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NOTES TO ACCOUNTS

Reliance Industrial InfraStructure Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 442.96 Cr. P/BV 1.31 Book Value (₹) 224.23
52 Week High/Low (₹) 497/261 FV/ML 10/1 P/E(X) 56.86
Bookclosure 04/07/2018 EPS (₹) 5.16 Div Yield (%) 1.02
Year End :2018-03 

A. CORPORATE INFORMATION

Reliance Industrial Infrastructure Limited ("the Company") is a listed entity incorporated in India, having its registered office and principal place of business at NKM International House, 5th Floor, 178 Backbay Reclamation, Behind LIC Yogakshema Building, Babubhai Chinai Road, Mumbai - 400 020, India.

The Company is mainly engaged in "Infrastructure Activity" catering to Indian Customers.

11.3 Rights, preferences and restrictions attached to shares:

The Equity Shares in the Company rank pari passu in all respects including voting rights and entitlement of dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on Plan assets and the Company's policy for Plan Assets Management.

VII. The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2017-18.

VIII. Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade ,expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. The result of Sensitivity analysis is given below:

These plans typically expose the Group to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary Risk. Investment Risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest Risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary Risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

2. Corporate Social Responsibility (CSR)

a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs. 43.56 lakh (Previous Year Rs.52.09 lakh)

b) Expenditure related to Corporate Social Responsibility is Rs.70 Lakh (Previous Year Rs.70 lakh ).

(ii) General description of lease terms:

a) Assets were generally given on lease for the period of five years, which has been completed in the Current financial year.

b) Lease rentals are charged on the basis of agreed rate of interest.

3. The Income Tax Assessments of the Company have been completed up to Assessment Year 2015-16. There is no contingent liability pertaining to Income Tax.

4. Estimated amount of contracts remaining to be executed on capital account is Rs.NIL (Previous Year Rs.NIL) and not provided for (net of advances).

5. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders. The company manages its capital structure and makes adjustment in light of changes in business condition. The overall strategy remains unchanged as compared to last year.

Net Gearing Ratio

There is no Debt in the Company as on 31.03.2018 and 31.03.2017. Thus, Net Gearing Ratio is NIL as on 31.03.2018 and 31.03.2017.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs based on unobservable market data.

Valuation methodology

All financial Instruments are initially recognised and subsequently re-measured at fair value as described below :

a) The fair value of investments in quoted Equity Shares, Bonds and Mutual Funds is measured at quoted price or NAV.

b) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

B. Financial Risk management

(i) Liquidity Risk

Liquidity risk is the risk that suitable sources of funding for the Company's business activities may not be available. 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, so that the Company is not forced to obtain funds at higher rates. The Company monitors rolling forecasts of the Company's cash flow position and ensure that the Company is able to meet its financial obligation at all times including contingencies.

(ii) Credit Risk

Credit risk is the risk that a customer or counter party to a financial instrument will fail to perform or pay amounts due causing financial loss to the Company. It arises from cash and cash equivalents, derivative financial instruments, deposits from financial institutions and principally from credit exposures to customers relating to outstanding receivables. The Company deals with highly rated counter parties.

6. The Company is mainly engaged in 'Infrastructure Activity' catering to Indian customers. All the activities of the Company revolve around this main business. Accordingly, the Company has only one identifiable segment reportable under Ind AS 108 "Operating Segment". The Executive Director (the 'Chief Operational Decision Maker as defined in IND AS 108 - Operating Segments) monitors the operating results of the entity's business for the purpose of making decisions about resource allocation and performance assessment. Revenue of Rs.64 38.35 lakh ( Previous Year Rs.70 50.84 lakh) arose from Sale of Services to Reliance Industries Limited (Entity exercising significant influence, the largest customer), Revenue of Rs.19 24.43 lakh ( Previous Year Rs.19 66.77 lakh ) arose from Sale of Services to Reliance Corporate IT Park Limited. No other single customer contributed 10% or more to the Company's revenue for both FY 2017-18 and FY 2016-17.

7. DETAILS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED DURING THE YEAR COVERED UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013.

i) Loans given Rs.NIL (Previous Year Rs.NIL)

ii) Investments made - Refer Note 2 - Investments - Non-Current (Previous Year Rs.NIL)

iii) Guarantees given and Securities provided by the Company in respect of loan Rs.NIL (Previous Year Rs.NIL)

8. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended payment of dividend of Rs.3.50 per fully paid up equity share of Rs.10/- each, aggregating Rs.6 37 lakh, including Rs.1 09 lakh dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on 31st March, 2018, subject to members approval at the ensuing 30th Annual General Meeting.

9. The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable,

10. APPROVAL OF FINANCIAL STATEMENTS

The Financial Statements were approved for issue by the Board of Directors at its meeting held on 12th April, 2018.

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