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Reliance Industries Ltd.

BSE: 500325 Sector: Oil & Gas
NSE: RELIANCE ISIN Code: INE002A01018
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OPEN 2484.20
PREVIOUS CLOSE 2482.95
VOLUME 245719
52-Week high 2527.00
52-Week low 1830.00
P/E 50.80
Mkt Cap.(Rs cr) 1,600,265
Buy Price 2523.90
Buy Qty 50.00
Sell Price 2524.80
Sell Qty 3.00
OPEN 2484.20
CLOSE 2482.95
VOLUME 245719
52-Week high 2527.00
52-Week low 1830.00
P/E 50.80
Mkt Cap.(Rs cr) 1,600,265
Buy Price 2523.90
Buy Qty 50.00
Sell Price 2524.80
Sell Qty 3.00

Reliance Industries Ltd. (RELIANCE) - Auditors Report

Company auditors report

To the Members of Reliance Industries Limited

Report on the Audit of the Standalone

Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements ofReliance Industries Limited ("the Company") which includes joint operationswhich comprise the Balance sheet as at March 31 2021 the Statement of Profit and Lossincluding the statement of Other Comprehensive Income the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and notes to the StandaloneFinancial Statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2021 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) as specified under Section 143(10) of theAct.

Our responsibilities under those Standards are further described in theAuditors' Responsibilities for the Audit of the Standalone Financial Statements' sectionof our report. We are independent of the Company in accordance with the 'Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believe

that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw attention to Note 31(b) and 41.1 of the financial statements inrespect of the Scheme of Amalgamation of wholly-owned subsidiaries with the Companyapproved by the Hon'ble National Company Law Tribunal Mumbai wherein the financialinformation has been restated from the appointed date and not from the earliest datepresented in accordance with Ind AS 103 as per General Circular No. 09/2019 issued by MCAdated August 21 2019 and loss due to take over of borrowing and consequential adjustmentfor reversal thereof in the statement of profit and loss upon the Scheme becomingeffective.

Our Opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the Standalone Financial Statementsfor the financial year ended March 31 2021. These matters were addressed in the contextof our audit of the Standalone Financial Statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditors' responsibilities for the audit of the Standalone Financial Statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the Standalone Financial Statements. The results of our auditprocedures including the procedures performed to address the matters below provide thebasis for our audit opinion on the accompanying Standalone Financial Statements.

Key audit matters How our audit addressed the key audit matter
A. Capitalisation and useful life of property plant and equipment
During the year ended March 31 2021 the Company has incurred capital expenditure on various projects included in capital work in progress and intangible assets under development. Further items of property plant and equipment that are ready for its intended use as determined by the management have been capitalised in the current year. Judgement is involved to determine that the aforesaid capitalisation meet the recognition requirement under Ind AS specifically in relation to determination of whether the criteria for intended use of the management has been met. Our audit procedures included and were not limited to the following:
• Examined the management assessment of the assumptions considered in estimation of useful life.
• Examined the useful economic lives with reference to the Company's historical experience and technical evaluation by third party specialist appointed by management.
• Assessed the objectivity and competence of the Company's external specialists involved in the process.
• Assessed the nature of the additions made to property plant and equipment intangible assets capital work-in-progress and intangible asset under development on a test check basis to test whether they meet the recognition criteria as set out in para 16 to 22 of Ind AS 16 - Property Plant and Equipment including intended use of management.
Further in the current year the Company has reassessed the useful life of its plant and machinery from 25-35 years to 50 years. Assessment of useful life of plant and machinery involves management judgement technical assessment consideration of historical experiences anticipated technological changes etc.
Accordingly the above has been determined as a key audit matter. • Assessed the impact recognised on account of the change in the useful life and disclosure made in the financial statements.
Key audit matters How our audit addressed the key audit matter
B. Estimation of oil reserves decommissioning liabilities depletion charges and impairment evaluation of development rights
Refer to Note 34.2 on proved reserves and production on product and geographical basis Note C(A) on estimation of Oil and Gas reserves Note B.2(s) on Accounting for Oil and Gas activity Note C(B) on Decommissioning Liabilities Note C(C) on Property Plant and Equipment/Intangible Assets and Note B.2(j) on Provisions and Note B.2(i) on impairment of non-financial assets and Note 17 of the financial statements. Our work included and were not limited to the following procedures:
• Performed walk-through of the estimation process associated with the oil and gas reserves.
• Assessed the valuation methodology including assumptions around the key drivers of the cash flow forecasts including future oil and gas prices estimated reserves discount rates used etc. by engaging valuation experts.
The determination of the Company's oil and natural gas reserves requires significant judgements and estimates to be applied. Factors such as the availability of geological and engineering data reservoir performance data acquisition and divestment activity drilling of new wells and commodity prices all impacts the determination of the Company's estimates of oil and natural gas reserves. • Assessed the objectivity and competence of the Company's specialists involved in the process and valuation specialists engaged by us.
• Assessed whether the updated oil and gas reserve estimates were included in the Company's accounting for amortisation / depletion and disclosures of proved reserves and proved developed reserves in the financial statements.
Estimates of oil and gas reserves are used to calculate depletion charges for the Company's oil and gas assets. The impact of changes in estimated proved reserves is dealt with prospectively by amortising the remaining carrying value of the asset over the expected future production. Oil and natural gas reserves also have a direct impact on the assessment of the recoverability of asset's carrying values reported in the financial statements.
• Tested the assumption used in determining the decommissioning provisions. Also compared these assumptions with the previous year and enquired for reasons for any material variations.
• Reviewed the disclosure made by the Company in the financial statements.
For the purpose of impairment testing value in use has been determined by the management by considering estimates such as discount rates reserves and volumes future oil and gas natural prices etc. along with other macro-economic business and financing factors.
Further the recognition and measurement of decommissioning provisions involves use of estimates and assumptions relating to timing of abandonment of well and related facilities which would depend upon the ultimate life of the field expected utilisation of assets by other fields the scope of abandonment activity and pre-tax rate applied for discounting.
Accordingly the same is considered as a key audit matter.
C. Litigation matters
The Company has certain significant ongoing legal proceedings for various complex matters with the Government of India and other parties continuing from earlier years which are as under: Our audit procedures included and were not limited to the following:
• Assessed the management's position through discussions with the in-house legal expert and external legal opinions obtained by the Company (where considered necessary) on both the probability of success in the aforesaid cases and the magnitude of any potential loss.
1. Matters in relation to Oil and Gas:
(a) Disallowance of certain costs under the production sharing contract relating to Block KG-DWN-98/3 and consequent deposit of differential revenue on gas sales from D1D3 field to the gas pool account maintained by Gail (India) Limited (Refer Note 34.3).
• Discussed with the management on the development in these litigations during the year ended March 31 2021.
• Rolled out of enquiry letters to the Company's legal counsel and noted the responses received.
(b) Claim against the Company in respect of gas said to have migrated from neighbouring blocks (KGD6) (Refer Note 34.4(a)). • Assessed the responses received from Company's legal counsel by engaging our internal legal experts.
• Assessed the objectivity and competence of the Company's legal counsel involved in the process and legal experts engaged by us.
(c) Claims relating to limits of cost recovery profit sharing and audit and accounting provisions of the public sector corporations etc. arising under two production sharing contracts entered into in 1994 (Refer Note 34.4(b)).
• Reviewed the disclosures made by the Company in the financial statements.
• Obtained representation letter from the management on the assessment of these matters.
(d) Suit for specific performance of a contract for supply of natural gas before the Hon'ble Bombay High Court (Refer Note 34.4(c)).
2. Matter relating to trading in shares of Reliance Petroleum Limited (RPL):
(a) Special Appellate Tribunal judgement dated November 5 2020 dismissing Company's appeal made in relation to order passed by the Securities and Exchange Board of India ('SEBI') under Section 11B of the SEBI Act 1992 (Refer Note 35(III)).
Key audit matters How our audit addressed the key audit matter
Due to complexity involved in these litigation matters management's judgement regarding recognition and measurement of provisions for these legal proceedings is inherently uncertain and might change over time as the outcomes of the legal cases are determined.
Accordingly it has been considered as a key audit matter.
D. Fair Valuation of Investments
As at March 31 2021 the Company has investments of Rs.78234 crore in the Equity and Preference Shares of Jio Digital Fiber Private Limited ('JDFPL') and Summit Digitel Infrastructure Private Limited ("SDIPL') (Formerly Reliance Jio Infratel Private Limited) which are measured at fair value as per Ind AS 109 read with Ind AS 113. Our audit procedures included and were not limited to the following:
• Reviewed the fair valuation reports provided by the management by involvement of internal specialist / external valuation experts.
• We assessed the assumptions around the cash flow forecasts including discount rates expected growth rates and its effect on business and terminal growth rates used through involvement of the internal experts.
These investments are Level 3 investments as per the fair value hierarchy in Ind AS 113 and accordingly determination of fair value is based on a high degree of judgement and input from data that is not directly observable in the market. Further the fair value is significantly influenced by the expected pattern of future benefits of the tangible assets of JDFPL (fiber assets) and SDIPL (tower assets). Refer Note 2 and Note 37A in the financial statements.
• We also involved internal experts to assess the Company's valuation methodology and assumptions applied in determining the fair value.
• We discussed potential changes in key drivers as compared to previous year / actual performance with management to evaluate the inputs and assumptions used in the cash flow forecasts.
Accordingly the same has been considered as a key audit matter.
• Assessed the objectivity and competence of our internal expert and Company's internal / external specialists involved in the process.
• Reviewed the disclosures made by the Company in the financial statements.
E. Impairment of Investment in shale gas entities and recognition of deferred tax assets
(a) Based on the assessment of the internal and external sources of information management has identified indicators of impairment in respect of its investments in shale gas entities engaged in the business of exploration and production of oil and gas. In the current year management has performed an impairment assessment by comparing the carrying value of these investments to their recoverable amount and accordingly recognised an impairment loss of Rs.15686 crore. For the purpose of the above impairment testing realisable value has been determined by the management by considering estimates such as discount rates reserves and volumes future oil and gas natural prices etc along with consideration of other macro-economic business and financing factors including divestment agreement entered into for certain upstream assets. (a) Our audit procedures to address impairment of investment included and were not limited to the following:
• Obtained and assessed the impairment triggers identified by the management.
• Read the note in relation to impairment of assets in consolidated financial statement of the shale gas entities.
• Discussed the aforesaid matter with the component auditor in accordance with Standard of Auditing 600 - Using the work of Another Auditor.
• Read the agreement in reference to divestment of interest in certain upstream assets operated by EQT Corporation to Northern Oil and Gas Inc.
• Obtained the realisable value assessment made by the management and assessed the methodology and the assumptions applied in determining the realisable value by engaging our internal valuation specialists.
(b) The Company has also recognised Deferred Tax Assets of Rs.15570 crore in respect of the difference between the book base and tax base of the investment in shale gas entities engaged in the business of exploration and production of oil and gas in accordance with Ind AS 12 - Income Taxes. Recognition of the aforesaid deferred tax asset involves management judgement and estimates to determine whether there is a reasonable certainty to utilise the deferred tax assets against future capital gains.
• Reviewed the disclosures made by the Company in the financial statements.
(b) Our audit procedures to address recognition of deferred tax asset included and were not limited to the following:
• Assessed the basis of recognition of deferred tax assets in accordance with Ind AS.
• Obtained and assessed the management assumptions / judgements and mathematical accuracy for calculating the difference between the book base and tax base.
Both the above items have been disclosed as exceptional items in the financial statements (Refer Note 31(c)).
• Evaluated the management assessment on future transactions including capital gain projections used in assessing the recoverability.
Accordingly the above matters have been considered as a key audit matter.
• Evaluated the management assessment of tax credit recognition including calculation of tax base as per the Income Tax Act 1961 by engaging internal tax specialist. In making this assessment we evaluated the competence and objectivity of our internal experts.
• Reviewed the disclosures made by the Company in the financial statements.
Key audit matters How our audit addressed the key audit matter
F. IT systems and controls over financial reporting
We identified IT systems and controls over financial reporting as a key audit matter for the Company because its financial accounting and reporting systems are fundamentally reliant on IT systems and IT controls to process significant transaction volumes specifically with respect to revenue and raw material consumption. Also due to such large transaction volumes and the increasing challenge to protect the integrity of the Company's systems and data cyber security has become more significant. Our procedures included and were not limited to the following:
• Assessed the complexity of the IT environment by engaging IT specialists and through discussion with the head of IT and internal audit and identified IT applications that are relevant to our audit.
• Assessed the design and evaluation of the operating effectiveness of IT general controls over program development and changes access to program and data and IT operations by engaging IT specialists.
Automated accounting procedures and IT environment controls which include IT governance IT general controls over program development and changes access to program and data and IT operations IT application controls and interfaces between IT applications are required to be designed and to operate effectively to ensure accurate financial reporting. • Performed inquiry procedures with the head of cybersecurity at the Company in respect of the overall security architecture and any key threats addressed by the Company in the current year.
• Assessed the design and evaluation of the operating effectiveness of IT application controls in the key processes impacting financial reporting of the Company by engaging IT specialists.
• Assessed the operating effectiveness of controls relating to data transmission through the different IT systems to the financial reporting systems by engaging IT specialists.

Information Other than the Financial Statements and Auditors' ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the Standalone Financial Statements and our auditors' reportthereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whethersuch other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities;

selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditors' Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditors' report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143 (3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors' report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors' report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements for the financial year ended March 31 2021 and are therefore the keyaudit matters. We describe these matters in our auditors' report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably

be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement

of Changes in Equity dealt with by this Report are in agreement withthe books of account;

(d) In our opinion the aforesaid Standalone Financial Statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken

on record by the Board of Directors none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of Section164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to these Standalone Financial Statements and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2021 has been paid / provided by the Company to its directors in accordance

with the provisions of Section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements - Refer Note 35 to theStandalone Financial Statements;

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company except for anamount of Rs.1.76 crore which are held in abeyance due to pending legal cases.

For D T S & Associates LLP For S R B C & CO LLP
Chartered Accountants Chartered Accountants
ICAI Firm Reg. Number: ICAI Firm Reg. Number:
142412W/W100595 324982E/E300003
per T P Ostwal per Vikas Kumar Pansari
Partner Partner
Membership No.: 030848 Membership No.: 093649
UDIN: 21030848AAAAAQ3979 UDIN: 21093649AAAAB J4217
Mumbai Mumbai
Date: April 30 2021 Date: April 30 2021

Annexure 1

To the Independent Auditors' Report of even date on the StandaloneFinancial Statements of Reliance Industries Limited

(Referred to in paragraph 1 under 'Report on Other Legal and

Regulatory Requirements' section of our Report of even date)

(i) (a) The Company has maintained proper records

showing full particulars including quantitative details and situationof fixed assets.

(b) The Company has a regular programmeme for physical verification ofits fixed assets by which its fixed assets are verified in a phased manner. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its fixed assets. However there were certain fixedassets which were not verified during the year as planned due to outbreak of COVID-19pandemic. As represented by the management these will be covered for verification in thesubsequent period. According to the information and explanations given to us no materialdiscrepancies were noticed on verification of the fixed assets.

(c) According to information and explanations given by the managementthe title deeds / lease deeds of immovable properties included in property plant andequipment are held in the name of the Company except for leasehold land of Rs.83 crore inrespect

of which the allotment letters are received and supplementaryagreements entered; however lease deeds are pending execution. (Refer Note 1.1 of theStandalone Financial Statements).

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Orderare not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanationsprovided to us the Company has not granted any loans or provided any guarantees orsecurity to the parties covered under Section 185 of the Act. The Company has compliedwith the provisions of Section 186 of the Act in respect of investments made or loans orguarantee or security provided to the parties covered under Section 186 of the Act.

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable tothe Company.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under Section 148(1) of the Act related to the manufacturing activities and areof the opinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

(vii) (a) The Company is generally regular in depositing

with appropriate authorities undisputed statutory dues includingProvident fund Employees' State Insurance Income-tax Sales-tax Goods and Services taxDuty of customs Duty of excise

Value Added Tax Cess and Other Statutory Dues applicable to it.

(b) According to the information and explanations provided to us noundisputed amounts payable in respect of Provident fund Employees' State InsuranceIncome-tax Sales Tax Goods and Service tax Duty of customs Duty of excise Value addedtax Cess and Other Statutory Dues were outstanding at the year end for a period of morethan six months from the date they became payable.

NOTICE

(c) According to the records of the Company the dues of Sales-taxService tax Duty of customs Duty of excise Value added tax Cess and Goods and ServiceTax which have not been deposited on March 31 2021 on account of any dispute are asfollows:

Name of the Statute Nature of Dues Amount (Rs. in crore) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty and Service Tax 5 Various Years from Commissioner of Central
1990-91 to 2017-18 Excise (Appeals)
1131 Various Years from The Customs Excise and Service
1991-92 to 2017-18 Tax Appellate Tribunal
Central Sales Tax Act Sales Tax/ 463 Various Years from Joint Commissioner/Commissioner
1956 and Sales Tax Act of various States VAT and Entry Tax 2001-02 to 2019-20 (Appeal) of Sales Tax
646 Various Years from 1983-84 to 2015-16 Sales Tax Appellate Tribunal
94 Various Years from 2000-01 to 2011-12 High Court
Customs Act 1962 Customs Duty 98 2007-08 and 2017-18 The Customs Excise and Service Tax Appellate Tribunal
Goods and Services Tax Act 2017 Goods and Services Tax 0.31 2017-18 to 2020-21 Joint/Additional Commissioner of
GST and Central Excise

(viii) In our opinion and according to the information and explanationsprovided by the management the Company has not defaulted in repayment of loans orborrowing

to a financial institution bank or government or dues to debentureholders.

(ix) In our opinion and according to the information and explanationsprovided by the management the Company has utilised the monies raised by way of rightsissue of equity shares debt instruments and term loans for the purposes for which theywere raised.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the Financial Statements and according to theinformation and explanations provided by the management we report that no fraud by theCompany or no material fraud on the Company by the officers and employees of the Companyhas been noticed or reported during the year.

(xi) According to the information and explanations provided by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

(xii) In our opinion the Company is not a nidhi company. Thereforethe provisions of clause 3(xii) of the Order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations provided by themanagement transactions with the related parties are in compliance with Section 177 and188 of the Act where applicable and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations provided to us andon an overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) of the Orderare not applicable to the Company and not commented upon.

(xv) According to the information and explanations provided by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in Section 192 of the Act.

(xvi) According to the information and explanations provided to us theprovisions of Section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For D T S & Associates LLP For S R B C & CO LLP
Chartered Accountants Chartered Accountants
ICAI Firm Reg. Number: ICAI Firm Reg. Number:
142412W/W100595 324982E/E300003
per T P Ostwal per Vikas Kumar Pansari
Partner Partner
Membership No.: 030848 Membership No.: 093649
UDIN: 21030848AAAAAQ3979 UDIN: 21093649AAAAB J4217
Mumbai Mumbai
Date: April 30 2021 Date: April 30 2021

Standalone

Annexure 2

To the Independent Auditors' Report of even date on the StandaloneFinancial Statements of Reliance Industries Limited

Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Reliance Industries Limited ("the Company") which includes jointoperations as of March 31 2021 in conjunction with our audit of the Standalone FinancialStatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these Standalone FinancialStatements based on our audit. We conducted our audit in accordance with the Guidance Noteand the Standards on Auditing as specified under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withreference to these Standalone Financial Statements was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese Standalone Financial Statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these StandaloneFinancial Statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditors' judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting with reference to these Standalone Financial Statements.

Meaning of Internal Financial Controls over Financial Reporting withreference to these Standalone Financial Statements

A company's internal financial control over financial reporting withreference to these Standalone Financial Statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these Standalone Financial Statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting with reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these Standalone Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these Standalone Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these StandaloneFinancial Statements and such internal financial controls over financial reporting withreference to these Standalone Financial Statements were operating effectively as at March31 2021 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For D T S & Associates LLP For S R B C & CO LLP
Chartered Accountants Chartered Accountants
ICAI Firm Reg. Number: ICAI Firm Reg. Number:
142412W/W100595 324982E/E300003
per T P Ostwal per Vikas Kumar Pansari
Partner Partner
Membership No.: 030848 Membership No.: 093649
UDIN: 21030848AAAAAQ3979 UDIN: 21093649AAAABJ4217
Mumbai Mumbai
Date: April 30 2021 Date: April 30 2021

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