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You can view the entire text of Notes to accounts of the company for the latest year

BSE: 544005ISIN: INE0QSW23016INDUSTRY: Investment Trust

BSE   ` 125.00   Open: 125.00   Today's Range 125.00
125.00
+0.00 (+ 0.00 %) Prev Close: 125.00 52 Week Range 110.00
125.00
Year End :2025-03 

5.1 The SEBI Master Circular no. SEBI/HO/DDHS-PoD-2/P/CIR/2024/44 dated May 15, 2024 issued under the SEBI InvIT Regulation requires that the 'Unit Capital' should be presented as 'Equity' in the financial statements of the Trust. Further, the SEBI lnvlT Regulation requires that 90% of the Net Distributable Cash Flows of the Trust should be distributed to the Unitholders. Any instrument which contains an obligation to mandatorily pay its holders, is a compound financial instrument under Ind AS 32 - Financial Instruments: Presentation and has to be accounted as such. However, as per the provisions of the Annexure to the Companies (Indian Accounting Standards) Rules, 2015 and considering aforesaid requirements of the SEBI InvIT Regulation, a special legislation, the 'Unit Capital' has been presented as 'Equity' in the Financial Statements.

5.2 Terms, Rights and Restrictions attached to the Units

The Trust has only one class of units. Each unit represents an undivided beneficial interest in the Trust. Each holder of unit is entitled to one vote per unit. The Unitholders have the right to receive at least 90% of the Net Distributable Cash Flows of the Trust at least once in each financial year in accordance with the SEBI InvIT Regulations. The Investment Manager approves distributions. The distributions will be in proportion to the number of units held by the unitholders. The Trust declares and pays distributions in Indian rupees. The distributions can be in the form of return on capital and miscellaneous income.

A Unitholder has no equitable or proprietary interest in the Trust Assets and is not entitled to transfer Trust Assets (or any part thereof) or any interest in the Trust Assets (or any part thereof). A Unitholder's right is limited to the right to require due administration of the Trust in accordance with the provisions of the Trust Deed and the Investment Management Agreement.

The unitholder(s) shall not have any personal liability or obligation with respect to the Trust.

II List of Additional Related Parties as per the Regulation 2(1)(zv) of the SEBI InvIT Regulations

Related Parties in terms of the SEBI lnvlT Regulations shall be related parties as defined in the Companies Act, 2013 or under Ind AS 24 and shall include, the parties to the lnvlT namely, Reliance Retail Ventures Limited (Sponsor), Reliance Industries Limited (Sponsor Group), Reliance Gas Pipeline Umited (Sponsor Group), Reliance Ethane Pipeline Limited (Sponsor Group), Axis Trustee Services Limited ("Trustee"), Infinite India Investment Management Limited ("Investment Manager"), Jio Infrastructure Management Services Limited ("Project Manager'') and their respective promoters and directors.

17 Contingent Liabilities and Commitments as at March 31, 2025 and March 31, 2024 is Nil

18 FINANCIAL INSTRUMENTS

FAIR VALUE MEASUREMENT HIERARCHY:

The financial instruments are categorized into three levels based on inputs used to arrive at fair value measurements as described below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

Level 3: Inputs which are significantly from unobservable market data

19 Financial Risk Management

The different types of risks the Trust is exposed to are market risk, credit risk and liquidity risk. The Trust takes measures to judiciously mitigate the above mentioned risks.

i) Market Risk a) Interest Rate Risk

The Trust's exposure to the risk of changes in market interest rate relates to the fixed rate debt obligations.

ii) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due causing financial loss to the Trust. Credit risk arises from Trust's activities in investments and outstanding receivables from customers.

The Trust has a prudent and conservative process for managing its credit risk arising in the course of its business activities.

iii] Liquidity Risk

Liquidity risk arises from the Trust's inability to meet its cash flow commitments on the due date. Trust's objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral requirements. Management monitors rolling forecasts of the Trust's cash flow position and ensures that the Trust is able to meet its financial obligation at all times including contingencies.

20 Segment Reporting

The Trust activities comprise of owning and investing in Infrastructure SPVs to generate cash flow for distribution to the beneficiaries. Based on guiding principles given in Ind AS 108 "Operating Segment", this activity falls within a single operating segment and accordingly the disclosures of Ind AS 108 have not separately provided.

21 Details of dues to Micro and Small Enterprises as per MSMED Act, 2006

There are no Micro and Small Enterprises as defined in the Micro and Small Enterprises Development Act 2006 to whom Trust owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Trust.

22 Put and Call Option

As per the terms of the Shareholders and Option Agreement entered between the Trust, the Investment Manager and Reliance Retail Ventures Limited (RRVL), the Trust shall be entitled (but not obligated) to require RRVL (or any person nominated by RRVL) to purchase the Trust Shares, and RRVL (or any person nominated by RRVL) shall be obligated to purchase the Trust Shares from the Trust, for an amount equal to lower of: i) ^ 100 crore; or ii) the fair market value of the Trust Shares. This instrument is hereinafter referred to as the Put Option. RRVL shall be entitled (but not obligated) to require the Trust to sell to RRVL (or any person nominated by RRVL) the Trust Shares and the Trust shall be obligated to transfer the Trust Shares to RRVL (or any person nominated by RRVL) for an amount equal to lower of: i) " 100 crore; or ii) the fair market value of the Trust Shares. This instrument is hereinafter referred to as the Call Option. In case the Put Option gets exercised the Call Option will lapse and visa versa. The Trust had obtained an independent valuer's report for the same in the year ended March 31, 2024. Considering no change in the fact pattern. the Trust estimates the fair value of the Call option and Put option to be Nil.

25 Capital management

The Trust adheres to a disciplined capital management framework which is underpinned by the following guiding principles :

i) Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements

ii) Leverage optimally in order to maximize unit holder return while maintaining strength and flexibility of the Balance Sheet.

iii) Gearing Ratio

27 ^ 0.00 in the standalone financial statements represents amounts less than " 50,000.

28 APPROVAL OF FINANCIAL STATEMENTS

The standalone financial statements were approved for issue by the Board of Directors of Investment Manager on May 22, 2025.