Reliance Infrastructure Limited Corporate Office: 3rd floor, north wing Tel: +91 22 3303 1000 Reliance Energy Centre Fax:+91 22 3303 3664 Santa Cruz (East) www.rinfra.com Mumbai 400 055 CIN : L75100MH1929PLC001530 October 30, 2017 The General Manager The Manger Corporate Relationship Department National Stock Exchange of India limited BSE Limited Plaza, 5th Floor, Plot no.C/1, G Block Phiroze Jeejeeboy Towers Bandra Kurla Complex, Bandra (E) Dalal Street, Fort Mumbai 400 051 Mumbai 400 001 NSE Scrip Symbol: RELINFRA BSE Scrip Code: 500390 Dear Sirs, Sub: Filing of Annual Report 2016-17 under Regulation 34 (1) Pursuant to Regulation 34 (1) and all other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), we enclose herewith the Annual Report for the financial year 2016-17. Kindly take the same on record and inform your members accordingly. Yours faithfully, For Reliance Infrastructure Limited Ramesh Shenoy Company Secretary Encl. :- Ass above. Annual Report 2016-17 Padma Vibhushan Shri Dhirubhai H. Ambani (28th December, 1932 - 6th July, 2002) Reliance Group - Founder and Visionary Profile Reliance Infrastructure Limited (RInfra), constituent of the Reliance Group was incorporated in 1929 and is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads, metro rail and airport in the infrastructure space and the defence sector. RInfra is also a leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution and power trading. RInfra through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; eleven road projects with total length of about 1,000 kms on build, operate and transfer (BOT) basis. RInfra along with its wholly owned subsidiary company has installed capacity of 941 MW of power; distributes power to over 69 lakh consumers in Mumbai and Delhi. RInfra subsidiary companies have commissioned three transmission projects by installing ten national grid lines, being the first set of lines commissioned in India by the private sector. RInfra also provides Engineering, Procurement and Construction (EPC) services for developing power infrastructure and road projects. The Company has entered into the defence sector. The Maharashtra Government has allotted land at Mihan near Nagpur for the development of India’s first smart city for the defence sector known as Dhirubhai Ambani Aerospace Park (DAAP). RInfra associate Reliance Defence & Engineering Ltd, has India’s largest dry dock facility to build warships and other naval vessels. Mission • To attain global best practices and become a world-class utility. • To create world-class assets and infrastructure to provide the platform for faster, consistent growth for India to become a major world economic power. • To achieve excellence in service, quality, reliability, safety and customer care. • To earn the trust and confidence of all customers and stakeholders, exceeding their expectations and make the Company a respected household name. • To work with vigour, dedication and innovation with total customer satisfaction as the ultimate goal. • To consistently achieve high growth with the highest levels of productivity. • To be a technology driven, efficient and financially sound organisation. • To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all people. • To contribute towards community development and nation building. • To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals. • To encourage ideas, talent and value systems. • To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings. This Report is printed on environment friendly paper. Reliance Infrastructure Limited Business Mix Aerospace Naval Systems and Shipyard Roads Land Systems Metros Defence equipments Airports Defence Infrastructure Defence Infrastructure Power Engineering, Procurement and Construction (EPC) Generation Infrastructure Transmission Sector Distribution 4 Reliance Infrastructure Limited Board of Directors Contents Page No. Shri Anil Dhirubhai Ambani - Chairman Shri S Seth - Vice Chairman Letter to Shareowners ................................................................06 Dr V K Chaturvedi Shri S S Kohli Notice of Annual General Meeting............................................08 Shri K Ravikumar Shri V R Galkar Directors’ Report .........................................................................11 Ms. Ryna Karani Shri Shiv Prabhat Management Discussion and Analysis.......................................32 Business Responsibility Report ...................................................53 Key Managerial Personnel Shri Lalit Jalan - Chief Executive Officer Corporate Governance Report ....................................................63 Shri Sridhar Narasimhan - Chief Financial Officer Shri Ramesh Shenoy - Company Secretary Auditors’ Certificate on Corporate Governance .........................75 Auditors Investor Information ...................................................................76 M/s. Haribhakti & Co. LLP Independent Auditors' Report on the Financial Statement ....83 M/s. Pathak H D & Associates Balance Sheet .............................................................................90 Registered Office Statement of Profit and Loss .....................................................91 H Block, 1st Floor Dhirubhai Ambani Knowledge City Statement of Changes in Equity ................................................92 Navi Mumbai 400 710. CIN : L75100MH1929PLC001530 Cash Flow Statement .................................................................95 Tel. : +91 22 3303 1000 Fax : +91 22 3303 3664 Notes to Financial Statement ....................................................97 Email : [email protected] Website: www.rinfra.com Independent Auditors’ Report on the Consolidated Financial Statement ................................................................. 178 Registrar and Transfer Agent Consolidated Balance Sheet ................................................... 184 Karvy Computershare Private Limited Karvy Selenium, Tower – B, Plot No. 31 & 32 Consolidated Statement of Profit and Loss ........................... 185 Survey No. 116/22, 115/24, 115/25 Financial District, Nanakramguda Consolidated Statement of Changes in Equity ...................... 186 Hyderabad 500 032. Website: www.karvy.com Consolidated Cash Flow Statement ........................................ 189 Investor Helpdesk Notes to Consolidated Financial Statement .......................... 191 Toll free no (India) : 1800 4250 999 Statement containing salient features of the financial Tel. no. : +91 40 6716 1500 statement of Subsidiaries/Associates/Joint Ventures ........... 302 Fax no. : +91 40 6716 1791 Email : [email protected] Attendance Slip and Proxy Form ............................................ 307 88th Annual General Meeting on Tuesday, September 26, 2017 at 12.00 noon or soon after conclusion of the AGM of Reliance Capital Limited convened on the same day, whichever is later, at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020 This Annual Report can be accessed at www.rinfra.com. 5 Reliance Infrastructure Limited Letter to Shareowners My dear fellow Shareowners It is with immense pleasure that I share with you the highlights of Industry for excellence in energy efficiency, IIPAI Power Award your Company’s performance during the financial year 2016-17. – 2016 as the best thermal power generator and Maharashtra The Company over the past decade has firmly established itself Energy Development Agency (MEDA) award for excellence in as a well diversified company with strong presence across major energy management. segments of infrastructure businesses such as roads, metro rail, DTPS has completed the 1st cycle of Perform, Achieve and airports as also engineering, procurement and construction Trade as per Energy Conservation Act, 2001 and received 4,591 (EPC) business by leveraging its core competence in building Energy Saving Certificates (ESCerts) which can be traded on and managing world-class infrastructure facilities. The Company Power Exchanges. is also a fully integrated entity in the entire value chain of generation, transmission and distribution. Power Transmission The Company has recently taken a series of strategic initiatives Our Company, being one of the leading private sector players of to pursue its vision of actively participating in the manufacture the country in the transmission sector, owns a project portfolio of defence equipment and systems. In this short span of time, it of over ` 4,600 crore. The Mumbai Power Transmission Division has entered into several strategic partnerships with leading global caters to the need of evacuation of power from DTPS and state original equipment manufacturers. This will help the Company grid to Mumbai utilities. The transmission lines connect Mumbai establish joint ventures for transfer of niche technologies and system at nine points with the state grid. Our power transmission develop state-of-the-art equipment, weapons and systems network has achieved System availability of 99.80 per cent