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Reliance Power Limited CIN: L40101MH1995PLC084687

Registered Office: Dhirubhai Ambani Knowledge City Reliance Centre, Ground Floor, Thane Belapur Road, 19, Walchand Hirachand Marg, Koparkhairane, ~~Ballard Estate, Mumbai - 400 0~~ 01 Navi Mumbai 400 710

Tel: +91 22 4303 1000 Fax: +91 22 4303 3166 www.reliancepower.co.in

August 23, 2021

BSE Limited

Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai 400 001 BSE Scrip Code : 532939

National Stock Exchange of India Ltd Exchange Plaza, C-1, Block G Bandra-Kurla Complex, Bandra (East) Mumbai 400 051 NSE Symbol : RPOWER

Dear Sir(s),

Sub: Notice of 27[th] Annual General Meeting and Annual Report 2020-21

This is to inform that the 27[th] Annual General Meeting (AGM) of the members of the Company will be held on Tuesday, September 14, 2021 at 12:30 P.M. (IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM).

The Annual Report for the financial year 2020-21, including the Notice convening the AGM is enclosed herewith.

The Company will provide to its members the facility to cast their vote(s) on all resolutions set out in the Notice by electronic means (‘e-voting’). The detailed process to join meeting through VC / OAVM and e-voting, are set out in Notice.

Yours faithfully,

For Reliance Power Limited

Digitally signed by MURLI MANOHAR PUROHIT MURLI DN: c=IN, o=Personal, title=9335, pseudonym=9d9efa2f01e2a2e806100 8f2de54ace4945d20006069094db300 00f1f104bd44, postalCode=400101, MANOHAR st=Maharashtra, serialNumber=869cd4554a9093e8f1c3 89debc48ea121f39dab1f61ef1e915aa 0e498c6c3a71, cn=MURLI MANOHAR PUROHIT PUROHIT Date: 2021.08.23 13:10:37 +05'30' Murli Manohar Purohit Vice President - Company Secretary & Compliance Officer

Encl. : As above.

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Power

Annual Report 2020-21

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Padma Vibhushan

Shri Dhirubhai H. Ambani

(28[th] December, 1932 - 6[th] July, 2002) Reliance Group - Founder and Visionary

Reliance Power Limited

Board of Directors		Contents Page No.
Shri Anil Dhirubhai Ambani -	Chairman
Shri Sateesh Seth -	Vice Chairman	Notice of Annual General Meeting ..............................................4
Smt. Chhaya Virani		Directors’ Report ......................................................................... 13
Shri Bimal Julka
Shri Vijay Kumar Sharma		Management Discussion and Analysis ...................................... 27
Shri K. Raja Gopal		Business Responsibility Report .................................................. 32
Key Managerial Personnel		Corporate Governance Report ................................................... 40
Shri Sandeep Khosla -	Chief Financial Offcer	Certifcate on Corporate Governance by
Shri Murli Manohar Purohit -	Company Secretary Cum Compliance Offcer &	practicing Company Secretary ................................................... 56
	Manager	Investor Information ................................................................... 57
Auditors		Independent Auditors’ Report on the
M/s. Pathak H. D. & Associates LLP		Financial Statement ................................................................... 64
Registered Offce		Balance Sheet ............................................................................. 70
Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg,		Statement of Proft and Loss .................................................... 71
Ballard Estate, Mumbai 400 001 CIN: L40101MH1995PLC084687		Statement of Changes in equity ............................................... 72
Tel : +91 22 4303 1000, Fax: +91 22 4303 3166
E-mail: [email protected]		Cash Flow Statement ................................................................. 74
Website: www.reliancepower.co.in
		Notes to the Standalone Financial Statement ........................ 76
Registrar and Transfer Agent
KFin Technologies Private Limited		Independent Auditors’ Report on the
Unit: Reliance Power Limited		Consolidated Financial Statement ..........................................118
Karvy Selenium, Tower – B, Plot	No. 31 & 32
Survey No. 116/22, 115/24, 115/25		Consolidated Balance Sheet ....................................................124
Financial District, Nanakramguda
Hyderabad 500 032		Consolidated Statement of Proft and Loss ...........................125
Website : www.kfntech.com
Investor Helpdesk		Consolidated Statement of Changes in equity ......................126
Toll free no. (India) : 1800 309 4001		Consolidated Cash Flow Statement ........................................128
Tel. no. : +91 40 6716 1500		Notes to the Consolidated Financial Statement ...................130
Fax no. : +91 40 6716 1791
E-mail : [email protected]		Statement containing salient features of the fnancial statement of subsidiaries /
		associates companies / joint ventures ...................................197

27[th] Annual General Meeting on Tuesday, September 14, 2021 at 12.30 p.m.(IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM)

The Annual Report can be accessed at www.reliancepower.co.in

Reliance Power Limited

Notice

Notice is hereby given that the 27[th] Annual General Meeting (AGM) of the Members of Reliance Power Limited will be held on Tuesday, September 14, 2021 at 12.30 P.M (IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM), to transact the following business:

Ordinary Business:

1. To consider and adopt:

a) the audited financial statement of the Company for the financial year ended March 31, 2021 and the reports of the Board of Directors and Auditors thereon, and
b) the audited consolidated financial statement of the Company for the financial year ended March 31, 2021 and the report of the Auditors thereon.

2. To appoint a Director in place of Shri K Raja Gopal (DIN: 00019958), who retires by rotation under the provisions of the Companies Act, 2013 and being eligible, offers himself for re-appointment.

3. To reappoint Auditors and fix their remuneration and in this regard, to consider and, if thought fit, to pass the following resolution as an Ordinary Resolution :

“RESOLVED THAT pursuant to the provisions of Sections 139, 142 and other applicable provisions, if any, of the Companies Act, 2013 (hereinafter referred to as “the Act”) and the relevant Rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof for the time being in force), M/s. Pathak H.D.& Associates, LLP, Chartered Accountants (Firm Registration No. 107783W/ W100593), who have confirmed their eligibility for the re-appointment pursuant to Section 141 of the Act as Statutory Auditors of the Company, be and are hereby re-appointed as Statutory Auditors of the Company for a term of five consecutive years, to hold office from the conclusion of this Annual General Meeting (AGM) till the conclusion of the 32[nd] AGM, at such remuneration as shall be fixed by the Board of Directors of the Company.”

Special Business:

4. Appointment of Smt. Chhaya Virani as an Independent Director

To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution :

for being appointed as an Independent Director and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing her candidature for the office of Director and in accordance with the recommendation of the Nomination and Remuneration Committee, be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation and to hold office for a term up to 5 (five) consecutive years commencing from September 26, 2020.”

5. Appointment of Shri Bimal Julka as an Independent Director

To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:

“ RESOLVED THAT pursuant to the provisions of Sections 149 and 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) and the Companies (Appointment and Qualification of Directors) Rules, 2014 and the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), Shri Bimal Julka (DIN: 03172733), who qualifies for being appointed as an Independent Director and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature for the office of Director and in accordance with the recommendation of the Nomination and Remuneration Committee, be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation and to hold office for a term up to 5 (five) consecutive years commencing from September 26, 2020.”

6. Appointment of Shri Vijay Kumar Sharma as an Independent Director

To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution :

“RESOLVED THAT pursuant to the provisions of Sections 149 and 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) and the Companies (Appointment and Qualification of Directors) Rules, 2014 and the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), Shri Vijay Kumar Sharma (DIN: 02449088), who qualifies for being appointed as an Independent Director and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature for the office of Director and in accordance with the recommendation of the Nomination and Remuneration Committee, be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation and to hold office for a term up to 5 (five) consecutive years commencing from September 26, 2020.”

Reliance Power Limited

Notice

7. Payment of remuneration to Cost Auditors for the financial year ending March 31, 2022

To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution :

“RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions, if any, of the Companies Act, 2013 (the ‘Act’) and the relevant Rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), M/s. V.J. Talati & Co., Cost Accountants (Firm Registration No. R00213) appointed as the Cost Auditors in respect of its 45 MW Wind farm Power Project at Vashpet, Dist. Sangli, Maharashtra, for the financial year ending March 31, 2022, be paid a remuneration of ` 15,000/- (Rupees fifteen thousand only) excluding applicable taxes and out of pocket expenses, if any;

RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby authorised to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

8. Appointment of Shri Murli Manohar Purohit as Manager

To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Schedule V, Sections 196, 197, 203 and other applicable provisions, if any, of the Companies Act, 2013 read with rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof for the time being in force), the approval be and is hereby accorded for the appointment of Shri Murli Manohar Purohit as Manager of the Company for a period of 3 (three) consecutive years with effect from August 10, 2021 as per the terms and conditions including remuneration as set out in the Explanatory Statement annexed to the notice convening this meeting;

RESOLVED FURTHER THAT Board of Directors of the Company, be and are hereby authorised to file the necessary document(s) / form(s) with the Registrar of Companies and to do all such acts, deeds, matters, and things as may be deemed necessary, desirable, proper or expedient for the purpose of giving effect to this resolution and for matters connected therewith or incidental thereto.”

By Order of the Board of Directors Murli Manohar Purohit Company Secretary & Compliance Officer

Registered Office:

Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400001 CIN: L40101MH1995PLC084687 Website: www.reliancepower.co.in

Notes:

Statement pursuant to Section 102(1) of the Companies Act, 2013 (the “Act”), in respect of the Special Business to be transacted at the Annual General Meeting (“AGM”) is annexed hereto.
In view of the continuing Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has vide its circular dated May 5, 2020 read with circulars dated April 8, 2020, April 13, 2020 and January 13, 2021 (collectively referred to as “MCA Circulars”) permitted the holding of the “AGM” through Video Conferencing (VC) / Other Audio Visual Means (OAVM), without the physical presence of the Members at a common venue. Accordingly, in compliance with the provisions of the Act, Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”) and MCA Circulars, the AGM of the Company is being held through VC / OAVM.
Since the AGM is being held through VC / OAVM, physical attendance of Members has been dispensed with. Accordingly, the facility for appointment of proxies will not be available for the AGM and hence the Proxy Form and Attendance Slip are not annexed to this Notice .
Re-appointment of Director:

At the ensuing Meeting, Shri K. Raja Gopal (DIN: 00019958), Director of the Company retires by rotation under the provisions of the Act and being eligible, offers himself for re-appointment. The Nomination and Remuneration Committee and the Board of Directors of the Company have recommended the re-appointment.

The details pertaining to Shri K. Raja Gopal pursuant to the requirements of Regulation 36(3) of the Listing Regulations are furnished below and in the Corporate Governance Report forming part of this Annual Report.

Shri K. Raja Gopal, 63 years, ME, MBA having over thirtyseven years of industry and leadership experience in both public and private domains. A well acknowledged leader in power industry of the country known for deep insight, vision, team building capability, fostering strong relationships and a proven track record of execution and operation of large Independent Power Producers (IPPs).

He has been appointed as a Director of the Company with effect from July 01, 2018. He has attended all 4 Board Meetings held during the financial year 2020-21. He is a member of the Stakeholder Relationship Committee (SRC) and Corporate Social Responsibility (CSR) Committee. In terms of Section 152(6) of the Act, he was appointed as the Executive Director at the Annual General Meeting held on September 18, 2018 liable to retire by rotation.

As on March 31, 2021, Shri K Raja Gopal did not hold any equity shares of the Company. He does not hold any relationship with other Directors and Key Managerial Personnel of the Company. Except Shri K Raja Gopal, none of the Director / Key Managerial Personnel of the Company and their relatives are, in any way, concerned or interested, financially or otherwise, in the resolution set out at item No. 2 of the Notice.

August 09, 2021

Reliance Power Limited

Notice

In compliance with the aforesaid MCA Circulars and SEBI Circulars dated May 12, 2020 and January 15, 2021 (collectively referred to as “Circulars”). Notice of the AGM along with the Annual Report 2020-21 is being sent only through electronic mode to those Members whose email addresses are registered with the Company or CDSL / NSDL (“Depositories”). Members may note that the Notice and Annual Report 2020-21 will also be available on the Company’s website at www. reliancepower.co.in, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia. com respectively, and also on the website of M/S. KFin Technologies Private Limited (KFintech) at www. kfintech.com.
Members whose email address is not registered can register the same in the following manner so that they can receive all communications from the Company electronically:
a. Members holding share(s) in physical mode – by registering their email ID on the Company’s website at https://www.reliancepower.co.in/web/ reliance-power/shareholder-registration
b. Members holding share(s) in electronic mode - by registering / updating their e-mail ID with their respective Depository Participants (“DPs”).
The Company has engaged the services of Kfintech as the authorized agency for conducting of the e-AGM and providing e-voting facility.
Members attending the AGM through VC / OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Act.
Since the AGM is being held through VC / OAVM, the Route Map is not annexed in this Notice.
Relevant documents referred to in the accompanying Notice calling the AGM are available on the website of the Company for inspection by the Members.
Members are advised to refer to the section titled ‘Investor Information’ provided in this Annual Report.
As mandated by SEBI, effective from April 1, 2019, securities of listed companies shall be transferred only in dematerialised form. In view of the above and to avail various benefits of dematerialisation, Members are advised to dematerialise share(s) held by them in physical form.
Members are requested to fill in and submit the Feedback Form provided in the ‘Investor Relations’ section on the Company’s website at www.reliancepower.co.in to aid the Company in its constant endeavor to enhance the standards of service to investors.

14 . Instructions for attending the AGM and e-voting are as follows:

a. In compliance with the provisions of Section 108 of the Act, read with Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended from time to time and Regulation 44 of the Listing Regulations, the Company is offering e-voting facility to all Members of the Company. A person, whose name is recorded in the Register

of Members or in the Register of Beneficial Owners (in case of electronic shareholding) maintained by the Depositories as on the cut-off date i.e. Tuesday, September 7, 2021 only shall be entitled to avail the facility of remote e-voting / e-voting at the AGM. Kfintech will be facilitating remote e-voting to enable the Members to cast their votes electronically. Members can cast their vote online from 10:00 A.M. (IST) on Friday, September 10, 2021 to 5:00 P.M. (IST) on Monday, September 13, 2021. At the end of remote e-voting period, the facility shall forthwith be blocked.

b. Pursuant to SEBI circular No. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020 on “e-voting facility provided by Listed Companies”, which is effective from June 9, 2021, e-voting process has been enabled for all the individual demat account holders, by way of single login credential, through their demat accounts / websites of Depositories / DPs in order to increase the efficiency of the voting process.
c. Individual demat account holders would be able to cast their vote without having to register again with the e-Voting Service Provider (ESP) thereby not only facilitating seamless authentication but also ease and convenience of participating in e-Voting process. Members are advised to update their mobile number and e-mail ID with their DPs to access e-Voting facility.
d. The voting rights of the Members shall be in proportion to the number of share(s) held by them in the equity share capital of the Company as on the cut-off date being Tuesday, September 7, 2021.
In case of joint holders, the Member whose name appears as the first holder in the order of names as per the Register of Members of the Company will be entitled to vote at the AGM.
e. Any person holding shares in physical form and nonindividual shareholders, who become a member of the Company after sending of the Notice and hold shares as of the cut-off date, may obtain the login ID and password by sending a request to Kfintech at [email protected]. However, if he/ she is already registered with KFintech for remote e-Voting, then he/she can use his/her existing User ID and password for casting the e-vote.
f. In case of Individual Shareholders holding securities in demat mode and who become a member of the Company after sending of the Notice and hold share(s) as of the cut-off date may follow steps mentioned below under “Login method for remote e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode.”
g. The Members who have cast their vote by remote e-voting prior to the AGM may also attend / participate in the AGM through VC / OAVM but shall not be entitled to cast their vote again.

Reliance Power Limited

Notice

h. The details of the process and manner for remote e-Voting and e-AGM are explained herein below:

Part A - E-voting

I. Access to Depositories e-Voting system in case of individual shareholders holding shares in demat mode.

Type of Members	Login Method
Securities held in demat mode with NSDL	1. User already registered for IDeAS facility: i. Visit URL: https://eservices.nsdl. com ii. Click on the “Benefcial Owner” icon under “Login” under ‘IDeAS’ section. iii. On the new page, enter User ID and Password. Post successful authentication, click on “Access to e-Voting” iv. Click on company name or ESP and you will be re-directed to the ESP’s website for casting the vote during the remote e-Voting period.
	2. User not registered for IDeAS e-Services i. To register click on link :https:// eservices.nsdl.com ii. Select “Register Online for IDeAS” or click at https://eservices.nsdl. com/SecureWeb/IdeasDirectReg. jsp iii. Proceed with completing the required felds. iv. Follow stepsgiven inpoints 1
	3. Alternatively by directly accessing the e-Voting website of NSDL Open URL: https://www.evoting. nsdl.com/ i. Click on the icon “Login” which is available under ‘Shareholder/ Member’ section. ii. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number held with NSDL), Password / OTP and a Verifcation Code as shown on the screen. iii. Post successful authentication, you will be requested to select the name of the Company and the ESP, i.e. KFintech. iv. On successful selection, you will be redirected to KFintech e-Voting page for casting your vote during the remote e-Voting period.

Type of Members	Login Method
Securities held in demat mode with CDSL	1. Existing user who have opted for Easi / Easiest i. Visit URL: https://web.cdslindia. com/myeasi/home/login or www.cdslindia.com ii. Click on New System Myeasi iii. Login with your registered User ID and Password. iv. The user will see the e-Voting Menu. The Menu will have links of ESP i.e. KFintech e-Voting portal. v. Click on e-Voting service provider name to castyour vote.
	2. User not registered for Easi / Easiest i. Option to register is available at https://web.cdslindia. com/myeasi/Registration/ EasiRegistration ii. Proceed with completing the required felds. iii. Follow the stepsgiven inpoint 1.
	3. Alternatively, by directly accessing the e-Voting website of CDSL i. Visit URL: www.cdslindia.com ii. Provide your demat Account Number and PAN No. iii. System will authenticate user by sending OTP on registered Mobile and Email as recorded in the demat Account. iv. After successful authentication, user will be provided with the link for the respective ESP i.e. KFintech where the e- Voting is inprogress.
Login through Depository Participant Website where demat account is held	i. You can also login using the login credentials of your demat account through your DP registered with NSDL /CDSL for e-Voting facility. ii Once logged-in, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL / CDSL Depository site after successful authentication, wherein you can see e-Voting feature. iii. Click on options available against Reliance Power or ESP – KFintech and you will be redirected to e-Voting website of KFintech for casting your vote during the remote e-Voting period without any further authentication.

Reliance Power Limited

Notice

Important note: Members who are unable to retrieve User ID / Password are advised to use Forgot user ID and Forgot Password option available at respective websites.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL.
Login type Helpdesk details Securities held with NSDL Please contact NSDL helpdesk by sending a request at evoting@nsdl.
co.in or call at toll free no.: 1800
1020 990 and 1800 22 44 30
Securities held Please contact CDSL helpdesk by
with CDSL sending a request at helpdesk. [email protected] or call at 022 - 23058738 or 022- 23058542 - 43

II. Access to KFintech e-Voting system in case of shareholders holding shares in physical form and nonindividual shareholders in demat mode.
(a) Members whose email IDs are registered with the Company/ DPs, will receive an email from KFintech which will include details of E-Voting Event Number (EVEN), USER ID and password. They will have to follow the following process:
i. Launch internet browser by typing the URL: https:// emeetings.kfintech.com/
ii. Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be EVEN (E-Voting Event Number) xxxx, followed by folio number. In case of Demat account, User ID will be your DP ID and Client ID. However, if you are already registered with KFintech for e-voting, you can use your existing User ID and password for casting the vote.
iii. After entering these details appropriately, click on “LOGIN”.
iv. You will now reach password change Menu wherein you are required to mandatorily change your password. The new password shall comprise of minimum 8 characters with at least one upper case (A- Z), one lower case (a-z), one numeric value (0-9) and a special character (@,#,$, etc.,). The system will prompt you to change your password and update your contact details like mobile number, email ID, etc. on first login. You may also enter a secret question and answer of your choice to retrieve your password in case you forget it. It is strongly recommended that you do not share your password with any other person and that you take utmost care to keep your password confidential.
v. You need to login again with the new credentials.
vi. On successful login, the system will prompt you to select the “EVEN” i.e., ‘Reliance Power Limited- AGM” and click on “Submit”
vii. On the voting page, enter the number of share(s) (which represents the number of votes) as on the Cut-off Date under “FOR/AGAINST” or alternatively, you may partially enter any number in “FOR” and partially “AGAINST” but

the total number in “FOR/ AGAINST” taken together shall not exceed your total shareholding as mentioned herein above. You may also choose the option ABSTAIN. If the member does not indicate either “FOR” or “AGAINST” it will be treated as “ABSTAIN” and the shares held will not be counted under either head.

viii. Members holding multiple folios/demat accounts shall choose the voting process separately for each folio/ demat accounts.
ix. Voting has to be done for each item of the notice separately. In case you do not desire to cast your vote on any specific item, it will be treated as abstained.
x. You may then cast your vote by selecting an appropriate option and click on “Submit”.
xi. A confirmation box will be displayed. Click “OK” to confirm else “CANCEL” to modify. Once you have voted on the resolution(s), you will not be allowed to modify your vote. During the voting period, members can login any number of times till they have voted on the Resolution(s).
xii. Corporate/Institutional Members (i.e. other than Individuals, HUF, NRI, etc.) are also required to send scanned certified true copy (PDF Format) of the Board Resolution/Authority Letter etc., authorizing its representative to attend the AGM through VC / OAVM on its behalf and to cast its vote through remote e-voting together with attested specimen signature(s) of the duly authorized representative(s), to the Scrutinizer’s email id [email protected] with a copy marked to [email protected]. The scanned image of the above-mentioned documents should be in the naming format “Corporate Name_EVEN No.”
(b) Members whose email IDs are not registered with the Company/DPs, and consequently the Annual Report, Notice of AGM and e-voting instructions cannot be serviced, will have to follow the following process:
i. Temporarily get their email address and mobile number provided with KFintech, by sending an e-mail to [email protected].
Members are requested to follow the process as guided to capture the email address and mobile number for sending the soft copy of the notice and e-voting instructions along with the User ID and Password. In case of any queries, member may write to einward.ris@ kfintech.com.
ii. Alternatively, member may send an e-mail request at the email id [email protected] along with scanned copy of the signed request letter providing the email address, mobile number, self-attested PAN copy and Client Master copy in case of electronic folio and copy of share certificate in case of physical folio for sending the Annual report, Notice of AGM and the e-voting instructions.
iii. After receiving the e-voting instructions, please follow all steps above to cast your vote by electronic means.

Reliance Power Limited

Notice

Part B – Access to join virtual meetings (e-AGM) of the Company on KFintech system to participate in e-AGM and vote thereat.

Instructions for all the shareholders for attending the AGM of the Company through VC/OAVM and e-Voting during the meeting.
i. Member will be provided with a facility to attend the AGM through VC / OAVM platform provided by KFintech. Members may access the same at https://emeetings. kfintech.com/ by using the e-voting login credentials provided in the email received from the Company/ KFintech. After logging in, click on the Video Conference tab and select the EVEN of the Company. Click on the video symbol and accept the meeting etiquettes to join the meeting. Please note that the members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned above.
ii. Facility for joining AGM though VC/ OAVM shall open at least 15 minutes before the time scheduled for the Meeting.
iii. Members are encouraged to join the Meeting through Laptops / Desktops with Google Chrome (preferred browser), Safari, Internet Explorer, Microsoft Edge, Mozilla Firefox 22.
iv. Members will be required to grant access to the webcam to enable VC / OAVM. Further, Members connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid difficulties.
v. As the AGM is being conducted through VC / OAVM, for the smooth conduct of proceedings of the AGM, members are encouraged to express their views / send their queries in advance mentioning their name, demat account number / folio number, email id, mobile number at https://evoting.kfintech.com. Queries received by the Company till Monday, September 13, 2021 (5.00 P.M. IST) shall only be considered and responded during the AGM.
vi. The members who have not cast their vote through remote e-voting shall be eligible to cast their vote through e-voting system available during the AGM. E-voting during the AGM is integrated with the VC / OAVM platform. The members may click on the voting icon displayed on the screen to cast their votes.
vii. A member can opt for only single mode of voting i.e., through remote e-voting or voting at the AGM. Once the vote on a resolution(s) is cast by the member, the member shall not be allowed to change it subsequently.
viii. Facility of joining the AGM through VC / OAVM shall be available for 1000 members on first come first served basis. However, the participation of members holding 2% or more shares, promoters, and Institutional Investors, directors, key managerial personnel, chairpersons of Audit Committee, Stakeholders Relationship Committee, Nomination and Remuneration Committee and Auditors are not restricted on first come first serve basis.
ix. The members who wish to speak during the meeting may register themselves as speakers for the AGM to express their views. They can visit and login through the user id and password provided by KFintech. On successful login, select ‘Speaker Registration’. The Company reserves the right to restrict the speakers at the AGM to only those members who have registered themselves, depending on the availability of time for the AGM.
x. In case of any query and/or grievance, in respect of voting by electronic means, members may refer to the Help and Frequently Asked Questions (FAQs) and E-voting user manual available at the download section of https:// evoting.kfintech.com (KFintech Website) or send email at [email protected] or call KFintech’s toll free no. 1800-309-4001.
xi. In case a person has become a member of the Company after dispatch of AGM Notice but on or before the cutoff date for E-voting, he/she may obtain the User ID and Password in the manner as mentioned below:
a. If the mobile number of the member is registered against Folio No./ DP ID Client ID, the member may send SMS: MYEPWD E-Voting Event Number + Folio No. or DP ID Client ID to 9212993399
1. Example for NSDL:
  - MYEPWD IN12345612345678
2. Example for CDSL:
  - MYEPWD 1402345612345678
3. Example for Physical:
  - MYEPWD XXXX1234567890
b. If e-mail address or mobile number of the member is registered against Folio No. / DP ID Client ID, then on the home page of https://evoting.kfintech. com/, the member may click “Forgot Password” and enter Folio No. or DP ID Client ID and PAN to generate a password.
xii. Members who may require any technical assistance or support before or during the AGM are requested to contact KFintech at toll free number 1800-309-4001 or write to them at [email protected].
The Board of Directors have appointed Mr. Anil Lohia, Partner or in his absence Mr. Chandrahas Dayal, Partner, M/s. Dayal and Lohia, Chartered Accountants as the Scrutiniser to scrutinise the voting process in a fair and transparent manner. The Scrutiniser will submit their report to the Chairman or any person authorised by him after completion of the scrutiny and the results of voting will be announced after the AGM of the Company. Subject to receipt of requisite number of votes, the resolutions shall be deemed to be passed on the date of the AGM. The result of the voting will be submitted to the Stock Exchanges, where the shares of the Company are listed and posted on the website of the Company at www. reliancepower.co.in and also on the website of Kfintech at https://evoting.kfintech.com

Reliance Power Limited

Statement pursuant to Section 102 (1) of the Companies Act, 2013 and pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the accompanying Notice dated August 9, 2021

Item No. 3:

As per the provisions of Companies Act, 2013 (hereinafter referred to as “the Act”) and the relevant Rules made there under (including any statutory modification(s) or re-enactment(s) thereof for the time being in force), it is proposed to re-appoint M/s. Pathak H.D. & Associates LLP, Chartered Accountants (Firm Registration No. 107783W/ W100593) as Statutory Auditors of the Company whose term expires at the end of ensuing Annual General Meeting (AGM).

The Audit Committee and Board of Directors of the Company have recommended the re-appointment of M/s. Pathak H.D. & Associates LLP, Chartered Accountants as Statutory Auditors of the Company for a second term of five (5) consecutive years from the conclusion of 27[th] AGM till the conclusion of 32[nd] AGM of the Company.

Additional information about Statutory Auditors pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations) is provided below:

provided	provided			below:
Details				Particulars
Proposed Fees payable the Statutory Auditors			to	`39.45 lakh per year from the fnancial year 2021-22 with authority to the Board to revise during the tenure of fve (5) years, if required.
Terms of		Appointment		For a term of fve (5) consecutive years from the
				conclusion of 27thAGM till the
				conclusion of 32ndAGM of the
Basis of recommendation for appointment including the details in relation				Company M/s. Pathak H.D. & Associates LLP is one of the leading frms of Chartered Accountants in
to	and	credentials	of	India.
the Statutory Auditor(s) proposed to be appointed				M/s. Pathak H.D. & Associates LLP is a multi-disciplinary
				Audit Firm catering to various
				clients in diverse sectors. The
				range of services includes
				Assurance, Taxation, Corporate
				and Transaction Advisory Services.
				M/s. Pathak H.D. & Associates
				LLP holds the ‘Peer Review’ certifcate as issued by ‘ICAI’

None of the Directors, Key Managerial Personnel of the Company and their relatives are, in any way, concerned or interested financially or otherwise in this resolution set out at Item no. 3 of the Notice.

The Board accordingly recommends the Ordinary Resolution set out at Item No. 3 of the accompanying Notice for approval of the Members.

Item No. 4, 5 & 6: Appointment of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma as Independent Directors

Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma were appointed as the Independent Directors of the Company by the Board with the recommendation of the Nomination and Remuneration Committee, for a term of 5 (five) consecutive years commencing from September 26, 2020, in accordance with the provisions of Section 149 read with Schedule IV to the Companies Act, 2013 (the ‘Act’).

The Company had received declarations from the above mentioned Directors confirming that they meet the criteria of independence as prescribed both under Section 149(6) of the Act and under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations). In the opinion of the Board, each of the Directors fulfil the conditions specified in the Act and the Listing Regulations for their respective appointment as Independent Directors and that they are independent of the management.

Keeping in view the above, it is proposed to seek approval of the Members to appoint Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma as Independent Directors on the Board of the Company, not liable to retire by rotation.

As required under Section 160 of the Act, the Company has received notices in writing from members proposing the candidature of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma for their respective offices of Director of the Company.

Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma are not disqualified from being appointed as Directors in terms of Section 164 of the Act and have given their consent(s) to act as Director.

In the opinion of the Board, all the above persons fulfil the conditions specified in the Act and Rules made there under for their appointment as Independent Directors of the Company and that they are independent of the management.

The details pertaining to Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma are furnished hereunder:

She is a director of the Company and also on the Board of Reliance Capital Limited, Reliance Home Finance Limited, Reliance General Insurance Company Limited, Reliance Capital Pension Fund Limited, Reliance Corporate Advisory Services Limited, Rosa Power Supply Company Limited and Sasan Power Limited.

She is the Chairperson of the Audit Committee and Stakeholders Relationship Committee of Reliance Capital Limited and Reliance Home Finance Limited. She is the member of the Audit Committee of the Company and also of Reliance General Insurance Company Limited, Reliance Capital Pension Fund Limited, Sasan Power Limited and Rosa Power Supply Company Limited.

Reliance Power Limited

Statement pursuant to Section 102 (1) of the Companies Act, 2013 and pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the accompanying Notice dated August 9, 2021

Shri Bimal Julka, 66 years, a name well known in Government, is an Indian Administrative Service (IAS) officer of the 1979 batch belonging to the Madhya Pradesh Cadre. Four decades of service in the Government at both state and national levels have contributed to a stellar career graph. In the latter years of his career, Shri Julka held key positions in the Ministries of Defence and Finance. At the pinnacle of his career, he became Secretary to Government of India in the Ministry of I&B.

From accomplishing a near impossible task as a young officer in charge of relief during the Bhopal Gas tragedy to successfully conducting FM radio auctions as Secretary, Shri Julka, is known to be a true Karmayogi. Dealing with inconsistencies at bureaucratic levels with a firm hand and to use the principals of good governance for the larger interest of public good have been his forte. A hard hitting negotiator yet humble and affable, along with a truly democratic style of functioning has made him one of the most respected civil servants.

An exemplary service record led to his appointment as Information Commissioner at the Central Information Commission in 2016. In early 2020, he was appointed as the Chief Information Commissioner of India.

Shri Vijay Kumar Sharma, 62 years , superannuated as Chairman, Life Insurance Corporation of India (‘LIC’) on December 31, 2018. Prior to his taking over as Chairman on December 16, 2016, he served as Chairman (In charge) from September 16, 2016 and Managing Director of LIC from November 1, 2013. From December 2010 to November 2013, he served as Managing Director & Chief Executive Officer of LIC Housing Finance Limited (LICHFL), a premiere housing finance company in the country.

Shri Sharma is a post-graduate from Patna University. He joined LIC as Direct Recruit Officer in 1981 and grew up with the Corporation since then. He held various challenging assignments pan India and in all operational streams including in-charge positions at different levels. Working across length and breadth of the country has added immensely to his experience and honed his understanding of demographics of the country, socio-economic needs of different regions and multi-cultural challenges in implementation of Corporate’s objectives. He has served LIC for over 37 years. During his tenure, he has worked in all core areas of Life Insurance. He has vast national and international, operational and Board level experience of Financial Sector including Banking, Housing Finance, Pension & Group Insurance Business, Cards, Mutual Funds & Pension Fund.

He is a Director of Companies of repute including Tata Steel Limited, Mahindra & Mahindra Limited, Ambuja Cement Foundation, Indian Commodity Exchange Limited (‘ICEX Limited’), NURECA Limited and Vidarbha Industries Power Limited (‘VIPL’). He is also the Chairman of ICEX Limited and VIPL.

He is the Chairman of Stakeholders Relationship Committee (SRC) of the Company and Tata Steel Limited. He is the member of Audit Committee of the Company and ICEX Limited. He is the Chairman of Audit Committee of VIPL.

The above Directors do not hold any share in the Company and do not have any relationship with other Directors and Key Managerial Personnel of the Company.

Brief profile of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma is furnished in the Corporate Governance Report forming part of this Annual Report. Approval of Members is accordingly sought for appointment of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma as Independent Directors as set out in the resolutions at Item Nos. 4, 5 & 6 of the accompanying Notice.

Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma are interested in the resolutions set out respectively at Item Nos. 4, 5 & 6 of the Notice in regard to their respective appointments.

The relatives of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma may be deemed to be interested in the resolutions set out respectively at Item Nos. 4, 5 & 6 of the Notice, to the extent of their equity shareholding interest, if any, in the Company.

Save and except the above, none of the other Directors, Key Managerial Personnel and their relatives are concerned or interested, financially or otherwise, in these resolutions.

This statement may also be regarded as a disclosure under the Act and Regulation 36(3) of the Listing Regulations.

The Board accordingly recommends the Ordinary Resolutions set out at Item Nos. 4, 5 & 6 of the accompanying Notice for the approval of the Members

Item No. 7: Payment of remuneration to the Cost Auditors for the financial year ending March 31, 2022

The Board of Directors, on the recommendation of the Audit Committee, has approved the appointment and remuneration of M/s. V.J. Talati & Co., Cost Accountants (Firm Registration No. R00213), as the Cost Auditors in respect of its 45 MW Wind farm Power Project at Vashpet, Dist. Sangli, Maharashtra for the financial year ending March 31, 2022, at a remuneration of ` 15,000/- excluding applicable taxes and out of pocket expenses, if any. In terms of the provisions of Section 148(3) of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors needs to be ratified by the Members of the Company.

None of the Directors, Key Managerial Personnel of the Company and their relatives are, concerned or interested, financially or otherwise, in this resolution set out in Item no. 7 of the Notice.

Reliance Power Limited

Statement pursuant to Section 102 (1) of the Companies Act, 2013 and pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the accompanying Notice dated August 9, 2021

Board accordingly recommends the Ordinary Resolution set out at Item No. 7 of the accompanying Notice for approval of the Members.

Item No. 8: Appointment of Shri Murli Manohar Purohit as Manager

The Board at its meeting held on August 09, 2021 appointed Shri Murli Manohar Purohit, Company Secretary & Compliance Officer of the Company as Manager under the Companies Act, 2013 for a period of 3 (three) consecutive years with effect from August 10, 2021.

For the purpose of compliance of the provisions of Section 203 of the Companies Act, 2013, (“the Act”) the appointment of Shri Murli Manohar Purohit as Manager will be considered as Key Managerial Personnel.

As a Manager of the Company he will be appointed at NIL Remuneration. The other terms and conditions set out for appointment and payment of remuneration, may be altered and varied from time to time by the Board on the recommendation of Nomination and Remuneration Committee as it may, at its discretion deems appropriate.

Shri Murli Manohar Purohit, 50 years, the Company Secretary and Compliance Officer of the Company is a Fellow member

of the ICSI, Associate member of ICMAI, Law Graduate, Masters in Commerce (Accounting) and CA (Finalist) is having experience of over two decades with Listed and Unlisted Companies in the areas of Corporate Compliance, Secretarial, Legal, Taxation, Commercial, Accounts / Finance. Shri Murli Manohar Purohit is associated with the Reliance Power Limited for over four years.

Except Shri Murli Manohar Purohit, none of the Directors, Key Managerial Personnel of the Company and their relatives are, concerned or interested, financially or otherwise, in the resolution set out at Item No. 8 of the Notice.

The board accordingly recommends the Ordinary Resolution set out at Item No. 8 of the accompanying Notice for approval of the Members.

By Order of the Board of Directors Murli Manohar Purohit Company Secretary & Compliance Officer

Registered Office: Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400001 CIN: L40101MH1995PLC084687 Website: www.reliancepower.co.in August 09, 2021

Reliance Power Limited

Directors’ Report

Dear Shareowners,

Your Directors present the 27[th] Annual Report and the Audited Financial Statements for the financial year ended March 31, 2021.

Financial Results

The performance of the Company (Consolidated and Standalone) for the financial year ended March 31, 2021, is summarised below:

below:
				`in lakhs
Particulars	Financial Year ended		Financial Year ended
	March 31, 2021		March 31, 2020
	(Consolidated)	(Standalone)	(Consolidated)	(Standalone)
Total Income	8,38,860	52,212	8,20,241	33,942
Proft / (Loss) Before Tax	43,903	5,534	(4,24,782)	(38,884)
Less: Provision for Taxation (Net)	(1,491)	-	2,366	-
Proft / (Loss) After Tax	45,394	5,534	(4,27,148)	(38,884)

Dividend

During the year under review, the Board of Directors has not recommended dividend on the Equity Shares of the Company.

The Dividend Distribution Policy as approved by the Board may be accessed on the Company’s website at the link https:// www.reliancepower.co.in/documents/2181716/2364859/ Dividend_Distribution_Policy_RPower.pdf

Business Operations

During the year 2020-21 all the operating plants of the Company which are functioning through its subsidiary companies were available for generation above 90% across the year and performed exceedingly well on efficiency parameters.

The Company’s Sasan Ultra Mega Power Plant (UMPP) (Capacity 3,960 MW) generated 33,388 Million Units (MUs) and retained its leadership position of best operating plant in India for third year in a row, across all thermal power plants in the country with a Plant Load Factor (PLF) of 96.25% against an all India average of ~ 53.4%.

The Sasan UMPP is the World’s largest integrated power plant with the Moher and Moher Amlohri Extension captive coal mines meeting the fuel requirements of the plant. During the year Sasan Coal Mine handled 84.57 Million BCM including the Overburden at 72.2 Million BCM, making it the biggest mine in the country in terms of the overall volume handled.

The Rosa Thermal Power plant (1,200 MW) generated 6,751 MUs during the current year, delivering the consistent Year-on-Year performance. The Rosa power plant received prestigious accolades and awards from prestigious Institutions for excellence in safety, CSR and best Energy Management.

The Butibori Thermal plant (600 MW) remained out of operation during the year and the company is working on a resolution plan.

The Solar PV (40 MW) Plant generated 59.76 MUs during the year. The Solar CSP (100 MW) plant generated 77.63 MUs.

The Company’s Wind farm at Vashpet in Sangli District of Maharashtra achieved annual generation of 63.76 MUs during the year.

718 MW (net) Gas-based Project in Bangladesh

Reliance Bangladesh LNG and Power Limited (RBLPL) is setting up the 718 MW (net) Power plant at Meghnaghat near Dhaka in Bangladesh, together with the strategic partner JERA Power International (Netherlands) - a subsidiary of JERA Co. Inc. (Japan). The project secured necessary financing from a group of lenders including Japan Bank for International Cooperation and Asian Development Bank, and achieved Financial Closure in February, 2021. Samalkot Power Limited concluded the arrangements for sale of one module equipment for the said Gas-based project in Bangladesh and received the approval from US Exim Bank. The necessary export approvals were secured and the physical export of equipment from India started in March 2021.

Impact of COVID-19 Pandemic

COVID-19 has impacted businesses globally and in India. The Company has continued its assessment of likely adverse impact of COVID-19 on economic environment and business & financial risks. The Company is in the business of generation of electricity which is an essential service as emphasized by the Ministry of Power, Government of India. Despite facing challenges posed by the pandemic, the Company has ensured the availability of its power plants to generate power and honour commitments made under various power purchase agreements. However, there exists uncertainty over longterm impact of COVID–19 pandemic on future business performances, arising from among other things, any action to contain its spread or mitigate its impact whether governmentmandated or elected by the Company and its evolving impact on its customers i.e. distribution utilities, in terms of demand for electricity; consumption mix; resultant average tariff realization; bill collections from consumers; subsidy support from respective State Governments who are faced with sharp fall in tax revenues and liquidity support from banks & financial institutions, including those focused on power sector financing. This in turn impacts Generation entities in terms of demand and challenges in ensuring timely collections. The demand for electricity, which contracted due to lockdown measures imposed to contain spread of COVID–19 pandemic, has nearly bounced back to normal levels in keeping with the resumption of economic activities since easing of lockdown in various States. Given the experience of sustaining its operations successfully during the pandemic year, the Company is

Reliance Power Limited

Directors’ Report

confident of another year of successful operations with the support from its power procurers and other stakeholders.

Management Discussion and Analysis

Management Discussion and Analysis Report for the year under review, as stipulated under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations’), is presented in a separate section forming part of this Annual Report.

Resources and Liquidity

The Company has delayed/defaulted in repayment to its lenders. The Company has been in discussion with its lenders for resolution. The Company is confident of meeting its obligations by generating sufficient and timely cash flows through time bound monetisation of its assets and also realizing regulatory receivables/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 and discharge its liabilities in the normal course of its business.

Deposits

The Company has not accepted any deposits from the public which comes within the purview of Section 73 of the Companies Act, 2013 (hereinafter referred to as ‘the Act’) read with the relevant Rules made thereunder.

Particulars of Loans, Guarantees or Investments

Pursuant to the provisions of Section 186 of the Act, the details of Investments made are provided in the standalone financial statements under Note No. 3.3(a). The Company has complied with provisions of Section 186 of the Act, to the extent applicable with respect to Loans, Guarantees or Investments during the year.

Subsidiary and Associate Companies

As on March 31, 2021, the Company had 36 subsidiaries under its fold. During the year, two companies i.e Reliance, Bangladesh LNG and Power Limited and Reliance Bangladesh LNG Terminals Limited ceased to be subsidiaries of the Company.

The Company had the following Associate Companies as on March 31, 2021:

RPL Sun Power Private Limited
RPL Photon Private Limited
RPL Sun Technique Private Limited

The operating and financial performance of the major subsidiary companies, has been covered in the Management Discussion and Analysis Report forming part of this Annual Report. The financial results of the subsidiary companies have been consolidated with those of the parent company. The Company’s policy for determining material subsidiaries, as approved by the Board, may be accessed on the Company’s website at the link https://www.reliancepower.co.in/ documents/2181716/2364859/Policy_for_Determining_ Material_Subsidiary-new.pdf

Financial Statements - Application of the Companies (Indian Accounting Standards) Rules, 2015

The audited financial statements of the Company drawn up both on standalone and consolidated basis, for the financial year ended March 31, 2021, are in accordance with the requirements of the Companies (Indian Accounting Standards) Rules, 2015 (“Ind AS Rules”).

Consolidated Financial Statements

The Audited Consolidated Financial Statements for the financial year ended March 31, 2021, have been prepared, in accordance with the Ind AS Rules and relevant provisions of the Act, from the duly approved Financial Statements of Subsidiaries and Associates by their respective Board of directors.

Directors

During the period under review Smt. Rashna Khan, Shri K Ravikumar and Shri D J Kakalia have completed their term as Independent Directors of the Company on September 25, 2020.

The Board of Directors place on record their sincere appreciation for the outstanding contribution made by Smt. Rashna Khan, Shri K Ravikumar and Shri D J Kakalia during their tenure of association with the Company.

Consequent to the above, the Company proposes to appoint Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma as Independent Directors to hold office from September 26, 2020 for a term of five consecutive years.

The Company has received a notice in writing from member under Section 160 of the Act, proposing the candidature of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma for the office of Director of the Company. Based on the recommendation of Nomination and Remuneration Committee, the Board considered integrity, expertise and experience of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma and appointed them as Additional Direcor in the capacity of Independent Director, subject to the approval of the members of the Company.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of Independence as prescribed under the Act and the Listing Regulations.

The details of programme for familiarisation of Independent Directors with the Company, nature of the industry in which the Company operates and related matters are uploaded on the website of the Company at the link: https://www. reliancepower.co.in/documents/2181716/2364859/ RPower_Familiarization_Programme_2020_21.pdf

Key Managerial Personnel (KMP)

Shri K. Raja Gopal, Whole-time Director and Chief Executive Officer, Shri Sandeep Khosla, Chief Financial Officer and Shri Murli Manohar Purohit, Company Secretary and Compliance Officer are the Key Managerial Personnel (KMP).

Reliance Power Limited

Directors’ Report

Evaluation of Directors, Board and Committees

The Nomination and Remuneration Committee (NRC) of the Board of the Company has devised a policy for performance evaluation of the individual directors, Board and its Committees, which includes criteria for performance evaluation.

Pursuant to the provisions of the Act and Regulation 17(10) of the Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the directors as well as Committees of the Board. The Board’s performance was evaluated based on inputs received from all the Directors after considering criteria such as Board’s composition and structure, effectiveness of the Board, performance of the Committees, processes and information provided to the Board, etc.

The performance of the committees was evaluated by the Board of Directors based on inputs received from all the committee members after considering criteria such as composition and structure of committees, effectiveness of committee meetings, etc.

Pursuant to the Listing Regulations, performance evaluation of independent directors was done by the entire board, excluding the independent director being evaluated

The NRC has also reviewed the performance of the individual Directors based on their knowledge, level of preparation and effective participation in meetings, understanding of their roles as directors, etc.

Policy on Appointment and Remuneration for Directors, Key Managerial Personnel and Senior Management Employees

The NRC of the Board has devised a policy for selection, appointment and remuneration of Directors, Key Managerial Personnel and Senior Management Employees. The Committee has also formulated the criteria for determining qualifications, positive attributes and independence of Directors. The Policy can be accessed on the Company’s website at https://www. reliancepower.co.in/documents/2181716/2364859/ Policy_on_appointment_remuneration_for_Directors_KMP_and_ Senior_Management_Employees.pdf

Directors’ Responsibility Statement

Pursuant to the requirements under Section 134(5) of the Act with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

i. In the preparation of the annual financial statement, for the financial year ended March 31, 2021, the applicable Accounting Standards had been followed along with proper explanation relating to material departures, if any;
ii. The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2021 and of the Profit of the Company for the year ended on that date;
iii. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. The Directors had prepared the annual financial statements for the financial year ended March 31, 2021 on a ‘going concern’ basis;
v. The Directors had laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and are operating effectively; and
vi. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Contracts and Arrangements with Related Parties

All contracts arrangements transactions entered into by the Company during the financial year under review with related parties were at an arm’s length basis and in the ordinary course of business.

There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons, which could have potential conflict with the interest of the Company at large.

During the year, the Company has not entered into any contract/ arrangement/transaction with related parties which could be considered material in accordance with the policy of Company on materiality of related party transactions (transactions where the value involved exceeds 10% of the Company’s consolidated gross income or 10% of the Company’s consolidated net worth, whichever is higher), or which is required to be reported in Form AOC – 2 in terms of section 134 (3)(h) read with Section 188 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.

All Related Party Transactions were placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee was obtained for the transactions, which were of a repetitive nature. The transactions entered into pursuant to the omnibus approval so granted, were reviewed and statements giving details of all related party transactions were placed before the Audit Committee on a quarterly basis. The policy on Related Party Transactions as approved by the Board can be accessed on the Company’s website at the link https:// www.reliancepower.co.in/documents/2181716/2364859/ Policy_for_Related_Party_Transaction-new.pdf

Your Directors draw attention of the members to Note no. 11 to the financial statement, which sets out related party disclosures pursuant to Ind-AS and Schedule V of Listing Regulations.

Material Changes and Commitments, if any, affecting the financial position of the Company

There were no material changes and commitments affecting the financial position of the Company which have occurred between the close of the financial year till the date of this Report.

Meetings of the Board

A calendar of Meetings is prepared and circulated in advance to the Directors. During the year four Board Meetings were held, details of meetings held and attended by each Director are given in the Corporate Governance Report.

Reliance Power Limited

Directors’ Report

Audit Committee

Audit Committee of the Board consists of Independent Directors namely Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma. During the year, all the recommendations made by the Audit Committee were accepted by the Board.

Auditors and Auditors’ Report

M/s. Pathak H.D. & Associates LLP, Chartered Accountants, who were appointed as statutory auditors of the Company to hold office for a term of 5 (five) consecutive years at the 22[nd] Annual General Meeting (AGM) of the Company held on September 27, 2016, would be completing their first term of appointment upon conclusion of the 27[th] AGM of the Company.

The Board, on recommendation of the Audit Committee, has proposed the re-appointment of M/s. Pathak H.D. & Associates LLP, Chartered Accountants as the Statutory auditors of the Company for another consecutive term of 5 (five) years until the conclusion of 32[nd] AGM of the Company, subject to approval of Members in ensuing AGM.

The Company has received letter from M/s. Pathak H.D. & Associates LLP, Chartered Accountants that they are not disqualified from continuing as the Auditors of the Company.

The Auditors in their report of Consolidated Financial Statements have given a qualified opinion vide para 1, 2 and 3 of their report. In this connection it is stated that, Vidarbha Industries Power Limited (VIPL) has submitted debt resolution plans on various occasions to its lenders and same is being pursued with the lenders. VIPL is confident of an early resolution including proposed waiver of outstanding interest to its lenders. In view of this, interest has not been provided and same shall be considered basis the outcome of debt resolution with its lenders. VIPL is hopeful of resolution of material uncertain events including the securitization of its regulatory receivables which would provide the necessary liquidity to make the debt service current and support sustainable plant operations going forward. VIPL is also hopeful of resolving NCLT application filed by one of the lender as VIPL is in discussion with its lenders for a resolution outside the Corporate Insolvency Resolution Process. Further, Sasan Power Limited and Dhursar Solar Power Private Limited have been legally advised that the clarification issued and observation inter-alia made, regarding method of estimating depreciation adopted for preparing standalone financial statements of the subsidiaries and for preparing consolidated financial statements by Ind AS Transition Facilitation Group of Ind AS Implementation Committee of the Institute of Chartered Accountants of India, will not be applicable to it, as the Company has been following different methods of depreciation in subsidiaries and in Consolidated Financial Statements since inception and as required by Ind AS 101 read with Ind AS 16 has continued the methods of providing depreciation even under Ind AS regime. The Parent Company accordingly continued to provide depreciation in its Consolidated Financial Statements by straight line method, which is different as compared to the written down value method considered appropriate by two of its subsidiaries.

The other observations and comments given by the Auditors in their report, read together with notes on financial statements are self explanatory and hence do not call for any further comments under section 134 of the Act.

No fraud has been reported by the Auditor to the Audit Committee or the Board.

Cost Auditors

Pursuant to the provisions of the Act and the Companies (Audit and Auditors) Rules, 2014, the Board of Directors have appointed M/s. V.J. Talati & Co., Cost Accountants, as the Cost Auditors in respect of its 45 MW Wind Farm Power Project at Vashpet, Dist. Sangli, Maharashtra, for the financial year ending March 31, 2022 subject to the remuneration being ratified by the shareholders at the ensuing AGM of the Company.

The Provisions of Section 148(1) of the Act are applicable to the Company and accordingly the Company has maintained cost accounts and records in respect of the applicable products for the year ended March 31, 2021.

Secretarial Standards

During the year under review, the Company has complied with the applicable Secretarial Standards issued by The Institute of Company Secretaries of India (ICSI).

Secretarial Audit & Secretarial Compliance Report

Pursuant to the provisions of Section 204 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors had appointed M/s. Ajay Kumar & Co., Company Secretaries in Practice, to undertake the Secretarial Audit of the Company. There is no qualification, reservation or adverse remark made by the Secretarial Auditor in the Secretarial Audit Report for the financial year ended March 31, 2021. The Audit Report of the Secretarial Auditors of the Company and its material subsidiaries for the financial year ended March 31, 2021 are attached hereto as Annexure A, A1and A2.

Pursuant to Regulation 24A of the Listing Regulations, the Company has obtained Annual Secretarial Compliance Report from a Practicing Company Secretary on compliance of all applicable SEBI Regulations and circulars/ guidelines issued there under and copy of the same were submitted to the Stock Exchanges within the prescribed due date.

Annual Return

As required under Section 134(3)(a) of the Act, the Annual Return for the financial year 2020-21 is uploaded on the Company’s website and can be accessed at http:// www. reliancepower.co.in.

Particulars of Employees and Related Disclosures

In terms of the provisions of Section 197(12) of the Act read with Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said Rules are provided in the Annual Report, which forms part of this report.

Disclosures relating to the remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, also form part of this Annual Report.

However, having regard to the provisions of second proviso to Section 136(1) of the Act, the Annual Report excluding the aforesaid information, is being sent to all the members of the Company and others entitled thereto. The said information is open for inspection and any member interested in obtaining the same may write to the Company Secretary and will be furnished on request.

Reliance Power Limited

Directors’ Report

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The particulars as required to be disclosed in terms of Section 134(3)(m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, are given in Annexure – B forming part of this Report.

Corporate Governance

The Company has adopted ‘Reliance Group-Corporate Governance Policies and Code of Conduct’, which sets out the systems, processes and policies conforming to the international standards. The report on Corporate Governance as stipulated under Regulation 34(3) read with para C of Schedule V of the Listing Regulations is presented in a separate section forming part of this Annual Report.

A certificate from the Practicing Company Secretaries M/s. Ajay Kumar & Co., conforming compliance to the conditions of Corporate Governance as stipulated under Para E of Schedule V to the Listing Regulations is enclosed to this Report.

Whistle Blower (Vigil Mechanism)

In accordance with Section 177 of the Act and the Listing Regulations, the Company has formulated a Vigil Mechanism to address the genuine concerns, if any, of the Directors and employees, the policy has been overseen by the Audit Committee. The details of the same have been stated in the Report on Corporate Governance and the policy can also be accessed on the Company’s website http://www. reliancepower.co.in.

Risk Management

The Company continues to have a robust Business Risk Management framework to identify, evaluate business risks and opportunities. The Risk Management Committee (RMC) comprises of Directors and senior managerial personnel.

This framework aims at transparency to minimize the adverse impact, if any, on the business objectives and enhances the Company’s competitive advantage. The business risk framework defines the risk management approach including documentation and reporting at various levels across the enterprise. The framework has different risk models which help in identifying risk, trends, exposure and potential impact analysis at each business segment as well as Company level. The risks are assessed for each project and mitigation measures are initiated both at the project as well as the corporate level. More details on Risk Management indicating development and implementation of Risk Management policy including identification of elements of risk and their mitigation are covered in Management Discussion and Analysis section, which forms part of this Report.

The details of the RMC and its terms of reference etc. are set out in the Corporate Governance Report forming part of this Report.

Compliance with provisions of Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company is committed to protect and maintain the dignity of women employees and it has in place a policy for the prevention and redressal of such complaints to ensure the protection against Sexual Harassment of Women at workplace. During the year under review, no such complaint was received. The Company has also constituted an Internal Compliance Committee under the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013.

Corporate Social Responsibility

The Company has constituted Corporate Social Responsibility (CSR) Committee in compliance with the Section 135 of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The CSR Committee has formulated a Corporate Social Responsibility Policy (CSR policy) indicating the activities to be undertaken by the Company.

The CSR policy may be accessed on the Company’s website at the link https://www.reliancepower.co.in/ documents/2181716/2359750/CSR_Policy.pdf

As on March 31, 2021, the CSR Committee of the Board consist of Shri Bimal Julka, as Chairperson, Smt Chhaya Virani, Shri Vijay Kumar Sharma and Shri K Raja Gopal, Directors as members.

The disclosures with respect to CSR activities forming part of this report is given as Annexure - C .

Orders, if any, passed by Regulators or Courts or Tribunals

No orders have been passed by the Regulators or Courts or Tribunals which impact the going concern status of the Company and its operations.

Internal Financial Controls and their adequacy

The Company has in place adequate internal financial controls with reference to financial statement across the organisation. The same is subject to review periodically by the internal audit cell for its effectiveness. During the financial year, such controls were tested and no reportable material weaknesses in the design or operations were observed. The Statutory Auditors of the Company also test the effectiveness of Internal Financial Controls in accordance with the requisite standards prescribed by ICAI. Their expressed opinion forms part of the Independent Auditor’s report.

Business Responsibility Report

Business Responsibility Report for the year under review as stipulated under Listing Regulations is presented in a separate section forming part of this Annual Report.

General

During the year under review there were no reportable events in relation to issue of equity shares with differential rights as to dividend, voting or otherwise, issue of sweat equity shares to its Directors or Employees, proceedings pending under the Insolvency and Bankruptcy Code, 2016 and one-time settlement with any Bank or Financial Institution.

Acknowledgements

Your Directors would like to express their sincere appreciation for the cooperation and assistance received from shareholders, debenture holders, debenture trustee, bankers, financial institutions, regulatory bodies and other business constituents during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the commitment displayed by all executives, officers and staff.

For and on behalf of the Board of Directors Anil Dhirubhai Ambani Chairman Mumbai May 07, 2021

Reliance Power Limited

Annexure A

Directors’ Report

FORM No. MR- 3

SECRETARIAL AUDIT REPoRT

FoR THE FINANCIAL YEAR ENDED oN 31ST MARCH, 2021

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,

The Members, Reliance Power Limited Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400001

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Reliance Power Limited (hereinafter called the company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, I hereby report that in my opinion, the company has, during the audit period from 1[st] April, 2020 to 31[st] March, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Boardprocesses and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the period ended on 31[st] March, 2021 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (“SCRA”)and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings to the extent of applicability to the company;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;(Not applicable during the audit period)
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;(Not applicable during the audit period)
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable during the audit period)
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not applicable during the audit period) and
(i) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
(vi) Other laws specifically applicable to the Company
(a) The Electricity Act, 2003 and the rules made thereunder

Reliance Power Limited

Directors’ Report

I have also examined compliances with the applicable clauses of the Secretarial Standards issued by The Institute of Company Secretaries of India.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

I further report that

(i) The Board of Directors of the Company is duly constituted with proper balance of Executive Director, Non-Executive Directors, Woman Director and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.
(ii) Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation of the directors at the meetings.
(iii) All decisions at board meetings and committee meetings are carried out unanimously as recorded in the minutes of meetings of Board of Directors or the committees of the board, as the case may be.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the audit period the company has:

(i) Mr. Ravikumar Krishnasamy has completed his term as an Independent Director w.e.f. 25.09.2020.
(ii) Mr. Darius Jehangir Kakalia has completed his term as an Independent Director w.e.f. 25.09.2020.
(iii) Ms. Rashna Hoshang Khan completed her term as an Independent Director w.e.f. 25.09.2020.
(iv) Mr. Bimal Julka appointed as an Additional Independent Director of the company w.e.f. 26.09.2020 by passing Circular Resolution dated 26.09.2020.
(v) Mr. Vijay Kumar Sharma appointed as an Additional Independent Director of the Company w.e.f. 26.09.2020 by passing Circular Resolution dated 26.09.2020.
(vi) Ms. Chhaya Virani appointed as an Additional Independent Director of the Company w.e.f. 26.09.2020 by passing Circular Resolution dated 26.09.2020.
(vii) The company has restructured the terms of Series III (2017) Secured, Listed, Rated, Redeemable Non-convertible debentures (NCD). The NCD holder approved the said modification of terms w.e.f. 30.06.2020.

Signature (Ajay Kumar) Ajay Kumar & Co. FCS No. 3399 C.P. No. 2944 UDIN: F003399C000254661

Date : May 07, 2021 Place: Mumbai

Reliance Power Limited

Annexure A1

Directors’ Report

FORM NO. MR- 3

SECRETARIAL AUDIT REPORT

FOR THE PERIOD ENDED 31ST MARCH, 2021

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 09 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, The Members Sasan Power Limited Reliance Center, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400001

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Sasan Power Limited. (hereinafter called the company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period from 1st April, 2020 to 31st March, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March, 2021 according to the provisions of:

i) The Companies Act, 2013 (the Act) and the rules made thereunder;
ii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
iii) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings to the extent of their applicability to the Company;
iv) OTHER LAWS SPECIFICALLY APPLICABLE TO THE COMPANY
The Mines Act, 1952 and the rules & regulations made thereunder;
The Mines and Minerals(Development and Regulation) Act, 1957 and the rules & regulations made thereunder;
The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 and The Coal Mines Pension Scheme, 1998;
The Electricity Act, 2003 and the rules & regulations made thereunder;
The Explosives Act, 1884 and The Gas Cylinder Rules, 2004 ; The Explosives Rules, 2008;
The Indian Boilers Act, 1923 and The Indian Boilers Regulation, 1950;
The Petroleum Act, 1934 and The Petroleum Rules, 2002.

I have also examined compliance with the applicable clauses of the Secretarial Standards issued by the Institute of Company Secretaries of India.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

I further report that:

i) The Board of Directors of the Company is duly constituted with proper balance of Non-Executive Directors and Independent Directors. The Company did not have any Executive Director during the Audit Period. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.
ii) Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation of the directors at the meetings.

Reliance Power Limited

Directors’ Report

iii) All decisions at Board Meetings & Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or the Committees of the Board, as the case may be.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the audit period:
i) Mr. Ashok Karnavat has been re-appointed as Independent Director for the further term of 3 years by passing Special Resolution in the Annual General Meeting held on 22.06.2020.
ii) Ms. Rashna Khan resigned as Director of the company w.e.f. 14.10.2020.
iii) Ms. Chhaya Virani has been appointed as Additional Independent Director of the Company w.e.f. 14.10.2020 by passing Circular Resolution dated 14.10.2020.
iv) Mr. Umesh Kumar Agrawal was appointed as Additional Director of the Company in the Board Meeting held on 13.11.2019 and such appointment was regularized by passing Ordinary Resolution in the Annual General Meeting held on 22.06.2020.
v) The company has shifted its registered office from H Block, 1[st] Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai 400710 to Ground Floor, Reliance Centre, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400 001 i.e. within the local limits by passing Resolution by Circulation w.e.f. 06.01.2021.

Signature (Ajay Kumar) Ajay Kumar & Co. FCS No. 3399 C.P. No. 2944 UDIN:F003399C000253154

Date: May 06, 2021 Place: Mumbai

Reliance Power Limited

Directors’ Report

Annexure A2

Form No. MR-3

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31 MARCH, 2021

[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 09 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

The Members, Rosa Power Supply Company Limited Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400001 Maharashtra, India.

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by M/s Rosa Power Supply Company Limited (hereinafter called “the company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/ statutory compliances and expressing our opinion thereon.

Based on our verification of the Rosa Power Supply Company Limited’s books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the company has, during the audit period covering the financial year ended on 31 March,2021, the company has complied with the statutory provisions listed hereunder and also that the Company has proper Board–processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by Rosa Power Supply Company Limited (“the Company”) for the financial year ended on 31 March,2021 according to the provisions of:-

The Companies Act, 2013 (the Act) and the rules made thereunder;
The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder- N.A.;
The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder- to the extent of its applicability;
Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings- to the extent of its applicability;
The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’)N.A.:-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with the client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulation, 2009; and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;
Other laws specifically applicable to the company:-
(a) The Electricity Act, 2003 and the rules & regulations made thereunder;
(b) Energy Conservation Act, 2001 and the rules & regulations made thereunder;
Other laws applicable to the company:-

The adequate systems and processes are in place to monitor and ensure compliance with general laws like labour laws, environmental laws etc. to the extent of their applicability to the Company.

Reliance Power Limited

Directors’ Report

We have also examined compliance with the applicable clauses of the Secretarial Standards issue by the Institute of Company Secretaries of India.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned.

We further report that , the Board of Directors of the Company is duly constituted with proper balance of Non-Executive Directors and Independent Directors. There was change in the composition of the Board of Directors in accordance to the provisions of Companies Act, 2013 and rules and regulations made thereunder during the period under review.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, there are instances of holding meetings at shorter notice(s) with the consent of the Board of Directors of the Company and system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

All decisions at Board Meetings & Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or the Committees of the Board, as the case may be.

We further report that , there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliances with applicable laws, rules, regulations and guidelines.

We further report that , during the audit period No Special Resolution were passed.

We further report that , during the audit period Circular Resolutions were passed.

Date: May 06, 2021 Place: Thane

For Ashita Kaul & Associates Company Secretaries Proprietor FCS 6988/ CP 6529 UDIN: F006988C000249901

Note: We have conducted online verification & examination of records as facilitated by the Company officer’s, due to Covid-19 and subsequent lockdown situation for the purpose of issuing this Report.

ANNEXURE TO SECRETARIAL AUDIT REPORT ISSUED BY COMPANY SECRETARY IN PRACTICE

To The Members, Rosa Power Supply Company Limited Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400001 Maharashtra, India.

Our report of even date is to be read along with this letter.

Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.
The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

Signature For Ashita Kaul & Associates Practising Company Secretary Membership No. 6988 Certificate of Practice No. 6529 UDIN: F006988C000249901

Date: May 06, 2021 Place: Thane

Reliance Power Limited

Annexure B

Directors’ Report

Disclosure under Section 134(3)(m) of the Act, read with Rule 8 of the Companies (Accounts) Rules, 2014

A. Conservation of energy

i. The steps taken or impact on conservation of energy
The Company has specified the energy consumption standards for the equipments to monitor the overall energy efficiency.
All the wastage at Reliance Centre such as hazardous wastes, electronic wastes are recycled through authorised recyclers.
ii. The steps taken by the Company for utilizing alternate sources of energy
The Company has a Wind Farm with 45 MW capacity, located at Vashpet in District Sangli, Maharashtra. Since the project uses the renewable wind energy towards generation of electricity, no other alternative sources of energy was required to be explored.
iii. The capital investment on energy conservation equipments
No additional investment was made for the above purpose.

B. Technology absorption

i. The efforts made towards technology absorption: None
ii. The benefits derived like product improvement, cost reduction, product development or import substitution: N.A.
iii. In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): N.A.
Wind Turbines installed as part of the wind farm are sourced from an Indian entity which in-turn sourced critical components from overseas locations, mainly Europe. No efforts were required to be made to absorb the technology.
iv. The expenditure incurred on Research and Development: No cost was incurred towards Research and Development.

C. Foreign Exchange earnings and outgo

Total Foreign Exchange earnings : Nil

Total Foreign Exchange outgo : ` 3 lakhs

Reliance Power Limited

Directors’ Report

Annexure C

Annual Report on Corporate Social Responsibility (CSR) activities for the Financial Year 2020-21

1. Brief outline on CSR Policy of the Company.

The Company has a robust CSR Policy at the group level. The Company as a responsible corporate entity endeavours to transform lives to help build more capable and vibrant communities by integrating CSR with its business values and strengths. Based on its guiding philosophy, the Company has formulated on a consolidated basis, a policy for social development with a thrust in the areas of healthcare, education, sanitation, environment sustainability and rural transformation.
Committed to transform and nurture the ecosphere through its flagship programme in the healthcare segment, the Company has been focusing on setting up oncology centres for cancer treatment in Maharashtra.

2. Composition of CSR Committee:

Sl. No.	Name of Director	Designation/ Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1	Shri Bimal Julka	Chairperson (Independent Director)	1	1
2	Smt Chhaya Virani	Member (Independent Director)	1	1
3	Shri VijayKumar Sharma	Member (Independent Director)	1	1
4	Shri K Raja Gopal	Member, (Whole-time Director)	1	0

Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company.

https://www.reliancepower.co.in/documents/2181716/2359750/CSR_Policy.pdf

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).

Not Applicable

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any

|Sl. No.|Financial Year|Amount available for set-off from
preceding fnancial years (in**)**|**Amount required to be set- off for** **the fnancial year, if any (in**)|
|---|---|---|---|
|Not Applicable
||||

Average net profit of the company as per section 135(5) : ` (33,252) lakhs

7. (a) Two percent of average net profit of the company as per section 135(5) : Not Applicable

(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years : Not Applicable
(c) Amount required to be set off for the financial year, if any : Not Applicable
(d) Total CSR obligation for the financial year (7a + 7b + 7c) : Nil

(a) CSR amount spent or unspent for the financial year:

|Total Amount Spent for the
Financial Year (in**)** Nil|**Amount Unspent (in**)|Amount Unspent (in**)**|**Amount Unspent (in**)|Amount Unspent (in**)**|**Amount Unspent (in**)|
|---|---|---|---|---|---|
||Total
Amount
transferred
to
Unspent CSR Account as per
section 135(6).||Amount transferred to any fund specifed under
Schedule VII as per second proviso to section
135(5)|||
||Amount|Date of
transfer|Name of the
Fund|Amount.|Date of
transfer|
||Nil|-|-|Nil|-|

(b) Details of CSR amount spent against ongoing projects for the financial year:

|Sl.
No.|Name
of the
Project|Item from
the list of
activities
inSchedule
VII to the
Act|Local
area
(Yes/
No)|Location of the
project|Location of the
project|Project
duration|Amount
allocated
for the
project
(in**)**|**Amount** **spent** **in the** **current** **fnancial** **Year** **(in**)|Amount
transferred to
Unspent CSR
Account for
the project as
per Section
135(6) (in`)|
Mode of
Implementation -
Direct (Yes/No)|Mode of
Implementation –
Through Implementing
Agency|Mode of
Implementation –
Through Implementing
Agency|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||State|District||||||Name|CSR
Registration
number|
|||||Not Applicable|||||||||

Reliance Power Limited

Directors’ Report

(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:	(c) Details of CSR amount spent against other than ongoing projects for the fnancial year:
Sl. No.	Name of the Project			Item from the list of activities in schedule VII to the Act		Local area (Yes/ No)		Location of the project				Amount spent for the project (in`)			Mode of implementation - Direct (Yes/No)		Mode of implementation – Through implementing agency
								State		District							Name		CSR Registration number
								Not Applicable
(d) Amount spent in Administrative Overheads: Not Applicable (e) Amount spent on Impact Assessment, if applicable: Not Applicable (f) Total amount spent for the Financial Year (8b+8c+8d+8e): Not Applicable (g) Excess amount for set off, if any
Sl. No.			Particular															Amount (in Rs.)
(i)			Twopercent ofaverage netproft ofthe companyasper section 135(5)															Not Applicable
(ii)			Total amount spent for the Financial Year
(iii)			Excess amount spentfor thefnancialyear[(ii)-(i)]
(iv)			Surplus arising out of the CSR projects or programmes or activities of the previous fnancial years, if any
(v)			Amount availablefor set offin succeeding fnancialyears [(iii)-(iv)]
(a) Details of Unspent CSR amount for the preceding three fnancial years:
Sl. No.		Preceding Financial Year			Amount transferred to Unspent CSR Account under section 135 (6) (in`)\|\|\|\|Amount spent<br>in the<br>reporting<br>Financial Year<br>(in`)				Amount transferred to any fund specifed under Schedule VII as per section 135(6), if any						Amount remaining to be spent in succeeding fnancial years (in`)
													Name of the Fund		Amount (in`)	Date of transfer
Not Applicable
(b) Details of CSR amount spent in the fnancial year for ongoing projects of the preceding fnancial year(s):
Sl. No.		Project ID			Name of the Project		Financial Year in which the project was commenced				Project duration			Total amount allocated for the project (in`)\|Amount<br>spent on the<br>project in<br>the reporting<br>Financial<br>Year (in`)		Cumulative amount spent at the end of reporting Financial Year(in`)			Status of the project- Completed /Ongoing
Not Applicable

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details).

(a) Date of creation or acquisition of the capital asset(s) : None
(b) Amount of CSR spent for creation or acquisition of capital asset : Nil
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc : Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset) : Not Applicable

11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):

There are no average net profits for the Company during the previous three financial years, hence, no funds were set aside and spent by the Company towards CSR during the year under review.

K. Raja Gopal Bimal Julka Whole-time Director Chairperson

May 07, 2021

Reliance Power Limited

Management Discussion and Analysis

Forward looking statements

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Company’s objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company’s operations include availability and cost of fuel, determination of tariff and such other charges and levies by the regulatory authority, changes in Government regulations, tax laws, economic developments and such other factors.

The financial statements of the Company have been prepared in accordance with the provisions of the Companies Act, 2013 (the Act) and comply with the Companies (Indian Accounting Standards) (Ind AS) Rules, 2015, which have been notified by the Central Government on February 16, 2015. The Management of Reliance Power Limited (“Reliance Power” or “the Company”) has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs and profit/(loss) for the year.

The following discussions on our financial condition and results of operations should be read together with our audited consolidated financial statements and the notes to these statements included in the Annual Report.

Unless otherwise specified or the context otherwise requires, all references herein to “we”, “us”, “our”, “the Company”, “Reliance” or “Reliance Power” are to Reliance Power Limited and/or its subsidiary companies.

Indian Power Sector

Government has been taking several initiatives to address the challenges faced by the power sector including implementation of measures proposed by High Level Empowered Committee (HLEC) to address the issues of stressed thermal power projects; Market-based Economic Dispatch (MBED) to move towards a “One Nation, One Grid, One frequency, One Price” framework with a view to achieve optimal scheduling and dispatch of generating stations and to achieve system cost savings; Electricity Amendment Bill 2021 aimed at giving a choice of supplier to consumers; privatization of Distribution Companies (DISCOMs) in Union Territories; and revamped reforms-based result-linked power distribution sector scheme to support DISCOMs for Infrastructure creation including pre-paid smart metering, feeder separation, upgradation of systems, etc., tied to financial improvements. Besides, it continues to focus on renewable energy (RE) having set an ambitious target of 450 GW RE capacity by 2030. While these measures are expected to benefit the sector in the long term, their effective implementation holds the key.

Against the backdrop of COVID-19 pandemic in 2020-21, the Indian power sector has been characterized by:

Less than targeted addition to installed generation capacity;
Decline in demand during the lockdown period in the first wave of pandemic; followed by demand pick up in the second half of the year;
Reduction in generation capacity utilization (Plant Load Factors- PLFs) and power generation;
Narrowing of energy and peaking deficits;
Increase in power purchase from power exchanges;
Continued efforts towards resolution of stressed generation assets in the private sector;
Continued challenges facing Discoms:
Ø high level of Aggregate Technical and Commercial losses (AT & C Losses);
Ø Cost and Tariff rate gap (ACS – ARR); and Ø continued financial stress and liquidity challenges.

The economic disruption caused by the COVID-19 pandemic has added to the challenges facing the power sector. There was a sharp decline in economic activities due to lockdown announced by the Government to contain the outbreak of COVID-19 during the first half of 2020-21. On the one hand, electricity demand fell considerably, primarily from revenue generating customers, i.e., industrial and commercial users, and on the other hand, the collection efficiency also suffered, with DISCOMs allowing deferred payments to their customers, and also on account of their inability to gather meter readings and generate bills due to conventional meters being used for the majority of connections. The overall energy requirement contracted by 1.2% vis-à-vis demand in FY 2019-20.

As a consequence, revenue loss and average lower realisation by DISCOMs led to Generation and Transmission companies struggling to collect their receivables from DISCOMs to sustain their levels of operations. Recognizing the challenges faced by DISCOMs, Ministry of Power (MoP) initiated several measures like reduction of late payment surcharge (LPS) and reduction of 50% in the Letter of Credit mechanism required to be maintained by the DISCOMs when scheduling power.

Government of India provided much needed support by announcing special economic package of 90,000 crore funded by PFC and REC to cover the payables of DISCOMs, which was subsequently enhanced to 1,35,000 crore. Liquidity infusion through this package benefitted the entire electricity value chain as Generation and Transmission companies realized long pending dues from DISCOMs which helped them sustain their operations. Total amount of loan sanctioned under the scheme was 1,35,000 crore, which was supposed to be disbursed in two tranches. Total disbursement went up to 75,000 crore till March 2021 end, while balance is expected to be disbursed within next few months.

Further, Reserve Bank of India (RBI) allowed banks to grant moratorium period for all principal and interest payments and permitted to defer recovery of interest applied on working capital facilities during the six month period of 1st March, 2020 to 31st August 2020. In order to provide relief to generating companies to meet liquidity challenges, Coal India Limited allowed the facility of usance letter of credit for payment of coal.

Reliance Power Limited

Management Discussion and Analysis

Demand and supply outlook

On the demand side India’s per capita power consumption is at ~1208 kWh/year (as on March, 2020), which is about onethird of the world’s average ~3500 kWh/year consumption. Growing population along with increasing electrification and per-capita usage, and expansion in economic activities are expected to drive growth in power consumption.

In FY 2020-21, peak power demand growth moderated to 3.5 percent whereas in energy terms there was a contraction by -1.2 percent. With the industrial and commercial sector together accounting for nearly 50% of the country’s electricity consumption, a decline in their consumption had negatively impacted the overall demand. With gradual and calibrated resumption of economic activity, the electricity demand has shown signs of revival in these segments.

Although there has been an year-on-year increase in installed power generation capacity (382 GW in FY21 vis-a-vis 370 GW in FY20), it falls well short of the set target.

There has been a progressive shift towards renewable sources (mainly wind & solar). In the last 5 years, the share of renewable energy in the installed capacity has increased from ~14% (~39 GW in March 2015) to ~25% (~94.5 GW in March 2021).

Low demand scenario, especially in the first half of the year, impacted performance of thermal power stations as the PLF stood at 53.4% for FY 2020-21.

Key risks and concerns

Power sector is a highly capital intensive business with long gestation periods before commencement of revenue streams, especially for projects using conventional technology. Coal-based power projects have average development and construction period of 7 to 8 years and an even longer operating period (over 25 years). Since most of the projects have such a long time frame, there are certain inherent risks in both, internal and external environment. The Company monitors the external environment and manages its internal environment to mitigate the risks / concerns on a continuous basis. Some of the key areas that need continuous monitoring within the sector are:

a) Weak financial condition of electricity distribution Companies

The financial health of electricity DISCOMs is an area of key concern threatening the very viability of the power sector. DISCOMs are the weakest link in the electricity supply chain and have been suffering on account of operational inefficiencies; inadequate investments in distribution network as well as lack of timely and adequate tariff revisions to help recover costs.

Recognizing the difficulties faced by the DISCOMs, the Government has implemented a set of comprehensive measures under UDAY (Ujwal DISCOM Assurance Yojana) to help distribution utilities achieve operational and financial turnaround. UDAY scheme was targeted to lower AT&C losses, reduce gap between ACS and ARR (Cost and Tariff rate) and improve operational efficiency of DISCOMs. Additionally, efforts from Energy Efficiency Services (EESL) to replace conventional meters with smart meters are targeted at improving billing efficiency, leading to higher revenue realisation by DISCOMs. With

experience gained from implementation of UDAY scheme, Government is now working on rolling out a revamped reforms-based result-linked power distribution sector scheme to support DISCOMs.

Additional measures, such as privatisation of DISCOMs in union territories; and amendment to Electricity Act to give consumer a choice of supplier, when implemented effectively, are likely to positively impact the sector in the long run.

The turnaround of DISCOMs will help generating companies in mitigating counterparty risks both in terms of payment security and increased demand for power.

b) Power Demand and Plant Load Factor (PLF) of Thermal Power Plants

Power demand in India has grown at a CAGR of more than 4.4 percent in last 5 years. Growth in electricity demand has been met by rapid capacity addition of thermal projects in the earlier years. However, quick addition of renewable capacity in the last few years and lower than envisaged growth in demand for electricity, has led to lower PLF of thermal power plants. PLF of coal fired thermal power plants stood at 53.4% for FY 2020-21. However, the thermal power plants would continue to remain the mainstay for meeting the base load requirements considering the intermittent nature of supply from renewable sources.

c) Gas - Continuing supply deficit

Viability of existing as well as newly developed gas-based power plants, aggregating to nearly 24 GW capacity, is adversely impacted due to lack of adequate domestic gas supply in the country. This industry-wide issue, which has led to practically entire gas-based capacity in the country getting stranded, continues to await a long-term resolution.

d) Norms

Implementation of New Environment (Protection)

With notification of the Environment (Protection) Amendment Rules, 2015, all coal-based power plants are required to meet the revised emission standards within the stipulated period. Further, Ministry of Environment, Forest & Climate Change has notified the Environment (Protection) Amendment Rules, 2021 whereby thermal power plants are classified into three categories and are required to comply with the emission norms as per the specified timelines for each category.

For complying with the new environment norms, the developers would need to undertake additional capital expenditure (CAPEX). In order to facilitate the smooth implementation of the same, the Ministry of Power (MOP), vide its letter dated May 30, 2018, has issued directions to the CERC and other State regulators (SERCs) to consider the revised emission standards as Change in Law (CIL) and accordingly devise an appropriate regulatory mechanism to address the impact on tariff. In the present sector context, banks and financial institutions are not forthcoming to finance the additional capital expenditure arising from implementation of CAPEX to meet new environment norms. Certainty in cost recovery

Reliance Power Limited

Management Discussion and Analysis

on account of additional capital and operational costs, under concluded long-term and medium-term PPAs, is critical to securing financing for timely completion of additional capital expenditure.

Reliance Power’s operating project portfolio is well diversified in terms of location, fuel source and off-takers. Projects’ key differentiators help mitigate sectoral challenges highlighted above.

Sasan Ultra Mega Power Project, developed by Sasan Power Ltd., is the most competitive thermal power supplier for all its procurers; has a long-term Power Purchase Agreement (PPA) in place and a strong payment security mechanism mitigating risks relating to demand and weak financial condition of distribution companies. Further, it has a captive coal mine, which provides complete fuel security. During FY 2020-21, Sasan recorded a Plant Load Factor (PLF) of 96.25%, which is the highest PLF in the country, a distinction achieved for the third successive year. Rosa Power Project, developed by Rosa Power Supply Company Ltd., operates under a costplus business model wherein tariffs are determined by the State Regulator under Section 62 of Electricity Act. Rosa Power too has a long-term PPA in place and has a three-tier payment security mechanism mitigating demand & payment related risks. Rosa has always achieved higher fuel supply materialisation and has recorded consistently high plant availability, with FY 2020-21 witnessing a plant availability of 91%.

Sasan Power and Rosa Power have been working in right earnest towards implementation of projects to comply with new environmental norms.

Your Company’s renewable portfolio is fully contracted in terms of power offtake, thus mitigating demand risk and has suitable payment security mechanisms in place.

As brought out above, your Company’s operating project portfolio is significantly insulated from sector specific risks.

Internal Financial Control and Systems

The Company has put in place internal control systems and processes which are commensurate with its size and scale of its operations. The system has control processes designed to take care of various control and audit requirements. The Company has a robust Internal Audit function which oversees the implementation and adherence to various systems and processes. The internal audit function reviews and ensures the sustained effectiveness of Internal Financial Controls designed by the Company. The internal audit team is supported by the reputed audit firms to undertake the exercise of Internal Audit at various project locations. The report of the Internal Auditors is placed at the Audit Committee of the Board and the improvements in systems and processes are carried out where necessary.

Risk Management Framework

The Company has also put in place a Risk Management Framework, both at the corporate as well as at the project level, which provides a process of identifying, assessing, monitoring, reporting and mitigating various risks at all levels, at periodic intervals. The Risk Management process is supervised by the Risk Management Committee of the Board.

The said Committee has been continued having regard to its usefulness although it is not a mandatory requirement pursuant to the Listing Regulations. The Committee undertakes a review of the risks as well as the status of the mitigation plans.

Discussion on Operations of the Company

The Company is in the business of setting up and operating power projects and development of coal mines associated with such projects. The Company has built a portfolio of power projects and coal mines. Of the power projects in its portfolio, the projects aggregating to ~ 5945 MW are operational while the other power projects are under various stages of development.

a) Sasan Ultra Mega Power Project, 3,960 MW pithead coal-based Project in Madhya Pradesh

The 3,960 MW Sasan Ultra Mega Power Project (the Sasan UMPP), the world’s largest integrated power plant cum coal mine continued to deliver best operating performance among the peers, with a generation of ~33,388 million units at the highest ever PLF of ~96.25%, which is the highest in the country, a distinction achieved for the third successive year in its operational history of six years of full operations. Coal production from its captive coal mines was 18.57 Million Metric Tons during the year, which is the highest among the private sector players in India. Including the overburden handled at 72.2 Million BCM, total volume handled at Sasan Coal Mine during the year is 84.57 Million BCM, making it the largest coal mine in the Country in terms of the volume handled. The power generated from the Sasan UMPP is sold to 14 DISCOMs across 7 States under a 25 year long-term PPA.

b) Rosa, 1,200 MW coal-based power project in Uttar Pradesh

Rosa power plant completed another year with excellent operational and financial performance. In its 9[th] year of full operations, the plant generated 6751 MUs of electricity. The entire electricity generated from the project is sold to the State of Uttar Pradesh under a cost-plus regulated PPA.

c) Butibori, 600 MW coal-based power project in Maharashtra

The 600 MW Butibori power plant in Nagpur, Maharashtra was not operational during the year due to protracted delays in issuance of legal/regulatory orders; lack of fuel supply for one of the units and commercial dispute with the power procurer.

d) Vashpet, 45 MW wind farm in Maharashtra

The Company has set up a 45 MW Wind Farm in Sangli District of Maharashtra. During FY 2020-21, the project generated 63.76 MUs of electricity.

e) Dhursar, 40 MW Solar Photovoltaic (PV) power project in Rajasthan

Dhursar Solar Power Private Limited (DSPPL) has set up a 40 MW Solar PV Plant in Jaisalmer district of Rajasthan. Electricity from this project is sold under a PPA for a period of 25 years. During FY 2020-21, the project generated 59.76 MUs of electricity.

Reliance Power Limited

Management Discussion and Analysis

f) 100 MW Solar CSP in Rajasthan

Rajasthan Sun Technique Energy Private Limited (RSTEPL), a wholly-owned subsidiary, has commissioned the 100 MW Concentrated Solar Power Project (CSP) in Jaisalmer, Rajasthan. During FY 2020-21, project generated 77.63 MUs of electricity.
g) Krishnapatnam Ultra Mega Power Project (the Krishnapatnam UMPP), 3,960 MW imported coalbased Project in Andhra Pradesh
Coastal Andhra Power Limited (CAPL), a wholly owned subsidiary of the Company is responsible for development of imported coal-based Krishnapatnam UMPP. The Project has been facing viability challenges consequent upon changes in the regulations in Indonesia from where coal was intended to be imported for the Project. As the issue could not be resolved through mutual discussions with Procurers and Procurers issued a notice of PPA termination & demanded liquidated damages, the Company sought to initiate arbitration and approached Hon’ble Delhi High Court (March 2012). Following the order by Division Bench of Hon’ble Delhi High Court (January 2019), the Procurers encashed the bank guarantees available with them and recovered ` 300 Crore as the liquidated damages. In accordance with the direction of the Hon’ble Delhi High Court, CAPL filed a petition in CERC. Pursuant to provisions of Share Purchase Agreement for acquisition of CAPL, the Company has approached Power Finance Corporation, the nodal agency which facilitated international competitive bidding for Krishnapatnam UMPP, for buyback of CAPL. Currently, key legal matters pertaining to CAPL, which are pending before the courts are: (i) Buyback of CAPL - Hon’ble Delhi High Court; and (ii) Resumption of CAPL land - Hon’ble High Court of Andhra Pradesh at Amaravati.

h) 3,960 MW coal-based power project in Madhya Pradesh

Chitrangi Power Private Limited (CPPL), a wholly owned subsidiary of the Company, had taken up development of a 3960 MW coal-based power project in Madhya Pradesh. In view of the current power sector scenario, especially the demand-supply outlook, implementation of this project has been kept in abeyance.

i) Samalkot Power Project (SMPL)

The Parent Company had entered into a Memorandum of Understanding (MOU) with the Government of Bangladesh (GoB) 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), subsidiary of the Parent Company had taken steps to conclude a long-term 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 (Phase-1). The project agreements (comprising Power Purchase Agreement, Land Lease Agreement, Gas Supply Agreement and Implementation Agreement) were signed on 2[nd] September 2019.

Parent Company also concluded agreements with JERA Power International (Netherlands) - a subsidiary of JERA Co. Inc. (Japan) to invest 49% equity in RBLPL on 2[nd] September 2019. JERA owns/ has domestic investments in 27 power projects with ~70 GW of generating capacity in Japan and nearly 9 GW of generating capacity overseas (including projects under development). JERA also has a

large portfolio of 11 LNG terminals and 20 LNG carriers. SMPL has signed an Equipment Supply Contract on 11[th] March 2020 to sell one module for development of the Phase-1 project in Bangladesh. The export of the module is currently in progress and proceeds from equipment supply are being used to pare the debt from EXIM Bank of United States.

j) Hydroelectric Power Projects

The Company is developing various hydroelectric power projects, aggregating to 3438 MW capacity, located in Arunachal Pradesh, Himachal Pradesh and Uttarakhand. These projects are in different stages of development. Hydroelectric power projects by nature have long gestation periods and require clearances from various authorities before commencement of construction activities. Some of these projects have achieved significant development milestones. However, given the current power sector scenario, expected tariffs of hydro projects and consequent reluctance of DISCOMs to enter into long-term PPAs for hydro power, the development efforts on these projects have been kept in abeyance.

k) Coal Mines

The Company has been allocated coal mines in India along with the UMPP. The Moher and Moher Amlohri Extension coal block, a captive coal block allocated to Sasan Power Limited (SPL), is fully operational.

During the year 2015-16, the Government of India cancelled the allocation of Chhatrasal Coal Block to SPL and restricted annual coal production from Moher and Moher Amlohri Extension coal mine to 16 Million Metric Tonnes per annum. The Company has challenged the above directions of the Ministry of Coal (MoC) in Hon’ble High Court of Delhi by way of a Writ Petition, which is pending. Based on representations of SPL and recommendations made by the Inter Ministerial Committee (IMC), MoC has been relaxing the restriction on an annual basis, which ensures complete fuel security for Sasan UMPP.

The Company also has coal mine concessions in Indonesia.

l) Coal Bed Methane (CBM) Blocks

The Company has stakes in four Coal Bed Methane (CBM) blocks. All four blocks have since been relinquished.

Health, Safety and Environment (HSE) and Corporate Social Responsibility (CSR)

The Company attaches utmost importance to the operational safety standards at all its installations. Necessary proactive and preventive measures are regularly undertaken to ensure that the standards are followed for the safety of employees and equipment. Both external and internal safety audits, as well as mock drills are conducted time to time to gauge emergency and crisis management preparedness.

Corporate Social Responsibility has always been an integral part of Reliance Group’s vision. The Company firmly believes in the commitment to all its stakeholders. Special emphasis is laid on empowering local communities around all the business units. The Company undertakes social interventions in the field of Healthcare, Education, Rural Transformation, Swachh Bharat Abhiyan and Environment. The programmes are designed after identifying the needs of the community and are integrated into the annual operating business plans with measurable goals. During FY 2020-21, our CSR efforts were specifically directed towards helping local communities

Reliance Power Limited

Management Discussion and Analysis

to mitigate the impact of COVID-19 pandemic. Our CSR programmes have received numerous awards and accolades over the years from renowned organisations like FICCI, World CSR Congress, Bombay Chambers of Commerce & Industry (BCCI), India CSR and The CSR Journal.

Human Resources

The Company strongly believes that its employees are the most valuable asset and the strategic differentiator. With this focus in mind, Reliance Power has taken various initiatives towards aligning its HR processes with its business strategy. Our endeavour is to provide a work environment where

continuous learning and development takes place to meet the changing demands and priorities of the business.

The Company has a rich blend of millennial and experienced employees. We have 1353 highly trained and experienced professionals pan India. We take immense pride in the technical and functional excellence of our employees. We attach much importance to learning and development of our employees. Our well laid down career progression plans help in seamless transfer of knowledge to the younger generation and shape them as future leaders.

Discussion on Financial Condition and Financial Performance

An extract of the Consolidated Profit and Loss is provided below:

Discussion on Financial Condition and Financial Performance An extract of the Consolidated Proft and Loss is provided below:
		`in lakhs
Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Revenue from operations	7,93,401	7,56,227
Other Income	45,459	64,014
Total Income	8,38,860	8,20,241
Cost of Fuel consumed	3,11,669	2,89,660
Employee Beneft Expenses	15,606	20,933
Finance Cost	2,53,859	3,05,397
Depreciation / Amortisation	1,08,321	83,628
General, Administration & Other Expenses	1,08,630	1,43,356
Total Expenses	7,98,085	8,42,974
Proft before exceptional items and tax	40,775	(22,733)
Exceptional items	442	(4,00,421)
Proft/(Loss) after exceptional items and before tax (continuing operations)	41,217	(4,23,154)
Tax Expenses	(1,491)	2,366
Proft/(Loss) after Taxes (continuing operations)	42,708	(4,25,520)
Proft/(Loss) after Tax (discontinuing operations)	2,686	(1,628)
Proft/(Loss) after Tax (continuing & discontinuing operations)	45,394	(4,27,148)
– Proft attributable to non-controlling interest	22,531	(19,489)
– Proft attributable to owners of the Parent	22,863	(4,07,659)
EPS (`) (basic and diluted)	0.815	(14.533)

Key financial ratios based on Consolidated Financials are presented below:

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Debtors Turnover (Days)	111	114
Inventory Turnover (Days)	73	82
Interest Coverage Ratio	1.2	1.0
Current Ratio	0.3	0.3
Debt Equity Ratio	2.1	2.4
Operating Proft Margin (%)	45.1	40.0
Net Proft Margin (%)*	5.4	(3.3)
Return on Networth(%)*	1.9	(0.5)

Improvement in Net Profit Margin and Return on Networth for the year ended March 31, 2021 is due to lower finance and operating cost.

Reliance Power Limited

Business Responsibility Report

Business Responsibility Report	Business Responsibility Report
Section A: General Information about Company
1	Corporate Identity Number	L40101MH1995PLC084687
2	Name of the Company	Reliance Power Limited
3	Registered address	Reliance Centre, Ground Floor,19, Walchand Hirachand Marg,
		Ballard Estate, Mumbai 400 001
4	Website	www.reliancepower.co.in
5	Email	[email protected]
6	Financial Year Reported	2020-21
7	Sectors engaged in	Code 51 - Electric power generation
		Code 351 - Mining of hard coal
		Code XXX – CBM Blocks.
8	Key products / services company manufacturers	Electricity generation, coal mining for captive		power plant and
		development of CBM blocks.
9	Number of locations where business is undertaken
	i. International locations	1
	ii. National locations	6
10	Markets served by the company	Throughout India through its subsidiaries
Section B: Financial Details of the Company (`in Crores)
1	Paid-up Capital (in INR)	`2,805.13
2	Total Income (INR)	`8,388.60 (Consolidated)
3	Total Proft after taxes (INR)	`453.94 (Consolidated)
4	Total Spending on CSR as % proft after tax	Nil
5	List of activities in which CSR expenses incurred:	-
Section C: Other Details
1	Details on subsidiary companies	36 Subsidiary Companies (Both direct and	step-down) including
		overseas subsidiaries as on March 31, 2021
2	Participation of subsidiary companies in the BR initiatives of	Subsidiary companies which have been constituted as SPVs set
	the parent company	up for execution of specifc projects are involved in BR initiatives
		at their respective project locations. Subsidiaries participating in
		BR initiatives include: Rosa Power Supply Company Limited,
		Sasan Power Limited, Vidarbha Industries Power Limited and
		Dhursar Solar Power Private Limited.
3	Participation of other entities (suppliers, contractors etc) in	Reliance Power and its subsidiaries actively		encourage other
	the BR initiatives of the Company	Entities such as (suppliers, contractors) to participate in its BR
		initiatives.
Section D: BR Information
1.	Details of Director / Directors responsible for BR
1	a. Details of director responsible for implementation of BR	BR functions are monitored by the Corporate Social
	policies - Director Identifcation Number - DIN	Responsibility Committee of the Board of	Directors. The details
		of the Committee are provided in the Corporate Governance
		section of this report.
	b. Details of BR Head	The Board has not assigned responsibilities specifcally to any
		Director to function as the BR head. The CSR committee of the
		parent company is under the Chairmanship of Shri Bimal Julka.
		Details of Shri Bimal Julka	are	as follows:
		DIN 03172733
		Name Shri Bimal Julka
		Designation Independent Director
		Telephone 022-4303 1000
		Email ID [email protected]

Reliance Power Limited

Business Responsibility Report

2. Principle-wise (as per NVGs) BR policy / policies

P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle. P3 Businesses should promote the wellbeing of all employees.
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
P5 Businesses should respect and promote human rights.
P6 Business should respect, protect, and make efforts to restore the environment.
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
P8 Businesses should support inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner.

3. Principle-wise BR policy - As per National Voluntary Guidelines

Principle-wise BR policy - As per National Voluntary Guidelines
Questions	P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9
1. Do youhave a policy / policies for	Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in consultation with the relevant stakeholders?	Y Y Y Y Y Y Y Y Y
3. Does the policy conform to any national / international standards? If yes, specify?	Y Y Y Y Y Y Y Y Y
4. Has the policy being approved by the Board? Is yes, has it been signed by MD / owner / CEO / appropriate Board Director?	Y Y Y Y Y Y - Y Y
5. Does the company have a specifed committee of the Board / Director / Offcial to oversee the implementation of policy?	Y Y Y Y Y Y Y Y Y
6. Indicate the link for the policy to be viewed online?	https://www.reliancepower.co.in/documents/2181716 /2364859/RPowerBRRPolicy.pdf
7. Has the policy been formally communicated to all relevant internal and external stakeholders?	_ Yes
8. Does the company have in-house structure to implement the policy / policies?	Yes
9. Does the Company have a grievance redressal mechanism related to the policy / policies to address stakeholders’ grievancesrelated to the policy / policies?	Yes
10. Has the company carried out independent audit/evaluation of the working of this policy by an internal or external agency?	No Independent evaluation has been done. However, CSR interventions taken by both the parent company as also by its subsidiaries are reviewed and evaluated by the CSR Committees set up both by the parent company and by the subsidiaries in accordance with the provisions of the Companies Act, 2013, in line with the CSR programmes formulated fortherespective companies.

4. Governance related to BR

(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company.
- The Senior Management of the Company reviews BR performance on an on-going basis. Reviews by the Board/ Committees constituted by it are also undertaken.
(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it’s published?

The Business Responsibility Report (BRR) of the Company is complied on a consolidated basis to cover the activities of its subsidiaries as well and the same can also be viewed on the website of the company www.reliancepower.co.in.

Section E: Principle-wise performance

Principle 1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.

1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/ Joint Ventures/ Suppliers/Contractors/NGOs /Others?

Yes, matters of accountability, transparency and ethical conduct are an integral part of the Company’s value system. The company’s corporate governance principles are anchored on these three elements of its value system. There is a defined set of inter-woven policies and guidelines which are put in place and applicable to both the employees and directors.

The policy takes into account the feedbacks and periodic reviews of the guidelines to ensure their continuing relevance, effectiveness and responsiveness to the needs of local and international investors and other stakeholders. Apart from the company, the scope includes Associate companies, Subsidiaries and SPV’s.

Reliance Power Limited

Business Responsibility Report

2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.

The Company has set up as per the requirements of the Statute and the Listing Regulations, 2015 issued by SEBI a Committee of the Board called ”Stakeholders Relationship Committee” to look after the grievances of the investors. All the three Independent directors of the Company are members of the above committee. The Committee meets at least once in every quarter to look into complaints from investors and the steps taken by the company through its Registered Share Transfer Agents for resolving the complaints.
During the year ended March 31, 2021, the company has received both directly as also through the Regulatory agencies such as SEBI, the Stock Exchanges, a total of 191 complaints, of which related to non-receipt of Annual Report, non-receipt of interim dividend for the year 2015-16, non-receipt of IPO refund, nonreceipt of fractional amount, non credit of shares in Demat Account, Documents submitted to RTA which was rejected due to deficiency in documents etc. All the complaints have been satisfactorily resolved and no complaints were pending / outstanding as on March 31, 2021.

Principle 2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

Committed to sustainable economic development, we have embedded the need to address the environmental and social concerns at the design stage itself through selection of state-of-the-art project execution / construction technologies for implementation of the projects, use of higher efficiency power generation technologies, conservation of natural resources like land and water & lesser emission intensive fuels. Some of the examples include high stack for better dispersion of gaseous and particulate emissions, provision of high efficiency electrostatic precipitators, low NOx burners, dust extraction and suppression systems, effluent treatment plant, sewage treatment plants, high Cycles of Concentration (CoC) ash slurry disposal, ash water recirculation system, rainwater harvesting system, continuous online stack and ambient air quality monitoring systems etc. Steps to conserve natural resources are an integral part of Company’s growth strategy. As the bestin class technology is used for setting up our plants and mining of coal, our operations are designed to reduce the consumption of natural resources, specifically land, auxiliary consumption of electricity, fuel and water. Efforts undertaken to reduce consumption of natural resources have already begun to show results. All power plants and mines are adhering to ZERO liquid discharge. Our townships have no discharge outlets for waste water and all the treated water is used to meet the in-house requirements.
Reliance Power recognizes the critical need for inclusive growth. The locations of our power plants and coal mines are in economically backward regions of India. Proactive engagement with the local community is maintained. Various capacity building programmes in education, healthcare, livelihood development and infrastructure have been implemented/are under implementation with active participation of local communities. Dedicated resources have been put in place to determine the efficiency of each capacity building programme.

2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional):

i. Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain?
Reliance Power is committed towards sustainable economic development and plays a key-role in addressing the challenges facing the environment. We approach these challenges in a holistic manner by pursuing innovative approaches and adopting the global best practices. Continued efforts to address the environmental concerns are visible, inter alia, in the selection of state-of-the-art power generation technologies for implementation of the projects, use of higher efficiency power generation technologies, lesser emission intensive fuels and ultra-modern technologies make evident our commitment towards sustainable development.
ii. Reduction during usage by consumers (energy, water) has been achieved since the previous year?
Not applicable - As we are in the business of generating and supplying the electricity to distribution companies.

3. Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.

Yes, Reliance Power has defined processes and procedures in place for sustainable sourcing. Ample care has been taken at the design stage to incorporate the desired processes to integrate and internalize the ethos of sustainable sourcing and optimum utilization across all resources including the critical ones that are land, coal, water and human resource. Adoption of cleaner technologies further reduces the consumption of fuel and water requirement for plant operations.

Sasan Power Limited – a subsidiary of Reliance Power has a captive source for mining coal which is transported to the plant site covering a distance of 14.6 kms through well established single flight overland belt conveyor which reduces consumption of natural resources required for the purpose of transportation. For other plants, coal is transported through rail rakes / roads one of the most sustainable means of coal transportation.

Water for the purpose of operations is sourced from the rivers and transported through dedicated pipelines. The discharge from the plants are recycled and reused for other secondary requirements.

Reliance Power Limited

Business Responsibility Report

4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

Reliance Power believes in inclusive development and has been promoting the same by encouraging small and local vendors and extending them preference over the others while awarding the contracts. Local vendors are encouraged for procurement of construction material, as civil contractors, for transportation related jobs apart from sourcing for meeting support services like employee transportation, raw materials required for cafeteria etc.
To gainfully engage and build capacities of the local people Co-operative societies of local villagers have been formed. Training is imparted to build their capacities and adequately skill them to meet the requirement of the jobs awarded. There are at present 30 active Cooperative societies of local villagers.

5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.

SN 1	Product /Waste Recycling Hazardous waste	% age of re-use / recycling 100%	Details Through authorized recyclers
2 3	Ash Water Effuent	100% 100%	Using ash water recirculation system Treated effuent is re- used within plant at
			different processes
4	Fly ash	Phased	Used for various
		manner	purposes like, Brick
			Manufacturing, RMC, Cement, road
			embankment ,Low
			line Areafllingetc.

Principle 3 Businesses should promote the well being of all employees.

1. Please indicate the Total number of employees.

The company has 8,191 employees which include permanent employees and those on contractual at March 31, 2021. The above number considers those employed with both the Holding Company and its subsidiaries.

2. Please indicate the Total number of employees hired on temporary / contractual / casual basis.

The company has 6,838 employees under contract.

3. Please indicate the Number of permanent women employees.

Total number of permanent women employees in the company are 18 for the said period.

4. Please indicate the Number of permanent employees with disabilities

None

5. Do you have an employee association that is recognized by management? No

6. What percentage of your permanent employees is members of this recognized employee association? N.A.

7. Please indicate number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year. None

8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?

Permanent Employees : 80%
Permanent Women Employees : 100%
Casual/Temporary/Contractual Employees : 100%
Employees with Disabilities: Nil
Principle 4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.

1. Has the company mapped its internal and external stakeholders? Yes / No

Yes, Reliance Power has mapped its internal as well as external stakeholders.

2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders? Yes.

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so.

Reliance Power engages with stakeholders through multiple channels of communication both formally and informally. Reliance Power and its subsidiaries have developed internal systems and procedures to identify, prioritize and address needs and concerns of stakeholders at various levels. Likewise, various departments have been entrusted with the responsibility of interacting and engaging with stakeholders. The focus is to touch lives and transform lives through concentrated efforts under the key thematic areas of Education, Healthcare, Rural Transformation, and two cross-cutting themes namely, the Environment and the Swaach Bharat Abhiyan. This includes focus on:
a. Establishing remedial schools of laggard children inorder to mainstream them over a period of one year. Also, create learning environment in earmarked government primary, middle and high schools. Honor teachers to enhance their motivation and extend teaching aids and refresher training programs to them.
b. Extend free education to children from earmarked marginalised communities in company owned professionally run English medium schools.

Reliance Power Limited

Business Responsibility Report

c. Women empowerment through promoting women based groups and focused initiatives including skilling and livelihood.
d. We have been extending support to 1367 widows and the old aged by way of pensions/financial assistance.
e. Special coaching and employability sessions for youth with an mandate to orient and equip them with the market requirements.
f. Creation of Cooperative societies for vulnerable and marginalised individuals to skill and groom them as vendors and award them jobs.
g. Extending improved techniques for people engaged in farm by skilling them with advanced techniques, providing resources to enhance the land productivity and improved resource utilisation. Market orientation and mobilisation of the farmers to create groups for better bargaining capabilities.
h. Focus on sanitation across community as well as private places including schools, individual households, community places like markets, community halls etc. Promoting resource sufficiency for clean drinking water, clean air and green ecosphere.
Principle 5 Businesses should respect and promote human rights.

It is widely believed that governments have a duty to protect human rights. Policies of Reliance Power cover the human rights aspects of its employees and other resources associated with matters relating to the construction / operation of the power plants. No complaints have been received in the past financial year on human rights.

1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

Yes, the company has a policy which covers human rights. The Company is committed to uphold and maintain the dignity of women employees and it has in place a policy which provides for protection against sexual harassment of women at work place and for prevention and redressal of such complaints. During the year under review, no such complaints were received.

2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

No complaints on Human Rights were received during the year.

Principle 6 Business should respect, protect and make efforts to restore the environment.

1. Does the policy related to Principle 6 cover only the company or extends to the Group / Joint Ventures/ Suppliers/Contractors/NGOs/others?

Our companies in the group are committed to achieve the global standards of health, safety and environment. We believe in sharing process and product innovations within the group and extending its benefits to the Industry. We believe in safeguarding environment for long term. Reliance Group Companies’ Code of Ethics and Business Policies is applicable to all personnel of the Company as well as to the Consultants, Representatives, Suppliers, Contractors and Agents dealing with the Company.

2. Does the company have strategies / initiatives to address global environmental issues such as climate change, global warming, etc?

At Reliance Power all power plants and mines operations are certified with Integrated Management system for Environment, Occupational Health & Safety and Quality. The environmental issues are identified, categorised and mapped for its impacts. Station specific respective SOPs are developed to address various issues through Environmental Management Plan. The power plants are designed and optimised for minimal consumption of resources for maximum output thus taking care of global warming and climate change. All the power plants and mines carry out extensive green belt development in the vicinity.

It is pertinent to mention that the Company has successfully registered Sasan UMPP, which uses super-critical technology; wind project at Vashpet; Solar Photovoltaic (PV) and Concentrated Solar Power (CSP) projects at Dhursar with the Clean Development Mechanism (CDM) Executive Board under the United Nations Framework Convention on Climate Change.

3. Does the company identify and assess potential environmental risks? Y/N

Yes

4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if yes, whether any environmental compliance report is filed?

Yes, Sasan Power Limited, a subsidiary of Reliance Power is successfully registered with the Clean Development Mechanism (CDM) Executive Board. CDM is one of the three market based mechanisms agreed under the Kyoto Protocol to reduce Greenhouse Gases (GHG) by adopting environmental friendly technologies and/or fuels so that the GHG emissions can be reduced.

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc.

Yes, Reliance Power has taken several initiatives to address long term climate change challenges and environmental management. Some of the initiatives are as under:

Deploying best in class technology related to power generation across all our projects. This aids in reducing the consumption of fuel and water required for plant operations, thereby conserving precious natural resources and contributing towards a greener and healthier environment.

Rosa Power Supply Company Limited (RPSCL), a subsidiary of Reliance Power has an installed capacity of 120 KW of Solar Power generation within the plant on roof tops.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported?

Yes, the emissions/waste generated by the power stations are within the stipulated limits.

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.

Reliance Power Limited

Business Responsibility Report

Principle 7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:
Reliance Power is a member of Association of Power Producers (APP), Arunachal Pradesh Power Producers Association (APPPA), apart from being a member of Chambers of Commerce and Industry. We have, through APP and APPPA, represented to governments (both central and state) for the development of an efficient electricity sector. Objective of these representations is to introduce reforms aimed at providing sustainable power for all on a 24×7 basis.
Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy Security, Water, Food Security, Sustainable Business Principles, Others)

Reliance Power does undertake constructive advocacy with Central as well as State level entities to positively contribute and influence the development of Power sector. As an organization we do not engage in any form of lobbying.

Principle 8 Businesses should support inclusive growth and equitable development

Does the company have specified programmes/ initiatives/projects in pursuit of the policy related to Principle 8? If yes, details thereof.

At Reliance Power, the approach towards CSR is to interweave social responsibility into Company’s mainstream business functions by translating our commitments into the Company’s policies, which not only motivates our employees, but also influences our stakeholders especially partners and suppliers, to embrace responsible business practices in their respective spheres of action.

As part of the CSR mandate, we focus on three key Thematic areas – Education, Healthcare and Rural Transformation (which includes development of infrastructure, skill development, promotion of sustainable livelihood, improving the socio-economic status of women and the youth with two cross-cutting themes of Environment and Swachh Bharat Abhiyan (Sanitation) which complement all our social endeavors. (Refer PIC 1 below).

Reliance Power lays special emphasis on bringing about a tangible change in the lives of people living in rural and underserved areas around its power projects.

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PIC 1: Thematic Areas under CSR

For past several years, Reliance Power has been undertaking various initiatives to support inclusive growth and equitable development for social and economically disadvantaged communities through several CSR programs with active participation from passionate employee volunteers. For the year 2020-21, in order to have more sustainable programmes with measurable impacts, the Company continues to scale-up and leverage the existing efforts.

Below are key initiatives undertaken by the company during the year 2020-21:

i. Education:
Reliance Power has identified education as one of the major focus areas of CSR and has been taking up various initiatives, to bridge the existing gaps and provide an enabling environment for effective learning for underserved communities. The education programmes are focused on primary and secondary level education.
The Company focuses on creating a learning environment for imparting holistic education to children from as early as kindergarten level. These projects are Hamari Paathshala (remedial schooling), Model Aanganwadi implemented at various project sites across the hinterland of our vast country.

Few examples-

At Rosa Power, to strengthen the mathematical and scientific skills, special coaching classes are being conducted for students of standard 10th and 12th appearing for board exams. remedial schools for enrollment of school drop outs are set up under Hamari Paathshala Programme. Students are also being trained for government scholarships in addition to Digital literacy programs being conducted.

Hamari Paathshala adopted innovative method to broadcast learning lessons for children through temple loudspeakers during the Covid 19 Pandemic. Downloaded & broadcasted UP Board syllabus mainly Poems, Tables & Stories on a daily basis.

At Sasan Power, under the School Excellence Programme, efforts revolve around holistic development of students through art and culture, elocution, drama, physical training and sports, and preparation for competitive exams like Olympiad, Spell Bee etc. Electrification and infrastructural support to schools has also been an important element of the project. Vidyadaan, an employee volunteering initiative has significantly impacted the learning outcomes of students appearing for board exams, who in the recent CBSE exams have again met 100% passing milestone.

Dhirubhai Ambani Solar Park, situated at the very edge of our country’s barren region in Pokhran, is supporting students from surrounding five villages in the form of infrastructure development, remedial schooling and digital literacy.

The above efforts in the field of education has benefitted more than 94,000 children from the underprivileged communities surrounding our plant sites.

Reliance Power Limited

Business Responsibility Report

ii. Healthcare:

We at Reliance Power focus on promoting primary, preventive and curative healthcare. The Company implements CSR programs with special focus on health of elderly, women, adolescent and young ones like supporting Pediatric Heart surgeries for underprivileged children. Initiatives with support from accredited nonprofit organisations promoting healthcare initiatives such as Aarogyam, Project Indradhanush, Swasthya Chetna and awareness cum health checkup camps are being conducted across all our sites.

Reliance Power also initiated concerted projects to meet the mandate set out by Hon. Prime Minister on woman health under Pradhan Mantri Surakshit Matritva Abhiyan, Pradhan Mantri Jeevan Jyoti Bima Yojana.

Few examples-

At Rosa Power site, programme ‘Swasth Chetna’ spreads general health awareness on curative and promotive healthcare in collaboration with the state government and local agencies. We organise and support vaccination and eye checkup camps through mobile health units, physio therapy centres, promotion of maternal and child health through institutional delivery of babies and nutrition awareness.

Sasan Power promotes maternal and child health through Institutional delivery for babies under Surakshit Matritva Abhiyan Project in collaboration with Govt departments. Child nutrition and mother & child health improvement is ensured through group of activities like supplementary nutrition of chickpeas & Jaggery, supply of healthy baby kits and other awareness campaigns. Institutional delivery and modern menstrual hygiene practices among rural women have seen significant acceptance.

We have impacted around 2.5 lakhs people through our health care programmes, wherein approximately 91,400 adolescent girls and women have benefited from the Sanitation and Menstrual hygiene camps.

iii. Rural Transformation:

‘Touching lives, transforming lives’, is the vision Reliance Power has constantly been working on to promote scientific agriculture, horticulture, animal husbandry, tree plantation, women empowerment, sanitation and water management.

Since locations of the projects are in economically and socially underdeveloped areas, it is a constant endeavor to include the local community as a critical stakeholder in the inclusive measures initiated by the Company.

We encourage creation of socio physical infrastructure for the benefit of local community, including that of construction / renovation of community halls, construction of roads, cremation sheds etc. across all Reliance Power subsidiaries using the concept of YogDaan.

Few examples:

Transforming rural lives through sustainable socioeconomic capacity building programmes, is one of the key mandates at Rosa Power Supply Co. Ltd. Our focus has been to create ’Model Villages / Aadarsh Grams’ with emphasis on collective development in consultation with the local/ state government and civil society for improving the standard of living of families as a unit, enriching the social capital and building the community spirit. Our endeavors run across supporting Human

Development, Community Outreach, Agriculture, Animal Husbandry, Social and Financial Inclusion, Economic Empowerment, Job Creation, Skill Enhancement, and Social Security within the community with a key focus on women, differently abled and senior citizens and the farming communities.

Sasan Power was involved in creating and supporting of more than 30 Cooperative societies for vulnerable and marginalised individuals to skill them as vendors and award them service contracts. These measures have directly helped more than 350 project affected persons to ignite the engine of economic progress around the Sasan site.

Livelihood interventions focusing on farm and nonfarm areas including promoting agriculture, improving livestock, skill development for women and youth as well as infrastructure development, both through direct intervention and participation from accredited agencies have supplemented earning capabilities of about 3800 families across locations where Reliance Power subsidiaries operate.

iv. Woman Empowerment:

Reliance Power has strived towards livelihood promotion by creating Self Help Groups (SHG’s) for women, engaging them in small business projects like making sweet boxes, tailoring, knitting, decorative basket making, papad making, manufacturing fertilizer etc which helped them to earn an additional income for their families.

Few examples-

More than 30 SHGs have been formed, empowering more than 353 SHG women members to become financially self reliant.

More than 5300 farmers and women benefitted through our CSR endeavors this year.

v. Sanitation:

Swachh Bharat Abhiyan (SBA) has become a popular mass movement ever since its initiation by Hon. Prime Minister. Our Chairman, Shri Anil Dhirubhai Ambani has taken it upon himself and has translated it into an opportunity by integrating the tenets of SBA in the company’s business processes apart from the social mandate across the Reliance Group for a far reaching and sustained impact.

Some of the key activities are awareness cum hygiene promotion programmes in schools, cleanliness drive at public facilities, building of toilets in the rural communities, distribution of sanitation kits, beach cleaning etc. This movement has grown within Reliance Power group and has engaged a wide spectrum of stakeholders including communities around our operational areas as well as employee volunteers across our business verticals.

Few examples-

Given the outbreak of COVID-19 pandemic before the end of financial year 2019-20, Reliance Power reached out to all earmarked 48 villages in the FY 2019-20 itself and worked throughout in FY 2020-21 to spread awareness on COVID-19, provided sanitizers (3,500 Litres), installed sanitizer machines at common places / public offices and created a mass volunteering movement for stitching and distributing hand-stitched government endorsed masks (58,179 Nos), distributed ration kits (5,000 Nos) at quarantine centers and to underprivileged and installed LED lights at quarantine centers.

Reliance Power Limited

Business Responsibility Report

vi. Environment:
We as a company are very conscious about the importance of clean and green environment. It is an integral part of all our business operations as well as social interventions undertaken through CSR programmes. The imperative is to use natural resources efficiently to leave a minimal carbon footprint and impact on biodiversity across our business value chain. The group strives to develop and promote processes and technologies to make all our products and services environment-friendly. The philosophy behind this is to create a sustainable business model of circular economy by following the principle of 5 Rs- Reduce, Reuse, Repair, Refurbish and Recycle for the sustainability of the environment and its resources. Few examples-

Continuing to support its Go Green Initiative, Sasan Power and Rosa Power are supporting 64 solar mini grids and 264 solar street lights in the nearby villages benefitting more than 30,000 habitants. More than 13,000 plants have been planted across sites.

To conclude, Reliance Power and its subsidiaries, through its sustainability endeavors are making constant efforts to bring about a change and provide better quality of life to underprivileged communities in the vicinity of the project sites.

2. Are the programmes / projects undertaken through in-house team/own foundation/external NGO/ government structures/any other organization?

Our CSR projects are mostly designed as longterm collaborative projects keeping in mind priorities mentioned in Schedule VII of the CSR Act, 2013 and the Sustainable Development Goals. They are implemented through delivery mechanisms comprising of employees, local bodies, non-governmental organisations, notfor-profit entities and government institutions etc. The interventions are carried out in tandem with local Government bodies to meet the social mandate for the earmarked communities. The execution of the programs under the thematic heads Education, Healthcare, Rural Transformation, Environment and Sanitation are carried out with the support from development sector organisations and institutions apart from implementation through respective CSR teams. Employee volunteering also acts as a critical implementing arm across for the earmarked communities.

3. Have you done any impact assessment of your initiative?

Yes, we conduct Impact Assessment studies time to time – both internally as well as externally to understand the impact of our programmes. Rosa Power did the third party Impact Assessment in the year 2017-18. For Sasan Power, SoleAce Private Limited conducted an external Impact Assessment for CSR programmes during FY 2019-20. We plan to award more assignments to external agencies to conduct independent impact assessments at our other sites.

4. What is your company’s direct contribution to community development projects (amount in INR and the details of the projects undertaken).

The company and its subsidiaries have spent about ` 4 Crore as direct contribution to community development projects under the thematic heads of Education, Healthcare, Rural transformation, Swachh Bharat

Abhiyan and Environment. These projects are directly intended for improving the quality of life of community with well designed strategies of replicability, scalability and sustainability.

5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

Reliance Power regularly evaluates the performance and impact of its CSR programmes. The CSR Team conducts assessments internally as well as through external agencies to keep strengthening the interventions. The interventions have been aligned with that of the Government mandate both at the local as well as the State level. We have been working in creating meaningful partnerships through series of engagements and transparency in our processes across board. This is undertaken by initiating meaningful grassroot level participation with local bodies / institutions / NGOs to support and augment interventions in areas by ensuring stakeholder engagement to identify their perceived needs.

Principle 9 Businesses should engage with and provide value to their customers and consumers in a responsible manner.

1. What percentage of customer complaints/consumer cases are pending as on the end of financial year.

The main business activities of the Company and its subsidiaries are generation and supply of electricity to distribution companies (Discoms) and captive mining of coal for generation of electricity. Main consumers are the Discoms with whom the Power Purchase Agreements have been entered into. Power tariff discovery through competitive bidding as is the case with ultra-competitive tariffs of Sasan UMPP or highly transparent and objective tariff determination by regulatory commissions as is the case with Rosa and Butibori Power Projects ensure that consumer is immensely benefitted in terms of competitive price of power.

2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A./Remarks (additional information)

N.A.

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.

No cases have been filed by any stakeholder against the company regarding unfair trade practices during the year under review.

4. Did your company carry out any consumer survey/ consumer satisfaction trends?

No. The company, however, ensures that complaints, if any, received from stakeholders are promptly attended to.

Reliance Power Limited

Corporate Governance Report

Corporate Governance Philosophy

Reliance Power follows the highest standards of corporate governance principles and best practices by adopting the ‘Reliance Group – Corporate Governance Policies and Code of Conduct’ as is the norm for all constituent companies in the group. These policies prescribe a set of systems and processes guided by the core principles of transparency, disclosure, accountability, compliances, ethical conduct and the commitment to promote the interests of all stakeholders. The policies and the code are reviewed periodically to ensure their continuing relevance, effectiveness and responsiveness to the needs of our stakeholders.

Governance Policies and Practices

The Company has formulated a number of policies and introduced several Governance practices to comply with the applicable statutory and regulatory requirements, with most of them introduced long before they were made mandatory.

A. Values and Commitments

We have set out and adopted a policy document on ‘Values and Commitments’ of Reliance Power. We believe that any business conduct can be ethical only when it rests on the nine core values viz. honesty, integrity, respect, fairness, purposefulness, trust, responsibility, citizenship and caring.

B. Code of Ethics

Our policy document on ‘Code of Ethics’ demands that our employees conduct the business with impeccable integrity and by excluding any consideration of personal profit or advantage.

matter of general concern and protects the whistle blower from any adverse personal action. The Vigil Mechanism has been overseen by the Audit Committee. It is affirmed that no personnel have been denied access to the Audit Committee.

H. Environment and Corporate Social Responsibility (CSR)

The Company is committed to achieve excellence in environmental performance, preservation and promotion of clean environment. These are the fundamental concern in all our business activities. The Company has also developed a CSR policy which is intended to contribute towards improving the quality of life.

I. Risk Management

Our Risk Management procedures ensure that the management controls various business related risks through means of a properly defined framework.

J. Boardroom Practices

a. Chairman

In line with the highest global standards of Corporate Governance, the Board has separated the Chairman’s role from that of an executive in managing day-to-day business affairs.

b. Board Charter

The Company has a comprehensive charter, which sets out clear and transparent guidelines on matters relating to the composition of the Board, scope and function of the Board and its Committees, etc.

C. Business Policies

c. Board Committees

Our ‘Business Policies’ cover a comprehensive range of issues such as fair market practices, inside information, financial records and accounting integrity, external communication, work ethics, personal conduct, policy on prevention of sexual harassment, health, safety, environment and quality.

D. Separation of the Chairman’s supervisory role from Executive Management

In line with best global practices, we have adopted a policy to ensure that the Chairman of the Board shall be a non-executive director.

E. Policy on Prohibition of Insider Trading

This document contains the policy on prohibiting trading in the securities of the Company, based on insider or privileged information.

F. Policy on prevention of Sexual Harassment

Our policy on prevention of sexual harassment aims at promoting a productive work environment and protects individual rights against sexual harassment.

G. Whistle Blower Policy (Vigil Mechanism)

Our Whistle Blower Policy (Vigil Mechanism) encourages disclosure in good faith of any wrongful conduct on a

Pursuant to the provisions of the Companies Act, 2013 (‘the Act’) and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the Board had constituted Audit Committee, Nomination and Remuneration Committee (NRC), Stakeholders Relationship Committee, Corporate Social Responsibility Committee (CSR) and Risk Management Committee.

d. Selection of Independent Directors

Considering the requirement of skill sets on the Board, eminent people having an independent standing in their respective field / profession, and who can effectively contribute to the Company’s business and policy decisions are considered by the NRC, for appointment, as Independent Directors on the Board. The Committee, inter-alia, considers qualification, positive attributes, area of expertise, their independence and number of directorships and memberships held in various committees of other companies by such persons. The Board considers the Committee’s recommendation, and takes appropriate decision.

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Corporate Governance Report

Every Independent Director, at the first meeting of the Board in which she / he participates as a Director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the circumstances which may affect her / his status as an Independent Director, gives a declaration that she / he meets the criteria of independence as provided under the law.

e. Tenure of Independent Directors

Tenure of Independent Directors on the Board of the Company shall not exceed the time period as per provisions of the Act and the Listing Regulations, as amended from time to time.

f. Familiarisation of Board Members

The Board members are periodically given formal orientation and familiarised with respect to the Company’s vision, strategic direction and core values including ethics, corporate governance practices, financial matters and business operations.

The Directors are facilitated to get familiar with the Company’s functions at the operational levels. Periodic presentations are made at the Board and Committee Meetings on business and performance updates of the Company, business strategy and risks involved. The members are also provided with the necessary documents, reports and internal policies to enable them to familiarize themselves with the Company’s procedures and practices. Periodic updates for members are also given out on relevant statutory changes and on important issues impacting the Company’s business environment.

The details of the programmes for familiarisation of Independent Directors have been put up on the website of the Company at the link https://www.reliancepower.co.in/ documents/2181716/2364859/RPower_ Familiarization_Programme_2020_21.pdf

g. Meeting of Independent Directors with Operating team

The Independent Directors of the Company interact with various operating teams as and when they deem necessary. These discussions may include topics such as operating policies and procedures, risk management strategies, measures to improve efficiencies, performance and compensation, strategic issues for Board consideration, flow of information to directors, management progression and succession and others as the Independent Directors may determine. During these executive sessions, the Independent Directors have access to the members of management and other advisors, as they may deem fit.

h. Subsidiaries

All the subsidiaries of the Company are managed by their respective Boards. Their Boards have the rights and obligations to manage their Companies in the best interest of their stakeholders. The Company monitors performance of subsidiary Companies.

i. Commitment of Directors

The meeting dates for the entire financial year are scheduled at the beginning of the year and an annual calendar of meetings of the Board and its Committees is circulated to the Directors. This enables the Directors to plan their commitments and facilitates their attendance at the meetings of the Board and its Committees.

K. Role of the Company Secretary in Governance Process

The Company Secretary plays a key role in ensuring that the Board procedures are followed and regularly reviewed. He ensures that all relevant information, details and documents are made available to the Directors and Senior Management for effective decision making at the meeting(s). He is primarily responsible for assisting the Board in the conduct of affairs of the Company and to ensure compliance with the applicable statutory requirements and Secretarial Standards to provide guidance to directors and to facilitate convening of meetings. He interfaces between the Management and the Regulatory Authorities for governance matters. All the Directors of the Company have access to the advice and services of the Company Secretary.

L. Independent Statutory Auditors

The Company’s Financial Statements for the year 2020-21 have been audited by an independent audit firm M/s. Pathak H.D. & Associates LLP, Chartered Accountants and pursuant to the provisions of Section 139 of the Act, M/s. Pathak H.D. & Associates LLP, would complete their first term of five years at the conclusion of ensuing Annual General Meeting (AGM).

The Board has recommended their re-appointment for another term of five consecutive years from the conclusion of the ensuing AGM till the conclusion of the 32[nd] AGM.

M. Compliance with the code and rules of Luxembourg Stock Exchange

The Global Depository Receipts (GDRs) issued by the Company are listed on the Luxembourg Stock Exchange (LSE). The Company has reviewed the code of Corporate Governance of LSE and the Company’s corporate governance practices conform to these codes and rules.

N. Compliance with the Listing Regulations

During the year, the Company is fully compliant with the mandatory requirements of the Listing Regulations.

We present our report on compliance of the governance conditions specified in the Listing Regulations as follows:

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Corporate Governance Report

I. Board of Directors

1. Board Composition - Board strength and representation As on March 31, 2021, the Board comprised of six Directors.

The the	composition and category of Directors on the Board of Company are as under:	composition and category of Directors on the Board of Company are as under:	composition and category of Directors on the Board of Company are as under:
SN	Names of	DIN	Category
1.	Directors Shri Anil Dhirubhai Ambani	00004878	Chairman, Promoter,
			Non-Executive and Non- Independent Director
2.	Shri Sateesh Seth	00004631	Vice-Chairman,
			Non-Executive
			and Non-
			Independent
			Director
3. 4.	Smt Chhaya Virani Shri Bimal Julka	06953556 03172733	Independent Director Independent Director
5.	Shri Vijay Kumar	02449088	Independent
	Sharma		Director
6.	Shri K. Raja Gopal	00019958	Whole-time Director

b. Monitoring the effectiveness of the Company’s governance practices and making changes as needed.
c. Selecting, compensating, monitoring and when necessary, replacing key executives and overseeing succession planning.
d. Aligning key executive and board remuneration with the long term interests of the Company and its shareholders.
e. Ensuring a transparent board nomination process with the diversity of thought, experience, knowledge, perspective and gender in the Board.
f. Monitoring and managing potential conflicts of interest of Management, members of the Board of Directors and shareholders, including misuse of corporate assets and abuse in Related Party Transactions.
g. Ensuring the integrity of the Company’s accounting and financial reporting systems, including the independent audit and that appropriate systems of control are in place, in particular, systems for risk management, financial and operational control and compliance with the law and relevant standards.
h. Overseeing the process of disclosure and communications.

Notes:

a. None of the Directors are related to any other director.
b. None of the Directors have any business relationship with the Company.
c. None of the Directors have received any loans and advances from the Company during the financial year.
All the Independent Directors of the Company furnish a declaration at the time of their appointment and also annually that they meet the criteria of independence as provided under law. The Board reviews the same and is of the opinion, that the Independent Directors fulfil the conditions specified in the Act and the Listing Regulations and are independent of the management.

2. Conduct of Board Proceedings

The day-to-day business is conducted by the executives and the business heads of the Company under the directions of the Board. The Board holds a minimum of four meetings every year to review and discuss the performance of the Company, its future plans, strategies and other pertinent issues relating to the Company.

The Board performs the following key functions in addition to overseeing the business and management:

a. Reviewing and guiding corporate strategy, major plans of action, risk policy, annual budgets and business plans, setting performance objectives, monitoring implementation and corporate performance, and overseeing major capital expenditures, acquisitions and divestments.
i. Monitoring and reviewing Board evaluation framework.

3. Board Meetings

The Board held four meetings during the financial year 2020-21 on the following dates:

May 08, 2020, July 30, 2020, October 22, 2020 and January 21, 2021.

The maximum time gap between any two meetings during the year under review was 90 days and the minimum gap was 82 days.

4. Legal Compliance Monitoring

The Company monitors statutory compliances through a system driven tool called Legatrix which has the facility of capturing all the statutes that impact the Company’s operations as also those of its operating subsidiary companies. The programme is coordinated and monitored by the Compliance Officer at the corporate office. Noncompliances/ delayed compliances, if any, are reported for remedial action.

A compliance report pertaining to the laws applicable to the Company based on the reports generated from Legatrix is placed before the Board at its meetings. Pursuant to the requirements of the Listing Regulations, the Board periodically reviews the legal compliances mechanism.

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Corporate Governance Report

5. Attendance of directors

Attendance of the directors at the Board meetings held during the financial year 2020-21 and the last Annual General Meeting (AGM) and the details of directorships (as computed as per the provisions of Sections 165 of the Act), Committee Chairmanships and the Committee Memberships held by the directors as on March 31, 2021, were as under:

Name of Director	Number of	Attendance at	No. of	Committee(s) Membership/	Committee(s) Membership/
	Board Meetings	the last AGM	directorships	Chairmanship (including RPower)
	attended out of 4 meetings held	held on June 23, 2020	(including RPower)	Membership	Chairmanship
Shri Anil Dhirubhai Ambani	4	Present	7	-	-
Shri Sateesh Seth	3	Present	6	-	-
Smt. Chhaya Virani*	2	NA	8	9	4
Shri Bimal Julka*	2	NA	1	2	-
Shri Vijay Kumar Sharma*	2	NA	7	5	3
Shri K. Ravikumar#	2	Present	NA	NA	NA
Shri D. J. Kakalia#	2	Present	NA	NA	NA
Smt. Rashna Khan#	2	Present	NA	NA	NA
Shri K. Raja Gopal	4	Present	1	1	-

*Appointed as Director with effect from September 26, 2020

Term expired as Director with effect from September 25, 2020

Notes :

a) None of the directors hold directorships in more than 20 companies of which directorships in public companies does not exceed 10 in line with the provisions of Section 165 of the Act.
b) No director holds directorships in more than 7 listed entities.
c) No director holds Membership of more than 10 Committees of Board nor is a Chairman of more than 5 committees across Board of all listed entities.
d) None of the Director has been appointed as Alternate Director for Independent Director.
e) The information provided above pertains to the following committees in accordance with the provisions of Regulations 26(1)(b) of the Listing Regulations: (i) Audit Committee and (ii) Stakeholders Relationship Committee.
f) The Committee memberships and chairmanships above exclude memberships and chairmanships in private companies, foreign companies and in Section 8 companies.
g) Memberships of Committees include chairmanships, if any

Pursuant to the General Circular No. 11/2020 dated March 24, 2020 the Ministry of Corporate Affairs in order to support and enable the Companies to focus on taking necessary measures to address the Covid-19 threat the requirement for holding Company’s Independent Directors meet at least once in every Financial Year without the attendance of NonIndependent Directors and Management Personnel has been dispensed with.

6. Details of Directors

The abbreviated resume of all directors is furnished hereunder:

Shri Anil D. Ambani, 62 years, B.Sc. Hons. and MBA from the Wharton School of the University of Pennsylvania, is the Chairman of our Company.

As on March 31, 2021, Shri Anil D. Ambani holds 4,65,792 shares of the Company including 1,000 shares jointly with Reliance Project Ventures and Management Private Limited.

Shri Sateesh Seth, 65 years, is a Fellow Chartered Accountant and a Law Graduate. He has vast experience in general management. Shri Sateesh Seth is also on the Board of Reliance Infrastructure Limited, Reliance Defence and Aerospace Private Limited, Reliance Defence Technologies Private Limited, Reliance Defence Systems Private Limited and Reliance Defence Limited.

Shri Sateesh Seth holds 29 shares in the Company as on March 31, 2021.

Smt. Chhaya Virani, 67 years, graduated from Mumbai University with a bachelors’ degree in Arts. She also acquired a bachelors’ degree in legislative laws from the Government Law College in 1976. She is a partner in M/s. ALMT Legal Advocates and Solicitors. She is a member of Audit Committee, Nomination and Remuneration Committee (‘NRC’), Corporate Social Responsibility (CSR) Committee of the Company. She is a Chairperson of Risk Management Committee (‘RMC’) of the Company.

She is also a director on the Board of Reliance Capital Limited, Reliance Home Finance Limited, Reliance General Insurance Company Limited, Reliance Capital Pension Fund Limited, Reliance Corporate Advisory Services Limited, Sasan Power Limited and Rosa Power Supply Company Limited.

She is the Chairperson of Audit Committee and Stakeholders Relationship Committee (SRC) of Reliance Capital Limited and Reliance Home Finance Limited.

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Corporate Governance Report

She is the member of Audit Committee of Reliance General Insurance Company Limited, Reliance Capital Pension Fund Limited, Rosa Power Supply Company Limited and Sasan Power Limited.

As on March 31, 2021 Smt Chhaya Virani did not hold any shares of the Company.

He is a member of Audit Committee, Stakeholders Relationship Committee, Nomination & Remuneration Committee, Risk Management Committee of the Company. He is the Chairperson of Corporate Social Responsibility (CSR) Committee of the Company.

As on March 31, 2021 Shri Bimal Julka did not hold any shares of the Company.

Shri Vijay Kumar Sharma, 62 years, superannuated as Chairman, Life Insurance Corporation of India (‘LIC’) on December 31, 2018. Prior to his taking over as Chairman on December 16, 2016, he served as Chairman (In charge) from September 16, 2016 and Managing Director, LIC from November 1, 2013. From December 2010 to November 2013, he served as Managing Director & Chief Executive Officer, LIC Housing Finance Limited (LICHFL), a premiere housing finance company in the country.

Shri Sharma is a post-graduate from Patna University. He joined LIC as Direct Recruit Officer in 1981 and grew

up with the Corporation since then. He held various challenging assignments pan India and in all operational streams including in-charge positions at different levels. Working across length and breadth of the country has added immensely to his experience and honed his understanding of demographics of the country, socioeconomic needs of different regions and multi-cultural challenges in implementation of Corporate’s objectives. He has served LIC for over 37 years. During his tenure, he has worked in all core areas of Life Insurance. He has vast national and international, operational and Board level experience of Financial Sector including Banking, Housing Finance, Pension & Group Insurance Business, Cards, Mutual Funds & Pension Fund.

He is a member of the Audit Committee, Corporate Social Responsibility (‘CSR’) Committee and Risk Management Committee of the Company. He is the Chairperson of Nomination and Remuneration Committee (NRC) and Stakeholders Relationship Committee (‘SRC’) of the Company.

He is the Chairman of Stakeholders Relationship Committee (SRC) of Tata Steel Limited. He is the member of Audit Committee of ICEX Limited. He is the Chairperson of Audit Committee of Vidarbha Industries Power Limited.

As on March 31, 2021 Shri Vijay Kumar Sharma did not hold any shares of the Company.

Shri K Raja Gopal, 63 years, ME, MBA having over thirtyseven years of industry and leadership experience in both public and private domains. A well acknowledged leader in power industry circles of the country known for deep insight, vision, team building capability, fostering strong relationships and a proven track record of execution and operation of large IPPs.

He is a member of Stakeholders Relationship Committee and Corporate Social Responsibility Committee of the Company.

He had also chaired the ‘Association of Power Producers’ (APP) and also was a member of National Committee on Power at CII and FICCI at New Delhi.

As on March 31, 2021, Shri K. Raja Gopal did not hold any shares of the Company.

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Corporate Governance Report

Core Skills / Expertise / Competencies available with the Board

The board comprises of highly qualified members who possess required skills, expertise and competence that allow them to make effective contributions to the Board and its Committees.

The core skills / expertise / competencies required in the Board in the context of the Company’s Businesses and sectors functioning effectively as identified by the Board of Directors of the Company are tabulated below:

Name of Director Area of Expertise Shri Anil D. Ambani l Leadership / Operational experience l Strategic Planning l Sector / Industry Knowledge & Experience, Research & Development and Innovation l Technology l Financial, Regulatory / Legal & Risk Management l Corporate Governance Shri Sateesh Seth l Leadership / Operational experience l Strategic Planning l Sector / Industry Knowledge & Experience, Research & Development and Innovation l Technology l Financial, Regulatory / Legal & Risk Management l Corporate Governance Smt Chhaya Virani l Leadership / Operational experience l Strategic Planning l Sector / Industry Knowledge & Experience, Research & Development and Innovation l Financial, Regulatory / Legal & Risk Management l Corporate Governance	Name of Director Area of Expertise
	Shri Bimal Julka l Leadership / Operational experience l Strategic Planning l Sector / Industry Knowledge & Experience, Research & Development and Innovation l Technology l Financial, Regulatory / Legal & Risk Management l Corporate Governance
	Shri Vijay Kumar Sharma l Leadership / Operational experience l Strategic Planning l Sector / Industry Knowledge & Experience, Research & Development and Innovation l Financial, Regulatory / Legal & Risk Management l Corporate Governance
	Shri K. Raja Gopal l Leadership / Operational experience l Strategic Planning l Sector / Industry Knowledge & Experience, Research & Development and Innovation l Technology l Financial, Regulatory / Legal & Risk Management l Corporate Governance

Directorships in other listed entities:

The details of directorships held by the directors of the Company as on March 31, 2021 is as follows:

Name of Director	Name of Listed entities	Category
Shri Anil D. Ambani	Reliance Infrastructure Limited	Chairman,Promoter, Non-Executive, Non Independent Director
	Reliance Capital Limited	Chairman, Promoter, Non-Executive, Non Independent Director
	Reliance General Insurance	Non-Executive, Non Independent Director
	Company Limited
Shri Sateesh Seth	Reliance Infrastructure Limited	Non-Executive, Non Independent Director
Smt Chhaya Virani	Reliance Capital Limited	Non-Executive, Independent Director
	Reliance Home Finance Limited	Non-Executive, Independent Director
	Reliance General Insurance	Non-Executive, Independent Director
	Company Limited
Shri Bimal Julka	-	-
Shri Vijay Kumar Sharma	Tata Steel Limited	Non-Executive, Independent Director
	Nureca Limited	Non-Executive, Independent Director
	Mahindra & Mahindra Limited	Non-Executive, Nominee Director
Shri K. Raja Gopal	-	-

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Corporate Governance Report

7. Insurance Coverage

The Company has obtained Directors and Officers liability insurance coverage in respect of any legal action that might be initiated against Directors/ Officers of the Company and its subsidiary Companies.

II. Audit Committee

The Audit Committee of the Board constituted in terms of Section 177 of the Act and Listing Regulations. The Committee was re-constituted by the Board of Directors of the Company on October 15, 2020. The Committee presently comprises of three independent non-executive director of the Company viz. Smt Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma as Members. All the members of the Committee are financially literate.

The Audit Committee, inter-alia , advises the management on the areas where systems, processes, measures for controlling and monitoring revenue assurance, internal audit and risk management can be improved.

The terms of reference, inter-alia, comprises the following:
Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible;
Recommendation for appointment, remuneration and terms of appointment of the auditors of the Company;
Approval of payment to statutory auditors for any other services rendered by them;
Reviewing with the Management, the Annual Financial Statements and Auditors’ Report thereon before submission to the Board for approval, with particular reference to:
a. Matters required to be included in the Directors’ Responsibility Statement forming a part of the Boards’ report in terms of clause (c) of sub section 3 of Section 134 of the Act.
b. Changes, if any, in accounting policies and practices and reasons for the same.
c. Major accounting entries involving estimates based on the exercise of judgment by Management.
d. Significant adjustments made in the financial statements arising out of audit findings.
e. Compliance with listing and other legal requirements relating to financial statements.
f. Disclosure of any Related Party Transactions. g. Modified opinion(s) in the draft audit report.
Reviewing with the Management, the quarterly financial statements before submission to the board for approval;
Reviewing with the Management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.) the statement of funds utilised for purposes other than those stated in the offer documents / prospectus / notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue and making appropriate recommendations to the Board to take up steps in these matters;
Review and monitor the auditors’ independence and performance and effectiveness of audit process;
Subject to and conditional upon the approval of the Board of Directors, approval of Related Party Transactions (RPTs) or subsequent modifications thereto. Such approval can be in the form of omnibus approval of RPT subject to conditions not inconsistent with the conditions specified in Regulation 23(2) and Regulation 23(3) of the Listing Regulations. Such approval shall not be required for transactions with a wholly owned subsidiary whose accounts are consolidated with the Company;
Subject to review by the Board of Directors, review on quarterly basis, of RPTs entered into by the Company pursuant to each omnibus approval given pursuant to (8) above;
Scrutiny of inter-corporate loans and investments;
Valuation of undertakings or assets of the Company, wherever it is necessary;
Evaluation of internal financial controls and risk management systems;
Reviewing with the Management, the performance of statutory and internal auditors, adequacy of internal control systems;
Reviewing the adequacy of internal audit function, if any, including the structure of the Internal Audit Department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
Discussion with internal auditors of any significant findings and follow up thereon;
Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or failure of internal control systems of a material nature and reporting the matter to the Board;
Discussion with the statutory auditors before the audit commences about the nature and scope of audit as well as post-audit discussion to ascertain any areas of concern;
To look into the reasons for substantial defaults in the payment to the depositors, debenture-holders, shareholders (in case of non-payment of declared dividends) and creditors;
To review the functioning of the whistle blower mechanism;
Approval of appointment of the Chief Financial Officer after assessing the qualifications, experience and background, etc. of the candidate.
Reviewing the utilisation of loans and/ or advances from/ investment by the holding company in the subsidiary exceeding rupees 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans / advances / investments.
Consider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger, amalgamation etc., on the Company and its shareholders;
To review compliance with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, at least once

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Corporate Governance Report

in a financial year and shall also verify that the systems for internal control are adequate and are operating effectively; and

Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
The Audit Committee is also authorised to:
a. Investigate any activity within the terms of reference;
b. Seek any information from any employee;
c. To have full access to information contained in the records of the Company;
d. Obtain outside legal and professional advice;
e. Secure attendance of outsiders with relevant expertise, if it considers necessary;
f. Call for comments from the auditors about internal control systems and scope of audit, including the observations of the auditors;
g. Review financial statements before submission to the Board; and
h. Discuss any related issues with the internal and statutory auditors and the Management of the Company
The Audit Committee shall mandatorily reviews the following information, as necessary:
a. Management Discussion and Analysis of financial condition and results of operations;
b. Statement of significant Related Party Transactions (as defined by the Audit Committee) submitted by Management;
c. Management letters / letters of internal control weaknesses issued by the statutory auditors;
d. Internal audit reports relating to internal control weaknesses, and;
e. The appointment, removal and terms of remuneration of the Chief Internal Auditor.
f. Statement of deviations:
i. Quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to the Stock Exchanges as per the Listing Regulations;
ii. Annual Statement of funds utilised for purposes other than those stated in the offer document/ prospectus/ notice, if any.

Attendance at the meetings of the Audit Committee held during financial year 2020-21

The Audit Committee held its meetings on May 08, 2020, July 30, 2020, October 22, 2020 and January 21, 2021. The maximum gap between any two meetings was 90 days and the minimum gap was 82 days.

minimum gap was 82 days.
Members Smt. Chhaya Virani Shri Bimal Julka	Meetings held during the FY 4 4	Meetings Attended 2 2
Shri Vijay Kumar Sharma*	4	2
Shri K Ravikumar#	4	2
Shri D J Kakalia# Smt Rashna Khan#	4 4	2 2

*Appointed as member of the Committee w.e.f. October 15, 2020

Ceased to be a member of the Committee w.e.f. September 25, 2020

The Chairperson of the Audit Committee was present at the last Annual General Meeting of the Company.

The Audit Committee considered all the points in terms of its reference at periodic intervals.

The Company Secretary acts as the Secretary to the Audit Committee.

During the year, the Committee discussed with the Statutory Auditor of the Company, the overall scope and plans for the independent audit.

The Management has represented to the Committee that the Company’s financial statements were prepared in accordance with the prevailing laws and regulations.

The Committee discussed the Company’s Audited Financial Statement, the rationality of significant judgments and the clarity of disclosures in the financial statement. Based on the review and discussions conducted with the Management and the Auditors, the Audit Committee believes that the Company’s Financial Statement are fairly presented in conformity with the prevailing laws and regulations in all material aspects.

The Committee reviewed the internal control systems put in place to ensure that the accounts of the Company are properly maintained and that the accounting transactions are recorded in accordance with the prevailing laws and regulations. While conducting such reviews, the Committee found no material discrepancy or weakness in the internal control systems of the Company. The Committee also reviewed the financial policies of the Company and has expressed its satisfaction with the same. The Committee, after review expressed its satisfaction on the independence of both the Statutory and Internal Auditors.

Pursuant to the requirements of Section 148 of the Companies Act, 2013, the Board has, based on the recommendation of the Committee, appointed Cost Auditors to audit the cost records of the Company. The Cost Audit Report was placed and discussed and the Audit Committee Meeting.

III. Nomination and Remuneration Committee

The Nomination and Remuneration Committee (NRC) constituted in terms of Section 178 of the Act and Listing Regulations.

The Committee was re-constituted by the Board of Directors of the Company on October 15, 2020. The Committee comprises of three directors, viz. Shri Vijay Kumar Sharma as Chairperson, Smt. Chhaya Virani and Shri Bimal Julka as Members.

The Company Secretary acts as the Secretary to the NRC.

The terms of reference, inter-alia comprises the following:

a. Formulation of the criteria for determining the qualifications, positive attributes and independence of a Director and recommend to the Board a policy relating to the remuneration for the Directors, Key Managerial Personnel and other employees.
b. Formulation of criteria for evaluation of performance of Independent Directors, the Board and the Committees thereof.

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Corporate Governance Report

c. Devising a policy on diversity of the Board of Directors.
d. Identifying persons who are qualified to become directors and who may be appointed in Senior Management in accordance with the criteria laid down and to recommend to the Board of Directors their appointment and removal.
e. Whether to extend or continue the term of appointment of the Independent Director on the basis of the report of performance evaluation of Independent Directors.
f. Recommend to the board all remuneration in whatever form, payable to senior management.

The Board has carried out the evaluation of the Board of Directors during the year in terms of the criteria laid down by the NRC, details of which have been covered in the Director’s Report forming part of this Annual Report.

The Chairperson of the Committee was present at the AGM of the Company held on June 23, 2020.

Attendance at the meetings of the NRC held during financial year 2020-21

The Committee held its meeting on May 8, 2020.

Members	Meeting held	Meetings
Shri Vijay Kumar Sharma Smt. Chhaya Virani Shri Bimal Julka* Shri K Ravikumar# Shri D J Kakalia#	during the FY NA NA NA 1 1	Attended NA NA NA 1 1
Smt Rashna Khan#	1	1

*Appointed as member of the Committee w.e.f. October 15, 2020.

Ceased to be a member of the Committee w.e.f. September 25, 2020.

The Company has not paid any remuneration to its Directors other than sitting fees for attending the meeting of the Board and Committee(s). Pursuant to the limits approved by the Board, all non-executive directors were paid sitting fees of ` 40,000 (excluding goods and services tax) for attending each meeting of the Board and its Committee(s). No remuneration was paid by way of commission to the non-executive directors. The Company has so far not issued any stock options to its non-executive directors. There were no other pecuniary relationships or transactions of non-executive directors vis-à-vis the Company.

During the year, in terms of the approval granted by the shareholders, Shri K.Raja Gopal, Whole-time Director & Chief Executive Officer was paid remuneration as follows:

( ` in lakhs)

SN	Particulars	Amount
1	Remuneration	221.50
2	Performance Link Incentives	34.67
3	Perquisites*	-
4	Benefts,bonuses,stock options, pension,etc	31.37
	Total	287.54

Service, Contracts, Notice Period, Severance fees - He has a binding service contract with functions and duties of a Whole-time Director and Chief Executive Officer.

The above remuneration is as per the Policy on appointment and remuneration for Directors, Key Managerial Personnel and Senior Management Employees. .

IV. Stakeholders Relationship Committee

The Stakeholders Relationship Committee (‘SRC’) of the Board constituted in terms of Section 178 of the Act and Listing Regulations.

The Committee was re-constituted by the Board of Directors of the Company on October 15, 2020.

The Committee comprises of Shri Vijay Kumar Sharma as Chairperson, Shri Bimal Julka and Shri K. Raja Gopal as members as on March 31, 2021.

The terms of reference, inter alia , comprises the following:

a. Resolve the grievances of the security holders of the listed entity including complaints related to transfer / transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings etc.
b. Review of measures taken for effective exercise of voting rights by shareholders.
c. Review of adherence to the service standards adopted by the listed entity in respect of various services being rendered by the Registrar & Share Transfer Agent.
d. Review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the company

The Chairman of the Committee was present at the AGM of the Company held on June 23, 2020.

Attendance of members at the meeting of the SRC held during financial year 2020-21:

During the year, the Committee held its meetings on May 08, 2020, July 30, 2020, October 21, 2020 and January 20, 2021. The maximum gap between any two meetings was 90 days and the minimum gap was 81 days.

Name Shri Vijay Kumar Sharma*	Meeting held during the FY 4	Meetings Attended 2
Shri Bimal Julka*	4	2
Shri D.J. Kakalia#	4	2
Shri K Ravikumar#	4	2
Smt Rashna Khan# Shri K Raja Gopal	4 4	2 3

*Appointed as member of the Committee w.e.f. October 15, 2020

Ceased to be a member of the Committee w.e.f. September 25, 2020.

Company owned car.

Reliance Power Limited

Corporate Governance Report

Shareholders grievances attended

Received from	Received during fnancial year Redressed during fnancial year Pending as on
	2020- 21 2019- 20 2020- 21 2019- 20 2020- 21 2019- 20
SEBI Stock Exchanges NSDL/CDSL Direct from shareholders Total	6 28 6 28 NIL NIL 5 11 5 11 NIL NIL 0 2 0 2 NIL NIL 180 1 180 1 NIL NIL 191 94 191 42 NIL NIL
Analysis of
Particulars
Non receipt of Refund Orders / Credit of shares Non receipt of Refund Orders Non receipt of fractional warrants Non receipt of Annual Report Non receipt of dividend warrant Others Total

There was no complaint, pending as on March 31, 2021. Notes:

The shareholder base was 31,30,552 as of March 31, 2021 and 30,96,881 as of March 31, 2020.
Investors’ queries/ grievances are normally attended within a period of three days from the date of receipt thereof, except in cases involving external agencies or compliance with longer procedural requirements specified by the authorities concerned. The queries and grievances received correspond to percent of the total number of members as of March 31, 2021.
The Company Secretary acts as the Secretary to the Stakeholders Relationship Committee.

V. Corporate Social Responsibility (CSR) Committee

In terms of Section 135 of the Act, the Company has a Corporate Social Responsibility (CSR) Committee. The composition and terms of reference of CSR Committee are in compliance with the applicable provisions of the Act.

The Committee was reconstituted by the Board of Directors of the Company on October 15, 2020.

The Committee comprises of Shri Bimal Julka, Chairperson, Smt Chhaya Virani, Shri Vijay Kumar Sharma, and Shri K. Raja Gopal as members as on March 31, 2021.

The CSR Committee has formulated a CSR policy indicating the activities to be undertaken by the Company.

The CSR policy is also monitored by the Committee from time to time.

The Committee held a meeting during the year on January 20, 2021.

The meetings were attended by the Members as below:

Members	Number of Meetings
	Held during the tenure Attended
Shri Bimal Julka Smt Chhaya Virani Shri Vijay Kumar Sharma Shri K Raja Gopal	1 1 1 1 1 1 1 0
The Company Secretary acts a Committee	s the Secretary to the CSR

VI. Risk Management Committee

The Company has a Risk Management Committee. The composition and terms of reference of Risk Management Committee are in compliance with the provisions of the Listing Regulations.

The Committee was reconstituted by the Board of Directors of the Company on October 15, 2020.

The Risk Management Committee (RMC) comprises of the following Members as on March 31, 2021:

Smt. Chhaya Virani, Chairperson*
Shri Bimal Julka, Director*
Shri Vijay Kumar Sharma, Director*
Shri Shrikant D. Kulkarni, President, Chief Business Officer
Shri Sandeep Khosla, Chief Financial Officer

*Appointed as members of the Committee with effect from October 15, 2020.

The Company Secretary acts as the Secretary to the Risk Management Committee.

During the year, the RMC held its meetings on May 8, 2020, July 30, 2020, October 21, 2020 and January 20, 2021.

The meetings were attended by the Members as below:

Members	Number of Meetings
	Held during the tenure Attended
Shri Bimal Julka Shri Vijay Kumar Sharma Smt. Chhaya Virani* Shri K Raja Gopal^ Shri Shrikant D Kulkarni Shri Sandeep Khosla Shri K Ravikumar# Shri D J Kakalia# Smt Rashna Khan#	4 2 4 2 4 2 4 2 4 4 4 1 4 2 4 2 4 2

Appointed as member of the Committee w.e.f. October 15, 2020
Ceased to be a member of the Committee w.e.f. September 25, 2020
^ Ceased to be a member of the Committee w.e.f. October 15, 2020

The minutes of the meetings of all the committees of the Board of Directors are placed before the board.

Reliance Power Limited

Corporate Governance Report

The terms of reference of the Committee are as under:
a. To formulate a detailed risk management policy which shall include:
- i. A framework for identification of internal and external risks specifically faced by the listed entity, in particular including financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee.
- ii. Measures for risk mitigation including systems and processes for internal control of identified risks.
- iii. Business continuity plan.
b. To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company;
c. To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems;
d. To periodically review the risk management policy, at least once in two years, by considering the changing industry dynamics and evolving complexity;
e. To keep the board of directors informed about the nature and content of its discussions, recommendations and actions to be taken;
f. The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the RMC.
VII. Compliance Officer

Shri Murli Manohar Purohit, Company Secretary is the Compliance Officer for complying with the requirements of various provisions of the Laws, Rules and Regulations applicable to the Company including SEBI Regulations and the Uniform Listing Agreements executed with the Stock Exchanges.

VIII. General Body Meetings

General Body Meetings	General Body Meetings	General Body Meetings
The Company held its last three Annual General Meetings as under:
Financial	Date and	Whether Special Resolution(s)
Year	Time	passed or not (through electronic voting and physical
2019-20	June 23, 2020 – 01.30 P.M.	Ballot) No Special Resolution
2018-19	September 30, 2019 - 12:30 P.M.	Yes Private Placement of Non- Convertible Debentures and/or other Debt Securities
2017-18	September	Yes
	18, 2018 –	a. Appointment of Shri K Raja
	12 Noon	Gopal as the Whole-time
		Director
		b. Private Placement of Non-
		Convertible Debentures
The Annual	General Meetings for 2017-18 were held at
Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai

400 020, for the year 2018-19 it was held at Rama & Sundri Watumull Auditorium, Vidyasagar, Principal K.M.Kundnani Chowk, 124, Dinshaw Wachha Road, Churchgate, Mumbai 400 020 and for 2019-20 it was held through Video Conferencing (VC) / Other Audio Visual Means (OAVM).

During the year there was no Extra-ordinary General Meeting held by the Company.

IX. Postal Ballot

The Company has not conducted any business through Postal Ballot during the financial year 2020-21.

None of the businesses proposed to be transacted in the ensuing Annual General Meeting require passing of a Special Resolution through Postal Ballot.

Details of Utilisation

During the year, the Company has not raised any funds through preferential allotment or qualified institutions placement as specified under Regulation 32(7A) of the Listing Regulations.

XI. Means of Communication
a. Quarterly Results:
- Quarterly Results, in ordinary course, are published in The Financial Express (English) newspaper circulating substantially in the whole of India and in Navshakti (Marathi) newspaper and are also posted on the Company’s website www. reliancepower.co.in.
b. Media Releases and Presentations:
- Official media releases are sent to the Stock Exchanges before their release to the media for wider dissemination. Presentations, if any, made to media, analysts, institutional investors, etc. are posted on the Company’s website.
c. Website:

The Company’s website contains a separate dedicated section called ‘Investor Information’. It contains a comprehensive database of information of interest to our investors including the financial results and Annual Report of the Company, any price sensitive information disclosed to the regulatory authorities from time to time, business activities and the services rendered / facilities extended by the Company to our investors, in an user friendly manner. The basic information about the Company as called for in terms of Listing Regulations is provided on the Company’s website and the same is updated regularly.

d. Annual Report:
The Annual Report containing, inter-alia, Notice of Annual General Meeting, Audited Financial Statement, Consolidated Financial Statement, Directors’ Report, Auditors’ Report and other important information is circulated to members and others entitled thereto. The Management Discussion and Analysis Report and Business Responsibility Report also form part of the Annual Report and are displayed on the Company’s website.

Reliance Power Limited

Corporate Governance Report

The Act read with the Rules made thereunder and the Listing Regulations facilitate the service of documents to members through electronic means. In compliance with the various relaxations provided by SEBI and MCA due to COVID-19 Pandemic, the Company have e-mailed the soft copies of the Annual Report to all those members whose e-mail IDs were available with its Registrar and Transfer Agent or Depositories and urged other members to register their e-mail IDs to receive the said communication.
e. NSE Electronic Application Processing System (NEAPS)
The NEAPS is a web based system designed by NSE for corporates. The Shareholding Pattern, Corporate Governance Report, Corporate Announcements, Media Releases, Financial Results, etc. are filed electronically on NEAPS.
f. BSE Corporate Compliance and Listing Centre (the ‘Listing Centre’)
The Listing Centre is a web based application designed by BSE for corporates. The Shareholding Pattern, Corporate Governance Report, Corporate Announcements, Media Releases, Financial Results, etc. are filed electronically on the Listing Centre.
g. Unique Investor helpdesk: Exclusively for investor servicing, the Company has set up a Unique Investor Help Desk with multiple access modes as under:

Toll free no. (India)	: 1800 309 4001
Telephone no.	: +91 40 6716 1500
Fax no. E-mail	: +91 40 6716 1791 : [email protected]

h. Designated e-mail id: The Company has also designated the e-mail id: reliancepower.investors@relianceada. com exclusively for investor servicing.
i. SEBI Complaints Redress System (SCORES):
The investors’ complaints are also being processed through the centralised web based complaint redressal system. The salient features of SCORES are availability of centralised database of the complaints and uploading online action taken reports by the Company. Through SCORES the investors can view online, the actions taken and current status of the complaints. In its efforts to improve ease of doing business, SEBI has launched a mobile app “SEBI SCORES”, making it easier for investors to lodge their grievances with SEBI, as they can now access SCORES at their convenience of a smart phone.

XII. Management Discussion and Analysis

A Management Discussion and Analysis Report forms part of this Annual Report and includes discussions on various matters specified under Regulation 34(2) read with Schedule V of the Listing Regulations.

XIII. Subsidiaries

All the subsidiary companies are managed by their respective Boards. Their Boards have the rights and obligations to manage such companies in the best interest of their stakeholders.

The Company monitors the performance of its subsidiary companies, inter-alia, by the following means:

a. The minutes of the meetings of the Boards of the subsidiary companies are periodically placed before the Company’s Board.
b. Financial statement, in particular the investments made by the subsidiary companies, are reviewed quarterly by the Audit Committee of the Company.
c. A statement containing all significant transactions and arrangements entered into by the unlisted subsidiary companies is placed before the Audit Committee / Board.
d. Quarterly review of Risk Management process is made by the Risk Management Committee / Audit Committee / Board.

The Company has formulated Policy for Determining Material subsidiaries which can be accessed Company’s website at the link: https://www.reliancepower. co.in/documents/2181716/2364859/Policy_for_ Determining_Material_Subsidiary-new.pdf

One of the Independent Director is appointed to the Board of the subsidiaries as and when a subsidiary becomes an ‘unlisted Material Subsidiary’ within the meaning of the above expression in accordance with Regulation 24 read with Regulation 16 of the Listing Regulations. Keeping in view the above requirement, Independent Director of the Company have been appointed on the Boards of ‘unlisted Material Subsidiary’ viz. Smt Chhaya Virani on the Boards of Sasan Power Limited and Rosa Power Supply Company Limited. She has been made Chairperson of the respective subsidiaries referred to above.

All the unlisted material subsidiaries have undergone Secretarial Audit by a practicing Company Secretary and the secretarial audit report of the Company along with unlisted material subsidiaries are annexed to their annual report.

XIV. Disclosures

a. There has been no non-compliance by the Company on any matter related to capital markets during the last three financial years except for the delay in publication of financial results for the year ended March 31, 2019 due to the situations beyond the control of the Company.
b. Related Party Transactions
During the financial year 2020-21, no transactions of material nature have been entered into by the Company that may have a potential conflict with interest of the Company. The details of Related Party Transactions are disclosed in the Notes to Financial Statements. The policy on dealing with Related Party Transactions including clear threshold limits duly approved by the Board is placed on the Company’s website at web link: https://www.reliancepower.co.in/ documents/2181716/2364859/Policy_for_ Determining_Material_Subsidiary-new.pdf.
c. Accounting Treatment
In the preparation of financial statements for the year 2020-21, the Company has followed the Indian Accounting Standards (“Ind AS”) as prescribed under section 133 of the Act, as applicable. The Accounting Policies followed by the Company to the extent relevant, are set out elsewhere in this Annual Report.

Reliance Power Limited

Corporate Governance Report

d. Code of Conduct
The Company has adopted the Code of Conduct and ethics for Directors and Senior Management. The code has been circulated to all the members of the Board and Senior Management personnel and the same has been posted on the Company’s website www.reliancepower.co.in. The Board members and the Senior Management have affirmed their compliance with the code and a declaration signed by the Whole-time Director of the Company appointed in terms of the Companies Act, 2013, is given below:
‘It is hereby declared that the Company has obtained from all members of the Board and Senior Management personnel of the Company affirmation that they have complied with the Code of Conduct for directors and Senior Management for the year 2020-21.’
- K. Raja Gopal

Whole-time Director & Chief Executive Officer

e. CEO and CFO Certification
Shri K.Raja Gopal, Whole-time Director & Chief Executive Officer and Shri Sandeep Khosla, Chief Financial Officer of the Company, has provided certification on financial reporting and internal controls to the Board as required under Regulation 17(8) of the Listing Regulations.
f. Review of Directors’ Responsibility Statement The Board in its report has confirmed that the annual accounts for the year ended March 31, 2021 have been prepared as per applicable Accounting Standards and Policies and that sufficient care has been taken for maintaining adequate accounting records.
g. Certificate from a Company Secretary in Practice
Pursuant to the provisions of schedule V of the Listing Regulations the Company has obtained a certificate from M/s. Ajay Kumar & Co., Practising Company Secretaries confirming that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and Exchange Board of India / Ministry of Corporate Affairs or any other statutory authority. The copy of the same forms part of this Annual Report.
h. Confirmation by the Board of Directors’ for acceptance of Committees recommendations The Board of Directors confirmed that during the financial year, it has accepted all recommendations of any committees which is mandatorily required.

XV. Policy on Prohibition of Insider Trading

The Company has a Code of Conduct for Prevention of Insider Trading and code for fair disclosure of Unpublished Price Sensitive Information (‘Code’) in accordance with the guidelines specified under SEBI (Prohibition of Insider Trading) Regulations, 2015,
as amended. The Board has appointed Company Secretary as the Compliance Officer under the Code responsible for complying with the procedures, monitoring adherence to the rules for the preservation of price sensitive information, pre-clearance of trade, monitoring of trades and implementation of the Code of Conduct under the overall supervision of the Board. The Company’s Code, inter alia, prohibits purchase and / or sale of securities of the Company by an insider, while in possession of unpublished price sensitive information in relation to the Company and also during certain prohibited periods. The Company’s Code is available on the Company’s website.
Pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, the Trading Window for dealing in the securities of the Company by the designated persons shall remain closed during the period from end of every quarter / year till the expiry of 48 hours from the declaration of quarterly / yearly financial results of the Company.

XVI. Compliance of Regulation 34(3) read with Para F of Schedule V of Listing Regulations

As per Regulation 34(3) read with Para F of Schedule V of Listing Regulations, the Company reports the following details in respect of equity shares lying in suspense account relating to Initial Public Offer (IPO), Bonus Issue and the issue of shares pursuant to the Composite Scheme of Arrangement between the Company and Reliance Natural Resources Limited and Others.

i. Unclaimed Shares Suspense Accounts – IPO and Bonus Issue

The members may note that the Company has received claims from Shareholders for direct transfer of unclaimed equity shares to their respective demat accounts and that the same have been transferred to the demat accounts of the respective shareholders accounts for the year ended March 31, 2021, as under:

SR No.	Particulars	No. of Shareholders	No. of Shares
1.	Aggregate number of	5,667	1,48,013
	shareholders and the outstanding shares lying in suspense account as on April 1, 2020
2.	Number of shareholders who	0	0
	approached issuer for transfer
3. 4.	of shares from Suspense Account during the fnancial year 2020- 21 Number of shareholders to whom Shares were transferred from Suspense Account during the fnancial year 2020-21 Aggregate number of shareholders and the outstanding shares lying in suspense account as on March 31, 2021	0 5,667	0 1,48,013

Reliance Power Limited

Corporate Governance Report

ii. Unclaimed Shares Suspense Account

Arising out of the Composite Scheme of Arrangement between Reliance Natural Resources Limited and Reliance Power Limited & others:

SR No.	Particulars	No. of Shareholders	No. of Shares
1.	Aggregate number of shareholders and the	87,922	9,58,653
	outstanding shares lying in suspense account as on April 1, 2020
2.	Number of shareholders who approached issuer for transfer	4	78
	of shares from Suspense Account during the fnancial
3. 4.	year 2020- 21. Number of shareholders to whom shares were transferred from Suspense Account during the fnancial year 2020-21. Aggregate number of shareholders and the outstanding shares lying in Suspense Account as on March 31, 2021	4 87,918	78 9,58,575

The voting rights on the shares outstanding in the Unclaimed Suspense Accounts as on March 31, 2021 shall remain frozen till the rightful owner of such shares claims the shares.
Wherever the shareholders have claimed the shares, after proper verification, the shares have been credited to the respective beneficiary account.

The Company is not under obligation to transfer to the Investor Education and Protection Fund, shares in respect of which dividend has not been paid or claimed for seven consecutive years or more.

XVII. Fees to Statutory Auditors

The details of fees paid to Statutory Auditors by the Company and its subsidiaries during the year ended March 31, 2021 are as follows:

SN	Particulars	(`in lakhs) M/s. Pathak H. D. & Associates LLP and their network entities
1.	Audit Fees	162
2.	Certifcation	8
	Charges
3.	Other Matters	15
Total		185

XVIII.Disclosure in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

As reported by the Internal Complain Committee, the details of complaints are as under.

SN	Particulars	Details
1.	Number of complaints fled during the fnancial year	Nil
2.	Number of complaints disposed off during the fnancial year	Nil
3.	Number of Complaints pending as on end of the fnancialyear	Nil

XIX. Compliance with non-mandatory requirements

1. The Board

The Company has a non executive Chairman and he is entitled to maintain Chairman’s office at the Company’s expense and also allowed reimbursement of expenses incurred in performance of his duties.

2. Audit qualifications

There are no audit qualifications on the standalone financial statements of the Company for the year 2020-21.

3. Reporting of Internal Auditor

The Internal Auditor reports directly to the Audit Committee of the Company.

XX. General shareholder information

The mandatory and various additional information of interest to investors are voluntarily furnished in a separate section on investor information in this Annual Report.

Certificate on Corporate Governance

The Certificate from Company Secretary in Practice on compliance of Regulation 34(3) of the Listing Regulations relating to Corporate Governance is published in this Annual Report.

Review of governance practices

We have in this report endeavoured to present the governance practices and principles being followed at Reliance Power, as evolved over a period, and as considered as being appropriate to meet the needs of the Company’s business and its Stakeholders.

Our disclosures and governance practices are continually revisited, reviewed and revised to respond to the dynamic needs of our business and ensure that our standards are at par with the globally recognised practices of governance, so as to meet the expectations of all our stakeholders.

Reliance Power Limited

Corporate Governance Report

Compliance of Corporate Governance requirements specified in Regulation 17 to 27 and Regulation 46(2)(b) to (i) of the Listing Regulations

Sr.	Particulars	Regulations	Compliance	Compliance Observed	Compliance Observed
No.			Status
1.	Board of Directors	17	Yes	•	Composition and Appointment of Directors
				•	Meetings and Quorum
				•	Review of compliance reports and compliance certifcate
				•	Plans for orderly succession for appointments
				•	Code of Conduct
				•	Fees / compensation to Non-Executive Directors
				•	Minimum information to be placed before the Board
				•	Compliance Certifcate
				•	Risk assessment and management
				•	Performance evaluation of Independent Directors
				•	Recommendation of the Board for each item of Special
					Business
2.	Maximum No. of	17A	Yes	•	Directorships in listed entity
	Directorships
3.	Audit Committee	18	Yes	•	Composition
				•	Meeting and Quorum of the Committee
				•	Chairperson present at the Annual General Meeting
				•	Role of the Committee
4.	Nomination and	19	Yes	•	Composition
	Remuneration Committee			•	Meeting and Quorum of the Committee
				•	Chairperson present at the Annual General Meeting
				•	Role of the Committee
5.	Stakeholders Relationship	20	Yes	•	Composition
	Committee			•	Meeting and Quorum of the Committee
				•	Chairperson present at the Annual General Meeting
				•	Role of the Committee
6.	Risk Management	21	Yes	•	Composition
	Committee			•	Meeting and Quorum of the Committee
				•	Meetings of the Committee
				•	Role of the Committee
7.	Vigil Mechanism	22	Yes	•	Review of Vigil Mechanism for Directors and employees
				•	Direct access to Chairperson of Audit Committee
8.	Related Party Transactions	23	Yes	•	Policy of Materiality of Related Party Transactions and
					dealing with Related Party Transactions
				•	Approval including omnibus approval of Audit Committee
				•	Review of Related Party Transactions
				•	No material Related Party Transactions
				•	Disclosure of Related Party Transactions on consolidated
					basis

Reliance Power Limited

Corporate Governance Report

Sr.	Particulars	Regulations	Compliance	Compliance Observed	Compliance Observed
No.			Status
9.	Subsidiaries of the	24	Yes	•	Appointment of Company’s Independent Director on the
	Company				Board of the unlisted material subsidiary
				•	Review of fnancial statements and investments of
					subsidiary by the Audit Committee
				•	Minutes of the Board of Directors of the subsidiaries are
					placed at the meeting of the Board of Directors
				•	Signifcant transactions and arrangements of unlisted
					subsidiary are placed at the meeting of the Board of
					Directors
10.	Secretarial Audit &	24A	Yes	•	Secretarial Audit of the Company
	Secretarial Compliance			•	Secretarial Audit of the Unlisted Material Subsidiaries
	Report			•	Annual Secretarial Compliance Report
11.	Obligations with respect to	25	Yes	•	No alternate Directors for independent directors
	Independent Directors			•	Maximum Directorship and tenure
				•	Meetings of Independent Directors
				•	Cessations and Appointment of Independent Directors
				•	Familiarisation of Independent Directors
				•	Declaration by Independent Directors
				•	Director’s and Offcer’s Insurance
12.	Obligations with respect	26	Yes	•	Memberships / Chairmanships in Committees
	to employees including Senior Management, Key			•	Affrmation on compliance of Code of Conduct by Directors and Senior Management
	Managerial Personnel, Directors and Promoters			•	Disclosures by Senior Management about potential conficts of interest
				•	No agreement with regard to compensation or proft sharing
					in connection with dealings in securities of the Company by
					Key Managerial Persons, Director and Promoter
13.	Other Corporate	27	Yes	•	Compliance with discretionary requirements
	Governance requirements			•	Filing of compliance report on Corporate Governance
14.	Website	46(2) (b)	Yes	•	Terms and conditions for appointment of Independent
		to (i)			Directors
				•	Composition of various Committees of the Board of
					Directors
				•	Code of Conduct of Board of Directors and Senior
					Management Personnel
				•	Details of establishment of Vigil Mechanism / Whistle-
					blower policy
				•	Criteria of making payments to non-executive directors, if
					the same has not been disclosed in annual report;
				•	Policy on dealing with Related Party Transactions
				•	Policy for determining material subsidiaries
				•	Details of familiarisation programmes imparted to
					Independent Directors

Reliance Power Limited

Certificate On Corporate Governance

[Pursuant to Regulation 34(3) read with Schedule V (E) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To, The Members Reliance Power Limited Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400001

I have examined the compliance of conditions of Corporate Governance by Reliance Power Limited (‘the Company’) for the year ended March 31, 2021, as per the relevant provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the SEBI Listing Regulations, 2015”) as referred to in Regulation 15(2) of the SEBI Listing Regulations, 2015 for the period from April 01, 2020 to March 31, 2021.

The compliance of conditions of Corporate Governance is the responsibility of the Company’s management and my examination was limited to procedures and implementations thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In my opinion and to the best of my information and according to the explanations given to me, I certify that the Company has complied with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations, 2015.

I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

This Certificate is issued solely for the purposes of complying with the aforesaid Regulations and should not be used by any other person or for any other purpose.

Ajay Kumar (Ajay Kumar & Co.) Practising Company Secretaries FCS No. 3399 Place: Mumbai C.P. No. 2944 Date: 07.05.2021 UDIN: F003399C000255002

Certificate of Non-Disqualification of Directors

(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015) To,

The Members

Reliance Power Limited

Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg,

Ballard Estate, Mumbai 400001

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Reliance Power Limited having CIN L40101MH1995PLC084687 and having registered office at Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400001(hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In my opinion and to the best of my information and according to the verifcations (including Directors Identifcation Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its offcers, I hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31stMarch, 2021 have been debarred or disqualifed
from being appointed or continuing as directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any
other Statutory Authority.
Sr. No. Name of Director DIN Date of appointment in Company Date of Cessation
1. Mr. Anil Dhirajlal Ambani 00004878 30/09/2007 -
2. Mr. Sateesh Seth 00004631 18/07/2014 -
3. Mr. Vijay Kumar Sharma 02449088 26/09/2020 -
4. Mr. Bimal Julka 03172733 26/09/2020 -
5. Ms. Chhaya Virani 06953556 26/09/2020 -
6. Mr. Raja Gopal Krotthapalli 00019958 01/07/2018 -

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This Certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Place: Mumbai Date: 07.05.2021

For, Ajay Kumar & Co. (Ajay Kumar) Proprietor Membership No.: 3399 CP No.: 2944 UDIN: F003399C000254958

Reliance Power Limited

Investor Information

Important Points

Investors should hold securities in dematerialised form, as transfer of shares in physical form is no longer permissible.

As mandated by SEBI, w.e.f. April 1, 2019, request for effecting transfer of securities shall not be processed unless the securities are held in dematerialised form. However, any request for transmission and transposition of securities are exempted from this provision.

Members are advised to dematerialise shares in the Company to facilitate transfer of shares.

Holding securities in dematerialised form is beneficial to the investor in the following manner:

A safe and convenient way to hold securities;
Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.;
Immediate transfer of securities;
No stamp duty on electronic transfer of securities;
Reduction in transaction cost;
Reduction in paperwork involved in transfer of securities;
No odd lot problem, even one share can be traded;
Availability of nomination facility;
Ease in effecting change of address/bank account details as change with Depository Participants gets registered with all companies in which investor holds securities electronically;
Easier transmission of securities as the same is done by Depository Participants for all securities in demat account;
Automatic credit into demat account of shares, arising out of bonus / split / consolidation / merger, etc.
Convenient method of consolidation of folios/ accounts;
Holding investments in Equity, Debt Instruments, Government securities, Mutual Fund Units etc. in a single account;
Ease of pledging of securities; and
Ease in monitoring of portfolio.

Members holding shares in physical mode:

a. are required to submit their Permanent Account Number (PAN) and bank account details to the Company / Company’s RTA, (KFintech.), if not registered with the Company as mandated by SEBI.
b. are advised to register the nomination in respect of their shareholding in the Company.
Nomination Form (SH-13) is put on the Company’s website and can be accessed at link https://www. reliancepower.co.in/web/reliance-power/shareholderservices.
c. are requested to register / update their e-mail address with the Company / KFintech for receiving all communications from the Company electronically.

Members holding shares in electronic mode:

a. are requested to submit their PAN and bank account details to their respective DPs with whom they are maintaining their demat accounts, if not updated.
b. are advised to contact their respective DPs for registering the nomination.
c. are requested to register / update their e-mail address with their respective DPs for receiving all communications from the Company electronically.

Hold Securities in Consolidated Form

Investors holding shares in multiple folios are requested to consolidate their holding in single folio. Holding of securities in one folio enables shareholders to monitor the same with ease.

Link for updating PAN / Bank Details is provided on the website of the Company.

Register for SMS alert facility

Investors should register with Depository Participants for the SMS alert facility. Both depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) alert investors through SMS of the debits and credits in their demat account.

Intimate mobile number

Shareholders are requested to intimate their mobile number and changes therein, if any, to Company’s Registrar and Transfer Agent (RTA), if shares are held in physical form or to their DP if the holding is in electronic form, to receive communications on corporate actions and other information of the Company.

Submit Nomination Form and avoid transmission hassle

Nomination helps nominees to get the shares transmitted in their favour without any hassles. Investors should get the nomination registered with the Company in case of physical holding and with their Depository Participants in case of shares held in dematerialised form.

Form may be downloaded from the Company’s website under the section ‘Investor Information’.

However, if shares are held in dematerialised form, nomination has to be registered with the concerned Depository Participants directly, as per the form prescribed by the Depository Participants.

Deal only with SEBI Registered Intermediaries

Investors should deal only with SEBI registered intermediaries so that in case of deficiency of services, investor may take up the matter with SEBI.

Corporate Benefits in Electronic Form

Investors holding shares in physical form should opt for corporate benefits like split / bonus / consolidation / merger etc. in electronic form by providing their demat account details to Company’s RTA.

Register e-mail address

Investors should register their e-mail addresses with the Company / Depository Participants/ RTA. This will help them in receiving all communications from the Company electronically at their e-mail addresses. This also avoids delay in receiving communications from the Company. Prescribed form for registration may please be downloaded from the Company’s website.

Reliance Power Limited

Investor Information

Course of action in case of non-receipt of interim dividend declared for the financial year 2015-16, revalidation of dividend warrant etc.

Shareholders may write to the Company’s RTA, furnishing the particulars of the dividend not received, and quoting the folio number / DP ID and Client ID particulars (in case of dematerialised shares), as the case may be and provide bank details along with cancelled cheque bearing the name of the shareholder for updating of bank details and payment of unpaid dividend. The RTA may request the concerned shareholder to execute an indemnity before processing the request.

As per a circular dated April 20, 2018 issued by SEBI, the unencashed dividend can be remitted by electronic transfer only and no duplicate dividend warrants will be issued by the Company. The shareholders are advised to register their bank details with the Company / RTA or their DPs, as the case may be, to claim unencashed dividend from the Company.

Facility for a Basic Services Demat Account (BSDA)

SEBI has stated that all the depository participants shall make available a BSDA for the shareholders unless otherwise opted for regular demat account with (a) No Annual Maintenance charges if the value of holding is up to 50,000 and (b) Annual Maintenance charges not exceeding 100 for value of holding from 50,001 to 2,00,000. (Refer Circular No. CIR/MRD/DP/22/2012 dated 27[th] August, 2012 and Circular No. CIR/MRD/DP/20/2015 dated December 11, 2015).

Annual General Meeting

The 27th Annual General Meeting (AGM) will be held on Tuesday, September 14, 2021 at 12.30 p.m. (IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM).

E-voting

The Members can cast their vote online through remote e-voting from 10:00 A.M. on September 10, 2021 to 5:00 P.M. on September 13, 2021. Further, the e-voting facility shall also be made available to the shareholders present at the meeting through Video Conferencing and have not cast their vote on resolution through remote e-voting.

The Members who have cast their votes by remote e-voting prior to the Meeting may also attend the Meeting but shall not be entitled to cast their votes again at the Meeting.

Pursuant to Circular No. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020, SEBI has revised the procedure for e-voting facilities to be provided by listed entities. Members are requested to follow the procedure / instructions provided in the Notes to Notice for the Annual General Meeting pursuant to the aforesaid circular.

Financial Year of the Company

The financial year of the Company is from April 1 to March 31, each year.

Website

The Company’s website www.reliancepower.co.in contains a separate dedicated section called ‘Investor Information’. It contains comprehensive data base of information of interest to our investors including the financial results, annual reports,

dividend declared, any price sensitive information disclosed to the regulatory authorities from time to time, business activities and the services rendered / facilities extended to our investors.

Dedicated E-mail ID for investors

For the convenience of our investors, the Company has designed an e-mail ID i.e. reliancepower.investors@ relianceada.com for investors.

Registrar and Transfer Agent (RTA)

KFin Technologies Private Limited Unit: Reliance Power Limited Selenium Building, Tower – B, Plot No. 31 & 32 Financial District, Nanakramguda Hyderabad Telangana 500 032 Toll free no. (India): 1800 309 4001

Tel no : +91 40 6716 1500, Fax no. : +91 40 6716 1791 E-mail: [email protected] or [email protected] Website : www.kfintech.com

Dividend announcements

The Board of Directors of the Company do not recommend any dividend for the financial year 2020-21.

Share Transfer System by Non-Residents and Foreign Nationals

With a view to address the difficulties in transfer of shares, faced by non-residents and foreign nationals, the Securities and Exchange Board of India vide its circular no. SEBI/HO/ MIRSD/ DOS3/CIR/P/2019/30 dated February 11, 2019, has decided to grant relaxations to non-residents from the requirement to furnish PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives subject to the following conditions:

a. The relaxation shall only be available for transfers executed after January 01, 2016.
b. The relaxation shall only be available to noncommercial transactions, i.e. transfer by way of gift among immediate relatives.
c. The non-resident shall provide copy of an alternate valid document to ascertain identity as well as the nonresident status.

Non-Resident Indian members are requested to inform KFintech, the Company’s Registrar and Transfer Agent immediately on the change in the residential status on return to India for permanent settlement.

Transfer of unclaimed amount to Investor Education and Protection Fund, where necessary.

a) Unclaimed Amounts on company’s IPO

In accordance with the provisions of Section 123 of the Companies Act, 2013 the Company has deposited the unclaimed amount with the Investor Education and Protection Fund (IEPF) maintained by the Central Government. Therefore, members are requested to note that no claims shall lie against the Company in respect of any amounts which were unclaimed and unpaid.

b) Unclaimed fractional bonus warrants

The Company had issued fractional bonus warrants to the members in lieu of their fractional entitlements to

Reliance Power Limited

Investor Information

bonus shares pursuant to the bonus shares allotted to them on June 11, 2008.

Considering the exchange ratio, all the fractional shares which arose pursuant to allotment of bonus shares were consolidated and 11,49,140 shares were sold in the open market and the net sales proceeds of ` 15,24,14,631/were distributed proportionately among the eligible shareholders, to the extent of their entitlement.

Vide notification No. SO-2866(E) dated September 5, 2016 issued by the Ministry of Corporate Affairs (MCA), effective from September 7, 2016, the provisions of Section 124, Sub-sections (1) to (4), (6) and (8) to (11) of Section 125 of the Companies Act, 2013 (the Act), have come into force.

Pursuant to the above, the Company has transferred on January 4, 2017, an amount of Rs 1,62,31,511/representing the amount lying unclaimed / unpaid against the fractional proceeds as stated above, for seven or more years as on December 28, 2016 to the credit of the Investor Education and Protection Fund (IEPF) established by the Central Government.

c) Unclaimed Fractional Warrants - Composite Scheme of Arrangement

The Company had issued to the shareholders of Reliance Natural Resources Limited fractional warrants against the sale proceeds arising out of the consolidation and disposal of their fractional entitlements consequent upon the Composite Scheme of Arrangement between Reliance Natural Resources Limited (‘RNRL’) and Reliance Power Limited (‘the Company’ or ‘RPower’) and others, as approved by the Hon’ble High Court of Judicature at Bombay, vide its order dated October 15, 2010.

Pursuant to the above, the Company on February 12, 2018 has transferred an amount of ` 2,89,39,055/representing the amount lying unclaimed / unpaid against the fractional proceeds, for seven or more years as on January 15, 2018 to the credit of the Investor Educational & Protection Fund (IEPF) established by the Central Government.

Members may please note that, in view of the above, any claim for refund of the amounts stated in (a), (b) and (c) above will have to be preferred by the claimants with the IEPF Authority after following the procedure as prescribed in the relevant Rules.

d) Unclaimed Interim Dividend declared for Financial Year 2015-16

The Company has declared interim dividend for the financial year 2015-16. Members who have not so far encashed their dividend warrants or have not received the dividend warrants are requested to claim the unencashed amount by sending personalized cancelled cheque leaf along with a request letter duly signed by communicating with our RTA, KFin Technologies Private Limited, for payment of their unclaimed amounts due.

The Company shall upload the details of unpaid and unclaimed dividend on the website of the Company in terms of the requirements of the Investor Education and Protection Fund (uploading of information regarding unpaid and unclaimed amounts lying with the companies) Rules, 2012, in due time.

The dividend and other benefits, if any, for the following years remaining unclaimed for seven years from the date of declaration are required to be transferred by the Company to IEPF and the various dates for transfer of such amount are as under:

|Dividend
Dividend
Per Share() **Date of** **Declaration** **Due for** **transfer on** **Amount lying in the unpaid** **dividend account**|**Dividend** **Dividend** **Per Share(**)
Date of
Declaration
Due for
transfer on
Amount lying in the unpaid
dividend account|
|---|---|
|Interim Dividend
1
09/11/2015
15/12/2022
29,883,091||
|Shareholding Pattern||
|Category of shareholders|As on March 31, 2021
As on March 31, 2020|
||Number of shares
%
Number ofshares
%|
|A
Shareholding of Promoter and Promoter Group
i Indian
ii Foreign
Total shareholding of Promoter and Promoter Group
B
Public shareholding
i Institutions
ii Non-institutions
Total Public shareholding
C
Shares held by Custodian against which depository receipts
have been issued
Grand Total (A)+(B)+(C)+(D)|25,42,27,079
9.06
54,09,64,533
19.29
0
0
0.00
25,42,27,079
9.06
54,09,64,533
19.29
17,96,17,939
6.40
34,34,53,004
12.24
2,37,07,26,434
84.51
1,92,01,53,915
68.45
2,55,03,44,373
90.92
2550344373
80.69

5,55,014
0.02
5,55,014
0.02
2,80,51,26,466
100.00
2,80,51,26,466
100.00|

Reliance Power Limited

Investor Information

Distribution of Shareholding

Number of	Number	of	Total Shares	Total Shares	Number of		Total Shares
shares	shareholders as on		as on		shareholders as on		as on
	March 31, 2021		March 31, 2021		March 31, 2020		March 31, 2020
	Number	%	Number	%	Number	%	Number	%
Up to 500	28,89,684	92.31	15,40,79,660	5.49	29,08,142	93.91	14,95,34,274	5.33
501 - 5000	1,94,437	6.21	31,61,74,083	11.27	1,52,334	4.92	24,06,20,320	8.58
5001 -100000	43,790	1.40	79,82,33,960	28.46	34,430	1.11	62,16,24,599	22.16
Above 100000	2,641	0.08	1,53,66,38,763	54.78	1,975	0.06	1,79,33,47,273	63.93
	31,30,552	100.00	2,80,51,26,466	100.00	30,96,881	100.00	2,80,51,26,466	100.00

Dematerialisation of Shares and Liquidity

The Company has admitted its shares to the depository system of National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for dematerialisation of shares. The International Securities Identification Number (ISIN) allotted to the Company is INE614G01033. The equity shares of the Company are compulsorily traded in dematerialised form as mandated by the SEBI.

Status of Dematerialisation of Shares

As on March 31, 2021, 99.76 per cent of the Company’s equity Shares are held in dematerialised form.

Legal Proceedings

There are certain pending cases relating to non-receipt of refund orders and non-credit of shares in demat account, in which the Company has been made a respondent. These cases are however, not material in value.

Equity Capital Build-up

Dates Particulars of issue	No. of shares Cumulative No. of shares Nominal value of shares
	(in ‘000) (in ‘000) (`in crore)
Up to 31.01.2008 Allotment(s) made prior to Initial Public Offering (IPO) 01.02.2008 Allotment of shares pursuant to Initial Public Offering (IPO) 11.06.2008 Issue of Bonus shares 12.11.2010 Allotment of shares pursuant to Scheme of Arrangement between Reliance Natural Resources Limited and the Company 25.03.2011 Allotment of shares pursuant to conversion of 4.928 per cent Foreign CurrencyConvertible Bond	20,00,000 20,00,000 2,000.00 2,60,000 22,60,000 2,260.00 1,36,800 23,96,800 2,396.80 4,08,283 28,05,083 2,805.08 43 28,05,126 2,805.13
Credit Rating
Rating Agency Type of Instrument Rating as on April 1, 2020 Rating as on March 31, 2021
ICRA Limited A. Non-Convertible Debentures (NCD) Programme Long Term : D ISSUER NOT COOPERATING Long Term : D ISSUER NOT COOPERATING B. Commercial Paper / Short -term debt Programme / Non Convertible Debentures (with maturity of less than one year) Rating mandate withdrawn Rating mandate already withdrawn in FY 2020 C. Line of Credit i.Long Term Non fund based (BG and LC) ii. Short Term Non fund based(BG and LC) iii. Long Term Loans iv. Long Term Fund based i.Long Term : D ISSUER NOT COOPERATING ii. Short Term : D ISSUER NOT COOPERATING iii. Long Term : D ISSUER NOT COOPERATING iv. Long Term : D ISSUER NOT COOPERATING i. Long Term : D ISSUER NOT COOPERATING ii. Short Term : D ISSUER NOT COOPERATING iii. Long Term : D ISSUER NOT COOPERATING iv. Long Term : D ISSUER NOT COOPERATING

Notes: The ratings remained constant in FY 2020-21

Reliance Power Limited

Investor Information

Stock Price and Volume

Stock Price and Volume
Financial Year 2020–21	BSE NSE
	High Low Volume No. of shares High Low Volume No. of shares
April-20 May-20 June-20 July-20 August-20 September-20 October-20 November-20 December-20 January-21 February-21 March-21	2.62 1.27 12,00,36,361 2.30 1.25 10,39,92,146 2.27 1.66 8,66,57,057 2.30 1.70 18,23,95,507 4.54 1.91 20,33,92,769 4.25 1.90 20,21,40,211 5.23 3.17 50,06,42,623 4.85 3.15 84,14,13,856 4.13 3.31 20,35,14,421 4.10 3.30 51,82,66,772 3.49 2.53 10,52,25,910 3.50 2.50 30,23,16,485 3.80 2.42 16,91,15,287 3.80 2.40 65,39,27,029 3.53 2.92 6,51,08,912 3.55 2.90 21,05,32,097 4.31 3.02 13,79,25,716 4.25 3.00 24,07,24,595 3.99 3.15 8,65,97,217 3.95 3.15 22,60,42,651 4.30 3.01 22,66,11,593 4.25 3.05 50,70,07,850 5.68 4.08 47,89,07,455 5.60 4.10 96,00,04,580

(Source: This information is compiled from the data available on the websites of BSE and NSE)

Stock Exchange Listings

The Company’s equity shares are actively traded on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE), the Indian Stock Exchanges.

Listing on Stock Exchanges

Equity Shares

Listing on Stock Exchanges Equity Shares
BSE Limited	National Stock Exchange of
	India Limited
Phiroz Jeejeebhoy Towers	Exchange Plaza, Plot No,
Dalal Street, Mumbai 400 001	C/1, G Block, Bandra-Kurla Complex, Bandra (East),
website : www.bseindia.com	Mumbai 400 051
	website : www.nseindia.com

Stock Exchange on which Company’s Global Depository Receipts (GDRs) are listed (Effective from May 17, 2011)

Luxembourg Stock Exchange Societe de la Bourse de Luxembourg 35A Boulevard Joseph II, L-1840 Luxembourg website : www.bourse.lu

Depository for GDR holders

Depository	Custodian
Deutsche Bank Trust	Deutsche Bank AG
Company Americas, 60	Mumbai Branch
Wall Street New York 10005	222, Kodak House, Post Box No.1142 Fort, Mumbai 400 001

Stock Codes/Symbol

tock Codes/Symbol
BSE Limited	: 532939
National Stock Exchange of India Limited	: RPOWER
ISIN for equity shares	: INE614G01033

Security Code for GDRs

	ISIN	CUSIP	Common
			Code
Rule 144A	US75950V1035	75950V103	56264027
GDRs
Regulation	US75950V2025	75950V202	56264019
S GDRs

Note: The GDRs have been admitted for listing on the official list of the Luxembourg Stock Exchange and for trading on the Euro MTF market. The Rule 144A GDRs have been accepted for clearance and settlement through the facilities of the DTC, New York. The Regulation S GDRs have been accepted for clearance and settlement through the facilities of Euroclear and Clearstream, Luxembourg.

Outstanding GDRs of the Company and likely impact on equity

Outstanding GDRs as on March 31, 2021 represent 5,55,014 equity shares constituting 0.02 percent of the paid up equity share capital of the Company. Each GDR represents one underlying equity share in the company.

Reliance Power Limited

Investor Information

Debt Securities

Following Debt Securities are listed on the Wholesale Debt Market (WDM) segment of BSE:

Debentures	ISIN	Date of	Date of	Total Size
		Allotment	Maturity	(`in Crore)
Series I (2018) – Rated, Listed, Secured, Redeemable,	INE614G07063	28-03-2018	28-03-2025	545
Non-Convertible Debentures (NCDs)
Series III (2017) – 8% Rated, Listed, Secured,	INE614G07089*	10-07-2017	30-06-2035	250
Redeemable, Non-Convertible Debentures (NCDs)

The Company has issued Non Convertible Debentures Series III (2017) (ISIN: INE614G08079) on July 10, 2017.

Debenture Holders and the Debenture Trustee vide their consent on June 27, 2018 agreed to extend maturity of these NCDs for a further period of 300 days from June 29, 2018 to April 25, 2019 along with change in rate of interest from 10.20% to 10.75% p.a. payable Semi annually.BSE In principal approval was received on July 02, 2018.

Further Debenture Holders and the Debenture Trustee vide their consent on April 24, 2019 have agreed to extend maturity of the said NCDs for a further period of 396 days from April 25, 2019 to May 25, 2020 along with change in certain terms and rate of interest from 10.75% to 13.71% p.a. payable Semi annually. BSE In principal Approval was received on April 25, 2019.

Further Debenture Holders and the Debenture Trustee vide their consent on June 30, 2020 and July 14, 2020 respectively have agreed to extend maturity of the said NCDs for a further period of 15 years upto June 30, 2035 along with change in certain terms and rate of interest from 13.71% p.a. payable Semi annually to 8% p.a payable entirely at the end of the tenure i.e June 30, 2035. BSE In principal Approval was received on July 23, 2020 and Final approval was received on October 21, 2020.

Debenture Trustee

IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17 R. Kamani Marg, Ballard Estate, Mumbai 400 001.

Payment of Listing Fees

Annual listing fee for the year 2020-21 has been paid by the Company to the stock exchanges.

Share Price Performance in comparison with broad based indices - Sensex (BSE) and Nifty (NSE) as on March 31, 2021:

Period FY 2020-21	RPower (%) 248	Sensex (%) 68.01	Nifty (%) 70.87

Note: The equity shares of the Company were listed on BSE and NSE effective from February 11, 2008.

Commodity price risks or foreign exchange risk and hedging activities

The Company does not have any exposure to commodity price risks. However, the foreign exchange exposure and the interest rate risk have not been hedged by any derivative instrument or otherwise.

Key financial reporting dates for the financial year 2021-22

Key fnancial reporting dates for 2021-22	the fnancial yea
Unaudited results for the First Quarter ending June 30, 2021 :	On or before August 14, 2021
Unaudited results for the Second Quarter and half year ending September 30, 2021 : Unaudited results for the Third Quarter ending December 31, 2021 : Audited results for the Financial Year 2021-22 :	On or before November 14, 2021 On or before February 14, 2022 On or before May 30, 2022

Depository Services

For guidance on depository services, shareholders may write to the Company’s RTA or NSDL, Trade World, A Wing, 4th and 5th Floors, Kamala Mills Compound, Lower Parel, Mumbai 400 013, website: www.nsdl.co.in or CDSL, Unit No. 250, A Wing, Marathon Futurex, A-Wing, 25th floor, NM Joshi Marg, Lower Parel, Mumbai 400013, website: www.cdslindia.com.

Communication to Members

The quarterly financial results of the Company were declared within 45 days of the end of the quarter. The Audited Accounts of the Company were announced within 60 days from the close of the financial year as per the Listing Regulations. The Company’s media releases and details of significant developments are also made available on the Company’s website: www.reliancepower.co.in. In addition, these are published in leading newspapers.

Reconciliation of Share Capital Audit

The Securities and Exchange Board of India has directed that all issuer companies shall submit a report reconciling the total shares held in both the depositories, viz. NSDL and CDSL and in physical form with the total issued / paid up capital. The said certificate, duly certified by a qualified Chartered Accountant / Company Secretary is submitted to the Stock Exchanges where the securities of the Company are listed within 30 days from the end of each quarter and the certificate is also placed before the Board of Directors of the Company.

Investors’ correspondence may be addressed to the Registrar and Transfer Agent of the Company

Shareholders / Investors are requested to forward documents related to share transfer, dematerialisation requests (through their respective Depository Participant) and other related correspondence directly to KFin Technologies Private Limited at the below mentioned address for speedy response.

Reliance Power Limited

Investor Information

KFin Technologies Private Limited Shareholders / Investors can also send their complaints Unit: Reliance Power Limited / grievances and other correspondence to the Compliance Selenium Building, Tower – B Officer of the Company at the following address: Plot No. 31 & 32 The Company Secretary Financial District, Nanakramguda Reliance Power Limited Hyderabad Reliance Centre, Ground Floor, Telangana PIN 500 032 19, Walchand Hirachand Marg, E-mail: [email protected] Ballard Estate, Mumbai 400 001 Tel. No. : +91 22 4303 1000 Fax No. : +91 22 4303 3166

E-mail: [email protected]

Plant Locations

A.	Name of the Company	Plant Capacity	Plant Location
i.	Reliance Power Limited	45 MW Wind Power	Village: Vashpet, Maharashtra
B.	Name of the Subsidiary Company	Plant Capacity	Plant Location
i.	Sasan Power Limited	3,960 MW Coal Power (6 x 660 MW)	Near Village Sasan, Dist.
			Singrauli, Madhya Pradesh
ii.	Rosa Power Supply Company Limited	1,200 MW Coal Power (4 x 300 MW)	Administrative Block, Hardoi
			Road, P.O. Rosar Kothi,
			Tehsil : Sadar, Rosar Kothi,
			Shahjahanpur, 242 401 U.P.
iii.	Vidarbha Industries Power Limited	600 MW Coal Power (2 x 300 MW)	Butibori, Dist. Nagpur,
			Maharashtra
iv.	Dhursar Solar Power Private Limited	40 MW Solar Power	Village Dhursar, Dist. Jaisalmer,
			Rajasthan
v.	Rajasthan Sun Technique Energy Private	100 MW Solar Power	Village Dhursar, Dist. Jaisalmer,
	Limited		Rajasthan

In addition, certain projects are under implementation as per details provided in the Management Discussion and Analysis Report.

Reliance Power Limited

Independent Auditors’ Report

To the Members of Reliance Power Limited Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Reliance Power Limited (“the Company”), which comprise the standalone balance sheet as at March 31, 2021, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”) .

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and profits and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (the “ICAI”) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other

ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note no. 23 of the standalone financial statements, wherein the Company has loans that have fallen due for repayments and the loans which have been fallen due of subsidiary companies for which the Company is a guarantor and its current liabilities exceeds current assets indicate that material uncertainty exists that may cast a significant doubt on the Company’s ability to continue as a going concern. However, for the reasons more fully described in the aforesaid note, the accounts of the Company have been prepared as a Going Concern. Our opinion is not modified in respect of this matter.

Emphasis of Matter

We draw attention to Note no. 27 of the standalone financial statements, as regards to the management evaluation of impact of COVID – 19 on the future performance of the Company. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matters described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the Key Audit Matters to be communicated in our report.

statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (the “ICAI”) together with the ethical requirements that are relevant to our audit of the standalone fnancial statements under the provisions of the Act and the Rules thereunder, and we have fulflled our other	our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matters described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the Key Audit Matters to be communicated in our report.
The Key Audit Matter	How the matter was addressed in our audit
Investments – evaluation of fair value of investments
The Company has investments in subsidiaries and associates. These investments are recognised at fair value through other comprehensive income. Determination of fair value is subject to a signifcant level of judgment. Therefore, there is a risk that the value of investments may be misstated. Refer to note 3.3 (a) – “Investments” of the standalone fnancial statements.	Besides obtaining an understanding of management’s processes and controls with regard to testing the impairment of investment in unquoted equity and preference instruments in subsidiaries, our procedures included the following: - Perused fair valuation reports of signifcant investments obtained from an independent external valuation expert engaged by the Company. - Evaluated the appropriateness of the Company’s assumptions with comparable benchmarks in relation to key inputs such as long-term growth rates and discount rates; - Assessed the appropriateness of the forecast cash fows within the budgeted period based on our understanding of the business; - Considered historical forecasting accuracy, by comparing previously forecasted cash fows to actual results achieved; - Performed a sensitivity analysis in relation to key assumptions; and - Evaluated the appropriateness of the related disclosures in Note 3.3(a) of the standalone fnancial statements.

Reliance Power Limited

Independent Auditors’ Report

Independent Auditors’ Report	Independent Auditors’ Report
Loans and advances and Other receivables – evaluation of adequacy ofprovision for loans and advancesgiven
The Company has granted loans and advances to subsidiaries and other companies and also has receivables from various parties. These loans and receivables are tested for impairment annually. If impairment exists, the recoverable amounts of the loans and receivables are estimated in order to determine the extent of the impairment loss, if any. Determination of whether there exists any impairment in the value of loans and receivables is subject to a signifcant level of judgment. Therefore, there is a risk that the value of loans and receivables may be misstated. Refer to note 3.3(b) and 3.5(d) – of the standalone fnancial statements.	Our procedures included the following: - Obtained independent confrmation of balances outstanding from recipients and traced the amounts confrmed to the books of account; - Verifed whether the requisite approvals were obtained for the loan given and ensured other compliances as required by the applicable regulation; - Perused the audited fnancial statements of those entities to evaluate whether its net assets, being an approximation of its minimum recoverable amount, were in excess of the amounts due for assessing the repayment capability of the concerned entity; - Verifed the adequacy of the provision made by management, where applicable; - Evaluated the adequacy of the related disclosures in note 3.3(b) and 3.5(d) of the standalone fnancial statements.

Independent Auditors’ Report

Loans and advances and Other receivables – evaluation of adequacy ofprovision for loans and advancesgiven

The Company has granted loans and advances to subsidiaries and
other companies and also has receivables from various parties.
These loans and receivables are tested for impairment annually.
If impairment exists, the recoverable amounts of the loans and
receivables are estimated in order to determine the extent of the
impairment loss, if any. Determination of whether there exists
any impairment in the value of loans and receivables is subject
to a signifcant level of judgment.
Therefore, there is a risk that the value of loans and receivables
may be misstated. Refer to note 3.3(b) and 3.5(d) – of the
standalone fnancial statements.

Our procedures included the following:
-
Obtained
independent
confrmation
of
balances
outstanding from recipients and traced the amounts
confrmed to the books of account;
-
Verifed whether the requisite approvals were obtained for
the loan given and ensured other compliances as required
by the applicable regulation;
-
Perused the audited fnancial statements of those entities
to evaluate whether its net assets, being an approximation
of its minimum recoverable amount, were in excess of the
amounts due for assessing the repayment capability of the
concerned entity;
-
Verifed the adequacy of the provision made by
management, where applicable;
-
Evaluated the adequacy of the related disclosures in note
3.3(b) and 3.5(d) of the standalone fnancial statements.

Other Information

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in Company’s Annual Report, but does not include the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income/loss, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern

basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Reliance Power Limited

Independent Auditors’ Report

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors’ Report) Order, 2016 (“the Order”) issued by the Central Government in terms of section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(A) As required by section 143(3) of the Act, we report that:
- a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
- b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
- c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
- d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act, read with relevant rules made thereunder.
e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2021 from being appointed as a director in terms of section 164(2) of the Act.
f) The going concern matter described in Material Uncertainty Related to Going Concern section above, in our opinion, may have an adverse effect on the functioning of the Company
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure B”.
h) With respect to the matter to be included in the Auditors’ Report under section 197(16) of the Act:
- In our opinion and according to the information and explanations given to us, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by provisions of section 197 read with Schedule V to the Act. The Ministry of Corporate Affairs has not prescribed other details under section 197(16) of the Act which are required to be commented upon by us.
(B) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2021 on its financial position in its standalone financial statements - Refer Note 4 to the standalone financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For Pathak H. D. & Associates LLP

Chartered Accountants

Firm’s Registration No:107783W/W100593

Vishal D. Shah

Partner Membership No:119303 UDIN: 21119303AAAAJM1077

Place: Mumbai Date: May 07, 2021

Reliance Power Limited

Annexure A to Independent Auditors’ Report

Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report in the Independent Auditors’ Report of even date to the Members of Reliance Power Limited on the standalone financial statements as of and for the year ended March 31, 2021

i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of its fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets, by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, a portion of the fixed assets have been physically verified by the Management during the year and no material discrepancies between the book records and the physical fixed assets have been noticed.
(c) According to the information and explanations given to us and records examined by us, the title deeds of freehold land are in the name of erstwhile company i.e., Reliance Clean Power Private Limited which has merged with the Company under section 391 to 394 of the Companies Act, 1956 pursuant to the scheme of amalgamation approved by Honorable High Court, with an appointed date of April 1, 2012.
ii. The Company does not hold any inventory. Accordingly, the provisions of Clause 3(ii) of the said Order are not applicable to the Company.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to any company, firm, limited liability partnership or other party covered in the register maintained under Section 189 of the Act. Accordingly, the provisions stated in paragraph 3(iii)(a),(b) & (c) of the Order are not applicable.
iv. Based on the information and explanations given to us in respect of loans, investments, guarantees and securities,

the Company has complied with the provisions of sections 185 and 186 of the Act, to the extent applicable.

v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the Rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company in respect of sale of electricity where the maintenance of cost records has been specified by the Central Government under subsection (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been prepared and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues in respect of income tax, though there has been a slight delay in a few cases and is regular in depositing undisputed statutory dues, including provident fund, goods and services tax, and other material statutory dues, as applicable, with the appropriate authorities. There are no undisputed amounts payable in respect of such applicable statutory dues as at March 31, 2021 for a period of more than six months from the date they became payable. As explained to us, the Company did not have any dues on account of value added tax, employee state insurance, sales tax, cess, duty of customs and duty of excise. Refer note 4 of standalone financial statements.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income-tax and entry tax as at March 31, 2021 which has not been deposited on account of dispute is as under:

Name of Statute	Nature of Dues	Amount (`in lakhs)	Period to which it relates	Forum where dispute is pending
Income Tax Act, 1961	Income Tax	474	A.Y. 2011-12	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Income Tax Act, 1961	Income Tax	19	A.Y. 2012-13	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Income Tax Act, 1961	Income Tax	2,921	A.Y. 2014-15	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Income Tax Act, 1961	Income Tax	1,935	A.Y. 2015-16	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Income Tax Act, 1961	Income Tax	2,380	A.Y. 2016-17	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Income Tax Act, 1961	Income Tax	3,241	A.Y. 2017-18	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Income Tax Act, 1961	Income Tax	3,157	A.Y. 2018-19	Commissioner ofIncome Tax(Appeals) [CIT(A)], Mumbai
Subtotal(a)		14,127
Entry Tax Act, 1976, Korba, Chattissgarh	Entry Tax	35	F.Y. 2010-11	Deputy Commissioner, Commercial Tax, Bilaspur, Chattissgarh, CTO Circle 2-Korba
Subtotal(b)		35
Total(a+b)		14,162

Reliance Power Limited

Annexure A to Independent Auditors’ Report

viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institutions and banks and in payment of dues to the debenture holders except for the following instances of default in repayment of principal amounts and interest:

Sr. Name of Lender		Borrowings	Interest
		Amount (`in lakhs)<br>Period<br>(Maximum days)\|Amount<br>(`in lakhs) Period (Maximum days)
I Loan from Banks 1 Axis Bank 2 Yes Bank 3 Axis Bank - Gift City 4 DBS India 5 IDBI Bank 6 ICICI Bank II Non Convertible Debentures 7 Yes Bank		6,960 457 52,458 791 517 90 63 1 - - 17,213 805 - - 77,211	1,649 457 19,114 791 171 90 363 59 15 30 8,412 791 9,419 185 39,143

The Company did not have any loans or borrowings from Government during the year.

ix. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any monies by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
xi. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the provisions of Section 197 read with Schedule V to the Act.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with them. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company, as legally advised, is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company. (Refer note 7 of the standalone financial statements).

For Pathak H. D. & Associates LLP

Chartered Accountants

xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and accordingly the provisions of the clause 3(xii) of the Order are not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, in our opinion, transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of the Act. The details of related party transactions as required under Ind AS 24, Related Party Disclosures specified under Section 133 of the Act, have been disclosed in the standalone financial statements.

Firm’s Registration No:107783W/W100593

Vishal D. Shah

Partner

Membership No:119303

UDIN: 21119303AAAAJM1077

Place: Mumbai

Date: May 07, 2021

Reliance Power Limited

Annexure B to Independent Auditors’ Report

Annexure B to the Independent Auditors’ Report on the standalone financial statements of Reliance Power Limited for year ended March 31, 2021

Report on the Internal Financial Controls with reference to the aforesaid standalone financial statements under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013

(Referred to in Paragraph 1(A)(g) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

We have audited the internal financial controls with reference to standalone financial statements of Reliance Power Limited (“the Company”) as of March 31, 2021 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (“Guidance Note”) issued by the Institute of Chartered Accountants of India (the “ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to standalone financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements were established and maintained and whether such controls operate effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risk of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion

on the Company’s internal financial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, and to the best of our information and explanation given to us, the Company has, in all material respects, maintained adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to financial statements were operating effectively as of March 31, 2021, based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India

For Pathak H. D. & Associates LLP

Chartered Accountants Firm’s Registration No:107783W/W100593

Vishal D. Shah

Partner Membership No:119303 UDIN: 21119303AAAAJM1077

Place: Mumbai Date: May 07, 2021

Reliance Power Limited

Balance Sheet as at March 31, 2021

Balance Sheet as at March 31, 2021

Particulars Note No.	As at March 31, 2021
ASSETS Non-current assets Property, plant and equipment 3.1 Intangible assets 3.2 Financial assets: Investments 3.3(a) Loans 3.3(b) Other fnancial assets 3.3(c) Non-current tax assets 3.4 Total Non-current Assets Current assets Financial assets: Trade receivables 3.5(a) Cash and cash equivalents 3.5(b) Bank balances other than cash and cash equivalents 3.5(c) Loans 3.5(d) Other fnancial assets 3.5(e) Other current assets 3.6 Total Current Assets Assets classifed as held for sale 3.7 Total Assets EQUITY AND LIABILITIES Equity Equity share capital 3.8 Other equity 3.9 Total Equity Liabilities Non-current liabilities Financial liabilities Borrowings 3.10(a) Other fnancial liabilities 3.10(b) Provisions 3.11 Total Non-current liabilities Current liabilities Financial liabilities Borrowings 3.12(a) Trade payables 3.12(b) Total Outstanding dues of micro enterprises and small enterprises Total Outstanding dues of creditors other than micro enterprises and small enterprises Other fnancial liabilities 3.12(c) Other current liabilities 3.13 Provisions 3.14 Total Current liabilities Total Equity and Liabilities Signifcant accounting policies 2 Notes to fnancial statements 3 to 30 The accompanying notes are an integral part of these fnancial statements. @ Amount is below the rounding off norms adopted by the Company	26,137 - 14,10,778 1,33,278 322 3,661 15,74,176 6,028 171 439 72,942 1,02,895 141 1,82,616 - 17,56,792 2,80,513 6,08,151 8,88,664 78,015 905 2 78,922 5,17,361 @ 1,227 2,70,514 32 72 7,89,206 17,56,792

Reliance Power Limited

Statement of Profit and Loss for the year ended March 31, 2021

		`in lakhs
Particulars Note No.	Year ended March 31, 2021	Year ended March 31, 2020
Revenue from Operations 3.15 Other Income 3.16(a) Total Income Expenses Employee benefts expense 3.17 Finance costs 3.18 Depreciation and amortisation expense 3.1 & 3.2 Other expenses 3.19 Total expenses Proft/ (Loss) before exceptional items and tax Exceptional items 22(b) Provision for advances Proft/ (Loss) before tax Income tax expense 14 Current tax Deferred tax Proft/ (Loss) from Continuing Operations Discontinuing Operations: Proft before tax from Discontinuing Operations 3.16(b) Tax Expense of Discontinuing Operations Proft from Discontinuing Operations Proft/ (Loss) for the year Other Comprehensive Income Items that will not be reclassifed to proft or loss Remeasurements of post-employment beneft obligation (net) Changes in fair value of equity instruments in subsidiaries Other Comprehensive Income / (loss) for the year Total Comprehensive Income/ (loss) for the year Earnings per equity share: (Face value of`10 each)<br>13<br>Basic and Diluted (`) - for Continuing Operations Basic and Diluted (`) - for Discontinuing Operations<br>Basic and Diluted (`) - for Continuing and Discontinuing Operations Signifcant accounting policies 2 Notes to fnancial statements 3 to 30 The accompanying notes are an integral part of these fnancial statements.	3,907 48,305 52,212 662 42,442 1,601 1,973 46,678 5,534 - 5,534 - - 5,534 - - - 5,534 109 2,329 2,438 7,972 0.197 - 0.197	5,353 28,589
		33,942
		745 48,726 1,588 2,311
		53,370
		(19,428) (19,456)
		(38,884)
		- -
		(38,884)
		- -
		-
		(38,884)
		(14) (3,65,973)
		(3,65,987)
		(4,04,871)
		(1.386) - (1.386)

As per our attached report of even date	For and on behalf of the	Board of Directors
For Pathak H.D. & Associates LLP	Anil D. Ambani	Chairman
Chartered Accountants	Chhaya Virani
Firm Registration No: 107783W/W100593	Bimal Julka	Director
	Vijay Kumar Sharma
Vishal D. Shah
Partner Membership No: 119303	K. Raja Gopal Sandeep Khosla	Whole-time Director & CEO Chief Financial Offcer
	Murli Manohar Purohit	Company Secretary
Place : Mumbai	Place : Mumbai
Date : May 07, 2021	Date : May 07, 2021

Reliance Power Limited

Reliance Power Limited
Statement of changes in equity as at March 31, 2021 A. Equity Share Capital(Refer note 3.8) `in lakhs<br>Balance as at March 31, 2019<br>2,80,513<br>Changes in equity share capital<br>-<br>Balance as at March 31, 2020<br>2,80,513<br>Changes in equity share capital<br>-<br>Balance as at March 31, 2021<br>2,80,513<br>B.<br>Other Equity(Refer note 3.9)<br>`in lakhs
	Reserve and Surplus	Total	10,05,052 (38,884) (14) (3,65,973)	(4,04,871) (1)	6,00,181
		General Reserve (Arisen pursuant to various schemes)	41,691 - - -	- -	41,691
		Capital Reserve (Arisen pursuant to scheme of amalgamation)	59,995 - - -	- -	59,995
		Equity instruments through Other Comprehensive Income	(1,37,519) - (14) (3,65,973)	(3,65,987) -	(5,03,506)
		Treasury Shares	(845) - - -	- -	(845)
		Foreign currency monetary item translation difference account	1 - - -	- (1)	-
		Debenture Redemption Reserve	4,683 - - -	- -	4,683
		Capital Reserve	1,958 - - -	- -	1,958
		Retained Earnings	(70,366) (38,884) - -	(38,884) -	(1,09,250)
		Securities Premium	11,05,454 - - -	- -	11,05,454
			Balance as at March 31, 2019 Loss for the year Remeasurements of post-employment beneft obligation (net) Changes in fair value of equity instruments in subsidiaries	Total Comprehensive Income / (loss) for the year Amortisation during the year	Balance as at March 31, 2020

Reliance Power Limited


`in lakhs				Total Comprehensive Income for the year - 5,534 - - - - 2,438 - - 7,972 Balance as at March 31, 2021 11,05,454 (1,03,716) 1,958 4,683 - (845) (5,01,068) 59,995 41,691 6,08,151 The accompanying notes are an integral part of these fnancial statements.		As per our attached report of even date For and on behalf of the Board of Directors For Pathak H.D. & Associates LLP Anil D. Ambani Chairman Chartered Accountants Chhaya Virani Firm Registration No: 107783W/W100593 Bimal Julka Director Vijay Kumar Sharma Vishal D. Shah Partner K. Raja Gopal Whole-time Director & CEO Membership No: 119303 Sandeep Khosla Chief Financial Offcer Murli Manohar Purohit Company Secretary Place : Mumbai Date : May 07, 2021 Place : Mumbai Date : May 07, 2021
	Reserve and Surplus	Total	5,534 109 2,329	7,972	6,08,151
		General Reserve (Arisen pursuant to various schemes)	- - -	-	41,691
		Capital Reserve (Arisen pursuant to scheme of amalgamation)	- - -	-	59,995
		Equity instruments through Other Comprehensive Income	- 109 2,329	2,438	(5,01,068)
		Treasury Shares	- - -	-	(845)
		Foreign currency monetary item translation difference account	- - -	-	-
		Debenture Redemption Reserve	- - -	-	4,683
		Capital Reserve	- - -	-	1,958
		Retained Earnings	5,534 - -	5,534	(1,03,716)
		Securities Premium	- - -	-	11,05,454
			Proft for the year Remeasurements of post-employment beneft obligation (net) Changes in fair value of equity instruments in subsidiaries	Total Comprehensive Income for the year	Balance as at March 31, 2021

Reliance Power Limited

Cash Flow Statement for the year ended March 31, 2021

		`in lakhs Year ended March 31, 2020 (38,884) 1,588 48,726 2,356 (6,496) - - 19,456 (7) 8 26,748 208 1,969 116 (508) 4,171 (1,150) 4,806 (836) 30,718 - 1,000 (33,394) (5,000) (651) (1) 11,337 (26,709)
	Year ended March 31, 2021
(A) Cash fow from operating activities Proft / (Loss) before tax Adjusted for : Depreciation and amortisation Finance costs Expense / (Income) on corporate guarantee Interest income Fair valuation gain on ICD and NCD Proft on sale of assets Provision against advances Liabilities written back Provision for leave encashment and gratuity Operating Proft before working capital changes Change in operating assets and liabilities: (Increase) / decrease in trade receivables (Increase) / decrease in other fnancial assets (Increase) / decrease in other current assets Increase / (decrease) in trade payables Increase / (decrease) in other fnancial liabilities Increase / (decrease) in other current liabilities Taxes (paid) (Net) Net cash (used in) / generated from operating activities (B) Cash fow from investing activities Proceeds from sale of property, plant and equipments Interest on bank and other deposits (net) Inter corporate deposits given to subsidiaries (net) Inter corporate deposits given to related parties/ others Other advances to subsidiaries (Net) Loan to employees Fixed deposit (including Margin money deposit) having original maturity of more than three months Net cash (used in) / generated from investing activities	5,534 1,601 42,442 (3,095) (6,208) (28,954) (14) - (2,469) 35 8,872 70 (1,410) (67) (827) (1,236) (434) (3,904) (4) 4,964 23 47 (1,675) - (517) 2 1,382 (738)

Reliance Power Limited

Cash Flow Statement for the year ended March 31, 2021

				`in lakhs Year ended March 31, 2020 31,256 9,296 (15,280) 5,120 (1,810) (10,642) (20,553) (2,006) (4,619) (610) 772 162
		Year ended March 31, 2021
(C) Cash fow from fnancing activities Inter corporate deposits from/ (refund to) subsidiaries (net) Inter corporate deposits received from related party Inter corporate deposit repaid to related party Inter corporate deposits received from others Inter corporate deposit repaid to others Interest and fnance charges Repayment of rupee term loan & working capital Repayment of foreign currency loan Net cash generated from/ (used in) fnancing activities Net (Decrease) / Increase in cash and cash equivalents (A+B+C) Opening Balance of cash and cash equivalents Closing balance of cash and cash equivalents		126 - - 6,615 - (9,245) (448) (1,265) (4,217) 9 162 171

Components of cash and cash equivalents (Refer note 3.5(b))

Note: During the current and previous year there was no cash flows from discontinuing operation from operating, investing and financing activity.

The accompanying notes are an integral part of these financial statements.

Vishal D. Shah Partner Membership No: 119303 Place : Mumbai Date : May 07, 2021

K. Raja Gopal Whole-time Director & CEO Sandeep Khosla Chief Financial Officer Murli Manohar Purohit Company Secretary Place : Mumbai Date : May 07, 2021

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

1. General information

Reliance Power Limited (“the Company”) together with its subsidiaries (“the Reliance Power Group”) is primarily engaged in the business of generation of power. The projects include coal, gas, hydro, wind and solar based energy projects. The portfolio of the Reliance Power Group also includes Ultra Mega Power Projects (UMPPs).

The Company is a public limited company incorporated and domiciled in India under the provisions of the Companies Act, 1956 and its equity shares are listed on two recognised stock exchanges in India. The registered office of the Company is located at Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400 001.

These financial statements were authorised for issue by the Board of Directors on, May 07, 2021.

2. Significant accounting policies and critical accounting estimate and judgments

2.1 Basis of preparation, measurement and significant accounting policies

policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

Compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended and relevant provisions of the Companies Act, 2013 (“the Act”).

Historical cost convention

The financial statements have been prepared under the historical cost convention, as modified by the following:

Certain financial assets and financial liabilities at fair value;
Assets held for sale – measured at fair value less cost to sell;
Defined benefit plans – plan assets that are measured at fair value;
Equity instruments in subsidiaries at fair value.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Company uses valuation techniques that are appropriate in the circumstances for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

Current vis-à-vis non-current classification

The assets and liabilities reported in the balance sheet are classified on a “current/non-current basis”, with separate reporting of assets held for sale and liabilities. Current assets, which include cash and cash equivalents, are assets that are intended to be realized, sold or consumed during the normal operating cycle of the Company or in the 12 months following the balance sheet date; current liabilities are liabilities that are expected to be settled during the normal operating cycle of the Company or within the 12 months following the close of the financial year. The deferred tax assets and liabilities are classified as non-current assets and liabilities.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(b) Property, plant and equipment

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost which includes capitalised borrowing cost, less depreciation and impairment loss, if any. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Expenditure incurred on assets which are not ready for their intended use comprising direct cost, related incidental expenses and attributable borrowing cost are disclosed under Capital Work-in-Progress.

Depreciation methods, estimated useful life and residual value

Depreciation is provided to the extent of depreciable amount on Straight Line Method (SLM) based on useful life of the following class of assets as prescribed in Part C of Schedule II to the Act, except in case of motor vehicles where the estimated useful life has been considered as five years based on a technical evaluation by the management:

Particulars	Estimated useful life (Years)
Plant and equipment (wind equipment)	22
Plant and equipment (other than wind equipment)	15
Furniture and fxtures	10
Offce equipments	5
Computer	3

Estimated useful life, residual values and depreciation methods are reviewed annually, taking into account commercial and technological obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate.

(c) Intangible assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation / depletion and impairment loss, if any. The cost comprises of purchase price, borrowing costs and any cost directly attributable to bringing the asset to its working condition for the intended use.

Expenditure incurred on acquisition of intangible assets which are not ready to use at the reporting date is disclosed under “intangible assets under development”.

Amortisation method and periods

Amortisation is charged on a straight-line basis over the estimated useful life. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, with the effect of any changes in the estimate being accounted for on a prospective basis

Computer software is amortised over an estimated useful life of 3 years.

(d) Lease

The Company is the lessee

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.

Transition

Effective April 01, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 01, 2019 using the retrospective with cumulative effect method of initially applying the standard recognized at the date of initial application without any adjustment to opening balance of retained earnings. The Company did not have any material impact on the financial statements on application of the above standard.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(e) Impairment of non-financial assets

Assets which are subject to depreciation or amortisation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(f) Trade Receivable

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less provision for impairment, if any.

(g) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instruments of another entity.

Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value (either through Other Comprehensive Income or through profit or loss) and
those measured at amortised cost

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in Statement of Profit and Loss or Other Comprehensive Income (“OCI”). For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments in subsidiaries, the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

(ii) Measurement

At initial recognition, the Company measures financial assets at its fair value plus, in the case of a financial assets not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial assets. Transaction costs of financial assets carried at fair value through profit or loss are expensed in Statement of Profit and Loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through Other Comprehensive Income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

Fair Value through Profit or Loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in Statement of Profit and Loss in the period in which it arises. Interest income from these financial assets is included in other income.

Equity investments

The Company subsequently measures all equity investments in subsidiaries at fair value. The Company’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in Statement of Profit and Loss as other income when the Company’s right to receive payments is established.

Changes in the fair value of financial assets at FVTPL are recognised in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

(iii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

In case of trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 ‘Financial Instruments’, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

(iv) Derecognition of financial assets

A financial asset is derecognised only when:
the Company has transferred the rights to receive cash flows from the financial asset or
retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

(v) Income recognition

Interest income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the debt instrument (for example prepayment, extension, call and similar options) but does not consider the expected credit losses.

Dividend

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

(h) Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax from the proceeds.

(i) Financial liabilities
(i) Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(ii) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and financial guarantee contracts.

(iii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Borrowings

Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawndown, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade and other payables

These amounts represent obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Those payable are classified as current liabilities if payment is due within one year or less otherwise they are presented as non-current liabilities. Trade and other payables are subsequently measured at amortised cost using the effective interest rate method.

Financial guarantee contracts

Financial guarantee contracts are recognised as a financial liability at the time when guarantee is issued. The liability is initially recognised at fair value and subsequently at the higher of the amount determined in accordance with Ind AS 37 and the amount initially recognised less cumulative amortisation, where appropriate.

Where guarantees in relation to loans of subsidiaries are provided for no compensation, the fair values are credited to the Statement of Profit and Loss over the guarantee period using the systematic method. Financial guarantee contracts issued by the Company are measured at fair value at the time of issue of guarantee or amendment in terms of guarantees.

(iv) Derecognition

Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other gains / (losses). When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

(j) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(k) Provisions, Contingent Liabilities and Contingent Assets

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A present obligation that arises from past events but it is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of obligation cannot be measured with sufficient reliability is termed as contingent liability.

Contingent Assets

A contingent asset is disclosed, where an inflow of economic benefits is probable.

(l) Foreign currency translation
(i) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency’). The financial statements are presented in ‘Indian Rupees’ ( ` ), which is the Company’s functional currency and presentation currency.

(ii) Transactions and balances
- (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
- (b) All exchange differences arising on reporting on foreign currency monetary items at rates different from those at which they were initially recorded are recognised in the Statement of Profit and Loss.
- (c) In respect of foreign exchange differences arising on restatement or settlement of long term foreign currency monetary items, the Company has availed the option available in Ind AS 101 to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items outstanding as on March 31, 2016, wherein:
  - Foreign exchange differences on account of depreciable asset, are adjusted in the cost of depreciable asset and would be depreciated over the balance life of asset.
  - In other cases, foreign exchange difference is accumulated in “foreign currency monetary item translation difference account” and amortised over the balance period of such long term asset / liabilities.
- (d) Non-monetary items denominated in foreign currency are stated at the rates prevailing on the date of the transactions / exchange rate at which transaction is actually effected.
(m) Revenue from Contracts with Customers and Other Income

Revenue is measured at the fair value of the consideration received or receivable, and represents amount receivable for goods supplied, stated net of discounts, returns and value added taxes.

(i) Sale of energy

The Company has adopted Ind AS 115 using cumulative effect method with effect of initially applying this standard recognized at the date of initial application (i.e. April 01, 2018).

Revenue from operations comprises of sale of power. Revenue is recognized at an amount that reflects the consideration for which the Company expects to be entitled in exchange for transfer of power (goods / services) to the customer.

Revenue from sale of power is accounted for in accordance with tariff provided in Power Purchase Agreement (PPA) read with the regulations of Maharashtra Electricity Regulatory Commission (MERC) and no significant uncertainty as to the measurability or collectability exist.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

There is no impact on the adoption of the standard in the financial statement as the Company’s revenue primarily comprised of revenue from sale of power and the recognition criteria of this revenue stream is largely unchanged by Ind AS 115.

(ii) Service income

Service income represents income from support services recognised as per the terms of the service agreements entered into with the respective parties.

(iii) Generation Based Incentive

Generation Based Incentive is accounted on accrual basis considering eligibility of the 45 MW Vaspet project for availing the incentive.

(n) Employee benefits

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in Statement of Profit and Loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur.

Post employment obligations

The Company operates the following post-employment schemes:

defined benefit plans such as gratuity
defined contribution plans such as provident fund and superannuation fund

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in Rupees is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in Other Comprehensive Income. They are included in Retained Earnings in the Statement of Changes in Equity and in the Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

Provident fund

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

Superannuation

Certain employees of the Company are participants in a defined contribution plan wherein, the Company has no further obligations to the plan beyond its monthly contributions which are contributed to a trust fund, the corpus of which is invested with Life Insurance Corporation of India Limited.

(o) Employee stock option scheme (ESOS)

ESOS Scheme

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 fair value of options granted under the ESOS Plan is recognised as an employee benefit expense with a corresponding increase in equity. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

ESOS Trust

The Company’s ESOS Scheme is administered through Reliance Power ESOS Trust (“RPET”). The Company treats the RPET as its extension and shares held by RPET are treated as treasury shares and accordingly RPET has been consolidated in the Company’s books.

(p) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

A Discontinued Operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business, exclusively with a view to sale.

The results of discontinued operations are presented separately in the Statement of Profit and Loss.

(q) Income tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in OCI or directly in equity. In this case, the tax is also recognised in OCI or directly in equity.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(r) Cash and cash equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include cash on hand, demand deposits with banks, short-term balances (with an original maturity of three months or less from date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value

(s) Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing:
the profit attributable to owners of the Company
by the weighted average number of equity shares outstanding during the financial year

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(t) Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

(u) Segment reporting

The operating segment has been identified and reported taking into account its internal financial reporting, performance evaluation and organizational structure of its operations. Operating segment is reported in the manner evaluated by Board, considered as Chief Operating Decision Maker under Ind AS 108 “Operating Segments”.

(v) Business combinations

Business combinations involving entities that are controlled by the Company are accounted for using the pooling of interests method as follows:
(i) The assets and liabilities of the combining entities are reflected at their carrying amounts.
(ii) No adjustments are made to reflect fair values, or recognise any new assets or liabilities.
(iii) Adjustments are only made to harmonise accounting policies.
(iv) The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. However, where the business combination had occurred after that date, the prior period information is restated only from that date.
(v) The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balance appearing in the financial statements of the transferee or is adjusted against General Reserve.
(vi) The identities of the reserves are preserved and the reserves of the transferor become the reserves of the transferee.
(vii) The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented separately from other capital reserves.

(w) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

(x) Exceptional items

The Company discloses certain financial information both including / excluding exceptional items. The presentation of information excluding exceptional items allows a better understanding of underlying operating performance of the Company and provides consistency with the Company’s internal management reporting. Exceptional items are identified by virtue of either size or nature so as to facilitate the comparison with prior period and to assess underlying trends in financial performance of the Company.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

2.2 Critical accounting estimates and judgements

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 judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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

Estimation of uncertainties relating to the global health pandemic from COVID-19:

The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, unbilled revenues, goodwill, tangible and intangible assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of information on the expected future performance of the Company. The Company has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company financial statements may differ from that estimated as at the date of approval of these financial statements

(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 lives, 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 recognised in financial statements. (Refer note 14)

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the same can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The Company measures 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 / judgements involved are validated and periodically reviewed by the management. The inputs used in the valuation models include unobservable data of the Companies which are categorised 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 15).

(d) Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment of financial assets and credit risk exposure. ECL impairment loss allowance (or reversal) recognized during the year is recognized as income / expense in the statement of profit and loss.

(e) Estimation of employee benefit obligation

Refer note 2.1 (n).

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

3.1 Property, Plant and Equipment[2]

							`in lakhs
Particulars	Freehold land	Plant and equipment	Furniture andfxtures	Motor vehicles	Offce equipment	Computers	Total
Gross carrying amount
As at April 01, 2019	1,790	33,060	45	90	9	81	35,075
Additions during the year	-	-	-	-	-	-	-
Adjustments1	-	717	-	-	-	-	717
Deductions duringtheyear	-	-	-	-	-	-	-
Carryingamount as at March 31,2020	1,790	33,777	45	90	9	81	35,792
Additions during the year	-	-	-	-	-	-	-
Adjustments1	-	(185)	-	-	-	-	(185)
Deductions duringtheyear	-	-	-	11	2	2	15
Carrying amount as at March 31, 2021	1,790	33,592	45	79	7	79	35,593

Particulars	Freehold land	Plant and equipment	Furniture andfxtures	Motor vehicles	Offce equipment	Computers	Total
Accumulated depreciation
Balance as at April 01, 2019	-	6,151	35	38	7	47	6,278
Charge for the year	-	1,560	1	21	1	5	1,588
Deductions duringtheyear	-	-	-	-	-	-	-
Balance as at March 31,2020	-	7,711	36	59	8	52	7,866
Charge for the year	-	1,585	@	8	@	6	1,601
Deductions duringtheyear	-	-	-	8	2	1	11
Balance as at March 31, 2021	-	9,296	36	59	7	57	9,456
Net carrying amount
As at March 31, 2020	1,790	26,066	9	31	1	29	27,926
As at March 31, 2021	1,790	24,296	9	20	@	22	26,137

Notes:

1) Adjustment represents exchange differences capitalised (Refer note 19)

2) Out of above Property, Plant and Equipment of 26,080 lakhs (March 31, 2020: 27,844 lakhs) has been pledged as security (Refer note 10).

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

3.2 Intangible assets

Intangible assets
	`in lakhs
Particulars	Computer Software
Gross carrying amount
As at April 01, 2019	286
Additions during the year	-
Carrying amount as at March 31, 2020	286
Additions during the year	-
Deductions during the year	286
Carrying amount as at March 31, 2021	-
	`in lakhs
Particulars	Computer Software
Accumulated amortisation
As at April 01, 2019	279
Charge for the year	-
Balance as at March 31, 2020	279
Charge for the year	-
Deductions during the year	279
Balance as at March 31, 2021	-
Net carrying amount
As at March 31, 2020	7
As at March 31, 2021	-
Note:Intangible assets are other than internally generated.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

Non-current fnancial assets
Particulars Face Value `	As at March 31, 2021 As at March 31, 2020
	No. of Shares	`in lakhs<br>No. of<br>Shares\|`in lakhs
Investments (Refer note 10 & 11) Equity share (unquoted, fully paid-up) In Subsidiaries (Fair value through Other Comprehensive Income) Chitrangi Power Private Limited 10 Coastal Andhra Power Limited 10 Dhursar Solar Power Private Limited 10 Kalai Power Private Limited 10 Maharashtra Energy Generation Limited 10 Rajasthan Sun Technique Energy Private Limited 10 Reliance CleanGen Limited 10 Reliance Coal Resources Private Limited 10 Reliance Natural Resources (Singapore) Pte. Limited (Face value of USD 1 each) Reliance Natural Resources Limited 5 Rosa Power Supply Company Limited1 10 Reliance Green Power Private Limited 10 Samalkot Power Limited 10 Sasan Power Limited 10 Shangling Hydro Power Private Limited 10 Siyom Hydro Power Private Limited 10 Tato Hydro Power Private Limited 10 Teling Hydro Power Private Limited 10 Urthing Sobla Hydro Power Private Limited 10 Reliance Power FZC (Face value of AED 5000 each) Vidarbha Industries Power Limited 10 Atos Mercantile Private Limited 10 Atos Trading Private Limited 10 Coastal Andhra Power Infrastructure Limited 10 Reliance Prima Limited 10 Total A	10,000 60,30,70,000 9,04,000 2,79,150 75,000 28,56,350 2,25,50,000 20,99,335 1,00,000 1,00,000 42,44,05,000 25,744 60,00,000 4,32,73,64,250 58,800 3,39,600 1,50,800 1,09,400 16,040 1 11,26,656 10,000 10,000 1,45,200 50,000	- 10,000 -60,30,70,000 13,701 9,04,000 - 2,79,150 - 75,000 - 28,56,350 - 2,25,50,000 - 20,99,335 - 1,00,000 - 1,00,000 2,91,74742,44,05,000 - 25,744 - 60,00,000 5,47,8954,32,73,64,250 - 58,800 - 3,39,600 - 1,50,800 - 1,09,400 - 16,040 - 1 - 11,26,656 - 10,000 - 10,000 - 1,45,200 - 50,000 8,53,343	- - 17,251 13 - - - - 42 - 3,82,940 - - 4,73,102 448 - - 940 21 1 - - - - - 8,74,758

The above subsidiaries are wholly owned by the Company, except Urthing Sobla Hydro Power Private Limited, Rosa Power Supply Company Limited and Reliance Geothermal Power Private Limited.

1 During the previous year, 12,73,21,500 equity shares constituting 30% of equity share capital, of Rosa Power Supply Company Limited (RPSCL), a subsidiary of the Company, held as pledge for term loan facilities to the Company were invoked by a lender. No impact of the said invocation has been given in the books of account except for the holding of the Company, which stands reduced from 100% to 70%.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

Particulars Face Value `	As at March 31, 2021 As at March 31,2020	As at March 31, 2021 As at March 31,2020
	No. of Shares	`in lakhs<br>No. of<br>Shares\|\|`in lakhs
In Associates (valued at cost) RPL Sun Power Private Limited 10 RPL Photon Private Limited 10 RPL Sun Technique Private Limited 10 @ Amount is below the rounding off norm adopted by Preference shares (unquoted, fully paid up) In Subsidiaries (Fair value through Other Comprehensive Income) 7.5% Preference Shares2 Dhursar Solar Power Private Limited 10 Reliance CleanGen Limited 10 Sasan Power Limited 10 Vidarbha Industries Power Limited 10 Atos Mercantile Private Limited 1 Atos Trading Private Limited 1 Chitrangi Power Private Limited 1 Coastal Andhra Power Infrastructure Limited 1 Kalai Power Private Limited 1 Maharashtra Energy Generation Limited 1 Rajasthan Sun Technique Energy Private Limited 1 Reliance Prima Limited 10 Rosa Power Supply Company Limited1 1 Reliance Green Power Private Limited 1 Shangling Hydro Power Private Limited 1 Siyom Hydro Power Private Limited 1 Tato Hydro Power Private Limited 1 Teling Hydro Power Private Limited 1 Urthing Sobla Hydro Power Private Limited 1 6% Preference Shares3 Reliance CleanGen Limited 10 Convertible Preference Shares:4 Reliance Natural Resources (Singapore) Pte. Limited (Face value of USD 1 each) Total B Inter-corporate deposit classifed as equity instruments In Subsidiaries (Fair value through Other Comprehensive Income) Sasan Power Limited Total C Non-current investments (A+B+C) Aggregate book value of unquoted non-current investments	5,000 5,000 5,000 the Company. 8,94,000 1,29,00,000 3,57,88,750 94,04,432 32,310 18,800 10,00,000 1,32,015 1,26,000 2,50,000 28,56,350 28,390 41,83,000 2,31,705 45,600 37,979 5,95,300 96,900 1,62,360 15,00,601 27,49,00,000

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

2 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.

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, 2021 (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)

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 exercised by them before the end of agreed tenure upto June, 2028.

		`in lakhs
Particulars	As at March 31, 2021	As at March 31, 2020
Loans (Unsecured and considered good) Inter corporate deposits (“ICDs”) to subsidiaries (Refer note 11) Other fnancial assets Term deposits with more than 12 months maturity Non-current bank balances(including margin money deposits towards bank guarantee and others) Non-current tax assets (Unsecured and considered good) Advance income tax (net of provision for tax of`1,586 lakhs (March 31, 2020<br>`1,586 lakhs) Current fnancial assets Trade receivables (Unsecured and considered good) Trade receivables (Refer note 11)	1,33,278 1,33,278 - 322 322 3,661 3,661 6,028 6,028	1,32,801 1,32,801 @ 395 395 3,899 3,899 6,098 6,098

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

3.5(b) 3.5(c) 3.5(d) 3.5(e) 3.6 3.7			`in lakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	Cash and cash equivalents Balance with banks: in current account in fxed deposits (including margin money) (Refer note 10) Bank balances other than cash and cash equivalents Unclaimed dividend Fixed deposits (including margin money) (Refer note 10) Loans (Unsecured and considered good unless stated otherwise) Inter corporate deposits to subsidiaries (Refer note 11) Inter corporate deposits to others Loans / advances to employees Loans / advances to related parties (Refer note 11) Other fnancial assets (Unsecured and considered good unless stated otherwise) Security deposits Advance recoverable in cash or in kind Receivables from Subsidiaries (Refer note 11) Interest accrued on ICD - subsidiaries (Refer note 11) Interest accrued - others Receivable against Generation Based Incentive Other receivables Other current assets (Unsecured and considered good) Balance with statutory authorities (includes GST) Prepaid expenses Others (gratuity paid in advance) Advance recoverable towards land (refer note 8) Less: Provision for doubtful receivables Assets classifed as held for sale Assets held for sale (Refer note 8) Others (Refer note 8) Less: Provision for doubtful receivables	170 1 171 299 140 439 65,955 5,000 @ 1,987 72,942 33 4,412 48,158 18,819 1,380 93 30,000 1,02,895 99 25 17 1,900 (1,900) 141 4,711 8,394 (13,105) -	162 - 162 299 1,448 1,747 64,758 5,000 2 1,470 71,230 10 5,127 41,780 13,116 681 167 30,000 90,881 43 15 - 1,900 (1,900) 58 4,711 8,394 (13,105) -

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

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

3.8 3.8.1			`in lakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	Share capital Authorised share capital 11,00,00,00,000 (March 31, 2020: 11,00,00,00,000) equity shares of`10 each<br>5,00,00,00,000 ((March 31, 2020: 5,00,00,00,000) preference shares of`10 each Issued, subscribed and fully paid up capital 2,80,51,26,466 (March 31, 2020: 2,80,51,26,466) equity shares of`10 each<br>fully paid up<br>Reconciliation of number of equity shares<br>Balance at the beginning of the year - equity shares of`10 each Shares issued during the year Balance at the end of the year - equity shares of`10 each	11,00,000 5,00,000 16,00,000 2,80,513 2,80,51,26,466 - 2,80,51,26,466	11,00,000 5,00,000 16,00,000 2,80,513 2,80,51,26,466 - 2,80,51,26,466

3.8.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having face value of ` 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.

Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company	Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company	Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company	Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company	Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company
Particulars	As at March 31, 2021		As at March 31, 2020
	No. of Shares	Percentage of share holding	No. of Shares	Percentage of share holding
Equity shares Reliance Infrastructure Limited Housing Development Finance Corporation Limited Total	16,65,60,739 14,29,87,901 30,95,48,640	5.94 5.10 11.04	35,82,98,193 19,54,87,901 55,37,86,094	12.78 6.97 19.75

|3.8.4
Pursuant to the composite scheme of arrangement with Reliance Natural Resources Limited, the Company has 5,55,014
Global Depository Receipts which are listed on Euro MTF Market of the Luxembourg Stock Exchange since May 17, 2011.
in lakhs **Particulars** **As at** **March 31, 2021** As at March 31, 2020 **3.9** **Other equity** **Balance at the end of the year** 3.9.1 Capital reserve **1,958** 1,958 3.9.2 Capital reserve (arisen pursuant to scheme of amalgamation) **59,995** 59,995 3.9.3 Securities premium **11,05,454** 11,05,454 3.9.4 General reserve (arisen pursuant to various schemes) **41,691** 41,691 3.9.5 Debenture redemption reserve **4,683** 4,683 3.9.6 Foreign currency monetary item translation difference account **-** - 3.9.7 Treasury Shares (ESOS Trust) **(845)** (845) 3.9.8 Equity instruments-fair value through Other Comprehensive income (OCI) **(5,01,068)** (5,03,506) 3.9.9 Retained earnings **(1,03,716)** (1,09,250) **Total** **6,08,151** 6,00,181|**3.8.4** Pursuant to the composite scheme of arrangement with Reliance Natural Resources Limited, the Company has 5,55,014 Global Depository Receipts which are listed on Euro MTF Market of the Luxembourg Stock Exchange since May 17, 2011. in lakhs
Particulars
As at
March 31, 2021
As at
March 31, 2020
3.9
Other equity
Balance at the end of the year
3.9.1
Capital reserve
1,958
1,958
3.9.2
Capital reserve (arisen pursuant to scheme of amalgamation)
59,995
59,995
3.9.3
Securities premium
11,05,454
11,05,454
3.9.4
General reserve (arisen pursuant to various schemes)
41,691
41,691
3.9.5
Debenture redemption reserve
4,683
4,683
3.9.6
Foreign currency monetary item translation difference account
-
-
3.9.7
Treasury Shares (ESOS Trust)
(845)
(845)
3.9.8
Equity instruments-fair value through Other Comprehensive income (OCI)
(5,01,068)
(5,03,506)
3.9.9
Retained earnings
(1,03,716)
(1,09,250)
Total
6,08,151
6,00,181|3.8.4
Pursuant to the composite scheme of arrangement with Reliance Natural Resources Limited, the Company has 5,55,014
Global Depository Receipts which are listed on Euro MTF Market of the Luxembourg Stock Exchange since May 17, 2011.
`in lakhs
Particulars
As at
March 31, 2021
As at
March 31, 2020
3.9
Other equity
Balance at the end of the year
3.9.1
Capital reserve
1,958
1,958
3.9.2
Capital reserve (arisen pursuant to scheme of amalgamation)
59,995
59,995
3.9.3
Securities premium
11,05,454
11,05,454
3.9.4
General reserve (arisen pursuant to various schemes)
41,691
41,691
3.9.5
Debenture redemption reserve
4,683
4,683
3.9.6
Foreign currency monetary item translation difference account
-
-
3.9.7
Treasury Shares (ESOS Trust)
(845)
(845)
3.9.8
Equity instruments-fair value through Other Comprehensive income (OCI)
(5,01,068)
(5,03,506)
3.9.9
Retained earnings
(1,03,716)
(1,09,250)
Total
6,08,151
6,00,181|
|---|---|---|
||As at
March 31, 2021|As at
March 31, 2020|
||1,958
59,995
11,05,454
41,691
4,683
-
(845)
(5,01,068)
(1,03,716)
6,08,151|1,958
59,995
11,05,454
41,691
4,683
-
(845)
(5,03,506)
(1,09,250)
6,00,181|

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

Particulars 3.9.1 Capital reserve 3.9.2 Capital reserve (arisen pursuant to scheme of amalgamation) 3.9.3 Securities premium Balance at the beginning of the year Balance at the end of the year 3.9.4 General reserve (arisen pursuant to various schemes) Balance at the beginning of the year (a) General reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infraventures Private Limited) (b) General reserve (arisen pursuant to scheme of amalgamation with erstwhile Sasan Power Infrastructure Limited) Balance at the end of the year 3.9.5 Debenture redemption reserve 3.9.6 Foreign currency monetary item translation difference account Balance at the beginning of the year Add: Addition during the year Less: Amortisation during the year Balance at the end of the year 3.9.7 Treasury Shares (ESOS Trust) 3.9.8 Equity instruments-fair value through Other Comprehensive income (OCI) Balance at the beginning of the year Add: Addition during the year Add: Remeasurements of post-employment beneft obligation (net) (Refer note 9) Balance at the end of the year 3.9.9 Retained earnings Balance at the beginning of the year Proft / (Loss) for the year Balance at the end of the year Nature and purpose of other reserves: (a) Capital Reserve The Capital Reserve had arisen pursuant to the composite scheme of arrangement from Reliance Futura Limited.			`in lakhs As at March 31,2020 1,958 59,995 11,05,454 11,05,454 18,707 22,984 41,691 4,683 1 - 1 - (845) (1,37,519) (3,65,973) (14) (5,03,506) (70,366) (38,884) (1,09,250) 6,00,181 assets taken over
	Particulars	As at March 31, 2021
		1,958 59,995 11,05,454 11,05,454 18,707 22,984 41,691 4,683 - - - - (845) (5,03,506) 2,329 109 (5,01,068) (1,09,250) 5,534 (1,03,716) 6,08,151 on account of net

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(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

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, 2011. 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, 2011. 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) 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)).

(g) Treasury Shares

The Reserve comprises loss on sale of treasury shares.

(h) Equity instruments 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.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

3.10(a)			`in lakhs
	Particulars	As at March 31, 2021	As at March 31,2020
	Non-current fnancial liabilities Borrowings Secured At amortised cost 5,450 (March 31, 2020: 5,450) Series I (2018) listed, rated, secured, redeemable non convertible debentures of`10,00,000 each<br>2,500 Series III (2017) listed, rated, secured, redeemable non convertible<br>debentures of`1,000,000 each (Refer note 11 and 24) Term loans: Rupee loans from banks Foreign currency loans from banks Unsecured - at amortised cost Inter-corporate deposits from related parties (Refer note 11 and 24)	39,775 12,665 13,798 3,955 7,822 78,015	52,905 - 16,140 5,941 - 74,986

During the year, the Company has delayed/ defaulted in repayment of borrowings (Refer note 26).

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, 2020 54,500 lakhs) are secured by first pari-passu charge with Rupee term loan at Sr. no. (iii), (viii) and (ix) 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, 2020 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. (viii) and (ix) and also secured by pledge over 30% equity shares of Rosa Power Supply Limited (a subsidiary), which has been invoked by a lender on January 14, 2020.
(iv) Rupee term loans from banks of 2,004 lakhs (March 31, 2020 2,165 lakhs) and foreign currency loan of 6,358 lakhs (March 31, 2020 7,808 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 with Rupee term loan at Sr. no. (vii).
(v) Rupee term loans from banks of 6,958 lakhs (March 31, 2020 7,500 lakhs) are secured by first pari passu charge over current assets of the Company including receivable pertaining to 45 MW wind power project at Vashpet.
(vi) Rupee term loans from banks of Nil (March 31, 2020 2,708 Lakhs) were 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. It was also secured by pledge of 10,19,00,000 shares of the Company held by RInfra, which were invoked by a lender on November 26, 2019.
(vii) Rupee term loans from banks of 11,467 lakhs (March 31, 2020 11,656 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 with Rupee term loan and foreign currency loan at Sr. no. (iv).
(viii) Rupee term loans from banks of 6,300 lakhs (March 31, 2020 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) and (ix) 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% equity shares of Rosa Power Supply Company Limited (a subsidiary) which has been invoked by the bank on January 14, 2020.
(ix) Rupee term loans from banks of 16,875 lakhs (March 31, 2020 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 (viii) over long term loans and advances of the Company and also secured by pledge over 30% equity shares of Rosa Power Supply Company Limited (a subsidiary) which has been invoked by a lender on January 14, 2020.
(x) Current maturities of long term borrowings have been classified as other financial liabilities (Refer note 3.12(c)).

3.10(a2) Terms of Repayment and Interest

(i) Series I (2018) listed, rated, secured, redeemable non convertible debentures (“NCDs”) 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 year, terms of the 2500 Series III (2017) listed, rated, secured, redeemable non convertible debentures (“NCDs”) have been changed 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)

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(iii) Rupee term loans from banks of 32,400 lakhs (March 31, 2020 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 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 2,004 lakhs (March 31, 2020 2,165 lakhs).
(v) Foreign currency loans is repayable in 42 structured quarterly installments 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 6,358 lakhs (March 31, 2020 7,808 lakhs).
(vi) Rupee term loans from bank is repayable in 16 quarterly installments 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 6,958 lakhs (March 31, 2020 7,500 lakhs).
(vii) Rupee term loans from bank is repayable in 40 monthly installments commenced from March 2017 and carry an interest rate of 11.05% per annum payable on a monthly basis. The outstanding balance as at year end is Nil (March 31, 2020 2,708 lakhs).
(viii) Rupee term loans from bank is repayable in 53 structured quarterly installments commenced from September 2016 and carry an interest rate of 13.05% per annum payable on a monthly basis. The outstanding balance as at year end is 11,467 lakhs (March 31, 2020 11,656 lakhs).
(ix) Rupee term loans from bank is repayable in 12 quarterly installments 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, 2020 6,300 lakhs).
(x) Rupee term loans from bank is repayable in 11 structured quarterly installments 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, 2020 16,875 lakhs).
(xi) During the year, terms of the ICD payable to related parties has been changed and accordingly the ICD is repayable in 5 structure annual 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)
3.10(a3) The amortised cost disclosed above is net off incidental cost of borrowings aggregating of 1,342 lakhs (March 31,2020 2,019 lakhs).

3.10(b) 3.11 3.12 3.12(a)			`in lakhs
	Particulars	As at March 31, 2021	As at March 31,2020
	Other fnancial liabilities Financial guarantee obligations Provisions Provision for gratuity (Refer note 9) Provision for leave encashment (Refer note 9) Current fnancial liabilities Current borrowings At amortised cost Secured Rupee loan from bank Working capital loan 2,500 Series III (2017) listed, rated, secured, redeemable non convertible debentures of`1,000,000 each At amortised cost Unsecured Loans from subsidiaries repayable on demand (Refer note 11) Inter-corporate deposits from related parties (Refer note 11) Inter-corporate deposits from others	905 905 - 2 2 17,213 4,220 - 3,42,336 1,12,122 41,470 5,17,361	2,753 2,753 53 42 95 17,213 4,429 25,000 3,61,350 74,948 64,091 5,47,032

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

3.12(a1) Nature of security and terms of repayment

(i) Rupee loan from bank of 17,213 lakhs (March 31, 2020 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.
(ii) Working capital loan from bank is secured by first hypothecation and charge on all receivables of the Company, (excluding assets pertaining to 45 MW wind project at Vashpet) both present and future on pari passu basis and is repayable on demand and carry an interest rate of 12.50% per annum payable on a monthly basis.
(iii) 2500 Series III (2017) listed, rated, secured, redeemable non convertible debenture are secured by pledge over 60,30,44,493 equity shares of Coastal Andhra Power Limited (a subsidiary) and were redeemable within a period of 396 days from April 25, 2019 and carry an interest rate of 13.71% per annum payable on half yearly basis. During the year, terms of the NCDs have been changed and accordingly the NCDs have been regrouped to non-current borrowings. (Refer note 3.10(a2)(ii))

3.12(b) 3.12(c) 3.13 3.14 3.15 3.16(a)			`in lakhs
	Particulars	Year ended March 31, 2021	Year ended March 31,2020
	Trade payables Total Outstanding dues of micro enterprises and small enterprises (Refer note 21) Total Outstanding dues of creditors other than micro enterprises and small enterprises @ Amount is below the rounding off norms adopted by the Company Other fnancial liabilities Current maturities of long-term borrowings (Refer note 3.10(a) and 26) Interest accrued but not due on borrowings (Refer note 11) Interest accrued and due on borrowings (Refer note 26) Unclaimed dividend Retention money payable Dues to subsidiaries (Refer note 11) Provision for expenses Financial guarantee obligations Other payables Includes payable to other parties and employees Other current liabilities Other payables Current provisions Provision for leave encashment (Refer note 9(a)) Revenue from operations Sale of energy Other Operating income Generation Based Incentive Other income Interest income: Bank deposits Inter-corporate deposits (including related party) (Refer note 11) Fair valuation of NCDs and ICD (including related party (Refer note 11 and 24) Service Income (Refer note 11) Income recognised on Corporate guarantee Gain on sale of property, plant and equipment (net) Liabilities written back Leave encashment Other non-operating income	@ 1,227 1,227 78,001 35,408 38,869 299 1 4,233 451 2,814 1,10,438 2,70,514 32 32 72 72 3,623 284 3,907 64 6,144 28,954 7,350 3,095 14 2,469 - 215 48,305	3 2,089 2,092 64,868 30,121 19,751 299 1 4,233 381 4,061 1,11,787 2,35,502 464 464 35 35 4,963 390 5,353 428 6,067 - 21,714 - - 7 26 347 28,589

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

3.16(b) 3.17 3.18 3.19			`in lakhs
	Particulars	Year ended March 31, 2021	Year ended March 31,2020
	Income from Discontinued Operations Interest income (Refer note 8) Employee benefts expense Salaries, bonus and other allowances Contribution to provident fund and other funds (Refer note 9) Gratuity (Refer note 9) Leave encashment Staff welfare expenses Finance costs Interest on: Rupee term loans Foreign currency loans Inter corporate deposits (Refer note 11) Non convertible debentures Working capital loans Others Expense recognised on Corporate guarantee Other fnance charges Other expenses Rent expenses (Refer note 11) Repairs and maintenance - Plant and equipment - Others Stamp duty and fling fees Advertisement expenses Printing and stationery Legal and professional charges (including shared service charges) (Refer note 11) Books and periodicals Membership and subscription Postage and telephone Travelling and conveyance Custodian charges Directors sitting fees Rates and taxes Insurance (Refer note 11) Foreign exchange loss Short-term Provision for doubtful debts / amount written-off GST /other taxes charged off Miscellaneous expenses	- - 604 14 39 3 2 662 12,719 352 16,805 11,773 538 11 - 244 42,442 386 762 18 1 2 7 229 @ 5 5 2 300 24 23 21 - @ 119 69 1,973	- - 678 22 34 - 11 745 12,906 649 18,687 13,288 628 70 2,356 141 48,726 47 703 43 5 4 3 796 @ 4 58 17 396 36 20 38 47 - 54 40 2,311

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

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

4. Contingent liabilities and commitments

(a) Bank guarantees outstanding as at balance sheet date aggregating to 18,301 lakhs (March 31, 2020 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 5,66,590 lakhs (March 31, 2020 6,11,182 lakhs).
(c) The Company has acted as a co-borrower for facilities aggregating to 46,796 lakhs (March 31, 2020 39,573 lakhs) availed by one of its subsidiary.
(d) The Appeals pending aggregating to 14,127 lakhs (March 31, 2020 10,970 lakhs) and 35 lakhs (March 31, 2020 114 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, 2021 there were no contracts remaining unexecuted on capital account.

5. Details of remuneration to auditors

Details of remuneration to auditors
		`in lakhs
Particulars	Year ended March 31, 2021	Year ended March 31, 2020
(a) As auditors For statutory audit (excluding taxes) For others (b) Out-of-pocket expenses	39 1 - 40	39 - - 39

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); whereafter 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 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.

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.

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

CAPL has filed a petition before the Central Electricity Regulatory Commission (CERC) for referring the dispute to arbitration and the petition is currently pending adjudication before CERC. This has been shown as receivable from procurers (Refer note 3.5 (e)).

As per the clause 6.7.1 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 had 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, RPL 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 (GoAP), citing that the project has not been developed for last 10 years; has issued two land resumption orders dated February 25, 2021 and February 27, 2021. Aggreived by this, CAPL and RPL have filed a writ petition (5058 of 2021) in High Court of Andhra Pradesh at Amaravati praying for setting aside the relevant land resumption orders. The High court vide order dated 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 supply of power 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 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 01 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 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 with SCTK on March 11, 2020 to sell equipment of one module (out of three modules, which were under implementation by SMPL). All the project lenders including ADB, JBIC and NEXI have approved financing of the project and financing agreements were signed in July 2020. All the condition for achieving financial closure were satisfied and financial closure achieved and NTP issued by Samsung on February 02, 2021. Custom authorities have approved the export of equipment by SMPL and first consignment was exported on March 03, 2021. The other equipments are currently getting exported and exports are expected to be completed by September 2021. The proceeds from the sale of first module to Samsung are being used to repay a major portion of the outstanding US-Exim loan. 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. Accordingly, the financial statements of SMPL have been prepared on a going concern basis.

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. 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

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

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’. During the previous year out of prudence, the Company has fully provided for receivables of ` 15,005 lakhs against the Dadri project. The Company is continuing to pursue for the recovery of amount spent on land acquisition from GoUP (Refer note 22(b)).

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.

		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Provision for leave encashment
Current*	72	35
Non-current	2	42

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
(iv) 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:

		`inlakhs
Particulars	Year ended March 31, 2021	Year ended March31,2020
(i) Contribution to provident fund (ii) Contribution to employees’ superannuation fund (iii) Contribution to employees’ pension scheme 1995	10 1 3 14	17 1 4 22

(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.

(i) Significant estimates: actuarial assumptions

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

Particulars	March 31, 2021	March 31, 2020
Discount rate (per annum)	6.20%	6.30%
Rate of increase in compensation levels	7.50%	7.50%
Rate of return on plan assets	6.20%	6.30%

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.

100

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(ii)	Gratuity Plan `in lakhs
	Particulars Present value ofobligation Fair value of plan assets Net amount
	As at April 01, 2019 364 360 4 Current service cost / Return on Plan Assets 36 - 36 Past Service cost - - - Interest on net defned beneft liability / assets 22 23 (1) Total amount recognised in Statement of Proft and Loss 58 23 35 Remeasurements during the year Return on plan assets, excluding amount included in interest expense/(income) - @ (@) (Gain ) / loss from change in fnancial assumptions 15 - 15 (Gain ) / loss from change in demographic assumptions - - - Experience (gains) / losses (1) - (1) Total amount recognised in Other Comprehensive Income 14 @ 14 Employer’s contributions Benefts paid (46) (46) - As at March 31, 2020 390 337 53
	Particulars Present value of obligation Fair value of plan assets Net amount
	As at April 01, 2020 390 337 53 Current service cost 37 - 37 Past Service Cost - - - Interest on net defned beneft liability / assets 22 20 2 Total amount recognised in Statement of Proft and Loss 59 20 39 Remeasurements during the year Return on plan assets, excluding amount included in interest expense/(income) - (4) 4 (Gain) / loss from change in fnancial assumptions 1 - 1 (Gain) / loss from change in demographic assumptions - - - Experience (gains) / losses (114) - (114) Total amount recognised in Other Comprehensive Income (113) (4) (109) Employer’s contributions
	Benefts payment (111) (111) -
	As at March 31, 2021 225 242 (17)

@ Amount is below the rounding off norms adopted by the Company The net liability disclosed above relates to funded plans are as follows:

` in lakhs

The net liability disclosed above relates to funded plans	are as follows:	`in lakhs
Particulars	March 31, 2021	March 31, 2020
Present value of funded obligations	225	390
Fair value of plan assets	242	337
Defcit / (Surplus) of gratuity plan	(17)	53
Non-current portion	(17)	53

101

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(iii) Sensitivity analysis

The sensitivity of the provision for defined benefit obligation to changes in the weighted principal assumptions is:

Particulars	Impact on closing balance of provision for defned beneft obligation
	Change in assumptions Increase in assumptions Decrease in assumptions
	March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Discount rate Rate of increase in compensation levels	0.50% 0.50% (2.19%) (2.43%) 2.29% 2.55% 0.50% 0.50% 2.26% 2.51% (2.17%) (2.42%)

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 is 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 4.48 years (March 31, 2020 – 4.98 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.

10. Assets pledged as security

Assets pledged as security
		`inlakhs
Particulars	March 31, 2021	March31,2020
Non-Current
First charge
Financial Assets
Investments in shares of subsidiaries	10,24,400	8,95,400
Loans	1,33,278	1,32,801
Other fnancial assets	322	395
Non-fnancial assets
Property, plant and equipment	26,080	27,844
Total Non-current assets pledged as security	11,84,080	10,56,440
Current
First charge
Financial assets
Trade receivables	6,028	6,098
Cash and bank balances	311	1,610
Loans	72,942	71,230
Other fnancial assets	1,02,895	90,881
Non-fnancial assets
Other current assets	141	58
Total current assets pledged as security	1,82,317	1,69,877
Total assets pledged as security	13,66,397	12,26,317

102

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

11. 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)

1 2 3 4	Sasan Power Limited (SPL) Rosa Power Supply Company Limited (RPSCL) Maharashtra Energy Generation Limited (MEGL) 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	Reliance CleanGen Limited (RCGL)
16	Rajasthan Sun Technique Energy Private Limited (RSTEPL)
17	Dhursar Solar Power Private Limited (DSPPL)
18	Moher Power Limited (MPL)
19	Samalkot Power Limited (SMPL)
20	Reliance Prima Limited (RPrima)
21	Atos Trading Private Limited (ATPL)
22	Atos Mercantile Private Limited (AMPL)
23	Coastal Andhra Power Infrastructure Limited (CAPIL)
24	Reliance Power Netherlands BV (RPN)
25	PT Heramba Coal Resources (PTH)
26	PT Avaneesh Coal Resources (PTA)
27	Reliance Natural Resources Limited (RNRL)
28	Reliance Natural Resources (Singapore) Pte Limited (RNRL- Singapore)
29	Reliance Solar Resources Power Private Limited (RSRPPL)
30	Reliance Wind Power Private Limited (RWPPL)
31	Reliance Green Power Private Limited (RGPPL)
32	PT Sumukha Coal Services (PTS)
33	PT Brayan Bintang Tiga Energi (BBE)
34	PT Sriwijiya Bintang Tiga Energi (SBE)
35	Shangling Hydro Power Private Limited (SPPL)
36	Sumte Kothang Hydro Power Private Limited (SKPL) (*)
37	Teling Hydro Power Private Limited (TPPL)
38	Lara Sumta Hydro Power Private Limited (LHPPL) (*)
39	Purthi Hydro Power Private Limited (PHPPL) (*)
40	Reliance Geothermal Power Private Limited (RGTPPL)
41	Reliance Bangladesh LNG & Power Limited ( RBLPL) (upto December 31, 2020)
42	Reliance Power Holding FZC, Dubai (RFZC)
43	Reliance Bangladesh LNG Terminal Limited (RBLTL) (upto January 25, 2021)
44	Reliance Chittaong Power Company Limited (RCPCL)
	(*) (Upto March 26, 2020) Merged with RCGL
Associates
SN	Name of Company	%of Shares
1	RPL Sun Power Private Limited (RSUNPPL)	50%
2	RPL Photon Private Limited (RPHOTONPL)	50%
3	RPL Sun Technique Private Limited (RSUNTPL)	50%

103

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

B. (I). Investing parties/ promoters having significant influence on the Company directly or indirectly
- (a) Company
  - Reliance Infrastructure Limited (R Infra) (upto January 09, 2020)
- (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)(b) above and B (II) (b) has control / significant influence.
  - 1 Reliance Capital Trustee Co. Ltd. (Rcap Trustee)
  - 2 Reliance General Insurance Company Limited (RGICL)
  - 3 Reliance Big Entertainment Private Limited (RBEPL)
  - 4 Reliance Infrastructure Limited (R Infra) (w.e.f. January 10, 2020)
  - 5 Reliance Corporate Advisory Services Limited (RCAS)
- (b) Key Managerial Personnel
  - 1 Shri K Raja Gopal - Whole-time Director and Chief Executive Officer
  - 2 Shri Sandeep Khosla - Chief Financial Officer (w.e.f. April 01, 2020)
  - 3 Shri Shrenik Vaishnav - Chief Financial Officer (upto March 31, 2020)
  - 4 Shri Murli Manohar Purohit - Company Secretary
C. Details of transactions during the year and closing balances at the year end

						`in lakhs
SN	Nature of transactions	Parties	Key	Enterprises over	Subsidiaries/	Total
		having signifcant infuence on	Managerial Personnel	which individual described in clause B (I)	Associates [11 A]
		the Company		above and B (II)
		directly or indirectly		(b) have control / signifcant infuence
		[11 B (I)(a)]	[11 B (II)	[11 B (II)(a)]
			(b)]
(i)	Transaction during the year
1	Service Income	-	-	-	7,350	7,350
		-	-	-	21,714	21,714
2	Interest on ICD given	-	-	-	5,703	5,703
		-	-	-	5,437	5,437
3	Insurance Premium paid	-	-	1	-	1
		-	-	7	-	7
4	Interest expense towards ICD and	-	-	12,749	-	12,749
	NCD	9,966	-	5,530	-	15,496
5	Rent expenses	-	-	50	336	386
		47	-	-	-	47
6	Remuneration to key managerial	-	415	-	-	415
	personnel – Short term employee benefts	-	451	-	-	451
7	Expenses incurred / paid on behalf	-	-	-	1,123	1,123
	of the company	-	-	-	390	390
8	Reimbursement of expenses and	-	-	-	5,310	5,310
	advances given
		-	-	-	8,851	8,851
9	Refund of advance given	-	-	-	-	-
		-	-	-	1	1
10	Inter corporate deposit received	-	-	3,312	16	3,328
		9,296	-	-	772	10,068
11	Assignment of liabilities	-	-	-	-	-
		191	-	-	1,07,306	1,07,497

104

Reliance Power Limited

Notes to the fnancial statements for the year ended March 31, 2021	Notes to the fnancial statements for the year ended March 31, 2021
	`in lakhs
	SN Nature of transactions Parties having signifcant infuence on the Company directly or indirectly Key Managerial Personnel Enterprises over which individual described in clause B (I) above and B (II) (b) have control / signifcant infuence Subsidiaries/ Associates [11 A] Total [11 B (I)(a)] [11 B (II) (b)] [11 B (II)(a)]
	12 Refund of ICD received - - - 1 1 15,280 - - 466 15,746 13 Assignment of ICD from (including interest accrued thereon) - - 33,861 - 33,861 41,031 - - - 41,031 14 Inter corporate deposit given - - - 4,535 4,535 - - - 39,908 39,908 15 Liabilities written back (including interest accrued thereon) - - 2,432 - 2,432 - - - - - 16 Refund of inter corporate deposit given - - - 1,826 1,826 - - - 7,790 7,790 17 Assignment of ICD to (including interest accrued thereon) - - - 19,155 19,155 - - - 41,222 41,222 18 Advance taken from - - - - - - - - 36,437 36,437 19 Purchase of shares - - - - - - - - 1 1 20 Fair valuation gain of NCD and ICD - - 28,954 - 28,954 - - - - - 21 Guarantees issued to (including interest) - - - - - - - - 68,913 68,913 (ii) Closing Balance 22 Investment in Equity shares - - - 8,53,343 8,53,343 - - - 8,74,758 8,74,758 23 Investment in Preference shares - - - 5,37,435 5,37,435 - - - 5,13,690 5,13,690 24 ICD classifed as equity instruments - - - 20,000 20,000 - - - 20,000 20,000 25 Loans and advances given including ICD and other receivables - - - 2,01,220 2,01,220 - - - 1,99,029 1,99,029 26 Short term borrowings – ICD and NCD - - 1,32,609 3,42,336 4,74,945 74,948 - 42,000 3,61,350 4,78,298 27 Other fnancial liabilities payable - - 20,380 4,233 24,613 10,675 - 6,813 4,253 21,741 28 Trade receivables 5,862 - - - 5,862 5,862 - - - 5,862 29 Other fnancial assets - - 1 67,189 67,190 - - - 54,896 54,896 30 Bank / Corporate Guarantees issued to banks / fnancial institutions (including interest) - - - 5,59,297 5,59,297 - - - 5,58,792 5,58,792 31 Trade payables - - 33 - 33 9 - - - 9

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

105

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

Details of material transactions: Service income includes Nil from RFZC, 4,950 lakhs from SPL (March 31,2020: RFZC 14,364 lakhs, SPL 4,950 lakhs), Interest income on ICD given includes 5,703 lakhs to RCRPL (March 31, 2020: 5,437 lakhs), Interest expense on ICD includes 9,705 lakhs to Rinfra (March 31, 2020: 9,966 lakhs to Rinfra), ICD received includes Nil from RPSCL (March 31, 2020: 700 lakhs), Reimbursement of expenses and advances given includes 4,204 lakhs to CAPL (March 31, 2020: 3,670 lakhs), Assignment of ICD (including interest accrued thereon) from VIPL Nil (March 31, 2020: 41,222 lakhs), Refund of ICD given includes 1,820 lakhs from RCGL (March 31, 2020: 7,785 lakhs), Assignment of liabilities includes Nil from SPL (March 31, 2020: 107,306 lakhs), Advance taken includes Nil from SPL (March 31, 2020: 36,437 lakhs), Fair valuation gain of NCD and ICD from RCAS of 28,954 lakhs (March 31, 2020 Nil), Inter corporate deposit given includes 3,268 lakhs to RCGL and 1,263 lakhs to VIPL (March 31, 2020: 31,421 lakhs to RCGL and 7,533 lakhs to VIPL), Guarantee issued includes Nil to RCGL and Nil to KPPL (March 31, 2020: 37,721 lakhs to RCGL and 31,192 lakhs to KPPL), Investment in Equity shares includes SPL 547,895 lakhs and RPSCL 291,747 lakhs (March 31, 2020: SPL 473,102 lakhs and RPSCL 382,940 lakhs), Investment in Preference shares includes SPL 449,105 lakhs, RNRL Singapore Nil (March 31, 2020: SPL 387,798 lakhs and RNRL Singapore 8,886 lakhs), Loans and advances including Inter- corporate deposit and other receivables includes 34,791 lakhs from RCGL (March 31, 2020: 34,314 lakhs), Short term borrowing - Inter- corporate deposit includes amount 301,653 lakhs from RPSCL (March 31, 2020: 301,529 lakhs), Bank/ Corporate Guarantee issued to banks/ financial institutions includes 279,304 lakhs to VIPL and 183,462 lakhs to SMPL (March 31, 2020: 252,228 lakhs to VIPL and 261,561 lakhs to 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..

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
100% of equity shares of Reliance Natural Resources Limited
99.996% of equity shares of Coastal Andhra Power Limited
100% of equity shares of Samalkot Power Limited
(iv) 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. 2.1 (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) 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 2020-21, the Company has paid sitting fees of 2 lakhs (March 31, 2020 2 lakhs) to Individual mentioned in B (I) (b) above.

106

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

12. Disclosure of loans and advances to subsidiaries pursuant to Schedule V under Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015

	`in lakhs
Name of Subsidiaries	Amount outstanding Maximum amount outstanding*
	As at during theyear ended
	March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Amulin Hydro Power Private Limited Atos Mercantile Private Limited Atos Trading Private Limited Chitrangi Power Private Limited Coastal Andhra Power Infrastructure Limited Coastal Andhra Power Limited Emini Hydro Power Private Limited Kalai Power Private Limited Mihundon Hydro Power Private Limited Rajasthan Sun Technique Energy Private Limited Reliance CleanGen Limited Reliance Coal Resources Private Limited Samalkot Power Limited Sasan Power Limited Siyom Hydro Power Private Limited Tato Hydro Power Private Limited Urthing Sobla Hydro Power Private Limited Shangling Hydro Power Private Limited Teling Hydro Power Private Limited Reliance Green Power Private Limited Reliance Geothermal Power Private Limited Vidarbha Industries Power Limited Dhursar Solar Power Private Limited Rosa Power Supply Company Limited Reliance Bangladesh LNG & Power Limited	- 40 - 40 72 72 72 72 3 3 3 3 1,07,550 1,07,551 1,07,551 1,07,551 507 509 509 509 33,718 29,515 33,719 29,515 - 21 - 21 29 29 30 29 - 2 - 2 606 606 609 606 34,791 34,314 35,803 44,919 55,382 49,681 55,382 50,498 669 656 724 656 29,957 27,918 29,957 33,150 204 204 205 204 396 396 397 396 74 74 74 74 14 14 14 14 25 25 25 25 4 4 4 4 26 26 26 26 3,493 1,726 3,493 42,085 75 75 75 75 600 464 1,528 464 - - - 974

Includes 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.

13. Earnings per share

Earnings per share
Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Proft / (Loss) for Basic and Diluted Earnings per Share (`in lakhs)	5,534	(38,884)
Weighted average number of equity shares outstanding (Nos.)	2,805,126,466	28,05,126,466
Basic and diluted earnings per share (`)	0.197	(1.386)
Nominal value of an equity share (`)	10	10

107

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

14. Income taxes

The major components of income tax expense for the years ended March 31, 2021 and March 31, 2020 are as under:

(a) Income tax recognised in Statement of Profit and Loss

		`in lakhs
Particulars March 31, 2021		March 31, 2020
(i) Income tax expense Current year tax (ii) Deferred tax Deferred tax expense / (credit) Total income tax expense / (credit) (i)+(ii)	- - -	- - -

Deferred tax assets aggregating to 23,922 lakhs as on March 31, 2021 (March 31, 2020 27,743 lakhs) pertains to unabsorbed depreciation, business losses, long term capital losses, provision for gratuity & leave encashment and deferred tax liability of 2,760 lakhs (March 31, 2020 2,297 lakhs) pertains to temporary differences between books and tax base of Property, Plant and Equipment (“PPE”). Accordingly, on prudence basis net deferred tax asset has not been recognised in the Financial Statement.

(b) The reconciliation of tax expense and the accounting profit multiplied by tax rate

		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Proft / (Loss) before tax (including discontinued operation)	5,534	(38,884)
Tax at the Indian tax rate of 26% (March 31, 2020: 26%)	1,439	(10,110)
Tax effect of amounts which are not deductible / (taxable) in calculating
taxable income:
Other items (net)	(914)	(269)
Income on fnancial instruments not taxable under Income Tax Act, 1961 (net)	(8,333)	-
Expense on fnancial instruments not taxable under Income Tax Act, 1961 (net)	-	612
Provision for advances	-	5,059
Tax losses on which no deferred tax assets was recognised	7,808	4,708
Income tax expense / (credit)	-	-

(c)	Tax assets(Refer note 3.4)
(d)		`in lakhs
	Particulars	March 31, 2021 March 31, 2020
	Opening balance Add: Tax credit availed during the year Less : Reversal on account of 26A declaration taken Closing balance Unused tax	3,899 3,063 3 836 241 -
		3,661 3,899
		`in lakhs
	Particulars	March 31, 2021 March 31, 2020
	Unused tax losses for which no deferred tax assets has been recognised Potential tax benefts @ 26% / 20% (March 31, 2020: @26%/ 20%) Year wise expiry of such losses as at March 31, 2021 is as under:	92,291 1,09,476 23,918 27,743

	`in lakhs
SN Particulars	March 31, 2021
1 Expiring within 1 year 2 Expiring within 1 to 5 year 3 Expiring within 5 to 8 year 4 Without expiry limit Total	- 20,944 57,324 14,023 92,291

108

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

15. Fair value measurements

(a) Financial instruments by category

alue measurements Financial instruments by category
	`in lakhs
Particulars	March 31, 2021 March 31, 2020
	FVTPL FVOCI Amortised cost FVTPL FVOCI Amortised cost
Financial assets Investments - Equity instruments - Debt instruments Loans Trade receivables Cash and cash equivalents Other bank balances Bank deposits with more than 12 months maturity Other fnancial assets Total fnancial assets Financial liabilities Borrowings Trade payables Financial guarantee obligation Other fnancial liabilities Total fnancial liabilities	- 14,10,778 - - 14,08,449 - - - - - - - - - 2,06,220 - - 2,04,031 - - 6,028 - - 6,098 - - 171 - - 162 - - 439 - - 1,747 - - 322 - - 395 - - 1,02,895 - - 90,881 - 14,10,778 3,16,075 - 14,08,449 3,03,314 - - 7,47,654 - - 7,36,757 - - 1,228 - - 2,092 - - 3,719 - - 6,814 - - 1,15,422 - - 1,16,699 - - 8,68,023 - - 8,62,363

(b) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. The Company has not disclosed the fair values of financial instruments such as short-term trade receivables, trade payables, cash and cash equivalents, fixed deposits, security deposits, etc. as carrying value is reasonable approximation of the fair values. 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 Ind AS. An explanation of each level follows underneath the table:

				`in lakhs
Financial assets and liabilities measured at fair value -	Level 1	Level 2	Level 3	Total
recurring fair value measurements as at March 31, 2021
Financial assets
Financial Investments at FVOCI
Unquoted equity instruments - Investments in subsidiaries	-	-	14,10,778	14,10,778
Total fnancial assets	-	-	14,10,778	14,10,778
				`in lakhs
Assets and liabilities which are measured at amortised cost	Level 1	Level 2	Level 3	Total
for whichfair values are disclosed as at March 31, 2021
Financial assets
Debt instruments- Investments in subsidiaries	-	-	-	-
Loans
Inter-corporate deposits to subsidiaries	-	-	1,33,278	1,33,278
Total fnancial assets	-	-	1,33,278	1,33,278

109

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

				`in lakhs
Assets and liabilities which are measured at amortised cost	Level 1	Level 2	Level 3	Total
for whichfair values are disclosed as at March 31, 2021
Financial Liabilities
Borrowings	-	1,87,766	-	1,87,766
Financial Guarantee obligation	-	-	3,719	3,719
Total fnancial liabilities	-	1,87,766	3,719	1,91,485
Financial assets and liabilities measured at fair value -	Level 1	Level 2	Level 3	Total
recurring fair value measurements as at March 31, 2020
Financial assets
Financial Investments at FVOCI
Unquoted equity instruments - Investments in Subsidiaries	-	-	14,08,449	14,08,449
Total fnancial assets	-	-	14,08,449	14,08,449
Assets and liabilities which are measured at amortised cost for	Level 1	Level 2	Level 3	Total
whichfair values are disclosed as at March 31, 2020
Financial assets
Loans
Inter-corporate deposits to subsidiaries	-	-	1,32,801	1,32,801
Total fnancial assets	-	-	1,32,801	1,32,801
Financial Liabilities
Borrowings	-	1,57,496	-	1,57,496
Financial Guarantee obligation		-	6,814	6,814
Total fnancial liabilities	-	1,57,496	6,814	1,64,310

The following table presents the changes in level 3 items for the periods ended March 31, 2021 and March 31, 2020:

		`in lakhs
Particulars		Investment in subsidiaries
		- Equity instruments
As at March 31, 2019		17,74,421
Acquisition		1
Gains/(losses) recognised in Other Comprehensive Income		(3,65,973)
As at March 31, 2020		14,08,449
Acquisition		-
Gains/(losses) recognised in Other Comprehensive Income		2,329
As at March 31, 2021		14,10,778
Sensitivity analysis
		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Fair value - Unlisted Equity Securities	1,410,778	14,08,449
Signifcant unobservable inputs
Risk adjusted discount rate
Increase by 50 bps	(34,100)	(28,300)
Decrease by 50 bps	36,100	30,000

110

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(d) Fair value of financial assets and liabilities measured at amortised cost

	`in lakhs
Particulars	March 31, 2021 March 31, 2020
	Carrying amount Fair value Carrying amount Fair value
Financial assets Debt instruments- Investments in subsidiaries Loans Inter-corporate deposits to Subsidiaries Total fnancial assets Financial Liabilities Borrowings Financial guarantee obligation Total fnancial liabilities	- - - - 1,33,278 1,33,278 1,32,801 1,32,801 1,32,801 1,32,801 1,87,766 1,87,766 1,57,496 1,57,496 3,719 3,719 6,814 6,814 1,91,485 1,91,485 1,64,310 1,64,310

(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.

16 Financial risk management

The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk.

Risk	Exposure arising from	Measurement	Management
Credit Risk	Cash and cash equivalents, trade receivables, fnancial assets measured at	Ageing analysis	Diversifcation of bank deposits, letters of credit
	amortised cost.
Liquidity Risk	Borrowings and other liabilities	Rolling cash fow	Availability of committed
		forecasts	credit lines and borrowing
			facilities
Market risk – foreign	Recognised fnancial assets and liabilities	Sensitivity analysis	Un hedged
exchange	not denominated in Indian rupee (`)
Market risk – interest rate	Long-term borrowings at variable rates	Sensitivity analysis	Un hedged
Market risk- price risk	Unquoted investment in equity shares	-	-
	of subsidiaries – not exposed to price risk fuctuations

111

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

(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 including interest accrued of ` 1,16,354 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.

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.

				`in lakhs
March 31, 2021	Less than	Between 1 year	More than	Total
	1year	and 5years	5years
Financial liabilities
Borrowings*	6,81,172	69,350	1,04,680	8,55,202
Trade payables	1,227	-	-	1,227
Creditors for supplies and services	451	-	-	451
Dues to subsidiaries	4,233	-	-	4,233
Financial guarantee obligations	2,814	777	128	3,719
Others	1,10,738	-	-	1,10,738
Total fnancial liabilities	8,00,635	70,127	1,04,808	9,75,570

112

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

				`in lakhs
March 31, 2020	Less than	Between 1 year	More than	Total
	1year	and 5years	5years
Financial liabilities
Borrowings*	6,74,761	96,117	12,975	7,83,853
Trade payables	2,092	-	-	2,092
Creditors for supplies and services	380	-	-	380
Dues to subsidiaries	4,233	-	-	4,233
Financial guarantee obligations	4,061	2,511	242	6,814
Others	1,12,087	-	-	1,12,087
Total fnancial liabilities	7,97,614	98,628	13,217	9,09,459

Includes contractual interest payments based on the interest rate prevailing at the reporting date.
(c) Market risk

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.

• Foreign currency risk exposure

The Company’s exposure to foreign currency risk (all in USD $) at the end of the reporting period expressed in Rupees, are as follows

expressed in Rupees, are as follows
		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Financial liabilities
Borrowings	6,358	7,808
Interest accrued on borrowings	250	157
Net exposure to foreign currency risk (liabilities)	6,608	7,965

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.

denominated fnancial instruments.
	`in lakhs
	Impact onproft before tax/ PPE
	March 31, 2021 March 31, 2020
FX rate – increase by 6% on closing rate on reporting date FX rate– decrease by 6% on closing rate on reporting date * Holding all other variables constant	(397) (478) 397 478

The above amounts have been disclosed based on the accounting policy for exchange differences (Refer note 2.1(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. The Company’s borrowings at variable rate were mainly denominated in Rupees.

113

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

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.

Interest rate risk exposure

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows

as follows
		`in lakhs
Particulars	March 31, 2021	March 31,2020
Borrowing at variable rate	1,39,740	1,44,299

• Interest sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates for the next one year

interest rates for the next one year
	`in lakhs
Particulars	Impact onproft/(loss) before tax
	March 31, 2021 March 31,2020
Interest sensitivity Interest cost – increase by 5% on existing Interest cost Interest cost – decrease by 5% on existing Interest cost	(631) (755) 631 755

Holding all other variables constant

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:

summarizes the capital of the Company:
		`in lakhs
Particulars	March 31, 2021	March 31,2020
Equity (excluding other reserves) Debt Total	12,88,891 6,73,377 19,62,268	12,83,357 6,86,886 19,70,243

(b) Final Dividends for the year ended March 31, 2021 is Nil (March 31, 2020: Nil).

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.

Information about major customers

Revenue from sale of energy for the year ended March 31, 2021 and March 31, 2020 was from a customer located in India. Customer is a private distribution entity. Revenue from sale of energy to specific customer exceeding 10% of total revenue for the years ended March 31, 2021 and March 31, 2020 were as follows:

	`in lakhs
Customer Name	For theyear ended
	March 31, 2021 March 31,2020
	Revenue Percent Revenue Percent
Adani ElectricityMumbai Limited	3,623 100% 4,963 100%

19. Exchange Difference on Long Term Monetary Items

As explained above in note 2.1(l) 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 gain of 185 lakhs (March 31, 2020 loss of 717 lakhs) towards the exchange difference arising on long term foreign currency monetary liabilities towards depreciable assets.

114

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

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

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.

under the said Act.
		`in lakhs
Particulars	As at	As at
	March 31, 2021	March 31,2020
Principal amount due to suppliers as at the year end	@	3
Interest accrued, due to suppliers on the above amount, and unpaid as at the year	-	-
end
Payment made to suppliers(other than interest) beyond the appointed date under	-	-
Section 16 of MSMED
Interest paid to suppliers under MSMED Act (other than Section 16)	-	-
Amount of Interest paid by the Company in terms of Section 16 of the MSMED,	-	-
along with the amount of the payment made to the supplier beyond the appointed
day during the accounting year
Amount of Interest due and payable for the period of delay in making the payment,	-	-
which has been paid but be yond the appointed date during the year, but without adding the interest specifed under MSMED Act
Amount of Interest accrued and remaining unpaid at the end of each accounting	-	-
year to suppliers
Amount of further interest remaining due and payable even in the succeeding	-	-
years, until such date when the interest dues as above are actually paid to the
small enterprise, for the purpose of disallowance as a deductible expenditure
under Section 23 of MSMED

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

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

(b) Exceptional items:
- During previous year, the Company had created provision against advances aggregating to ` 19,456 lakhs and has considered the same as an exceptional item for the year ended March 31, 2020.

23. The Company has outstanding obligations payable to lenders and its current liabilities exceed current assets as at March 31, 2021 by 6,06,590 lakhs (March 31, 2020: 6,14,947 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 financials results of the Company have been prepared on a Going Concern Basis.

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

115

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

25. Disclosure pursuant to para 44 A to 44 E of Ind AS 7 - Statement of cash flows

Disclosure pursuant to para 44 A to 44 E of Ind AS 7 - Statement of cash fows
		`in lakhs
Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Long term Borrowings
Opening Balance
- Non Current	74,986	84,155
- Current	64,868	66,503
Availed during the year	-	-
Changes in Fair Value
- Impact of Effective Rate of Interest	676	1011
- Exchange (gain) / loss	(185)	716
Reclassifcation from short term to long term	20,487	-
Repaid during the year *	(4,816)	(12,531)
Closing Balance	1,56,016	1,39,854
Short term Borrowings and advances
Opening Balance	5,51,265	6,50,117
Availed during the year *	10,226	46,137
Increase due to assignment	2,469	-
Reclassifcation from short term to long term	(40,000)	-
Write back of ICD	(2,000)	-
Repaid during the year **	(366)	(1,44,989)
Closing Balance	5,21,594	5,51,265
Interest Expenses
Interest accrued but not due on borrowings	49,872	20,679
Interest charge as per Statement Proft & Loss / Intangible assets under	42,442	48,726
development
Changes in Fair Value
- Impact of Interest	(676)	(1,015)
Regrouping of Interest on BG	4,201	3,638
Write back of interest on ICD	(407)	-
Regrouping of NCD/ ICD interest to Long term borrowing	(7,879)	-
Interest unwinding on fair valuation of NCD/ ICD	(1,563)	-
Interest assignment/ paid to Lenders ***	(11,714)	(22,157)
Closing Balance	74,278	49,872

Includes (repayment)/ availed loan of ` 3,312 lakhs through sale of shares by bank

**Includes assignment/ adjustment of Nil (March 31, 2020 1,17,407 lakhs)

***Includes assignment of Nil (March 31, 2020 11,515 lakhs)

26. Delay/Default in repayment of Borrowing (Non-current) and Interest

The Company has delayed/defaulted in the repayment of borrowings. The lender wise details are as under:

SN Name of Lender	Borrowings Interest
	Delay in repayment during the year ended March 31, 2021 Default as at March 31, 2021 Delay in payment during the year ended March 31, 2021 Default as at March 31, 2021
	Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)<br>Amount<br>(`in lakhs) Period (Maximum days) Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)<br>Amount<br>(`in lakhs) Period (Maximum days)
I Loan from Banks 1 Axis Bank 2 Yes Bank 3 Axis Bank - Gift City 4 DBS Bank India 5 IDBI Bank 6 ICICI Bank	3,225 457 6,960 457 50 425 1,649 457 91 81 52,458 791 243 82 19,114 791 478 90 517 90 - - 171 90 126 77 63 1 549 78 363 59 - - - - 264 62 15 30 - - 17,213 805 - - 8,412 791

116

Reliance Power Limited

Notes to the financial statements for the year ended March 31, 2021

SN Name of Lender	Borrowings	Borrowings	Interest	Interest
	Delay in repayment during the year ended March 31, 2021	Default as at March 31, 2021	Delay in payment during the year ended March 31, 2021	Default as at March 31, 2021
	Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)\|Amount<br>(`in lakhs) Period (Maximum days)	Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)\|Amount<br>(`in lakhs) Period (Maximum days)
II Non-convertible debentures 7 Yes Bank	- - 3,920	- - 77,211	6,765 364 7,871	9,419 185 39,143

As at March 31, 2021 the Company has overdue of 77,211 lakhs (March 31, 2020 71,269 lakhs) included in the current maturities of long term debt in note no. 3.12(c) and 39,143 lakhs (March 31, 2020 23,431 lakhs) included in interest accrued in note no. 3.12(c).

27. COVID-19 has impacted businesses globally and in India. The Company has continued its assessment of likely adverse impact on economic environment in general and financial risks on account of COVID-19. The Company is in the business of generation of electricity which is an essential service as emphasized by the Ministry of Power, Government of India and hence, the Company has ensured the availability of its power plant to generate power and honour commitments made under various power purchase agreements. The demand for electricity nearly bounced back to normal levels in keeping with the resumption of economic activities since easing of lockdown in various States during the 1st wave of COVID-19 pandemic. However, now the country is faced with the 2nd wave of COVID -19 pandemic and there exists uncertainity over its impact on future business performances, arising from among other things, any action to contain its spread or mitigate its impact whether government-mandated or elected by the Company and its evolving impact on distribution utilities in terms of demand for electricity; consumption mix; resultant average tariff realization; bill collections from consumers; and support from respective State Governments and banks & financial institutions, including those focused on power sector financing. However, in view of power generation being considered as essential activity as also given the experience of sustaining its operation successfully during the pandemic year, the Company is confident of another year of successful operations with the support from its power procurers and other stakeholders.

28. 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 386 lakhs as rent expenses in the Statement of Profit and Loss (March 31, 2020 47 lakhs).

29. The Indian Parliament has approved the Code on Social Security, 2020, which would impact the contributions by the Company towards Provident Fund, Gratuity and others. 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.

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

As per our attached report of even date For and on behalf of the Board of Directors For Pathak H.D. & Associates LLP Anil D. Ambani Chairman Chartered Accountants Chhaya Virani Firm Registration No: 107783W/W100593 Bimal Julka Director Vijay Kumar Sharma Vishal D. Shah Partner K. Raja Gopal Whole-time Director & CEO Membership No: 119303 Sandeep Khosla Chief Financial Officer Murli Manohar Purohit Company Secretary Place : Mumbai Place : Mumbai Date : May 07, 2021 Date : May 07, 2021

117

Reliance Power Limited

Independent Auditors’ Report

To the Members of Reliance Power Limited Report on the Audit of Consolidated Financial Statements

Qualified Opinion

We have audited the consolidated financial statements of Reliance Power Limited (hereinafter referred to as the “Parent Company”) and its subsidiaries (Parent Company and its subsidiaries together referred to as “the Group”) and its associates which comprise the consolidated balance sheet as at March 31, 2021, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors on separate financial statements of such subsidiaries and associates as were audited by the other auditors, except for the possible effects of the matters described in the Basis for Qualified opinion paragraph below, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group and its associates as at March 31, 2021, of its consolidated profits and other comprehensive profit, consolidated changes in equity and consolidated cash flows for the year then ended.

Basis for Qualified Opinion

We draw attention to Note no. 36 of the consolidated financial statements regarding non provision of interest amounting to 34,078 lakhs for the year ended March 31, 2021 on the borrowings of a wholly owned subsidiary company Vidarbha Industries Power Limited (VIPL). VIPL has not provided for the interest for the reasons stated in the aforesaid note. The said non provision of the interest on borrowings of VIPL is not in accordance with the provisions of Ind AS 23 “Borrowing Cost” and Ind AS 1 “Presentation of Financial Statements”. Had the interest been provided by VIPL the finance cost for the year ended March 31, 2021 would have been higher by 34,078 lakhs and Profit before tax of the Group for the year ended March 31, 2021 would have been lower by an equivalent amount.
We draw attention to Note no. 35 of the consolidated financial statements which sets out the fact that Vidarbha Industries Power Limited (VIPL) has incurred losses during the year ended March 31, 2021 as well as during the previous years, its current liabilities exceeds current assets, Power Purchase Agreement with Adani Electricity Mumbai Limited stands terminated w.e.f. December 16, 2019, its plant remaining un-operational since January 15, 2019 and one of the lenders filed an application under the provision of Insolvency and Bankruptcy Code. These events and conditions indicate material uncertainty exists that may cast a significant doubt on the ability of VIPL to continue as a going concern. However the accounts of VIPL have been prepared on a going concern for the factors stated in the aforesaid note. We however are unable to obtain sufficient and appropriate audit evidence regarding management’s use of the going concern assumption in the preparation of consolidated financial statement, in view of non-provisioning of interest as explained in paragraph
1 above together with the events and conditions more explained in the Note no. 36 of the consolidated financial statements does not adequately support the use of going concern assumption in preparation of the financial statements of VIPL.
We refer to Note no. 31 of the consolidated financial statements, regarding method of depreciation adopted by the Parent Company for the purpose of preparing its consolidated financial statements being different from the depreciation method adopted by its subsidiaries which is a departure from the requirements of Ind AS 8 “Accounting Policies, Changes in accounting estimates and errors” since selection of the method of depreciation is an accounting estimate and depreciation method once selected in the standalone financial statements is not changed while preparing consolidated financial statements in accordance with Ind AS 110 “Consolidated Financial Statements”. Management’s view in this regard has been set out in the aforesaid note. Had the method of depreciation adopted by the subsidiaries of the Parent Company been considered for the purpose of preparation of consolidated financial statements of the Parent Company, the profit after tax in the consolidated financial statements for the year ended would have decreased by 42,741 lakhs respectively and other equity and property, plant and equipment would have reduced by 42,741 lakhs and ` 57,097 lakhs respectively.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) and we have fulfilled our other ethical responsibilities in accordance with the provisions of the Act. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for qualified opinion.

Material Uncertainty related to going concern

We draw attention to Note no. 34(a) of the consolidated financial statements wherein the auditors of Rajasthan Sun Technique Energy Private Limited (RSTEPL) have highlighted material uncertainty related to going concern of RSTEPL. However, the accounts of RSTEPL have been prepared on a Going concern basis for the reasons stated in the aforesaid note.
The auditors of some of the subsidiaries as stated in Note no. 34(b) of the consolidated financial statements have highlighted material uncertainty related to going concern / emphasis of matter paragraphs / key audit matters related to going concern in their respective audit reports.
We draw attention to Note no. 34(c) of the consolidated financial statements regarding the Group’s ability to meet its obligations is dependent on certain events which may or may not materialise including restructuring of loans, time bound monetization of assets and realisation of regulatory / arbitration claims. There are material uncertainties which could impact the Group’s ability to continue as a going concern. However, the Group is confident of meeting its obligations in the normal course of its business and accordingly, the consolidated financial statements of the Group have been prepared on a going concern basis.

Our opinion is not modified in respect of the above matters.

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Reliance Power Limited

Independent Auditor’s Report

Emphasis of matter

We draw attention to Note no. 24 and 25 of the consolidated financial statements regarding the applications made by two subsidiaries of the Parent Company before the National Company Law Tribunal (NCLT) for revision of their standalone statutory financial statements for the year ended March 31, 2018.
We draw attention to Note no. 40 of the consolidated financial statements, as regards to the management evaluation of impact of COVID – 19 on the future performance of the Group.

Our opinion is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment and based on the consideration of reports of other auditors on separate financial statements of components audited by them, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon and we do not provide a separate opinion on these matters. Key audit matters are in addition to the matters described in the Basis for Qualified Opinion section and Material Uncertainty Related to Going Concern section of this report.

2. We draw attention to Note no. 40 of the consolidated fnancial statements, as regards to the management evaluation of impact of COVID – 19 on the future performance of the Group. Our opinion is not modifed in respect of above matters.	consoate fnanca statements as a woe, an n formng ou opinion thereon and we do not provide a separate opinion on these matters. Key audit matters are in addition to the matters described in the Basis for Qualifed Opinion section and Material Uncertainty Related to Going Concern section of this report.
The Key Audit Matter	How the matter was addressed in our audit
Loans and advances and Other Receivables – impairment evaluation
The Parent Company and the auditors of Dhursar Solar Power Private Limited (DSPPL) have reported the evaluation of the adequacy of provision for loans and advances, trade receivables and other receivable and as a key audit matter due to signifcance of the amount of loans and advances and receivables in the consolidated fnancial statements. The Parent Company and DSPPL have granted loans and advances and have certain receivables from various parties including related parties. These loans and receivables are tested for impairment annually. If any impairment exists, the recoverable amounts of the loans and receivables are estimated in order to determine the extent of the impairment loss, if any. Determination of whether there exists any impairment in the value of loans and receivables is subject to a signifcant level of judgment. Refer to Note no. 3.4(b), 3.8(b) and 3.8(e) of the consolidated fnancial statements.	Our procedures included the following: • Obtained independent confrmation of balances outstanding from recipients and traced the amounts confrmed to the books of account; • Verifed whether the requisite approvals were obtained for the loan given and ensured other compliances as required by the applicable regulation. • Perused the audited fnancial statements of those entities to evaluate whether its net assets, being an approximation of its minimum recoverable amount, were in excess of the amounts due for assessing the repayment capability of the concerned entity; • Verifed the adequacy of the impairment / write off made by management on their best estimates and judgment where applicable.
Impairment Assessment of Capital Advances, fair valuation of Capital Work In Progress(CWIP) and Assets heldfor sale.
The auditors of Rajasthan Sun Technique and Energy Private Limited (RSTEPL) and Samalkot Power Limited (SMPL) have reported the impairment assessment of capital advances and certain receivables, fair valuation of CWIP and Project status as a key audit matter due to signifcance of the amount as stated in the consolidated fnancial statements and complexity and nature of transactions. If any impairment exists, the recoverable amounts of capital advances determination of whether there exists any impairment in the value of capital advances and other receivable is subject to a signifcant level of judgment. SMPL has revalued their CWIP based on sales price of Module 1 and valuation report of Module 2 & 3 and credited the gain on such revaluation to Statement of Proft and Loss. Refer Note no. 3.1, 3.2, 3.6 and 7 of the consolidated fnancial statements	Procedures includes the following: • Perused fair valuation reports obtained from an independent external valuation expert engaged by the companies. • Verifed the agreement signed by Reliance Bangladesh LNG and Power Limited (RBLPL) and Lenders approval for fnancing of the project and fnancing agreement and considered the conditions for achieving fnancial closure. • Evaluated the appropriateness of the related disclosure in Note no. 3.1, 3.2, 3.6 and 7 of the consolidated fnancial statements.

Other Information

The Parent Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in Parent Company’s annual report, but does not include in the financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise

appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management Responsibilities for the Consolidated Financial Statements

The Parent Company’s management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit/ loss and other comprehensive income/ loss, consolidated statement of changes in equity and consolidated

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Independent Auditor’s Report

cash flows of the Group including its associates in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. The respective Board of Directors of the companies to the extent incorporated in India included in the Group and of its associates are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Parent Company, as aforesaid.

In preparing the consolidated financial statements, the respective management and Board of Directors of the companies included in the Group and of its associates are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group and of its associates are responsible for overseeing the financial reporting process of each company.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group as well as its associates to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business activities within the Group and its associates to express an opinion on the consolidated financial statements, of which we are the independent auditors. We are responsible for the direction, supervision and performance of the audit of financial information of such entities. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in section titled ‘Other Matters’ in this audit report.

We believe that the audit evidence obtained by us along with the consideration of audit reports of the other auditors referred to in Other Matters paragraph below, is sufficient and appropriate to provide a basis for our qualified audit opinion on the consolidated financial statements.

We communicate with those charged with governance of the Parent Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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Independent Auditor’s Report

Other Matters

We did not audit the financial statements of 35 subsidiaries, whose financial statements reflect total assets of 8,30,298 lakhs as at March 31, 2021, total revenues of 17,211 lakhs and net cash inflows of 354 lakhs for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial statements also include the Group’s share of net loss and other comprehensive income of 2 lakhs and ` 2 lakhs respectively for the year ended March 31, 2021, in respect of three associates, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and associates, and our report in terms of sub- section (3) of section 143 of the Act, in so far as it relates to the aforesaid subsidiaries and associates is based solely on the audit reports of the other auditors.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

Report on Other Legal and Regulatory Requirements

A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on separate financial statements of such subsidiaries and associates as were audited by other auditors, as noted in the ‘Other Matters’ paragraph, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, except for the matters described in Basis for Qualified Opinion section, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
c) The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt with by this report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, except for the matters described in Basis for Qualified Opinion section, the aforesaid consolidated financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Parent Company as on March 31, 2021 taken on record by the Board of Directors of the Parent Company and the reports of the statutory auditors of its subsidiary companies and associate companies incorporated in India, none of the directors of the Group companies and its associate companies incorporated in India are disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act.
f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion section of our report.
g) The matters described in the Basis for Qualified Opinion section above and going concern matter described in Material Uncertainty Related to Going Concern section

above, in our opinion, may have an adverse effect on the functioning of the Group.

h) With respect to the adequacy of the internal financial controls with reference to financial statements of the Parent Company, its subsidiary companies and associate companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.
i) With respect to the matter to be included in the Auditor’s report under section 197(16) of the Act:
- In our opinion and according to the information and explanations given to us and based on the reports of the statutory auditors of such subsidiary companies and associate companies incorporated in India which were not audited by us, the remuneration paid during the current year by the Parent Company, its subsidiary companies and associate companies to its directors is in accordance with the provisions of Section 197 read with schedule V of the Act. The remuneration paid to any director by the Parent Company, its subsidiary companies and associate companies is not in excess of the limit laid down under Section 197 of the Act.
B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements of the subsidiaries and associates, as noted in the ‘Other Matters’ paragraph:
i. The consolidated financial statements disclose the impact of pending litigations as at March 31, 2021 on the consolidated financial position of the Group and its associates. Refer Note no. 4 of the consolidated financial statements.
ii. Provision has been made in the consolidated financial statements, as required under the applicable law or Ind AS, for material foreseeable losses, on long-term contracts including derivative contracts. Refer Note no. 44 of the consolidated financial statements in respect of such items as it relates to the Group and its associates.
iii. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Parent Company or its subsidiary companies and associate companies incorporated in India during the year ended March 31, 2021.

For Pathak H. D. & Associates LLP

Chartered Accountants

Firm Registration No. 107783W/W100593

Vishal D. Shah

Partner

Membership No. 119303 UDIN: 21119303AAAAJO9600 Date: May 07, 2021 Place: Mumbai

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Reliance Power Limited

Annexure A to the Independent Auditor’s Report

Annexure A to the Independent Auditor’s Report on the consolidated financial statements of Reliance Power Limited for year ended March 31, 2021

Report on the Internal Financial Controls with reference to the aforesaid consolidated financial statements under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”)

(Referred to in Paragraph (A)(h) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

In conjunction with our audit of the consolidated financial statements of the Reliance Power Limited as of and for the year ended March 31, 2021, we have audited the internal financial controls with reference to consolidated financial statements of Reliance Power Limited (hereinafter referred to as “the Parent Company”) and such companies incorporated in India under the Act which are its subsidiary companies and its associates, as of that date.

Management’s Responsibility for Internal Financial Controls

The respective Company’s Management and Board of Directors of the Parent Company, its subsidiaries and its associates, which are companies incorporated in India are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to consolidated financial statements criteria established by the respective company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Parent Company’s internal financial controls with reference to consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note issued by ICAI and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to consolidated financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements were established and maintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of such internal financial controls,

assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our qualified audit opinion on internal financial controls with reference to consolidated financial statements of the Parent Company.

Meaning of Internal Financial controls with reference to

Consolidated Financial Statements

A company’s internal financial controls with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to consolidated financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the consolidated financial statements.

Inherent Limitations of Internal Financial controls with Reference to Consolidated Financial Statements

Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject to the risk that the internal financial controls with reference to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Parent Company and such companies incorporated in India which are its subsidiary and its associate companies, have, in all material respects, maintained adequate internal financial controls with reference to consolidated financial statements and such internal financial controls with reference to consolidated financial statements are operating effectively as of March 31, 2021, based on the internal control with reference

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Annexure A to the Independent Auditor’s Report

to consolidated financial statements criteria established by such companies considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to consolidated financial statements in so far as it relates to 24 subsidiary companies and 3 associate companies, which are companies incorporated in India, is based

on the corresponding reports of the auditors of such companies incorporated in India.

For Pathak H. D. & Associates LLP

Chartered Accountants Firm Registration No. 107783W/W100593

Vishal D. Shah Partner Membership No. 119303 UDIN: 21119303AAAAJO9600

Date: May 07, 2021 Place: Mumbai

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Reliance Power Limited

Consolidated Balance Sheet as at March 31, 2021

Consolidated Balance Sheet as at March 31, 2021
			`in lakhs
Particulars Note No. Ma	rc	As at h 31, 2021 M	As at arch 31, 2020
ASSETS Non-current assets Property, plant and equipment 3.1 Capital work-in-progress 3.2 Goodwill on consolidation Other Intangible assets 3.3 Financial assets Investments 3.4(a) Loans 3.4(b) Finance lease receivables 3.4(c) Other fnancial assets 3.4(d) Non-current tax assets 3.5 Other non-current assets 3.6 Total Non-current Assets Current assets Inventories 3.7 Financial assets Investments 3.8(a) Trade receivables 3.8(b) Cash and cash equivalents 3.8(c) Bank balances other than cash and cash equivalents 3.8(d) Loans 3.8(e) Finance lease receivables 3.8(f) Other fnancial assets 3.8(g) Other current assets 3.9 Total Current Assets Assets classifed as held for sale 3.10 Total Assets EQUITY AND LIABILITIES Equity Equity share capital 3.11 Other equity 3.12 Equity attributable to owners of the company Non-controlling interests Total Equity Liabilities Non-current liabilities Financial liabilities Borrowings 3.13(a) Other fnancial liabilities 3.13(b) Provisions 3.14 Deferred tax liabilities (net) 3.15 Other non-current liabilities 3.16 Total Non-current liabilities Current liabilities Financial liabilities Borrowings 3.17(a) Trade payables 3.17(b) Total Outstanding dues of micro enterprises and small enterprises Total Outstanding dues of creditors other than micro enterprises and small enterprises Other fnancial liabilities 3.17(c) Other current liabilities 3.18 Provisions 3.19 Current tax liabilities 3.20 Total Current liabilities Total Equity and Liabilities Signifcant accounting policies 2 Notes to consolidated fnancial statements 3 to 48 The accompanying notes are an integral part of these Consolidated Financial Statements.		37,14,468 1,91,168 1,411 3,164 429 39,518 3,94,479 8,130 5,183 1,48,006 45,05,956 87,412 3,128 2,40,988 14,420 17,101 15,489 29,766 56,567 21,856 4,86,727 85500 50,78,183 2,80,513 9,44,071 12,24,584 1,56,801 13,81,385 16,83,149 18,017 4,897 2,20,545 1,77,370 21,03,978 3,79,332 4,185 37,337 10,73,523 94,484 538 3,421 15,92,820 50,78,183	38,52,600 3,61,479 1,411 3,349 23 40,786 4,24,085 9,752 5,979 1,49,385
			48,48,849 1,01,418 3,021 2,36,104 12,494 15,949 13,910 29,876 66,887 5,730
			4,85,389 52
			53,34,290
			2,80,513 9,06,374
			11,86,887 1,35,279
			13,22,166 19,86,056 14,628 5,116 2,27,685 1,83,278
			24,16,763 4,31,122 2,565 40,872 10,26,468 76,654 585 17,095
			15,95,361
			53,34,290

As per our attached report of even date For and on behalf of the Board of Directors For Pathak H.D. & Associates LLP Anil D. Ambani Chairman Chartered Accountants Chhaya Virani Firm Registration No: 107783W/W100593 Bimal Julka Director Vijay Kumar Sharma Vishal D. Shah Partner K. Raja Gopal Whole-time Director & CEO Membership No: 119303 Sandeep Khosla Chief Financial Offcer Murli Manohar Purohit Company Secretary Place : Mumbai Date : May 07, 2021 Place : Mumbai Date : May 07, 2021

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Reliance Power Limited

Consolidated Statement of Profit and Loss for the year ended March 31, 2021

Consolidated Statement of Proft and Loss for the year ended March 31, 2021
		`in lakhs
Particulars Note No. Ma	Year ended rch 31, 2021 M	Year ended arch 31, 2020
Revenue from operations 3.21 Other Income 3.22(a) Total Income Expenses Cost of fuel consumed (including cost of coal excavation) 3.23 Employee benefts expense 3.24 Finance costs 3.25(a) Depreciation and amortisation expense Generation, administration and other expenses 3.26(a) Total expenses Proft/ (Loss) before exceptional items and tax Exceptional Items 32 Provisions, write off and impairment of assets Gain on ceasation of subsidiary Proft / (Loss) before tax Income tax expense 16 Current tax Deferred tax Income tax for earlier years Total tax expenses Proft / (Loss) from Continuing Operations Discontinuing Operations: 43 Proft before tax from Discontinuing Operations Tax Expense of Discontinuing Operations Proft from Discontinuing Operations Proft / (Loss) for the year before non-controlling interest Non-controlling interest Proft/ (Loss) for the year Other Comprehensive Income Items that will not be reclassifed to proft or loss (a) Remeasurements of post-employment beneft obligation (net) (Refer note 11) (b) Currency translation Gains Other Comprehensive Income for the year Total Comprehensive Income/ (Loss) for the year Proft / (Loss) attributable to: (a) Owners of the parent (b) Non-controlling interest Other Comprehensive Income attributable to: (a) Owners of the parent (b) Non-controlling interest Total Comprehensive Income / (Loss) attributable to: (a) Owners of the parent (b) Non-controlling interest Earnings per equity share: (Face value of`10 each) 14 Basic and Diluted (Rupees)- for continuing operations Basic and Diluted (Rupees)- for discontinuing operations Basic and Diluted (Rupees)- for continuing and discontinuing operations @Amount is below the rounding off norms adopted by the Group Signifcant accounting policies 2 Notes to consolidated fnancial statements 3 to 48 The accompanying notes are an integral part of these Consolidated Financial Statements	7,93,401 45,459 8,38,860 3,11,669 15,606 2,53,859 1,08,321 1,08,630 7,98,085 40,775 - 442 442 41,217 5,646 (7,140) 3 (1,491) 42,708 2,686 @ 2,686 45,394 22,531 22,863 444 (334) 110 45,504 22,863 22,531 45,394 131 (21) 110 22,994 22,510 45,504 0.719 0.096 0.815	7,56,227 64,014
		8,20,241
		2,89,660 20,933 3,05,397 83,628 1,43,356
		8,42,974
		(22,733) (4,00,421) -
		(4,00,421)
		(4,23,154) 4,518 (2,128) (24)
		2,366
		(4,25,520)
		(1,628) @
		(1,628)

		(4,27,148)
		(19,489)
		(4,07,659)
		(281) 2913
		2632

		(4,24,516)
		(4,07,659) (19,489)
		(4,27,148)
		2671 (39)
		2632
		(4,04,988) (19,528)
		(4,24,516)

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Attributable to Non- controlling interests	Attributable to Non- controlling interests	- - (39)	(39) - - - 12,379 1,22,939	1,35,279	- (21)
Attributable to owners of the Company		14,57,234 (4,27,148) (242)	(4,27,390) (655) (3,962) 8,882 - (1,27,735)	9,06,374	45,394 465
Other reserves	General Reserve (Arisen pursuant to composite schemes of arrangement)	454 - -	- - - - - -	454	- -
	Capital Reserve (on consolidation)	8,337 - -	- - - - - -	8,337	- -
	Foreign currency translation reserve	18,704 - -	- - 2,913 - - (28)	21,589	- -
	Treasury Shares	(845) - -	- - - - - -	(845)	- -
	Foreign currency monetary item translation difference account	(9,580) - -	- - (6,875) 8,882 - 2,257	(5,316)	- -
Reserve and Surplus	Debenture redemption reserve	4,683 - -	- - - - - -	4,683	- -
	General Reserve	97,807 - -	- - - - - -	97,807	- -
	Retained Earnings	5,02,220 (4,27,148) (242)	(4,27,390) (655) - - - (95,173)	(20,998)	45,394 465
	Securities Premium	8,35,454 - -	- - - - - (34,791)	8,00,663	- -
Particulars		Balance as at March 31, 2019 Loss for the year Other Comprehensive Income for the year Remeasurements of post- employment beneft obligation (net)	Total Comprehensive Income for the year Earlier period adjustments Addition during the year Amortisation during the year Proceeds from Non-controlling interest Share of Non-controlling interest	Balance as at March 31, 2020	Proft for the year Other Comprehensive Income for the year Remeasurements of post-employment beneft obligation (net)

126

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Other reserves Attributable Attributable	to owners of the Company to Non- controlling interests Foreign currency translation Capital Reserve (on consolidation) General Reserve (Arisen	reserve pursuant to	composite	schemes of	arrangement)	- - - 45,859 (21)		- - - 15,843 -	(334) - - 832 -	- - - 3,607 -	- - - (28,701) 28,701	- - - - 1,12,558		28 - - 258 (1,19,716)		21,283 8,337 454 9,44,071 1,56,801	For and on behalf of the Board of Directors	Anil D. Ambani Chairman	Chhaya Virani	Bimal Julka Director		K. Raja Gopal Whole-time Director & CEO Sandeep Khosla Chief Financial Offcer	K. Raja Gopal Whole-time Director & CEO Sandeep Khosla Chief Financial Offcer	Place : Mumbai	Date : May 07, 2021
	Treasury Shares					-		-	-	-	-	-		-		(845)
	Foreign currency monetary	item	translation	difference	account	-		-	1,166	3,607	(1,430)	-		-		(1,973)
	Debenture redemption reserve					-		-	-	-	-	-		-		4,683
Particulars Reserve and Surplus Securities Premium Retained Earnings General Reserve						Total Comprehensive Income for - 45,859 -	the year	Earlier period adjustment - 15,843 -	Addition during the year - - -	Amortisation during the year - - -	Share of Non-controlling interest - (27,272) -	Proceeds form Non-controlling - - -	interest	Cease of Non-controlling - 230 -	interest	Balance as at March 31, 2021 8,00,663 13,662 97,807	As per our attached report of even date	For Pathak H.D. & Associates LLP	Chartered Accountants	Firm Registration No: 107783W/W100593	Vishal D. Shah	Partner	Membership No: 119303	Place : Mumbai	Date : May 07, 2021

127

Reliance Power Limited

Consolidated Cash Flow Statement for the year ended March 31, 2021

Consolidated Cash Flow Statement for the year ended March 31, 2021
		`in lakhs
Particulars	Year ended March 31, 2021	Year ended March 31, 2020
(A) Cash fow from / (used in) operating activities Proft/ (Loss) before tax Adjusted for: Gain arising on mutual fund investment mandatorily measured at fair value Depreciation / amortisation Finance cost including (gain) / loss on derivative Loss on sale of current investment (non trade) Interest income Fair valuation gain on ICD and NCD Loss/ (gain) on foreign exchange fuctuations (net) Provision/ liabilities written-back Government grant (Gain)/Loss on sale of fxed assets Amount provided/ written-off Advances provided/ written off/ impairment of CWIP Provision for leave encashment and gratuity Change in operating assets and liabilities: (Increase) / decrease in inventories (Increase) / decrease in trade receivables (Increase) / decrease in other fnancial assets (Increase) / decrease in other current assets Increase / (decrease) in other current liability Increase / (decrease) in trade payables Increase / (decrease) in other fnancial liabilities Taxes paid / refund (net) Net cash from operating activities - Continuing Operations Net cash from operating activities - Discontinuing Operations Net cash from operating activities - Continuing and Discontinuing Operations (B) Cash fow from / (used in) investing activities Payment for Property, plant and equipments including capital advance Proceeds from sale of Property, plant and equipments Interest income on bank and other deposits Inter corporate deposits/ project/ other advances (net) Sale / (purchase) of investments (net) Fixed deposits / margin money deposits having original maturity more than three months Net cash used in investing activities - Continuing Operations Net cash (used in)/ generated from investing activities - Discontinuing Operations - Asset held for sale Net cash used in investing activities - Continuing and Discontinuing Operations	41,217 (108) 1,29,307 2,53,859 - (4,646) (28,954) 6,895 (3,589) (5,307) (10) 1,625 - 591 3,90,880 13,744 (6,167) 47,924 (16,136) 15,343 (2,775) (26,675) 25,258 (4,027) 4,12,111 2,751 4,14,862 (13,396) 23 3,466 (1,288) - (1,083) (12,278) 60,838 48,560	(4,23,154) (494) 98,406 3,05,397 398 (9,229) - 2,182 (4,045) (5,307) - 32,583 4,00,421 801
		3,97,959 (246) (17,561) 38,237 25,510 11,301 1,577 9,407
		68,225
		(11,890)
		4,54,294
		(12)
		4,54,282
		(54,444) - 8,784 (1,56,595) 19,840 1,57,705
		(24,710)
		-
		(24,710)

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Reliance Power Limited

Consolidated Cash Flow Statement for the year ended March 31, 2021

Consolidated Cash Flow Statement for the year ended March 31, 2021
		`in lakhs
Particulars	Year ended March 31, 2021	Year ended March 31, 2020
(C) Cash fow from / (used in) fnancing activities Proceeds from Non Controlling Interest Repayment of long term borrowings Proceeds from/ (repayment for) short term borrowings - (net) Proceeds from short term borrowings Interest and fnance charges Inter corporate deposits received/ (refund) (net) Net cash (used in) fnancing activities - Continuing Operations Net cash (used in) fnancing activities - Discontinuing Operations - Repayment of borrowings Net cash (used in) fnancing activities - Continuing and Discontinuing Operations Net increase / (decrease) in cash and cash equivalents (A+B+C) Opening balance of cash and cash equivalents Closing balance of cash and cash equivalents Components of cash and cash equivalents (Refer note 3.8(c))	- (1,76,347) (53,263) 11,920 (1,83,418) 10,914 (3,90,194) (71,302) (4,61,496) 1,926 12,494 14,420	12,379 (1,86,700) (24,061) - (2,11,399) (10,185)
		(4,19,966)
		-
		(4,19,966)

		9,606
		2,888 12,494

The accompanying notes are an integral part of these Consolidated Financial Statements.

As per our attached report of even date For Pathak H.D. & Associates LLP Chartered Accountants Firm Registration No: 107783W/W100593

For and on behalf of the Board of Directors Anil D. Ambani Chairman Chhaya Virani Bimal Julka Director Vijay Kumar Sharma

Vishal D. Shah

Partner Membership No: 119303 Place : Mumbai Date : May 07, 2021

K. Raja Gopal Whole-time Director & CEO Sandeep Khosla Chief Financial Officer Murli Manohar Purohit Company Secretary Place : Mumbai Date : May 07, 2021

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Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

1) General Information

Reliance Power Limited (“the Parent Company” or “the Company”) together with all of its subsidiaries (“the Group”) and its associates is primarily engaged in the business of generation of power. The projects include coal, gas, hydro, wind and solar based energy projects. The portfolio of the Group also includes Ultra Mega Power Projects (UMPPs).

The Parent Company is a Public Limited Company and its equity shares are listed on two recognised stock exchanges in India and is incorporated and domiciled in India under the provisions of the Companies Act, 1956. The registered office of the Parent Company is located at Reliance Centre, Ground Floor, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400001.

These consolidated financial statements were authorised for issue by the Board of Directors of the Parent Company on May 07, 2021.

2) Significant accounting policies, critical accounting estimates and judgements

2.1 Basis of preparation, measurement and significant accounting policies

The principal accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group and its associates.

(a) Basis of preparation of consolidated financial statements

Compliance with Ind AS

The consolidated financial statements of the Group and its associates have been prepared in accordance with the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and relevant provisions of the Companies Act, 2013 (“the Act”) to the extent applicable.

Functional and presentation currency

The consolidated financial statements are presented in ‘Indian Rupees’, which is also the Parent Company’s functional currency. All amounts are rounded off to the nearest lakhs, unless otherwise stated.

Historical cost convention

The consolidated financial statements have been prepared under the historical cost convention, as modified by the following:

Certain financial assets and financial liabilities at fair value;
Assets held for sale – measured at fair value less cost to sell; and
Defined benefit plans – plan assets that are measured at fair value

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

Current vis-à-vis non-current classification

The assets and liabilities reported in the balance sheet are classified on a “current/non-current basis”, with separate reporting of assets held for sale and liabilities. Current assets, which include cash and cash equivalents, are the assets that are intended to be realized, sold or consumed during the normal operating cycle of the Group or in the 12 months following the balance sheet date; current liabilities are liabilities that are expected to be settled during the normal operating cycle of the Group or within the 12 months following the close of the financial year. The deferred tax assets and liabilities are classified as non-current assets and liabilities.

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Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(b) Principles of consolidation

i. Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on which control ceases.

The acquisition method of accounting is used to account for business combinations by the Parent Company. The financial statements of the Parent Company and its subsidiaries are consolidated by combining like items of assets, liabilities, income and expenses and cash flows after fully eliminating intra group balances and intra group transactions resulting in unrealized profit or loss in accordance with the Indian Accounting Standard (“Ind AS”) 110 “Consolidated Financial Statements” as referred to in the Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time. The consolidated financial statements are prepared using uniform Accounting Policies for the like transactions and other events in similar circumstances and are presented in the same manner as far as possible, as the standalone financial statements of the Parent Company.

Share of Non-controlling Interest in net profit or loss of consolidated subsidiaries for the year is identified and adjusted against income of the Group in order to arrive at the net income attributable to the equity shareholders of the Company. Non-controlling interests and net assets of the subsidiaries are identified and presented in the consolidated statement of profit and loss, consolidated statement of changes in equity and consolidated balance sheet respectively as a separate item from liabilities and the shareholder’s equity.

ii. Associates

Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost which includes transaction costs.

iii. Equity method

Under the equity method of accounting, the investments are initially recognised at cost, which includes transaction costs and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses and other comprehensive income (OCI) of the equity accounted investees. Dividends received or receivable from the associates are recognised as a reduction in the carrying amount of the investment.

When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the Group are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group.

The carrying amount of equity accounted investments are tested for impairment.

iv. Changes in ownership interests

Change in ownership interests for transaction with non-controlling interests that do not result in a loss of control are treated as the transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and Non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of adjustment to Noncontrolling interests and any consideration paid or received is recognised within equity. Gains or losses on disposals of control in subsidiaries to Non-controlling interests are recorded in equity.

When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in Other Comprehensive Income (OCI) in respect of that entity are accounted for as if the Group had directly disposed off the related assets or liabilities. This may mean that amounts previously recognised in OCI are reclassified to profit or loss.

If the ownership interest in an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in OCI are reclassified to profit or loss where appropriate.

131

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

v. The subsidiaries and associates considered in the consolidated fnancial statements are	v. The subsidiaries and associates considered in the consolidated fnancial statements are
SN Name of Company Principal place of business	Proportionate (%) of shareholding
	March 31, 2021 March 31, 2020
Subsidiaries 1 Rosa Power Supply Company Limited (RPSCL) India 70 70 2 Sasan Power Limited (SPL) India 100 100 3 Coastal Andhra Power Limited (CAPL) India 100 100 4 Maharashtra Energy Generation Limited (MEGL) India 100 100 5 Chitrangi Power Private Limited (CPPL) India 100 100 6 Vidarbha Industries Power Limited (VIPL) India 100 100 7 Siyom Hydro Power Private Limited (SHPPL) India 100 100 8 Tato Hydro Power Private Limited (THPPL) India 100 100 9 Kalai Power Private Limited (KPPL) India 100 100 10 Urthing Sobla Hydro Power Private Limited (USHPPL) India 89 89 11 Amulin Hydro Power Private Limited (AHPPL) () India - 100 12 Emini Hydro Power Private Limited (EHPPL) () India - 100 13 Mihundon Hydro Power Private Limited (MHPPL) () India - 100 14 Reliance Coal Resources Private Limited (RCRPL) India 100 100 15 Reliance CleanGen Limited (RCGL) India 100 100 16 Rajasthan Sun Technique Energy Private Limited (RSTEPL) India 100 100 17 Coastal Andhra Power Infrastructure Limited (CAPIL) India 100 100 18 Reliance Prima Limited (RPrima) India 100 100 19 Atos Trading Private Limited (ATPL) India 100 100 20 Atos Mercantile Private Limited (AMPL) India 100 100 21 Reliance Natural Resources Limited (RNRL) India 100 100 22 Dhursar Solar Power Private Limited (DSPPL) India 100 100 23 Reliance Natural Resources (Singapore) Pte Limited (RNRL-Singapore) Singapore 100 100 24 Purthi Hydro Power Private Limited (PHPPL) () India - 100 25 Teling Hydro Power Private Limited (TPPL) India 100 100 26 Shangling Hydro Power Private Limited (SPPL) India 100 100 27 Lara Sumta Hydro Power Private Limited (LHPPL) () India - 100 28 Sumte Kothang Hydro Power Private Limited (SKHPPL) () India - 100 29 Reliance Geothermal Power Private Limited (RGTPPL) India 75 75 30 Reliance Green Power Private Limited (RGPPL) India 100 100 31 Moher Power Limited (MPL) India 100 100 32 Samalkot Power Limited (SMPL) India 100 100 33 Reliance Solar Resources Power Private Limited (RSRPPL) India 100 100 34 Reliance Wind Power Private Limited (RWPPL) India 100 100 35 Reliance Power Netherlands BV (RPN) Netherlands 100 100 36 PT Heramba Coal Resources (PTH) Indonesia 100 100 37 PT Avaneesh Coal Resources (PTA) Indonesia 100 100 38 PT Brayan Bintang Tiga Energi (BBE) Indonesia 100 100 39 PT Sriwijiya Bintang Tiga Energi (SBE) Indonesia 100 100 40 PT Sumukha Coal Services (PTS) Indonesia 99.6 99.6 41 Reliance Bangladesh LNG & Power Limited (RBLPL) (Upto December 31, 2020) (Refer note 42) Bangladesh 51 51 42 Reliance Power Holding FZC, Dubai (RFZC) UAE 100 100 43 Reliance Bangladesh LNG Terminals Limited (RBLTL) (Upto January 25, 2021) (Refer note 42) Bangladesh - 100 44 Reliance Chittagong Power Company Limited (RCPCL) Bangladesh 100 100 () (Upto March 26, 2020) Merged with RCGL Associates 1 RPL Sun Power Private Limited (RSUNPPL) India 50 50 2 RPL Photon Private Limited (RPHOTONPL) India 50 50 3 RPLSun TechniquePrivateLimited (RSUNTPL) India 50* 50

132

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(c) Property, Plant and Equipment (including capital work-in-progress)

(i) Freehold land is carried at cost. All Items of property, plant and equipment (PPE) are stated at cost net of recoverable taxes, duties, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The cost of PPE comprises of its purchase price, capitalised borrowing costs and adjustment arising for exchange rate variations attributable to the assets (Note 2.1(n)(ii) ), including any cost directly attributable to bringing the assets to their working condition for their intended use.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the year in which they are incurred.

Spare parts are recognised when they meet the definition of PPE, otherwise, such items are classified as inventory.

Any gain or loss on disposal/ discarding of an item of PPE is recognised in Statement of Profit and Loss.

Depreciation methods, estimated useful life and residual value

Depreciation on PPE is provided to the extent of depreciable amount on straight line method (SLM) based on useful life of the following assets as prescribed in Part C of Schedule II to the Companies Act, 2013.

Particulars	Estimated useful life
Buildings	3 to 60 years
Plant and equipment	15 to 40 years
Furniture and fxtures	10 years
Offce equipment	5 years
Computers	3years

Different useful life has been determined based on internal assessment and independent technical evaluation for the following assets which are not covered above.

for the following assets which are not covered above.
Particulars	Estimated useful life
Motor vehicles	5 years
Coal Mine Heavy Earth Moving and Mining Equipment in SPL	30 years
Plant and equipment ofDSPPL and RSTEPL	25years

Depreciation on additions is calculated pro rata basis from the following month of addition.

Lease hold land is amortised over the lease period from the date of receipt of advance possession or execution of lease deed, whichever is earlier, except leasehold land for coal mining, which is amortised over the period of mining rights. In SPL, freehold land acquired for coal mining is amortised over the period of mining rights, considering the same cannot be put to any other purpose other than mining.

In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of PPE, depreciation is provided as aforesaid over the residual life of the respective assets.

(ii) Deposits, payments / liabilities made provisionally towards compensation, rehabilitation and other expenses relatable to land in possession are treated as cost of land.

(iii) Construction stores have been valued at weighted average cost.

(iv) PPE is derecognized when asset is retired or sold.

(d) Mining properties under Property, plant and equipment (in SPL)

(i) Overburden removal costs:

Removal of overburden and other waste material, referred to as “Stripping Activity”, is necessary to extract the coal reserves in case of open pit mining operations. The stripping ratio, as approved by the regulatory authority, for the life of the mine is obtained by dividing the estimated quantity of overburden by the estimated quantity of mineable coal reserve to be extracted over the life of the mine. This ratio is periodically reviewed and changes, if any, are accounted for prospectively.

133

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

The overburden removal costs are included in mining properties under the PPE and amortised based on stripping ratio on the quantity of coal excavated. Overburden removal cost includes cost of fuel, power related to the equipments, direct labour, other direct expenditure and appropriate portion of variable and fixed overhead expenditure.

(ii) Mine closure obligation

The liability to meet the obligation of mine closure has been measured at the present value of the management’s best estimate based on the mine closure plan in the proportion of total area exploited to the total area of the mine as a whole. These costs are updated annually during the life of the mine to reflect the developments in mining activities.

The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in provision due to the passage of time is recognized as interest expense.

The mine closure obligation cost has been included in mining properties under Property, Plant and Equipment and amortised over the life of the mine on a unit of production basis.

(iii) Mine development expenditure

Expenditure incurred on development of coal mine is grouped under capital work-in-progress till the coal mine is ready for its intended use. Once the mine is ready for its intended use, such mine development expenditure is capitalised and included in mining properties under the PPE.

Mine development expenditure is amortised over the life of the mine on a unit of production basis.

(e) Intangible assets

(i) Goodwill on acquisition of the subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
(ii) Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/ depletion and impairment loss, if any. The cost comprises of purchase price, borrowing costs and any cost directly attributable to bringing the asset to its working condition for the intended use.
(iii) Expenditure incurred on acquisition of intangible assets, which are not ready to use at the reporting date is disclosed under “Intangible assets under development”.
(iv) Mining right represents directly attributable cost (other than the land cost) incurred for obtaining the mining rights for a period of 30 years.
(v) Any gain or loss on disposal of an item of intangible asset is recognised in Statement of Profit and Loss.

Amortisation method and period

Amortisation is charged on a straight-line basis over the estimated useful life. The estimated useful life, residual value and amortisation methods are reviewed periodically at each annual reporting date, with the effect of any changes in the estimate being accounted for on a prospective basis.

Computer software is amortised over an estimated useful life of 3 years. Intangible assets include expenditure incurred for laying pipeline towards additional water supply. As the pipeline is estimated to be used over the life of the project, the cost incurred towards right is amortised over the term of the power purchase agreement.

In SPL, mining rights are amortised on a straight-line basis over the period of 30 years i.e., the period over which SPL has the right to carry out mining activities.

(f) Impairment of non-financial assets

Goodwill and intangible assets that have indefinite useful life are tested annually for impairment or more frequently, if events or changes in circumstances indicate that they may be impaired. Other assets which are subject to depreciation or amortisation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverable value is higher of net selling price and value in use. An impairment loss is recognised when carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. Impairment loss recognised in prior accounting period is increased / reversed (for the assets other than Goodwill) where there is change in the estimate of recoverable value. Such a reversal is made only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss has been recognized.

134

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(g) Inventories

Inventories of tools, stores, spare parts, consumable supplies and fuel are valued at lower of weighted average cost, which includes all non-refundable duties and charges incurred in bringing the goods to their present location and condition or net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale.

In case of coal stock, the measured stock is based on a verification process adopted and the variation between measured stock and book stock is charged to Statement of Profit and Loss.

(h) Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less provision for impairment.

(i) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instruments of another entity. Financial instrument also includes derivative contracts such as foreign currency foreign exchange forward contracts.

Investment and Other Financial Assets

(i) Classification

The Group classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss) and
those measured at amortised cost.

The classification depends on the business model of the Group for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in statement of profit and loss or OCI.

The Group reclassifies debt investments when and only when its business model for managing those assets changes.

(ii) Measurement

At initial recognition, the Group measures a financial asset at its fair value, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in Statement of Profit and Loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt instrument that is subsequently measured at amortised cost is recognised in the Statement of profit and Loss when the asset is derecognised or impaired. Interest income from these financial assets are included in other income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the asset’s cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in Statement of Profit and Loss. When the financial asset is derecognised, cumulative gain or loss previously recognised in OCI is reclassified from other equity to profit or loss and recognised in other gains / (losses). Interest income from these financial assets are included in other income using the effective interest rate method.

135

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Fair value through profit or loss (FVPL)

Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in the Statement of Profit and Loss in the period in which it arises. Interest income from these financial assets is included in other income. In addition, the Group may elect to designate a debt instrument, which otherwise meets amortized cost or FVOCI criteria, as FVPL. However, such election is allowed only if, doing so reduces or eliminates measurement or recognition inconsistency (referred to as ‘the accounting mismatch’).

(iii) Impairment of Financial Assets

The Group and its associates assess on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Group and its associates measure the expected credit loss associated with its trade receivables based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(iv) Derecognition of Financial Assets

A financial asset is derecognised only when the Group:
has transferred the rights to receive cash flows from the financial asset or
retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Group has transferred an asset, it evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Group has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the Group has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Group has not retained control of the financial asset. Where the Group retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

(v) Income recognition

Interest income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. While calculating the effective interest rate, the Group estimates the expected cash flows by considering all the contractual terms of the debt instrument (for example: prepayment, extension, call and similar options) but does not consider the expected credit losses.

Dividend

Dividends are recognised in statement of profit or loss only when the right to receive payment is established and it is probable that the economic benefits associated with the dividend will flow to the Group, and the amount of the dividend can be measured reliably.

(vi) Offsetting Financial instruments

(vii) Derivative Financial Instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Further gain / (losses) arising on settlement and fair value change therein are generally recognised in the Statement of Profit and Loss.

(j) Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax from the proceeds.

136

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(k) Financial liabilities

(i) Classification as debt or equity

Debt and equity instruments issued by the Group are classified either as financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

(ii) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, borrowings including bank overdrafts, and derivative financial instruments.

(iii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Borrowings

Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Profit and Loss / capital work-in-progress over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the Group does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the consolidated financial statements for issue, not to demand payment as a consequence of the breach.

Trade and other payables

These amounts represent obligations to pay for goods or services that have been acquired in the ordinary course of business from the suppliers. Those payable are classified as the current liabilities if payment is due within one year or less otherwise they are presented as non-current liabilities. Trade and other payables are subsequently measured at amortised cost using the effective interest rate method.

(iv) Derecognition

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

(l) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are the assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

137

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(m) Provisions, Contingent Liabilities and Contingent Assets

Provision

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. A present obligation that arises from past events but it is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

Contingent Assets

A contingent asset is disclosed, where an inflow of economic benefits is probable.

(n) Foreign currency transaction

(i) Functional and presentation currency

Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which the entity operates are presented in Indian Rupees which is also the Parent Company’s functional currency. The functional currency for all the entities in the Group is Indian Rupees except the following subsidiaries:-

(a)	Reliance Natural Resources (Singapore) Pte Limited	- USD
(b)	Reliance Power Netherland BV	- USD
(c)	PT Heramba Coal Resources	- USD
(d)	PT Avaneesh Coal Resources	- USD
(e)	PT Sumukha Coal Services	- USD
(f)	Reliance Power Holding FZC	- AED
(g)	Reliance Bangladesh LNG & Power Limited	- BDT
(h)	Reliance Bangladesh LNG Terminal Limited	- BDT
(i)	Reliance Chittagong Power Company Limited	- BDT
(j)	PT Brayan Bintang Tiga Energi	- Rupiah
(k)	PT Sriwijaya Bintang Tiga Energi	- Rupiah

In case of all foreign companies translation of financial statements to the presentation currency is done for assets and liabilities using the exchange rate in effect at the balance sheet date, and for revenue, expenses and cash flow items using the average exchange rate for the reported period. Gain/ (loss) resulting from such transactions are included in foreign currency translation reserve under other component of equity.

(ii) Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transactions.

All exchange differences arising on restatement/ settlement of short-term foreign currency monetary items at rates different from those at which they were initially recorded are recognised in the Statement of Profit and Loss.

In respect of foreign exchange differences arising on revaluation or settlement of long-term foreign currency monetary items, the Group has availed the option available in the Ind AS-101 to continue the policy adopted in the previous GAAP for accounting of exchange differences arising from translation of long-term foreign currency monetary items outstanding as on March 31, 2016, wherein:

Foreign exchange differences on account of depreciable asset is adjusted in the cost of depreciable asset and would be depreciated over the balance life of an asset.

138

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

  - In other cases, foreign exchange difference is accumulated in “foreign currency monetary item translation difference account” and amortised over the balance period of such long-term asset / liabilities.

(iii) Non-monetary items denominated in foreign currency are stated at the rates prevailing on the date of the transactions/ exchange rate at which transaction is actually effected.
(o) Revenue from Contracts with Customers and Other Income

The Group has adopted Ind AS 115 using cumulative effect method with effect of initially applying this standard recognized at the date of initial application (i.e. April 01, 2018).

The Group recognises revenue when the amount of revenue can be reliably measured at fair value of consideration received or receivable, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities, as described below. The Group bases its estimate on historical results, taking into consideration the type of transactions and specifics of each arrangement.

(i) In RPSCL, revenue from sale of energy is recognised on an accrual basis as per the tariff rates approved by Uttar Pradesh Electricity Regulatory Commission (UPERC) in accordance with the provisions of Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL). In case where final tariff rates are yet to be approved / agreed, provisional tariff is adopted based on provisional tariff order issued by UPERC. Further, the revenue is also recognised towards truing up of fixed charges as per the petitions filed based on the principles enunciated in the PPA and UPERC (Terms & Condition of Generation Tariff) Regulations, 2014.
Revenue from sale of energy referred to above includes fixed charges considered as minimum lease payments in accordance with Ind AS 116 “Leases” which is apportioned between finance income and reduction of finance lease receivables and finance Income is disclosed as ‘Income on assets given on finance lease” under “Other Operating Income” (Refer Note no. 2.1(t)). Revenue towards truing up of fixed charges is recognized as operating income in the Statement of Profit and Loss in the year of truing up. In case of difference between the revenue recognized based on provisional tariff order/ petitions filed and final tariff order, minimum lease payments is adjusted to the extent of difference for balance period of the lease to arrive at revised internal rate of return based on which minimum lease payments is apportioned between finance income and reduction of finance lease receivables.
(ii) In VIPL, revenue from sale of energy is recognised on an accrual basis as per the tariff rates approved by MERC in accordance with the provisions of PPA with Adani Electricity Mumbai Limited with effect from August 29, 2018. Further, revenue is also recognised towards truing up of fixed charges and fuel adjustment charges as per the terms of PPA read with Maharashtra Electricity Regulatory Commission (MERC) (Multi Year Tariff) Regulations.
(iii) In DSPPL, revenue from sale of energy is recognised on an accrual basis as per the tariff rates notified by Central Electricity Regulatory Commission (CERC) in accordance with the provisions of PPA with Adani Electricity Mumbai Limited and agreement cum-indemnity with Reliance Infrastructure Limited both with effect from August 29, 2018.
(iv) In RSTEPL, revenue from sale of energy is recognised on an accrual basis and in accordance with the provisions of PPA with NTPC Vidyut Vyapar Nigam Limited (NVVN) read with CERC regulations.
(v) In Parent Company, revenue from sale of energy of wind power project at Vashpet is recognised on an accrual basis and in accordance with the provisions of PPA with Adani Electricity Mumbai Limited with effect from August 29, 2018, read with the regulation of MERC. Income on Generation based incentive of wind power project at Vashpet is accounted on an accrual basis considering eligibility of the project for availing the incentive.
(vi) In SPL, revenue from sale of energy is recognized when it is measurable and there is reasonable certainty for collection, in accordance with the tariff provided in the PPA and considering the petitions filed with regulatory authorities for tariff as per the terms of PPA.
(vii) The surcharge on late payment/ overdue trade receivables for sale of energy is recognised when no significant uncertainty as to measurement and collectability exists.
(viii) Revenue from certified reduction units is recognised Emission as per the terms and conditions agreed with the trustee on future sale of certified emission reduction units.
(ix) For income recognition refer Note no. 2.1(i)(v).

139

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(p) Employee benefits

Short-term obligations

Other long-term employee benefit obligations

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Post employment obligations

The Group operates the following post-employment schemes:

defined benefit plans such as gratuity
defined contribution plans such as provident fund and superannuation fund

Gratuity obligations

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included as employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the consolidated statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

Provident fund

The Group pays provident fund contributions to publicly administered provident funds as per the local regulations. The Group has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Superannuation fund

Certain employees of the Group are participants in a defined contribution plan. The Group has no further obligations to the plan beyond its monthly contributions which are contributed to a trust fund, the corpus of which is invested with Reliance Nippon Life Insurance Company Limited and Life Insurance Corporation Limited.

(q) Employee stock option scheme (ESOS)

ESOS Scheme

The employees of the Group are entitled for grant of stock option (equity shares), based on the eligibility criteria set in ESOS plan of the Parent Company.

140

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

The fair value of options granted under the ESOS plan is recognised as an employee benefits expense with a corresponding increase in equity. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

ESOS Trust

The Parent Company’s ESOS Scheme is administered through Reliance Power ESOS Trust (“RPET”). The Group treats the RPET as its extension and shares held by RPET are treated as treasury shares and accordingly, RPET is consolidated in the Parent Company’s books.

(r) Non-current assets held for sale

(s) Income taxes

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

(t) Leases

The Group is the Lessor

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is (or contains) a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

These leases are analysed based on the situations and indicators set out in Ind AS-116 Leases in order to determine whether they constitute operating leases or finance leases.

A finance lease is defined as a lease which transfers substantially all the risks and rewards incidental to the ownership of the related asset to the lessee. All leases which do not comply with the definition of a finance lease are classified as operating leases.

141

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

The following main factors are considered by the Group to assess if a lease transfers substantially all the risks and rewards incidental to ownership: whether

(i) the lessor transfers ownership of the asset to the lessee by the end of the lease term;
(ii) the lessee has an option to purchase the asset and if so, the conditions applicable to exercising that option;
(iii) the lease term is for the major part of the economic life of the asset;
(iv) the asset is of a highly specialized nature; and
(v) the present value of minimum lease payments amounts to at least substantially all of the fair value of the leased asset.

In case of finance lease, finance lease receivable is recognized to reflect the financing deemed to be granted by the Group where it is considered as acting as lessor and its customers as lessees.

The Group has concluded the finance lease mainly with respect to PPA, particularly where the contract conveys to the purchaser of the energy an exclusive right to use generated energy.

In case of finance leases, where assets are leased out under a finance lease, the amount recognized under finance lease receivables is an amount equal to the net investment in the lease.

Minimum lease payment made under finance lease is apportioned between the finance income and the reduction of the outstanding receivables. The finance income is allocated to each period during the lease terms so as to produce a constant periodic rate of interest on the remaining balance of the lease receivable.

The Group is the lessee

The Group’s lease assets classes primarily consists of leases for buildings taken on lease for operating its branch offices. The Group assesses whether a contract contains a lease, at inception of a contract, At the date of commencement of lease at inception of a contract. At the date of commencement of lease , the Group recognise a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangement in which it is a lease except for leases with a term of twelve months or less (short- term leases) and low value leases. For these short term and low value leases, the Group recognizes the lease payments as an operating expense on a straight line basis over the term of lease.

Right-of-use assets are depreciated from the commencement date on straight-line basis over the lease term.

The lease liability is initially measured at amortised cost at the present value of the future lease payments.

Transition

Effective April 01, 2019, the Group adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 01, 2019 retrospective with cumulative effect method of initially applying the standard recognized at the date of initial application without any adjustment to opening balance of retained earnings. The Group did not have any material impact on the consolidated financial statements on application of the above standard.

(u) Cash and cash equivalents

For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents comprise deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less from date of acquisition that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

(v) Earnings per share

In determining Earnings per Share, the Company considers net profit after tax and includes post tax effect of any exceptional item and the effects under the scheme approved by the Hon’ble High Court. Basic earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the financial year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(w) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Group are segregated based on the available information.

142

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(x) Segment Reporting

The Operating segment is been identified and reported taking into account its internal financial reporting, performance evaluation and organizational structure of its operations, operating segment is reported in the manner evaluated by the Board considered as the Chief Operating Decision-Maker under Ind AS 108 “Operating Segments”.

(y) Accounting for oil and gas activity

The Group follows the “Successful Efforts Method” of accounting for its oil and natural gas exploration and production activities read with the Guidance Note published by The Institute of Chartered Accountants of India (the ICAI) in December, 2016.

The cost of survey and prospecting activities conducted in search of oil and gas are expensed out in the year in which the same are incurred. Accordingly, assets and liabilities are accounted on the basis of statement of accounts of Joint operations on line by line basis according to the participating interest of the Group.

(z) Government grant

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and are presented within other income.

In case of RPSCL, the benefit of interest free government loan in the form of deferred payments of value added tax and entry tax is treated as the Government grant. The deferred payment liabilities are recognised and measured in accordance with Ind AS 109, “Financial Instruments” where the benefit of the below market rate of interest shall be measured as the difference between the initial carrying value determined in accordance with Ind AS 109 and the proceeds received.

In case of SPL, exemption granted by GoI to the UMPPs under the Custom Act, 1962 is recognized at their fair value as Government grant. Government grants relating to the purchase of PPE are included in non current liabilities as deferred income and credited to the Statement of Profit and Loss in the proportion in which depreciation expense on those assets is recognised.

(aa) Dividends

(bb) Business combinations

Business combinations involving entities that are controlled by the Group are accounted for using the pooling of interests method as follows:

(i) The assets and liabilities of the combining entities are reflected at their carrying amounts.
(ii) No adjustments are made to reflect fair values, or recognise any new assets or liabilities.
(iii) Adjustments are only made to harmonise accounting policies.
(iv) The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. However, where the business combination had occurred after that date, the prior period information is restated only from that date.
(v) The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balance appearing in the financial statements of the transferee or is adjusted against General Reserve.
(vi) The identities of the reserves are preserved and the reserves of the transferor become the reserves of the transferee.
(vii) The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented separately from other capital reserves.

143

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

2.2 Critical accounting estimates and judgements

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

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

Estimation of uncertainties relating to the global health pandemic from COVID-19 [COVID-19]:

The Group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, unbilled revenues, goodwill and intangible assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group, as at the date of approval of these financial statements has used internal and external sources of information on the expected future performance of the Group. The Group has performed sensitivity analysis on the assumptions used and based on current estimates expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company financial statements may differ from that estimated as at the date of approval of these financial statements.

(a) Useful life of Power Plants given on finance lease classified as finance lease receivables

The Group has independently estimated the useful life and method of depreciation of power plant and coal mine assets considering the total portfolio of power generation assets based on the expected wear and tear, industry trends etc. In actual, the wear and tear can be different. When the useful lives differ from the original estimated useful lives, the Group will adjust the estimated useful life / residual value 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 PPE and finance lease receivables.

(b) Stripping ratio for coal mining

Significant estimate is involved in case of open pit mining operations for estimating quantity of overburden and mineable coal reserve which would be extracted over the life of the mine, based on which stripping ratio is determined. This ratio is periodically reviewed and changes, if any, are accounted for prospectively. SPL has considered the stripping ratio based on the coal mine plan approved by the regulator.

(c) Income taxes

There are transactions and calculations for which the ultimate tax determination is uncertain and would get finalised 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. (Refer note 16)

(d) Deferred tax

The Group has deferred tax assets and liabilities which are expected to be realised through the Statement of Profit and Loss over the extended periods of time in the future. In calculating the deferred tax items, the Group is required to make certain assumptions and estimates regarding the future tax consequences attributable to differences between the carrying amounts of assets and liabilities as recorded in the financial statements and their tax bases. Assumptions made include the expectation that future operating performance for subsidiaries will be consistent with historical levels of operating results, recoverability periods for tax loss carry forwards will not change, and that existing tax laws and rates will remain unchanged into foreseeable future. (Refer note 16)

According to management’s estimate, MAT credit balances will expire and may not be used to offset taxable income. The Group neither has any taxable temporary difference nor any tax planning opportunities available that could partly support the recognition of these MAT credit entitlement as deferred tax assets. On this basis, the Group has determined that it cannot recognise deferred tax assets on these balances.

(e) Application of lease accounting

Significant judgement is required to apply lease accounting rules of Ind AS 116 “Determining whether an Arrangement contains a Lease”. In assessing the applicability to arrangements entered into by the Group, the management has exercised judgment to evaluate customer’s right to use the underlying assets, substance of the transaction including

144

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

legally enforced arrangements and other significant terms and conditions of the arrangement to conclude whether the arrangements meet the criteria

Classification of lease

In case of RPSCL, significant judgment has been applied by the Group in determining whether substantially all the significant risks and rewards of ownership of the lease assets are transferred to the other entities.

(f) Impairment of assets

At the end of each reporting period, the Group reviews the carrying amounts of its Property, plant and equipment and the unguaranteed residual value of assets given on lease to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset / residual value is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount of PPE is the higher of its fair value less costs of disposal and value in use. Value in use is usually determined on the basis of discounted estimated future cash flows. This involves management estimates on anticipated efficiency of the plant, fuel availability at economical rates, economic and regulatory environment, discount rates and other factors. Any subsequent changes to cash flow due to changes in the above mentioned factors could impact the carrying value of assets.

(g) Fair value measurement and valuation process

The Group has measured certain assets and liabilities at fair value for financial reporting purposes. The management determines the appropriate valuation technique and inputs for fair value measurement. In estimating the fair value, the management engages third party qualified valuer to perform the valuations.

Estimates and judgements are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. (Refer note 18)

(h) Revenue from contracts with customers and other income

In case of RPSCL and VIPL, sale of energy is recognised on an accrual basis as per the tariff rates approved by respective Electricity Regulatory Authority in accordance with the provisions of the respective PPA. In case where tariff rates are yet to be approved, provisional rates are adopted based on the principles enunciated in the respective PPA and the applicable regulations. Deviation from such estimate on receipt of the final approval could result in significant adjustment to the revenue. Revenue is also recognised towards truing up of fixed charges as per the petitions filed based on the principles enunciated in the PPA and UPERC (Terms & Condition of Generation Tariff) Regulations, 2014 in case of RPSCL and truing up of fixed charges and fuel adjustment charges as per the applicable MERC (Multi year tariff) Regulations in case of VIPL.

(i) Mine closure obligation

Provision is made for costs associated with restoration and rehabilitation of mining sites as soon as the obligation to incur such costs arises. Such restoration and closure costs are typical of extractive industries and they are normally incurred at the end of the life of the mine. The costs are estimated on the basis of mine closure plans and the estimated discounted costs of dismantling and removing these facilities and the costs of restoration are capitalised when incurred reflecting the obligations at that time. The provision for decommissioning assets is based on the current estimate of the costs for removing and decommissioning production facilities, the forecast timing of settlement of decommissioning liabilities and the appropriate discount rate.

(j) Provision

Estimates of the amounts of provisions recognised are based on current legal and constructive requirements, technology and price levels. Because actual outflows can differ from estimates due to changes in laws, regulations, public expectations, technology, prices and conditions and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes.

(k) Estimation of employee benefit obligation
Please refer Note no. 2.1 (p).

145

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

`in lakhs	Particulars Freehold land Leasehold land Right to Use asset Railway siding Buildings Plant & equipment Mining properties Furniture & fxtures Motor Vehicles Offce equipment Computers Total	Gross carrying amount Balance as at April 01, 2019 3,93,667 1,78,164 - - 77,798 33,73,436 3,51,735 1,980 619 760 341 43,78,500 Additions during the year 9,340 14,240 2,784 15,290 26,426 2,34,812 81,526 77 95 251 62 3,84,903 Adjustments (Note 3) - - - - - 66,204 - - - - - 66,204 Deductions during the year - - - - - 362 - - 4 - - 366	Balance as at March 31, 2020 4,03,007 1,92,404 2,784 15,290 1,04,224 36,74,090 4,33,261 2,057 710 1,011 403 48,29,241	Additions / reinstatement during the year (Note 6) - - - - - 14,245 86,309 - - 9 27 1,00,590 Adjustments (Note 3) - - - - - (19,440) - - - - - (19,440) Deductions during the year - - - - - - 37 3 3 43	Balance as at March 31, 2021 4,03,007 1,92,404 2,784 15,290 1,04,224 36,68,895 5,19,570 2,057 673 1,017 427 49,10,348		Particulars Freehold land Leasehold land Right to Use Railway siding Buildings Plant & equipment Mining properties Furniture & fxtures Motor Vehicles Offce equipment Computers Total	Accumulated depreciation Balance as at April 01, 2019 675 18,187 - - 15,433 4,63,900 2,93,557 834 310 253 171 7,93,320 Charge for the year 176 4,634 75 - 3,567 95,485 78,999 195 66 101 29 1,83,329 Deductions during the year - - - - - 4 - - 3 - - 7	Balance Carrying amount as at March 31, 2020 851 22,821 75 - 19,000 5,59,381 3,72,556 1,029 373 354 201 9,76,641	Charge for the year 209 5,133 - 1,241 4,909 1,17,201 87,370 189 72 175 58 2,16,556 Deductions during the year - - (2,709) - - 2 - (9) 28 2 2 (2,683)	Balance as at March 31, 2021 1,060 27,954 2,784 1,241 23,909 6,76,580 4,59,926 1,227 416 526 257 11,95,880 Net Block	Balance as at March 31, 2020 4,02,156 1,69,583 2,709 15,290 85,224 31,14,709 60,705 1,028 337 657 202 38,52,600	Balance as at March 31, 2021 4,01,947 1,64,450 - 14,049 80,315 29,92,315 59,644 830 257 491 171 37,14,468

146

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

|1 Freehold land as at March 31, 2021 includes2,909 lakhs,2,209 lakhs (March 31,2020:2,909 lakhs,2,209 lakhs) capitalised in the books of CAPL and SMPL respectively, on the|basis of advance possession received from authorities. The registration of title deed is pending in favour of the respective Companies.|2 Leasehold land has been capitalised in the books of CPPL, on the basis of advance possession received from authorities. The land lease deed is pending for execution in favour of the CPPL.|3 Includes adjustments towards capitalisation of exchange difference.|4 Mining properties includes expenses incurred towards removal of over burden cost .|5 Out of above Property, Plant and Equipment25,98,459 lakhs (March 31, 202027,78,317 lakhs) are pledged as security for loan facilities availed by the Group (Refer note 12 & 3.13)|6 Includes reinstatement made in Vidarbha Industries Power Limited (a subsidiary) during previous year of9,082 lakhs in Freehold Land,13,862 lakhs in Leasehold Land,15,290 lakhs in Railway Sidings,25,076 lakhs in Buildings,1,94,041 lakhs in Plant and Equipment,58 lakhs in Furniture and Fixtures,83 lakhs in Motor Vehicles,86 lakhs in Offce|Equipments and38 lakhs in Computers. (Refer note 37)|**Depreciation/ amortisation** in lakhs|Particulars
March 31, 2021
March 31, 2020|Statement of Proft and loss
108,321
83,630|Depreciation included in discontinued operations
57
83|Change to Capital Work-in-Progress
-
59|Amortisation of mining properties
87,370
78,999|Depreciation included as part of coal excavation expenses
2,945
1,426|Depreciation included as part of overburden excavation expenses
18,041
19,318|Total
216,734
183,515|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|

147

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

|3.2
A.
B.
C. |Capital Work-in-Progress|||in lakhs|in lakhs|
|---|---|---|---|---|---|
||Particulars|As at
April 01, 2020
Incurred during
theyear||Capitalised /
Adjusted
As at
March 31, 2021||
||Assets under Construction
Expenditure pending allocation
(i) Expenses
Interest and Finance Charges1
Employee beneft expense
- Salaries and Other Costs
- Contribution to Provident and Other
Funds (Refer note 11)
- Gratuity (Refer note 11)
- Leave encashment
Depreciation / Amortization
Exchange loss (net) (Refer note 9)
Legal and Professional Charges (including
shared service charges)
Premium paid to regulatory authority/
State Government
Impairment
Other direct and incidental expenditure|2,08,676
17,615
751
19
5
23
158
1,25,420
5,956
6,816
(3,500)
498|6,394
-
-
-
-
-
-
-
-
-
-
-|1,69,305
2,120
126
-
-
-
-
(4)
5,081
-
-
77|45,765
15,495
625
19
5
23
158
1,25,424
875
6,816
(3,500)
421|
||Total|1,53,762|-|7,400|1,46,361|
||(ii) Incidental Income during construction
Net expenditure pending allocation (i) - (ii)
Construction stores
Total (A + B + C)
Previous year|2,367
1,51,395
1,408
3,61,479
4,27,638|-
-
-
6,394
65,970|-
7,401
-
1,76,706
1,32,129|2,367
1,43,994
1,408
1,91,168
3,61,479|

1THPPL and SHPPL has paid upfront fees of 1,880 lakhs and 880 (March 31, 2020: 1,880 lakhs and 880 lakhs) respectively shown as capital work-in-progress. 3.3 Intangible Assets

Intangible Assets
				`in lakhs
Particulars	Computer	Mining rights	Water Supply	Total
	Software		rights
Gross carrying amount
Balance as at April 01, 2019	545	3,129	1,265	4,939
Additions during the year	-	-	-	-
Deductions duringtheyear	-	-	-	-
Balance as at April 1, 2020	545	3,129	1,265	4,939
Additions during the year	-	-	-	-
Deductions duringtheyear	-	-	-	-
Balance as at March 31, 2021	545	3,129	1,265	4,939
Particulars	Computer	Mining right	Water Supply	Total
	Software		rights
Accumulated depreciation
Balance as at April 01, 2019	493	444	298	1,235

148

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

		`in lakhs
Particulars Computer Software Mining rights	Water Supply rights	Total
Charge for the year 4 111 Revaluation/Impairment during the year 3 - Deductions duringtheyear - -	73 164 -	188 167 -
Balance as at April 1,2020 497 555	371	1,590
Charge for the year - 111 Deductions duringtheyear (7) -	67 -	178 (7)
Balance as at March 31, 2021 504 665 Net Block Balance as at March 31,2020 48 2,574	438 894	1,775 3,349
Balance as at March 31, 2021 41 2,464	827	3,164
Note:Intangible assets are other than internally generated		`inlakhs
Particulars	As at March 31, 2021	As at March 31, 2020
Non- current Financial assets Investments In Associates (Unquoted) (valued at cost) RPL Sun Power Private Limited : 5,000 equity shares of`10 each (March 31,<br>2020: 5,000)<br>RPL Photon Private Limited : 5,000 equity shares of`10 each (March 31, 2020: 5000) RPL Sun Technique Private Limited : 5,000 equity shares of`10 each (March 31,<br>2020: 5,000)<br>Government Bond (Quoted) (Fair value through Proft & Loss account)<br>14,000 (March 31, 2020:14,000) 9.33% Government Bond of Rajasthan<br>Government (Face value of`100 each) 7,000 (March 31, 2020: 7,000) 8.22% Government Bond of Tamilnadu Government (Face value of`100 each) Investment in Equity (Unquoted) (valued at cost) Reliance Bangledesh LNG & Power Limited : 65,49,763 equity shares of BDT 10 each (March 31, 2020: Nil) Aggregate book value of unquoted investments Aggregate book value of quoted investments Market value of quoted investments @ Amount is below the rounding off norm adopted by the Group. Loans (Unsecured, considered good) Loans to others Security deposit Finance lease receivables Finance lease receivables (Refer note 10) Other fnancial assets Term deposits with more than 12 months maturity Non-current bank balances (including margin money deposits towards bank guarantee and others) (Refer note 12) Advance recoverable in cash Derivative assets (net) Others	@ @ @ 15 8 406 429 406 23 23 38,870 648 39,518 3,94,479 3,94,479 14 2,112 750 5,253 1 8,130	@ @ @ 15 8 - 23 @ 23 23 39,885 901 40,786 4,24,085 4,24,085 14 2,181 750 6,806 1 9,752

149

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.5 3.6 3.7 3.8(a) 3.8(b) 3.8(c) 3.8(d)			`inlakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	Non-current tax assets Advance income tax [net of provision for tax of`11,785 lakhs<br>(March 31, 2020 :`1,922 lakhs)] Other non-current assets (Unsecured, considered good) Capital advances (including related party) [Refer note 13 (C)] Advances recoverable in kind Balance with statutory authorities Inventories (valued at lower of weighted average cost or net realisable value) Fuel [including material in transit of`99 lakhs (March 31, 2020;`154 lakhs] Stores and spares (As certifed by the Managment) Current investments (Non-trade) Quoted Investments in Mutual Funds (Fair value through proft and loss) Indiabulls liquid fund - Direct Growth [Number of units 103,205 (March 31, 2020 : 103,205) face value of`1000 each]<br>Nippon India Corporate Bond Fund - Direct Growth<br>[Number of units 141,848 (March 31, 2020 : 141,848) face value of`10 each] JM High Liquidity Fund (Direct) - Growth Option [Number of units 1,762,291 (March 31, 2020 : 1,762,291) face value of`10 each] Aggregate value of quoted current investments Trade receivables Unsecured and considered good Trade receivables (Includes amount receivable from related parties) (Refer note 13 (C)) Cash and cash equivalents(Refer note 12) Balance with banks: in current account in deposit account with original maturity of less than three months Fixed deposits (including margin money) Bank balances other than cash and cash equivalents(Refer note 12) Deposits with original maturity of more than three months but less than twelve months Unclaimed dividend Fixed deposits (including margin money deposit)	5,183 5,183 1,45,920 2,041 45 1,48,006 19,399 68,013 87,412 2,070 67 991 3,128 3,128 2,40,988 2,40,988 12,957 1,462 1 14,420 9,406 299 7,396 17,101	5,979 5,979 1,47,309 2,041 35 1,49,385 36,018 65,400 101,418 2,001 62 958 3,021 3,021 2,36,104 2,36,104 12,271 223 - 12,494 8,930 299 6,720 15,949

150

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.8(e) 3.8(f) 3.8(g) 3.9 3.10			`inlakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	Loans Inter corporate deposit to related party (Refer note 13(C)) - Unsecured, considered good Security deposits Inter corporate deposit to others Loans / advances to employees Finance lease receivables Finance lease receivables (Refer note 10) Other fnancial assets Unbilled revenue - Unsecured, considered good Loans / advances to employees Advance recoverable in cash Derivative assets Receivable against Generation based incentive Income accrued on deposits / investments Others receivables Other current assets (Unsecured, considered good) Advance recoverable in kind Advance recoverable towards land Less: provision for doubtful Balance with statutory authorities (includes service tax credit and VAT recoverable) Prepaid expenses Others (Gratuity paid in advance) Assets classifed as held for sale Assets held for sale (Refer note 7b, 28 & 43) Others (Refer note 8) Less: Provision for doubtful receivables	4,037 1,436 10,007 9 15,489 29,766 29,766 16,783 45 5,269 1,725 93 2,333 30,319 56,567 19,278 1,900 (1,900) 211 2,349 17 21,856 90,212 8,394 (13,105) 85,500	4,036 2,187 7,678 9 13,910 29,876 29,876 5,107 31 29,633 142 167 1,152 30,655 66,887 3,188 1,900 (1,900) 158 2,384 - 5,730 4,763 8,394 (13,105) 52

151

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.11 Share capital

Authorised share capital 11,00,00,00,000 (March 31, 2020: 11,00,00,00,000) equity shares of`10 each<br>5,00,00,00,000 (March 31, 2020: 5,00,00,00,000) preference shares of`10 each Issued, subscribed and fully paid up capital 2,80,51,26,466 (March 31, 2020: 2,805,126,466) equity shares of`10 each<br>fully paid up<br> Reconciliation of number of equity shares<br>Balance at the beginning of the year - equity shares of`10 each. Issued during the year Balance at the end of the year - equity shares of`10 each.	11,00,000 5,00,000 16,00,000 2,80,513 2,80,51,26,466 - 2,80,51,26,466	11,00,000 5,00,000 16,00,000 2,80,513 2,80,51,26,466 - 2,80,51,26,466

3.11.1 Reconciliation of number of equity shares

3.11.2 Terms/ rights attached to equity shares

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

3.11.3 Details of shares held by shareholders holding more than 5% of the aggregate shares in the Parent Company

Particulars	As at March 31, 2021	As at March 31, 2021	As at March 31, 2020	As at March 31, 2020
	No. of Shares Percentage of share holding		No. of Shares	Percentage of share holding
Equity shares Reliance Infrastructure Limited Housing Development Finance Corporation Limited Total	16,65,60,739 14,29,87,901 30,95,48,640	5.94 5.10 11.04	35,82,98,193 19,54,87,901 55,37,86,094	12.78 6.97 19.75

3.11.4 Pursuant to the composite scheme of arrangement with Reliance Natural Resources Limited, the Parent Company has 5,55,014 Global Depository Receipts which are listed on Euro MTF Market of the Luxembourg Stock Exchange since May 17, 2011.

3.12 3.12.1 3.12.2 3.12.3 3.12.4 3.12.5 3.12.6 3.12.7 3.12.8 3.12.9 3.12.1 3.12.2			`in lakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	Other equity Balance at the end of the year Capital reserve (on consolidation) Securities premium General reserve General reserve (arisen pursuant to composite schemes of arrangement) Debenture redemption reserve Foreign currency translation reserve Foreign currency monetary item translation difference account Treasury Shares (ESOS Trust) Retained earnings Total Capital reserve (on consolidation) Securities premium Balance at the beginning of the year Less: Share of non-controlling interest Balance at the end of the year	8,337 8,00,663 97,807 454 4,683 21,283 (1,973) (845) 13,662 9,44,071 8,337 8,00,663 - 8,00,663	8,337 8,00,663 97,807 454 4,683 21,589 (5,316) (845) (20,998) 9,06,374 8,337 8,35,454 (34,791) 8,00,663

152

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.12.3 3.12.4 3.12.5 3.12.6 3.12.7 3.12.8 3.12.9 Nature			`in lakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	General reserve General reserve (arisen pursuant to composite schemes of arrangement) Debenture redemption reserve Foreign currency translation reserve Balance at the beginning of the year Add: Addition during the year Less: Share of non-controlling interest Balance at the end of the year Foreign currency monetary item translation difference account Balance at the beginning of the year Add: Addition during the year Less: Amortisation during the year Less: Share of non-controlling interest Balance at the end of the year Treasury Shares (ESOS Trust) Retained earnings Balance at the beginning of the year Proft/ (Loss) for the year Add: Remeasurements of post-employment beneft obligation (net) (Refer note 11) Add: Earlier period adjustments Less: Share of non-controlling interest Cesation of subsidiaries Balance at the end of the year and purpose of other reserves:	97,807 454 4,683 21,589 (334) 28 21,283 (5,316) 1,166 3,607 (1,430) (1,973) (845) (20,998) 45,394 465 15,843 (27,272) 230 13,662 9,44,071	97,807 454 4,683 18,704 2,913 (28) 21,589 (9,580) (6,875) 8,882 2,257 (5,316) (845) 502,220 (4,27,148) (242) (655) (95,173) - (20,998) 9,06,374

(a) Capital Reserves (On consolidation)

The Capital Reserve had arisen on account of acquisition of subsidiaries.

(b) Securities premium

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.

(c) General reserve

General reserve is a free reserve created by the Group by transfer from Retained earnings.

(d) General reserve (arisen pursuant to composite schemes of arrangement)

The General Reserve had arisen pursuant to the composite scheme of arrangement between the Parent 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. The General Reserve shall be 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 Parent Company.

(e) Debenture redemption reserve

Debenture redemption reserve is required to create out of profits of the Company for the purpose of redemption of debentures.

153

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(f) Foreign currency monetary item translation difference account

The Group has opted to continue the Previous GAAP policy for accounting of foreign exchange differences on long term monetary items. This reserve represents foreign exchange differences accumulated on long term foreign currency 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(n) (ii))

(g) Foreign currency translation reserve

Exchange differences arising on translation of the foreign operations as described in accounting policy and accumulated in a separate reserve within equity. The cumulative amount is not reclassified to profit or loss when the net investment is disposed-off.

3.13(a)			`in lakhs
	Particulars	As at March 31, 2021	As at March 31, 2020
	Borrowings At amortised cost Secured 5,450 (March 31, 2020: 5,450) Series I (2018) listed, rated, secured, redeemable non convertible debentures of`10,00,000 each<br>2,500 Series III (2017) listed, rated, secured, redeemable non convertible<br>debentures of`10,00,000 each (Refer note 13(C)) Rupee loans from banks Foreign currency loans from banks Rupee loans from fnancial institutions / other parties Foreign currency loans from fnancial institutions / other parties Unsecured Deferred payment liabilities: Deferred entry tax [Refer note 22(b)] Deferred value added tax [Refer note 22(c)] Inter-corporate deposits (Refer note 13(C))	39,775 12,665 7,07,211 1,28,622 3,29,504 4,38,854 16,514 637 9,367 16,83,149	52,905 - 6,15,561 4,17,900 3,51,782 5,13,687 18,479 558 15,184 19,86,056

During the year, the Group has delayed/ defaulted in repayment of borrowings. (Refer note 33)

3.13(a1) RPSCL

RPSCL has obtained Rupee and foreign currency loans from Banks. The Outstanding amount as at year end is 95,221 lakhs (March 31, 2020 1,61,645 lakhs). The balance disclosed is net of initial borrowing cost aggregating to 79 lakhs (March 31, 2020 246 lakhs)

Nature of security for Term Loans

(i) Rupee and foreign currency Term loans from banks of 95,221 lakhs (March 31, 2020: 1,56,645 lakhs) is secured / to be secured by first charge on all the Immovable and movable assets and intangible asset of RPSCL on pari passu basis with working capital.
(ii) Rupee Term loans from banks of NIL (March 31, 2020: 5,000 lakhs) is secured / to be secured by residual charge on all the movable assets and current assets of the RPSCL.
(iii) The parent Company has given financial commitments / guarantee to the lender of RPSCL.
(iv) A negative lien by Reliance Power Limited (Parent Company) on 51% of its equity shares in RPSCL.

Terms of Repayment and Interest

(i) Rupee Term Loans outstanding as at the year end 49,750 lakhs (March 31, 2020: 78,962 lakhs) has been obtained from Banks Phase I and Phase II of the project. The loans are repayable in 48 quarterly installments commenced from October 1, 2010 and January 1, 2012, respectively, and carry an average rate of interest 15.00 % per annum payable on a monthly basis.
(ii) Rupee Term Loans outstanding as at the year end 14,320 lakhs (March 31, 2020: 18,411 lakhs) has been obtained from Bank towards making investments in fellow subsidiaries. The loan is repayable in 46 quarterly installments commenced from June 30, 2013 and carry an interest rate of 13.86 % per annum payable on a monthly basis.

154

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(iii) Rupee Term Loans outstanding as at the year end NIL (March 31, 2020: 5,000 lakhs) has been obtained for onlending as subordinate debt / Inter Corporate Deposit / Loans and advances to its Parent Company. The loan is repayable in 12 equal quarterly installments starting from December 2017 and carries an interest rate of 11.30 % per annum payable on a monthly basis.
(iv) Foreign currency loan outstanding as at the year end 3,828 lakhs (March 31, 2020: 7,067 lakhs) has been obtained for Phase I of the project. The loan is repayable in 48 quarterly installments commenced from October 1, 2010 and carries an interest rate of USD LIBOR plus 460 basis points per annum, payable on a quarterly basis.
(v) Foreign currency loan outstanding as at the year end 13,859 lakhs (March 31, 2020: 19,553 lakhs) has been obtained for Phase II of the project. The loan is repayable in 48 quarterly installments commenced from January 1, 2012 and carries an interest rate of USD LIBOR plus margin ranging from 415 basis points to 475 basis points per annum, payable on a quarterly basis.
(vi) Foreign currency loan outstanding as at the year end 13,644 lakhs (March 31, 2020: 32,652 lakhs) has been obtained for Phase II of the project. The loan is repayable in 16 quarterly installments commenced from February 2018, and carries an interest rate of USD LIBOR plus 454 basis points per annum, payable on a quarterly basis.

3.13(a2) SPL

SPL has obtained Rupee and foreign currency loans from Banks and financial institutions. The Outstanding amount as at year end is 12,64,151 lakhs (March 31, 2020 13,81,117 lakhs). The balance disclosed is net of initial borrowing cost aggregating to 6,645 lakhs (March 31, 2020 : 8,882 lakhs).

Nature of security for term loans

(i) Term loans from all banks, financial Institution/other parties of 12,64,151 Lakhs (March 31, 2020: 1,381,117 lakhs ) is secured / to be secured by first charge on all the Immovable and movable assets and intangible asset of the Company and pledge of 100% of the total issued share capital of the Company held by the Holding Company on pari passu basis with working capital lenders, permitted bank guarantee providers and hedge counterparties.
(ii) Charge over 414 Hectare of land yet to be fully acquired and de-allocated Chhatrashal Coal mines which is subject to decision of Honourable High Court is pending to be executed.
(iii) The Holding Company has given financial commitments/guarantees to the lenders of the Company.

Terms of Repayment and Interest

(i) Rupee Term Loan outstanding as at the year end of 5,31,897 lakhs ( March 31, 2020 : 565,978 lakhs) has been obtained from banks for the project. Earlier 50% of the loan was repayable in 40 quarterly installments and remaining 50% in one single bullet payment at the end of ten years from March 31, 2015 was subsequently restructured under flexbile structuring scheme of Reserve Bank of India and the outstanding balance as on October 01, 2015 is repayable in 82 structured quarterly installments commencing from December 31, 2015 and carry an interest rate of 11.55% per annum payable on a monthly basis.
(ii) Rupee Term Loan outstanding as at the year end of 92,597 lakhs (March 31, 2020 : 98,199 lakhs) has been obtained from financial institutions for the project. Earlier 50% of the loan was repayable in 40 quarterly installments and remaining 50% in one single bullet payment at the end of ten years form March 31, 2015 was subsequently restructured under flexible structuring scheme of Reserve Bank of India and the outstanding balance as on October 01, 2015 is repayable in 82 structured quarterly installments commencing from December 31, 2015 and carry an interest rate of 11.55% per annum payable on a monthly basis.
(iii) Rupee Term Loan outstanding as at the year end of 241,525 lakhs (March 31, 2020 : 256,014 lakhs) has been obtained from financial institutions for the project. Earlier the loan was repayable in 60 quarterly installments starting form March 31, 2015 which has now been restructured under flexible structuring scheme of Reserve Bank of India and the outstanding balance as on October 01, 2015 is repayable in 82 structured quarterly installments commencing from October 15, 2015 and carry an interest rate of 12.40% to 12.54% per annum payable on monthly/quarterly basis.
(iv) 50 % of Foreign Currency Loan from financial Institutions/other parties outstanding as at the year end of 168,713 lakhs (March 31, 2020 : 190,068 lakhs) is repayable in 40 quarterly installments commenced from March 31, 2015. Remaining 50% is repayable in one single bullet at the end of ten years from March 31, 2015 and carry an interest rate of USD LIBOR plus 210 to 405 basis points per annum payable on a monthly basis.
(v) Foreign currency loan from financial institution / other parties outstanding as at the year end of 205,802 lakhs (March 31, 2020 : 239,038 lakhs) is repayable in 24 structured semi-annual installments commencing from March 20, 2015 and carry fixed interest rate of 3.66% per annum payable on a semi annual basis.
(vi) Foreign currency loan from financial institution / other parties outstanding as at the year end of 23,617 lakhs (March 31, 2020 : 31,820 lakhs) is repayable in 19 structured semi-annual installments commencing from March 20, 2015 and carry an interest rate of USD LIBOR plus 425 basis point per annum payable on a semi annual basis.

3.13(a3) VIPL

VIPL has obtained Rupee and foreign currency loans from Banks. The outstanding amount as at the year end is 2,21,023 lakhs (March 31, 2020: 2,21,531 lakhs). The balance disclosed is net of borrowing cost aggregating to 829 lakhs (March 31, 2020 : 1,013 lakhs).

155

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Nature of security for term loans

(i) Rupee loans from banks of 1,81,992 lakhs (March 31, 2020: 1,81,992 lakhs) is secured by first charge on all the Immovable and movable assets and intangible asset of VIPL on a pari passu basis with foreign currency loans and working capital and pledge of 51% of the equity share capital of VIPL.
(ii) Rupee loan from bank of 19,346 lakhs (March 31, 2020: 19,346 lakhs) is secured by pledge of 23% of the equity share capital of VIPL.
(iii) Foreign Currency Loans from banks of 19,685 lakhs (March 31, 2020 : 20,193 lakhs) is secured by first charge on all the Immovable and movable assets of VIPL on pari passu basis with Rupee loans and working capital and pledge of 51% of the equity share capital of VIPL.
(iv) The Holding Company has given financial commitments / guarantee to the lenders of the Company.

Terms of repayment and interest

(i) The rupee loans from banks of 1,81,992 lakhs (March 31, 2020: 1,81,992 lakhs) is repayable in 56 structured quarterly installments commencing from June 30, 2015 and carry an average interest rate of 13.58% per annum.
(ii) Foreign currency term loan is repayable in 28 equal quarterly installments commencing from June 30, 2013 and carries an interest rate of USD three month LIBOR plus 4.60% per annum, payable on a quarterly basis.
(iii) Rupee loans from banks of 19,346 lakhs (March 31, 2020 : 19,346 lakhs) is repayable in 48 structured quarterly installments commencing from June 30, 2018 and carry an interest rate of 11.25 % p.a.

3.13(a4) SMPL

SMPL has obtained foreign currency term loan from a Bank. The Outstanding balance as at the year end is 1,83,462 lakhs (March 31, 2020 2,61,561 lakhs). The balance disclosed is net of initial borrowing cost aggregating to 801 lakhs (March 31, 2020 1,968 lakhs).

Nature of security for term loan

(i) Term loan from a bank of 1,83,462 lakhs (March 31, 2020 : 2,61,561 lakhs) is secured by first charge on all the immovable and movable assets and intangible asset of SMPL and pledge of 100% of the total issued share capital of SMPL held by the Holding Company RCGL and Ultimate Holding Company Reliance Power Limited.
(ii) The Ultimate Holding Company has given financial commitments / guarantees to the lender of the Company.

Terms of repayment and interest

In accordance with terms of financing agreement, the term loan from US Exim was originally repayable in 23 semiannual installments commencing from October 25, 2014 at a fixed interest of 2.65% per annum. Based on subsequent amendment to financing agreement dated September 24, 2016, the outstanding balance as on June 30, 2017 is to be payable in 16 equal quarterly installments commencing from September 30, 2017. The rate of interest for the term loan is to continued to be 2.65 % per annum. The US Exim however, vide their letter dated April 3, 2018, has deferred the repayment of quarterly installments (inclusive of Interest) due on January 31, 2018 and April 02, 2018 of USD 27,369,500 and USD 27,179,667, respectively, to April 25, 2018. Further based on the Restructuring Agreement dated May 07, 2019 the outstanding balance as of that date is to be payable in 3 equal yearly installments commencing from June 30, 2020. However the rate of interest for the term loan is to continued to be 2.65 % per annum payable quarterly beginning from June 30 2019.

3.13(a5) DSPPL

DSPPL has obtained foreign currency term loan from Banks. The outstanding balance as at the year end is 47,713 lakhs (March 31, 2020 48,934 lakhs). The balance disclosed is net of initial borrowing cost aggregating to 765 lakhs (March 31, 2020 955 lakhs).

Nature of security for Term Loans:

(i) Term loans balance from financial Institution / other parties of 47,713 Lakhs (March 31, 2020 48,934 Lakhs) is secured / to be secured by first charge on all the Immovable and movable assets and intangible asset of DSPPL on pari passu basis and pledge of 99.99% of the total issued share capital of DSPPL held by the Holding Company.

Terms of Repayment and Interest:

(i) Foreign currency loan from financial Institution / other parties is repayable over a period of sixteen and half years in half-yearly installments commencing from September 25, 2012 and Interest is payable based on Commercial Interest Reference Rate which is 2.97% per annum. The outstanding balance as on year end is 28,999 lakhs (March 31, 2020 29,741 lakhs).
(ii) Foreign currency loan from financial Institution / other parties of is repayable over a period of sixteen and half years in half-yearly installments commencing from September 25, 2012 and interest is payable at the rate of 6 months USD LIBOR plus 2.5% per annum. The outstanding balance as on year end is 18,714 lakhs (March 31, 2020 19,193 lakhs).

3.13(a6) RSTEPL

RSTEPL has obtained Rupee and foreign currency loans from bank, financial institutions and other parties. The outstanding balance as at the year end is 1,43,448 lakhs (March 31, 2020 1,46,917lakhs). The balance disclosed is net of initial borrowing cost aggregating to 1,522 lakhs (March 31, 2020 1,770 lakhs).

156

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Nature of security:

(i) Term loans balance from all banks, financial Institution/ other parties of 1,43,448 lakhs (March 31, 2020 : 1,46,917 lakhs) is secured/ to be secured by first charge on all the Immovable and movable assets of RSTEPL on pari passu basis and pledge of 100% of the total issued share capital of RSTEPL held by the Holding Company.

Terms of repayment of loans and rate of interest:

(i) The Rupee loan has a tenure of upto 13.5 years from the date of first disbursement will be repaid in 54 unequal quarterly installments starting from January 07, 2014 and Interest rate is a floating rate linked to Axis Bank’s one year MCLR plus 3.7% p.a, payable on monthly basis. The outstanding balance as on year end is 7,923 lakhs (March 31, 2020 8,134 lakhs).
(ii) Foreign currency loan from financial institution / other parties of has a tenure of upto 17.36 years from the date of first disbursement. It will be repaid in 33 unequal half yearly installments starting from January 25, 2014 and carry fixed of 2.55% per annum payable half yearly. The outstanding balance as on year end is 26,534 lakhs (March 31, 2020 27,213 lakhs).
(iii) Foreign currency loan from financial institution / other parties has a tenure of upto 17.45 years from the date of first disbursement. It will be repaid in 33 unequal half yearly installments starting from January 7, 2014 and carry interest rate of LIBOR plus 365 basis points per annum payable half yearly. The outstanding balance as on year end is 51,041 lakhs (March 31, 2020 : 52,348 lakhs).
(iv) Foreign currency loan from financial institution / other parties has a tenure of upto 14.45 years from the date of first disbursement. It will be repaid in 27 unequal half yearly installments starting from January 7, 2014 and carry fixed interest rate of 5.95% per annum, payable half yearly. The outstanding balance as on year end is 48,600 lakhs (March 31, 2020 : 49,843 lakhs).
(v) Foreign currency loan from financial institution / other parties has a tenure of upto 17.53 years from the date of first disbursement. It will be repaid in 33 unequal half yearly installments starting from February 6, 2014 and carry fixed interest rate of 7.1% per annum, payable half yearly. The outstanding balance as on year end is 9,350 lakhs (March 31, 2020 : 9,590 lakhs).

3.13(a7) KPPL

KPPL has obtained Term Loan from financial institution of 26,080 lakhs (March 31, 2020 26,080 lakhs).

Nature of security:

(i) Term loan from financial institution of 26,080 lakhs (March 31,2020 26,080 lakhs) is secured by first charge on all the immovable and movable assets and current assets of KPPL all pari pasu basis.

Terms of repayment and interest:

(i) Rupee term loan from financial institution outstanding as at the year end 25,000 lakhs (March 31,2020 25,000 lakhs) is repayable in one single bullet payment at the end of tenur and carry an average rate of interest 13.5% p.a.
(ii) Rupee term loan from financial institution outstanding as at the year end 1,080 lakhs (March 31,2020 1,080 lakhs) is repayable in one single bullet payment at the end of tenure and carry an average rate of interest 10% p.a.
(iii) The Holding Company has given Financial commitments / guarantees to the lender of the Company.
(iv) The Company has not been able to comply with the financial convenants during the year in respect of non payment of principal of 26,080 lakhs and interest on above term loan amounting to 4,904 lakhs for the year 2020 -21.

3.13(a8) RNRL

RNRL has obtained Rupee Loan from Non banking financial institution of 29,998 lakhs (March 31, 2020 29,998 lakhs).

Nature of security:

(i) Rupee loan from financial Institution of 29,998 lakhs (March 31, 2020 : 29,998 lakhs) are secured by way of mortgage of building and pledge of shares of RNRL held by Holding Company.

Terms of repayment and interest:

(i) Rupee loan from Non banking financial institution of 19,999 lakhs (March 31, 2020 : 19,999 lakhs) is repayable in 12 equal quarterly installments starting from September 30, 2019 and carries an interest rate of 13.72% per annum payable on quarterly basis.
(ii) Rupee loan from Non banking financial institution of 9,999 lakhs (March 31, 2020 : 9,999 lakhs) is repayable in 20 equal quarterly installments starting from September 30, 2019 and carries an interest rate of 13.72% per annum payable on quarterly basis.
(iii) Parent Company has acted as a Co-borrower for facilities of 29,998 lakhs (March 31, 2020 : 29,998 lakhs).

3.13(a9) RCGL

RCGL has obtained inter corporate deposit amounting to 1,545 lakhs (March 31, 2020 : 15,184 lakhs).

157

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Terms of repayment and interest:

Inter corporate deposit amounting to 990 lakhs (March 31, 2020 14,630 lakhs) carries an interest rate of 12.5% and Inter corporate deposit amounting to 555 lakhs (March 31, 2020 555 lakhs) is interest free. Both inter corporate deposit are repayable over a period of 3 years.

3.13(a10)Parent Company

The Parent Company has obtained Rupee and foreign currency term loan. The outstanding amount as at the year end is 1,30,504 lakhs (March 31, 2020: 1,34,104 lakhs). The balance disclosed is net of borrowing cost aggregating to 1,342 lakhs (March 31, 2020: 2,019 lakhs).

Nature of security for term loans

(i) Series I (2018) listed, rated, secured, redeemable, non convertible debentures of 54,500 lakhs (March 31, 2020: 54,500 lakhs) are secured by first pari-passu charge with Rupee term loan at Sr no. (iii), (viii) and (ix) 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, 2020: 32,400 lakhs) are secured by first charge over long term loans and advances of the Company on pari passu basis with NCD at Sr. no. (i) and Rupee term loan at Sr. no.(viii) and (ix) 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.
(iv) Rupee term loans from banks of 2,004 lakhs (March 31, 2020 : 2,165 lakhs) and foreign currency loan of 6,358 lakhs (March 31, 2020 : 7,808 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 with Rupee term loan Sr. no. (vii).
(v) Rupee term loans from banks of 6,958 lakhs (March 31, 2020 7,500 lakhs) are secured by first pari passu charge over current assets of the Company including receivable excluding the assets pertaining to 45 MW wind power project at Vashpet.
(vi) Rupee term loans from banks of NIL (March 31, 2020 2,708 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. It was also secured by pledge of 10,19,00,000 shares of the Company held by R Infra, which has been invoked by the bank on November 26, 2019.
(vii) Rupee term loans from banks of 11,467 lakhs (March 31, 2020 : 11,656 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 with Rupee term loan and foreign currency loan at Sr. no. (iv).
(viii) Rupee term loans from banks of 6,300 lakhs (March 31, 2020 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) and (ix) 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.
(ix) Rupee term loans from banks of 16,875 lakhs (March 31, 2020 16,875 lakhs) are secured by the first pari passu charge with ncd at sr, (i) and Rupee term loan at Sr. no. (iii) and (viii) 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.

Terms of repayment of loans and rate of 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 year, terms of the 2500 Series III (2017) listed, rated, secured, redeemable non convertible debentures have been changed 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 38)
(iii) Rupee term loans from banks of 32,400 lakhs (March 31, 2020 32,400 lakhs) is repayable in 10 structured quarterly installment 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 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 2,004 lakhs (March 31, 2020 : 2,165 lakhs).
(v) Foreign currency loans is repayable in 42 structured quarterly installments 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 6,358 lakhs (March 31, 2020 : 7,808 lakhs).
(vi) Rupee term loans from bank is repayable in 16 quarterly installments 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 6,958 lakhs (March 31, 2020 7,500 lakhs).

158

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(vii) Rupee term loans from bank was repayable in 40 monthly installments commenced from March 2017 and carry an interest rate of 11.05% per annum payable on a monthly basis. The outstanding balance as at year end is Nil (March 31, 2020 2,708 lakhs).
(viii) Rupee term loans from bank is repayable in 53 structured quarterly installments commenced from September 2016 and carry an interest rate of 13.05% per annum payable on a monthly basis. The outstanding balance as at year end is 11,467 lakhs (March 31, 2020 : 11,656 lakhs).
(ix) Rupee term loans from bank is repayable in 12 quarterly installments 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, 2020 6,300 lakhs).
(x) Rupee term loans from bank is repayable in 11 structured quarterly installments 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, 2020 16,875 lakhs).
(xi) During the year, terms of the ICD payable to other corporate entity has been changed and accordingly the ICD is repayable in 5 structured annual 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 38)
3.13(a11) Current maturity of long term borrowings have been classified as other current financial liabilities

|3.13(b)
3.14
3.15
3.16
3.17(a)||in lakhs|in lakhs|
|---|---|---|---|
||Particulars|As at
March 31, 2021
As at
March 31, 2020||
||Other fnancial liabilities
Retention money payable
Derivative liability
Lease liability
Provisions - non current
Provision for gratuity (Refer note 11)
Provision for leave encashment (Refer note 11)
Provision for mine closure obligation (Refer note 23)
Deferred tax liabilities
Net deferred tax liability due to temporary difference (Refer note 16)
Other non-current liabilities
Advance from customers
Government grants (Refer note 22)
Borrowings
Secured
Rupee loans from banks
Rupee loans from Financial Institutions
Working capital loan
Cash credit facility from banks
2,500 Series III (2017) Listed, rated, secured, redeemable non convertible
debentures of`10,00,000 each
Unsecured
Inter-corporate deposits1(Refer note 13(C))
1Interest rate on above ICDs varies from 10.5% p.a. To 14.86% p.a.|3,765
14,252
-
18,017
1,347
1,554
1,996
4,897
2,20,545
2,20,545
743
1,76,627
1,77,370
17,213
31,097
76,027
1,01,403
-
1,53,592
3,79,332|3,765
8,270
2,593
14,628
1,485
1,873
1,758
5,116
2,27,685
2,27,685
743
1,82,535
1,83,278
17,213
31,097
1,29,290
89,483
25,000
1,39,039
4,31,122|

159

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.17(a1) RPSCL

Nature of security for Short term borrowings

Working Capital facilities from banks outstanding balance as at the year end of 71,807 lakhs (March 31,2020 : 1,24,860 lakhs) are secured pari passu with term loan lenders by first mortgage/hypothecation/charge on all the Immovable and movable assets and intangible assets of RPSCL and a negative lien by Holding Company on 51% of its equity in RPSCL.

Terms of Repayment and Interest Working Capital facilities have a tenure of twelve months from the date of sanction and are repayable on demand and carry an average rate of interest 15.91 % per annum.

3.17(a2) VIPL

Nature of security for Short term borrowings

Cash credit facilities outstanding balance as at the year end of 51,687 lakhs (March 31, 2020 : 51,687 lakhs) which are repayable on demand is secured pari passu along with term loan lenders by first charge on all the immovable and movable assets and intangible asset VIPL on a pari passu basis and pledge of 51% of the equity share capital of VIPL. 3.17(a3) SPL Nature of security for Short term borrowings

Cash credit facility outstanding balance as at the year end of 49,717 lakhs (March 31,2020 : 37,796 lakhs) which are repayable on demand is secured / to be secured by first charge on all current and fixed assets of SPL and pledge of 100% of the total issued share capital of SPL held by the Holding Company on pari passu basis with term loan lenders, permitted bank guarantee providers and hedge counterparties. Terms of Repayment and Interest

Cash Credit facility carry an average interest rate of MCLR +3% per annum.

3.17(a4) RCGL

RCGL has obtained Rupee Loan from Non banking financial institution of 31,097 lakhs (March 31, 2020 31,097 lakhs). Nature of security: (i) Rupee loan from financial Institution of 27,049 lakhs (March 31, 2020 : 27,049 lakhs) are secured by way of subservient charge on fixed and current assets of RCGL. (ii) Rupee loan from financial Institution of 4,048 lakhs (March 31, 2020 : 4,048 lakhs) are secured by way of charge on current assets of RCGL. (iii) The Holding Company has given Financial commitments / guarantees to the lender of the Company. Terms of repayment and interest: Secured (i) Rupee loan from Non banking financial institution of 21,254 lakhs (March 31, 2020 : 21,254 lakhs) is repayable in one installment on July 1, 2019 and carries an interest rate of 13.50% per annum payable on maturity. (ii) Rupee loan from Non banking financial institution of 5,795 lakhs (March 31, 2020 : 5,795 lakhs) is repayable in one installment on January 15, 2020 and carries an interest rate of 13.50% per annum payable on maturity. (iii) Rupee loan from Non banking financial institution of 4,048 lakhs (March 31, 2020 : 4,048 lakhs) is repayable in one installment on September 12, 2019 and carries an interest rate of 13.50% per annum payable on maturity. 3.17(a5) Parent Company Nature of security for Short term borrowings (i) Rupee loan from bank of 17,213 lakhs (March 31, 2020 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.

(i)	Nature of security for Short term borrowings Rupee loan from bank of`17,213 lakhs (March 31, 2020`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.
(ii)	Working capital loan from bank is secured by frst 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 12.50% per annum payable on a monthly
	basis.
(iii)	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) and were redeemable within a period of 396
	days from April 25, 2019 and carried an interest rate of 13.71% per annum payable on half yearly basis. During the
	year, terms of the NCDs have been changed and accordingly the NCDs have been regrouped to non-current borrowings.
	(Refer note 3.13(a10)(ii))

	(Refer note 3.13(a10)(ii))
			`in lakhs
	Particulars	As at	As at
		March 31, 2021	March 31, 2020
3.17(b)	Trade payables
	Total Outstanding dues of micro enterprises and small enterprises (Refer note 30)	4,185	2,565
	Total Outstanding dues of creditors other than micro enterprises and small	37,337	40,872
	enterprises
		41,522	43,437

160

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

		`in lakhs
Particulars	As at March 31, 2021	As at March 31, 2020
Other fnancial liabilities Current maturities of long-term borrowings [Refer note 3.13(a11)] Interest accrued but not due on borrowings Interest accrued and due on borrowings Unclaimed dividend Security deposits received Creditors for capital expenditure Retention money payable Liability towards Regulatory Matters Creditors for supplies and services Lease liability Other payables Other current liabilities Advance from customers Government Grants (Refer note 22) Other payables (including unscheduled interchange charges, provident fund, tax deducted at sources and other miscellaneous payables) Provisions - current Provision for gratuity (Refer note 11) Provision for leave encashment (Refer note 11) Current tax liabilities Provision for income tax [net of advance tax of`135 lakhs (March 31, 2020:<br>`5,394 lakhs)]	5,00,981 57,642 1,12,293 299 108 2,62,305 1,882 3,252 751 - 1,34,010 10,73,523 24,671 5,906 63,907 94,484 50 488 538 3,421 3,421	4,58,962 57,466 70,172 299 181 2,71,133 1,903 3,252 5,873 174 1,57,053 10,26,468 176 5,906 70,572 76,654 31 554 585 17,095 17,095 `in lakhs
Particulars	Year ended March 31, 2021	Year ended March31,2020
Revenue from operations Sale of energy (including sale to related party) (Refer note 13(C)) Other operating income: Income on assets given on fnance lease Carbon credit emission Generation based incentive	7,37,379 55,738 - 284 7,93,401	6,96,060 59,563 214 390 7,56,227

161

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.22 (a) (b) 3.23 (a) (b) 3.24			`in lakhs
	Particulars	Year ended March 31, 2021	Year ended March31,2020
	Other income Interest income: Bank deposits Inter-corporate deposits [Refer note 13(C)] Others Net Gain on sale of fnancial assets mandatorily measured at FVPL Investment in mutual funds Gain on sale of property, plant and equipments (net) Gain on foreign exchange fuctuations (net) Provision written back Government Grant (Refer note 22) Consultancy Income Other non-operating income Income from Discontinued Operations(Refer note 43) Gain on foreign exchange fuctuations (net) Other non-operating income Cost of fuel consumed (including cost of coal excavation) Purchased coal consumed Opening balance of fuel Add: Purchases during the year Less : Closing balance of fuel Coal excavation cost Opening balance of fuel Amortisation of mining properties Taxes and duties Fuel consumed Stores and spares Depreciation Other expenses Less : Closing balance of fuel Total (a)+(b) Employee benefts expense Salaries, bonus and other allowances Contribution to provident fund and other funds (Refer note 11) Gratuity and Leave encashment (Refer note 11) Staff welfare expenses	986 3,062 29,553 108 10 718 3,589 5,307 - 2,126 45,459 2,751 1 2,752 28,616 140,770 (9,282) 160,104 7,549 87,370 50,868 7,062 3,502 2,945 3,463 (11,194) 1,51,565 3,11,669 13,911 655 591 449 15,606	4,680 4,068 481 495 - 7,697 25,738 5,307 14,092 1,456 64,014 - - - 24,322 159,997 (28,616) 155,703 5,348 78,999 42,935 5,652 4,084 1,426 3,062 (7,549) 1,33,957 2,89,660 18,781 713 801 638 20,933

162

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

3.25(a) (b) 3.26(a) (b)			`in lakhs
	Particulars	Year ended March 31, 2021	Year ended March31,2020
	Finance cost Interest on: Rupee term loans Foreign currency loans Inter corporate deposits [Refer note 13(C)] Non convertible debentures Working capital loans Unwinding of discount on mine closure provision Other fnance charges (including fair value change and loss arising on settlement of derivative contracts) Other fnance charges Finance cost of Discontinued Operations Other fnance charges Generation, administration and other expenses Stores and spares consumed Rent expenses (including rent to related party) [Refer note 13(C)] Repairs and maintenance - Plant and equipment - Buildings - Others Fuel handling and service charges Stamp duty and fling fees Printing and stationery Legal and professional charges Rates and taxes Insurance (including Insurance charges to related party) (Refer note 13(C)) Loss on foreign exchange fuctuations Loss on investment Provision for doubtful debts / amount written-off Less: Reversal of provision for doubtful debts/assets Electricity duty expense Expenditure towards Corporate Social Responsibility (Refer note 29) Miscellaneous expenses Expenses of Discontinued Operations Rent expenses Repairs and maintenance - building Printing and stationery Legal and professional charges Rates and taxes Loss on sale of property, plant and equipment Miscellaneous expenses	1,39,066 37,223 17,723 11,773 25,594 223 13,365 8,892 2,53,859 @ @ 11,619 1,800 13,399 351 565 913 1 7 13,011 679 7,058 10,364 - 1,625 - 34,195 285 12,758 1,08,630 2 - 1 5 @ - @ 8	1,76,232 47,335 20,691 13,288 33,229 181 9,568 4,872 3,05,397 1,475 1,475 10,395 2,361 13,373 358 610 974 5 4 12,335 960 7,235 9,881 398 41,717 (5,973) 33,856 386 14,481 1,43,356 11 3 1 1 1 53 @ 69

@ Amount is below the rounding off norm adopted by the Group.

163

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

4. Contingent liabilities and commitments

(a) Bank Guarantees issued for the subsidiary companies aggregating to 18,301 lakhs (March 31, 2020: 18,301 lakhs).
(b) The Parent Company has not provided for direct tax demand of 14,127 lakhs (March 31, 2020 10,970 lakhs) and indirect tax demand of 35 lakhs (March 31, 2020 114 lakhs), which are pending before various authorities.
(c) In case of RPSCL, disputed income tax dues for Assessment Year 2013-14 is 66 lakhs (March 31, 2020: 66 lakhs), Assessment Year 2014-15 is Nil Lakhs (March 31, 2020: 647 lakhs), Assessment Year 2016-17 is 709 lakhs (March 31, 2020: 709 lakhs) and for Assessment year 2017-18 is 140 lakhs (March 31, 2020: ` 140 lakhs).
(d) In case of VIPL, income tax claim aggregating to 92 lakhs March 31, 2020: 93 lakhs)
(e) In case of CAPL, the Government of Andhra Pradesh (GoAP) (Revenue Department) has levied a penalty of 137 lakhs (March 31, 2020: 137 lakhs) at the rate of 50% on account of non-payment of conversion fee of 274 lakhs (March 31, 2020: 274 lakhs) towards conversion of agriculture land to non agricultural land. CAPL has filed an appeal with the GoAP for waiver of the said penalty.
(f) In case of, RSTEPL
i. RSTEPL has declared its Concentrated-Solar Power (CSP) plant as commercially operational (COD) as per terms of Power Purchase Agreement (PPA) on November 17, 2014 against the scheduled commissioning date (SCD) of March 07, 2014 as per terms of PPA. The Company has filed a petition before Central Electricity Regulatory Commission (CERC) for extension of SCD. Pleadings in the said petition have been completed and the matter is to be listed for hearing.
ii. As per the terms of the PPA entered with NTPC Vidyut Vyapar Nigam Limited (NVVN), RSTEPL was required to generate minimum committed energy of 219 Million Units in the contract year subsequent to declaration of commercial operation date (COD), else shortfall penalty is payable as per the terms of the PPA. The Company received minimum energy shortfall claims aggregating to 26,240 lakhs from NVVN for FY 2014-15, FY 2015-16, FY2016-17, FY 2017-18, FY 2018-19 and FY2019-20 and company has filled Petition before Central Electricity Regulatory Commission (CERC) challenging the claim. NVVN has adjusted 3,252 lakhs from the monthly invoices of the Company till the date company obtained the stay from Delhi High Court (DHC). Subsequent to grant of stay by DHC, NVVN has been paying against the monthly invoices. Considering the assessment of the above facts, and as legally advised, the Company has not considered the requirement for any provision.
(g) In case of SMPL,
i. CERC vide its order dated April 06, 2015 has directed SMPL and Spectrum Power Generation Limited (SPGL) to reimburse 80% of the acquisition price incurred by Power Grid Corporation India Limited (PGCIL) for acquiring Vemagiri Transmission System Limited (VTSL) in proportion to the long term accesses (LTA) granted to SMPL and SPGL. It was further directed that the balance 20% and the expenditure incurred by VTSL from the date of acquisition till the liquidation of the said company shall be borne by PGCIL.The financial liability for SMPL in this matter amounts to a sum total of ` 1,170 lakhs subject to the outcome of the APTEL. Both SMPL and SPGL have preferred appeals before the Appellate Tribunal for Electricity (APTEL) against the aforesaid order of the CERC dated April 06, 2015, on the ground that PGCIL has not complied with its obligation of setting up transmission system and other valid reasons. The matter is pending before the Ld. Appellate Tribunal of Electricity (APTEL).
(ii) Disputed income tax dues for the assessment year 2014-15 and 2015-16 is 41 lakhs (March 31, 2020: 41 lakhs) and 411 lakhs (March 31, 2020: 411 lakhs) respectively.
(iii) SMPL liability towards custom duty on equipment imported for Power Plant (Refer note 28).
(h) In case of SPL:
i. SPL has received net claims amounting to 974 lakhs (March 31, 2020: 974 lakhs) from contractors towards deductions made by SPL due to non-performance of certain obligations under the terms of arrangement for the construction of certain works. The dispute is under arbitration.
ii. SPL has received a claim of 2,568 lakhs (March 31, 2020: 2,568 lakhs) from some of the procurers alleging delay in achievement of commercial operation of first and second unit, which has been disputed by SPL and same is pending before the Hon’ble High Courts.
iii. SPL has disputed the methodology for quantification of tax liability on annual value of mineral bearing land, adopted by the District Authorities under Madhya Pradesh Gramin Avsanrachna Tatha Sadak Vikas Adhiniyam (MPGATSVA/Act). The liability as per methodology adopted by the District Authorities stands as at 57,828 lakhs (March 31, 2020: 47,807 lakhs). SPL had filed a writ petition before Jabalpur High Court for revised quantification, however the same was rejected by the Court by its order dated January 17, 2018. The Company had filed a Review Petition before Jabalpur High Court against its order dated January 17, 2018 and the same was also rejected by Honorable High Court. The Company has filed a Civil Appeal before Honorable Supreme

164

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

  - court where Honorable Supreme court has passed an interim order to pay the tax under MPGATSWA as per the methodology adopted by the Company and the Civil Appeal has been tagged with other Appeals filed in the Honorable Supreme Court where the constitutional validity of the Act is under consideration. In accordance with said interim order, Company is depositing tax under MPGATSVA as per the quantification done by the Company.

iv. SPL has not provided for income tax demand of 401 lakhs (March 31, 2020: 261 lakhs) which is pending before various authorities.
v. Differences in balances as per bank loan confirmation and books of accounts of Nil (March 31, 2020: ` 395 lakhs).
(i) The Parent 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.
(j) Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for is 70,369 lakhs (March 31, 2020: 73,047 lakhs).

5. Applicability of NBFC Regulations

The Parent Company, based on the objects given in the Memorandum of Association, its role in construction and operation of power plants through its subsidiaries and other considerations, has been legally advised that the Parent Company 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.

6. Project status of 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 longterm 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 Krishnapatnam 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.

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, RPL has filed a Writ Petition in Hon’ble Delhi High Court for direction to PFC/ Procurers to buyback the SPV. Next date of hearing is awaited.

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

165

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

7. Project status of Samalkot Power Limited (SMPL)

(a) Capital work in progress [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 supply of power 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.

(b) Non Current assets held for sale (754 MW Plant)

The Parent Company, had entered into a Memorandum of Understanding (MOU) with the Government of Bangladesh (GoB) 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), subsidiary of the Parent Company has taken steps to conclude a longterm 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 11, 2020 to sell equipment of one module (out of three modules, which were under implementation by SMPL). All the project lenders 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 notice to proceed (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. The other equipments are currently getting exported and exports are expected to be completed by September, 2021. The proceeds from the sale of first module to Samsung are being used to repay a major portion of the outstanding US Exim loan. Having regard to the above plans, and the continued financial support from the Parent Company, the 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.

8. Status of Dadri Project

The Parent 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 Parent 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 Parent Company and the 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 Parent Company to recover the amount paid in any other proceeding. Considering the above facts, the Parent Company has classified assets related to the Dadri project under the head ‘Non-current assets classified as held for sale. During the year ended March 31, 2020 the Parent company out of prudence has fully provided for receivable for ` 15,005 lakhs against the project. The Parent Company is continuing to pursue the recovery of amount spent on land acquisition with GoUP.

9. Exchange differences on foreign currency monetary items

As explained in note 2.1(n) exchange loss / (gain) of (19,435) lakhs and (12,123) lakhs [March 31, 2020: 56,672 lakhs and 39,156 lakhs] on long term borrowings has been added to / reduced from the cost of PPE and Capital-work-in-progress respectively.

In case of RPSCL, the Group has accumulated the exchange differences in ‘Foreign Currency Monetary Item Translation Difference Account’ (FCMITDA) of (2,758) lakhs (March 31, 2020: 7,531 lakhs) and shall amortize the same over the term of the foreign currency monetary item.

10. Leases

(a) As a lessor -Finance Lease Receivables (Refer note 2.1 (t))

(a) As a lessor -Finance Lease Receivables(Refer note 2.1 (t	))
		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Current fnance lease receivables	29,766	29,876
Non-current fnance lease receivables	3,94,479	4,24,085
Total	4,24,245	4,53,961

166

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Minimum leasepayments		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Not later than one year	81,694	85,614
Between one year and fve year	2,47,421	2,81,563
Later thanfveyear	4,50,007	4,97,398
Total	7,79,122	8,64,575
Less: Unearned fnance income	6,09,700	6,65,437
Add: Unguaranteed residual value	2,54,823	2,54,823
Total	4,24,245	4,53,961
Present value of minimum lease payments		`inlakhs
Particulars	March 31, 2021	March31,2020
Not later than one year	29,766	29,876
Between one year and fve year	69,775	93,452
Laterthanfve year	69,881	75,810
Total	1,69,422	1,99,138

In RPSCL, the finance lease receivables, accounted for as finance lease in accordance with Ind AS 116 “Leases” relate to the 25 year power purchase agreement under which RPSCL sells all of its electricity output of its coal based generation capacity at Rosa village in Shahjahanpur, Uttar Pradesh in two Phases of 600 MW each (Both the stages comprise two units of 300 MW each and employ subcritical Pulverized Coal Combustion (PCC) technology) to its off taker, Uttar Pradesh Power Corporation Limited (UPPCL).

The effective interest rate implicit in the finance lease was approximately 13% for both 2021 and 2020.

(b) As a Lessee (Refer note 2.1(t))

A. Right to use Assets

				`in lakhs
Particulars Guest House Offce Premises			Land	Total
Cost Opening balance as on April 01, 2020 Add : Addition Less : Adjustment Less: ceased to be subsidary Closing balance as on March 31, 2021 Accumulated Depreciation Opening balance as on April 01, 2020 Depreciation for the year Less: ceased to be subsidary Closing balance as on March 31, 2021 Carrying amounts At March 31, 2020 At March 31, 2021	- 37 - 37 - - 15 15 - - -	209 - - 209 - 17 32 49 - 192 -	2,576 - 41 2,535 - 58 74 132 - 2,518 -	2,785 37 41 2,781
				-
				75 121 196
				-
				2,710
				-

B. Lease Liability

C.

At March 31, 2021 Lease Liability	- -	- -
Particulars	As at March 31, 2021	As atMarch31,2020
Current	56	174
Non-current	2,777	2,593
Less:Ceased to be subsidiary	2,833	-
	-	2,768
Amount recognized in proft and loss
Particulars	March 31, 2021	March31,2020
Expenses recognised during the year	133	98
Less:Ceased to be subsidiary	133	-
	-	98

167

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

D. Amount recognized in the statement of cash flows

Particulars	March 31, 2021	March31,2020
Payments for lease	173	73
Deposit for leases	-	22
Prepayment forleases	-	4
Total	173	99

Company as a lessee

The Group 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 Group recognizes the lease payments as an expense in the Statement of Profit and Loss on a straight line basis over the term of lease. Lease rentals recognized in the Statement of Profit and Loss is amounting to 1,511 lakhs (March 31, 2020 1,759 lakhs).

11. Employee Benefit Obligations

The Group has classified various employee benefits as under:

(a) Leave obligations

The leave obligations cover the group’s liability for sick and privileged leave

Leave obligations The leave obligations cover the group’s liability for sick and privileged leave
		`inlakhs
Provision for leave encashment	March 31, 2021	March31,2020
Current*	488	554
Non-current	1,554	1,873
* The Group does not have an unconditional right to defer the settlements.

(b) Defined contribution plans

(i)	Provident fund
(ii)	Superannuation fund
(iii)	State defned contribution plans
(iv)	Employees’ Pension Scheme, 1995

The Company has recognised the following amounts in the statement of profit and loss / capital work-in-progress for the year:

the year:
		`inlakhs
Particulars	Year Ended	Year Ended
	March 31, 2021	March31,2020
Contribution to defned contribution plans (provident and other funds)	655	732

(c) Post employment obligation

Gratuity

The Group provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

(i) Significant estimates: actuarial assumptions

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

Particulars	March 31, 2021	March 31, 2020
Discount Rate (per annum)	6.20%	6.30%
Rate of increase in compensation levels	7.50%	7.50%
Rate of return on plan assets	6.20%	6.30%

168

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(ii) Gratuity Plan

			`in lakhs
Particulars	Present value of	Fair value of plan	Net amount
	obligation	assets
April 01, 2019	2,518	1,009	1,508
Current service cost	343	-	343
Past Service cost	-	400	(400)
Interest cost	162	59	103
Total amount recognised in proft and loss	505	459	46
Remeasurements
Return on plan assets, excluding amount included	-	(16)	16
in interest expense/(income)
(Gain) / loss from change in demographic	38	-	38
assumptions
(Gain ) / loss from change in fnancial assumptions	110	-	110
Experience (gains) / losses	54	-	54
Total amount recognised in other comprehensive	202	(16)	218
income
Employer contributions	-	324	(324)
Beneft payments	(176)	(172)	(4)
March 31, 2020	3,049	1,604	1,445
April 01, 2020	3,049	1,604	1,445
Current service cost	377	-	377
Past Service cost	-	-	-
Interest cost	173	82	91
Total amount recognised in proft and loss	550	82	468
Remeasurements
Return on plan assets, excluding amount included	-	85	(85)
in interest expense/(income)
(Gain) / loss from change in demographic	5	-	5
assumptions
(Gain ) / loss from change in fnancial assumptions	11	-	11
Experience (gains) / losses	(485)	-	(485)
Total amount recognised in other comprehensive	(469)	85	(554)
income
Employer contributions	(2)	10	(12)
Beneft payments	(460)	(486)	25
Amount not recongised as an assets		-	-
March 31, 2021	2,668	1,296	1,372
The net liability disclosed above relates to funded and	unfunded plans is	as follows
Particulars		March 31, 2021	March 31, 2020
Present value of obligations		2,540	2,877
Fair value of plan assets		1,296	1,533
(Surplus) / Defcit of funded plan		1,244	1,344
Present value of obligations		128	172
Fair value of plan assets		-	72
(Surplus) / Defcit of unfunded plan		128	100
(Surplus) / Defcit of funded / unfunded plan		1,372	1,445
Current Portion		29	16
Non-Current Portion		1,343	1,429

169

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(iii) Sensitivity analysis

The sensitivity of the provision for defined benefit obligation to changes in the weighted principal assumptions is:

Particulars	Impact on closing balance of provision for defned beneft obligation
	Change in assumptions Increase in assumptions Decrease in assumptions
	March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Discount rate Rate of increase in compensation levels	0.50% 0.50% (2.72%) (2.56%) 2.87% 2.70% 0.50% 0.50% 2.82% 2.65% (2.70%) (2.55%)

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.

The above funded defined benefit plans are administrated by Life Insurance Corporation of India (LIC) and Reliance Nippon Life Insurance Company Limited (RNLIC).

(iv) For unfunded plan, the Group has no compulsion to pre fund the liability of the plan. The Group’s policy is not to externally fund these liabilities but instead recognize the provision and pay the gratuity to its employees directly from its own resources as and when the employee leaves the Group.
(v) Defined benefit liability and employer contributions:

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

(vi) 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. Group’s assets pledged as security

Group’s assets pledged as security
		`in lakhs
Particulars	March 31, 2021	March 31,2020
Non – current
First charge
Financial assets
Finance lease receivable	3,94,479	4,24,085
Other fnancial assets	7,634	9,256
Investments	429	23
Loans	1,062	1,314
Non fnancial assets
Property, plant and equipment	25,98,459	27,78,317
Capital work-in-progress	1,87,808	1,99,947
Other intangible assets	3,169	3,347
Other non-current assets	56,212	57,875
Total Non-current assets pledged as security (A)	32,49,252	34,74,163
Current
First charge
Financial assets
Investment	3,128	3,021
Trade receivable	2,40,987	2,36,476
Cash and bank balance	30,338	18,673
Loans	9,708	10,433
Finance lease receivable	29,766	29,876
Other fnancial assets	55,488	41,990

170

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

		`in lakhs
Particulars	March 31, 2021	March 31,2020
Non-fnancial assets
Inventories	87,412	1,01,156
Other current assets	24,981	10,004
Total current assets pledged as security (B)	4,81,808	4,51,629
Total assetspledged as security (A+B)	37,31,060	39,25,792

13. 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 Group’s related parties and transactions are disclosed below:

A. Investing Parties/Promoters having significant influence on the Group directly or indirectly
(i) Company
- Reliance Infrastructure Limited (R Infra) (Upto January 09, 2020)
(ii) Individual
- Shri Anil D. Ambani (Chairman)
B. Other related parties with whom transactions have taken place during the year
(i) Enterprises over which Companies/ individual described in clause (A) above and clause (B) (ii) has control / significant influence.
- (a) Reliance Capital Limited (RCAP)
- (b) Reliance Commercial Finance Limited (RCFL)
- (c) Reliance Home Finance Limited (RHFL)
- (d) Reliance General Insurance Company Limited (RGICL)
- (e) Reliance Big Entertainment Private Limited (RBEPL)
- (f) BSES Rajdhani Power Limited (BRPL)
- (g) BSES Yamuna Power Limited (BYPL)
- (h) Reliance Infrastructure Limited (R Infra) (w.e.f. January 10, 2020)
- (i) Reliance Corporate Advisory Services Private Limited (RCAS)
(ii) Key Managerial Personnel

For Parent Company

(a) Shri K. Raja Gopal - Whole-time Director and Chief Executive Officer
(b) Shri Sandeep Khosla - Chief Financial Officer (w.e.f April 01, 2020)
(c) Shri Shrenik Vaishnav - Chief Financial Officer (Upto March 31, 2020)
(d) Shri Murli Manohar Purohit – Company Secretary
(iii) Associates
(a) RPL Sun Power Private Limited (RSUNPPL)
(b) RPL Photon Private Limited (RPHOTONPL)
(c) RPL Sun Technique Private Limited (RSUNTPL)

171

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Details of transactions during the year and closing balances at the year end
`in lakhs

SN Nature of transactions
Investing
parties
having
signifcant
infuence on
the Group
directly or
indirectly
[13 A(i)]
Key
managerial
personnel
[13 B(ii)]
Enterprises
over which
Companies/
individual
described in
clause (A)
above have
control/
signifcant
infuences
[13 B(i)]
Associates
[13 B (iii)]
Total

Transactions during the year
1
Sale of energy (net of Rebate)
-
-
47,159
-
47,159
4,492
-
42,558
-
47,050
2
Interest income on inter corporate deposits
-
424
-
424
1,323
-
-
-
1,323
3
Remuneration to key managerial personnel
Short Term employee benefts
-
415
-
-
415
-
451
-
-
451
4
Rent expenses
-
179
-
179
422
-
-
-
422
5
Interest expenses towards ICD and non-
convertible debenture
-
-
21,642
-
21,642
9,966
-
14,390
-
24,356
6
Insurance premium
-
-
5,917
-
5,917
-
-
6,760
-
6,760
7
Insurance claim received / accrued
-
-
821
-
821
-
-
1,737
-
1,737
8
Material and services received
-
299
-
299
504
-
-
-
504
9
Short term borrowing received
-
3,312
-
3,312
9,296
-
-
-
9,296
10
Short term borrowing refunded
-
-
-
-
15,280
-
500
-
15,780
11
Inter corporate deposit given
-
-
-
-
-
1,282
-
-
-
1,282
12
Trade receivables written off
-
426
-
426
1,589
-
1,512
-
3,101
13
Liability written back
-
-
2,432
-
2,432
-
-
-
-
-
14
Fair valuation gain of NCD/ ICD
(Refer note 38)
-
-
28,954
-
28,954
-
-
-
-
-
15
Assignment of ICD taken (incl. interest)
-
33,861
-
33,861
41,031
-
-
-
41,031
16
Assignment of ICD given (Incl interest)
-
-
-
-
-
21,964
-
-
-
21,964
17
Assignment of Trade receivable
-
-
-
-
-
19,258
-
-
-
19,258
18
Provision for capital advances
-
-
-
-
-
2,127
-
-
-
2,127
19
Assignment of other liabilities
-
-
-
-
-
191
-
-
-
191

172

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

						`in lakhs
SN	Nature of transactions	Investing	Key	Enterprises	Associates	Total
		parties	managerial	over which	[13 B (iii)]
		having signifcant infuence on	personnel [13 B(ii)]	Companies/ individual described in
		the Group		clause (A)
		directly or		above have
		indirectly [13 A(i)]		control/ signifcant infuences
				[13 B(i)]
Outstanding Closing Balances :
20	Financial liabilities	-	-	3,01,644	-	301,644
		2,78,049	-	43,812	-	3,21,861
21	Retention payable towards EPC contract	-	-	3,765	-	3,765
		3,765	-	-	-	3,765
22	Advances against EPC and other contracts	-	-	1,24,552	-	1,24,552
		1,24,677	-	-	-	1,24,677
23	Short term borrowing - ICD	-	-	1,89,786	-	1,89,786
		74,948	-	74,177	-	1,49,125
24	Receivables -fnancial assets	-	-	1,28,152	-	1,28,151
		1,13,504	-	7,388	-	1,20,892
25	Inter corporate deposits receivable	-	-	4,035	-	4,035
		4,035	-	-	-	4,035
26	Equity share capital contribution	@	-	-	-	@
		@	-	-	-	@
Capital Commitment :-
27	Capital commitment	-	-	69,535	-	69,535
		69,855	-	-	-	69,855

@ Amount is below the rounding off norm adopted by the Group.

(Figures relating to current year are reflected in bold, relating to previous year are in unbold)

Details of material balances : Financial liabilities 2,80,485 lakhs to Rinfra (March 31, 2020 2,78,049 lakhs), Advances against EPC and other contracts 1,24,552 lakhs to Rinfra (March 31, 2020 1,24,677 lakhs),

Note

The above disclosures do not include transactions with public utility service providers, viz, electricity, telecommunications in the normal course of business.
Transactions and balances with related parties which are in excess of 10% of the total revenue and 10% of the networth respectively of the Group are considered as material transactions.
During the year 2020-21, the Parent Company has paid sitting fees of 2 lakhs (March 31, 2020 2 lakhs) to Individual mentioned in A (ii) above.
Transactions with related parties are made on the terms equivalent to those that prevail in case of arm’s length transactions.

14. Earnings per share

Earnings per share
Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Proft available to equity shareholders
Proft / (Loss) of Continuing Operations (A) (`in Lakhs)	20,177	(4,06,031)
Proft / (Loss) of Discontinuing Operations (B) (`in Lakhs)	2,686	(1,628)
Proft / (Loss) of Continuing and Discontinuing operations (C) (`in Lakhs)	22,863	(4,07,659)
Number of equity shares
Weighted average number of equity shares outstanding (Basic and Diluted) (D)	2,80,51,26,466	2,80,51,26,466
Basic and diluted earnings per share for Continuing Operations (A / D) (`)	0.719	(14.475)
Basic and diluted earnings per share for Discontinuing Operations (B/D)(`)	0.096	(0.058)

173

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Basic and diluted earnings per share for Continuing and Discontinuing Operations	0.815	(14.533)
(C/D) (`)
Nominal value of an equity share (`)	10	10

15. Oil & Gas and Coal Bed Methane (CBM) blocks

The Parent Company, through its subsidiaries, has acquired Participating Interest (PI) in Oil & Gas and Coal Bed Methane (CBM) blocks in India by executing Production Sharing Contract (PSC) with the Government of India. PI in Oil & Gas block in Mizoram is held by Reliance Prima Limited (R Prima), PI in two CBM blocks in Rajasthan is held by Atos Trading Private Limited (ATPL), PI in CBM block in Madhya Pradesh is held by Coastal Andhra Power Infrastructure Limited (CAPIL) and PI in CBM block in Andhra Pradesh is held by Atos Mercantile Private Limited (AMPL).

Name of the Subsidiary	Name of the feld	Location	Participating
			interest (%)
Coastal Andhra Power Infrastructure Limited	SP (N) CBM-2005/III	Sohagpur, Madhya Pradesh	45
Atos Mercantile Private Limited	KG (E) CBM-2005/III	Kothagudem, Andhra Pradesh	45
Atos Trading Private Limited	BS (4) CBM-2005/III	Barmer, Rajasthan	45
Atos Trading Private Limited	BS (5) CBM-2005/III	Barmer, Rajasthan	45
Reliance Prima Limited	MZ-ONN-2004 / 2	Mizoram	10

Based on the statement of accounts of consortium, the subsidiaries have accounted for assets, liabilities, income and expenditure of Oil & Gas and Coal Bed Methane (CBM) blocks.

		`in lakhs
Particulars	As at	As at
	March 31, 2021	March 31,2020
Current assets
Inventories	-	262

During the year 2013, PSC of Oil & Gas block in Mizoram, wherein R Prima (subsidiary of Reliance Power Limited) has a participating interest of 10%, was terminated by the Government of India pursuant to discovery of misrepresentation by the Operator of the block, M/s. Naftogaz India Private Limited. Pursuant to such termination, R Prima has represented to the Government of India that it was not aware about the misrepresentation of fact by Naftogaz India Private Limited whose credentials to act as Operator were accepted by the Government of India. Hence, no obligation can accrue to the Group in connection with the termination of the contract due to misrepresentation by the Operator.

16. Income Taxes

The major components of income tax expense for the year ended March 31, 2021 and March 31, 2020 are as under:

(a)	Income tax recognised in Statement of Proft and Loss			`in lakhs
	Particulars	March	31, 2021	March 31, 2020
	Income tax expense
	Current tax (net of earlier years)		5,649	4,494
	Deferred tax		(7,140)	(2,128)
	Income tax expense		(1,491)	2,366
(b)	The reconciliation of tax expense and the accounting proft multiplied by tax	rate		`in lakhs
	Particulars	March	31, 2021	March 31, 2020
	Proft/ (Loss) before income tax expense		43,903	(424,782)
	Income Tax expenses at tax rates applicable to individual entity		22,756	(84,116)
	Tax effect of amounts which are not deductible(taxable) in
	calculating taxable income :
	Expenses (admissible) / inadmissible under Income Tax Act (net)		(22,048)	82,992
	Effect of fnance lease reduction from lease receivable/ recoverable from benefciaries		(7,985)	(3,866)
	Effect of tax on account of available tax holiday under section 80IA of		28,297	(9,858)
	the Income tax Act

174

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Losses of subsidiaries on which no deferred tax asset was recognised /	22,181	27,708
not admissible loss
Minimum alternate tax on which no deferred tax recognised	5,600	4,486
Reversal of Deferred tax assets/ Liability created on PPE for tax holiday	(42,119)	-
period due adoption of new tax regime u/s 115BBA
Other items (net)	(8,173)	(14,980)
Income tax expense	(1,491)	2,366

(c)	Tax liabilities (net of assets) `in lakhs
	Particulars March 31, 2021 March 31, 2020
	Provision for income tax (advance tax) – Opening balances 11,116 18,514 Add: Current tax payable for the year 5,649 4,494 Less: Taxes paid (net of refund) (4,027) (11,892) Less: earlier period tax reversal (14,500) - Provision for income tax (advance tax) – Closing balances (1,762) 11,116

(d)	Deferred tax assets/ (Liabilities)(Refer note 3.15) `in lakhs
	Particulars Property, plant and equipment Government Grant Finance lease receivables Total
	At April 01, 2019 (1,55,731) 60,267 (1,34,350) (2,29,814) (Charged)/credited to proft and loss (1,60,973) (2,315) 1,65,416 2,128 At April 01, 2020 (3,16,704) 57,952 31,066 (2,27,686) (Charged)/credited to proft and loss 17,656 (12,536) 2,021 7,140 At March 31, 2021 (2,99,048) 45,416 33,087 (2,20,545)

Component on which Deferred tax asset is not recognised:-

Component on which deferred tax asset has not been recognised by the group for the year ended March 31, 2021 includes unabsorbed depreciation 2,68,942 lakhs, (March 31, 2020 2,46,839), business losses 103,625 lakhs (March 31, 2020 98,046 lakhs) and others 1,302 lakhs (March 31, 2020 12,004 lakhs).

The Group also has unutilized unrecognized MAT credit of 123,370 lakhs for the year ended March 31, 2021 ( March31, 2020 1,23,760 lakhs).

|(e)
Unused tax
in lakhs **Particulars** **March 31, 2021** March 31, 2020 Unused tax losses for which no deferred tax asset has been recognised **3,73,869** 3,56,889 Potential tax beneft **97,128** 92,442 (includes unabsorbed depreciation) *The unused tax losses were incurred which is not likely to generate taxable income in the foreseeable future. **Year wise expiry of such losses as at March 31, 2021 is as under:** in lakhs|Unused tax
in lakhs|**Unused tax*** in lakhs|
|---|---|---|
||Particulars
March 31, 2021
March 31, 2020||
|Particulars||March 31, 2021|
|Yearwise expiry
Expiring within 1 year
Expiring within 1 to 5 years
Expiring within 5 to 8 years
Without expiry limit
Total||243
27,028
77,656
2,68,941|
|||3,73,869**|

Note: During the year, SPL/RCRL has opted new tax regime u/s 115BAA of the Income Tax Act, from financial year 2019-20.

175

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

17. The information as required by para 35 of the Guidance Note on Accounting for Self- generated Certified Emission Reductions (CERs) relating to certified emission rights issued by Institute of Chartered Accountants of India are as follows:

			`in lakhs
SN	Particulars	March 31, 2021	March 31, 2020
a)	No. Of CERs held as inventory and the basis of valuation	-	-
b)	No of CERs under certifcation	64,646	56,156
c)	Depreciation and operating & maintenance costs of Emission Reduction	-	-
	equipment expensed duringtheyear

18. Fair value measurements

(a) Financial instruments by category

Financial instruments by category
	`in lakhs
Particulars	As at March 31, 2021 As at March 31, 2020
	FVTPL Amortised cost FVTPL Amortised cost
Loans Finance lease receivable Term deposit with more than 12 months maturity Non current bank balances Derivative assets Investment in mutual funds Trade receivables Unbilled revenue Cash and cash equivalents Other bank balances Government bond/ Equity Other fnancial assets Total fnancial assets Financial liabilities Borrowings Retention money payable Creditors for capital expenditure Derivative liability Trade payables Creditors for supply and services Security deposit received Unclaimed dividend Other fnancial liabilities Total fnancial liabilities	- 55,007 - 54,696 - 4,24,245 - 4,53,961 - 14 - 14 - 2,112 - 2,181 6,978 6,948 3,128 3,021 - 2,40,988 - 2,36,452 - 16,783 - 5,231 - 14,420 - 12,494 - 17,101 - 15,949 - 429 - 23 - 38,809 - 61,917 10,106 8,09,908 9,969 8,42,916 - 27,33,399 - 30,03,779 - 5,647 - 5,667 - 2,62,305 - 2,71,133 14,252 8,270 - 41,523 - 43,436 - 751 - 5,873 - 108 - 181 - 299 - 299 - 1,37,262 - 1,63,074 14,252 31,81,294 8,270 34,93,442

(b) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. The Group has not disclosed the fair values of financial instruments such as shortterm trade receivables, trade payables, cash and cash equivalents, Fixed deposits, Security deposits etc. as carrying value is reasonable approximation of the fair values. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath table.

				`in lakhs
Financial assets and liabilities measured at fair value	Level 1	Level 2	Level 3	Total
measurements as at March 31, 2021
Financial assets
Financial Investments at FVPL
Derivative assets	-	6,978	-	6,978
Investments in mutual funds	-	3,128	-	3,128
Government Bond	-	-	-	-
Total fnancial assets	-	10,106	-	10,106
Financial liabilities
Derivative liability	-	14,252	-	14,252
Total fnancial liability	-	14,252	-	14,252

176

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

Assets and liabilities which are measured at	Level 1	Level 2	Level 3	Total
amortised cost for which fair values are disclosed
as at March 31, 2021
Financial Assets
Loans	-	-	39,518	39,518
Finance lease receivable	-	4,49,683	-	4,49,683
Government Bond	23	-	-	23
Investment in equity share	-	406	-	406
Term deposits with more than 12 months maturity	-	14	-	14
Non-current bank balance	-	2,112	-	2,112
Other fnancial assets	-	-	751	751
Total Financial Assets	23	4,52,215	40,269	4,92,507
Borrowings	-	20,92,825	2,23,356	23,16,181
Retention money payable	-	-	3,765	3,765
Lease Liability	-	-	-	-
Total fnancial liabilities	-	20,92,825	2,27,121	23,19,946
Financial assets and liabilities measured at fair value	Level 1	Level 2	Level 3	Total
measurements as at March 31, 2020
Financial assets
Financial Investments at FVPL
Derivative assets	-	6,948	-	6,948
Investments in mutual funds	-	3,021	-	3,021
Total fnancial assets	-	9,969	-	9,969
Financial liabilities
Derivative liability	-	8,270	-	8,270
Total fnancial liability	-	8,270	-	8,270
Assets and liabilities which are measured at	Level 1	Level 2	Level 3	Total
amortised cost for which fair values are disclosed at
March 31, 2020
Finance Assets
Loans	-	-	40,786	40,786
Finance lease receivable	-	5,00,756		5,00,756
Term deposits with more than 12 months maturity	-	14	-	14
Government Bond	23	-	-	23
Non-current bank balance	-	2,181	-	2,181
Other fnancial assets	-	-	751	751
Total Financial Assets	23	5,02,951	41,537	5,44,511
Borrowings	-	23,00,829	2,62,706	25,63,535
Retention money payable	-	-	3,765	3,765
Lease Liability	-	-	2,593	2,593
Total fnancial liabilities	-	23,00,829	2,69,064	25,69,893

177

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

	`in lakhs
Fair value of fnancial assets and liabilities measured at amortised cost	March 31, 2021 March 31, 2020
	Carrying amount Fair value Carrying amount Fair value
Financial assets Loans Finance lease receivables Term deposits with more than 12 months maturity Non-current bank balances (including margin money deposits towards bank guarantee) Other fnancial assets Government bond Investment Total fnancial assets Financial Liabilities Borrowings Retention money payable Lease Liability Total fnancial liabilities	39,518 39,518 40,786 40,786 4,24,245 4,49,683 4,53,961 5,00,756 14 14 14 14 2,112 2,112 2,181 2,181 751 751 751 751 23 23 23 23 406 406 - - 4,67,070 4,92,508 4,97,716 5,44,511 23,27,630 23,22,264 25,63,535 25,63,535 3,765 3,765 3,765 3,765 - - 2,593 2,593 23,31,395 23,26,029 25,69,893 25,69,893

(d) Valuation technique used to determine fair values
Specific valuation technique used to determine the fair values:
Investment in mutual funds are valued using the closing Net Assets Value (NAV). NAV represents the price at which the issuer will issue these units and will redeem such units of mutual fund to and from the investor.
Interest rate swaps is calculated as the present value of the estimated future cash flows based on observable curves.
Forward foreign exchange contracts is determined using Bloomberg forward contract pricing model, which determines fair value on a discontinued cash flow basis.
Foreign currency option contracts is determined using the Black Scholes valuation model.
Remaining 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 Group 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: 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-thecounter 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 Group’s policy is to recognise transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.

178

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

19. Financial risk management

The Group’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk.

Risk	Exposure arising from	Measurement	Management
Credit Risk	Cash and cash equivalents, trade receivables, fnancial assets measured at	Ageing analysis	Diversifcation of bank deposits, letters of credit
	amortised cost.
Liquidity Risk	Borrowings and other liabilities	Rolling cash fow	Availability of committed credit lines and
		forecasts	borrowing facilities
Market risk –	Recognised fnancial assets and liabilities	Sensitivity analysis	Partly hedge by foreign exchange
foreign exchange	not denominated in Indian rupee (INR)		forward contracts and call spread
Market risk –	Long-term borrowings at variable rates	Sensitivity analysis	Partly hedge by Interest rate swap
interest rate

(a) Credit risk

The Group is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the Group. Credit risk arises from cash and cash equivalents, financial assets, carried at amortised cost and deposits with banks and mutual funds, as well as credit exposures with trade customers towards sale of electricity as per the terms of PPA under respective state regulations and respective state distribution companies including outstanding receivables.

Credit risk management

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

The Group’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 corporates. 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. There is no change in the risk status of such corporates.

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

(b) Liquidity risk

(i) 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, Group treasury maintains flexibility in funding by maintaining availability under committed credit lines.

In respect of its existing operations, the Group 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 renewable annually, together with certain intra-group loans. The Group 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 Group’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Group’s liquidity management policy involves projecting cash flows with customers and by considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Periodic budgets and rolling forecasts are prepared at the level of operating subsidiaries as regular practice and in accordance with limits specified by the Group. There is default in repayment of loans including interest accrued of ` 4,30,045 lakhs as at the end of the financial year. The Group 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.

179

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

(ii) Maturities of financial liabilities

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

				`in lakhs
March 31, 2021	Less than 1	Between 1 year	More than 5	Total
	year	and 5years	years
Non-Derivative
Interest bearing borrowing*	11,39,784	13,74,550	12,54,202	37,68,536
Trade payables	88,172	-	-	88,172
Creditors for supplies and services	12,340	-	-	12,340
Creditors for capital expenditure	2,62,017	-	-	2,62,017
Retention money payable	5,645	-	-	5,645
Others	1,38,060	-	-	1,38,060
Total Non-Derivative	16,46,019	13,74,550	12,54,202	42,74,771
Derivative liability
Forward exchange contract use for hedging:
Outfow	-	-	98,501	98,501
Infow	-	-	(84,249)	(84,249)
Total Derivative Liabilities	-	-	14,252	14,252
				`in lakhs
March 31, 2020	Less than 1	Between 1 year	More than 5	Total
	year	and 5years	years
Non-Derivative
Interest bearing borrowing*	15,27,544	16,51,505	13,89,170	45,68,219
Trade payables	43,436	-	-	43,436
Creditors for supplies and services	5,873	-	-	5,873
Creditors for capital expenditure	2,71,133	-	-	2,71,133
Retention money payable	5,667	-	-	5,667
Others	1,63,552	-	-	1,63,552
Total Non-Derivative	20,17,205	16,51,505	13,89,170	50,57,880
Derivative liability
Forward exchange contract use for hedging:
Outfow	-	-	98,501	98,501
Infow	-	-	(90,231)	(90,231)
Total Derivative Liabilities	-	-	8,270	8,270

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

(c) Market risk

(i) Foreign currency risk

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

While the Group 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 Group invests. For that reason, the below sensitivity analysis may not necessarily indicate the total effect on the Group’s net assets attributable to holders of equity shares of future movements in foreign exchange rates.

180

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

• Foreign currency risk exposure

The Group exposure to foreign currency risk (all in USD) at the end of the reporting period expressed in Rupees, are as follows:

are as follows:
		`in lakhs
Particulars	March 31, 2021	March 31,2020
Financial liabilities Borrowing Other Gross foreign currency exposure Covered by hedging instruments Forward contracts Call spread Cross currency swap Total Covered by hedging instruments Net foreign currency exposure	8,39,529 2,22,270 10,61,799 73,505 61,009 - 1,34,514 9,27,285	10,08,428 2,30,214 12,38,642 75,386 73,878 - 1,49,264 10,89,378

Sensitivity of foreign currency exposure

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.

` in lakhs

fnancial instruments.	`in lakhs
Particulars	Impact on proft before tax / CWIP/ PPE Impact on equity**
	March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
USD sensitivity FX rate - increase by 6% on closing rate on reporting date FX rate - decrease by 6% on closing rate on reportingdate	(56,587) (65,561) (1,896) (3,591) 52,926 61,113 1,896 3,591

*Holding all other variables constant

** The above impact has been assessed taking into consideration the accounting policy adopted by the Group for the accounting for foreign exchange differences. (Refer note 2.1(n) above).

(ii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group’s cash flow to interest rate risk.

The Group’s fixed rate borrowings and inter corporate deposits 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.

• Interest rate risk exposure

The exposure of the Group’s borrowings to interest rate changes at the end of the reporting period is as follows:

` in lakhs

•	Particulars March 31, 2021 March 31, 2020
	borrowing with variable rate 15,09,991 14,08,926 Interest Sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates for the next one year.

rates for the next one year.
		`in lakhs
Particulars	March 31, 2021	March 31,2020
Interest Cost- increased by 5% on existing Interest Cost*	(10,944)	(7,307)
Interest Cost- decrease by 5% on existing Interest Cost*	10,944	7,307
* Holding all other variables constant

Also during the year, VIPL has not provided interest on borrowing amouting to ` 34,078 lakhs (Refer Note 36)

181

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

20. Capital Management

Risk Management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders, 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 Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

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

` in lakhs

		`in lakhs
Particulars	March 31, 2021	March 31, 2020
Equity (excluding other reserves) Debt Total	11,97,327 25,63,462 37,60,788	11,62,667 28,76,140 40,38,807

21. Segment reporting

Presently, the Group 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 Group’s operations are predominantly confined in India.

Information about major customers

Revenue for the year ended March 31, 2021 and March 31, 2020 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, 2021 and March 31, 2020 were as follows:

` in lakhs

Customer Name	For the Year ended	For the Year ended	For the Year ended	For the Year ended
	March 31, 2021		March 31, 2020
	Revenue	Percent	Revenue	Percent
Uttar Pradesh Power Corporation Limited MP Power Management Company Limited Total	2,93,093 1,83,721 4,76,814	37% 23% 60%	2,76,783 1,79,068 4,55,851	37% 24% 61%

22. Government grants

a. SPL is eligible for exemption of certain duties and taxes levied by GoI, which has been recognised in the books as government grant. (Refer note 2.1(z) for further details).
b. RPSCL is liable to pay entry tax on inter-state purchase of certain goods under “Uttar Pradesh Tax on Entry of Goods in Local Area Act, 2007”. As per Uttar Pradesh Power Policy 2003 read with Notification 1770 dated July 05, 2004 issued by the GoUP, RPSCL is eligible for grant of a moratorium period of 9 years from the date of commencement of operation for payment of entry tax on each phase of the project. Accordingly, considering the said policy, RPSCL is filing the returns and would make the payments to the regulatory authorities on completion of moratorium period.
c. RPSCL is liable to pay Value added tax on purchase of goods under “Uttar Pradesh Value Added Tax Act, 2008”. As per Uttar Pradesh Power Policy 2003 read with Notification 1772 dated July 05, 2004 issued by Government of Uttar Pradesh, RPSCL is eligible for grant of a moratorium period of 9 years from the date of commencement of operation, for payment of Value added tax. Accordingly, considering the said policy, RPSCL is filing the returns and would make the payments to the regulatory authorities on completion of moratorium period.

RPSCL has been awarded the Government grant in the form of deferred payment benefits for Entry tax and Value added tax. The above two benefits have been accounted for as the Government grant. (Refer note 2.1(z) for further details.

details.
		`in lakhs
Particulars	As at	As at
	March 31, 2021	March 31, 2020
Opening balance	188,441	194,349
Grants during the year	-	-
Released to proft and loss	(5,907)	(5,908)
Closing balance	182,534	188,441

182

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

23. Provision for Mine closure obligation (in case of SPL)

Provision for Mine closure obligation (in case of SPL)
		`in lakhs
Particulars	As at	As at
	March 31, 2021	March 31, 2020
Balance as at beginning of the year	1,758	1,496
Additions	15	81
Amount used/reversed	-	-
Unwinding of interest	223	181
Balance as at the end of the year	1,996	1,758

Provision for mine closure obligation represents estimates made towards the expected expenditure for restoring the mining area and other obligatory expenses as per the approved mine closure plan. The timing of the outflow with regard to the said matter would be in a phased manner based on the progress of excavation of coal and consequential restoration cost.

24. The Hon’ble Bombay High Court, had vide its order dated March 26, 2019, granted liberty to RPSCL to revise its Financial Statements for the financial year 2017-18 and seek the approvals of the National Company Law Tribunal (NCLT) under Section 131 of the Companies Act, 2013. NCLT, Mumbai Bench, vide its order dated March 20, 2020 granted permission to the RPSCL to revise its Financial Statements for the financial year 2017- 2018. In order to comply with the NCLT order dated March 20, 2020 and section 129 of the Act, RPSCL has revised its financial statement for the financial year 2017-2018 and complied with formalities as per the Order.

The revision of the financial year 2017-18 pursuant to NCLT order is provided in the table below. The said revision does not have any impact on the financial statements of the RPSCL for the current year as the relevant impact was already considered while preparing the financial statement for the year ended March 31, 2019.

A. Changes in Balance Sheet as at March 31, 2018

			`in lakhs
Particulars	As at	Restatements	As at
	March 31,2018		March 31, 2018
	(Reported)		(Restated)
Assets
Trade receivables	1,80,143	(99,944)	80,199
Total Assets	11,11,439	(99,944)	10,11,495
Equity and Liabilities
Other Equity	4,89,236	(81,563)	4,07,673
Current tax liabilities (net)	18,390	(18,381)	9
Total Equity and Liabilities	11,11,439	(99,944)	10,11,495

B. Changes in statement of Profit and Loss for the year ended March 31, 2018:

			`in lakhs
Particulars	For the year	Restatements	For the year
	ended March 31,		ended March 31,
	2018(Reported)		2018(Restated)
Revenue
Revenue from operations	3,37,772	(11,760)	3,26,012
Receivables written off (being earlier years revenue	-	(88,184)	(88,184)
written off)
Proft /(loss) before tax	86,129	(99,944)	(13,815)
Current tax	18,381	(18,381)	-
Proft /(loss) for the year	67,770	(81,563)	(13,793)
Earnings per equity share: (Face value of`10 each)
- Basic	15.97	-	(3.24)
- Diluted	15.95	-	(3.23)

25. The Hon’ble Bombay High Court, had, vide its order dated March 26, 2019, granted liberty to VIPL to revise their financial statements for the financial year 2017-18 and seek the approvals of the National Company Law Tribunal (NCLT) under Section 131 of the Companies Act, 2013.. The NCLT, at the hearing held on March 10, 2021, has reserved the final order. For VIPL, the management expects a similar kind of order that it received for RPSCL.

183

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

26. In the case of SMPL, the area in which the plant is under construction includes land admeasuring 61 acres, owned by R Infra which is under possession of SMPL through Memorandum of Understanding. SMPL has obtained an affirmation from R Infra that the assets on the land is the property of SMPL.

27. Reliance Power Holding FZC (RPHF), a wholly owned subsidiary of the Parent Company has received the 2[nd] and 3[rd] Installment of ` 10,279 Lakhs (USD 14 Mn) during the year from JERA Power International B.V. (JERA), towards advance against acquisition of shares from RPHF in Reliance Bangladesh LNG & Power Limited (RBLPL), SPV incorporated to develop 718 MW (net) Gas based combined cycle power project (Phase-1) at Meghnaghat in Bangladesh.

28. SMPL had entered into an Erection, Procurement and Construction Contract with RInfra in the year 2010. As a part of Contract, R Infra was procuring and supplying certain offshore equipment by importing from out of India considering that, project has received provisional mega power status certificate from the Ministry of Power/ Government of India which, inter alia, entails the project to avail the exemptions/ benefits of Mega power projects, including customs duty. However, Customs authorities and Customs, Excise and Service Tax Appellate Tribunal have not considered the exemption of custom duty and SMPL has filed an appeal before the Hon’ble Supreme Court of India claiming the benefits of Mega project. The Engineering Procurement and Construction (EPC) contract entered into with R Infra, is inclusive of all taxes and duties and hence such custom duty benefit, if granted under the aforesaid scheme will be passed on to R Infra. Basis developments as detailed in note no. 7, during the FY 2018-19, SMPL had filed an Interim Application before Honorable Supreme Court seeking direction to Customs to permit RInfra to continue to warehouse the goods on behalf of SMPL and to permit SMPL or Rinfra on behalf of SMPL to re-export the goods out of India.

29. Corporate social responsibility (CSR)

The Group was required to spend 251 lakhs towards CSR based on the profitability of respective subsidiaries. The Group has spent 285 lakhs towards promotion of education, healthcare and sanitation during the year in the respective entities.

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

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined based on the information available with the Group and the required disclosure are given below.

			`in lakhs
Particulars		For the year ended	For the year ended
		March 31, 2021	March 31, 2020
(a)	The principal amount remaining unpaid to supplier as at the end of	3,451	2,565
	the accounting year
(b)	The interest due thereon remaining unpaid to supplier as at the end	894	@
	of the accounting year
(c)	The amount of interest paid in terms of Section 16, along with the	-	-
	amount of payment made to the supplier beyond the appointed day
	during the year
(d)	The amount of interest due and payable for the year	894	-
(e)	The amount of interest accrued and remaining unpaid at the end of	894	@
	the accounting year
(f)	The amount of further interest due and payable even in the succeeding	-	-
	year, until such date when the interest dues as above are actually paid

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

31. Ind AS Transition Facilitation Group (ITFG) of Ind AS implementation Committee of the Institute of the Chartered Accountants of India (the “ICAI”) has issued clarification on July 31, 2017 and has inter alia made observations regarding method of estimating depreciation adopted for preparing standalone financial statements of the subsidiaries and for preparing consolidated financial statements. The Parent Company has received opinions from legal and accounting firms stating that clarification issued by ITFG will not be applicable to it, as the Parent Company has been following different depreciation methods in subsidiaries and in Consolidated Financial Statements since inception and as required by Ind AS 101 read with Ind AS 16 has continued the methods of providing depreciation even under Ind AS regime. The Parent Company accordingly continued to provide depreciation in its Consolidated Financial Statements by straight line method, which is different as compared to the written down value method considered appropriate by two of its subsidiaries. This has been referred by the auditors in their report as a qualification.

32. Exceptional items

a) During the year, RBLPL and RBLTL ceased to be a subsidiary of the parent company and accordingly gain on deconsolidation aggregating to ` 442 lakhs has been reflected in the Statement of Profit and Loss for year ended March 31, 2021 (Refer note 42).
b) During the previous year, the Parent Company had carried out impairment testing of its receivables and provided for impairment aggregating to ` 19,456 lakhs.

184

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

c) During the previous year, VIPL carried out an impairment testing of Property, Plant and Equipment and other assets, accordingly, as required, based on the valuation exercise carried out by the independent experts, provided for the impairment amounting to ` 109,419 Lakhs in the Statement of Profit and Loss for year ended March 31, 2020.
d) During the previous year, SMPL had written down the value of asset held for sale by ` 86,265 lakhs being the difference of the value carried in the books of account and the value agreed by the Company to sell the said asset based on binding sale agreement of Module 1 of the power plant.
e) During the previous year, PT Sriwijaya Bintang Tiga & PT Brayan Bintang Tiga had made a provision of certain receivables aggregating to 148,046 Lakhs and also provided for impairment of Capital Work in Progress (CWIP) of 11,848 Lakhs, Kalai Power Private Limited had written off CWIP of 11,160 Lakhs, Reliance Bangladesh LNG Terminals Limited had written-off pre-operative expenses of 1,225 Lakhs, Reliance Power Netherlands B.V. created provision against certain receivables of 6,865 Lakhs, Chitrangi Power Private Limited had written off bid bond deposit of 3,986 lakhs and Rajasthan Sun Technique Energy Pvt. Ltd had created provision against capital advance of ` 2,151 Lakhs.
The above are considered as exceptional items for the year ended March 31, 2021 and March 31, 2020.

33. Delay / Default in repayment of Borrowings (Non-current) and Interest

The Group has delayed / defaulted in the payment of dues to the banks and financial institutions. The lender wise details are as under:

as under:
SN Name of Lender	Borrowings Interest
	Delay in repayment during the year ended March 31, 2021 Default as at March 31, 2021 Delay in repayment during the year ended March 31, 2021 Default as at March 31, 2021
	Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)<br>Amount<br>(`in lakhs) Period (Maximum days) Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)<br>Amount<br>(`in lakhs) Period (Maximum days)
I Banks 1 Axis Bank 2 Yes Bank 3 DBS India 4 State Bank of India 5 Syndicate Bank 6 IDBI Bank 7 ICICI Bank 8 Bank of Maharashtra 9 Vijaya bank 10 State Bank of Travancore 11 Oriental Bank of Commerce 12 Axis Bank Gift City 13 US Exim 14 Asian development bank (ADB) 15 Nederlandse Financierings- Maatschappij Voor Ontwikkelingslanden N.V. (FMO) Sr Debt 16 Nederlandse Financierings- Maatschappij Voor Ontwikkelingslanden N.V. (FMO) Sub- debt	3,225 456 42,436 731 255 425 8,461 790 91 81 52,458 791 243 82 19,114 791 126 77 63 1 549 78 363 59 - - 23,275 731 - - 14,166 790 - - 3,900 731 - - 3,668 790 - - - - 264 62 15 30 - - 17,213 805 - - 8,412 791 - - 15,073 731 - - 5,571 790 - - 2,600 731 - - 2,211 790 - - 768 731 - - 861 790 - - 792 731 - - 2,077 790 478 90 20,206 731 - - 1,936 790 71,550 268 24,889 796 7,566 492 2,957 371 - - 13,134 814 2,120 533 5,810 449 - - 10,892 814 1,189 388 4,175 449 - - 1,504 784 - - 1,808 784

185

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

SN Name of Lender	Borrowings Interest
	Delay in repayment during the year ended March 31, 2021 Default as at March 31, 2021 Delay in repayment during the year ended March 31, 2021 Default as at March 31, 2021
	Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)<br>Amount<br>(`in lakhs) Period (Maximum days) Amount (`in<br>lakhs)<br>Period<br>(Maximum<br>days)<br>Amount<br>(`in lakhs) Period (Maximum days)
II Financial Institutions 1 Reliance Commercial Finance Ltd. 2 Reliance Home Finance Ltd. 3 Deewan Housing Finance Limited III Non-convertible Debenture 1 Yes Bank	- - 53,129 731 - - 19,238 731 - - 4,048 568 - - 1,391 568 - - 15,166 548 - - 16,796 913 - - - - 6,765 364 9,419 185
Total	75,470 3,01,546 18,951 1,28,499

As at March 31, 2021 the Group has overdue of 3,01,546 lakhs included in current maturity of long term debt in note no. 3.17(c) and 1,28,499 lakhs included in interest accrued in note no. 3.17(c).

34. (a) Rajasthan Sun Technique Energy Private Limited (RSTEPL) is actively engaged with the lenders and RSTEPL is confident of achieving the debt resolution and further considering support from the Parent Company, the accounts of RSTEPL have been prepared on a going concern basis.

(b) The Net Worth of certain subsidiaries have been eroded due to losses incurred. In view of continuous financial support of the Parent Company, the accounts of those subsidiaries have been prepared on a Going Concern basis.
(c) The Group is confident of meeting its obligations by generating sufficient and timely cash flows through time bound monetization of gas based power plant equipments and other assets of certain subsidiaries, as also envisages to realize the amount from ongoing regulatory / arbitration claims. Notwithstanding the dependence on these material uncertain events and realisation of assets, the Group is confident that such cash flows would enable it to service its debt and discharge its liabilities in the normal course of its business. Accordingly, the consolidated financial statements of the Group have been prepared on a going concern basis.

35. VIPL has incurred operating losses during the year ended March 31, 2021 as well as during the previous year and its current liabilities exceed its current assets. VIPL’s ability to meet its obligation is dependent on outcome of material uncertain events, viz.: i) Civil Appeal No. CA 37 of 2021 filed and currently pending in the Hon’ble Supreme Court (SC), challenging the Ld. Appellate Tribunal for Electricity (APTEL) Judgment dated September 15, 2020, wherein APTEL has upheld the Maharashtra Electricity Regulatory Commission (MERC) Order dated December 16, 2019, relating to the notice of termination of Power Purchase Agreement (PPA). Next hearing date is awaited; ii) Civil Appeal No. CA 372 of 2017 filed by Hon’ble MERC before the Hon’ble Supreme Court (SC), challenging the Ld. Appellate Tribunal of Electricity (APTEL) Judgment dated November 3, 2016 partially setting aside the Hon’ble MERC Order dated June 20, 2016. Final hearing in CA No. 372 of 2017 is awaited. Further in light of the ratio determined in the Hon’ble SC Judgment in Civil Appeal 5399-5400 of 2016 (Energy Watchdog Vs. CERC) and Hon’ble MERC Order dated 07.03.2018 in APML vs. MSEDCL matter, VIPL has filed a revised Mid-Term Review (MTR) No. 199 of 2017 seeking full recovery of coal costs in the variable charge for the period starting from COD till date and for the future period. However, after reserving the order on January 08, 2019, Hon’ble MERC has not issued the same till date. To expedite the MTR Order, VIPL has filed an interim application in CA 372 of 2017 before the Hon’ble Supreme Court seeking direction to Hon’ble MERC for releasing the Mid-Term Review (MTR) order, which would entail recovery of coal cost by VIPL in terms of the change in law relief from MERC in its MTR petition No. 199 of 2017 and securitization of such receivables would provide with necessary liquidity to make the debt service current and support sustainable plant operations going forward. iiii) Application No. 264 of 2020 filed by one of the lenders of VIPL before NCLT under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking debt resolution of VIPL, which is pending before NCLT. VIPL had filed Miscellaneous Application before NCLT for seeking stay in the matter. NCLT has dismissed the said Miscellaneous Application of VIPL on January 29, 2021. VIPL filed appeal against aforementioned NCLT order before the NCLAT and the same was dismissed on March 02, 2021. VIPL has filed the Civil appeal in SC challenging the NCLAT order which is pending. Lender’s Application filed under Section 7 of the IBC pending before NCLT is listed for hearing on June 04, 2021. VIPL has been in discussion with its lenders for a resolution outside the Corporate Insolvency Resolution Process (CIRP). In view of the above, accounts of VIPL have been prepared on a going concern basis. This has been referred by the auditors in their report as a qualification.

186

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

36. The lenders of VIPL had entered into an Inter-Creditor Agreement (ICA) on July 6, 2019 for debt resolution and VIPL had subsequently submitted debt resolution plan on various occasions to its lenders for their review and approval. The proposed debt resolution plan among other proposals included a proposal for waiver of entire interest outstanding on the loan. The ICA expired on January 3, 2020. Post the expiry of ICA, the Company has been pursuing debt resolution with its lenders. The Company is confident of an early resolution including the proposal of waiver of outstanding interest to its lenders. Pending the outcome of the debt resolution, the Company has not provided interest 34,078 lakhs for the year ended March 31, 2021. Had the Company provided the interest in the Statement of Profit and Loss, the profit before tax for the year ended March 31, 2021 would have been lower by 34,078 lakhs. The same shall be considered in subsequent period on completion of resolution with its lenders. This has been referred by the auditors in their report as a qualification.

37. During the previous year, Adani Electricity (Mumbai) Limited (AEML) terminated the Power Purchase Agreement (PPA) with VIPL citing below threshold availability in certain years. The PPA termination notice was held as valid by the Hon’ble Maharashtra Electricity Regulatory Commission (MERC) vide its Order dated December 16, 2019. VIPL had challenged the said MERC order before the Appellate Tribunal of Electricity (APTEL). APTEL dismissed the VIPL appeal and confirmed validity of PPA termination in it’s order dated September 15, 2020. As per the terms of the PPA, the entire output of the plant was to be supplied to AEML and the PPA was also entered for the significant part of the life of the plant and therefore VIPL had considered the contract as finance lease. Since, the PPA stands allegedly terminated, the contract is no longer considered as a finance lease under Ind AS 116 “Leases” and hence, VIPL reinstated the value of Property Plant and Equipment at its fair value, based on the value determined by an independent expert on March 31, 2020. The depreciation for the year ended March 31, 2021 includes depreciation on Property Plant and Equipment of ` 19,909 lakhs. Accordingly, the previous period figures are not comparable with those of the current year to this extent.

38. The Parent Company had outstanding NCD and ICD amounting to 29,057 lakhs and 18,822 lakhs (including interest accrued thereon) respectively. During the year, the terms of the NCD and ICD have been changed w.e.f. June 30, 2020 and August 01, 2020 respectively which resulted in fair valuation gain of ` 28,954 lakhs, the said gain is included under Other Income. The same is in accordance with Ind AS 109 – Financial Instruments, Ind AS 107 – Financial Instruments – Disclosure and Ind AS 32 – Financial Instruments – Presentation.

39. During the previous year ended March 31, 2020, 12,73,21,500 equity shares, constituting 30% of equity share capital, of Rosa Power Supply Company Limited (RPSCL), a subsidiary of the Parent Company, held as pledge for term loan facility to the Parent Company were invoked by a lender. No impact of the said invocation has been given in the books of account except for the holding of the Parent Company, which stands reduced from 100% to 70%.

40. COVID-19 has impacted businesses globally and in India. The Group has continued its assessment of likely adverse impact on economic environment in general and financial risks on account of COVID-19. The Group is in the business of generation of electricity which is an essential service as emphasized by the Ministry of Power, Government of India and hence, the Group has ensured the availability of its power plant to generate power and honour commitments made under various power purchase agreements. The demand for electricity nearly bounced back to normal levels in keeping with the resumption of economic activities since easing of lockdown in various States during the 1[st] wave of COVID-19 pandemic. However, now the country is faced with the 2[nd] wave of COVID -19 pandemic and there exists uncertainity over its impact on future business performances, arising from among other things, any action to contain its spread or mitigate its impact whether government-mandated or elected by the Group and its evolving impact on distribution utilities in terms of demand for electricity; consumption mix; resultant average tariff realization; bill collections from consumers; and support from respective State Governments and banks & financial institutions, including those focused on power sector financing. However, in view of power generation being considered as essential activity as also given the experience of sustaining its operation successfully during the pandemic year, the Group is confident of another year of successful operations with the support from its power procurers and other stakeholders.

41. The Indian Parliament has approved the Code on Social Security, 2020, which would impact the contributions by the company towards Provident Fund, Gratuity and others. 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 impact in the financial statements when the code becomes effective.

42. During the year, Reliance Bangladesh LNG and Power Limited (RBLPL) and Reliance Bangladesh LNG Terminals Limited (RBLTL) ceased to be the subsidiaries of the Parent Company as in case of RBLPL, the Parent Company does not have management control and rights notwithstanding 51% stake in the equity of RBLPL held by the Parent Company through its subsidiaries. In case of RBLTL, the Board of directors of RBLTL has applied to the authority for voluntary winding up and striking off the name in the registrar. The gain on deconsolidation / disposal of the aforesaid subsidiaries aggregating to ` 442 lakhs has been reflected in the consolidated financial results. The investments held in these companies are accounted for in accordance with the provisions and requirements of Ind AS 109 “Financial Instruments.

187

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

43. Discontinuing operations

Discontinuing operations represent Dadri Project, Maharashtra Energy Generation Limited (MEGL), Chitrangi Power Private Limited (CPPL), Reliance Green Power Private Limited (RGPL), One module of Samalkot Power Limited (SMPL) and Kalai Power Private Limited (KPPL). Details of discontinuing operations are as under:

	`inlakhs
Particulars	Year ended
	March 31, 2021 March31,2020
Income Expenses Proft before Tax Tax Expense Proft after Tax	2,751 @ (65) (1,628) 2,686 (1,628) @ @ 2,686 (1,628)
Particulars	As at March 31, 2021 As at March 31, 2020
Assets Liability	94,849 160,305 32 23

@ Amount is below the rounding off norm adopted by the group
a) The Parent Company, through its subsidiary Maharashtra Energy Generation Limited (“MEGL”), had signed Memorandum of Understanding with Government of Maharashtra (GoM) to set up 4,000 MW power project at Shahapur, Raigad District. MEGL expected that the Shahapur project will require 2,500 acres of land for the Power Project. However, the land acquisition procedures could not be completed within the stipulated period and hence MEGL informed the GoM, vide letter dated September 06, 2011, of its decision not to pursue the project. Based on the Honorable High Court Order dated February 07, 2013, MEGL has received 3,716 lakhs in the financial year ended March 31, 2013, out of the total advance of 4,360 lakhs paid to the GoM for acquisition of land. The balance amount of 644 lakhs receivable from the GoM is in the process of recovery. Shetkari Sangharsh Samitee has filed Special Leave Petition in the Honorable Supreme Court of India against the Company, requesting for the stay on the Bombay High Court Order, directing refund of MEGL deposits by the GoM. Further MEGL had given an advance of 596 lakhs to the Land Owners towards direct purchase of land and has issued legal notice for the refund of the amount paid to them. As there are no operations in MEGL as of now, the financial statement have not been prepared on going concern basis accordingly, assets and liabilities have been stated at their net realisable value or cost, whichever is less. Considering the above facts, the Group has classified assets related to projects under head ‘Assets classified as held for sale’ and profit of MEGL has been classified as profit from discontinued operations.
b) CPPL was setting up a 6x660 MW (3,960 MW) super critical coal-fired thermal power project at Chitrangi Tehsil in Singrauli District of Madhya Pradesh. It has received all the major clearances and approvals required for implementation of the project. The company proposed to use coal for this project from the surplus coal up to 9 MTPA from the Moher, Moher- Amlohri Extention and Chatrasal coal Blocks allocated to Sasan Power Limited, allowed by Ministry of Coal (MoC) vide its Gazette notification No.335 dated February 17, 2010 and balance from other sources. The Company has participated in bid for supply of power of Uttar Pradesh Power Corporation Limited and Madhya Pradesh Power Management Limited. Based on Hon’ble Supreme Court order dated August 25, 2014, MoC cancelled its earlier notification dated February 17, 2010 permitting use of surplus coal from Sasan UMPP for this project resulting in frustration of the bids due to non availability of coal. Considering the above facts, the Group has classified assets related to projects under head ‘Assets classified as held for sale’ and profit/ (loss) of CPPL has been classified as profit/ (loss) from discontinued operations.
c) The State of Rajasthan promulgated solar policy in order to promote renewable generation of electricity.RGPPL had applied in August 2012, under Rajasthan Solar Energy Policy, 2011 – to develop a 150 MW solar PV power plant in the state with an intention of supplying power to 3[rd] party/outside state consumers. Accordingly, submitted Bank Guarantee (BG) of ` 30 Cr. towards Security Deposit. However, Rajasthan Renewable Energy Corporation (RREC) delayed allotment of land by almost 2 (two) years (As per policy 2011, land was to be allotted within 60 days from RREC recommendation). Over the period of such delay in allotment of land, solar power market dynamics changed substantially. Accordingly, RGPPL has requested Government of Rajasthan for surrender of the project due to Force Majeure events beyond its control and requested for refund of the charges paid and return of Bank Guarantee. While we are pursuing GoR for allowing to surrender of the project, we have also filed petition before Rajasthan High Court, Jodhpur for allowing to surrender the project due to Force Majeure event & obtained a stay on encashment of the said BG. Considering the above facts, the Group has classified assets related to projects under head ‘Assets classified as held for sale’ and profit/ (loss) of RGPL has been classified as profit/ (loss) from discontinuing operations.
d) SMPL had signed binding agreement with JERA Power International B V for supply of module1 and Samsung C&T (South Korea) has been appointed as the EPC contractor for the Bangladesh project. SMPL has signed an Equipment Supply Contract with Samsung C&T (South Korea) on March 11, 2020 to sell one module of equipment for the Phase-1

188

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

project in Bangladesh and the same was amended between the Parties and approved by US Exim Bank vide a Side Letter dated December 03, 2020. First consignment was exported on March 03, 2021. The other equipments are currently getting exported and exports are expected to be completed by September, 2021. Considering the above facts, the Group has classified assets related to projects under head ‘Assets classified as held for sale’ and statement of profit and loss of SMPL module 1 has been classified as discontinuing operations.

e) KPPL was setting up 1,200 MW Hydro Electric Project on the river Lohit in Anjaw district in Arunachal Pradesh. Reliance Power Limited (the holding Company) has entered into Memorandum of Agreement (MoA) dated March 02, 2009 with the Government of Arunachal Pradesh for the execution of the project. The detailed project report (DPR) has been concurred by Central Electricity Authority (CEA). The project was considered by the Expert Appraisal Committee of Ministry of Environment, Forest and Climate Change (MoEF&CC) for Grant of Environment Clearance and has recommended the project for grant of Environmental Clearance. Forest land diversion Proposal has been formulated by the State Forest Department and is under examination at the State Govt. The private land acquisition proposal submitted to State Government and is in process. Defence clearance for the project is available. State level clearances / NOCs on land / water availability, fisheries etc are available. The process of identification and settlement of forest rights under “The Schedule Tribes and Other Traditional Forest Dwellers Act -2006 have been completed. Considering the above facts, the assets and liabilities have been stated at their net realizable value and statement of profit and loss of KPPL has been classified as profit /(loss) from discontinued operations.

44. Offsetting of financial assets and financial liabilities

The following table presents the derivative financial instruments that are offset as at March 31, 2021 and March 31, 2020 where as per the terms of the agreement the net position owing / receivable to a single counter party in the same currency has been offset and presented at net amount in the balance sheet.

|||in lakhs|in lakhs|
|---|---|---|---|
|Particulars|Gross amounts|Gross amount set-off
in balance sheet
Net balance presented
in balance sheet||
|As at March 31, 2021
Financial Liabilities
Derivative Liabilities
Total
Financial Assets
Derivative Assets
Total|14,252
14,252
6,978
6,978|-
-
-
-|14,252|
||||14,252|
||||6,978|
||||6,978|
|||||
|Particulars|Gross amounts|Gross amount sett-off
in balance sheet|Net balance presented
in balance sheet|
|As at March 31, 2020
Financial Liabilities
Derivative Liabilities
Total
Financial Assets
Derivative Assets
Total|8,309
8,309
7,629
7,629|39
39
680
680|8,270|
||||8,270|
||||6,949|
||||6,949|

45. Disclosure pursuant to para 44 A to 44 E of Ind AS 7 - Statement of cash flows

		`in lakhs
Particulars	Year Ended	Year Ended
	March 31,2021	March 31,2020
Long term Borrowings
Opening Balance
- Non Current	19,67,019	17,84,137
- Current	4,58,962	3,42,628
Decrease due to assignment	(14,529)	-
Short term borrowings reclassifed under long term	20,487	3,90,065
Impact of Non Cash Item
- Impact of Effective Rate of Interest	3,372	3,141
Repaid During the year/period	(2,47,650)	(1,86,700)
Foreign Exchange Adjustment	(20,683)	92,710
Closing Balance	21,66,978	24,25,981
- Non Current	16,65,997	19,67,019
- Current	5,00,981	4,58,962

189

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

		`in lakhs
Particulars	Year Ended	Year Ended
	March 31,2021	March 31,2020
Short term Borrowings
Opening Balance	4,31,122	8,93,323
Availed during the year/period	22,834	-
Short term borrowings reclassifed under long term	(40,000)	(3,87,970)
Write back of short term borrowings	(2,000)	(6,830)
Regrouping of interest on BG	-	(3,639)
Repaid during the year	(53,263)	(34,246)
Increase/ (decrease) due to assignment	20,639	(29,516)
Closing Balance	3,79,332	4,31,122
Interest Expenses
Interest Accrued-Opening Balance	1,27,638	50,790
Interest charge as per statement of Proft & Loss	2,53,860	3,06,872
Interest Included in CWIP	6,797	2,728
Changes in Fair Value
- Unwinding and EIR Adjustment	(5,189)	(5,418)
- Fair Value Adjustment	(5,952)	(928)
- Gain on Derivative assets (net)	(3,469)	(7,698)
Regrouping of Interest on BG	-	3,639
Written back of interest on ICD	(407)	-
Interest unwinding on fair valuation of NCD/ ICD	(1,563)	-
Interest assignment/ paid to lenders *	(2,01,779)	(2,22,347)
Interest Accrued-Closing Balance	1,69,936	1,27,638

Includes assignment of 14,974 lakhs (March 31, 2020 11,515 lakhs)

46. Non Controlling interest (NCI)

Set out below is summarised finanical information for each subsidiary that has non-controlling interests that are material to the Group. The amounts disclosed for each subsidiary are before eliminations and after policy difference Adjustments (Refer Note 39 and 42).

a) Summarised balance sheet

											`in lakhs
Entities	Current	Current	Net current		Non-		Non-	Net non-		Net assets	Accumulated
	assets	liabilities	assets/		current		current	current			NCI (after
			(liabilities)		assets	liabilities		assets/			elimination)
								(liabilities)
Rosa Power Supply
Company Limited
March 31, 2021	4,11,404	1,44,438	2,66,965	3,98,516		1,43,248		2,55,268		5,22,234	1,56,801
March 31, 2020	4,25,041	2,23,089	2,01,952	4,29,220		2,04,615		2,24,605		4,26,557	1,27,839
Reliance Bangladesh
LNG & Power
Limited
March 31, 2021	-	-	-		-				-	-
March 31, 2020	278	367	(89)		10,649		2,593	8,055		7,967	7,440
b) Summarised Statement of		Proft and Loss
											`in lakhs
Entities			Revenue		Proft/			Other		Total	Proft/ (Loss)
					(Loss) for		comprehensive		comprehensive		allocated to
					theyear			income		income	NCI
Rosa Power Supply Company Limited
March 31, 2021			2,93,755		75,105			(70)		75,035	22,510
March 31, 2020			2,77,158		(28,874)			(130)		(29,004)	(19,385)
Reliance Bangladesh	LNG & Power Limited
March 31, 2021				-		-		-		-	-
March 31,2020				@	(293)			-		(293)	(143)
@Amount is below rounding norms adopted by the Group

190

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

c) Summarised Statement of Cash fows
				`in lakhs
Entities	Cash fow	Cash fow	Cash fow	Net increase /
	from operating activities	from / (used in) investing	from / (used in) fnancing	(decrease) in cash and cash
		activities	activities	equivalents
Rosa Power Supply Company Limited
March 31, 2021	1,50,484	759	(1,50,626)	617
March 31, 2020	1,18,356	(6,393)	(1,11,996)	(33)
Reliance Bangladesh LNG & Power Limited
March 31, 2021	-	-	-	-
March 31, 2020	(215)	(7,390)	7,810	205

47. The figure for the previous year are re-casted / re-grouped, wherever necessary.

191

Reliance Power Limited

Share in total comprehensive Income	March 31, 2020	`in lakhs		(404,869) (29,002) (1,713) (150,513) 50,882 - (3,910) (5,596) (6,280) (14) (0) (93,533) (12,595) (0) 47 (6,433) (0) (1) (16) 21 (15,788) (1) (0) (0) 2 (0) (0) (0) (9) - -
		As % of consolidated proft or (loss)		47.69% 3.42% 0.20% 17.73% -5.99% 0.00% 0.46% 0.66% 0.74% 0.00% 0.00% 11.02% 1.48% 0.00% -0.01% 0.76% 0.00% 0.00% 0.00% 0.00% 1.86% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
	March 31, 2021	`in lakhs		7,971 52,503 (1,610) 19,026 3,414 - (4,409) (56) (5,092) (3) (0) 1,788 (10,268) (0) (4,735) (7,359) (0) (0) (13) (3) (4,696) (1) (0) (0) (240) (0) (0) (0) (7) - -
		As % of consolidated proft or (loss)		27.74% 182.75% -5.60% 66.22% 11.88% 0.00% -15.35% -0.19% -17.72% -0.01% 0.00% 6.22% -35.74% 0.00% -16.48% -25.61% 0.00% 0.00% -0.04% -0.01% -16.35% 0.00% 0.00% 0.00% -0.84% 0.00% 0.00% 0.00% -0.02% 0.00%
Share in other comprehensive Income	March 31, 2020	`in lakhs		(365,987) (130) - (26) (126) - - - - - - (1) 11 - 5 - - - - - - - - - - - - - - - -
		As % of consolidated proft or (loss)		99.93% 0.04% 0.00% 0.01% 0.03% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
	March 31, 2021	`in lakhs		2,438 (70) - 299 83 - - - - - - 5 18 - - - - - - - - - - - - - - - - - -
		As % of consolidated proft or (loss)		87.91% -2.52% 0.00% 10.78% 2.99% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.18% 0.65% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Share in proft or loss (PAT)	March 31, 2020	`in lakhs		(38,882) (28,872) (1,713) (150,487) 51,008 - (3,910) (5,596) (6,280) (14) (0) (93,532) (12,606) (0) 42 (6,433) (0) (1) (16) 21 (15,788) (1) (0) (0) 2 (0) (0) (0) (9) - -
		As % of consolidated proft or (loss)		8.06% 5.98% 0.35% 31.18% -10.57% 0.00% 0.81% 1.16% 1.30% 0.00% 0.00% 19.38% 2.61% 0.00% -0.01% 1.33% 0.00% 0.00% 0.00% 0.00% 3.27% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
	March 31, 2021	`in lakhs		5,533 75,104 (1,610) 18,727 3,331 - (4,409) (56) (5,092) (3) (0) 1,783 (10,286) (0) (4,735) (7,359) (0) (0) (13) (3) (4,696) (1) (0) (0) (240) (0) (0) (0) (7) - -
		As % of consolidated proft or (loss)		11.41% 154.89% -3.32% 38.62% 6.87% 0.00% -9.09% -0.12% -10.50% -0.01% 0.00% 3.68% -21.21% 0.00% -9.76% -15.18% 0.00% 0.00% -0.03% -0.01% -9.68% 0.00% 0.00% 0.00% -0.50% 0.00% 0.00% 0.00% -0.01% 0.00%
Net assets i.e. total assets minus total liabilities	March 31, 2020	`in lakhs		880,694 426,556 56,420 7,296 1,667,626 - (4,717) (9,166) (3,129) (16) (4) (256,024) (27,188) 1 13,135 (13,757) (51) 1,463 103 (379) (9,657) 482 1,855 865 (626) 0 355 (73) 626 -
		As % of consolidated net assets		31.95% 15.48% 2.05% 0.26% 60.50% 0.00% -0.17% -0.33% -0.11% 0.00% 0.00% -9.29% -0.99% 0.00% 0.48% -0.50% 0.00% 0.05% 0.00% -0.01% -0.35% 0.02% 0.07% 0.03% -0.02% 0.00% 0.01% 0.00% 0.02% 0.00%
	March 31, 2021	`in lakhs		888,663 522,233 54,810 26,322 1,671,040 0 (9,126) (9,222) (8,219) (19) (4) (254,235) (37,457) 0 8,400 (21,116) (51) 1,463 90 (382) (14,353) 482 1,854 865 (867) (0) 355 (73) 619 0
		As % of consolidated net assets		31.62% 18.58% 1.95% 0.94% 59.45% 0.00% -0.32% -0.33% -0.29% 0.00% 0.00% -0.09 -1.33% 0.00% 0.30% -0.75% 0.00% 0.05% 0.00% -0.01% -0.51% 0.02% 0.07% 0.03% -0.03% 0.00% 0.01% 0.00% 0.02% 0.00%
Name of Company			Parent Company :	Reliance Power Limited Indian Subsidiaries : RPSCL DSPPL VIPL SPL JIPL CAPL CPPL RCGL MPL RSRPPL SMPL RSTEPL RWPPL RCRL RNRL RGTPPL MEGL SHPPL THPPL KPPL USHPPL TPPL SPPL CAPIL RPrima ATPL AMPL RGPPL Associates RSUNPPL
SN				1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

192

Reliance Power Limited

Share in total comprehensive Income	March 31, 2020	`in lakhs		(0) (0) - (146,263) (7) (84) (119) (8,086) (3,988) (6,141) (293) (105) - (4,513)	(848,925)	424,409	(424,516)
		As % of consolidated proft or (loss)		0.00% 0.00% 17.23% 0.00% 0.01% 0.01% 0.95% 0.47% 0.72% 0.03% 0.01% 0.00% 0.53%	100.00%
	March 31, 2021	`in lakhs		1 1 - (8,229) (5) (6) (6) (151) (100) (9,609) - - - 625	28,730	16,775	45,504
		As % of consolidated proft or (loss)		0.00% 0.00% -28.64% -0.02% -0.02% -0.02% -0.53% -0.35% -33.45% 0.00% 0.00% 0.00% 2.17%	100.00%
Share in other comprehensive Income	March 31, 2020	`in lakhs		- - - - - - - - - - - - - -	(366,254)	368,886	2,632
		As % of consolidated proft or (loss)		0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%	100.00%
	March 31, 2021	`in lakhs		- - - - - - - - - - - - - -	2,773	(2,663)	110
		As % of consolidated proft or (loss)		0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%	100.00%
Share in proft or loss (PAT)	March 31, 2020	`in lakhs		(0) (0) - (146,263) (7) (84) (119) (8,086) (3,988) (6,141) (293) (105) - (4,513)	(482,670)	55,522	(427,148)
		As % of consolidated proft or (loss)		0.00% 0.00% 30.30% 0.00% 0.02% 0.02% 1.68% 0.83% 1.27% 0.06% 0.02% 0.00% 0.94%	100.00%
	March 31, 2021	`in lakhs		1 1 - (8,229) (5) (6) (6) (151) (100) (9,609) - - - 625	48,489	(3,095)	45,394
		As % of consolidated proft or (loss)		0.00% 0.00% -16.97% -0.01% -0.01% -0.01% -0.31% -0.21% -19.82% 0.00% 0.00% 0.00% 1.29%	100.00%
Net assets i.e. total assets minus total liabilities	March 31, 2020	`in lakhs		(3) (3) (8,445) 84 11,143 4,744 881 (135) (4,735) 7,967 (31) 38 12,182	2,756,374	(1,434,207)	1,322,166
		As % of consolidated net assets		0.00% 0.00% -0.31% 0.00% 0.40% 0.17% 0.03% 0.00% -0.17% 0.29% 0.00% 0.00% 0.44%	100.00%
	March 31, 2021	`in lakhs		(3) (3) -26,404 78 11,310 4,801 872 (206) (14,352) - - 42 12,456	2,810,664	(1,429,279)	1,381,385
		As % of consolidated net assets		0.00% 0.00% -0.94% 0.00% 0.40% 0.17% 0.03% -0.01% -0.51% 0.00% 0.00% 0.00% 0.44%	100.00%
Name of Company			Parent Company :	RPHOTONPL RSUNTPL Foreign Subsidiaries RNRL-Singapore PTS PTH PTA SBE BBE RFZC RBLPL RBLTL RCPCL RPN	Sub Total	Inter Company elimination and Consolidation adjustments	Grand Total
SN				31 32 33 34 35 36 37 38 39 40 41 42 43

193

Reliance Power Limited

Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted along-with Annual Audited Consolidated Financial Results -

		Statement on Impact of Audit Qualifcations for the Financial Year ended March 31, 2021	Statement on Impact of Audit Qualifcations for the Financial Year ended March 31, 2021
		[See Regulation 33 of the SEBI (LODR) (Amendment) Regulations, 2016]
I.	SN	Particulars Audited Figures	Adjusted Figures
		(as reported before	(audited fgures
		adjusting for	after adjusting for
		qualifcations)	qualifcations)
		(`in lakhs)	quoted in II(a)(i)
			(`in lakhs)
	1.	Total income 8,38,860	8,38,860
	2.	Total Expenditure (including exceptional items) 7,94,961	8,86,135
	3.	Net Proft/(Loss) after tax 45,394	(45,781)
	4.	Earnings Per Share 0.815	(2.435)
	5.	Total Assets 50,78,183	50,21,086
	6.	Total Liabilities 36,96,798	37,30,876
	7.	Net Worth 13,81,385	12,90,210
	8.	Depreciation and amortization expense 1,08,321	1,65,418
	9.	Interest expenses 2,53,859	2,87,937

II. Audit Qualification (each audit qualification separately): Details of Audit Qualification where impact is quantified by the auditor

(a) We refer note 31 of the consolidated financial results, regarding method of depreciation adopted by the Holding Company for the purpose of preparing its Consolidated Financial Results being different from the depreciation method adopted by its subsidiaries which is a departure from the requirements of Ind AS 8 “Accounting Policies, Changes in accounting estimates and errors” since selection of the method of depreciation is an accounting estimate and depreciation method once selected in the standalone financial results is not changed while preparing consolidated financial results in accordance with Ind AS 110 “Consolidated Financial Statements”. Management’s view in this regard has been set out in the aforesaid note.

Had the method of depreciation adopted by the subsidiaries of the Holding Company been considered for the purpose of preparation of Consolidated Financial Results of the Holding Company, the profit after tax in the Consolidated Financial Results for the year ended would have decreased by 42,741 lakhs and other equity and property, plant and equipment would have reduced by 42,741 lakhs and ` 57,097 lakhs respectively.

(b) We refer note 36 of the consolidated financial results regarding non provision of interest amounting to ` 34,078 lakhs for the year ended March 31, 2021 on the borrowings of a wholly owned subsidiary company Vidarbha Industries Power Limited (VIPL). VIPL has not provided for the interest for the reasons stated in the aforesaid note. The said non provision of the interest on borrowings of VIPL is not in accordance with the provisions of Ind AS 23 “Borrowing Cost” and Ind AS 1 “Presentation of Financial Statements”.

Had the interest been provided by VIPL the finance cost for the quarter and year ended March 31, 2021 would have been higher by ` 34,078 lakhs and Profit before tax of the Group for the year ended March 31, 2021 would have been lower by an equivalent amount.

Type of Audit Qualification : Qualified Opinion

Frequency of qualification : (a) Since March 31, 2019

(b) First Time

194

Reliance Power Limited

Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted along-with Annual Audited Consolidated Financial Results -

For Audit Qualification(s) where the impact is quantified by the auditor, Management’s Views:

(a) Ind AS Transition Facilitation Group (ITFG) of Ind AS implementation Committee of the Institute of the Chartered Accountants of India (the “ICAI”) has issued clarification on July 31, 2017 and has interalia made observations regarding method of estimating depreciation adopted for preparing standalone financial statements of the subsidiaries and for preparing consolidated financial statements. The Parent Company has received opinions from reputed legal and accounting firms and technical experts from the power sector stating that clarification issued by ITFG will not be applicable to it, as the Parent Company has been following different depreciation methods in subsidiaries and in Consolidated Financial Statements since inception and as required by Ind AS 101 read with Ind AS 16, has continued their respective methods of providing depreciation even under Ind AS regime. The Parent Company accordingly continued to provide depreciation in its Consolidated Financial Statements by straight line method, which is different as compared to the written down value method considered appropriate by two of its subsidiaries.
(b) The lenders of VIPL had entered into an Inter-Creditor Agreement (ICA) on July 06, 2019 for debt resolution and VIPL had subsequently submitted debt resolution plan on various occasions to its lenders for their review and approval. The proposed debt resolution plan among other proposals included a proposal for waiver of entire interest outstanding on the loan. The ICA expired on January 03, 2020. Post the expiry of ICA, the Company has been pursuing debt resolution with its lenders. The Company is confident of an early resolution including the proposal of waiver of outstanding interest to its lenders. Pending the outcome of the debt resolution, the Company has not provided interest of 34,078 lakhs for the year ended March 31, 2021 Had the Company provided the interest in the Statement of Profit and Loss, the profit before tax for the year ended March 31, 2021 would have been lower by 34,078 lakhs. The same shall be considered in subsequent period on completion of resolution with its lenders.

For Audit Qualification(s) where the impact is not quantified by the auditor:

We refer note 35 of the consolidated financial results which sets out the fact that, Vidarbha Industries Power Limited (VIPL) has incurred operating losses during the quarter and year ended March 31, 2021 as well as during the previous years, its current liabilities exceeds current assets, Power Purchase Agreement with Adani Electricity Mumbai Limited stands terminated w.e.f. December 16, 2019, its plant remaining un-operational since January 15, 2019 and one of the lenders filed an application under the provision of Insolvency and Bankruptcy Code. These events and conditions indicate material uncertainty exists that may cast a significant doubt on the ability of VIPL to continue as a going concern. However the accounts of VIPL have been prepared on a going concern for the factors stated in the aforesaid note. We however are unable to obtain sufficient and appropriate audit evidence regarding management’s use of the going concern assumption in the preparation of financial results, in view of non-provisioning of interest as explained together with the events and conditions more explained in the note no. 35 of the consolidated financial results does not adequately support the use of going concern assumption in preparation of the financial statements of VIPL.

Management’s estimation on the impact of audit qualification: Not applicable If management is unable to estimate the impact, reasons for the same:

VIPL has incurred operating losses during the year ended March 31, 2021 as well as during the previous year and its current liabilities exceed its current assets. VIPL’s ability to meet its obligation is dependent on outcome of material uncertain events, viz.: i) Civil Appeal No. CA 37 of 2021 filed and currently pending in the Hon’ble Supreme Court (SC), challenging the Ld. Appellate Tribunal for Electricity (APTEL) Judgment dated September 15, 2020, wherein APTEL has upheld the Maharashtra Electricity Regulatory Commission (MERC) Order dated December 16, 2019, relating to the notice of termination of Power Purchase Agreement (PPA). Next hearing date is awaited; ii) Civil Appeal No. CA 372 of 2017 filed by Hon’ble MERC before the Hon’ble Supreme Court (SC), challenging the Ld. Appellate Tribunal of Electricity (APTEL) Judgment dated November 3, 2016 partially setting aside the Hon’ble MERC Order dated June 20, 2016. Final hearing in CA No. 372 of 2017 is awaited. Further in light of the ratio determined in the Hon’ble SC Judgment in Civil Appeal 5399-5400 of 2016 (Energy Watchdog Vs. CERC) and Hon’ble MERC Order dated 07.03.2018 in APML vs. MSEDCL matter, VIPL has filed a revised Mid-Term Review (MTR) No. 199 of 2017 seeking full recovery of coal costs in the variable charge for the period starting from COD till date and for the future period. However, after reserving the order on January 08, 2019, Hon’ble MERC has not issued the same till date. To expedite the MTR Order, VIPL has filed an interim application in CA 372 of 2017 before the Hon’ble Supreme Court seeking direction to Hon’ble MERC for releasing the Mid-Term Review (MTR) order, which would entail recovery of coal cost by VIPL in terms of the change in law relief from MERC in its MTR petition No. 199 of 2017 and securitization of such receivables would provide with necessary liquidity to make the debt service current and support sustainable plant operations going forward. iiii) Application No. 264 of 2020 filed by one of the

195

Reliance Power Limited

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

lenders of VIPL before NCLT under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking debt resolution of VIPL, which is pending before NCLT. VIPL had filed Miscellaneous Application before NCLT for seeking stay in the matter. NCLT has dismissed the said Miscellaneous Application of VIPL on January 29, 2021. VIPL filed appeal against aforementioned NCLT order before the NCLAT and the same was dismissed on March 02, 2021. VIPL has filed the Civil appeal in SC challenging the NCLAT order which is pending. Lender’s Application filed under Section 7 of the IBC pending before NCLT is listed for hearing on June 04, 2021. VIPL has been in discussion with all its lenders for a resolution outside the Corporate Insolvency Resolution Process (CIRP). In view of the above, accounts of the VIPL have been prepared on a going concern basis.

(iii) Auditors’ Comments on above: Refer para above.

III. Signatories:

K Rajagopal Whole-time Director & CEO

Sandeep Khosla Chief Financial Officer

Bimal Julka Audit Committee Chairman

Statutory Auditors For Pathak H. D. & Associates LLP Chartered Accountants Firm’s Registration No: 107783W/W100593

Vishal D. Shah Partner Membership No: 119303 UDIN: 21119303AAAAJO9600

Place: Mumbai Date: May 07, 2021

196

Reliance Power Limited

		Reliance Power Limite
[Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014] Statement containing sailent features of fnancial statement of subsidiaries/ associates companies/ joint ventures PART “A” - Summary of Financial Information of Subsidiary Companies `in lakhs	Extent of shareholding (in %)	100 70 100 100 100 100 100 100 100 100 100 100 100 100 75 100 100 100 100 89 100 100 100 100 100 100 100 100 99.6 100 100 100 100 100 100 100
	Proposed Dividend	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
	Proft/ (Loss) after Taxation	(38,040) 75,104 18,727 (1,352) (10,190) (4,409) (56) (5,092) (3) (@) 1,784 (@) (4,735) (7,359) (@) (@) (13) (3) (4,696) (1) (@) (@) (240) (@) (@) (@) (7) (8,229) (5) 625 (6) (6) (100) (151) (9,609) -
	Provision for Taxation Debited/ Credited to Statement of Proft and Loss	(37,668) (3,579) 42,119 - - (3) (@) - - - (46) - - - - - - - - - - - - - - - - - - - - - - - - -
	Proft/ (Loss) before Taxation	(372) 78,683 (23,392) (1,352) (10,190) (4,406) (56) (5,092) (3) (@) 1,830 (@) (4,735) (7,359) (@) (@) (13) (3) (4,696) (1) (@) (@) (240) (@) (@) (@) (7) (8,229) (5) 625 (6) (6) (100) (151) (9,609) -
	Turnover *	486,663 293,753 1,182 10,630 7,343 12 - 26 7 - 12,454 - 1,692 686 - - 1 @ 1 - - - 22 - - - - - - 2,380 - - @ - - -
	Investments	3,128 1 206 3 - - - 1,950 - - - - 16,843 - - - - - - - - - - - - - - - 50 15,670 2,196 5,944 - - 440 -
	Total Liability (Non-Current + Current)	1,625,675 287,685 330,467 49,651 233,566 34,535 107,554 95,737 26 4 537,372 2 56,356 47,793 54 1 232 413 35,922 76 26 15 867 1 3 74 394 26,936 94 48,691 158 3 275 209 15,889 3
	Total Assets (Non-current + Current) except Investments	2,403,336 809,918 356,583 76,328 127,481 25,409 98,333 85,568 7 @ 283,137 2 47,913 26,677 3 1,463 322 31 21,568 557 1,880 880 @ 1 358 @ 1,013 532 122 45,477 2,762 5,368 69 1,080 1,097 45
	Reserve and Surplus	348,051 479,751 24,830 26,501 (106,371) (69,433) (9,233) (11,914) (24) (5) (258,297) (1) 8,190 (21,121) (52) 1,453 44 (403) (14,393) 478 1,843 859 (882) (5) 354 (75) 614 (216,273) (40) (4,361) (438) 354 (3,160) (5,015) (16,274) 8
	Share Capital	432,737 42,482 1,492 180 286 60,307 11 3,695 5 1 4,062 1 210 5 1 10 46 21 39 3 12 6 16 5 1 1 5 189,869 118 16,817 5,238 10,955 2,954 5,887 1,922 34
	Date from which they became subsidiaries company	07.08.2007 01.11.2006 30.08.2007 08.09.2010 29.06.2010 29.01.2008 10.09.2007 05.06.2010 08.06.2010 10.11.2010 29.07.2010 11.11.2010 14.03.2008 12.11.2010 17.01.2015 28.08.2007 10.09.2007 10.09.2007 26.09.2007 14.09.2007 19.05.2011 19.05.2011 23.04.2008 30.06.2010 30.06.2010 30.06.2010 11.08.2012 15.10.2010 15.10.2010 09.07.2010 02.08.2010 02.08.2010 04.10.2010 04.10.2010 15.05.2016 13.05.2018
	Base No.	Sasan Rosa VIPL Dhursar RSTEPL CAPL Chitrangi R- Cleangen Bharuch R-solar resrouces Samalkot R-Wind Power RCRL-Consol RNRL Geothermal MEGL Siyom Tato Kalai Urthing Telling Hydro Shangling Hydro CAPIL R-Prima Atos trading Atos mercantile Green Power RNRL Singapore
	Name of Subsidiaries	Sasan Power Limited Rosa Power Supply Company Limited Vidarbha Industries Power Limited Dhursar Solar Power Private Limited Rajasthan Sun Technique Energy Private Limited Coastal Andhra Power Limited Chitrangi Power Private Limited Reliance CleanGen Limited Moher Power Limited Reliance Solar Resources Power Private Limited Samalkot Power Limited Reliance Wind Power Private Limited Reliance Coal Resources Private Limited Reliance Natural Resources Limited Reliance Geothermal Power Private Limited Maharashtra Energy Generation Limited Siyom Hydro Power Private Limited Tato Hydro Power Private Limited Kalai Power Private Limited Urthing Sobla Hydro Power Private Limited Teling Hydro Power Private Limited Shangling Hydro Power Private Limited Coastal Andhra Power Infrastructure Limited Reliance Prima Limited Atos Trading Private Limited Atos Mercantile Private Limited Reliance Green Power Private Limited Reliance Natural Resources (Singapore) Pte Limited $ PT Sumukha Coal Services $ Reliance Power Netherlands BV $ PT Avaneesh Coal Resources $ PT Heramba Coal Resources $ PT Brayan Bintang Tiga Energi # PT Sriwijiya Bintang Tiga Energi # Reliance Power Holding FZC, Dubai ## Reliance Chittagong Power Company Limited **
	SN	1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

197

Reliance Power Limited

RPL Sun Technique Private Limited	31.03.2021 16.06.2016 5000 50000 50% There is signifcant infuence due to shareholding in the Associates Company N.A @ @ @	Represents other income also $ Reporting currency in USD # Reporting currency in IDR * Reporting currency in BDT ## Reporting currency in AED Exchange rate as on March 31, 2021 : 1 IDR = 0.0050, USD = 73.5047, AED = 20.58, BDT = 0..86347 @ amount is below the rounding off norm adopted by the Group	For and on behalf of the Board of Directors Anil D. Ambani Chairman Chhaya Virani Bimal Julka Director Vijay Kumar Sharma K. Raja Gopal Whole-time Director & CEO Sandeep Khosla Chief Financial Offcer Murli Manohar Purohit Company Secretary Place : Mumbai Date : May 07, 2021
RPL Photon Private Limited	31.03.2021 16.06.2016 5000 50000 50% There is signifcant infuence due to shareholding in the Associates Company N.A @ @ @
RPL Sun Power Provate Limited	31.03.2021 16.06.2016 5000 50000 50% There is signifcant infuence due to shareholding in the Associates Company N.A @ @ @
Name of Associates	Latest audited Balance Sheet Date Date on which the associate or Joint Venture was associated or acquired Shares of Associates or Joint Ventures held by the company on the year end No. Amount of Investment in Associates or Joint Venture Extent of Holding (in percentage) Description of how there is signifcant infuence Reason why the associate/ joint venture is not consolidated Net worth attributeable to shareholding as per latest audited Balance Sheet Proft or Loss for the year Considered in consolidation @ Considered in consolidation @
SN	1 2 3 4 5 6 7 i ii

198

If undelivered please return to : KFin Technologies Private Limited Unit: Reliance Power Limited Karvy Selenium, Tower – B, Plot No. 31 & 32, Survey No. 116/22, 115/24, 115/25 Financial District, Nanakramguda, Hyderabad 500 032 Website : www.kfintech.com Tel. no. : +91 40 6716 1500 Fax no.: +91 40 6716 1791 E-mail : [email protected], Website: www.kfintech.com

AI assistant

Reliance Power Limited — AGM Information 2021

61812_rns_2021-08-23_fbf32da0-65a7-429f-85ef-e20d039c4881.pdf

BSE Limited

Sub: Notice of 27[th] Annual General Meeting and Annual Report 2020-21

For Reliance Power Limited

Power

Padma Vibhushan

Shri Dhirubhai H. Ambani

27[th] Annual General Meeting on Tuesday, September 14, 2021 at 12.30 p.m.(IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM)

Notice

Ordinary Business:

Special Business:

4. Appointment of Smt. Chhaya Virani as an Independent Director

5. Appointment of Shri Bimal Julka as an Independent Director

6. Appointment of Shri Vijay Kumar Sharma as an Independent Director

Notice

7. Payment of remuneration to Cost Auditors for the financial year ending March 31, 2022

8. Appointment of Shri Murli Manohar Purohit as Manager

Notes:

Reliance Power Limited

Notice

14 . Instructions for attending the AGM and e-voting are as follows:

Notice

Part A - E-voting

Notice

Notice

Part B – Access to join virtual meetings (e-AGM) of the Company on KFintech system to participate in e-AGM and vote thereat.

Statement pursuant to Section 102 (1) of the Companies Act, 2013 and pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the accompanying Notice dated August 9, 2021

Item No. 3:

Item No. 4, 5 & 6: Appointment of Smt. Chhaya Virani, Shri Bimal Julka and Shri Vijay Kumar Sharma as Independent Directors

Statement pursuant to Section 102 (1) of the Companies Act, 2013 and pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the accompanying Notice dated August 9, 2021

Item No. 7: Payment of remuneration to the Cost Auditors for the financial year ending March 31, 2022

Statement pursuant to Section 102 (1) of the Companies Act, 2013 and pursuant to Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the accompanying Notice dated August 9, 2021

Item No. 8: Appointment of Shri Murli Manohar Purohit as Manager

Directors’ Report

Dear Shareowners,

Financial Results

Dividend

Business Operations

718 MW (net) Gas-based Project in Bangladesh

Impact of COVID-19 Pandemic

Directors’ Report

Management Discussion and Analysis

Resources and Liquidity

Deposits

Particulars of Loans, Guarantees or Investments

Subsidiary and Associate Companies

Financial Statements - Application of the Companies (Indian Accounting Standards) Rules, 2015

Consolidated Financial Statements

Directors

Key Managerial Personnel (KMP)

Directors’ Report

Evaluation of Directors, Board and Committees

Policy on Appointment and Remuneration for Directors, Key Managerial Personnel and Senior Management Employees

Directors’ Responsibility Statement

Contracts and Arrangements with Related Parties

Material Changes and Commitments, if any, affecting the financial position of the Company

Meetings of the Board

Directors’ Report

Audit Committee

Auditors and Auditors’ Report

Cost Auditors

Secretarial Standards

Secretarial Audit & Secretarial Compliance Report

Annual Return

Particulars of Employees and Related Disclosures

Directors’ Report

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

Corporate Governance

Whistle Blower (Vigil Mechanism)

Risk Management

Compliance with provisions of Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013

Corporate Social Responsibility

Orders, if any, passed by Regulators or Courts or Tribunals

Internal Financial Controls and their adequacy

Business Responsibility Report

General

Acknowledgements

Directors’ Report

Reliance Power Limited AGM Information 2021