We have audited the accompanying standalone financial statements of
RELIANCE INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2016, the Profit and Loss Statement and the Cash
Flow Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including Accounting Standards prescribed
under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the standalone financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the standalone financial statements
that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's Board
of Directors, as well as evaluating the overall presentation of the
standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date.
The standalone financial statements and other financial information
include the Company's proportionate share in jointly controlled assets
of Rs, 1,055 crore, liabilities of Rs, 95 crore, expenditure of Rs, 462
crore and the elements making up the Cash Flow Statement and related
disclosures in respect of an unincorporated joint venture which is
based on statements from the operator and certified by the management.
Our opinion is not qualified / modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
c) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the
directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as a director in terms of Section 164 (2) of the
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A".
g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
32.2 (d) (e) and Note 33 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company except for a sum of Rs, 17 crore, which are held in abeyance
due to pending legal cases.
2. As required by the Companies (Auditor's Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 2, under 'Report on Other Legal and
Regulatory Requirements' section of our Report of even date)
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
c) As per the information and explanations provided to us, title deeds
of immovable properties are generally in the name of the Company except
in case of properties acquired by entities that have since been
amalgamated with the Company and except in fourteen cases of leasehold
land, aggregating Rs. 317 crore (refer note 10.1 to the financial
statements) in respect of which lease deeds are pending execution. We
verified the title deeds for immovable properties acquired during the
course of the year and in respect of other properties, the same is
ii. In our opinion, the inventories have been physically verified
during the year by the Management at reasonable intervals and as
explained to us no material discrepancies were noticed on physical
iii. In respect of the loans, secured or unsecured, granted by the
Company to companies, firms, Limited Liability Partnerships or other
parties covered in the register maintained under Section 189 of the
Companies Act, 2013:
a) In our opinion and according to the information given to us, the
terms and conditions of the loans given by the Company are prima facie,
not prejudicial to the interest of the Company.
b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments of principal amounts and /or receipts of
interest have been regular as per stipulations.
c) There are no overdue amounts as at the year-end in respect of both
principal and interest.
iv. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans,
making investments and providing guarantees and securities.
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the Order is not applicable
to the Company.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section 148(1) of the
Companies Act, 2013 and are of the opinion that, prima facie, the
prescribed accounts and cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
vii. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and
other material statutory dues have been generally regularly deposited
with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2016 for a period
of more than six months from the date of becoming payable.
b) Details of dues of Income Tax, Sales Tax, Service Tax, Customs Duty,
Excise Duty and Value Added Tax which have not been deposited as on
March 31, 2016 on account of disputes are given below:
Sr. Name of the Nature of Amount
No Statute Dues (Rs. in crore)
1. Central Excise
Excise Duty 15
Act,1944 and Service
2. Central Sales
Sales Tax Tax/ 1,207
Act,1956 VAT and
Sales Tax Tax
Act of 647
3. Customs Custom 20
Act, 1962 Duty
Name of the Statute Period to which the Forum where
amount relates dispute is pending
Act, 1944 Commissioner
Various Years from of Central Excise
1990-91 to 2006-07 (Appeals)
Various Years from and Service
1991-92 to 2012-13 Tax Appellate Tribunal
Various Years from High Court
2006-07 to 2009-10
Central Sales Tax Joint/Deputy
Act, 1956 Various Years from Commissioner/
1992-93 to 2009-10 Commissioner
Various Years from Appellate
1983-84 to 2008-09 Tribunal
Various Years from High Court
1994-95 to 2008-09
Various Years from Supreme Court
2000-01 to 2008-09
Customs Act, 1962 2007-08 Customs, Excise and
Service Tax Appellate
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of loans or
borrowings to financial institutions, banks and Government and dues to
ix. In our opinion and according to the information and explanations
given to us, monies raised by way of debt instruments and the term
loans during the year have been applied by the Company for the purposes
for which they were raised.
x. In our opinion and according to the information and explanations
given to us, no material fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations
given to us, the Company has paid / provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
xii. The Company is not a Nidhi Company and hence reporting under
clause (xii) of Paragraph 3 of the Order is not applicable.
xiii. In our opinion and according to the information and explanations
given to us the Company's transactions with its related party are in
compliance with Sections 177 and 188 of the Companies Act, 2013, where
applicable, and details of related party transactions have been
disclosed in the financial statements etc. as required by the
applicable accounting standards.
xiv. During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of Paragraph 3 of the
Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, during the year, the Company has not entered into any
non-cash transactions with its directors or persons connected with him
and hence reporting under clause (xv) of Paragraph 3 of the Order is
not applicable to the Company
xvi. In our opinion and according to information and explanations
provided to us, the Company is not required to be registered under
section 45-IA of the Reserve Bank of India Act, 1934.
& Shah For Deloitte Haskins
& Sells LLP For Rajendra & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
No. 101720W) (Registration
No. 117366W/ W-100018) (Registration
Rajesh D. Chaturvedi A. B. Jani A. R. Shah
Partner Partner Partner
Membership No.: 45882 Membership No.: 46488 Membership No.:47166
Date : April 22, 2016