We have audited the accompanying Standalone Financial
Statements of Reliance Industries Limited (the “Company"),
which includes its joint operations, which comprise the
Balance Sheet as at 31st March, 2025, and the Statement
of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flows and the Statement
of Changes in Equity for the year ended on that date, and
notes to the Standalone Financial Statements, including
a summary of material accounting policies and other
explanatory information.
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 Companies Act, 2013 (the “Act") in the manner so
required and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under Section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (“Ind AS") and other
accounting principles generally accepted in India, of the state
of affairs of the Company as at 31st March, 2025, and its profit,
total comprehensive income, its cash flows and the changes in
equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing
(“SA"s) specified under Section 143(10) of the Act. Our
responsibilities under those Standards are further described
in the Auditor's Responsibility for the Audit of the Standalone
Financial Statements section of our report. We are
independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants
of India (“ICAI") together with the ethical requirements
that are relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the ICAI's Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis
for our audit opinion on the Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Standalone Financial Statements of the current period. These
matters were addressed in the context of our audit of the
Standalone Financial Statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described
below to be the key audit matters to be communicated in
our report.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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1.
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Litigation matters
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The Company has certain significant ongoing legal
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Our audit procedures included and were not limited to
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proceedings for various complex matters with the
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the following:
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Government of India and other parties, continuing from
earlier years, which are as under:
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• Tested the design, implementation and operating effectiveness
of the controls established by the Company in the process of
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1. Matters in relation to Oil and Gas:
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evaluation of litigation matters.
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(a)
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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.
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• 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.
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(b)
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Claim against the Company in respect of gas said
to have migrated from blocks neighbouring KGD6.
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• Discussed with the management on the developments
in respect of these litigations during the year ended 31st
March, 2025 till the date of approval of the Standalone
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(c)
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Arbitration matters relating to difference in
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Financial Statements.
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interpretation of certain Production Sharing
Contracts (PSC) provisions in Panna-Mukta and
Tapti blocks.
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• Rolled out enquiry letters to the Company's legal counsel and
assessed the responses received.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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(d) Suit for specific performance of a contract for
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• Assessed the objectivity and competence of the Company's
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supply of natural gas before the Hon'ble Bombay
High Court.
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legal counsel involved in the process.
• Reviewed the disclosures made by the Company in the
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Refer Notes 33.3 and 33.4 to the Standalone
Financial Statements.
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Standalone Financial Statements.
• Obtained Management representation letter on the
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2. Matter relating to trading in shares of Reliance
Petroleum Limited ('RPL'):
Securities Appellate Tribunal judgement dated 5th
November, 2020, dismissing the 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 in connection with trades by the
Company in the stock exchanges in 2007 in the shares
of Reliance Petroleum Limited, then subsidiary of the
Company, against which an appeal has been filed with
the Hon'ble Supreme Court of India which is pending.
Refer Note 34 (IV) to the Standalone
Financial Statements.
Due to complexity involved in these litigation matters,
management's judgement regarding recognition,
measurement and disclosure 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.
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assessment of these matters.
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2.
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Fair Valuation of Investments
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As at 31st March, 2025, the Company has investments of
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Our audit procedures included and were not limited to
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C 78,339 crore in Equity and Preference Shares of Jio Digital
Fibre Private Limited ('JDFPL') which are measured at fair value
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the following:
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as per Ind AS 109 read with Ind AS 113.
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• Tested the design, implementation and operating effectiveness
of the controls established by the Company in the process of
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These investments are Level 3 investments as per the fair
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determination of fair value of the investments.
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value hierarchy in Ind AS 113 and accordingly determination
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• Reviewed the fair valuation reports provided by the management
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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 (fibre assets).
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by involvement of internal valuation specialists.
• Assessed the assumptions around the cash flow forecasts,
discount rates, expected growth rates and its effect on
business and terminal growth rates used and the valuation
methodology inter-alia through involvement of the
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Accordingly, it has been considered as a key audit matter.
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internal specialists.
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Refer Notes 2 and 36A to the Standalone
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• Discussed potential changes in key drivers as compared to
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Financial Statements.
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previous period / actual performance with management
to evaluate the inputs and assumptions used in the cash
flow forecasts.
• Assessed the objectivity and competence of our internal
specialist and Company's external experts involved in
the process.
• Reviewed the disclosures made by the Company in the
Standalone Financial Statements.
• Obtained Management Representation Letter as regards to fair
valuation of these investments.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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3.
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Information Technology (IT) systems and controls over
financial reporting
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We identified IT systems and controls over financial reporting
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Our procedures included and were not limited to
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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
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the following:
• Assessed the complexity of the IT environment by engaging
IT specialists and through discussion with the head of IT and
internal audit at the Company and identified IT applications
that are relevant to our audit.
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of the Company's systems and data, cyber security has
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• Tested the design, implementation and operating
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become more significant. Automated accounting procedures
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effectiveness of IT general controls over program development
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and IT environment controls, which include IT governance,
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and changes, access to program and data and IT operations by
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IT general controls over program development and changes,
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engaging IT specialists.
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access to program and data and IT operations, IT application
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• Performed inquiry procedures with the head of cybersecurity
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controls and interfaces between IT applications, are required
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at the Company in respect of the overall security architecture
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to be designed and to operate effectively to ensure accurate
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and any key threats addressed by the Company in the
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financial reporting.
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current year.
• Tested the design, implementation and operating
effectiveness of IT application controls in the key processes
impacting financial reporting of the Company by engaging
IT specialists.
• Tested the design, implementation and operating
effectiveness of controls relating to data transmission through
the different IT systems to the financial reporting systems by
engaging IT specialists.
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Information Other than the
Financial Statements and Auditor’s
Report Thereon
• The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Annual Report, but does not
include the Consolidated Financial Statements, Standalone
Financial Statements and our auditor's report thereon.
• Our opinion on the Standalone Financial Statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
• In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the Standalone
Financial Statements or our knowledge obtained during
the course of our audit or otherwise appears to be
materially misstated.
• If, based on the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of Management
and Board of Directors for the
Standalone Financial Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of 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 including other comprehensive loss, cash
flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India,
including Ind AS specified 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 judgements and estimates that are reasonable and
prudent; and 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 standalone financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the Standalone Financial Statements,
management and Board of Directors are responsible for
assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intend to liquidate the
Company or to cease operations, or has no realistic alternative
but to do so.
The Company's Board of Directors is also responsible for
overseeing the Company's financial reporting process.
Auditor’s Responsibility for the
Audit of the Standalone Financial
Statements
Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these Standalone
Financial Statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the Standalone Financial Statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under Section 143(3)0)
of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial
controls with reference to Standalone Financial Statements
in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the management.
• Conclude on the appropriateness of management's use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's
report to the related disclosures in the Standalone Financial
Statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial
Statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the Standalone Financial
Statements may be influenced. We consider quantitative
materiality and qualitative factors (i) in planning the scope of
our audit work and in evaluating the results of our work; and (ii)
to evaluate the effect of any identified misstatements in the
Standalone Financial Statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any
significant deficiencies in internal financial controls that we
identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone Financial
Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and
Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our
audit, 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 books.
c) The Balance Sheet, the Statement of Profit and
Loss including Other Comprehensive Income,
the Statement of Cash Flows and Statement of
Changes in Equity dealt with by this Report are in
agreement with the books of account.
d) In our opinion, the aforesaid Standalone Financial
Statements comply with the Ind AS specified under
Section 133 of the Act.
e) On the basis of the written representations received
from the directors as on 1st April 2025 and 8th April
2025 taken on record by the Board of Directors,
none of the directors is disqualified as on 31st
March, 2025 from being appointed as a director in
terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal
financial controls with reference to Standalone
Financial Statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in “Annexure A". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's
internal financial controls with reference to
Standalone Financial Statements.
g) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of Section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations given
to us, the remuneration paid by the Company to its
directors during the year is in accordance with the
provisions of Section 197 read with Schedule V of
the Act.
h) 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,
as amended 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 Standalone Financial Statements - Refer
Notes 33.3, 33.4 and 34 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 an amount of C 2 crore
which are held in abeyance due to pending
legal cases.
iv. (a) The Management has represented
that, to the best of its knowledge and
belief, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the Company to or in any other
person(s) or entity(ies), including
foreign entities (“Intermediaries"), with
the understanding, whether recorded
in writing or otherwise, that the
Intermediary shall, directly or indirectly
lend or invest in other persons or entities
identified in any manner whatsoever by
or on behalf of the Company (“Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.
(b) The Management has represented,
that, to the best of its knowledge and
belief, no funds have been received
by the Company from any person(s)
or entity(ies), including foreign
entities (“Funding Parties"), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall, directly or indirectly, lend or invest
in other persons or entities identified
in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.
(c) Based on the audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come to our
notice that has caused us to believe that
the representations under sub-clause
(i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any
material misstatement.
v. The final dividend proposed in the previous
year, declared and paid by the Company
during the year is in accordance with Section
123 of the Act, as applicable.
As stated in Note 41 to the Standalone Financial Statements, the Board of Directors of the Company has proposed
final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting.
Such dividend proposed is in accordance with Section 123 of the Act, as applicable.
vi. Based on our examination, which included test checks, the Company has used accounting software systems for
maintaining its books of account for the year ended 31st March, 2025 which have the feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in
the software systems. Further, during the course of our audit we did not come across any instance of the audit
trail feature being tampered with, and the audit trail has been preserved by the Company as per the statutory
requirements for record retention.
2. As required by the Companies (Auditor's Report) Order, 2020 (“the Order") issued by the Central Government of India 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.
For Deloitte Haskins & Sells LLP For Chaturvedi & Shah LLP
Chartered Accountants Chartered Accountants
Firm's Registration No. 117366W/W-100018 Firm's Registration No. 101720W/W-100355
Abhijit A. Damle Sandesh Ladha
Partner Partner
Membership No.102912 Membership No. 047841
UDIN: 25102912BMLCDE3576 UDIN: 25047841BMIHNG1591
Place: Mumbai Place: Mumbai
Date: April 25, 2025 Date: April 25, 2025
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