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Reliance Power Ltd.

BSE: 532939 Sector: Infrastructure
NSE: RPOWER ISIN Code: INE614G01033
BSE 00:00 | 24 May 7.56 -0.10
(-1.31%)
OPEN

7.69

HIGH

7.89

LOW

7.28

NSE 00:00 | 24 May 7.55 -0.10
(-1.31%)
OPEN

7.70

HIGH

7.85

LOW

7.25

OPEN 7.69
PREVIOUS CLOSE 7.66
VOLUME 10410799
52-Week high 39.25
52-Week low 4.94
P/E
Mkt Cap.(Rs cr) 2,121
Buy Price 7.51
Buy Qty 150.00
Sell Price 7.56
Sell Qty 4342.00
OPEN 7.69
CLOSE 7.66
VOLUME 10410799
52-Week high 39.25
52-Week low 4.94
P/E
Mkt Cap.(Rs cr) 2,121
Buy Price 7.51
Buy Qty 150.00
Sell Price 7.56
Sell Qty 4342.00

Reliance Power Ltd. (RPOWER) - Auditors Report

Company auditors report

To

The Members of

Reliance Power Limited

Report on the Standalone Ind AS Financial Statements

1. We have audited the accompanying standalone Ind AS financial statements of ReliancePower Limited (Rs. the Company1) which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss including Other Comprehensive Income the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as 'the standalone Ind AS f nancial statements').

Management's Responsibility for the Standalone Ind AS

Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the

Companies Act 2013 (Rs. the Act') with respect to the preparation of these standaloneInd AS f nancial statements that give a true and fair view of state of affairs profit(including other comprehensive income) cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 1 33 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS f nancial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS f nancialstatements based on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specifed under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS fnancial statements are free frommaterial misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone Ind AS fnancial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS fnancial statements whether due to fraud or error.In making those risk assessments the auditor considers internal fnancial control relevantto the Company's preparation of the standalone Ind AS fnancial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfnancial statements.

7. We believe that the audit evidence we have obtained is suffcient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS fnancial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS fnancial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its profts (including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matter

9. The comparative fnancial information of the Company for the year ended March 312017 included in these standalone Ind AS fnancial statements had been jointly audited byPrice Waterhouse Chartered Accountants and Pathak H.D. & Associates CharteredAccountants whose report dated April 13 2017 expressed an unmodifed opinion on thoseaudited standalone Ind AS fnancial statements for the year ended March 31 201 7.

Our opinion is not modifed in respect of the above matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 201 5 (Rs. the Order')issued by the Central Government in terms of Section 143(1 1) of the Act we give in'Annexure A' a statement on the matters specifed in paragraphs 3 and 4 of the Order.

11. 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 bestof 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 theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Proft and Loss the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act;

(e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 201 8 from being appointed as a director in terms of Section 164 (2) ofthe Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in 'Annexure B';

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 201 4 in our opinionand 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 31 201 8 onits financial position in its standalone Ind AS financial statements - Refer Note 4 to thestandalone Ind AS financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312018; and

iv. The disclosures in the standalone Ind AS financial statements regarding holdings aswell as dealings in specified bank notes during the period from 8 November 2016 to 30December 201 6 have not been made since they do not pertain to the f nancial year ended 31March 201 8.

For BSR & Co. LLP For Pathak H.D. & Associates
Chartered Accountants Chartered Accountants
Firm Registration Number: Firm Registration Number:
1 01 248W/W-1 00022 1 07783W
Bhavesh DhupeLia Vishal D. Shah
Partner Partner
Membership Number: 042070 Membership Number: 11 9303
Place: Mumbai Place: Mumbai
Date: April 1 9 201 8 Date: April 1 9 201 8

Annexure A to Independent Auditors' Report

Referred to in paragraph 10 of the Independent Auditors' Report of even date to theMembers of Reliance Power Limited on the standalone Ind AS financial statements as of andfor the year ended March 31 2018

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assetsby which all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program a portion ofthe fixed assets has been physically verified by the Management during the year and nomaterial discrepancies between the book records and the physical inventory have beennoticed.

(c) According to the information and explanations given to us and records examined byus the title deeds of freehold land are in the name of erstwhile company i.e. RelianceClean Power Limited which has merged with the Company under Section 391 to 394 of theCompanies Act 1956 pursuant to the scheme of amalgamation approved by Honorable HighCourt with an appointed date of April 1 2012.

ii. The Company does not hold any inventory. Therefore 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 theCompany has not granted any loans secured or unsecured to any company firm limitedliability partnership or other party covered in the register maintained under Section 189of the Act. Accordingly the provisions stated in paragraph 3(iii)(a)(b) & (c) of theOrder are not applicable.

iv. Based on the information and explanations given to us in respect of loansinvestments guarantees and securities the Company has complied with the provisions ofSections 1 85 and 1 86 of the Act to the extent applicable.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Sections 73 to76 of the Act and the Rules framed there under.

vi. We have broadly reviewed the books of account maintained by the Company in respectof products where the maintenance of cost records has been specified by the CentralGovernment under sub-section (1) of Section 148 of the Act and the rules framed thereunder and we are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues in respect of provident fund and service tax though therehas been a slight delay in a few cases and is regular in depositing undisputed statutorydues including employees' state insurance income tax service tax goods and servicetax cess and other material statutory dues as applicable with the appropriateauthorities. There are no undisputed amounts payable in respect of such applicablestatutory dues as at March 31 201 8 for a period of more than six months from the datethey became payable. As explained to us the Company did not have any dues on account ofvalue added tax sales tax duty of customs and duty of excise.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax service tax goods and servicetax which have not been deposited on account of any dispute.

viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution or bank or dues to debenture holders. The Companydid not have any loans or borrowings from Government during the year.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer further public offerduring the year under audit. The Company has raised moneys through debt instruments andterm loans during the year which on an overall basis have been applied for the purposefor which they were raised.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

xi. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the provisions ofSection 1 97 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and accordingly the provisions of the clause 3(xii) of theOrder are not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions entered into by the Company withthe related parties are in compliance with Sections 1 77 and 1 88 of the Act whereapplicable. The details of related party transactions as required under Ind AS 24 RelatedParty Disclosures specified under Section 133 of the Act have been disclosed in thestandalone Ind AS financial statements.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence the provisions ofClause 3(xiv) of the Order are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected to them. Accordingly the provisions of Clause 3(xv) of theOrder are not applicable to the Company.

xvi. The Company as legally advised is not required to be registered under Section45-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. (Also refer note 7 of the standalone IndAS financial statement)

For BSR & Co. LLP For Pathak H.D. & Associates
Chartered Accountants Chartered Accountants
Firm Registration Number: Firm Registration Number:
1 01 248W/W-1 00022 1 07783W
Bhavesh DhupeLia Vishal D. Shah
Partner Partner
Membership Number: 042070 Membership Number: 11 9303
Place: Mumbai Place: Mumbai
Date: April 1 9 201 8 Date: April 1 9 201 8

[Annexure to the Independent Auditor's Report referred to in paragraph"11(f)" under the heading "Report on other legal and regulatoryrequirements" of our report of even date on the Standalone Ind AS financialstatements of Reliance Power Limited for year ended March 31 2018.]

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 201 3 ("the Act")

1. We have audited the internal financial controls over financial reporting of ReliancePower Limited ("the Company") as of March 31 201 8 in conjunction with ouraudit of the standalone Ind AS f nancial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal f nancial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable f nancial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal f nancialcontrols over f nancial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note issued by the ICAI and the Standards on Auditing issued by ICAI anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal f nancial controlsover f nancial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over f nancialreporting and their operating effectiveness.

4. Our audit of internal financial controls over financial reporting included obtainingan understanding of internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover f nancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control over fnancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the f nancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over fnancial reporting and such internal f nancial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For BSR & Co. LLP For Pathak H.D. & Associates
Chartered Accountants Chartered Accountants
Firm Registration Number: Firm Registration Number:
1 01 248W/W-1 00022 1 07783W
Bhavesh DhupeLia Vishal D. Shah
Partner Partner
Membership Number: 042070 Membership Number: 11 9303
Place: Mumbai Place: Mumbai
Date: April 1 9 201 8 Date: April 1 9 201 8