Reliance Industries Limited

218 Annual Report 2013-14

Growth is Life...

Consolidated Financial Statements & Notes

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

219

Independent Auditors Report

TO THE BOARD OF DIRECTORS OF RELIANCE INDUSTRIES
LIMITED
REPORT ON THE CONSOLIDATED FINANCIAL
STATEMENTS
1. We have audited the accompanying consolidated
inancial statements of RELIANCE INDUSTRIES LIMITED
(the Company), its subsidiaries and jointly controlled
entities (collectively referred to as the Group), which
comprise the Consolidated Balance Sheet as at March 31,
2014, the Consolidated Statement of Proit and Loss and
the Consolidated Cash Flow Statement for the year then
ended and a summary of signiicant accounting policies
and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE
CONSOLIDATED FINANCIAL STATEMENTS
2. Management is responsible for the preparation of these
consolidated inancial statements that give a true and fair
view of the consolidated inancial position, consolidated
inancial performance and consolidated cash lows of
the Group in accordance with the Accounting Standards
notiied under the Companies Act, 1956 (the Act) (which
continue to be applicable in respect of Section 133 of
the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of
Corporate Afairs). This responsibility includes the design,
implementation and maintenance of internal control
relevant to the preparation and presentation of the
consolidated inancial statements that give a true and fair
view and are free from material misstatement, whether
due to fraud or error.
AUDITORS RESPONSIBILITY
3. Our responsibility is to express an opinion on these
consolidated inancial statements based on our audit. We
conducted our audit in accordance with the Standards on
Auditing issued by the Institute of Chartered Accountants
of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the
consolidated inancial statements are free from material
misstatement.
4. An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in
the consolidated inancial statements. The procedures
selected depend on the auditors judgment, including
the assessment of the risks of material misstatement
of the consolidated inancial statements, whether due
to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Groups
preparation and presentation of the consolidated inancial
statements that give a true and fair view in order to design

audit procedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion on the
efectiveness of the Companys internal control. An audit
also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the
accounting estimates made by the Management, as well
as evaluating the overall presentation of the consolidated
inancial statements. We believe that the audit evidence

we have obtained is suicient and appropriate to provide

a basis for our audit opinion.
OPINION
5. In our opinion and to the best of our information and
according to the explanations given to us and based on
the consideration of the reports of the other auditors
on the inancial statements / consolidated inancial
statements of the subsidiaries and associates as noted
below, the consolidated inancial statements give a true
and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Consolidated Balance Sheet, of the
state of afairs of the Group as at March 31, 2014;
(b) in the case of the Consolidated Statement of Proit
and Loss, of the proit of the Group for the year ended
on that date and
(c) in the case of the Consolidated Cash Flow Statement,
of the cash lows of the Group for the year ended on
that date.
OTHER MATTERS
6. Financial statements / consolidated inancial statements
of certain subsidiaries which relect total assets (net) of
` 81,533 crore as at March 31, 2014, total revenue
(net) of ` 52,452 crore and net cash lows amounting
to ` 67 crore for the year then ended, have been
audited by one or jointly by two of us or one of us with
other and inancial statements of an associate in which
the share of proit of the Group is ` 11 crore have been
audited by one of us.
7. We did not audit the inancial statements / consolidated
inancial statements of certain subsidiaries whose inancial
statements / consolidated inancial statements relect
total assets (net) of ` 48,602 crore as at March 31,
2014/ December 31, 2013, total revenues (net) of `
19,065 crore and net cash lows amounting to ` 384
Crore for the year ended on that date and inancial
statements of an associate in which the share of proit
of the Group is
` 1 crore. These inancial statements / consolidated
inancial statements have been audited by other auditors
whose reports have been furnished to us and our opinion
is based solely on the reports of the other auditors.
8. We have relied on the unaudited inancial statements
of certain associates wherein the Groups share of proit
aggregate ` 15 crore. These unaudited inancial statements
as approved by the respective Boards of Directors of these
companies have been furnished to us by the Management
and our report insofar as it relates to the amounts included
in respect of associates is based solely on such approved
unaudited inancial statements.
Our opinion is not qualiied in respect of other matters.
For Chaturvedi & Shah
Chartered Accountants
(Registration No. 101720W)

For Deloitte Haskins & Sells LLP

Chartered Accountants
(Registration No. 117366W/ W-100018)

For Rajendra & Co.

Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611

A. B. Jani
Partner
Membership No.: 46488

A. R. Shah
Partner
Membership No.:47166

Mumbai
Date : April 18, 2014

220

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

Reliance Industries Limited

Consolidated Balance Sheet as at 31st March, 2014
(` in crore)
Note
EQUITY AND LIABILITIES
Shareholders Funds
Share Capital
Reserves and Surplus
Share Application Money Pending Allotment
Minority Interest
Non-Current Liabilities
Long Term Borrowings
Deferred Tax Liability (net)
Other Long Term Liabilities
Long Term Provisions

1
2

As at
31st March, 2014

2,940
1,95,730

2,936
1,79,094
1,98,670
17
959

1
3
4
5
6

As at
31st March, 2013

1,01,019
11,925
807
290

1,82,030
25
949
70,960
11,588
531

1,14,041
Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TOTAL
ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Intangible Assets under Development
Non-Current Investments
Long Term Loans and Advances
Other Non-Current Assets

7
8
9
10

32,792
60,860
17,058
4,446

83,079
18,362
49,700
23,655
4,557

1,15,156
4,28,843

11
11
11
11
12
13
14

97,256
44,161
48,646
42,848
26,867
17,996
-

96,274
3,62,357

98,715
34,772
17,191
32,761
13,979
9,025
2,77,774

Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balances
Short Term Loans and Advances
Other Current Assets
TOTAL
Signiicant Accounting Policies
Notes on Financial Statements
As per our Report of even date

15
16
17
18
19
20

34,458
55,997
9,411
37,984
9,965
3,254

2,06,443
28,869
54,601
9,750
50,456
10,455
1,783

1,51,069
4,28,843

1,55,914
3,62,357

1 to 36
For and on behalf of the Board

M.D. Ambani
- Chairman & Managing Director
For Chaturvedi & Shah For Deloitte Haskins & Sells LLP For Rajendra & Co.
N.R. Meswani
Chartered Accountants Chartered Accountants
Chartered Accountants H.R. Meswani
Executive Directors
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
D. Chaturvedi
A. B. Jani
A.R. Shah
Y.P. Trivedi
Dr. D.V. Kapur
Partner
Partner
Partner
M.P. Modi
Directors
Prof. Ashok Misra
Prof. Dipak C. Jain
Mumbai
Alok Agarwal
K. Sethuraman
Dr. R.A. Mashelkar
Date : April 18, 2014
Chief Financial Oicer
Company Secretary
Adil Zainulbhai

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

221

Reliance Industries Limited

Consolidated Statement of Proit and Loss for the year ended 31st March, 2014
INCOME
Revenue from Operations
Sale of Products
Income from Services
Less: Excise Duty / Service Tax Recovered
Net Revenue from Operations
Other Income
Total Revenue
EXPENDITURE :
Cost of Materials Consumed
Purchases of Stock-in-Trade
Changes in Inventories of Finished Goods,
Stock-in-Process and Stock-in-Trade
Employee Beneits Expense
Finance Costs
Depreciation and Amortisation Expense
Other Expenses
Total Expenses
Proit before Tax
Tax Expenses
Current Tax
Deferred Tax
Proit for the year (before adjustment for Minority Interest)
Add: Share of (Proit) transferred to Minority Interest
Proit for the year (after adjustment for Minority Interest)
Earnings per equity share of face value of ` 10 each
Basic and Diluted (in `)
Signiicant Accounting Policies
Notes on Financial Statements

As per our Report of even date

(` in crore)
2012-13

2013-14

Note

4,42,581
3,758

4,06,427
1,965

4,46,339

4,08,392

11,879

11,330
4,34,460
9,001
4,43,461

3,97,062
7,867
4,04,929

3,46,491
17,091

3,26,779
10,425

22

(560)

(4,954)

23
24
25
26

5,572
3,836
11,201
31,067
4,14,698
28,763

5,179
3,463
11,232
26,588
3,78,712
26,217

5,929
286
22,548
(55)
22,493

5,327
4
20,886
(7)
20,879

76.55

70.65

21

27
1 to 36

For and on behalf of the Board

M.D. Ambani
- Chairman & Managing Director
For Chaturvedi & Shah For Deloitte Haskins & Sells LLP For Rajendra & Co.
N.R. Meswani
Chartered Accountants Chartered Accountants
Chartered Accountants H.R. Meswani
Executive Directors
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
D. Chaturvedi
A. B. Jani
A.R. Shah
Y.P. Trivedi
Dr. D.V. Kapur
Partner
Partner
Partner
M.P. Modi
Directors
Prof. Ashok Misra
Prof. Dipak C. Jain
Mumbai
Alok Agarwal
K. Sethuraman
Dr. R.A. Mashelkar
Date : April 18, 2014
Chief Financial Oicer
Company Secretary
Adil Zainulbhai

222

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

Reliance Industries Limited

Consolidated Cash Flow Statement for the year 2013-14
(` in crore)

A:

2013-14

2012-13

28,763

26,217

CASH FLOW FROM OPERATING ACTIVITIES:

Net Proit before tax as per Statement of Proit and Loss
Adjusted for:
32

16

(90)

(67)

Net Prior Year Adjustments

Investment written of (net)

Miscellaneous Expenditure written of

Share in Income of Associates

95

11,201

11,232

Efect of Exchange Rate Change

3,272

1,129

Net gain on Sale of Investments

(2,493)

(1,768)

(175)

(131)

(5,907)

(5,816)

3,836

3,463

Loss on Sale / Discard of Assets (net)

Depreciation and Amortisation Expense

Dividend Income
Interest Income
Finance Costs
Operating Proit before Working Capital Changes

9,681

8,156

38,444

34,373

Adjusted for:
Trade and Other Receivables

(1,913)

7,289

Inventories

(1,396)

(7,525)

Trade and Other Payables

14,339

7,608

Cash Generated from Operations

Net Prior Year Adjustments

B:

11,030

7,372

49,474

41,745

(3)

Taxes Paid (net)

(6,213)

(4,824)

Net Cash from Operating Activities

43,261

36,918

(60,087)

(30,726)

148

2,138

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets
Sale of Fixed Assets

(7,65,659)

(4,84,826)

Sale / Redemption of Investments

7,49,849

4,82,102

Movement in Loans and Advances

(426)

(2,610)

(3,624)

6,413

6,144

316

128

(73,070)

(27,650)

Purchase of Investments

Investments in ixed deposits

Interest Income
Dividend Income
Net Cash (used in) Investing Activities

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

223

Consolidated Cash Flow Statement for the year 2013-14 (Continued)

(` in crore)

C:

2013-14

2012-13

183

12

390

(67)

(10)

Share Application Money

17

25

Buyback of Equity Shares

(3,087)

Proceeds from Long Term Borrowings

28,215

19,182

Repayment of Long Term Borrowings

(19,835)

(10,532)

Short Term Borrowings (net)

13,937

2,004

Dividends Paid (including dividend distribution tax)

(3,123)

(2,949)

Interest Paid

(5,619)

(4,626)

(1)

13,713

408

CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital
Proceeds from Issue of Share Capital to Minority
Redemption of Preference Share Capital of Minority

Miscellaneous Expenditure / Issue expenses

Net Cash from Financing Activities
Net Increase / (Decrease) in Cash and Cash Equivalents

(16,096)

9,676

Opening Balance of Cash and Cash Equivalents

50,456

40,731

Add: Upon addition of Subsidiaries (` 12,00,000)

49

Closing Balance of Cash and Cash Equivalents

(Refer Note No. 18)

As per our Report of even date

50,456

40,780

34,360

50,456

For and on behalf of the Board

M.D. Ambani
- Chairman & Managing Director
For Chaturvedi & Shah For Deloitte Haskins & Sells LLP For Rajendra & Co.
N.R. Meswani
Chartered Accountants Chartered Accountants
Chartered Accountants H.R. Meswani
Executive Directors
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
D. Chaturvedi
A. B. Jani
A.R. Shah
Y.P. Trivedi
Dr. D.V. Kapur
Partner
Partner
Partner
M.P. Modi
Directors
Prof. Ashok Misra
Prof. Dipak C. Jain
Mumbai
Alok Agarwal
K. Sethuraman
Dr. R.A. Mashelkar
Date : April 18, 2014
Chief Financial Oicer
Company Secretary
Adil Zainulbhai