Consolidated Financial results -2013-14

Notes:

1. The Board has recommended dividend of Rs 7.50 per equity share for the year 2013-14.

2. During the current quarter, the Parent Company has restored its holding in Reliance Cement Company Private Limited (RCCPL) to 100%, which was diluted to 19% during the quarter ended September 30, 2013. However for the purpose of consolidation as on March 31, 2014, RCCPL has been considered as wholly owned subsidiary for the entire year as if no dilution had ever happened.

Towards the end of the quarter ended September 30, 2013, the Parent Company had diluted its holding in SU Toll Road Private Limited, TD Toll Road Private Limited and TK Toll Road Private Limited each from 100% to 49% and in the two joint ventures, BSES Rajdhani Power Limited and BSES Yamuna Power Limited from 49% to 28.82%. Certain requisite approvals in respect of the same are awaited and the management expects to receive them in due course. In view of above dilution, the figures of the current quarter and year are not comparable with the figures for the corresponding periods.

3. a) The Group has opted for amortising the foreign exchange fluctuation gain / (loss) on the long term foreign currency monetary items over the balance life of such items. Accordingly, the Group has carried forward unamortised portion of net gain of Rs 238.48 crore to "Foreign Currency Monetary Items Translation Difference Account" as on March 31, 2014.

b) Pursuant to the option exercised under the Scheme of Amalgamation of Reliance Infraprojects Limited with the Parent Company sanctioned by the Hon'ble High Court of Judicature at Bombay, net foreign exchange losses including losses of derivative instruments of Rs 51.20 crore (including ` 89.99 crore attributable to finance cost) for the quarter ended March 31, 2014 and Rs 312.16 crore (including Rs 361.32 crore attributable to finance cost) for the year ended March 31, 2014 has been debited to Consolidated Statement of Profit and Loss and an equivalent amount has been withdrawn from General Reserve. Had the Scheme not prescribed this treatment, the profit before tax for the quarter and year ended March 31, 2014 would have been lower by Rs 51.20 crore and Rs 312.16 crore respectively. The treatment prescribed under the Scheme overrides the relevant provision of Accounting Standard 5 (AS-5) 'Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies', which has been referred to by the Auditors in their report.

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

As per the terms of the Concession Agreement, DMRC is now liable to pay DAMEPL a Termination Payment, which is estimated at Rs 2,823 crore, as the termination has arisen owing to DMRC's Event of Default. The matter has been referred to arbitration and the process for the same has already begun. Pending final outcome of the arbitration, the Parent Company continues to fund the statutory and other obligations of DAMEPL post take over by DMRC and accordingly has funded Rs 28.10 crore in the current quarter and Rs 275.50 crore upto March 31, 2014. As legally advised, the claims for the Termination Payment are considered fully enforceable and the Parent Company is confident of recovering its entire investment of Rs 1,450.20 crore in DAMEPL as at March 31, 2014. This matter has been referred to by the Auditors in their report.

5. Financial statements of RInfra ESOS Trust as at March 31, 2014 has been consolidated with Standalone Financial Results of the Parent Company in terms of SEBI (ESOS and ESPS) Guidelines, 1999 and recent opinion of the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (the ICAI). Consequently, the paid up share capital and securities premium of the Parent Company is net of, Rs 0.45 crore and Rs 36.40 crore respectively being the value of 4,50,000 equity shares held by the trust.

6. The Hon'ble High Court of Judicature at Bombay vide its Order dated April 25, 2014 has sanctioned the Scheme of Amalgamation of Reliance Cement Works Private Limited, a wholly owned subsidiary with Western Region Transmission (Maharashtra) Private Limited, another wholly owned subsidiary, appointed date being April 1, 2013. Accordingly it has no impact on the financial results of the current quarter and year ended March 31, 2014.

7. There were no exceptional and extraordinary items during the quarter and year ended March 31, 2014. However there was an exceptional profit of Rs 379.12 crore (pre tax) pertaining to profit on sale of shares of Reliance Power Limited and Rs 3.68 crore (pre tax) pertaining to profit on sale of shares of Noida Global SEZ Private Limited for the corresponding year ended March 31, 2013. The additional disclosure of figures for "profit after tax before exceptional items (net of tax)" has been made under serial number 13 of consolidated results for the purpose of comparison only.

8. During the quarter, BSES Kerala Power Limited, a wholly owned subsidiary of the Parent Company, revalued its freehold land, building and plant and machinery located near Kochi in Kerala w.e.f April 1, 2013 and an incremental value on revaluation amounting to Rs 367.56 crore has been credited to Revaluation Reserve. Consequent to revaluation, there is an additional charge of depreciation of Rs 30.05 crore for the quarter and year ended March 31, 2014 and equivalent amount has been withdrawn from the Revaluation Reserve, which has no impact on the profit for the current quarter and the year.

9. Unrealised gains amounting to Rs 133.69 crore during the year ended March 31, 2014, pertaining to Engineering Procurement and Construction contracts entered into with associate companies, have not been eliminated as prescribed by a Scheme of Amalgamation between Reliance Bhavnagar Power Private Limited and Reliance Jamnagar Power Private Limited and Reliance Infrastructure Engineers Private Limited with the Parent Company sanctioned by the Hon'ble High Court of Judicature at Bombay in February 2013. The Parent Company considers that the prescribed accounting treatment leads to a more accurate reflection of the results of the working of the Parent Company. Had the Scheme not prescribed the above treatment the Profit after tax and carrying cost of associate would have been lower by Rs 133.69 crore respectively. This treatment overrides the relevant provisions of Accounting Standard 23 (AS -23) 'Accounting for Investments in Associates in Consolidated Financial Statements", which has been referred to by the Auditors in their report.

10. The Company has opted to publish consolidated financial results. Standalone financial results, for the quarter and year ended March 31, 2014 can be viewed on the websites of the Company, National Stock Exchange of India Limited and Bombay Stock Exchange Limited at www.rinfra.com, www.nseindia.com, www.bseindia.com respectively. Key standalone financial information is given below:

(Rs crore)

11. After review by the Audit Committee, the Board of Directors of the Company has approved the consolidated financial results at their meeting held on May 19, 2014.

12. Figures for the quarter ended March 31, 2014 and March 31, 2013 are the balancing figures between the audited figures in respect of the full financial year and the published figures up to the third quarter of the relevant financial year.

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

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: May 19, 2014 Chairman