Merger schemes help RInfra, RPower over-ride accounting standards

BSR & Co and Pathak HD & Associates were the auditors to both RInfra and RPower, until 9th August, when BSR resigned as auditor for both the companies

Two Reliance group companies — Reliance Infrastructure (RInfra) and Reliance Power (RPower) — do not appear to be in sync with their auditors on how they treat their capital and general reserves. This, in turn, has adversely affected the profit and loss account for the two companies in some cases.

In the past four quarters, auditors to the firms have drawn attention to seven such withdrawals and deposits made to these reserves. Of these, three were adjustments or withdrawals amounting to Rs 7,346 crore.  

“We have withdrawn from the general reserve/capital reserve in accordance with the accounting treatment prescribed by various court