Reliance Inf S Regulatory News (RIFS)

Notes:

1. The Board has recommended dividend of Rs 8 per equity share for the year 2014-15.

2. a) The Company has opted for amortising the foreign exchange fluctuation gain / (loss) on the long term foreign currency monetary items over the balance life of such items. Accordingly, the Company has carried forward unamortised portion of net gain of Rs 241.65 crore to "Foreign Currency Monetary Items Translation Difference Account" as on March 31, 2015.

b) Pursuant to the option exercised under the Scheme of Amalgamation of Reliance Infraprojects Limited with the Company sanctioned by the Hon'ble High Court of Judicature at Bombay, net foreign exchange loss of Rs 65.71 crore and Rs 135.45 crore (net off of foreign exchange loss of Rs 3.78 crore and Rs 236.11 crore attributable to finance cost) for the quarter and the year ended March 31, 2015 respectively has been debited to the Statement of Profit and Loss and an equivalent amount has been withdrawn from General Reserve. Had the relevant provisions of Accounting Standard 5 (AS-5) 'Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies' been followed, the Profit before tax would have been lower by Rs 65.71 crore and Rs 135.45 crore for the quarter and the year ended March 31, 2015 respectively. This matter has been referred to by the Auditors in their report.

3. The Hon'ble High Court of Judicature at Bombay vide order dated July 15, 2014, had approved the Scheme of Amalgamation of two wholly owned Subsidiaries of the Company viz. Western Region Transmission (Maharashtra) Private Limited (WRTM) and Western Region Transmission (Gujarat) Private Limited (WRTG) with the Company w.e.f. April 1, 2013 (appointed date). All requisite approvals have been obtained, however certain procedural formalities with Central Electricity Regulatory Commission (CERC) are required to be completed. Pending completion of procedural formalities, the Company has given effect to the substance of the Scheme and accordingly these Subsidiaries have been amalgamated with the Company during the quarter ended March 31, 2015. The profit after tax pertaining to the year ended March 31, 2014 amounting to Rs 5.84 crore of these amalgamated Subsidiaries has been transferred to surplus as per Statement of Profit and Loss. The profit before tax of the current quarter and year ended March 31, 2015 includes profit of these amalgamated Subsidiaries amounting to Rs 22.32 crore. In view of the above, the figures of the quarter and year ended March 31, 2015 are not comparable with the figures for the corresponding previous periods. Pursuant to the Scheme, all Assets and Liabilities amounting to Rs 613.74 crore (Net), of the Subsidiaries have been recorded in the books of the Company at their respective fair values, and corresponding equivalent amount is credited to the Capital Reserve. This matter has been referred to by the Auditors in their report.

4. Pursuant to the Scheme of amalgamation between WRTM and Reliance Cement Works Private Limited sanctioned by the Hon'ble High Court of judicature at Bombay on April 25, 2014, wherein as per the Scheme WRTM or its successors was permitted to offset any extra ordinary / exceptional items, as determined by Board of directors, debited in the Statement of Profit and Loss by a corresponding withdrawal from General Reserve. The Company being the successor of WRTM, the Board of Directors of the Company, in terms of the aforesaid Scheme, during the quarter and year ended March 31, 2015 determined an amount of Rs 1,924.15 crore as Exceptional items being loss on reduction of Rs 606.49 crore in value of certain Investments and write off of certain investments of Rs 1,317.66 crore and debited the same to Statement of Profit and Loss and withdrew an equivalent amount from General Reserve by crediting to the Statement of Profit and Loss. The treatment prescribed under the Scheme 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', which has been referred to by the Auditors in their report.

5. Delhi Airport Metro Express Private Limited (DAMEPL), a SPV of the Parent Company, terminated the Concession Agreement with Delhi Metro Rail Corporation (DMRC) for the Delhi Airport Metro Line, on account of Material Breach and Event of Default under the provisions of the Concession Agreement by DMRC. The operations were taken over by DMRC with effect from July 1, 2013.

As per the terms of the Concession Agreement, DMRC is now liable to pay DAMEPL a Termination Payment, which is estimated at Rs 2,823 crore, as the termination has arisen owing to DMRC's Event of Default. The matter has been referred to arbitration and the process for the same is continuing. Pending final outcome of the arbitration, the Company continues to fund the statutory and other obligations of DAMEPL post take over by DMRC and accordingly has funded Rs 87.16 crore and Rs 251.89 crore in the quarter and the year ended March 31, 2015.

During the quarter, the Company has reviewed the progress in settlement of various claims and also on overall review of financial position of DAMEPL, the Company has considered it prudent to write off Rs 1,258.20 crore, out of total investment of Rs 1,702.10 crore in DAMEPL. However, as legally advised, DAMEPL's claims for the termination payments are considered fully enforceable This matter has been referred to by the Auditors in their report.

6. During the quarter, Reliance Defence Systems Private Limited, Reliance Defence Technologies Private Limited, Reliance Defence and Aerospace Private Limited and Reliance Defence Limited, have become subsidiaries of the Company and Reliance Cement & Infra Private Limited ceased to be a subsidiary of the Company.

7. Ratios have been computed as under:

· Debt Service Coverage Ratio = Earnings before Interest and Tax / (Interest on Long Term Debt + Principal Repayment of Long Term Debt due within one year)

· Interest Service Coverage Ratio = Earnings before Interest and Tax / Interest on Long Term Debt

8. After review by the Audit Committee, the Board of Directors of the Company has approved the Standalone financial results at their meeting held on May 27, 2015.

9. The figures of the current quarter ended March 31, 2015 and March 31, 2014 are the balancing figures between audited figures in respect of the full financial year and the reviewed year to date figures upto the third quarter of the relevant financial year.

10. Figures of the previous period / year have been regrouped / reclassified wherever considered necessary.

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: May 27, 2015 Chairman