We have audited the standalone financial statements ofReliance Power Limited (“the Company”), which comprise theStandalone Balance Sheet as at March 31,2026, the StandaloneStatement of Profit and Loss (including Other ComprehensiveIncome), the Standalone Statement of Cash Flows and theStandalone Statement of Changes in Equity for the year thenended, and notes to the standalone financial statementsincluding a summary of material accounting policies and otherexplanatory information (“hereinafter referred to as “standalonefinancial statements”).
In our opinion and to the best of our information and according tothe explanations given to us, the aforesaid standalone financialstatements give the information required by the Companies Act,2013 (“the Act”) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules, 2015, as amended, (“IndAS”) and other accounting principles generally accepted in India,of the state of affairs of the Company as at March 31,2026, andits profit and other comprehensive loss, its cash flows and thechanges in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those SAsare further described in the Auditor’s Responsibility for the Auditof the Standalone Financial Statements section of our report. Weare independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India(ICAI) together with the ethical requirements that are relevantto our audit of the standalone financial statements under theprovisions of the Act and the Rules made thereunder, and wehave fulfilled our other ethical responsibilities in accordancewith these requirements and the ICAI’s Code of Ethics. Webelieve that the audit evidence obtained by us is sufficientand appropriate to provide a basis for our audit opinion on thestandalone financial statements.
Material Uncertainty related to Going Concern
We draw attention to Note 28 of the standalone financialstatements wherein the lender of Samalkot Power Limited
(SMPL), a wholly owned subsidiary of the Company, has invokedcorporate guarantee against the Company and has demandedpayment of the dues which are overdue from the Company.Further, the lender of SMPL has initiated the CorporateInsolvency Resolution Process against the Company undersection 7 of the Insolvency and Bankruptcy Code, 2016. Theevents and conditions indicate that a material uncertainty existsthat may cast a significant doubt on the Company’s ability tocontinue as a going concern. However, the standalone financialstatements of the Company have been prepared as a goingconcern for the reason stated in the aforesaid note.
Our opinion on the standalone financial statements is notmodified in respect of this matter.
Emphasis of Matters
(a) We draw attention to Note 33(a) of the standalone financialstatements which describes the ongoing proceedingsinitiated by the Directorate of Enforcement (ED) underPrevention of Money Laundering Act, 2002. As stated inthe said note, during the quarter ended December 31,2025, the ED has filed a Supplementary ProsecutionComplaint against the Company, Rosa Power SupplyCompany Limited, Reliance NU BESS Limited and certainindividuals in connection with the fake bank guaranteesubmitted to Solar Energy Corporation of India (SECI). EDhas arrested former Executive Director and Chief FinancialOfficer of the Company under section 19 of the Preventionof Money Laundering Act, 2002. As the matter is currentlybeing investigated by ED and is sub judice, the outcomeof the proceedings is presently uncertain and cannot bedetermined at this stage.
(b) We draw attention to Note 33(b) of the standalone financialstatements which describes the ongoing proceedingsinitiated by the Directorate of Enforcement (ED) underPrevention of Money Laundering Act, 2002. As stated in thesaid note, a search operation was carried out by the ED atthe Company’s premises in month of July 2025. Further EDhas provisionally attached certain assets of the Companyand of Reliance Natural Resources Limited (wholly ownedsubsidiary of the Company), which has been furtherextended for a period of 365 days by the AdjudicatingAuthority. The outcome of the proceedings is presentlyuncertain and cannot be determined at this stage.
(c) We draw attention to Note 35 of the standalone financialstatements wherein during the year ended March 31,2026,forensic auditor has been appointed by the Securities andExchange Board of India in relation to alleged violationsof Securities and Exchange Board of India Act, 1992,Securities Contract (Regulations) Act, 1956 and CompaniesAct, 2013. As the audit is presently ongoing the outcome ofthe same cannot be determined at this stage.
Our opinion on the standalone financial Statements is notmodified in respect of above matters.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of the standalonefinancial statements of the current year. These matters wereaddressed in the context of our audit of the standalone financialstatements as a whole, and in forming our opinion thereonand we do not provide a separate opinion on these matters.In addition to matter described in material uncertainty relatedto going concern section of this report, we have determinedthe matters described below to be the key audit matters to becommunicated in our report.
The Key Audit Matters
How the matter was addressed in our audit
Investments [including Perpetual Inter Corporate Deposit (ICDs)] - evaluation of fair value of investments in Rosa Power
Supply Company Limited (RPSCL), Sasan Power Limited (SPL) and Dhursar Solar Power Private Limited (DSPPL)
The Company has investments in subsidiaries of RPSCL, SPL
Besides obtaining an understanding of management’s
and DSPPL. These investments (including perpetual ICDs) are
processes and controls with regard to testing the impairment
recognised at fair value through other comprehensive income.
of investment in unquoted equity, preference instruments
Determination of fair value is subject to a significant level of
and perpetual ICDs in subsidiaries, our procedures
judgment. Therefore, there is a risk that the value of investmentsmay be misstated. Refer to note 3.2(a) - “Investments” of the
included the following:
standalone financial statements.
- Perused fair valuation reports of significant investmentsobtained from an independent external valuation expertengaged by the Company.
- Evaluated the appropriateness of the Company’sassumptions with comparable benchmarks in relation to keyinputs such as long-term growth rates and discount rates;
- Assessed the appropriateness of the forecast cash flowswithin the budgeted period based on our understandingof the business;
- Considered historical forecasting accuracy, by comparingpreviously forecasted cash flows to actual results achieved;
- Evaluated the appropriateness of the related disclosures inNote 3.2(a) of the standalone financial statements.
Information Other than the Standalone FinancialStatements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the otherinformation. The other information comprises the informationincluded in Company’s annual report, but does not include thestandalone financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does notcover the other information and we do not express any form ofassurance conclusion thereon. In connection with our audit of thestandalone financial statements, our responsibility is to read theother information and, in doing so, consider whether the otherinformation is materially inconsistent with the standalone financial
statements or our knowledge obtained during the course of ouraudit or otherwise appears to be materially misstated. If, basedon the work we have performed, we conclude that there is amaterial misstatement of this other information; we are requiredto report that fact. We have nothing to report in this regard.
Management’s Responsibility for the StandaloneFinancial Statements
The Company’s management and Board of Directors areresponsible for the matters stated in section 134(5) of the Actwith respect to the preparation of these standalone financialstatements that give a true and fair view of the standalonefinancial position, standalone financial performance, including
other comprehensive income/(loss), cash flows and changes inequity of the Company in accordance with the Ind AS specifiedunder section 133 of the Act and other accounting principlesgenerally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonableand prudent; and design, implementation and maintenanceof adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of theaccounting records, relevant to the preparation and presentationof the standalone financial statements that give a true and fairview and are free from material misstatement, whether due tofraud or error.
In preparing the standalone financial statements, managementand Board of Directors are responsible for assessing theCompany’s ability to continue as a going concern, disclosing,as applicable, matters related to going concern and using thegoing concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations, or hasno realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany’s financial reporting process.
Auditor’s Responsibility for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee thatan audit conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influencethe economic decisions of users taken on the basis of thesestandalone financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement ofthe standalone financial statements, whether due to fraudor error, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controlrelevant to the audit in order to design audit proceduresthat are appropriate in the circumstances. Under section143(3)(i) of the Act, we are also responsible for expressingour opinion on whether the Company has adequate internalfinancial controls with reference to standalone financialstatements in place and the operating effectivenessof such controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by the management.
• Conclude on the appropriateness of Management’s andBoard of Directors use of the going concern basis ofaccounting and, based on the audit evidence obtained,whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are requiredto draw attention in our auditor’s report to the relateddisclosures in the standalone financial statements or, ifsuch disclosures are inadequate, to modify our opinion.Our conclusions are based on the audit evidence obtainedup to the date of our auditor’s report. However, futureevents or conditions may cause the Company to cease tocontinue as a going concern.
• Evaluate the overall presentation, structure and contentof the standalone financial statements, including thedisclosures, and whether the standalone financialstatements represent the underlying transactions andevents in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that, individually or in aggregate, makesit probable that the economic decisions of a reasonablyknowledgeable user of the standalone financial statementsmay be influenced. We consider quantitative materiality andqualitative factors (i) in planning the scope of our audit workand in evaluating the results of our work; and (ii) to evaluatethe effect of any identified misstatements in the standalonefinancial statements.
We communicate with those charged with governance regarding,among other matters, the planned scope and timing of theaudit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statementthat we have complied with relevant ethical requirementsregarding independence, and to communicate with themall relationships and other matters that may reasonably bethought to bear on our independence, and where applicable,related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statementsof the current year and are therefore the key audit matters. Wedescribe these matters in our auditors’ report unless law orregulation precludes public disclosure about the matter or when,in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverseconsequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure
A” a statement on the matters specified in paragraphs 3
and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information andexplanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.
b) In our opinion, except for matter stated in paragraph2(j)(vi) below on reporting under Rule 11(g) of theCompanies (Audit and Auditors) Rules, 2014 (asamended), proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those books.
c) The Standalone Balance Sheet, the StandaloneStatement of Profit and Loss (including OtherComprehensive Income), the Standalone Statementof Cash Flows and the Standalone Statement ofChanges in Equity dealt with by this Report are inagreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financialstatements comply with the Ind AS specified underSection 133 of the Act read with relevant rulesmade thereunder.
e) On the basis of the written representations receivedfrom the directors as on March 31, 2026 takenon record by the Board of Directors, none of thedirectors is disqualified as on March 31, 2026 frombeing appointed as a director in terms of Section164(2) of the Act.
f) The going concern matter described in materialuncertainty related to going concern paragraphabove, in our opinion, may have an adverse effect onthe functioning of the Company.
g) The reservation relating to the maintenance ofaccounts and other matters connected therewith areas stated in paragraph 2(b) above on reporting under
section 143(3)(b) of the Act and paragraph 2(j)(vi)below on reporting under Rule 11(g) of the Companies(Audit and Auditors) Rules, 2014 (as amended).
h) With respect to the adequacy of the internal financialcontrols with reference to standalone financialstatements and the operating effectiveness of suchcontrols, refer to our separate Report in “Annexure B”.
i) With respect to the other matters to be included in theAuditor’s Report in accordance with the requirementsof section 197(16) of the Act, as amended, in ouropinion and to the best of our information andaccording to the explanations given to us, theremuneration paid by the Company to its directorsduring the year is in accordance with the provisions ofsection 197 of the Act.
j) With respect to the other matters to be includedin the Auditor’s Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules,2014, as amended, in our opinion and to thebest of our information and according to theexplanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial position in itsstandalone financial statements;
ii. The Company did not have any long-termcontracts including derivative contracts for whichthere were any material foreseeable losses;
iii. There has been no delay in transferring amounts,required to be transferred, to the InvestorEducation and Protection Fund by the Company;
iv. (a) The management has represented to us that, tothe best of it’s knowledge and belief, no fundshave been advanced or loaned or invested(either from borrowed funds or share premiumor any other sources or kind of funds) by theCompany to or in any other person or entity,including foreign entities (“Intermediaries”),with the understanding, whether recordedin writing or otherwise, that the Intermediaryshall, whether, directly or indirectly lend orinvest in other persons or entities identified inany manner whatsoever by or on behalf of theCompany (“Ultimate Beneficiaries”) or provideany guarantee, security or the like on behalf ofthe Ultimate Beneficiaries;
(b) The management has represented to us that, tothe best of it’s knowledge and belief, no fundshave been received by the Company fromany person or entity, including foreign entities(“Funding Parties”), with the understanding,
whether recorded in writing or otherwise,that the Company shall, whether, directly orindirectly, lend or invest in other persons orentities identified in any manner whatsoeverby or on behalf of the Funding Party (“UltimateBeneficiaries”) or provide any guarantee,security or the like on behalf of the UltimateBeneficiaries; and
(c) Based on our audit procedure that has beenconsidered reasonable and appropriate inthe circumstances, nothing has come to ournotice that has caused us to believe that therepresentations under sub-clause (a) and (b)contain any material misstatement.
v. The Company has not declared or paid any dividendduring the year.
vi. Based on our examination, which included test check,the Company has used an accounting Softwarefor maintaining its books of account for the yearended March 31, 2026 which have a feature ofrecording audit trail (edit log) facility and the samehas operated throughout the year for all relevanttransactions recorded in software at the applicationlevel, further audit trail has been enabled at thedatabase level except at Data Definition Language &Data Manipulation Language to log any direct datachanges to the database in accounting software SAPfor the year ended March 31,2026.
Further, during the course of audit, where audit trail (edit log)facility was enabled and operated for the accounting software,we did not come across any instance of the audit trail featurebeing tampered with. Additionally, the audit trail has beenpreserved by the Company as per the statutory requirements forrecord retention except for the database level which has beenenabled from May 25, 2024.
For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration No. 107783W/W100593
Jigar T. Shah
Partner
Membership No. 161851UDIN: 26161851DQYHWF3390
Date: May 21,2026Place: Mumbai