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« Mar 13
Auditor's Report (Reliance Industries) Year End : Mar '14
We have audited the accompanying financial statements of Reliance
 Industries Limited (the Company), which comprise the Balance Sheet as
 at March 31,2014, the Statement of Profit and Loss and Cash Flow
 Statement for the year then ended, and a summary of significant
 accounting policies and other explanatory information.
 
 MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
 
 The Companys Management is responsible for the preparation of these
 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 Standards notified under the Companies
 Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
 September, 2013 of the Ministry of Corporate Affairs in respect of
 Section 133 of the Companies Act, 2013 and in accordance with the
 accounting principles generally accepted in India. This responsibility
 includes the design, implementation and maintenance of internal control
 relevanttothe 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.
 
 AUDITORSRESPONSIBILITY
 
 Our responsibility is to express an opinion on these financial
 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 financial statements are free
 from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and disclosures in the financial statements. The procedures
 selected depend on the auditors 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 control relevant to the Companys preparation and
 fair presentation of the financial statements in order to design audit
 procedures that are appropriate in the circumstances, but not for the
 purpose of expressing an opinion on the effectiveness of the Companys
 internal control. An audit also includes evaluating the appropriateness
 of accounting policies used and the reasonableness of the accounting
 estimates made by management, as well as evaluating the overall
 presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion.
 
 OPINION
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the aforesaid
 
 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:
 
 (a) In the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31,2014;
 
 (b) In the case of the Statement of Profit and Loss, of the profit of
 the Company for the year ended on that date; and
 
 (c) In the case of the Cash Flow Statement, of the cash flows of the
 Company for the year ended on that date.
 
 REPORTONOTHERLEGAL AND REGULATORY REQUIREMENTS
 
 1.  As required by the Companies (Auditors Report) Order, 2003 (the
 Order) issued by the Central Government of India in terms of Section
 227(4A) of the Act, we give in the Annexure a statement on the matters
 specified in paragraphs 4 and 5 of the Order.
 
 2.  As required by Section 227(3) of the Act, we report that:
 
 a.  We have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit;
 
 b.  In our opinion, proper books of account as required by law have
 been kept by the Company so far as appears from our examination of
 those books.
 
 c.  The Balance Sheet, the Statement of Profit and Loss, and the Cash
 Flow Statement dealt with by this Report are in agreement with the
 books of account.
 
 d.  In our opinion, the Balance Sheet, the Statement of Profit and
 Loss, and the Cash Flow Statement comply with Accounting Standards
 notified under the Act read with the General Circular 15/2013 dated
 13th September, 2013 of the Ministry of Corporate Affairs in respect of
 Section 133 of the Companies Act, 2013
 
 e.  On the basis of the written representations received from the
 directors as on March 31,2014, taken on record by the Board of
 Directors, none of the directors is disqualified as on March 31,2014,
 from being appointed as a director in terms of Section 274(1 )(g) of
 the Act.
 
 1.  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
 physical verification.
 
 c) In our opinion, the Company has not disposed off a substantial part
 of its fixed assets during the year and the going concern status of the
 Company is not affected.
 
 2.  In respect of its inventories:
 
 a) The inventories have been physically verified during the year by the
 management. In our opinion, the frequency of verification is reasonable.
 
 b) In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of inventories
 followed by the management are reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 c) The Company has maintained proper records of inventories. As
 explained to us, there were no material discrepancies noticed on
 physical verification of inventories as compared to the book records.
 
 3.  In respect of the loans, secured or unsecured, granted or taken by
 the Company to/from companies, firms or other parties covered in the
 register maintained under Section 301 of the Companies Act, 1956:
 
 a) The Company has given loans to two subsidiaries.  In respect of the
 said loans, the maximum amount outstanding at any time during the year
 was Rs. 20,955 crore and the year-end balance is Rs. 18,941 crore
 (including interest free loan of Rs. 13,454 crore).
 
 b) In our opinion and according to the information and explanations
 given to us, the rate of interest and other terms and conditions of the
 loans given by the Company, are not prima facie prejudicial to the
 interest of the Company.
 
 c) The principal amounts are repayable over a period of three to five
 years, while the interest is payable annually, both at the discretion
 of the Company.
 
 d) In respect of the said loans and interest thereon, there are no
 overdue amounts.
 
 e) The Company has not taken any loan during the year from companies,
 firms or other parties covered in the Register maintained under Section
 301 of the Companies Act, 1956. Consequently, the requirements of
 Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
 applicable.
 
 4.  In our opinion and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the Company and the nature of its business for the
 purchases of inventory and fixed assets and for the sale of goods and
 services. During the course of our audit, we have not observed any
 continuing failure to correct major weaknesses in such internal control
 system.
 
 5.  In respect of the contracts or arrangements referred to in Section
 301 of the Companies Act, 1956:
 
 (a) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements that need to be entered in the register maintained under
 Section 301 of the Companies Act, 1956 have been so entered.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts /
 arrangements entered in the Register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value ofRs. 5,00,000 in respect
 of each party during the year have been made at prices which appear
 reasonable as per information available with the Company.
 
 6.  According to the information and explanations given to us, the
 Company has not accepted any deposit from the public. Therefore, the
 provisions of Clause (vi) of paragraph 4 of the Order are not
 applicable to the Company.
 
 7.  In our opinion, the Company has an internal audit system
 commensurate with the size and nature of its business.
 
 8.  We have broadly reviewed the cost records maintained by the Company
 pursuant to the Companies (Cost Accounting Records) Rules, 2011
 prescribed by the Central Government under Section 209(1 )(d) of the
 Companies Act, 1956 and are of the opinion that prima fade the
 prescribed 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.
 
 9.  In respect of statutory dues:
 
 a) According to the records of the Company, undisputed statutory dues
 including Provident Fund, Investor Education and Protection Fund,
 Employees State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
 Tax, Customs Duty, Excise Duty, 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, 2014 for a period of more than six months
 from the date of becoming payable. Amounts due and outstanding for a
 period exceeding 6 months as at March 31, 2014 to be credited to
 Investor Education and Protection Fund of Rs. 12 crore, which are held in
 abeyance due to pending legal cases, have not been considered.
 
 b) Details of dues of Sale Tax, Custom Duty and Excise Duty which have 
 not been deposited as on March 31,2014 on account of disputes are given
 below:
 
 Sr.  Name of the    Nature 
                     of the     Amount   Period to 
                                         which the     Forum where
                                                       dispute is
 No   Statute        Dues      (Rs. in
                                         amount 
                                         relates       pending
                                crore)
 
 1.   Central
      Excise         Excise 
                     Duty and     17     Various
                                         Years from    Commissioner of
      Act, 1944      Service
                     Tax                 1990-91 to 
                                         2012-13       Central Excise
                                                      (Appeals)
 
                                 132     Various 
                                         years from    Central Excise
                                                       & Service
                                         1991-92 to
                                         2012-13       Tax Appellate
                                                       Tribunal
 
                                   1     1982-83 to 
                                         1985-86       Supreme Court
 
 2.   Central 
      Sales Tax      Sales Tax
                     /VAT         60     Various 
                                         years from    Joint/Deputy
      Act,1956    
      and            and Entry
                     Tax                 1991-92 to
                                         2009-10       Commissioner/
      Sales Tax
      Acts                                             Commissioner
                                                      (Appeals)
      of various
      states
 
                                  488    Various
                                         years from    Sales Tax 
                                                       Appellate 
                                         1993-94 to
                                         2008-09       Tribunal
 
                                  125    Various
                                         years         High Court
                                         from 1994-95
                                         to 2009-10
 
                                    1    2007-08 to
                                         2008-09       Supreme Court
 
 3.   Customs        Custom
                     Duty          20    2007-08       Central Excise
                                                       & Service
      Act, 1962                                        Tax Appellate
                                                       Tribunal
 
      TOTAL                       844
 
 10.  The Company does not have accumulated losses at the end of the
 financial year. The Company has not incurred cash losses during the
 financial year covered by the audit and in the immediately preceding
 financial year.
 
 11.  Based on our audit procedures and according to the information and
 explanations given to us, we are of the opinion that the Company has
 not defaulted in repayment of dues to financial institutions, banks and
 debenture holders.
 
 12.  In our opinion and according to the explanations given to us and
 based on the information available, no loans and advances have been
 granted by the Company on the basis of security by way of pledge of
 shares, debentures and other securities.
 
 13.  In our opinion, the Company is not a chit fund/nidhi/ mutual
 benefit fund/ society. Therefore, the provisions of clause (xiii) of
 paragraph 4 of the Order are not applicable to the Company.
 
 14.  The Company has maintained proper records of the transactions and
 contracts in respect of dealing or trading in shares, securities,
 debentures and other investments and timely entries have been made
 therein.  All shares, securities, debentures and other investments have
 been held by the Company in its own name.
 
 15.  The Company has given guarantees for loans taken by Others from
 banks and financial institutions. According to the information and
 explanations given to us, we are of the opinion that the terms and
 conditions thereof are not prima facie prejudicial to the interest of
 the Company.
 
 16.  The Company has raised new term loans during the year.  The term
 loans outstanding at the beginning of the year and those raised during
 the year have been applied for the purposes for which they were raised.
 
 17.  According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, we are of
 the opinion that there are no funds raised on short-term basis that
 have been used for long-term investment.
 
 18.  The Company has not made any preferential allotment of shares to
 parties and companies covered in the Register maintained under Section
 301 of the Companies Act, 1956.
 
 19.  The Company has created securities /charges in respect of secured
 debentures issued.
 
 20.  The Company has not raised any monies by way of public issues
 during the year.
 
 21.  In our opinion and according to the information and explanations
 given to us, no material fraud on or by the Company has been noticed or
 reported during the year.
 
 For Chaturvedi & Shah   For Deloitte Haskms 
                         & Sells LLP              For Rajendra & Co.
 
 Chartered Accountants   Chartered Accountants    Chartered Accountants
 
 (Registration No. 
 101720W)               (Registration No.
                         117366W/W-100018)       (Registration No.
                                                  108355W)
 
 D. Chaturvedi           A. B.Jani                A. R. Shah
 
 Partner                 Partner                  Partner
 
 Membership No.: 5611    Membership No.: 46488    MembershipNo.:47166
 
 Mumbai
 
 Date: April 18,2014
Source : Dion Global Solutions Limited
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