directors of the Company, in terms of the aforesaid Scheme has identified the write down in the value of advance by Rs. 9,801 lakhs given to ESOS trust for purchase of shares (Refer note 12 below) as an exceptional item, which is beyond the control of the Company, which have been debited to Statement of Profit and Loss and withdrew an equivalent amount from General Reserve (arisen pursuant to the Composite Scheme of Arrangement) and credited to the Statement of Profit and Loss.

Had such withdrawal not been done, the Company would have incurred a loss before tax of Rs. 35,074 lakhs and General Reserve would be higher by Rs. 65,686 lakhs and General Reserve (arisen pursuant to the Composite Scheme of Arrangement) would be higher by Rs. 9,801 lakhs. The above treatment prescribed by the above Schemes overrides the relevant provisions of Accounting Standard 5 (AS-5) Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies''.

11. Applicability of NBFC Regulations

The Company, based on the objects given in the Memorandum of Association, its role in construction and operation of power plants through subsidiaries and other considerations, has been legally advised that the Company is not covered under the provisions of Non-Banking Financial Company as defined in Reserve Bank of India Act, 1 934 and accordingly is not required to be registered under section 45 IA of the said Act.

12. Employee Stock Option Scheme (ESOS)

Pursuant to the approval accorded by the Shareholders on September 30, 2007 under Section 81(1A) of the Companies Act,1 956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. The Board of Directors of the Company has constituted its ESOS compensation committee to operate and monitor the ESOS scheme which is administered through Reliance Power ESOS Trust ("RPET").

The ESOS compensation committee of the Board of Directors of the Company approved a grant of 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 8, 2010. The options are granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan. In accordance with the scheme, each option entitles the employee to apply for one fully paid equity share of Rs. 10 each of the Company at an exercise price of Rs. 162 per share. Pursuant to the amendments made to the ESOS Scheme as approved by the ESOS Compensation Committee of the Board, effective from April 01, 2014, the Independent Directors of the Company shall not be eligible to participate in the Scheme. Further, the exercise period of the vested options may be different for different plans and shall not be longer than ten years from the date of vesting.

The Company has opted for accounting the Compensation expenses under ''Intrinsic Value Method''. The closing market price on the date of grant was Rs. 140.20 per share at National Stock Exchange (being the latest trading price with highest trading volume).

The Company had in earlier years given an advance of Rs. 14,000 lakhs to RPET for purchase of its shares from the open market, as per the ESOS plan of the Company. RPET had, in turn in earlier years purchased 8,500,000 equity shares of the Company. In accordance with SEBI (ESOS and ESPS) Guidelines, 1999 and as per the opinion issued in January 2014 by Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India ("ICAI"), the Company had consolidated financial statement of RPET with the Company''s financial statement as at March 31, 2014. Pursuant to revised guidelines issued by SEBI on ESOS- Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 dated October 28, 2014, accounting for shared based schemes should be done based on the requirements of Guidance Note on Accounting for Share based Payments wherein consolidation of trust is prohibited. Consequently, considering the regulatory change, the Company has changed its accounting policy with respect to consolidation of RPET and restated the face value of equity shares (held by RPET) which was deducted from the paid up share capital and balance Rs. 13,082 lakhs (net of bank balance of RPET) which was grouped under the securities premium account, with a corresponding adjustment to "Advance to RPET" in the previous year.

Further, considering the current market value of the shares, option exercise price and other factors, the Company has written down the value of advances given to the RPET by Rs. 9,801 lakhs in the Statement of Profit and Loss Account as an exceptional item (Refer Note 10 (b)).

13. Status of Dadri Project

The Company proposed developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh in the year 2003. The state of Uttar Pradesh (The State) in the year 2004 acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. The acquisition of land by the state for the project was challenged by certain land owners in the Allahabad High Court. The High Court quashed a part of acquisition proceedings by the State and directed them to fulfill certain compliances. Subsequent to the judgement of High Court on compliances and procedures relating to land acquisition the Company filed an appeal before Supreme Court. Before the pronouncement of judgement by the Supreme Court, the Company submitted an affidavit stating its inability to continue with the project because of the difficulty in securing the gas supply for the project. The Supreme Court in its order disposed off the appeal and upheld the right of the Company to recover the amount paid towards the land acquired and conveyed to it by the state on its return to the state.

The Company has already conveyed its intent to return the acquired land to Government of Uttar Pradesh and raised the claim for the cost incurred on the land acquisition as well as other incidental expenditure thereto.

The Company has realized amount of Rs. 2,522 lakhs from the Government of Uttar Pradesh and the balance amount is expected to be recovered in the future.

Considering the above facts, the Company has classified assets related to Dadri project under ''other current assets'' as ''assets held for sale'' and ''advance recoverable towards land''.

14. Disclosure under Accounting Standard 15 (revised 2005) "Employee Benefits" (AS-15)

The Company has classified various employee benefits as under:

Defined contribution plans

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

15. Segment reporting:

The Company operates in two business segments i.e. Power generation and Associated business activities (termed as "Others"). Associated business activities include project management, supervision and support services for generation and allied processes. Business segments have been identified as reportable primary segment in accordance with Accounting Standard 17 ''Segment Reporting'' as prescribed under the Companies (Accounting Standards) Rules, 2006, taking into account the organisational and internal reporting structure as well as evaluation of risk and return for these segments. Segment reporting policies are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included as "un-allocable".

Geographical Segments: The Company''s operations are mainly confined within India and as such there are no reportable geographical segments.

16. Conversion of Debentures

The wholly owned subsidiary CAPL, based on approval of its Board of Directors and on the basis of approval of Board of Directors of the Company at the meeting held on March 25, 201 6, has converted 10,000 Secured Debentures of Rs. 1,000,000 each amounting to Rs. 100,000 lakhs into 5,500 fully paid equity shares of Rs. 10 each and balance Rs. 45,000 lakhs as Interest free Inter Corporate Deposits payable to the Company.

The wholly owned subsidiary CPPL, based on approval of its Board of Directors and on the basis of approval of Board of Directors of the Company at the meeting held on March 30, 2016, has converted 1 2,700 Compulsory Convertible Unsecured Debentures of Rs. 1,000,000 each into Interest free Interest Corporate Deposit payable to the Company.

17. Exchange Difference on Long Term Monetary Items

In respect of exchange difference arising on long term foreign currency monetary items, the Company has availed the option available in the Companies (Accounting Standard) (Second Amendment) Rules, 2011, vide notification dated December 29, 2011 issued by Ministry of Corporate Affairs. Accordingly, the Company has accumulated a gain of Rs. 27,857 lakhs (Previous year Rs. 28,384 lakhs) to "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of long term monetary items other than on account of depreciable assets and the Company has adjusted the value of Plant and equipment by Rs. 768 lakhs (Previous year Rs. 558 lakhs) towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets.

18. Corporate social responsibility (CSR)

As per the section 135 of the Companies Act, 2013, the Company is required to spend Rs. 402 lakhs (Previous year: Rs. 318 lakhs), being 2% of the average net profit during the three immediately preceding financial years, towards CSR activity. The Company has made a contribution of Rs. 402 lakhs (previous year Rs. 587 lakhs) to a Non-profit organization to facilitate the setting up of day care oncology centers in different districts of Maharashtra.

19. The Company''s wind power project at Vashpet is eligible for a tax holiday under Section 80- IA of Income Tax Act, 1961. The Company has recognized deferred liability of Rs. 139 lakhs on account of timing difference originating as on the date and reversing after the tax holiday period with respect to depreciation on assets relating to wind power project. Considering the principles of virtual certainty, the Company has not recognised deferred tax asset on accumulated business loss as per the Income Tax Act, 1961.

20. The Company has paid maiden interim dividend of Re.1 per equity share of Rs. 10 each. The Board of Directors have confirmed the above as the final dividend for the year 2015-16. The dividend is subject to approval of Shareholders in the ensuing Annual General Meeting.

28) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

Disclosure of amounts payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

21. The figures for the previous year are re-classified / re-grouped, wherever considered necessary.

Mar 31, 2015

1) Contingent liabilities and commitments:

(a) Guarantees issued for subsidiary companies aggregating to Rs. 275,222 lakhs (Previous year: Rs. 236,1 29 lakhs). Refer note 1 2 (a) with respect to Coastal Andhra Power Limited

(b) In respect of subsidiaries, the Company has committed/ guaranteed to extend financial support in the form of equity or debt as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiary including any capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/ debt servicing. Future cash flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors

(c) Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs. 75 lakhs (Previous year: Rs. 59 lakhs)

2) Capital reserve (arisen pursuant to scheme):

The Capital reserve of Rs. 59,995 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Reliance Clean Energy Private Limited (RCEPL), sanctioned by the Hon'ble High Court of Bombay vide order dated April 5, 201 3. The scheme was effective from January 1, 201 3,

3) General reserve (arisen pursuant to various schemes):

(a) The General reserve of Rs. 11 1,503 lakhs had arisen pursuant to the composite scheme of arrangement between the Company, Reliance Natural Resources Limited, erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz., Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited. The said scheme has been sanctioned by Hon'ble High Court of Judicature at Bombay vide order dated October 1 5, 201 0.

(b) The General reserve of Rs. 1 8,707 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infraventure Private Limited, sanctioned by the Hon'ble High Court of Bombay vide order dated April 29, 201 1. The scheme was effective from January 1, 2011

(c) The General reserve of Rs. 22,984 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited, sanctioned by the Hon'ble High Court of Bombay, vide order dated December 23, 201 1. The scheme was effective from September 1, 201 1

All the above General Reserves are reserves which arose pursuant to the above schemes and shall not be and shall not for any purpose be considered to be a reserve created by the Company

4) Scheme of amalgamation between Company and Reliance Clean Power Private Limited

Reliance Clean Power Private Limited (RCPPL), a wholly owned subsidiary in business of development and operation of 45 MW wind power project at Vashpet, was amalgamated with the Company pursuant to the Scheme of Amalgamation (Scheme) sanctioned by the Hon'ble High Court of Judicature at Bombay vide its order dated May 9, 201 4 with an appointed date of April 1, 2012.

5) Employee stock option scheme (ESOS)

Pursuant to the approval accorded by the Shareholders on September 30, 2007 under Section 81(1 A) of the Companies Act,1 956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,1 999 (Guidelines). The Board of Directors of the Company has constituted its ESOS compensation committee to operate and monitor the ESOS scheme which is administered through Reliance Power ESOS Trust ("RPET")

The ESOS compensation committee of the Board of Directors of the Company approved a grant of 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 8, 201 0. The options are granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS plan. In accordance with the scheme, each option entitles the employee to apply for one fully paid equity share of Rs. 1 0 each of the Company at an exercise price of Rs.1 62 per share. Pursuant to the amendments made to the ESOS Scheme as approved by the ESOS compensation committee of the Board, effective from April 1, 201 4, the Independent Directors of the Company shall not be eligible to participate in the Scheme. Further, the exercise period of the vested options may be different for different plans and shall not be longer than ten years from the date of vesting.

The Company has opted for accounting the Compensation expenses under "Intrinsic Value Method". The closing market price on the date of grant was Rs.1 40.20 per share at National Stock Exchange (being the latest trading price with highest trading volume). As the exercise price of the share is more than market price, the Company has not accounted for any compensation cost.

The Company had in earlier years given an advance of Rs.1 4,000 lakhs to RPET for purchase of its shares from the open market, as per the ESOS plan of the Company. RPET had, in turn in earlier years purchased 8,500,000 equity shares of the Company In accordance with SEBI (ESOS and ESPS) Guidelines, 1 999 and as per the opinion issued in January, 2014 by Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India ("ICAI"), the Company had consolidated financial statement of RPET with the Company's financial statement as at March 31, 2014 and consequently as of and for the year ended March 31, 2014, face value of equity shares (held by RPET) was deducted from the paid up share capital and balance Rs.1 3,082 lakhs (net of bank balance of RPET) was grouped under the securities premium account, with a corresponding adjustment to "Advance to RPET".

Pursuant to revised guidelines issued by SEBI on ESOS - Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 dated October 28, 2014, accounting for shared based schemes should be done based on the requirements of Guidance Note on Accounting for Share based Payments wherein consolidation of trust is prohibited Consequently, considering the regulatory change, the Company has changed its accounting policy with respect to consolidation of RPET and restated the face value of equity shares (held by RPET) which was deducted from the paid up share capital and balance Rs. 13,082 lakhs (net of bank balance of RPET) which was grouped under the securities premium account, with a corresponding adjustment to "Advance to RPET",

6) Status of Dadri Project

The Company proposed developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 had acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. The acquisition of further 400 acres of land by the state for the project was challenged by the land owners in the Allahabad High Court. Subsequent to the judgement of High Court on compliances and procedures relating to land acquisition the Company had filed an appeal with the Supreme Court. Before the pronouncement of judgement by the Supreme Court, the Company submitted an affidavit stating its inability to continue with the project because of the difficulty in securing gas. The Supreme Court in its order has disposed off the appeal and upheld the right of the Company to recover the amount paid towards the acquired land on its return to the state

The Company has already conveyed its intent to return the acquired land to Government of Uttar Pradesh and raised the claim for the cost incurred on the land acquisition as well as other incidental expenditure thereto

Considering the above facts, the Company has classified assets related to Dadri project under 'other current assets' as 'assets held for sale' and 'advance recoverable towards land', which were earlier shown as 'fixed assets' and 'capital advance', respectively

7) Project status of subsidiaries

(a) Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been set up to develop an Ultra Mega Power Project (UMPP) of 3,960 MW located in Krishnapatnam, District Nellore, based on imported coal

CAPL had entered into a firm price fuel supply agreement with Reliance Coal Resources Private Limited (RCRPL), a wholly owned subsidiary of the Company. In view of below mentioned new regulation, RCRPL cannot supply coal at the already agreed price, because of which an element of uncertainty has arisen in the fuel supply for the CAPL project, whereas the power needs to be supplied at a pre-agreed tariff as per the terms of Power Purchase Agreement (PPA) dated March 23, 2007. The Government of Indonesia introduced a new regulation in September, 201 0 which prohibits sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and requires adjustment of sale price every 1 2 months. This regulation also mandates to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September, 2011. The said issue has been communicated to the power procurers and also to the Government of India through the Association of Power Producers to arrive at a suitable solution to the satisfaction of all the stakeholders.

Since no resolution could be arrived at CAPL invoked the dispute resolution provision of PPA. The procurers have also issued a notice for termination of PPA and have raised a demand for liquidated damages of Rs. 40,000 lakhs (including bank guarantee of Rs. 30,000 lakhs, which has been issued by the holding company on behalf of CAPL)

CAPL has filed a petition before the Hon'ble High Court at Delhi inter-alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1 996. The Court vide its order dated March 20, 201 2 has prohibited the procurers from taking any coercive steps against the Company. The single judge of the Delhi High Court vide order dated July 2, 2012 dismissed the petition and the appeal filed by CAPL against the said order is pending before the Division Bench of the Delhi High Court. The interim protection against encashing bank guarantees continues to be available

CAPL has also filed a petition before the Central Electricity Regulatory Commission without prejudice to the proceedings pending before the Delhi High Court and the arbitration process has already been initiated. The Commission adjourned the Petition sine a die with permission to mention the matter after disposal of the appeal pending before the Division Bench of the Delhi High Court.

Based on the legal opinion obtained with regard to applicability of force majeure clause for the change in law in Indonesia and other impacts thereof on the implementation of the project and considering the nature of expenditure incurred till date at the project and its valuation done by the management of CAPL, no provision for diminution is considered in respect of investment made by the Company and demands raised by the procurers of power

(b) Samalkot Power Limited (SMPL)

SMPL, a wholly owned subsidiary, is in the process of constructing a 2,262 MW (754 MW x 3) gas based power plant at Kakinada, which based on the current circumstances, has planned its construction work and consequential commercial operations thereafter progressively starting from 201 6 - 201 7, and it has incurred an aggregated cost of Rs. 868,791 lakhs as at March 31, 201 5. SMPL has applied for allocation of gas and Ministry of Petroleum and Gas (MoPNG) is yet to allocate the gas linkage. Considering that the gas availability in the country has dropped significantly and also based on gas availability projected scenarios in subsequent years, SMPL is actively pursuing/ making representations with various government authorities to secure the gas linkage/ supply and is evaluating alternative arrangements/ various approaches to deal with the situation. Based on the business plans and valuation assessment done by the management of SMPL, it is confident that the carrying value of the net assets of SMPL is appropriate and consequently, there is no diminution in the value of investment made by the Company

(c) Jharkhand Integrated Power Limited (JIPL)

JIPL, a wholly owned subsidiary, has been set up to develop Ultra Mega Power Project of 3,960 MW located in Tilaiya Hazaribagh District, Jharkhand. 3,960 MW Tilaiya Ultra Mega Power Project (UMPP) the project being developed by JIPL was awarded to the Company through International Competitive Bidding (ICB), under the UMPP regime. Consequently JIPL was handed over to Company on August 7, 2009 by Power Finance Corporation (PFC). JIPL has signed Power Purchase Agreement (PPA) with 18 procurers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block.

As per the Power Purchase Agreement (PPA) between JIPL and procurers, the procurers were obligated to comply with conditions subsequent to entering the PPA which inter-alia required providing requisite land for the project within 6 months of the Project Transfer. The Company has not been handed over the possession of the land as stipulated in the PPA even after the lapse of more than 5 years and persistent efforts of the Company since the transfer of project. Considering the updates from the procurers at the meeting held after the year end and their failure to fulfill their obligation under PPA, the Company terminated the PPA on April 28, 201 5 as per the option available therein

Considering the nature of expenditure incurred till date at the project and internal assessment done by management of JIPL, no adjustments to the value of investments is considered necessary

8) Disclosure under Accounting Standard 15 (revised 2005) "Employee Benefits" (AS-1 5)

The Company has classified various employee benefits as under: Defined contribution plans:

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. 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 in the Statement of Profit and Loss for the year:

9) Segment reporting:

The Company operates in two business segments i.e. Power generation and Associated business activities (termed as "Others") Associated business activities include project management, supervision and support services for generation and allied processes Business segments have been identified as reportable primary segment in accordance with Accounting Standard 1 7 'Segment Reporting' as prescribed under Companies (Accounting Standards) Rules, 2006, taking into account the organisational and internal reporting structure as well as evaluation of risk and return for these segments. Segment reporting policies are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included as "un-allocable".

Geographical Segments: The Company's operations are mainly confined within India and as such there are no reportable geographical segments.

10) Related party transactions:

As per Accounting Standard-1 8 'Related Party Disclosures' as prescribed under Companies (Accounting Standards) Rules, 2006 the Company's related parties and transactions are disclosed below:

A. Parties where control exists:

Subsidiaries (Direct and step-down subsidiaries):

1. Sasan Power Limited (SPL)

2. Rosa Power Supply Company Limited (RPSCL)

3. Maharashtra Energy Generation Limited (MEGL)

4. Vidarbha Industries Power Limited (VIPL)

5. Tato Hydro Power Private Limited (THPPL)

6. Siyom Hydro Power Private Limited (SHPPL)

7. Chitrangi Power Private Limited (CPPL)

8. Urthing Sobla Hydro Power Private Limited (USHPPL)

9. Kalai Power Private Limited (KPPL)

10. Coastal Andhra Power Limited (CAPL)

11. Reliance Coal Resources Private Limited (RCRPL)

12. Amulin Hydro Power Private Limited (AHPPL)

13. Emini Hydro Power Private Limited (EHPPL)

14. Mihundon Hydro Power Private Limited (MHPPL)

15. Jharkhand Integrated Power Limited (JIPL)

16. Reliance CleanGen Limited (RCGL)

17. Rajasthan Sun Technique Energy Private Limited (RSTEPL)

18. Dhursar Solar Power Private Limited (DSPPL)

19. Moher Power Limited (MPL)

20. Samalkot Power Limited (SMPL)

21. Reliance Prima Limited (RPrima)

22. Atos Trading Private Limited (ATPL)

23. Atos Mercantile Private Limited (AMPL)

24. Coastal Andhra Power Infrastructure Limited (CAPIL)

25. Reliance Power Netherlands BV (RPN)

26. PT Heramba Coal Resources (PTH)

27. PT Avaneesh Coal Resources (PTA)

28. Reliance Natural Resources Limited (RNRL)

29. Reliance Natural Resources (Singapore) Pte. Limited (RNRL- Singapore)

30. Reliance Solar Resources Power Private Limited (RSRPPL)

31. Erstwhile Reliance Clean Power Private Limited (RCPPL) (Refer note 9)

32. Reliance Wind Power Private Limited (RWPPL)

33. Reliance Green Power Private Limited (RGPPL)

34. PT Sumukha Coal Services (PTS)

35. PT Brayan BintangTiga Energi (BBE)

36. PT Sriwijiya BintangTiga Energi (SBE)

37. Shangling Hydro Power Private Limited (SPPL)

38. Sumte Kothang Hydro Power Private Limited (SKPL)

39. Teling Hydro Power Private Limited (TPPL)

40. Lara Sumta Hydro Power Private Limited (LHPPL)

41. Purthi Hydro Power Private Limited (PHPPL)

42. Reliance Geothermal Power Private Limited (RGTPPL) (w.e.f January 17, 2015)

B (I). Investing parties/ promoters having significant influence on the Company directly or indirectly Companies

Reliance Infrastructure Limited (R Infra) Individual Shri Anil D Amban B (II). Other related parties with whom transactions have taken place during the year:

(i) Key Management Personnel:

1. Shri J P Chalasani (Chief Executive Officer) (upto October 31, 201 3)

2. Shri Ramaswami Kalidas (Company Secretary and Manager)

3. Shri Venugopala Rao (Chief Financial Officer) (up to September 26, 2014)

4. Shri Ashutosh Agarwala (Chief Financial Officer) (w.e.f. September 26, 201 4) (ii) Enterprises over which individual described in clause B (I) above have control:

1. Reliance Infocomm Infrastructure Limited (RIIPL)

2. Reliance General Insurance Company Limited (RGICL)

3. Reliance Communication Infrastructure Limited (RCIL)

4. Reliance Capital Limited (RCL)

5. Reliance Communication Limited (RCom)

(iii) Other transactions:

(a) As per the terms of sponsor support agreement entered for the purpose of security of term loans availed by subsidiaries, the Company is required to pledge following percentage of its shareholding in the respective subsidiaries

- 100% of equity shares of Sasan Power Limited

- 100% of equity shares of Dhursar Solar Power Private Limited

- 100% of equity shares of Rajasthan Sun Technique Energy Private Limited

- 100% of preference shares of Sasan Power Limited

- 100% of preference shares of Dhursar Solar Power Private Limited

- 100% of preference shares of Rajasthan Sun Technique Energy Private Limited

(b) The Company has given commitments/ guarantees for loans taken by SPL, SMPL, VIPL, DSPL and RSTEPL, (Refer note 4 (b)).

(c) During the previous year, Company has sold (at estimated fair value) 892,000 7.5% 1 5 years Non Cumulative Non Convertible Redeemable Preference Shares (NCRPS) issued by one wholly owned subsidiary to another wholly owned subsidiary. The Preference Shares have been sold for Rs. 3,648 lakhs and the resultant loss of Rs. 4,798 lakhs on sale of Investment has been charged off to the Statement of Profit and Loss account. This loss has no impact on the consolidated accounts of the Company

(iv) The above disclosures do not include transactions with public utility service providers, viz., electricity, telecommunications in the normal course of business.

11) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

Disclosure of amounts payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years,

12) Exchange Difference on Long-term Monetary Items

In respect of exchange difference arising on Long-term foreign currency monetary items, the Company has availed the option available in the Companies (Accounting Standard) (Second Amendment) Rules, 201 1, vide notification dated December 29 2011 issued by Ministry of Corporate Affairs. Accordingly, the Company has accumulated a gain ofRs. 28,384 lakhs (Previous year: Rs. 29,407 lakhs) to "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of Long-term monetary items other than on account of depreciable assets and the Company has adjusted the value of Plant and equipment by Rs. 558 lakhs (Previous year: Rs. 1,1 1 5 lakhs) towards the exchange difference arising on Long-term foreign currency monetary liabilities towards depreciable assets,

13) Corporate social responsibility (CSR)

The Company is under obligation to incur an expenditure of Rs.31 8 lakhs, being 2% of the average net profits during the three immediately preceding financial years, towards CSR calculated in the manner as stated in the Act. Accordingly, the Company has made a contribution of Rs. 587 lakhs to a Non-profit organization to facilitate the setting up of day care oncology centers in different districts of Maharashtra

14) Consequent to the Act, being effective from April 1, 2014, the Company has provided depreciation based on useful life as prescribed under Part A and Part C of Schedule II of the Act. Had the Company continued the earlier accounting policy, depreciation for the year would have been lower by Rs. 11 3 lakhs and profit would have been higher by an equivalent amount,

15) The Company's wind power project at Vashpet is eligible for a tax holiday under Section 80- IA of Income Tax Act, 1 961 Considering the principles of prudence and virtual certainty, the Company has not recognised a net deferred tax asset amounting to Rs. 85 lakhs.

16) The figures for the previous year are re-classified/ re-grouped, wherever considered necessary

Mar 31, 2014

1) General information

Reliance Power Limited ("the Company") together with its subsidiaries ("Reliance Power group") is primarily engaged in the business of generation of power. The projects under development include coal, gas, hydro, wind and solar based energy projects. During the year, pursuant to the Scheme of Amalgamation with Reliance Clean Power Private Limited, the Company has taken over 45 MW wind power project at Vashpet, which has declared commercial operations with effect from June 30, 2013 (Refer note 9). The portfolio of the Reliance Power group also includes three ultra mega power projects (UMPP) of 3,960 MW each.

1.1.1 Terms/ rights attached to equity shares

The Company has only one class of equity shares having face value of Rs.10 per share. Each holder of the equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts.

1.1.2 Aggregate number of bonus shares issued and shares issued for consideration other than cash during the fi ve years immediately preceding the reporting date

a) During the year ended March 31, 2009, the Company had issued 136,800,000 equity shares of Rs.10 each as fully paid bonus shares by capitalisation of Rs.13,680 lakhs from securities premium account.

b) During the year ended March 31, 2011, the Company had issued 408,282,606 equity shares of Rs.10 each fully paid to the shareholders of Reliance Natural Resources Limited as a consideration for transfer of business undertaking from Reliance Natural Resources Limited under the composite scheme of arrangement sanctioned by High Court of Bombay on October 15, 2010.

1.1.4 Nature of security for term loans

The term loans had been obtained by Erstwhile Reliance Clean Power Private Limited (Refer note 9) to set up the 45 MW wind power project at Vashpet ("Project"). The term loans are secured pari passu among the lenders by first ranking mortgage / hypothecation / charge on:

a) All the immovable properties and assets of the Project, present and future.

b) All the movable properties and assets of the Project, present and future.

c) All the intangible assets of the Project, present and future.

d) All the bank accounts in relation to the Project, present and future.

e) Assignment by way of security of :

- All rights, titles and interest of the Project in, to and under all other assets of the Project.

- The Project''s rights under each of the project documents, insurance policies and clearances related to the Project.

f) All the Project''s rights and interests under letter of credit, corporate guarantees, performance bonds or any such other security provided by any of the contractor or any other person under the power purchase agreement or any other project documents or otherwise in favour of the Project.

1.1.5 Terms of repayment

Rupee term loan is repayable in 47 quarterly instalments commencing from September 2013.

Foreign currency term loan is repayable in 42 quarterly instalments commencing from September 2013.

1.1.6 Interest

Rupee term loan carried an interest rate of State Bank of India (SBI) base rate plus 2.5% per annum, payable on a monthly basis upto the date of commencement of commercial operations. Post commencement of commercial operations, the rupee term loan carries an interest rate of SBI base rate plus 2.25% per annum.

Foreign curreny loan carries an interest rate of USD 6 month LIBOR plus 4.5% per annum.

1.1.7 Other long-term borrowings

Nature of security, terms of repayment and interest of current maturities of long-term borrowings:

The Company has obtained long term loan from banks (classifi ed as current maturities of long term borrowings. Refer note 3.8) which is secured by first pari passu charge over the current assets of the Company including receivables. The loan is repayable after a tenure of 14 months from the date of first disbursement (i.e. July 31, 2013). The loan carries an interest rate of Axis bank base rate plus 2% per annum.

1.1.8 Unsecured debentures

Long term borrowing of the Company includes debentures issued to a related party (classifi ed as current maturities of long term borrowings. Refer note 3.8) redeemable after a period of 366 days from the date of issue. The debentures carry an interest rate of 10.50% per annum payable at redemption.

1.1.9 Terms of repayment and interest

- Working capital loan carries an interest rate of IDBI base rate plus 2.50% per annum and is repayable on demand.

- Non-convertible debenture carries an interest rate of 10.20 % per annum payable on half yearly basis. These debentures are redeemable at par on June 12, 2014.

- Commercial paper were issued at a discount of 10.50% and have a tenure of 180 days.

4) (a) Contingent liabilities

- Counter guarantees / Bank guarantees issued on behalf of subsidiary companies aggregating to Rs. 236,129 lakhs (Previous year Rs. 240,355 lakhs).

Â Refer note 12 (a) with respect to Coastal Andhra Power Limited.

(b) Capital commitments

Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs. 59 lakhs (Previous year Rs. 136 lakhs).

(c) Other commitments

The Company has ongoing commitments given to lenders or procurers of power or other regulatory authorities to extend support and provide equity in respect of various projects undertaken by the respective subsidiaries, wherein the amounts of investment would vary considering the project cost and debt equity ratio agreed with the respective lenders.

7) Capital reserve (arisen pursuant to scheme):

The Capital reserve of Rs. 59,995 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Reliance Clean Energy Private Limited (RCEPL), sanctioned by the Hon''ble High Court of Bombay vide order dated April 5, 2013. The Scheme was effective from January 1, 2013. As per the Scheme, the investment of Rs. 60,001 lakhs of the Company in 6,010,000 equity shares of RCEPL had been cancelled and written off in the Statement of profit and Loss. The Company has taken over all the assets aggregating to Rs. 60,000 lakhs and liabilities aggregating to Rs. 5 lakhs at their respective book values, further an equivalent amount of Rs. 60,001 lakhs has been withdrawn from the general reserve and credited to the Statement of profit and Loss in the previous year. The difference aggregating to Rs. 59,995 lakhs being the excess arising on transfer of assets and liabilities has been treated as capital reserve (arising pursuant to the Scheme).

8) General reserve (arisen pursuant to various schemes):

a) The General reserve of Rs. 111,503 lakhs had arisen pursuant to the composite scheme of arrangement between the Company, Reliance Natural Resources Limited, erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz. Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited. The said Scheme has been sanctioned by Hon''ble High Court of Judicature at Bombay vide order dated October 15, 2010.

b) The General reserve of Rs. 18,707 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infraventure Private Limited, sanctioned by the Hon''ble High Court of Bombay vide order dated April 29, 2011. The Scheme was effective from January 1, 2011.

c) The General reserve of Rs. 22,984 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited, sanctioned by the Hon''ble High Court of Bombay, vide order dated December 23, 2011. The Scheme was effective from September 1, 2011.

All the above General Reserves are reserves which arose pursuant to the above schemes and shall not be and shall not for any purpose be considered to be a reserve created by the Company.

9) Scheme of amalgamation between the Company and Reliance Clean Power Private Limited

Reliance Clean Power Private Limited (RCPPL), a wholly owned subsidiary in business of development and operation of 45 MW wind power project at Vashpet, was amalgamated with the Company pursuant to the Scheme of Amalgamation (Scheme), as on and from April 1, 2012, being the appointed date pursuant to the approval of Board of Directors of the Company and sanctioned by the Hon''ble High Court of Judicature at Bombay vide its order dated May 9, 2014 which was filed with the Registrar of Companies on May 16, 2014.

The Company has carried out the accounting treatment prescribed in the Scheme as approved by the Hon''ble High Court of Judicature at Bombay. The required disclosures for accounting of Scheme as per the "Purchase Method" as given under Accounting Standard 14 (AS 14) ''Accounting for Amalgamations'' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided.

Hence, in accordance with the Scheme:

a) The Company has taken over all the assets aggregating to Rs.18,875 lakhs and liabilities aggregating to Rs. 8,617 lakhs of RCPPL, based on fair valuation performed by an independent valuer, for assets existing as on the appointed date. The net assets taken over as of April 1, 2012 include:

The Scheme is effective on May 16, 2014 with an appointed date of April 1, 2012. As the financial statements for previous year ended March 31, 2013 have been already approved by the shareholders of the Company, the previous year balances have not been restated and all the relevant accounting entries with respect to the Scheme have been accounted for on April 1, 2013 and consequently, the surplus in the Statement of profit and Loss as on March 31, 2013 has been transferred to the opening reserve (Refer note 3.2.8) of the Company.

b) The entire issued, subscribed and paid up share capital of the RCPPL held and will be held by the Company after the appointed date shall be cancelled. Accordingly, investments by the Company in RCPPL amounting to Rs.10,261 lakhs have been cancelled.

c) No consideration is payable or receivable on implementation of the Scheme as the Scheme involves a wholly owned subsidiary.

d) The excess of fair valuation of assets over the liabilities after adjusting value of the investments in RCPPL as of April 1, 2012, amounting to Rs. 3 lakhs has been recognised as goodwill.

Further the security charge on the 45 MW wind power project at Vashpet towards borrowing would continue on the Scheme being effective.

10) Employee Stock Option Scheme (ESOS)

Pursuant to the approval accorded by the Shareholders on September 30, 2007 under Section 81(1A) of the Companies Act,1956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,1999 (Guidelines). The Board of Directors of the Company has constituted its ESOS compensation committee to operate and monitor the ESOS scheme which is administered through Reliance Power ESOS Trust ("RPET").

The ESOS compensation committee of the Board of Directors of the Company approved a grant of 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 8, 2010. The options are granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan. In accordance with the scheme, each option entitles the employee to apply for one fully paid equity share of Rs. 10 of the Company at an exercise price of Rs.162 per share. The vesting period of options will commence on expiry of one year from the grant date and all the options granted shall vest immediately. The vested options can be exercised by the eligible employees over a period of nine years from the date of vesting.

The Company has opted for accounting the compensation expenses under ''Intrinsic Value Method''. The closing market price on the date of grant was Rs.140.20 per share at National Stock Exchange (being the latest trading price with highest trading volume). As the exercise price of the share is more than market price, the Company has not accounted for any compensation cost.

The expected volatility was determined based on the volatility of the equity share for the period of one year prior to issue of the option.

The Company had in earlier years given an advance of Rs 14,000 lakhs to RPET for purchase of its shares from the open market, as per the ESOS plan of the Company. RPET had, in turn in earlier years purchased 8,500,000 equity shares of the Company. In accordance with SEBI (ESOS and ESPS) Guidelines, 1999 and as per the recent opinion of the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India ("ICAI"), the Company has consolidated financial statement of RPET with the Company''s financial statement as at March 31, 2014. Accordingly, face value of equity shares (held by RPET) has been deducted from the paid up share capital and balance Rs. 13,082 lakhs (net of bank balance of RPET) has been grouped under the securities premium account, with a corresponding adjustment to "Advance to RPET". Consequently, provision of Rs.3,450 lakhs towards diminution in value of advance, made in earlier years has been reversed during the year.

11) Status of Dadri Project

a) The Company proposed developing a 7,480 MW gas-fi red power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 had acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. While the State was in the process of acquiring further 400 acres of land for the project, a few land owners had filed writ petitions before the Allahabad High Court challenging the acquisition process under the Land Acquisition Act, 1894 ("the Act"). The Allahabad High Court has disposed of the writ petitions upholding the Section 4 notifi cation and directed compliance with certain procedures relating to land acquisition that were left out earlier by the State Government. The Company has filed appeals against the Allahabad High Court order which are now pending before Supreme Court. Few land owners have also filed appeals/petitions before the Supreme Court challenging Allahabad High Court''s order upholding the Section 4 notifi cation and alleging highhanded and forceful actions during the acquisition process, which are pending.

b) The construction and other allied activities at Dadri project will be commenced as soon as the gas supply is fi rmed up and on settlement of land issues. During the year there is no change in the status of project.

12) Project status of Subsidiaries

a) Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been set up to develop an Ultra Mega Power Project (UMPP) of 3,960 MW located in Krishnapatnam, District Nellore, based on imported coal. exercise price of Rs.162 per share. The vesting period of options will commence on expiry of one year from the grant date and all the options granted shall vest immediately. The vested options can be exercised by the eligible employees over a period of nine years from the date of vesting.

The Company has opted for accounting the compensation expenses under ''Intrinsic Value Method''. The closing market price on the date of grant was Rs.140.20 per share at National Stock Exchange (being the latest trading price with highest trading volume). As the exercise price of the share is more than market price, the Company has not accounted for any compensation cost.

The expected volatility was determined based on the volatility of the equity share for the period of one year prior to issue of the option.

The Company had in earlier years given an advance of Rs 14,000 lakhs to RPET for purchase of its shares from the open market, as per the ESOS plan of the Company. RPET had, in turn in earlier years purchased 8,500,000 equity shares of the Company. In accordance with SEBI (ESOS and ESPS) Guidelines, 1999 and as per the recent opinion of the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India ("ICAI"), the Company has consolidated financial statement of RPET with the Company''s financial statement as at March 31, 2014. Accordingly, face value of equity shares (held by RPET) has been deducted from the paid up share capital and balance Rs. 13,082 lakhs (net of bank balance of RPET) has been grouped under the securities premium account, with a corresponding adjustment to "Advance to RPET". Consequently, provision of Rs.3,450 lakhs towards diminution in value of advance, made in earlier years has been reversed during the year.

11) Status of Dadri Project

a) The Company proposed developing a 7,480 MW gas-fi red power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 had acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. While the State was in the process of acquiring further 400 acres of land for the project, a few land owners had filed writ petitions before the Allahabad High Court challenging the acquisition process under the Land Acquisition Act, 1894 ("the Act"). The Allahabad High Court has disposed of the writ petitions upholding the Section 4 notifi cation and directed compliance with certain procedures relating to land acquisition that were left out earlier by the State Government. The Company has filed appeals against the Allahabad High Court order which are now pending before Supreme Court. Few land owners have also filed appeals/petitions before the Supreme Court challenging Allahabad High Court''s order upholding the Section 4 notifi cation and alleging highhanded and forceful actions during the acquisition process, which are pending.

b) The construction and other allied activities at Dadri project will be commenced as soon as the gas supply is fi rmed up and on settlement of land issues. During the year there is no change in the status of project.

12) Project status of Subsidiaries

a) Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been set up to develop an Ultra Mega Power Project (UMPP) of 3,960 MW located in Krishnapatnam, District Nellore, based on imported coal.

CAPL had entered into a fi rm price fuel supply agreement with Reliance Coal Resources Private Limited (RCRPL), a wholly owned subsidiary of the Company. In view of below mentioned new regulation, RCRPL cannot supply coal at the already agreed price, because of which an element of uncertainty has arisen in the fuel supply for the CAPL project, whereas the power needs to be supplied at a pre-agreed tariff as per the terms of Power Purchase Agreement (PPA) dated March 23, 2007. The Government of Indonesia introduced a new regulation in September 2010 which prohibits sale of coal, including sale to affi liate companies, at below Benchmark Price which is linked to international coal prices and requires adjustment of sale price every 12 months. This regulation also mandates to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September 2011. The said issue has been communicated to the power procurers and also to the Government of India through the Association of Power Producers to arrive at a suitable solution to the satisfaction of all the stakeholders.

Since no resolution could be arrived at CAPL invoked the dispute resolution provision of PPA. The procurers have also issued a notice for termination of PPA and have raised a demand for liquidated damages of Rs.40,000 Lakhs (including bank guarantee of Rs. 30,000 Lakhs, which has been issued by the holding company on behalf of CAPL).

CAPL has filed a petition before the Hon''ble High Court at Delhi inter alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The Court vide its order dated March 20, 2012 has prohibited the Procurers from taking any coercive steps against the Company. The single judge of the Delhi High Court vide order dated July 2, 2012 dismissed the petition and the appeal filed by CAPL against the said order is pending before the Division Bench of the Delhi High Court. The interim protection against encashing bank guarantees continues to be available.

CAPL has also filed a petition before the Central Electricity Regulatory Commission without prejudice to the proceedings pending before the Delhi High Court and the arbitration process already initiated. The Commission adjourned the Petition sine a die with permission to mention the matter after disposal of the appeal pending before the Division Bench of the Delhi High Court.

Based on the legal opinion obtained with regard to applicability of force majeure clause for the change in law in Indonesia and other impacts thereof on the implementation of the project and considering the nature of expenditure incurred till date at the project and its valuation done by the management of CAPL, no provision for diminution is considered in respect of investment made by the Company and demands raised by the procurers of power.

b) Samalkot Power Limited (SMPL)

SMPL, a wholly owned subsidiary, is in the process of constructing a 2,262 MW (754 MW x 3) gas based power plant at Kakinada, which based on the current circumstances, has planned its construction work and consequential commercial operations thereafter progressively starting from 2015 - 2016, and it has incurred an aggregated cost of Rs 823,353 lakhs as at March 31, 2014. SMPL has applied for allocation of gas and Ministry of Petroleum and Gas (MoPNG) is yet to allocate the gas linkage. Considering that the gas availability in the country has dropped significantly and also based on gas availability projected scenarios in subsequent years, SMPL is actively pursuing / making representations with various government authorities to secure the gas linkage / supply and is evaluating alternative arrangements / various approaches to deal with the situation. Based on the business plans and valuation assessment done by the management of SMPL, it is confi dent that the carrying value of the net assets of SMPL is appropriate and consequently, there is no diminution in the value of investment made by the Company.

13) Disclosure under Accounting Standard 15 (revised 2005) "Employee Benefits" (AS-15)

The Company has classifi ed various employee benefits as under:

defined contribution plans

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. 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 in the Statement of profit and Loss for the year:

defined benefit plans

(a) Gratuity

(b) Leave encashment

Leave encashment is payable to eligible employees who have earned leave, during the employment and/or on separation as per the Company''s policy.

Valuations in respect of gratuity and leave encashment have been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions:

The estimate of rate of escalation in salary considered in actuarial valuation, takes into account infl ation, seniority, promotion and other relevant factors including supply and demand in the employment market.

14) Segment reporting:

The Company operates in two business segments i.e. Power generation and Associated business activities (termed as "Others"). Associated business activities include project management, supervision and support services for generation and allied processes. Business segments have been identifi ed as reportable primary segment in accordance with Accounting Standard 17 ''Segment Reporting'' as prescribed under Companies (Accounting Standards) Rules, 2006, taking into account the organisational and internal reporting structure as well as evaluation of risk and return for these segments. Segment reporting policies are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identifi ed to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included as "un-allocable".

Geographical Segments: The Company''s operations are mainly confi ned within India and as such there are no reportable geographical segments.

15) Related party transactions:

As per accounting standard-18 ''Related Party Disclosures'' as prescribed under Companies (Accounting Standards) Rules, 2006, the Company''s related parties and transactions are disclosed below:

A. Parties where control exists:

Subsidiaries: (Direct and step-down subsidiaries)

1. Sasan Power Limited (SPL)

2. Rosa Power Supply Company Limited (RPSCL)

3. Maharashtra Energy Generation Limited (MEGL)

4. Vidarbha Industries Power Limited (VIPL)

5. Tato Hydro Power Private Limited (THPPL)

6. Siyom Hydro Power Private Limited (SHPPL)

7. Chitrangi Power Private Limited (CPPL)

8. Urthing Sobla Hydro Power Private Limited (USHPPL)

9. Kalai Power Private Limited (KPPL)

10. Coastal Andhra Power Limited (CAPL)

11. Reliance Coal Resources Private Limited (RCRPL)

12. Erstwhile Maharashtra Energy Generation Infrastructure Limited (Erstwhile MEGIL)

13. Amulin Hydro Power Private Limited (AHPPL)

14. Emini Hydro Power Private Limited (EHPPL)

15. Mihundon Hydro Power Private Limited (MHPPL)

16. Jharkhand Integrated Power Limited (JIPL)

17. Reliance CleanGen Limited (RCGL)

18. Rajasthan Sun Technique Energy Private Limited (RSTEPL)

19. Erstwhile Reliance Clean Energy Private Limited (Erstwhile RCEPL) (Refer note 7)

20. Dhursar Solar Power Private Limited (formerly known as Dahanu Solar Power Private Limited) (DSPPL)

21. Moher Power Limited (formerly known as Bharuch Power Limited) (MPL)

22. Samalkot Power Limited (SMPL)

23. Reliance Prima Limited (RPrima)

24. Atos Trading Private Limited (ATPL)

25. Atos Mercantile Private Limited (AMPL)

26. Coastal Andhra Power Infrastructure Limited (CAPIL)

27. Reliance Power Netherlands BV (RPN)

28. PT Heramba Coal Resources (PTH)

29. PT Avaneesh Coal Resources (PTA)

30. Reliance Natural Resources Limited (RNRL)

31. Erstwhile Reliance Fuel Resources Limited (Erstwhile RFRL)

32. Reliance Natural Resources (Singapore) Pte Limited (RNRL- Singapore)

33. Reliance Solar Resources Power Private Limited (RSRPPL)

34. Erstwhile Reliance Clean Power Private Limited (RCPPL) (Refer note 9)

35. Reliance Wind Power Private Limited (RWPPL)

36. Reliance Green Power Private Limited (RGPPL)

37. PT Sumukha Coal Services (PTS)

38. PT Brayan Bintang Tiga Energi (BBE)

39. PT Sriwijiya Bintang Tiga Energi (SBE)

40. Shangling Hydro Power Private Limited (SPPL)

41. Sumte Kothang Hydro Power Private Limited (SKPL)

42. Teling Hydro Power Private Limited (TPPL)

43. Lara Sumta Hydro Power Private Limited (LHPPL)

44. Purthi Hydro Power Private Limited (PHPPL)

B. (I). Investing parties/promoters having signifi cant infl uence on the Company directly or indirectly Companies

Reliance Infrastructure Limited (R Infra)

AAA Project Ventures Private Limited (APVPL) (upto December 19, 2012)

Individual

Shri Anil D Ambani

(II). Other related parties with whom transactions have taken place during the year:

(i) Key Management Personnel:

1. Shri J P Chalasani (Chief Executive Officer) (upto October 31, 2013)

2. Shri Ramaswami Kalidas (Manager)

(ii) Enterprises over which individual described in clause B (I) above have control:

1. Reliance Infocomm Infrastructure Private Limited (RIIPL)

2. Reliance General Insurance Company Limited (RGICL)

3. Reliance Communication Infrastructure Limited (RCIL)

4. Reliance Capital Limited (RCL)

5. Reliance Communication Limited (RCom)

(iii) Other transactions:

a) As per the terms of sponsor support agreement entered for the purpose of security of term loan availed by subsidiaries, the Company is required to pledge following percentage of its shareholding in the respective subsidiaries.

i) 100% of equity shares of Sasan Power Limited. ii) 100% of equity shares of Dhursar Solar Power Private Limited. iii) 100% of equity shares of Rajasthan Sun Technique Energy Private Limited. iv) 100% of preference shares of Sasan Power Limited. v) 100% of preference shares of Dhursar Solar Power Private Limited. vi) 100% of preference shares of Rajasthan Sun Technique Energy Private Limited.

b) The Company has given equity support undertaking/financial support undertaking towards cost overrun to financial institutions/banks for rupee/foreign currency loans taken by Rosa Power Supply Company Limited, Sasan Power Limited, Vidarbha Industries Power Limited, Samalkot Power Limited, Dhursar Solar Power Private Limited and Rajasthan Sun Technique Energy Private Limited.

c) During the year, Reliance Clean Power Private Limited has been amalgamated with the Company, pursuant to the scheme of amalgamation approved by the Hon''ble High Court of Bombay. (Refer note 9 above for transactions pursuant to the scheme).

d) During the year, Company has sold (at estimated fair value) 892,000 7.5% 15 years Non Cumulative Non Convertible Redeemable Preference Shares (NCRPS) issued by one wholly owned subsidiary to another wholly owned subsidiary. The Preference Shares have been sold for Rs. 3,648 Lakhs and the resultant loss of Rs. 4,798 lakhs on sale of Investment has been charged off to the Statement of profit and loss account. This loss has no impact on the consolidated accounts of the Company.

The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

20) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 Disclosure of amounts payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

21) Exchange Difference on Long Term Monetary Items

In respect of exchange difference arising on long term foreign currency monetary items, the Company has availed the option available in the Companies (Accounting Standard) (Second Amendment) Rules, 2011, vide notifi cation dated December 29 2011 issued by Ministry of Corporate Affairs. Accordingly, the Company has accumulated a gain of Rs. 29,409 lakhs (Previous year Rs. 20,999 lakhs) to "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of long term monetary items other than on account of depreciable assets and the Company has adjusted the value of Plant and equipment by Rs. 1,115 lakhs towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets.

22) The management has been legally advised that the Company is considered to be established with the object of providing infrastructural facilities and accordingly, Section 372A of the Companies Act, 1956 is not applicable to the Company.

23) RPSCL, a wholly owned subsidiary, has obtained term loan from bank for investing in infrastructure projects undertaken/to be undertaken by the Company, either directly or through special purpose vehicles. Accordingly, the proceeds of the loan have, at the request of the Company, been invested by RPSCL in equity and preference shares of subsidiaries of the Company. Based on the Memorandum of Understanding, the Company has agreed to reimburse the interest cost amounting to Rs. 5,501 lakhs on the aforesaid term loan.

24) The figures for the previous year are re-classified / re-grouped, wherever considered necessary.

Mar 31, 2013

1) General information

Reliance Power Limited ("the Company") together with its subsidiaries ("Reliance Power group") is primarily engaged in the business of generation of power. The projects under development include coal, gas, hydro, wind and solar based energy projects. The portfolio of the Reliance Power group also includes three ultra mega power projects (UMPP) of 3,960 MW each.

2) Abridged financial statement

The abridged financial statements have been prepared pursuant to Rule 7A of the Companies (Central Government''s) General Rules and Forms, 1956 as per notification F. No. 17/51/2012-CL-V, dated May 31, 2012 and are based on the annual financial statements for the year ended March 31, 2013 approved by the Board of Directors at their meeting held on May 13, 2013.

3) (Note 4 of notes to financial statements)

(a) Contingent liabilities

- Counter guarantees / Bank guarantees issued on behalf of subsidiary companies aggregating to Rs. 240,355 lakhs (Previous year Rs. 251,225 lakhs).

- Refer note 12 with respect to Coastal Andhra Power Limited.

(b) Capital commitments

Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs. 136 lakhs (Previous year Rs. 174 lakhs).

(c) Other commitments

The Company has ongoing commitments given to lenders or procurers of power or other regulatory authorities to extend support and provide equity in respect of various projects undertaken by the respective subsidiaries, wherein the amounts of investment would vary considering the project cost and debt equity ratio agreed with the respective lenders.

4) (Note 8 of notes to financial statements)

General reserve (arisen pursuant to various schemes):

a) The General reserve of Rs. 1 1 1,503 lakhs had arisen pursuant to the composite scheme of arrangement between the Company, Reliance Natural Resources Limited, Erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz. Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited. The said scheme has been sanctioned by Hon''ble High Court of Judicature at Bombay vide order dated October 15, 2010.

b) The General reserve of Rs. 18,707 lakhs had arisen pursuant to the scheme of amalgamation with Erstwhile Sasan Power Infraventure Private Limited, sanctioned by the Hon''ble High Court of Bombay vide order dated April 29, 201 1. The scheme was effective from January 1, 2011.

c) The General reserve of Rs. 22,984 lakhs had arisen pursuant to the scheme of amalgamation with Erstwhile Sasan Power Infrastructure Limited, sanctioned by the Hon''ble High Court of Bombay, vide order dated December 23, 201 1. The scheme was effective from September 1, 2011

All the above General Reserves are reserves which arose pursuant to the above schemes and shall not be and shall not for any purpose be considered to be a reserve created by the Company

5) (Note 9 of notes to financial statements)

Scheme of amalgamation between Company and Reliance Clean Energy Private Limited

Reliance Clean Energy Private Limited (RCEPL), a wholly owned subsidiary of the company, incorporated with the main object to operate, install, develop, promote and maintain projects in infrastructure sectors including setting up power plants etc., was amalgamated into the Company pursuant to the Scheme of Amalgamation (Scheme), as on and from January 1, 2013, being the appointed date pursuant to the approval of Board of Directors of the Company and sanctioned by the Hon''ble High Court of Judicature at Bombay vide its order dated April 5, 2013 which was filed with the Registrar of Companies on April 20, 2013.

The Company has carried out the accounting treatment prescribed in the Scheme as approved by the Hon''ble High Court of Judicature at Bombay. The required disclosures for accounting of Schemes as per the "Pooling of Interest Method" as given under Accounting Standard 14 (AS 14) ''Accounting for Amalgamations'' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided.

Hence, in accordance with the Scheme:

a) The Company has taken over all the assets aggregating to Rs. 60,000 lakhs and liabilities aggregating to Rs. 5 lakhs at their respective book values. The difference aggregating to Rs. 59,995 lakhs being the excess arising on transfer of assets and liabilities has been treated as capital reserve (arising pursuant to the Scheme).

b) No consideration is payable or receivable on implementation of the Scheme as the Scheme involves a wholly owned subsidiary

c) As a consequence of and as per the Scheme the investment of Rs. 60,001 lakhs of the Company in 6,010,000 equity shares of RCEPL has been cancelled and in accordance with the Scheme the consequential write off has been made in the Statement of Profit and Loss. As permitted by the Scheme a corresponding amount of Rs. 60,001 lakhs has been withdrawn from the general reserve so that there is no impact on the profit for the year.

Had the Scheme not prescribed the above accounting treatments and the Company followed the accounting treatment prescribed under AS 14, there would have not been any capital reserve (arisen pursuant to the scheme) and general reserve would have been higher by Rs. 59,995 lakhs.

6) (Note 10 of notes to financial statements)

Employee Stock Option Scheme (ESOS)

Pursuant to the approval accorded by the Shareholders on September 30, 2007 under Section 81(1A) of the Companies Act,1 956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,1999 (Guidelines). The Board of Directors of the Company has constituted its ESOS compensation committee to operate and monitor the ESOS scheme which is administered through ESOS Trust.

The ESOS compensation committee of the Board of Directors of the Company approved a grant of 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 8, 2010. The options are granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan. In accordance with the scheme, each option entitles the employee to apply for one fully paid equity share of Rs. 10 of the Company at an exercise price of Rs. 162 per share. The vesting period of options will commence on expiry of one year from the grant date and all the options granted shall vest immediately. The vested options can be exercised by the eligible employees over a period of nine years from the date of vesting.

The Company has opted for accounting the Compensation expenses under ''Intrinsic Value Method''. The closing market price on the date of grant was Rs. 140.20 per share at National Stock Exchange (being the latest trading price with highest trading volume). As the exercise price of the share is more than market price, the Company has not accounted for any compensation cost. The Company has advanced Rs. 14,000 lakhs (disclosed under Note 3.10 Long term loans and advances) to the ESOS trust for purchase of equity shares from the market. The ESOS trust has purchased 8,500,000 shares from the given advance.

7) (Note 11 of notes to financial statements)

Status of Dadri Project:

a) The Company proposed developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 had acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. While the State was in the process of acquiring further 400 acres of land for the project, a few land owners had filed writ petitions before the Allahabad High Court challenging the acquisition process under the Land Acquisition Act, 1894 ("the Act"). The Allahabad High Court has disposed of the writ petitions upholding the Section 4 notification and directed compliance with certain procedures relating to land acquisition that were left out earlier by the State Government. The Company has filed an appeal against the Allahabad High Court order which is now pending before Supreme Court. Few land owners have also filed appeals/petitions before the Supreme Court challenging Allahabad High Court''s order upholding the Section 4 notification and alleging highhanded and forceful actions during the acquisition process, which are pending.

b) The construction and other allied activities at Dadri project will be commenced as soon as the gas supply is firmed up and on settlement of land issues. Considering the delay in the project execution, due to litigation as stated above, the Company as a matter of prudence, has written off the Asset under construction amounting to Rs. 901 lakhs (Previous year: Incidental expenditure of Rs. 2,778 Lakhs) in the Statement of Profit and Loss.

8) (Note 12 of notes to financial statements)

Project status of Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been set up to develop an Ultra Mega Power Project (UMPP) of 3,960 MW located in Krishnapatnam, District Nellore, based on imported coal sourced from Indonesia.

The Government of Indonesia introduced a new regulation in September 2010 which prohibits sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and requires adjustment of sale price every 12 months. This regulation also mandates to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September 2011. CAPL had entered into a firm price fuel supply agreement with Reliance Coal Resources Private Limited (RCRPL), a wholly owned subsidiary of the Company. In view of this new regulation, RCRPL cannot supply coal at the already agreed price, because of which an element of uncertainty has arisen in the fuel supply for the CAPL project, wherein the power needs to be supplied at a pre-agreed tariff as per the terms of Power Purchase Agreement (PPA) dated March 23, 2007. The said issue has been communicated to the power procurers and also to the Government of India through the Association of Power Producers to arrive at a suitable solution to the satisfaction of all the stakeholders.

CAPL has issued a dispute resolution notice to the procurers of power under the force majeure clause of the PPA, considering the change in Indonesian regulations as an event of force majeure. The procurers have also issued a notice for termination of PPA and have raised a demand for liquidated damages of Rs.40,000 Lakhs (including bank guarantee of Rs. 30,000 Lakhs, which has been issued by the holding company on behalf of CAPL).

CAPL has filed a petition before the Hon''ble High Court at Delhi inter alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1 996. The Court vide its order dated March 20, 2012 has prohibited the Procurers from taking any coercive steps against the Company. The single judge of the Delhi High Court vide order dated July 2, 2012 dismissed the petition and the appeal filed by CAPL against the said order is pending before the Division Bench of the Delhi High Court and stands included in the regular hearing list. The interim protection against encashing bank guarantees continues to be available.

CAPL has filed a petition before the Central Electricity Regulatory Commission without prejudice to the proceedings pending before the Delhi High Court and the arbitration process already initiated. Hearing on admissibility of the petition before the Central Electricity Regulatory Commission was held in the month of March 2013 and the outcome is awaited

Based on the legal opinion obtained with regard to applicability of force majeure clause for the change in law in Indonesia and other impacts thereof on the implementation of the project and considering the nature of expenditure incurred till date at the project, no provision for impairment is considered in respect of investment made by the Company and demands raised by the procurers of power,

9) (Note 13 of notes to financial statements)

Disclosure under Accounting Standard 15 (revised 2005) "Employee Benefits" (AS-15)

The Company has classified various employee benefits as under:

Defined contribution plans

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

10) (Note 14 of notes to financial statements)

Segment reporting:

The Company operates in two business segments i.e. Power generation and Associated business activities (termed as "Others"). Associated business activities include project management, supervision and support services for generation and allied processes. Business segments have been identified as reportable primary segment in accordance with Accounting Standard 17 ''Segment Reporting'' as prescribed under Companies (Accounting Standards) Rules, 2006, taking into account the organisational and internal reporting structure as well as evaluation of risk and return for these segments. Segment reporting policies are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included as "unallocable".

Geographical Segments: The Company''s operations are mainly confined within India and as such there are no reportable geographical segments.

11) (Note 15 of notes to financial statements)

Related party transactions:

As per accounting standard-18 ''Related Party Disclosures'' as prescribed under Companies (Accounting Standards) Rules, 2006, the Company''s related parties and transactions are disclosed below:

A. Parties where control exists:

Subsidiaries: (Direct and step-down subsidiaries)

1. Sasan Power Limited (SPL)

2. Rosa Power Supply Company Limited (RPSCL)

3. Maharashtra Energy Generation Limited (MEGL)

4. Vidarbha Industries Power Limited (VIPL)

5. Tato Hydro Power Private Limited (THPPL)

6. Siyom Hydro Power Private Limited (SHPPL)

7. Chitrangi Power Private Limited (CPPL)

8. Urthing Sobla Hydro Power Private Limited (USHPPL)

9. Kalai Power Private Limited (KPPL)

10. Coastal Andhra Power Limited (CAPL)

11. Reliance Coal Resources Private Limited (RCRPL)

12. Erstwhile Sasan Power Infrastructure Limited (Erstwhile SPIL)

13. Erstwhile Maharashtra Energy Generation Infrastructure Limited (Erstwhile MEGIL) (Refer Note 15 (C) (iii) (c))

14. Amulin Hydro Power Private Limited (AHPPL)

15. Emini Hydro Power Private Limited (EHPPL)

16. Mihundon Hydro Power Private Limited (MHPPL)

17. Jharkhand Integrated Power Limited (JIPL)

18. Reliance CleanGen Limited (RCGL)

19. Rajasthan Sun Technique Energy Private Limited (RSTEPL)

20. Erstwhile Reliance Clean Energy Private Limited (Erstwhile RCEPL) (Refer note 9)

21. Dahanu Solar Power Private Limited (DSPPL)

22. Solar Generation Company (Rajasthan) Private Limited (SGCPL) (upto 03.03.2012)

23. Bharuch Power Limited (BPL)

24. Samalkot Power Limited (SMPL)

25. Reliance Prima Limited (RPrima)

26. Atos Trading Private Limited (ATPL)

27. Atos Mercantile Private Limited (AMPL)

28. Coastal Andhra Power Infrastructure Limited (CAPIL)

29. Reliance Power Netherlands BV (RPN)

30. PT Heramba Coal Resources (PTH)

31. PT Avaneesh Coal Resources (PTA)

32. Reliance Natural Resources Limited (RNRL)

33. Erstwhile Reliance Fuel Resources Limited ( Erstwhile RFRL) (Refer Note 15 (C) (iii) (c))

34. Reliance Natural Resources (Singapore) Pte Limited (RNRL- Singapore)

35. Reliance Renewable Power Private Limited (RRPPL) (upto 03.03.2012)

36. Reliance Biomass Power Private Limited (RBPPL) (upto 03.03.201 2)

37. Reliance Solar Resources Power Private Limited (RSRPPL)

38. Reliance Clean Power Private Limited (RCPPL)

39. Reliance Tidal Power Private Limited (RTPPL) (upto 03.03.2012)

40. Reliance Geothermal Power Private Limited (RGTPPL) (upto 03.03.2012)

41. Reliance Wind Power Private Limited (RWPPL)

42. Reliance Green Power Private Limited (RGPPL) (upto 03.03.2012 and w.e.f. 1 1.08.201 2)

43. PT Sumukha Coal Services (PTS)

44. PT Brayan Bintang Tiga Energi (BBE)

45. PT Sriwijiya Bintang Tiga Energi (SBE)

46. Shangling Hydro Power Private Limited (SPPL)

47. Sumte Kothang Hydro Power Private Limited (SKPL)

48. Teling Hydro Power Private Limited (TPPL)

49. Lara Sumta Hydro Power Private Limited (LHPPL)

50. Purthi Hydro Power Private Limited (PHPPL)

B (I). Investing parties/promoters having significant influence on the Company directly or indirectly Companies

Reliance Infrastructure Limited (R Infra)

AAA Project Ventures Private Limited (APVPL) (upto December 19, 2012)

Individual

Shri Anil D Ambani

(II). Other related parties with whom transactions have taken place during the year:

(i) Key Management Personnel:

1. Shri J P Chalasani (Chief Executive Officer)

2. Shri Ramaswami Kalidas (Manager) (w.e.f. May 27, 201 1)

3. Shri Paresh Rathod (upto May 27, 201 1)

(ii) Enterprises over which individual described in clause B (I) above have control:

1. Reliance Infocomm Infrastructure Private Limited (RIIPL)

2. Reliance General Insurance Company Limited (RGICL)

3. Reliance Communication Infrastructure Limited (RCIL)

4. Reliance Capital Limited (RCL)

5. Reliance Communication Limited (RCom)

(iii) Others

BSES Kerala Power Limited (BKPL), subsidiary of R Infra.

12) (Note 21 of notes to financial statements)

Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company

13) (Note 22 of notes to financial statements)

Exchange Difference on Long Term Monetary Items

In respect of exchange difference arising on long term foreign currency monetary items, the Company has availed the option available in the Companies (Accounting Standard) (Second Amendment) Rules, 2011, vide notification dated December 29, 2011 issued by Ministry of Corporate Affairs. Accordingly, the Company has accumulated a gain of Rs. 20,999 lakhs (Previous year Rs. 16,050 lakhs) to "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of long term monetary items other than on account of depreciable assets.

14) (Note 23 of notes to financial statements)

During the year, based on the request placed by the Company, investments in 7.5% Non convertible non cumulative redeemable preference shares of Coastal Andhra Power Limited ("CAPL") (a wholly owned subsidiary) has been early redeemed as per approval of Board of Directors of the CAPL in the meeting held on December 24, 2012. The said shares were redeemed at a premium of Rs. 990 per share and profit on redemption of shares has been disclosed as an exceptional item in the Statement of Profit and loss.

15) (Note 24 of notes to financial statements)

The management has been legally advised that the Company is considered to be established with the object of providing infrastructural facilities and accordingly, Section 372A of the Companies Act, 1956 is not applicable to the Company

16) (Note 25 of notes to financial statements)

Previous year figures have been regrouped/recasted wherever considered necessary to make it comparable to current year presentation.

Mar 31, 2012

1) General information

Reliance Power Limited ("the Company") together with its subsidiaries ("Reliance Power group") is primarily engaged in the business of generation of power. The projects under development include coal, gas, hydro, wind and solar based energy projects. The portfolio of Reliance Power group also includes three ultra mega power projects (UMPP) of 3,960 MW each.

2) Abridged financial statement

The abridged financial statements have been prepared pursuant to Rule 7A of the Companies (Central Government's) General Rules and Forms, 1956 as per notification F. No. 17/51 /2012-CL-V, dated May 31, 2012 and are based on the annual financial statements for the year ended March 31, 2012 approved by the Board of Directors at their meeting held on May 24, 2012.

3) (Note 4 of notes to financial statements)

(a) Contingent liabilities

- Counter guarantees / Bank guarantees issued on behalf of subsidiary companies aggregating to Rs. 243,839 lakhs (Previous Year Rs. 264,675 lakhs).

- Refer note 15 with respect to Coastal Andhra Power Limited.

(b) Capital commitments

Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs. 174 lakhs (Previous Year Rs. 290 lakhs).

(c) Other commitments:

The Company has ongoing commitments given to lenders or procurers of power or other regulatory authorities to extend support and provide equity in respect of various projects undertaken by the respective subsidiaries, wherein the amounts of investment would vary considering the project cost and debt equity ratio agreed with the respective lenders.

4) (Note 8 of notes to financial statements)

General reserve (arisen pursuant to various schemes)

a) The General Reserve of Rs. 111,503 lakhs had arisen pursuant to the composite scheme of arrangement between the Company, Reliance Natural Resources Limited, erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz. Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited. The said scheme has been sanctioned by Hon'ble High Court of Judicature at Bombay vide order dated October 15, 2010.

b) The General Reserve of Rs. 18,707 lakhs had arisen pursuant to the scheme of amalgamation with erstwhile Sasan Power Infraventure Private Limited, sanctioned by the Hon'ble High Court of Bombay vide order dated April 29, 2011. The scheme was effective from January 01, 2011.

c) The General Reserve of Rs. 22,984 lakhs has arisen pursuant to the scheme of amalgamation (Refer note 11) with Sasan Power Infrastructure Limited, sanctioned by the Hon'ble High Court of Bombay, vide order dated December 23, 2011. The scheme was effective from September 01, 2011.

All the above General Reserves are reserves which arose pursuant to the above Schemes and shall not be and shall not for any purpose be considered to be a reserve created by the Company.

5) (Note 9 of notes to financial statements)

4.928% Convertible Bonds (FCCBs)

Reliance Natural Resources Limited (RNRL) had issued FCCBs of USD 300,000,000 vide letter of offer dated October 12, 2006. The FCCBs were transferred to the Company in terms of Composite Scheme of Arrangement sanctioned by the High Court of Bombay on October 15, 2010. FCCBs were secured by the issuance of an irrevocable letter of credit to the trustee on behalf of the FCCB holders by Barclays Bank Plc. FCCBs were due for redemption on October 17, 2011. FCCB holders were eligible for conversion of FCCB to equity share at Rs. 104 per share for every fully paid equity share of Rs. 10 each to be issued by the Company on exercise of the option. During the year till the due date of redemption, no FCCBs were converted into equity shares and the Company has redeemed the outstanding FCCBs by fully repaying the FCCB holders.

6) (Note 10 of notes to financial statements)

Accounting under composite scheme of arrangement

In the previous year, the Composite Scheme of Arrangement ('Scheme') under Section 391 to 394 of the Act read with Sections 78, 100 to 103 of the Act between the Company, Reliance Natural Resources Limited, erstwhile Reliance Futura Limited and four wholly owned subsidiaries viz. Atos Trading Private Limited, Atos Mercantile Private Limited, Reliance Prima Limited and Coastal Andhra Power Infrastructure Limited, was sanctioned by Hon'ble High Court of Judicature at Bombay vide order dated October 15, 2010.

As per the terms defined in the Scheme, General reserve of the Company is a free reserve available for all purposes as the Board of directors may determine from time to time, including but not limited to meeting any loss incurred due to variation in exchange rates which are beyond the control of the Company. The Scheme also specifies that any use of General reserve shall be reflected in Statement of Profit and Loss against the item for which General Reserve is used.

The Company, based on a legal opinion and as per the approval of board of directors has offset the loss amounting to Rs. 13,588 lakhs incurred due to exchange variation on settlement of FCCBs, by withdrawing an equivalent amount from General Reserve. The Management has been legally advised that the disclosure of said accounting in the Statement of Profit and Loss is in compliance with revised Schedule VI of the Companies Act, 1956.

Had the Scheme not prescribed the utilization of General Reserve by an equivalent amount of credit to Statement of Profit and Loss towards the exchange loss, the profit before tax of the Company would have been lower by Rs.13,588 lakhs and the General Reserve would have been higher to that extent.

7) (Note 11 of notes to financial statements)

Scheme of amalgamation between Company and Sasan Power Infrastructure Limited

Sasan Power Infrastructure Limited (SPIL), a wholly owned subsidiary of the Company, incorporated with the main object to operate, install, develop, promote and maintain projects in infrastructure sectors including setting up power plants etc., was amalgamated into the Company pursuant to the Scheme of Amalgamation (Scheme), as on and from September 1, 2011, being the appointed date pursuant to the approval of Board of Directors of the Company and sanctioned by the Hon'ble High Court of Judicature at Bombay vide its order dated December 23, 2011 which was filed with the Registrar of Companies on February 23, 2012.

The Company has carried out the accounting treatment prescribed in the Scheme as approved by the Hon'ble High Court of Judicature at Bombay. The required disclosures as per paragraph 42 of Accounting Standard 14 (AS 14) 'Accounting for Amalgamations' as prescribed under the Companies (Accounting Standards) Rules, 2006 have been provided. Further, the Company has also been legally advised that the accounting treatment including disclosure under Revised Schedule VI carried out is in line with the Scheme approved by the Hon'ble Court of Judicature at Bombay and is not in violation of any applicable rules and regulations.

Hence, in accordance with the Scheme:

a) The Company has taken over all the assets aggregating to Rs. 28,006 lakhs and liabilities aggregating to Rs. 5,022 lakhs at their respective book values. The difference aggregating to Rs. 22,984 lakhs being the excess arising on transfer of assets and liabilities has been treated as General Reserve (arising pursuant to the Scheme).

b) No consideration is payable or receivable on implementation of the Scheme as the Scheme involves a wholly owned subsidiary. The entire issued, subscribed and paid up capital of the subsidiary has been cancelled and no shares have been allotted or exchanged in lieu of the same.

c) Investments in equity share capital of SPIL amounting to Rs. 20,005 lakhs has been written off in the Statement of Profit and Loss and an equivalent amount has been withdrawn from General Reserve vide board approval dated May 24, 2012, to off-set the said write off and the same has been credited to Statement of Profit and Loss.

Had the Scheme not prescribed the above accounting treatments, the treatment in accordance with AS 14 under purchase method would have been Rs. 22,984 lakhs, being the excess arising on transfer of assets and liabilities treated as General Reserve (arising pursuant to the Scheme), would have been treated as Capital Reserve. Also, Rs. 20,005 lakhs being the investment of the Company (share capital plus securities premium) in SPIL debited to Statement of Profit and Loss, would have been debited to Capital Reserve, and Rs. 20,005 lakhs withdrawn from General Reserve would not have been withdrawn.

The above accounting treatment as per the Scheme does not have a material impact on the Profit for the year and on the net worth of the Company.

8) (Note 12 of notes to financial statements)

Change in accounting policy (Income on fixed maturity plan of mutual fund)

During the year, based on legal opinion, the Company has changed its accounting policy for income on fixed maturity plans of mutual funds, from recognising it at the time of maturity to recognising it on an accrual basis based on the net asset value as on the reporting date considering the principles of reasonable certainty. Had the Company followed the earlier accounting policy, Profit before tax would have been lower by Rs. 1,988 lakhs.

9) (Note 13 of notes to financial statements)

Employees Stock Option Scheme (ESOS):

Pursuant to the approval accorded by the Shareholders on September 30, 2007 under Section 81(1A) of the Companies Act,1956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,1 999 (Guidelines). The Board of Directors of the Company has constituted its ESOS compensation committee to operate and monitor the ESOS scheme which is administered through ESOS Trust.

The ESOS compensation committee of the Board of Directors of the Company approved a grant of 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 8, 2010. The options are granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan. In accordance with the scheme, each option entitles the employee to apply for one fully paid equity share of Rs. 10 of the Company at an exercise price of Rs. 162 per share. The vesting period of options will commence on expiry of one year from the grant date and all the options granted shall vest immediately. The vested options can be exercised by the eligible employees over a period of nine years from the date of vesting.

The Company has opted for accounting the Compensation expenses under 'Intrinsic Value Method'. The closing market price on the date of grant was Rs. 140.20 per share at National Stock Exchange (being the latest trading price with highest trading volume). As the exercise price of the share is more than market price, the Company has not accounted for any compensation cost. The Company has advanced Rs. 14,000 lakhs (disclosed under Note 3.11 Long term loans and advances) to the ESOS trust for purchase of equity shares from the market. The ESOS trust has purchased 8,500,000 shares from the given advance.

Had the Company opted for accounting of Compensation cost under 'Fair value Method', Profit after tax would have been lower by Rs. 434 lakhs (Previous year: Rs. 3,851 lakhs) and Earnings per share (Basic and diluted) would have been Rs.1.09 (Previous year: Rs. 0.91)

10) (Note 14 of notes to financial statements)

Project Status of Dadri Project:

a) The Company is developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 had acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. While the State was in the process of acquiring further 400 acres of land for the project, a few land owners had filed writ petitions before the Allahabad High Court challenging the acquisition process under the Land Acquisition Act, 1894 ("the Act"). The Allahabad High Court has disposed of the writ petitions upholding the Section 4 notification and directed compliance with certain procedures relating to land acquisition that were left out earlier by the State Government. The Company has filed an appeal against the Allahabad High Court order which is now pending before Supreme Court. Few land owners have also filed appeals/petitions before the Supreme Court challenging Allahabad High Court's order upholding the Section 4 notification and alleging highhanded and forceful actions during the acquisition process, which are pending.

b) The construction and other allied activities at Dadri project will be commenced as soon as the gas supply is firmed up and on settlement of land issues. Considering the delay in the project execution, due to litigation as stated above, the Company as a matter of prudence, has written off the incidental expenditure amounting to Rs. 2,778 lakhs in the Statement of Profit and loss.

11) (Note 15 of notes to financial statements)

Project status of Coastal Andhra Power Limited (CAPL)

CAPL, a wholly owned subsidiary, has been set up to develop an Ultra Mega Power Project (UMPP) of 3,960 MW located in Krishnapatnam, District Nellore, based on imported coal sourced from Indonesia.

The Government of Indonesia introduced a new regulation in September 2010 which prohibits sale of coal, including sale to affiliate companies, at below Benchmark Price which is linked to international coal prices and requires adjustment of sale price every 12 months. This regulation also mandates to align all existing long-term coal supply contracts with the new regulations within one year i.e. by September 2011.CAPL had entered into a firm price fuel supply agreement with Reliance Coal Resources

Private Limited (RCRPL), a wholly owned subsidiary of the Company. In view of this new regulation, RCRPL now needs to supply coal at the market price, because of which an element of uncertainty has arisen in the fuel supply for the CAPL project, wherein the power needs to be supplied at a pre-agreed tariff as per the terms of Power Purchase Agreement (PPA) dated March 23, 2007. The said issue has been communicated to the power procurers and also to the Government of India through the Association of Power Producers to arrive at a suitable solution to the satisfaction of all the stakeholders.

Notwithstanding the above, considering the terms of PPA, CAPL has issued a dispute resolution notice to the procurers of power under the force majeure clause of the PPA, considering the change in Indonesian regulations as an event of force majeure. The procurers of power under the terms of PPA have also issued a notice for termination of PPA and have raised a demand for liquidated damages of Rs.40,000 lakhs (including bank guarantee of Rs. 30,000 lakhs), which has been disclosed under contingent liability.

CAPL has filed a petition before the Hon'ble High Court at Delhi inter alia for interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The Court vide its order dated March 20, 201 2 has granted such relief and prohibited the Procurers from taking any coercive steps against CAPL.

Based on the legal opinion obtained with regard to applicability of force majeure clause for the change in law in Indonesia and considering the nature of expenditure incurred till date at the project, no provision for impairment is considered in respect of investment made by the Company and for demands raised by the procurers of power.

12) (Note 16 of notes to financial statements)

Disclosure under Accounting Standard 15 (revised 2005) "Employee Benefits" (AS-15)

The Company has classified various employee benefits as under:

Defined contribution plans

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

Leave encashment is payable to eligible employees who have earned leave, during the employment and/or on separation as per the Company's policy.

* Grouped under Note no 3.15 under Advance recoverable in cash or in kind.

# Grouped under Note no 3.4 and 3.8 under Provision for Leave Encashment.

The Company has seconded certain employees to the subsidiaries during the year. As per the terms of the secondment, liability towards Salaries, Provident fund and leave encashment will be provided and paid by the respective subsidiaries and gratuity will be paid/ provided by the Company.

13) (Note 17 of notes to financial statements)

Segment Reporting:

The Company operates in two business segments i.e. Power generation and Associated business activities (termed as "Others"). Associated business activities include project management, supervision and support services for generation and allied processes. Business segments have been identified as reportable primary segment in accordance with Accounting Standard 17 'Segment Reporting' as prescribed under Companies (Accounting Standards) Rules, 2006, taking into account the organisational and internal reporting structure as well as evaluation of risk and return for these segments. Segment reporting policies are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included as "un-allocable".

Geographical Segments: The Company's operations are mainly confined within India and as such there are no reportable geographical segments.

14) (Note 18 of notes to financial statements)

Related party transactions:

As per accounting standard-18 'Related Party Disclosures' as prescribed under Companies (Accounting Standards) Rules, 2006, the Company's related parties and transactions are disclosed below:

A. Parties where control exists:

Subsidiaries: (Direct and step-down subsidiaries)

1. Sasan Power Limited (SPL)

2. Rosa Power Supply Company Limited (RPSCL)

3. Maharashtra Energy Generation Limited (MEGL)

4. Vidarbha Industries Power Limited (VIPL)

5. Tato Hydro Power Private Limited (THPPL)

6. Siyom Hydro Power Private Limited (SHPPL)

7. Chitrangi Power Private Limited (CPPL)

8. Urthing Sobla Hydro Power Private Limited (USHPPL)

9. Kalai Power Private Limited (KPPL)

10. Coastal Andhra Power Limited (CAPL)

11. Reliance Coal Resources Private Limited (RCRPL)

12. Reliance Power International SARL (RPIS) (upto 30.06.201 1)

13. Erstwhile Sasan Power Infrastructure Limited (SPIL) (Refer note 11)

14. Erstwhile Sasan Power Infraventures Private Limited (Erstwhile SPIPL)

15. Maharashtra Energy Generation Infrastructure Limited (MEGIL)

16. Amulin Hydro Power Private Limited (AHPPL)

17. Emini Hydro Power Private Limited (EHPPL)

18. Mihundon Hydro Power Private Limited (MHPPL)

19. Jharkhand Integrated Power Limited (JIPL)

20. Reliance CleanGen Limited (Formerly Reliance Patalganga Power Limited) (RCGL)

21. Rajasthan Sun Technique Energy Private Limited (RSTEPL)

22. Erstwhile Reliance Futura Limited (Erstwhile RFL)

23. Dahanu Solar Power Private Limited (DSPPL)

24. Solar Generation Company (Rajasthan) Private Limited (SGCPL) (upto 03.03.201 2)

25. Bharuch Power Limited (BPL)

26. Samalkot Power Limited (SMPL)

27. Reliance Prima Limited (RPrima)

28. Atos Trading Private Limited (ATPL)

29. Atos Mercantile Private Limited (AMPL)

30. Coastal Andhra Power Infrastructure Limited (CAPIL)

31. Reliance Power Netherlands BV (RPN)

32. PT Heramba Coal Resources (PTH)

33. PT Avaneesh Coal Resources (PTA)

34. Reliance Natural Resources Limited (RNRL)

35. Reliance Fuel Resources Limited (RFRL)

36. Reliance Natural Resources (Singapore) Pte Limited (RNRL- Singapore)

37. Reliance Renewable Power Private Limited (RRPPL) (upto 03.03.201 2)

38. Reliance Biomass Power Private Limited (RBPPL) (upto 03.03.2012)

39. Reliance Solar Resources Power Private Limited (RSRPPL)

40. Reliance Clean Power Private Limited (RCPPL)

41. Reliance Tidal Power Private Limited (RTPPL) (upto 03.03.2012)

42. Reliance Geothermal Power Private Limited (RGTPPL) (upto 03.03.2012)

43. Reliance Wind Power Private Limited (RWPPL)

44. Reliance Green Power Private Limited (RGPPL) (upto 03.03.2012)

45. PT Sumukha Coal Services (PTS)

46. PT Brayan Bintang Tiga Energi (BBE)

47. PT Sriwijiya Bintang Tiga Energi (SBE)

48. Shangling Hydro Power Private Limited (SPPL) (w.e.f. 19.05.2011)

49. Sumte Kothang Hydro Power Private Limited (SKPL) (w.e.f. 19.05.2011)

50. Teling Hydro Power Private Limited (TPPL) (w.e.f. 19.05.2011)

51. Lara Sumta Hydro Power Private Limited (LHPPL) (w.e.f. 19.05.201 1)

52. Purthi Hydro Power Private Limited (PHPPL) (w.e.f. 19.05.2011)

53. Reliance Clean Energy Private Limited (RCEPL) (w.e.f. 14.11.2011)

B. (i) Major investing parties/promoters having significant influence on the Company directly or indirectly Companies

Reliance Infrastructure Limited (R Infra)

AAA Project Ventures Private Limited (APVPL)

Individual

Shri Anil D Ambani

B. (ii) Other related parties with whom transactions have taken place during the year:

(i) Key Management Personnel:

1. Shri J P Chalasani (Chief Executive Officer)

2. Shri Paresh Rathod (Manager) (upto May 27, 201 1)

3. Shri Ramaswami Kalidas (Manager) (w.e.f. May 27, 201 1)

(ii) Enterprises over which individual described in clause B (i) above have control:

1. Reliance Infocomm Infrastructure Private Limited (RIIPL)

2. Reliance General Insurance Company Limited (RGICL)

3. Reliance Communication Infrastructure Limited (RCIL)

4. Reliance Capital Limited (RCL)

5. Reliance Communication Limited (RCom)

(iii) Others

BSES Kerala Power Limited (BKPL), subsidiary of R Infra

(iii) Other transactions:

a) The Company has pledged its shareholding in the following subsidiaries in accordance with sponsor support agreement, as a security towards the term loan availed by the Subsidiaries

i) 51% of equity shares of Sasan Power Limited.

ii) 51% of equity shares of Coastal Andhra Power Limited.

iii) 97% of equity shares of Dahanu Solar Power Private Limited.

iv) 64% of preference shares of Dahanu Solar Power Private Limited.

b) The Company has given equity support undertaking/financial support undertaking towards cost overrun to financial institutions/banks for rupee/foreign currency loans taken by Rosa Power Supply Company Limited, Sasan Power Limited, Vidarbha Industries Power Limited, Samalkot Power Limited and Dahanu Solar Power Private Limited.

c) Reliance Infrastructure Limited (R Infra) has issued Keep Well Letter in favour of a bank, which in turn has issued letter of credit in favour of FCCB holders of the Company, for which the Company has paid Rs. 36 lakhs to R Infra during the year.

d) During the year the Company has issued Commercial paper of Rs. 23,000 lakhs at a discount of 12% per annum, to RCL and the same has been redeemed at par on the maturity date.

The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

15) (Note 24 of notes to financial statements)

Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

16) (Note 25 of notes to financial statements)

Exchange Difference on Long Term Monetary Items

In respect of exchange difference arising on long term foreign currency monetary items, the Company has availed the option available in the Companies (Accounting Standard) (Second Amendment) Rules, 2011, vide notification dated December 29, 2011 issued by Ministry of Corporate Affairs. Accordingly, the Company has accumulated a gain of Rs. 16,050 lakhs to "Foreign currency monetary item translation difference account" towards exchange variation on revaluation of long term monetary items other than on account of depreciable assets.

17) (Note 26 of notes to financial statements)

The management has been legally advised that the Company is considered to be established with the object of providing infrastructural facilities and accordingly, Section 372A of the Companies Act, 1956 is not applicable to the Company.

18) (Note 27 of notes to financial statements)

The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 have been prepared as per revised Schedule VI. Accordingly, the previous year's figures have also been reclassified to conform to this year's classification. The adoption of the Revised Schedule VI for the previous year's figures does not impact recognition and measurement principles followed for preparation of financial statements.

Mar 31, 2011

1) (a) Contingent Liabilities

Counter guarantees / Bank guarantees issued on behalf of subsidiary companies aggregating to Rs. 26,467,407,680 (Previous Year Rs.1 2,000,000,000) to power procurers / banks / financial institutions primarily issued towards the construction of power plant / finance raised by respective subsidiary.

(b) Capital Commitments

Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs 28,968,335 (Previous Year Rs. Nil).

2) (Note No. 7 of Schedule 15 of financial statements) Composite Scheme of Arrangement

(a) The Composite Scheme of Arrangement ('Scheme') under Section 391 to 394 read with Sections 78, 100 to 103 of the Act between the Company, Reliance Natural Resources Limited (RNRL), the wholly owned subsidiary - Reliance Futura Limited (RFL) and four wholly owned subsidiaries of RFL - Atos Trading Private Limited (ATPL), Atos Mercantile Private Limited (AMPL), Reliance Prima Limited (RPrima) and Coastal Andhra Power Infrastructure Limited (CAPIL) has been sanctioned by Hon'ble High Court of Judicature at Bombay vide order dated October 1 5, 201 0. The Scheme has become effective on October 29, 201 0 on filing with Registrar of Companies (RoC) with an appointed date as on October 1 5, 2010

(b) RNRL was engaged in the business of sourcing, supply and transportation of gas, coal and liquid fuels. It was also involved in exploration and production of Coal Bed Methane (CBM) Blocks.

(c) Demerger of Business Undertaking of RNRL into the Company: In accordance with the Scheme

i) The business undertaking of RNRL representing undertaking related to exploration, fuel handling, shipping and related activities as a going concern, has been transferred to the Company. The transfer of assets and liabilities representing the business undertaking has been approved by the Board of Directors (BoD) of the Company at their meeting held on February 14, 2011.

ii) As a consideration, one fully paid equity share of Rs.1 0 each of the Company has been allotted for every four fully paid up equity shares of Rs.5 each of RNRL to shareholders of RNRL. Accordingly, 408,282,606 equity shares of Rs.10 each have been allotted to the shareholders of RNRL and an equivalent amount of Rs. 4,082,826,060 has been credited to share capital.

iv) On re-organisation of its share capital, RNRL has allotted 1 00,000 equity shares of Rs. 5 each to the Company and has become a wholly owned unlisted subsidiary, v) The difference in accounting policy with regard to depreciation on fixed assets between RNRL and the Company aggregating to Rs. 35,667,493 has been adjusted to the General Reserve of the Company.

(d) Transfer of exploration block undertakings from the Company to CAPIL, ATPL, AMPL, RPrima In accordance with the Scheme

i) The acquired CBM blocks from RNRL at Sohagpur (Madhya Pradesh), Barmer (Rajasthan), Kothagudam (Andhra Pradesh) and Oil Blocks at Mizoram, have been transferred to CAPIL, ATPL, AMPL and RPrima, respectively as a going concern,

ii) There is no consideration on transfer of these blocks to respective subsidiaries as these subsidiaries are directly/indirectly controlled by the Company,

iii) The assets and liabilities have been transferred at book values to the respective subsidiaries and the aggregate amount of net assets transferred amounting to Rs. 45,430,042 has been debited to General Reserve (created pursuant to the Scheme).

(e) Merger of RFL with the Company:

RFL was incorporated with the main objects of designing, developing, engineering power projects, etc. in India and abroad

In accordance with the Scheme

i) Net assets aggregating to Rs. 1 95,779,841 transferred have been accounted for at a fair value in the books of the Company. The net assets taken over primarily include Investments in mutual funds,

ii) There is no consideration payable as the entire share capital has been held by the Company and accordingly for an equivalent amount of net assets taken over, capital reserve of Rs. 1 95,779,841 has been created,

iii) The merger has been accounted for under the Purchase Method as prescribed by Accounting Standard 14 (AS 14) 'Accounting for Amalgamations' as prescribed under the Companies (Accounting Standards) Rules, 2006

3) (Note No. 8 of Schedule 1 5 of financial statements)

RNRL had issued 4.928% Convertible Bonds (FCCBs) of USD 300,000,000 vide letter of offer dated October 12, 2006. As per the terms of the above mentioned scheme, FCCBs shall be treated as FCCBs issued by the Company with same rights and obligations. The Bonds are convertible into equity shares at any time on or after November 27, 2006 and before October 11

2011 at the option of the Bondholder. The bonds are secured by the issuance of an irrevocable letter of credit to the trustee on behalf of the Bondholders by Barclays Bank Pic. The principal value of FCCBs are convertible at an exchange rate of Rs. 45.61 5 for one USD, determined on the basis of the buying rate on October 1 2, 2006. The Bonds were originally convertible at a price of Rs. 26 per share for each fully paid share of Rs. 5 to be issued by RNRL. Upon the scheme (Refer Note 7 above) being effective and on the basis of share exchange ratio given in 7 (c) above, the effective conversion price of the Bond stands at Rs. 104 per share for every fully paid equity share of Rs. 1 0 each to be issued by the Company on exercise of the option. The Bond may subject to certain conditions relating to trading of shares, be redeemed at the option of the Company on or after November 7 2007 and on or before October 1 0, 2011. The Bonds, however, fall due for redemption at the principal amount on October 1 7 2011, unless they are previously redeemed, converted, purchased or cancelled.

During the year, one FCCB having a face value of USD 1 00,000 has been converted against which the Company has allotted 43,860 fully paid equity shares of Rs. 1 0 each at a premium of Rs. 94 per share on the basis of effective price stated above

4) (Note No. 9 of Schedule 15 of financial statements) Scheme of Amalgamation between Company and SPIPL

Sasan Power Infraventures Private Limited (SPIPL), a wholly owned subsidiary of the Company, incorporated with the main object to operate, install, develop, promote and maintain projects in infrastructure sectors including setting up power plants etc., was amalgamated into the Company pursuant to the Scheme of Amalgamation (Scheme), as on and from January 1, 2011, being the appointed date pursuant to the approval of Board of Directors of the Company and sanctioned by the Hon'ble High Court of Judicature at Bombay vide its order dated April 29, 2011 which was filed with the Registrar of Companies on May 25, 2011 The Company has carried out the accounting treatment prescribed in the Scheme as approved by the Hon'ble High Court of Judicature at Bombay. The required disclosures as per paragraph 42 of Accounting Standard 14 (AS 14) 'Accounting for Amalgamations' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided. Further, the Company has also been legally advised that the said accounting treatment carried out in line with the Scheme approved by the Hon'ble Court of Judicature at Bombay is not in violation of any applicable rules and regulations. Hence, in accordance with the Scheme

a) The Company has taken over all the assets aggregating to Rs. 1,887,775,1 20 and liabilities aggregating to Rs. 1 7,072,226 at their respective book values. The difference aggregating to Rs. 1,870,702,894 being the excess arising on transfer of assets and liabilities has been credited to General Reserve (arising pursuant to the Scheme).

b) There is no consideration payable or receivable on implementation of the Scheme as the Scheme involves a wholly owned subsidiary. The entire issued, subscribed and paid up capital of the subsidiary has been cancelled and no shares have been allotted or exchanged in lieu of the same.

c) Investments in equity share capital of SPIPL amounting to Rs. 1,780,1 00,000 has been written off in the Profit and Loss Account and an equivalent amount has been withdrawn from General Reserve vide board approval dated May 27, 2011, to off-set the said write off and credited the same to Profit and Loss Account.

Had the Scheme not prescribed the above accounting treatments, the treatment in accordance with AS 14 would have been:

a) Rs. 1,870,702,894 being the excess arising on transfer of assets and liabilities credited to General Reserve (arising pursuant to the Scheme), would have been credited to Capital Reserve.

b) Rs. 1,780,1 00,000 being the investment of the Company (share capital plus securities premium) in SPIPL debited to the Profit and Loss Account, would be debited to the Capital Reserve.

c) Rs. 1,780,1 00,000 withdrawn from General Reserve would have not been withdrawn The above accounting treatment as per the Scheme does not have a material impact on the Profit for the year and on the net worth of the Company.

5) (Note No. 10 of Schedule 15 of financial statements) Employee Stock Option Scheme (ESOS)

Pursuant to the approval accorded by the Shareholders on September 30, 2007 under Section 81(1 A) of the Companies Act,1 956, the Company has administered and implemented Employee Stock Option Scheme (ESOS) in terms of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,1 999 (Guidelines). The Board of Directors of the Company have constituted its ESOS compensation committee to operate and monitor the ESOS scheme which is administered through ESOS Trust.

The ESOS compensation committee of the Board of Directors of the Company approved a grant of upto 20,000,000 stock options to the eligible employees of the Company and its subsidiaries on May 8, 201 0. The options are granted to the employees of the Company and its subsidiaries on satisfying the performance and other eligibility criteria set out in ESOS Plan. In accordance with the scheme, each option entitles the employee to apply for one fully paid equity share of Rs. 1 0 of the Company at an exercise price of Rs. 1 62 per share. The vesting period of options will commence on expiry of one year from the grant date and all the options granted shall vest immediately. The vested options can be exercised by the eligible employees over a period of nine years from the date of vesting.

The Company has opted for accounting the Compensation expenses under 'Intrinsic Value Method'. The closing market price on the date of grant was Rs. 1 40.20 per share at National Stock Exchange (being latest trading price with highest trading volume) As the exercise price of the share is more than market price, the Company has not accounted for any compensation cost during the year. The Company has advanced Rs. 1,400,01 0,000 (disclosed under Schedule 7 - Loans and Advances) to the ESOS trust for purchase of equity shares from the market. The ESOS trust has purchased 8,500,000 shares from the given advance

6) (Note No. 11 of Schedule 15 of financial statements) Project Status

a) The Company is currently developing a 7,480 MW gas-fired power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 has acquired 2,1 00 acres of land and conveyed the same to the Company in the year 2005. While the State is in the process of acquiring further 400 acres of land for the project, a few land owners have filed writ petitions before the Allahabad High Court challenging the acquisition process under the Land Acquisition Act, 1894 ("the Act"). The Allahabad High Court has disposed off the writ petitions upholding the Section 4 notification and directed compliance with certain procedures relating to land acquisition that were left out earlier by State Government. The Company has filed appeal against the Allahabad High Court order which is now pending before Supreme Court. Few land owners have also filed appeals/petitions before the Supreme Court challenging Allahabad High Court upholding Section 4 notification and alleging highhanded and forceful actions during the acquisition process, which are pending.

b) The construction and other allied activities at Dadri project will be commenced as soon as the gas supply is firmed up and on settlement of land acquisition issues. Expenditure incurred during the construction and incidental to setting up the project are carried forward as "Capital Work in Progress". These expenses would be capitalised as fixed assets on completion of the project and commencement of commercial operations. Considering the current status and future plans with regard to the project, the Company does not envisage provision for impairment as at the balance sheet date.

7) (Note No. 12 of Schedule 15 of financial statements) Assignment of Samalkot Power Project

During the year, the Company had entered into Erection, Procurement, Construction and Service contract with Reliance Infrastructure Limited (R Infra) for its proposed 2,400 mega watt gas based power project (Samalkot Power Project) at Samalkot (Andhra Pradesh). As per the terms of contract, the Company had given an advance of Rs. 7,874,400,000 to R Infra. The Company has entered into Deed of assignment on March 21, 201 1 with a wholly owned subsidiary Samalkot Power Limited (special purpose vehicle (SPV) for Samalkot Power Project). In accordance with the terms of assignment, the Company has transferred all rights, obligations, assets including the aforesaid advance and liabilities, pertaining to the Samalkot Power Project to the said SPV. The said capital advance paid has been considered as an Inter-Corporate Deposit as at the year end.

8) (Note No. 13 of Schedule 15 of financial statements)

Disclosure under Accounting Standard 1 5 (revised 2005) "Employee Benefits" (AS-1 5) The Company has classified various employee benefits as under: Defined contribution plans

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

Defined Benefit Plans

(a) Gratuity

(b) Leave encashment

Leave encashment is payable to eligible employees who have earned leave, during the employment and/or on separation as per the Company's policy.

11) (Note No. 14 of Schedule 15 of financial statements)

Related Party Transactions

As per accounting standard-1 8 'Related Party Disclosures' as prescribed under Companies (Accounting Standards) Rules, 2006 the Company's related parties and transactions are disclosed below:

A. Parties where Control exists

(i) Subsidiaries: (Direct and Step Down Subsidiaries)

1. Sasan Power Limited (SPL)

2. Rosa Power Supply Company Limited (RPSCL)

3. Maharashtra Energy Generation Limited (MEGL)

4. Vidarbha Industries Power Limited (VIPL)

5. Tato Hydro Power Private Limited (THPPL)

6. Siyom Hydro Power Private Limited (SHPPL)

7. Chitrangi Power Private Limited (CPPL)

8. Urthing Sobla Hydro Power Private Limited (USHPPL)

9. Kalai Power Private Limited (KPPL)

10. Coastal Andhra Power Limited (CAPL)

11. Reliance Coal Resources Private Limited (RCRPL)

12. Reliance Power International SARL (RPIS)

13. Sasan Power Infrastructure Limited (SPIL) (w.e.f 16.08.2010)

14. Erstwhile Sasan Power Infraventures Private Limited (Erstwhile SPIPL) (w.e.f. 1 6.08.2010) (Refer Note 9 above)

15. Maharashtra Energy Generation Infrastructure Limited (MEGIL)

16. Amulin Hydro Power Private Limited (AHPPL)

17. Emini Hydro Power Private Limited (EHPPL)

18. Mihundon Hydro Power Private Limited (MHPPL)

1 9. Jharkhand Integrated Power Limited (JIPL)

20. Reliance CleanGen Limited (Formerly Reliance Patalganga Power Limited) (RPPL) (w.e.f. 05.06.2010)

21. Rajasthan Sun Technique Energy Private Limited

(Formerly Ballerina Advisory Services Private Limited) (RSTEPL) (w.e.f. 29.07.2010)

22. Erstwhile Reliance Futura Limited (Erstwhile RFL) (w.e.f. 29.06.2010) (Refer Note 7 above)

23. Dahanu Solar Power Private Limited

(Formerly Reliance Last Mile Communications Private Limited) (DSPPL) (w.e.f. 08.09.2010)

24. Solar Generation Company (Rajasthan) Private Limited (SGCPL) (w.e.f. 29.09.2010)

25. Bharuch Power Limited (BPL) (w.e.f 08.06.2010)

26. Samalkot Power Limited (SMPL) (w.e.f. 29.07.2010)

27. Reliance Prima Limited (RPrima) (w.e.f. 30.06.2010)

28. Atos Trading Private Limited (ATPL) (w.e.f. 30.06.2010)

29. Atos Mercantile Private Limited (AMPL) (w.e.f 30.06.2010)

30. Coastal Andhra Power Infrastructure Limited (CAPIL)

31. Reliance Power Netherlands BV (RPN) (w.e.f. 09.07.2010)

32. PT Heramba Coal Resources (PTH) (w.e.f. 02.08.2010)

33. PT Avaneesh Coal Resources (PTA) (w.e.f. 02.08.2010)

34. Reliance Natural Resources Limited (RNRL) (w.e.f. 15.10.2010)*

35. Reliance Fuel Resources Limited (RFRL) (w.e.f. 1 5.1 0.201 0)*

36. Reliance Natural Resources (Singapore) Pte Limited (RNRL-Singapore) (w.e.f. 15.10.2010)*

37. Reliance Renewable Power Private Limited (RRPPL) (w.e.f. 29.10.2010)

38. Reliance Biomass Power Private Limited (RBPPL) (w.e.f 1 0.1 1.201 0)

39. Reliance Solar Resources Power Private Limited (RSRPPL) (w.e.f 1 0.11.201 0)

40. Reliance Clean Power Private Limited (RCPPL) (w.e.f 1 0.11.201 0)

41. Reliance Tidal Power Private Limited (RTPPL) (w.e.f 1 0.11.201 0)

42. Reliance Geothermal Power Private Limited (RGTPPL) (w.e.f 1 0.11.201 0)

43. Reliance Wind Power Private Limited (RWPPL) (w.e.f 11.11.201 0)

44. Reliance Green Power Private Limited (RGPPL) (w.e.f 11.11.201 0)

45. PT Sumukha Coal Services (PTS) (w.e.f 1 5.1 0.201 0)

46. PT Brayan BintangTiga Energi (BBE) (w.e.f 04.1 0.201 0)

47. PTSriwijiya BintangTiga Energi (SBE) (w.e.f 04.1 0.201 0)

transferred on account of Composite Scheme of Arrangement (Refer Note 7 above)

(ii) Major Investing Parties/Promoters having significant influence on the Company directly or indirectly

Companies

Reliance Infrastructure Limited (R Infra)

AAA Project Ventures Private Limited (APVPL)

Individual

Shri Anil D Amban

B. Other related parties with whom transactions have taken place during the year:

(i) Key Managerial Personnel

1. Shri K H Mankad (Whole-time Director) (up to March 13, 2011)

2. Shri J P Chalasani (Chief Executive Officer)

3. Shri Paresh Rathod (Manager)

(ii) Enterprises over which individual described in clause A (ii) above has control

1. Reliance Infocomm Infrastructure Private Limited (RIIPL)

2. Reliance General Insurance Company Limited (RGICL)

3. Reliance Communication Infrastructure Limited (RCIL)

4. Reliance Capital Limited (RCL)

5. Reliance Communication Limited (RCom) (iii) Others

BSES Kerala Power Limited (BKPL), subsidiary of R Infra

(iii) Other transactions:

a) The Company has pledged 51 % of its holding in equity shares of Sasan Power Limited and Coastal Andhra Power Limited in accordance with sponsored support agreement dated April 21, 2009 and July 7, 201 0 respectively as a security towards the term loan availed by these companies.

b) The Company has given equity support undertaking/financial support undertaking towards cost overrun to financial nstitution/banks for rupee/foreign currency loan taken by Rosa Power Supply Company Limited, Coastal Andhra Power Limited, Sasan Power Limited and Vidarbha Industries Power Limited.

c) The Company has transferred all rights, obligations and assets pertaining to 2,400 MW Samalkot Power Project to Samalkot Power Limited in accordance with Deed of Assignment with the said Company. (Refer Note 1 2 above)

d) Reliance Infrastructure Limited (R Infra) has issued Keep Well Letter in favour of a bank, who in turn has issued letter of credit in favour of FCCB holders of the Company, for which the Company has incurred Rs. 3,21 5,1 14 towards keep well charges during the period October 1 5, 201 0 to March 31, 2011

e) The Company on behalf of the subsidiary - JIPL has paid Rs. 8,900,000,000 as an advance against EPC contract entered by JIPL with R Infra. The said advance has been considered as Inter Corporate Deposit and accordingly disclosed.

f) During the year, pursuant to the Composite Scheme of Arrangement, the Company has entered into transactions with subsidiaries in accordance with the Scheme sanctioned by Hon'ble High Court. (Refer Note 7 above)

The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.

9) (Note No. 1 6 of Schedule 1 5 of financial statements) Segment Reporting

The Company operates in two business segments i.e. Power Generation and Associated Business Activities (termed as "Others") Associated Business Activities includes project management, supervision and support services for generation and allied processes Business segment have been identified as reportable primary segment in accordance with Accounting Standard 1 7 'Segment Reporting' as prescribed under Companies (Accounting Standards) Rules, 2006, taking into account the organisational and internal reporting structure as well as evaluation of risk and return for these segments. Segment reporting policies are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included as "unallocable".

10) (Note No. 21 of Schedule 15 of financial statements)

Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

11) (Note No. 22 of Schedule 15 of financial statements)

The Company has used the option available under Accounting Standard 11 as referred under Note 1 (d) above. The exchange gain/loss (disclosed under Schedule 13) arising on revaluation of FCCB (including its interest), being a liability other than on depreciable assets, has been fully amortised upto March 31, 2011. Accordingly there is no unamortised balance of the same as at the year end in "Foreign Currency Monetary Item Translation Difference Account",

12) (Note No. 24 of Schedule 15 of financial statements)

The management has been legally advised that the Company is considered to be established with the object of providing nfrastructural facilities and accordingly, Section 372A of the Companies Act, 1 956 is not applicable to the Company.

13) (Note No. 26 of Schedule 15 of financial statements)

Figures for the previous year have been regrouped/rearranged wherever necessary. Previous year figures are not comparable with that of the current year on account of the effects of the Schemes.

Mar 31, 2010

1) (a) Contingent Liabilities:

Counter guarantees issued to banks against guarantees issued by them on behalf of subsidiary companies aggregating to Rs. 12,000,000,000 (Previous Year Rs. 6,000,000,000).

(b) Capital Commitments:

Estimated amount of contracts remaining unexecuted on capital account and not provided for Rs. Nil. (Previous Year Rs. 81,341,991).

2) a) The Company is currently developing a 7,480 MW gas-fred power project to be located at the Dhirubhai Ambani Energy City in Dehra village, Dadri, Uttar Pradesh. The State of Uttar Pradesh in the year 2004 has acquired 2,100 acres of land and conveyed the same to the Company in the year 2005. While the State is in the process of acquiring further 400 acres of land for the project, a few land owners fled writ petitions before the Allahabad High Court challenging the acquisition process under Land Acquisition Act, 1894 ("the Act"). The Allahabad High Court has disposed of the writ petitions upholding the Section 4 notifcation and directed to comply with certain procedures relating to land acquisition that were left out earlier by State Government. The Company has fled appeal against the Allahabad High Court order which is now pending before Supreme Court.

b) The Dadri project has already received all statutory clearances from the Central and Uttar Pradesh government authorities including Environmental Clearance for the full capacity of 7,480 MW. The Project will use gas sourced from KrishnaÃGodavari basin ("KG Basin") being developed by Reliance Industries Limited (RIL). Subsequent to balance sheet date, the Honorable Supreme Court has pronounced its judgement in the case between RIL and Reliance Natural Resources Limited (RNRL), wherein both the parties have been directed to re-negotiate the terms of gas supply within a stipulated period of time. The critical site activities like construction of approach road and site Office have been completed. Other activities will be commenced as soon as the gas supply arrangement is frmed up and settlement of land acquisition issues. Expenditure incurred during the construction and incidental to setting up the project are carried forward as "Capital Work-in-Progress". These expenses would be capitalised as fxed assets on completion of the project and commencement of commercial operations. Considering the current status and future plans with regard to the project, the Company does not envisage provision for impairment as at the balance sheet date.

3) Disclosure under Accounting Standard 15 (revised 2005) "employee Benefits" (AS-15)

The Company has classifed various employee Benefits as under: defined contribution plans

(a) Provident fund

(b) Superannuation fund

(c) State defined contribution plans

- 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 trust. Under the schemes, the Company is required to contribute a specifed percentage of payroll cost to the retirement Benefit schemes to fund the Benefits.

Defined Benefit Plans

(a) Gratuity

(b) Leave encashment

Leave encashment is payable to eligible employees who have earned leaves, during the employment and/or on separation as per the Companys policy.

Valuations in respect of gratuity and leave encashment have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions:

4) Related Party Transactions:

As per Accounting Standard-18 ÃRelated Party Disclosures as prescribed under Companies (Accounting Standards) Rules, 2006, the Companys related parties and transactions are disclosed below:

A. Parties where Control exists:

(i) Subsidiaries :

a) Sasan Power Limited (SPL)

b) Rosa Power Supply Company Limited (RPSCL)

c) Maharashtra Energy Generation Limited (MEGL)

d) Vidarbha Industries Power Limited (VIPL)

e) Tato Hydro Power Private Limited (THPPL)

f) Siyom Hydro Power Private Limited (SHPPL)

g) Chitrangi Power Private Limited (CPPL)

h) Urthing Sobla Hydro Power Private Limited (USHPPL)

i) Kalai Power Private Limited (KPPL)

j) Coastal Andhra Power Limited (CAPL)

k) Reliance Coal Resources Private Limited (RCRPL)

l) Sasan Power Infrastructure Limited (SP Infrastucture)

m) Sasan Power Infraventures Private Limited (SP Infraventures)

n) Reliance Power International Sarl (RPIS)

o) Coastal Andhra Power Infrastructure Limited (CAPIL)

p) Maharashtra Energy Generation Infrastructure Limited (MEGIL)

q) Jharkhand Integrated Power Limited (JIPL) (w.e.f. 07.08.2009)

r) Amulin Hydro Power Private Limited (AHPPL) (w.e.f. 07.07.2009)

s) Emini Hydro Power Private Limited (EHPPL) (w.e.f. 07.07.2009)

t) Mihundon Hydro Power Private Limited (MHPPL) (w.e.f. 07.07.2009)

(ii) Major investing Parties:

a) Reliance Infrastructure Limited (R Infra)

b) AAA Project Ventures Private Limited (APVPL)

c) AAA International Capital Private Limited

d) Reliance Enterprises and Ventures Private Limited

(iii) Person having control over the investing parties as defined in (ii) (b),(c) and (d) above:

Shri Anil D Ambani (Chairman)

B. other related parties with whom transactions have taken place during the year:

(i) Key Management Personnel:

Shri K H Mankad (Whole Time Director) Shri J P Chalasani (Chief Executive Officer) Shri Paresh Rathod (Manager)

(ii) enterprises over which person described in clause A (iii) above has control:

a) Reliance Infocomm Infrastructure Private Limited (RIIPL)

b) Reliance General Insurance Company Limited (RGICL)

c) Reliance Communications Infrastructure Limited (RCIL)

d) Reliance Capital Limited (RCL)

e) Reliance Communications Limited (RCom)

5. The management has been legally advised that the Company is considered to be established with the object of providing infrastructural facilities and accordingly, Section 372A of the Companies Act, 1956 is not applicable to the Company.

6. In accordance with Accounting Standard 17 "Segment Reporting" as prescribed under Companies (Accounting Standards) Rules, 2006, the Company has determined its business segment as power generation. Since, there are no other business segments in which the Company operates, there are no other primary reportable segments. Therefore the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is refected in the financial statements.

7. Disclosure as required under Accounting Standard - 19 "Accounting for Leases" as prescribed under Companies (Accounting Standards) Rules, 2006 :

a) The Company has entered into cancellable leasing agreement for its Office premises renewable by mutual consent on mutually agreeable terms.

8. Disclosure under Micro, Small and Medium enterprises Development Act, 2006:

There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identifed on the basis of information available with the Company.

9. Information to the extent not disclosed, with regard to matters specifed in paragraph 3, 4A, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956 is either Nil or not applicable to the Company for the year ended March 31, 2010.

10. Figures for the previous year have been regrouped/rearranged wherever necessary to make them comparable for the current year.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article