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Reliance Industries Limited: Name - Pooja Deotale PRN - 21021241098 Under The Guidance of Dr. Veerma Puri
Reliance Industries Limited: Name - Pooja Deotale PRN - 21021241098 Under The Guidance of Dr. Veerma Puri
1
AS 10: ACCOUNTIG FOR FIXED ASSETS
Fixed assets are more elaborately defined under IAS and US GAAP. For
example, according to IAS-16, an item of property, plant and equipment should
be recognised as an asset when (a) it is probable that future economic benefits
associated with the asset will flow to the enterprise; and (b) the cost of the
asset to the enterprise can be measured reliably. Though these provisions not
2
contained in AS-10 it is assumed that they would apply even in the Indian
situation. US GAAP does not permit revaluation of fixed assets. As regards
upward revaluation of fixed assets, IAS-16 permits it as an alternative
treatment. Revaluation is also permitted under AS-10, such as (a) IAS provides
more detail guidelines than AS-10 on revaluation principles (b) Under IAS-16,
revaluations are required to be done with sufficient regularity such that their
carrying amount do not differ materially from the fair values. There is no such
requirement in AS-10. IAS-16 also states that annual revaluations are
important where fixed asset fair values are subject to significant volatility,
otherwise a revaluation every three or five year is sufficient.
Under AS-10 if the interval between the date a project is ready to commence
commercial production and the date at which commercial production actually
begins is prolonged, all expenses (other than borrowing costs) incurred during
this period are charged to the profit and loss statement. However, the
expenditure incurred during this period is also sometimes treated as deferred
revenue expenditure to be amortised over a period not exceeding 3 to 5 years
after the commencement of commercial production. Under IAS/US GAAP
deferral of expenditure is not permitted, and all expenses incurred in these
circumstances are charged to the profit and loss account.
INTANGIBLE ASSETS
3
Recognition and Initial Measurement of an Intangible Assets
The financial statements should disclose the aggregate amount of research and
development expenditure recognised as an expense during the period.
Research and development expenditure comprises all expenditure that is
directly attributable to research or development activities or that can be
allocated on a reasonable and consistent basis to such activities.
BASIS OF PREPARATION
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2015 as amended and other relevant provisions of the Act and accounting
principles generally accepted in India. These consolidated financial statements
have been prepared on an accrual basis and under the historical cost basis,
except otherwise stated. These Consolidated Financial Statements for the year
ended 31 March 2021 have been reviewed by the Audit Committee and
subsequently approved by Company’s Board of Directors at its meeting held on
30 April 2021.
Use of estimates and judgements
The preparation of consolidated financial statements in conformity with Ind AS
requires management to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses and the disclosure of contingent
liabilities on the date of the financial statements. Actual results could differ
from those estimates. Estimates and under lying assumptions are reviewed on
an ongoing basis. Any revision to accounting estimates is recognized
prospectively in current and future periods.
5
Accounting standards of
Reliance industries
Limited
FY 2020-21
1. Company overview
6
Reliance Industries Limited (RIL) is Indian multinational conglomerate
company, headquartered Indian multinational conglomerate company,
headquartered in Mumbai, India. RIL's diverse businesses
include energy, petrochemicals, gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalisation, and the
largest company in India as measured by revenue after recently surpassing
the government-owned Indian Oil Corporation. It is also the eighth largest
employer in India with over 236,000 employees. RIL has a market capitalisation
of 228 billion $ as of September 2021.
The company is ranked 155th on the Fortune Global 500 list of the world's
biggest corporations as of 2021. Reliance continues to be India's largest
exporter, accounting for 8% of India's total merchandise exports and access to
markets in over 100 countries. Reliance is responsible for almost 5% of the
government of India's total revenues from customs and excise duty. It is also
the highest income tax payer in the private sector in India.
7
intended use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the assets. In case of land
the Company has availed fair value as deemed cost on the date of transition to
Ind AS. Subsequent costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Property, Plant and Equipment which are
significant to the total cost of that item of Property, Plant and Equipment and
having different useful life are accounted separately. Other Indirect Expenses
incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre-operative
expenses and disclosed under Capital Work-in-Progress. Depreciation on
Property, Plant and Equipment is provided using written down value method
on depreciable amount except in case of certain assets from Refining and
Petrochemical segment & SEZ units/developer which are depreciated using
straight-line method. Depreciation is provided based on useful life of the assets
as prescribed in Schedule II to the Companies Act, 2013 except in respect of
the following assets, where useful life is different than those prescribed in
Schedule II
The residual values, useful lives and methods of depreciation of Property, Plant
and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate. Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.
4. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes,
trade discount and rebates less accumulated amortization/depletion and
impairment losses, if any. Such cost includes purchase price, borrowing costs,
and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
Intangible Assets. Subsequent costs are included in the asset’s carrying amount
or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
8
the cost can be measured reliably. Other Indirect Expenses incurred relating to
project, net of income earned during the project development stage prior to its
intended use, are considered as pre-operative expenses and disclosed under
Intangible Assets Under Development. Gains or losses arising from
derecognition of an Intangible Asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized.
The Company’s intangible assets comprise assets with finite useful life which
are amortized on a straight-line basis over the period of their expected useful
life.
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Balance Sheet
10
Financial Statement
Reference - https://www.ril.com/getattachment/57c07cd8-3cba-457b-a972-
c02524df79b6/AnnualReport_2020-21.aspx
11
Accounting standards of
Reliance industries
Limited
FY 2018-19
1. Company overview
Reliance Industries Limited (RIL) is Indian multinational conglomerate
company, headquartered Indian multinational conglomerate company,
12
headquartered in Mumbai, India. RIL's diverse businesses
include energy, petrochemicals, gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalisation, and the
largest company in India as measured by revenue after recently surpassing
the government-owned Indian Oil Corporation. It is also the eighth largest
employer in India with over 236,000 employees. RIL has a market capitalisation
of 228 billion $ as of September 2021.
The company is ranked 155th on the Fortune Global 500 list of the world's
biggest corporations as of 2021. Reliance continues to be India's largest
exporter, accounting for 8% of India's total merchandise exports and access to
markets in over 100 countries. Reliance is responsible for almost 5% of the
government of India's total revenues from customs and excise duty. It is also
the highest income tax payer in the private sector in India.
13
arising from exchange rate variations attributable to the assets. In case of land
the Company has availed fair value as deemed cost on the date of transition to
Ind AS. Subsequent costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Property, Plant and Equipment which are
significant to the total cost of that item of Property, Plant and Equipment and
having different useful life are accounted separately. Other Indirect Expenses
incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre-operative
expenses and disclosed under Capital Work-in-Progress. Depreciation on
Property, Plant and Equipment is provided using written down value method
on depreciable amount except in case of certain assets from Refining and
Petrochemical segment & SEZ units/developer which are depreciated using
straight-line method. Depreciation is provided based on useful life of the assets
as prescribed in Schedule II to the Companies Act, 2013 except in respect of
the following assets, where useful life is different than those prescribed in
Schedule II
The residual values, useful lives and methods of depreciation of Property, Plant
and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate. Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.
4. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes,
trade discount and rebates less accumulated amortization/depletion and
impairment losses, if any. Such cost includes purchase price, borrowing costs,
and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
Intangible Assets. Subsequent costs are included in the asset’s carrying amount
or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
14
the cost can be measured reliably. Other Indirect Expenses incurred relating to
project, net of income earned during the project development stage prior to its
intended use, are considered as pre-operative expenses and disclosed under
Intangible Assets Under Development. Gains or losses arising from
derecognition of an Intangible Asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized.
The Company’s intangible assets comprise assets with finite useful life which
are amortized on a straight-line basis over the period of their expected useful
life.
15
Balance Sheet
Financial Statement
16
Reference
- https://www.ril.com/getattachment/299caec5-2e8a-43b7-8f70-d633a150d07e/
AnnualReport_2019-20.aspx
17
Accounting standards of
Reliance industries
Limited
FY 2018-19
1. Company overview
Reliance Industries Limited (RIL) is Indian multinational conglomerate
company, headquartered Indian multinational conglomerate company,
18
headquartered in Mumbai, India. RIL's diverse businesses
include energy, petrochemicals, gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalisation, and the
largest company in India as measured by revenue after recently surpassing
the government-owned Indian Oil Corporation. It is also the eighth largest
employer in India with over 236,000 employees. RIL has a market capitalisation
of 228 billion $ as of September 2021.
The company is ranked 155th on the Fortune Global 500 list of the world's
biggest corporations as of 2021. Reliance continues to be India's largest
exporter, accounting for 8% of India's total merchandise exports and access to
markets in over 100 countries. Reliance is responsible for almost 5% of the
government of India's total revenues from customs and excise duty. It is also
the highest income tax payer in the private sector in India.
19
arising from exchange rate variations attributable to the assets. In case of land
the Company has availed fair value as deemed cost on the date of transition to
Ind AS. Subsequent costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Property, Plant and Equipment which are
significant to the total cost of that item of Property, Plant and Equipment and
having different useful life are accounted separately. Other Indirect Expenses
incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre-operative
expenses and disclosed under Capital Work-in-Progress. Depreciation on
Property, Plant and Equipment is provided using written down value method
on depreciable amount except in case of certain assets from Refining and
Petrochemical segment & SEZ units/developer which are depreciated using
straight-line method. Depreciation is provided based on useful life of the assets
as prescribed in Schedule II to the Companies Act, 2013 except in respect of
the following assets, where useful life is different than those prescribed in
Schedule II
The residual values, useful lives and methods of depreciation of Property, Plant
and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate. Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.
4. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes,
trade discount and rebates less accumulated amortization/depletion and
impairment losses, if any. Such cost includes purchase price, borrowing costs,
and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
Intangible Assets. Subsequent costs are included in the asset’s carrying amount
or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
20
the cost can be measured reliably. Other Indirect Expenses incurred relating to
project, net of income earned during the project development stage prior to its
intended use, are considered as pre-operative expenses and disclosed under
Intangible Assets Under Development. Gains or losses arising from
derecognition of an Intangible Asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized.
The Company’s intangible assets comprise assets with finite useful life which
are amortized on a straight-line basis over the period of their expected useful
life.
21
benefits will flow to the entity and the costs of the asset can be measured
reliably, else it is charged to the Statement of Profit and Loss
Balance Sheet
22
Financial Statement
Reference
https://www.ril.com/getattachment/0461b91d-61ce-44d3-8a8c-3918a9b32ff7/AnnualReport_2018-
19.aspx
23
Accounting standards of
Reliance industries
Limited
FY 2017-18
24
1. Company overview
Reliance Industries Limited (RIL) is Indian multinational conglomerate
company, headquartered Indian multinational conglomerate company,
headquartered in Mumbai, India. RIL's diverse businesses
include energy, petrochemicals, gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalisation, and the
largest company in India as measured by revenue after recently surpassing
the government-owned Indian Oil Corporation. It is also the eighth largest
employer in India with over 236,000 employees. RIL has a market capitalisation
of 228 billion $ as of September 2021.
The company is ranked 155th on the Fortune Global 500 list of the world's
biggest corporations as of 2021. Reliance continues to be India's largest
exporter, accounting for 8% of India's total merchandise exports and access to
markets in over 100 countries. Reliance is responsible for almost 5% of the
government of India's total revenues from customs and excise duty. It is also
the highest income tax payer in the private sector in India.
25
Property, Plant and Equipment are stated at cost, net of recoverable taxes,
trade discount and rebates less accumulated depreciation and impairment
losses, if any. Such cost includes purchase price, borrowing cost and any cost
directly attributable to bringing the assets to its working condition for its
intended use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the assets. In case of land
the Company has availed fair value as deemed cost on the date of transition to
Ind AS. Subsequent costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Property, Plant and Equipment which are
significant to the total cost of that item of Property, Plant and Equipment and
having different useful life are accounted separately. Other Indirect Expenses
incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre-operative
expenses and disclosed under Capital Work-in-Progress. Depreciation on
Property, Plant and Equipment is provided using written down value method
on depreciable amount except in case of certain assets from Refining and
Petrochemical segment & SEZ units/developer which are depreciated using
straight-line method. Depreciation is provided based on useful life of the assets
as prescribed in Schedule II to the Companies Act, 2013 except in respect of
the following assets, where useful life is different than those prescribed in
Schedule II
The residual values, useful lives and methods of depreciation of Property, Plant
and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate. Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.
4. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes,
trade discount and rebates less accumulated amortization/depletion and
impairment losses, if any. Such cost includes purchase price, borrowing costs,
and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and
26
adjustments arising from exchange rate variations attributable to the
Intangible Assets. Subsequent costs are included in the asset’s carrying amount
or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Other Indirect Expenses incurred relating to
project, net of income earned during the project development stage prior to its
intended use, are considered as pre-operative expenses and disclosed under
Intangible Assets Under Development. Gains or losses arising from
derecognition of an Intangible Asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized.
The Company’s intangible assets comprise assets with finite useful life which
are amortized on a straight-line basis over the period of their expected useful
life.
27
5. Research and Development
Revenue expenditure pertaining to research is charged to the Statement of
Profit and Loss as and when incurred. Development costs are capitalized as an
intangible asset if it can be demonstrated that the project is expected to
generate future economic benefits, it is probable that those future economic
benefits will flow to the entity and the costs of the asset can be measured
reliably, else it is charged to the Statement of Profit and Loss
Balance Sheet
28
Financial Statement
29
Reference
https://www.ril.com/getattachment/e5d8ddac-3899-4a0f-beb5-
aa7f8100010c/AnnualReport_2017-18.aspx
30
Accounting standards of
Reliance industries
Limited
FY 2016-17
31
1. Company overview
Reliance Industries Limited (RIL) is Indian multinational conglomerate
company, headquartered Indian multinational conglomerate company,
headquartered in Mumbai, India. RIL's diverse businesses
include energy, petrochemicals, gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalisation, and the
largest company in India as measured by revenue after recently surpassing
the government-owned Indian Oil Corporation. It is also the eighth largest
employer in India with over 236,000 employees. RIL has a market capitalisation
of 228 billion $ as of September 2021.
The company is ranked 155th on the Fortune Global 500 list of the world's
biggest corporations as of 2021. Reliance continues to be India's largest
exporter, accounting for 8% of India's total merchandise exports and access to
markets in over 100 countries. Reliance is responsible for almost 5% of the
government of India's total revenues from customs and excise duty. It is also
the highest income tax payer in the private sector in India.
32
3.Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, net of recoverable taxes,
trade discount and rebates less accumulated depreciation and impairment
losses, if any. Such cost includes purchase price, borrowing cost and any cost
directly attributable to bringing the assets to its working condition for its
intended use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the assets. In case of land
the Company has availed fair value as deemed cost on the date of transition to
Ind AS. Subsequent costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Property, Plant and Equipment which are
significant to the total cost of that item of Property, Plant and Equipment and
having different useful life are accounted separately. Other Indirect Expenses
incurred relating to project, net of income earned during the project
development stage prior to its intended use, are considered as pre-operative
expenses and disclosed under Capital Work-in-Progress. Depreciation on
Property, Plant and Equipment is provided using written down value method
on depreciable amount except in case of certain assets from Refining and
Petrochemical segment & SEZ units/developer which are depreciated using
straight-line method. Depreciation is provided based on useful life of the assets
as prescribed in Schedule II to the Companies Act, 2013 except in respect of
the following assets, where useful life is different than those prescribed in
Schedule II
The residual values, useful lives and methods of depreciation of Property, Plant
and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate. Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.
4. Intangible Assets
33
Intangible Assets are stated at cost of acquisition net of recoverable taxes,
trade discount and rebates less accumulated amortization/depletion and
impairment losses, if any. Such cost includes purchase price, borrowing costs,
and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
Intangible Assets. Subsequent costs are included in the asset’s carrying amount
or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the entity and
the cost can be measured reliably. Other Indirect Expenses incurred relating to
project, net of income earned during the project development stage prior to its
intended use, are considered as pre-operative expenses and disclosed under
Intangible Assets Under Development. Gains or losses arising from
derecognition of an Intangible Asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized.
The Company’s intangible assets comprise assets with finite useful life which
are amortized on a straight-line basis over the period of their expected useful
life.
34
5. Research and Development
Revenue expenditure pertaining to research is charged to the Statement of
Profit and Loss as and when incurred. Development costs are capitalized as an
intangible asset if it can be demonstrated that the project is expected to
generate future economic benefits, it is probable that those future economic
benefits will flow to the entity and the costs of the asset can be measured
reliably, else it is charged to the Statement of Profit and Loss
35
Balance Sheet
Financial statement
36
Reference
https://www.ril.com/getattachment/eb54f023-334f-4763-9f4a-dde72d315edb/AnnualReport_2016-
17.aspx
37
The company has been following the same method for depreciation –
Pro rata basis and for amortization – Straight Line Basis for 5 years. This
indicates that the company has been consistent with its method.
ADOPTION 5/5
PRESENTATION 5/5
CONSISTENCY 5/5
38