Table of contents

1 Company Information

2 Management Discussion and Analysis

20 Board’s Report

36 Standalone Financial Statements

37 Independent Auditor’s Report
44 Balance Sheet
45 Statement of Profit and Loss
46 Statement of Changes in Equity
47 Cash Flow Statement
48 Notes on Financial Statements

74 Consolidated Financial Statements

75 Independent Auditor’s Report
on Financial Statements .
81 Balance Sheet
82 Statement of Profit and Loss
83 Statement of Changes in Equity
84 Cash Flow Statement
85 Notes on Financial Statements
123 Salient features of Financial Statements
of subsidiary as per Companies Act,
2013

125 Notice
Company Information

Board of Directors Committees

Non-Executive Director Audit Committee Chief Financial Officer
Mukesh Dhirubhai Ambani (Chairman) Adil Siraj Zainulbhai (Chairman) Dinesh Thapar
Manoj Harjivandas Modi Manoj Harjivandas Modi
Akash Mukesh Ambani Dipak Chand Jain Company Secretary and
Ranjit Vasant Pandit Compliance Officer
Isha Mukesh Ambani
Sridhar Kothandaraman
Pankaj Mohan Pawar Pankaj Mohan Pawar
Venkatachalam Subramaniam Auditor
Nomination and Remuneration
Deloitte Haskins & Sells LLP
Independent Director Committee
Adil Siraj Zainulbhai Ranjit Vasant Pandit
Registered Office
Dipak Chand Jain (Chairman) Manoj Harjivandas
th
Modi 4 Floor, Court
Ranjit Vasant Pandit
Adil Siraj House, Lokmanya
Tilak Marg,
Zainulbhai Dipak
Dhobi Talao, Mumbai – 400002
Chand Jain
CIN: U51909MH2006PLC166166
Website : www.relianceretail.com
Corporate Social Responsibility
E-mail: Sridhar.Kothandaraman@ril.com
Committee
Tel : +91 22 35553800
Adil Siraj Zainulbhai (Chairman)
Isha Mukesh Ambani
Share Transfer Agent
Dipak Chand Jain
KFin Technologies Private
Finance Committee Limited (Formerly Known as
Manoj Harjivandas Modi Karvy Fintech Private Limited)
(Chairman) Akash Mukesh Ambani Selenium Tower B, Plot 31-32,
Isha Mukesh Ambani Gachibowli, Financial District,
Venkatachalam Nanakramguda, Hyderabad - 500 032.
Subramaniam Pankaj Mohan Website : www.kfintech.com
Pawar E-Mail : rrvl.investor@kfintech.com
Tel. : +91 40 6716 1700
Risk Management Committee Toll Free No. : 1800 309
Ranjit Vasant Pandit (Chairman) 8998 (From 9:00 a.m. to
Venkatachalam Subramaniam 6:00p.m.) Fax : +91 40 6716
Pankaj Mohan Pawar 1680

Dinesh Thapar
Ashwin Ahamendra Khasgiwala
Reliance Retail Ventures Limited
Management Discussion and
Analysis 2020-21

Reliance Retail Ventures Limited

Reliance Retail was founded with a view to
revolutionise retail in India. Today, it is the largest,
fastest growing and most profitable retail company
in India with diversified omni-channel presence
through integrated store concepts and digital
commerce platforms. It is the only Indian retailer to
feature in ‘Global Powers of Retailing’.

As a market leader, Reliance Retail caters to five

key consumption baskets

1 Consumer Electronics 4 Pharma Retail

2 Fashion & Lifestyle 5 Connectivity
3 Grocery

1,00,000+
Customers served every hour
and growing fast

Reach

156 million 7,000+ 6401 million

Registered Loyal Cities Footfalls
Customer Base

Scale

12,71 33.8 million Sq. 2,00,000+

1 ft
Employees

Retail Stores
Retail Space

Infrastructure

263 272 million cu. 1.4million

Warehouses
Route kms
and Distribution
ft. moved per day
Centres
Of warehousing
space
1. FY 2019-20 number being used in view of FY 2020-21 year being disruptive
Management Discussion and Analysis Business Overview

Performance
Vision
To be the most admired and successful retail company in India that
Summary
enhances the quality of life of every Indian. REVENUE
(` in crore)
Mission 1,62,936
1,57,629
• Provide millions of customers with unlimited choice, outstanding 1,30,566

value proposition, superior quality and unmatched experience

across the full spectrum of products and services
• Serve the entire spectrum of Indian society i.e. from households,
kiranas and merchants, to small and medium enterprises
and institutions
• Reach the length and breadth of the country through our physical
and digital distribution platforms
• Be the partner of choice and enable win-win opportunities for our
ecosystem across producers, small and medium enterprises, brand
companies and global suppliers
• Generate direct and indirect employment opportunities with skill
transformation and talent development on an unprecedented scale FYFYFY 2019 2020
2021

Strategic Advantages EBITDA

and Competitive (` in crore)

9,683 9,789

Strengths
6,218

India’s only true Deep understanding

national retailer with of India and Bharat,
the widest coverage serving all consumption
baskets
FYFYFY 2019 2020
2021

Unmatched retail Partner to producers,

capabilities: End-to-end MSMEs, national, RETAIL STORES
value chain, design, regional, local and (nos.)
merchandising, global brands
own brands 12,711
11,784
10,415

Extensive supply chain Deep technologies and

infrastructure data intelligence at the
core

FYFYFY 2019 2020

2021
Best-in-class and Talent and organisation
scalable project to power operations
execution
Reliance Retail Ventures Limited
4
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STATEMENTS

Operating Framework
Reliance Retail’s guiding philosophy rests on the tenets of inclusive growth and building sustainable societal
value for millions of Indians.

An inclusive approach to retailing

Investing in Design and Customer

Development
Insights Design Expertise Brands Product Innovation / Solutions

Network of
Developing Sourcing Ecosystem Vendor Development
Producers,Local Regional and National Brands
MSMEsManufacturers

Widest Reach Efficient Last Mile

Building Supply Chain Infrastructure
State-of-the-artTechnology Enabled

Pan-India Network
Physical Stores Digital Platforms
Expanding Retail Network

Electronics Grocery Trusted Partners

Empowering Merchants
FashionPharmacy

Better Experience
Benefiting Consumers

• Reliance Retail has set up and

• The business is investing in • The New Commerce model seeks
continues to invest in building
building state-of-the-art supply to partner with millions of
design and product development
chain infrastructure in India by unorganised merchants through an
centres
linking all major sourcing locations inclusive model of growth while
to offer relevant, contemporary through an automated, modular, digitally enabling and empowering
and high quality products to meet
reliable and scalable warehousing, them, and offering them a
the diverse needs of its customers
logistics and last mile fulfilment compelling value proposition to
• Reliance Retail’s sourcing ecosystem grow their
ecosystem works with small
• Reliance Retail’s selling businesses and earnings. Together,
producers and manufacturers
ecosystem comprises a vast it will serve millions of households
(SMBs), regional, national and
network of stores and digital and customers across the country
international brands.
commerce platforms to serve • Reliance Retail provides
In particular, it supports small customers across the length and employment to tens of thousands
producers to modernise their
breadth of the country of people, bringing joy and pride to
operations, minimise inefficiencies
their families while enabling
and reduce leakages
livelihoods
for many others
Annual Report 2020-21 5
Highlights FY 2020-21

Reinforced and enhanced safety

and hygiene standards across
the breadth of Reliance Retail’s
operations with the emergence
of the COVID-19 situation

Delivered revenues at par Registered loyal customer

with last year despite store base continues to grow,
closures and operational currently at 156 million, up
disruptions 25% y-o-y

EBITDA at an all-time
high, driven by business Opened 1,456 new stores, taking
rebound, cost the total store count to 12,711
management and with operated area spanning
investment income over 33.8 million sq. ft.

Strengthened digital commerce

and omni-channel capabilities
across all businesses of
Grocery, Consumer Electronics,
Fashion & Lifestyle and Pharma

Launched India’s largest

hyperlocal platform, JioMart,
with presence in 200+ cities
6 Reliance Retail Ventures Limited
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STATEMENTS

New Commerce partnerships

with over a million
merchants across
consumption baskets

Forayed into pharma

retail; acquired online
pharmacy, Netmeds Created 65,000+ new jobs since
the onset of the pandemic

Executed India’s largest fund raise

in the consumer / retail sector from
marquee global investors,
reflecting
the conviction in Reliance Retail’s track
record, operating model and prospects

Stepped up Lifestyle
play through the
acquisition of Urban
Ladder and Zivame
Annual Report 2020-21 7
Management Discussion and Analysis Business Overview

Industry Overview
India’s retail market is estimated at US$822 billion in FY 2019-20 and is expected to grow at a CAGR of 10% over the
next five years to reach US$1,315 billion by FY 2024-25. The penetration of organised retail market is estimated at 11%
in FY 2019-
20 and is expected to grow to 18% by FY 2024-25. The organised retail market is estimated at US$88 billion in FY
2019-20 and is expected to grow at a CAGR of 19% over the next five years to reach US$231 billion by FY 2024-25.
The unorganised retail market is poised to grow to over US$1 trillion over this period, making it amongst the most
attractive consumer sector opportunities across the world.

Emerging Trends and Business Response

Description

Growth of Online Omni-channel Physical stores Evolving customer Transforming

Channel as a new normal remain a growth preferences and and empowering
Digital commerce Convergence of opportunity emergence of new unorganised retail
gained significant Physical and Physical stores categories Addressing supply
traction in the wake of Digital retail remain an Change in consumer side challenges and
lockdown/restrictions; emerging opportunity for behaviour leading to technology are key
likely to remain as the new normal expansion, particularly re-curation of product to transforming the
buoyant in smaller towns portfolios and boost unorganised retail
to select categories sector

How Reliance Retail is geared up?

Launched and
Strengthened Operates > 2/3rd of Design centres Creating an integrated
accelerated roll-out of
digital commerce its stores in Tier II enable development state-of-the-art supply
JioMart, India’s
and omni-channel and smaller tier of portfolio in chain infrastructure
largest hyperlocal
capabilities with towns. keeping with connecting all supply
solution.
all Reliance emerging trends. and demand markets.
During the year,
Activated Digital, fashion &
over half the Focus on Investing in technology-
reliancedigital.in for lifestyle and
expansion was developing own driven logistics and
electronics, scaled grocery stores
carried out in brand portfolio in last mile fulfilment
up AJIO in fashion & being omni-enabled.
smaller tier towns. categories such as infrastructure.
lifestyle and created
Stores are enabled health and
a range of mono- Over half the Rapid scale up
for fulfilment, immunity, boosting
brand sites for orders on digital of New
return, refund foods in grocery, and
premium and luxury platforms from Tier Commerce
(same or productivity devices
brands. II and smaller tier merchant partnerships.
different mode), and appliances in
towns.
Acquired house kiosk for consumer Developing a
Netmeds, Zivame, endless isle Partnerships with electronics. portfolio of own
and Urban Ladder experience and better unorganised brands
Re-curation of fashion
to offer a wider conversions, upsell retailers across for New Commerce.
portfolio with launch
portfolio. and cross-sell. categories and
of ‘Work from Home’, Building bonds,
geographies.
‘At Home Essentials’ digitally enabling
and Athleisure and empowering
collection. merchant partners.
8 Reliance Retail Ventures Limited
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STATEMENTS

Performance Update
partners to ensure continuity of
Financial, Non-Financial, Revenue Mix supplies even through the disruption
(In ` crore) FY 2020-21 FY 2019-20 % change in the broader environment.
y-o-y • In the lockdown period,
Value of sales and services 1,57,629 1,62,936 (3.3) Reliance Retail established itself
Revenue from operations 1,39,077 1,46,272 (4.9) as the ‘preferred’ partner to
EBITDA 9,789 9,683 1.1 kiranas by ensuring
EBITDA Margin(%)* 7.0 6.6 +40 bps uninterrupted supply of
Area operational (million sq. ft.) 33.8 28.7 essential items.
* EBITDA Margin is calculated on revenue from operations • The business generated
>65,000 new jobs even in a year
like this, bringing to life its
mission to
• Reliance Retail delivered a resilient and digital platform capabilities and enhance livelihoods, whilst enabling
performance against the backdrop scaling up New Commerce positive societal impact not just
of an unprecedented and • As operating curbs were for its employees but the broader
challenging operating environment, progressively lifted, new store ecosystem within which it operates
arising from the pandemic situation openings resumed with 1,456 • Reliance Retail invested in
that emerged at the start of the stores being added taking the total acquiring businesses including
financial year store count to 12,711 stores, leading physical/digital
• On a consolidated basis, Reliance covering 33.8 million sq.ft. at the commerce platforms like
Retail delivered Revenue of end of the year Netmeds, Urban Ladder and
`1,57,629 crore against `1,62,936 • The business continued to Zivame to augment business
crore for attract and serve millions of portfolio, drive operating
the previous year. The revenues customers across the country efficiencies and strengthen omni
were impacted on account of far and wide. The registered channel capabilities.
store closures (80% stores loyal customer base now stands • In what is the largest fund raise in
operational), lower footfalls (65% at 156 million, a growth of 25% the consumer/retail sector in India,
of last year) and operational y-o-y Reliance Retail raised `47,265
disruptions through the year • The business launched and crore for a 10.09% stake from
• At a consolidated EBITDA of `9,789 rapidly scaled-up JioMart and built marquee global investors
crore for FY 2020-21 against `9,683 last- mile fulfilment capacity a
rd
• Reliance Retail ranks 53 in the
crore for the previous year, the fresh to enable home delivery of list of Global Powers of Retailing
business posted an all-time high essentials across 200 cities. and is among the fastest
profit, driven by the gradual • JioMart has since grown to growing retailer in the world*
rebound of revenue streams, become India’s leading hyperlocal * As per Deloitte Global Powers of
judicious cost management Retailing 2021
delivery platform with more users,
initiatives and boosted by higher more orders, and more products
investment income with each passing month.
• The thrust on expansion and • The business leveraged the
transformation continued strength of our relationships with
particularly on strengthening omni- vendor
channel

DISTRIBUTION OF STORES IN INDIA

154 132
North

675 479
2,030 2,167
North East East

356 461

West
601
1,095
West South
South
 2,367 2,117

Consumer Electronics Fashion & Lifestyle Grocery

In addition to the above, there are 77 stores outside India.

Annual Report 2020-21

9
Management Discussion and Analysis Business Overview

Business Performance
Consumer Electronics
Overview

Reliance Retail is India’s largest consumer electronics retailer with an extensive network of 8
across 7,000+ towns.

Consumer electronic purchase often necessitates a ‘touch and feel’ of the product and in many cases involves demonstration, installat
Reliance Retail operates differentiated store concepts that are centred around ‘Service’, ‘Solution’ and ‘Consumer Experience’ personalisi
The stores house buying guides for discerning consumers simplifying product complexities. Guidance extended by expert store staff m

Differentiated Store Concepts for Consumer Electronics

New Age Digital Platforms

https://www.reliancedigital.in/
• Destination • Full-fledged after sales service arm • Reliance Digital’s online
consumer electronics • India’s first multi-product, multi- shopping website and app with
store brand and multi-location service presence across 1,340 cities
• Product experience zones network • Fully integrated
• 300+ national, international brands • End-to-end product omni- channel
• Differentiated value proposition life cycle support experience
• ISO certified service organisation
• Extending JioMart to consumer
electronics for providing a one-stop
shopping solution
• Smaller stores offering mobility
and communication devices
• Store presence in 7,000+ towns
• Extending reach by • Offering Reliance Digital’s
catalogue and web- assortment through hyper-
sales local fulfilment
10 Reliance Retail Ventures Limited
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Competitive Strengths Key Developments

Steady progress on Range of offerings across

expansion with 188 new categories under the
store openings licensed brands of BPL and
Kelvinator were launched
Activated
and rolled out across
1 www.reliancedigital.in,
Personalised selling backed up by general trade, including a
intuitive store designs and industry full network of Reliance
foray into the electricals
leading service levels Digital stores omni-enabled
category
with unmatched delivery
service across 19,000+ pin Reliance Digital has been
codes recognised as India’s
Only Electronics Retailer
Enabled fulfilment from
Superbrand award for
store inventory with over
the second consecutive
>95% orders delivered
2
Unmatched delivery proposition year
within six hours
enabling delivery within 24 hours
of purchase Broad-based growth across Reliance Digital won:
categories: laptops and
• Gold for ‘Digital
tablets, high-end
Marketing Excellence in
televisions, air care and
Social Media’ at Digixx
appliances
Awards 2020 by
Impactful festive activations, Adgully
successful campaign around
ResQ for solutions • ’Social Media App
3 affordability and new
encompassing end-to-end Effectiveness’ award
product life cycle requirements product launches delivered
at Global Customer
growth well ahead of the
Engagement
market
Awards 2020 by
Growth led by robust ACEF
performance in Tier II/III
towns

Key Highlights

4
Strong relationships with all the
1,100+ 4,000+
Laptops sold every day Installations by resQ
leading national and international
every day
brands

1,600+
High-end televisions
sold per day

5
Exclusive brand licences and own
brand products through Reconnect,
JioPhone and LYF

Annual Report 2020-21 11

Management Discussion and Analysis Business Overview

Business Performance
Fashion & Lifestyle
Overview Lux u Relian
Bran

Reliance Retail is the Premium

largest fashion retailer
Mid
in India with 2,850+ AJIO, Project
stores across 850+ EVE Marks &
Spencer
cities.
Economy
Trends, Trends Footwear
Trends Woman, Trends Man, Trends
Junior
It operates multiple specialty store
concepts with an extensive portfolio Mass
of own and partner brands catering
to all consumer segments through
value, premium, bridge-to-luxury
and luxury. Reliance Retail controls
Fashion pyramid
the entire fashion value chain
through a vertically integrated
operating model which generates
fresh fashion across stores on a
regular basis.

Diverse Store Concepts for Fashion & Lifestyle

New Age Digital Platforms

• India’s largest fashion destination • Experiential store with mid • Online fashion and lifestyle destination
• Strong portfolio of own brands to premium positioning • Nearly 6 lakh options
• Extensions to tap • Caters to entire wardrobe spanning over 2,500 brands
residual market • Curated section AJIO Luxe offers
opportunities the best of luxury, bridge to
• Partner to 45+ international
luxury and premium brands
brands
• Global experience within India
• India’s most loved furniture brand
• Affordable family footwear store • Access to affluent consumers
• Presence across 20 cities and
• Wide range of own brands
11 experience centres

• Destination for fine jewellery • Global category leader

in children’s premium • Offering Trends assortment
• Range of silver, gold, diamond
and bridal jewellery toys through hyperlocal fulfilment

• 100% purity, transparency • Presence across 17 countries

• Offers solutions for every
stage in a woman’s life
• Delivering across
Mono brand sites 1,900+ cities, 65 stores
https://www.gasjeans.in https://www.stevemadden.in/
https://www.hamleys.in https://www.superdry.in
https://www.marksandspencer.in https://www.visionexpress.in/
https://www.mothercare.in
12 Reliance Retail Ventures Limited
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Competitive Strengths Key Developments

Annual Report 2020-21

Launched 600+ new stores, highest
among any fashion & lifestyle retailer
globally
1
Apparel and footwear
Robust design and
Augmented omnichannel
sourcing capabilities
Strong insights of diverse tastes
capabilities to 500+ cities under
and preferences across regions Trends umbrella
Buoyant revenue led by higher
conversion and bill values
Business recovery driven by strong
in-store execution, freshness and
2 impactful activation
Fastest growing store network Curating product portfolio relevant to
100+ stores launched on an emerging trends drives category
average every year for the last 14 performance
years
Further strengthened own brands
portfolio with
continued launch of brands
Trends assortment now live on
JioMart with direct from store
3 shipment at >3,000 pin codes
Strong own brand portfolio
Own brands contribute >75% of Trends AJIO
revenues and >60% of footwear
revenues
Revenue run rate up 4x over previous
period along with improvement across
customer and operating metrics

Key highlights
4
Partner of choice for global 180+ million
brands Portfolio of over 45+ exclusive Units of apparel &
esteemed international brands footwear sold

2.9 million
Kurtas sold per month

5
Unrivalled integrated
omni-channel play
1,000+ stores catering to both
instore and online orders
Fashion & Lifestyle
New Commerce

Significant scale up in
business across merchant
base, brands, sellers
and product offerings.
Geographic coverage
extended to 2,265
cities
Jewels

Competitive
performance backed by
impactful activations
and launch of
affordable light weight
jewellery
Design capability coming
to the fore with launch of
collections across the
year
Received the ‘Most
Admired Emerging Retail
Brand of the Year’ award
at Mapic India Retail
Awards 2021
Received ‘The Retailer
of the Year’ and
‘Marketing Campaign of
the Year’ awards at the
Business Leader of the
Year Awards

Partner Brands

In luxury and premium

brands, digital commerce
revenues up 3x over last
year
Engaging customers by
pioneering ‘Distance Selling’
and impactful shopping
events

New Businesses
Investing in acquisitions to
strengthen capabilities for
New Commerce and
augment business
portfolio, acquired Zivame
and Urban Ladder.

13
Management Discussion and Analysis Business Overview

Business Performance
Grocery
Overview

Reliance Retail is India’s

largest grocery retailer and
operates multiple store
concepts – from
neighbourhood stores to
destination supermarkets and
JioMart.

These concepts leverage engaging

store experience, trained staff and
attractive value proposition to address
specific shopping needs of
consumers.

Reliance Retail has developed own

brands that provide a wide range
of quality offerings across various
categories such as staples, food Differentiated store
FMCG, home and personal care concepts for Grocery
(HPC), and general merchandise. New Age Digital Platforms

Over the years, Reliance Retail has

made significant investments in
developing • India’s widest footprint
• Gourmet retail chain hyperlocal grocery delivery
an end-to-end value chain that is
backwardly integrated for fresh foods platform
which enables product quality, supply • 200+ cities
security and sourcing efficiencies. • Integrated with stores to offer
This has resulted in win-win • Destination supermarket store seamless customer
partnerships with producers. • Serves food and non-food needs experience
• Everyday low-price
Through its New Commerce strategy; savings promise
initiative, Reliance Retail is linking
producers with small merchants and
consumers to create a win-win
partnership model. The New • Neighbourhood multipurpose
Commerce footprint is being store
expanded from 33 cities at present, • Blending physical and digital
with investments in supply chain and – endless aisle, e-kiosks
technology, to make Reliance Retail a and digital services
trusted partner for millions of
merchants across the country.

Own Brand Portfolio Across Staples, Processed Foods, Home, Beauty and Personal Care
14 Reliance Retail Ventures Limited
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STATEMENTS

Competitive Strengths Key Developments

Rapid expansion with Business continues to

600+ new stores rolled leverage brand partnerships
out for exclusive launches,
events and activations
Launched and rapidly scaled
1
Robust value chain JioMart, India’s largest Emerged as a trusted
Pan-India collection, processing hyperlocal platform. It partner for customers
and distribution centres continues to gain traction and merchants during
across regions with Tier II the lockdown with
and Tier III cities contributing enhanced safety and
over half of the orders hygiene standards

Strengthened own brands Leveraged own supply

portfolio with new chain network and worked
2 product launches across closely with vendors and
Omni-enabled network at scale
Largest network of stores and staples, processed foods, producers to ensure timely
digital commerce channels HPC and general availability of products
merchandise despite pandemic-led
categories through the year disruptions

JioMart kirana service now Snactac Mixed Fruit Jam

active in 33 cities, and Scrubz were ranked #1
launched self-onboarding in their respective
application, aiding rapid categories by Consumer
Strong own brand portfolio
merchant additions Voice magazine in FY 2020-
3 portfolio of own brands
Wide
across staples, consumer products 21
Market-leading
and general merchandise
performance, driven by
essentials (staples) and
processed foods

Key Highlights

2.9 million
Units of groceries
4 sold per day
Winning partnerships with brands
Preferred retail partner for new
brand launches, promotions, 1,800+ MT
exclusive launches and activations Fruits, veggies and
staples sold per day

>50%
Share of fruits and
veggies in modern trade

5
Hyperlocal digital strategy
Serving customers and merchant partners
through unique fulfilment model

Annual Report 2020-21 15

Management Discussion and Analysis Business Overview

Pharmacy
Reliance Retail forayed into pharmacy
retail during FY 2020-21.
It aims to lead the category by pioneering an
omnichannel pharma strategy encompassing
physical stores, digital platform Netmeds.com, and
partnerships with connected local pharmacies.
This integrated and inclusive offering will enhance
accessibility and affordability of medicines for
Indian customers.

Key Developments
114 pharmacies operationalised
Strengthened pharmacy digital platform capabilities through acquis

Connectivity
Reliance Retail works as the master distributor for Jio connectivity
services. The distribution network comprises of 8,200+ Jio stores and a
vast network of retailers across the country for new customer
acquisitions and recharges.

Jio Stores provide customers

best- in-class service of
activations,
recharges, devices availability and after
sales service.

In order to enhance seamless

customer recharge and activation
experience, the business has created
a unique entrepreneur model by
onboarding over 1.6 million Jio
Associates who help customers to
remain connected at all points in time.

To keep friends and family safe,

business is encouraging digitally savvy
customers to recharge online on their
own and stay home, stay safe and stay
connected. Business has also
enhanced the technology
solution/architecture
to improve recharge experience on
its online partner platforms.
16 Reliance Retail Ventures Limited
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STATEMENTS

CASE CASE

Diversity and Driving Inclusive

Gender Development
Equality Agenda
Gender equality is not just about hiring or
To promote inclusive and sustainable
training women at Reliance Retail, but also
growth, Reliance Retail identified a
a part of its commitment to empower
talent pool from the marginalised
women. Today, women constitute 23% of
sections across rural and urban regions
Reliance Retail’s store workforce. However,
to provide employment at its Fashion &
it has been observed that women
Lifestyle stores.
representation at managerial levels drop
significantly due to life stage events and It has partnered with 24 NGOs such as
other factors. Unnathi, Leonard Cheshire, APD, Sarthak and
Pankh to provide them vocational training,
To develop young women leaders and increase their employability, and also recruit
augment their career path, Reliance Retail
successful candidates post completion of
launched WE Women Leaders, a focused
course modules.
intervention for high-potential women at
managerial levels. The business is recruiting around 600
The programme instilled greater confidence associates every month through these
and understanding of leadership styles among institutions. The programme has so far
the participants while enhancing their provided 7,000 people a career, enabling
capabilities to take on bigger responsibilities. social and financial freedom.

Today, women managers run more than 250

Reliance Retail stores, which score higher on
several parameters including hygiene
600
standards, discipline and working conditions. Associates recruited every month
through partnerships with NGOs

Aditi Anand
“What stood out for me was that the workshop
was attended by intelligent women within our
organisation and the interactive nature of the
session not only highlighted this respect, but
also allowed us to get to know each other. The
training and tasks helped a lot in self-realisation”.
Annual Report 2020-21 17
Management Discussion and Analysis Business Overview

CASE
Ensuring Safety and
CASE

Empowering Frontline Well-being of Employees

Staff to Serve and
Consumers During the their Families
Pandemic
Reliance Retail understood the impact
Reliance Retail’s Learning & Development the pandemic can have on the physical
(L&D) team deployed various digital tools and mental health of its employees and
to deliver multiple training sessions, proactively stepped up efforts to
including Virtual Instructor Led Training ensure their well-being.
(VILT) workshops, for the frontline staff.
Physical well-being
To support JioMart hyperlocal solution, two
vital applications – UROVO and GRAB – • Hospital tie-ups to ensure proper
were implemented. Within a month, 7,500 medical care for employees and their
associates were trained on the UROVO families
application and 5,000 delivery partners • Physical distancing, staggered
underwent the GRAB training through shifts, sanitising stations,
digital tools like JioMeet/MS Teams. distribution of PPE suits, face
masks, gloves, face shields and
Reliance Retail also aggressively hired sanitisers
frontline employees. Of the total 65,000+
• Rigorous awareness drive
new hires, 53,000+ were freshers. Training
undertaken, including extensive
interventions, induction and role-readiness
safety and hygiene training for
programmes were deployed on a massive
frontline employees and service
scale to make them job-ready in the shortest
partners
possible time. It also hired and trained
• Awareness campaigns for Emergency care
15,000 delivery partners.
– REFERs, Jio Health Hub
At Reliance resQ, we make sure that each • Antibody test administered to over
one of our service technicians goes through a 50,000 frontline employees
144- hour in-depth training, followed by • Prophylactic medicines provided to
rigorous assessment and certification 43,000+ frontline and supply chain
process. staff
We have built five fully equipped Regional
Training Labs across the country at all Mental well-being
major cities and are in the process of
building the sixth. • Rolled out ‘Spring’ – a series of
workshops on positive thinking habits
and wellness
• Organised online yoga sessions,
Zumba classes, Drum and Jam, and
counselling workshops to reduce
stress
• ‘Sampark’ initiative – calling each
employee at least once a month to boost
morale

Initiated vaccination drive for employees

and their families

3,50,000+
 Staff and service partners undertook COVID-19 Symptom Checker Survey daily

18 Reliance Retail Ventures Limited

 MD&A
BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

COVID-19 response Outlook

Navigating the Situation Reliance Retail has charted
While Future-Readying the out its growth path to
Business become a leading top league
global
Securing our Securing our store retailer. With a view to serving
employees operations
Navigating the and delighting its customers
Situation Securing Securing supplies
availability for across the far and wide, in the near term
our customers ecosystem the business will focus and
drive the following five key
strategic thrusts:
Enhancing Strengthening
safety & Digital Commerce • Develop supply side
hygiene and Omnichannel
standards capabilities
ecosystem and invest in
Future design, product development
Readying
Accelerating Developing Own and sourcing
roll-out of Brands portfolio
in keeping up with
JioMart New • Leverage broader India retail
Commerce emerging trends
opportunity through
continued store expansion
• Scale up digital platforms

Broad-based decisive across businesses, led by

actions taken to secure and JioMart
recover business
• Onboard merchant
partners across categories
and geographies
• Build new businesses,
segments and own
brands
To support this, the business
will look to establish an
extensive supply chain network,
leverage technology backbone
and build talent and
organisation for a world-class
retail enterprise.
Annual Report 2020-21 19
Reliance Retail Ventures Limited
Board’s Report
2020-21
Board’s Report
MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Dear Members,

The Board of Directors present the Company’s Fifteenth Annual Report (“Report”) and the Company’s audited financial
statements (standalone and consolidated) for the financial year ended March 31, 2021.

Financial Results
The Company’s financial performance (standalone and consolidated), for the financial year ended March 31, 2021 is
summarised below:

(` crore)
Standalone Consolidated

2020-21 2019-20 2020-21 2019-20

Gross Turnover 2,235.52 192.52 157,629.09 162,936.00
Profit Before Tax 1,589.47 10.59 7,430.77 7,341.01
Less: Current Tax 192.84 2.49 1,809.46 1,040.28
Deferred Tax 201.03 - 140.02 852.76
Profit for the Year 1,195.60 8.10 5,481.29 5,447.97
Add: Other Comprehensive Income (207.55) - (203.60) 35.32
Total Comprehensive Income for the Year 988.05 8.10 5,277.69 5,483.29
Less : Total Comprehensive Income Attributable
- - (56.64) (27.81)
to Non-Controlling Interest of the Company
Total Comprehensive Income Attributable to Owners
988.05 8.10 5,334.33 5,511.10
of the Company
Add: Balance in Profit and Loss Account 6.23 (1.87) 11,414.89 5,880.85
Add/(Less): On account of Acquisition in shares
- - (60.44) 22.94
of Subsidiaries / amalgamation
Less: Appropriation - - - -
Closing Balance (including Other Comprehensive Income) 994.28 6.23 16,688.78 11,414.89

Transfer to Reserves
Reliance Petro Marketing Limited (‘RPML’) was terminated.
The Board of Directors of the Company has not transferred Consequently, the consolidated revenues of the Company
any amount to the Reserves for the year under review. have been impacted. RPML has continued to operate its
bulk Lubricants business and packing and distribution of
Results of Operations and the state Liquefied Petroleum Gas business.
of Company’s affairs At a consolidated EBITDA of ` 9,789 crore for FY 2020-21
The Company is the holding company and carries on the against ` 9,683 crore for the previous year, the business
retail business primarily through Reliance Retail Limited and posted an all-time high profit, driven by the gradual rebound
Reliance Brands Limited along with their subsidiaries and of revenue streams, judicious cost management initiatives
Joint Ventures (collectively referred to as ‘Reliance Retail’). and boosted by higher investment income.

During the year, the Company acquired supply chain The Company delivered a consolidated profit after tax of
business of Reliance Retail Limited as a ‘going concern’ on ` 5,481 crore against ` 5,448 crore for the previous year.
‘slump sale’ basis. The Company operates state of the art
On a standalone basis, the Company delivered Revenue of
supply chain infrastructure in India and operates and
` 2,236 crore against ` 193 crore for the previous year.
manages supply chain and logistics for Retail business.
The Company had earned profit after tax of ` 1,196 crore
The outbreak of COVID-19 pandemic and the ensuing against ` 8 crore for the previous year.
lockdown and operating restrictions imposed across the
country affected business operations during the year. The thrust on expansion and transformation
continued particularly on strengthening omni-channel
Reliance Retail delivered a resilient performance against and digital platform capabilities and scaling up New
the backdrop of an unprecedented and challenging
Commerce.
operating environment.
As operating curbs were progressively lifted, new store
On a consolidated basis, Reliance Retail delivered revenue openings resumed with 1,456 stores being added taking
of the total store count to 12,711 stores, covering 33.8 million
` 1,57,629 crore against ` 1,62,936 crore for the previous sq ft. at the end of the year.
year. The revenues were impacted on account of store
closures (80% stores operational), lower footfalls (65% of The business continued to attract and serve millions
last year) and operational disruptions through the year. of customers across the country far and wide. The
registered customer base now stands at 156 million,
During the year, the petro-retail dealership between a growth of 25% Y-o-Y.
Reliance Industries Limited (‘RIL’) and the Company’s
subsidiary
21
Annual Report 2020-21
Board’s Report

The business launched and rapidly scaled-up JioMart and Connectivity.

built last-mile fulfilment capacity a fresh to enable home
delivery of essentials across 200 cities.

JioMart has since grown to become India’s leading

hyperlocal delivery platform with more users, more orders,
and more products with each passing month.

The business leveraged the strength of Company’s

relationships with vendor partners to ensure
continuity of supplies even through the disruption in
the
broader environment.

In the lockdown period, Reliance Retail established itself

as the ‘preferred’ partner to kiranas by ensuring
uninterrupted supply of essential items.

The business generated >65,000 new jobs even in a year

like this, bringing to life its mission to enhance livelihoods,
whilst enabling positive societal impact not just for its
employees but the broader ecosystem within which it
operates.

Reliance Retail invested in acquiring businesses including

leading physical/digital commerce platforms like Netmeds,
Urban Ladder and Zivame to augment business portfolio,
drive operating efficiencies and strengthen omni
channel capabilities.

In what is the largest fund raise in the consumer/retail

sector in India, the Company raised ` 47,265 crore for
10.09% stake from marquee global investors.
rd
Reliance Retail ranked 53 in the list of Global
Powers of Retailing and is amongst the fastest
growing retailer in the world*.

*As per Deloitte Global Powers of Retailing 2021

Market Overview
India’s retail market is estimated at US$822 billion in FY
2019-20 and is expected to grow at a CAGR of 10% over
next five years to reach US$1,315 billion by FY 2024-25.
The penetration of organised retail market is estimated at
11% in FY 2019-20 and is expected to grow to 18% by FY
2024-25. The organised retail market is estimated at
US$88 billion in FY 2019-20 and is expected to grow at a
CAGR of 19% over the next five years to reach US$231
billion by FY 2024-25.
The unorganised retail market is poised to grow to over
US$1 trillion over this period, making it amongst the most
attractive consumer sector opportunities across the world.

Business Overview
Reliance Retail was founded with a view to revolutionise
retail in India. Today, it is the largest and fastest growing
and most profitable retail company in India with
diversified omni-channel presence through integrated
store concepts
and digital commerce platforms. It is the only Indian retailer
to feature in the list of ‘Global Powers of Retailing’.

As a market leader, Reliance Retail caters to five key

consumption baskets – 1) Consumer Electronics, 2) Fashion
& Lifestyle, 3) Grocery, 4) Pharma Retail and 5)
Operating Framework millions of households and customers across the country.

Reliance Retail’s guiding philosophy rests on the tenets Reliance Retail provides employment to many tens of
of inclusive growth and building sustainable societal thousands of people bringing joy and pride to their families
value for millions of Indians. while enabling livelihoods for many others.

Reliance Retail has set up and continues to invest in Consumer Electronics

building design and product development centers to offer
relevant, contemporary and high quality products to meet Reliance Retail is India’s largest consumer electronics
the diverse needs of its customers. retailer with an extensive network of 8,600+ stores across
7,000+ towns. Consumer electronic purchase often
Reliance Retail’s sourcing ecosystem works with small necessitates a ‘touch and feel’ of the product and in many
producers and manufacturers (SMB’s), regional, national cases involves demonstration, installation, maintenance
and international brands. In particular, it supports small and after sales service.
producers to modernize their operations, minimize
inefficiencies and reduce leakages. Reliance Retail operates differentiated store concepts
that are centered around ‘Service’, ‘Solution’ and
The business is investing in building state of the art ‘Consumer Experience’ personalising technology for
supply chain infrastructure in India by linking all major consumers.
sourcing locations through an automated, modular,
reliable and scalable warehousing, logistics and last The stores house buying guides for discerning
mile fulfilment ecosystem. consumers simplifying product complexities. Guidance
extended by expert store staff makes shopping journey
Reliance Retail’s selling ecosystem comprises a vast easier for consumers.
network of stores and digital commerce platforms to
serve customers across the length and breadth of the Key developments during the year:
country.
- Steady progress on expansion with
The New Commerce model seeks to partner with millions 188 new store openings
of unorganised merchants through an inclusive model of
- Activated www.reliancedigital.in, full network of
growth while digitally enabling and empowering them and Reliance Digital stores omni enabled with unmatched
offering them a compelling value proposition to grow delivery service across 19,000+ pin codes
their businesses and earnings. Together it will serve

22 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

- Enabled fulfillment from store inventory with with improvement across customer and operating
>95% orders delivered within six hours metrics

- Broad based growth across categories: laptops

and tablets, high-end televisions, air care and
appliances

- Impactful festive activations, successful campaign

around affordability and new product launches
delivered growth well ahead of the market

- Growth led by robust performance in Tier II/III towns

- Range of offerings across categories under the

licensed brands of BPL and Kelvinator were launched
and rolled out across general trade, including a foray
into the electricals category.

- Reliance Digital has been recognized as India’s

Only Electronics Retailer Superbrand for the
second consecutive year.

- Reliance Digital won:

o Gold for ‘Digital Marketing Excellence in

Social Media’ at Digixx Awards 2020 by
Adgully, and

o ’Social Media App Effectiveness’ award at

Global Customer Engagement Awards 2020 by
ACEF

Fashion & Lifestyle

Reliance Retail is the largest fashion retailer in India with
2,850+ stores across 850+ cities. Reliance Retail operates
multiple specialty store concepts with an extensive portfolio
of own and partner brands catering to all consumer
segments through value, premium, bridge-to-luxury and
luxury. It controls the entire fashion value chain through a
vertically integrated operating model which generates fresh
fashion across stores on a regular basis.

Key developments during the year:

• Launched 600+ new stores, highest among any

fashion & lifestyle retailer globally.

Apparel and footwear:

• Augmented omnichannel capabilities to 500+

cities under Trends umbrella

• Buoyant revenue led by higher conversion and bill

values

• Business recovery driven by strong in-store

execution, freshness and impactful activation

• Curating product portfolio relevant to emerging

trends drives category performance

• Further strengthened own brands portfolio with

continued launch of brands. Own brand contribution
in footwear increases to 60%.

• Trends assortment now live on JioMart with direct

from store shipment at >3,000 pin codes

AJIO:

• Revenue run rate up 4x over previous period along

Fashion & Lifestyle New Commerce:
Grocery
• Significant scale up in business across merchant
base, brands, sellers and product offerings. Reliance Retail is India’s largest grocery retailer and
Geographic coverage extended to 2,265 cities. operates multiple store concepts – from neighbourhood
stores to destination supermarkets and hyperlocal platform
Jewels:
JioMart. These concepts leverage engaging store
• Competitive performance backed by experience, trained staff and attractive value proposition to
impactful activations and launch of address specific shopping needs of consumers.
affordable light weight jewellery.
Reliance Retail has developed own brands that provides a
• Design capability coming to the fore with wide range of quality offerings across various categories
launch of collections across the year. such as staples, food FMCG, home and personal care
(HPC), and general merchandise.
• Received the ‘Most Admired Emerging Retail
Brand of the Year’ award at Mapic India Retail Over the years, Reliance Retail has made significant
Awards 2021. investments in developing an end-to-end value chain that is
backwardly integrated for fresh foods which enables product
• Received ‘The Retailer of the Year’ and ‘Marketing
quality, supply security and sourcing efficiencies. This has
Campaign of the Year’ awards at the Business
resulted in win-win partnerships with producers.
Leader of the Year Awards.
Through its New Commerce initiative, Reliance Retail is
Partner Brands:
linking producers with small merchants and consumers to
• In Luxury and Premium Brands, digital create a win-win partnership model. The New Commerce
commerce revenues up 3X over last year footprint is being expanded from 33 cities at present, with
investments
• Engaging customers by pioneering ‘Distance
in supply chain and technology, to make Reliance Retail a
Selling’ and impactful shopping events
trusted partner for millions of merchants across the
New Businesses: country.

• Investing in acquisitions to strengthen Key developments during the year:

capabilities for New Commerce and augment
• Rapid expansion with 600+ new stores rolled out
business portfolio, acquired Zivame and Urban
Ladder. • Launched and rapidly scaled JioMart, India’s largest

Annual Report 2020-21 23

Board’s Report
also enhanced the technology solution/architecture to improve
recharge experience on its online partner platforms.

hyperlocal platform. It continues to gain traction across

regions with Tier II and Tier III cities contributing over
half of the orders

• Strengthened own brands portfolio with new

product launches across staples, processed foods,
HPC and general merchandise categories through
the year

• JioMart kirana service, now active in 33 cities,

launched self-onboarding application, aiding
rapid merchant additions

• Market-leading performance, driven by

essentials (staples) and processed foods

• Business continues to leverage brand partnerships

for exclusive launches, events and activations

• Emerged as a trusted partner for customers and

merchants during the lockdown with enhanced
safety and hygiene standards

• Leveraged own supply chain network and worked

closely with vendors and producers to ensure timely
availability of products despite pandemic-led disruptions

• Snactac Mixed Fruit Jam and Scrubz were ranked

#1 in their respective categories by Consumer
Voice magazine in FY 2020-21

Pharmacy
Reliance Retail forayed into pharmacy retail during FY
2020-
21. It aims to lead the category by pioneering an
omnichannel pharma strategy encompassing physical
stores, digital platform Netmeds.com, and partnerships
with connected local pharmacies. This integrated and
inclusive offering
will enhance accessibility and affordability of medicines for
Indian customers.

Key developments during the year:

• 114 pharmacies operationalised

• Strengthened pharmacy digital platform

capabilities through acquisition of Netmeds

Connectivity
Reliance Retail works as the master distributor for Jio
connectivity services. The distribution network comprises
8,200+ Jio stores and a vast network of retailers across the
country for new customer acquisitions and recharges. Jio
Stores provide customers best in class service of
activations, recharges, devices availability and after sales
service.

In order to enhance seamless customer recharge and

activation experience, business has created a unique
entrepreneur model by onboarding over 1.6 million Jio
Associates who help customers to remain connected at all
points in time.

To keep friends and family safe, business is encouraging

digitally savvy customers to recharge online on their own
and stay home, stay safe and stay connected. Business has
 of financial year
The outbreak of COVID-19 pandemic, ensuing lockdown
Outlook and operating restrictions imposed across the country has
affected business operations.
Reliance Retail has charted out its growth path to
become a leading top league global retailer. With a Whilst keeping the service spirit high, the business is
view to serving and delighting its customers far and strongly focused on ensuring the safety, health and
wide, in the near term the business will focus and wellbeing of its employees and securing operations.
drive the following five key strategic thrusts:
Despite the operating constraints, Reliance Retail continued
• Develop supply side ecosystem and invest in to serve the needs of its customers and merchant partners
design, product development and sourcing by ensuring seamless supply of essentials in these trying
times.
• Leverage broader India retail opportunity
through continued store expansion Composite Scheme of Arrangement
• Scale up digital platforms During the year, the Board of Directors of the Company
across businesses, led by approved a scheme of arrangement between Future
JioMart Enterprises Limited (FEL), a listed company and the
• Onboard merchant partners across Company and their respective shareholders and creditors,
categories and geographies for the purpose of transfer and vesting of logistics and
warehousing undertaking of FEL to the Company, as a
• Build new businesses, segments and own brands going concern on a slump sale basis for lumpsum cash
To support this, the business will look to establish an consideration, as set out in the Composite Scheme of
extensive supply chain network, leverage technology Arrangement.
backbone and build talent and organisation for a world-
Further, in terms of the said Composite Scheme of
class retail enterprise. Arrangement, the retail and wholesale undertaking of FEL
shall be transferred to and vested with Reliance Retail and
Dividend Fashion Lifestyle Limited (RRFLL), a wholly-owned
subsidiary of the Company, as a going concern on a slump
The Board of Directors of the Company has not
recommended any dividend on equity shares for the sale basis
financial year under review. for lumpsum cash consideration, as set out in the
Composite Scheme and RRFLL shall subscribe to equity
Details of Material changes from the end shares and

24 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

warrants to be issued by FEL on preferential basis, on Secretarial Standards

the terms set out in the Composite Scheme.
The Directors state that applicable Secretarial Standards,
The Composite Scheme has been filed with the i.e., SS-1 and SS-2, relating to ‘Meetings of the Board of
National Company Law Tribunal, Mumbai bench Directors’ and ‘General Meetings’, respectively, have been
(NCLT) seeking directions for convening/dispensing duly followed by the Company.
with meetings of shareholders and creditors and the
same is pending before NCLT. Directors’ Responsibility Statement
Your Directors state that:
Change in Capital Structure and issue of
equity shares a) in the preparation of the annual accounts for the year
ended March 31, 2021, the applicable accounting
During the financial year under review, the following
standards read with requirements set out under
changes took place in the capital structure of the company:
Schedule III to the Act, have been followed and there
1. Increased its Authorised Share Capital to ` 25,000 are no material departures from the same;
Crore comprising 2,000 Crore Equity Shares of ` 10/-
b) the Directors have selected such accounting policies
each and 500 Crore Preference Shares of ` 10/- each.
and applied them consistently and made judgments
2. Redeemed 80 Crore, 8.5% Non-cumulative Optionally and estimates that are reasonable and prudent so as
Convertible Preference Shares (OCPS) of ` 10/- each to give a true and fair view of the state of affairs of
at ` 50 per OCPS aggregating to ` 4000 Crore, in the Company as at March 31, 2021 and of the profit of
accordance with the terms of issue of said OCPS out the Company for the year ended on that date;
of proceeds of fresh issue of equity shares.
c) the Directors have taken proper and sufficient care
3. Issued and allotted in aggregate 86,35,39,754 Equity for the maintenance of adequate accounting
Shares of ` 10 each at a premium of ` 672.25 per records in accordance with the provisions of the
share aggregating to ` 58,915 Crore (` 11,650 Crore Act for safeguarding the assets of the Company
from Reliance Industries Limited and ` 47,265 Crore and for
from financial investors) on private placement basis. preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on

Subsidiaries, Joint Ventures and Associate
a ‘going concern’ basis; and
Companies
e) the Directors have devised proper systems to
During the year under review, Vitalic Health Private Limited,
ensure compliance with the provisions of all
Netmeds Marketplace Limited, Dadha Pharma Distribution
applicable
Private Limited, Tresara Health Private Limited, Mesindus
laws and that such systems are adequate and
Ventures Private Limited, Reliance Retail and Fashion
operating effectively.
Lifestyle Limited, Grab a Grub Services Private Limited,
Shopsense Retail Technologies Private Limited, C-Square
Contracts or arrangements with Related
Info-Solutions Private Limited, NowFloats Technologies
Parties
Private Limited, Urban Ladder Home Décor Solutions
Private Limited and Actoserba Active Wholesale Private All contracts / arrangements / transactions entered by the
Limited have become subsidiaries of the Company. Company during the financial year with related parties were
in its ordinary course of business and on an arm’s length
Further, during the year Reliance Lifestyle Products Private
basis. During the financial year, the Company had not
Limited (formerly known as V&B Lifestyle India Private
entered into any contract / arrangement / transaction with
Limited) ceased to be a joint venture and has become a
related parties which is required to be reported in Form No.
subsidiary of the Company.
AOC-2 in terms of Section 134(3)(h) read with Section 188
Other than the above, no other company has become or of the Act and Rule 8(2) of the Companies (Accounts) Rules,
ceased to be subsidiary, joint venture or associate company 2014.
of the Company. A statement providing details of
Members may refer Note 33 to the Standalone Financial
performance and salient features of the financial statements
Statement which sets out related party disclosures
of Subsidiary/ Associate/ Joint Venture companies, as per
pursuant to Ind AS.
Section 129(3) of the Companies Act, 2013 (“the Act”), is
provided as Annexure A to the consolidated financial
Corporate Social Responsibility (“CSR”)
statement and therefore not repeated in this report, to avoid
duplication. The Corporate Social Responsibility Committee (“CSR
Committee”) has formulated and recommended to the
Consolidated Financial Statement Board, a Corporate Social Responsibility Policy (“CSR
Policy”) indicating the activities to be undertaken by the
In accordance with the provisions of the Act and Indian
Company, which has been approved by the Board. The CSR
Accounting Standard (“Ind AS”) 110 on Consolidated
Policy may be accessed on the Company’s website at the link
Financial Statements, the audited consolidated financial
https:// relianceretail.com/rrvl.html?keyword=Corporate
statement forms part of the Annual Report.
%20 Social%20Responsibility%20Policy.pdf. There has been
Annual Report 2020-21
no change in the CSR Policy during the year.

25
Board’s Report

In terms of the CSR Policy, the focus areas of

engagement, inter-alia, shall be rural transformation,
Directors and Key Managerial Personnel
affordable healthcare solutions, access to quality education, In accordance with the provisions of the Act and the
environmental sustainability, protection of national heritage, Articles of Association of the Company, Mr. Manoj H. Modi
art and culture, disaster response, sports for development and Ms. Isha
and other welfare activities. M. Ambani, Directors of the Company, retire by rotation at
the ensuing Annual General Meeting. The Board of
During the year, the Company has spent ` 8.20 lakhs (2%
Directors on the recommendation of the Nomination and
of the average net profits of the three preceding financial
Remuneration Committee (NRC) has recommended their re-
years) on CSR activities.
appointment.
The Annual Report on CSR activities for the financial th
year 2020-21 is annexed herewith and marked as The members of the Company at the 14 Annual General
Meeting of the Company held on September 24, 2020, had
“Annexure I” to this Report.
approved by way of special resolution the re-appointment
of Mr. Ranjit V. Pandit as Independent Director of the
Risk Management
Company to hold office for a second term of 5 (five)
The Company has a structured Risk Management consecutive years, with effect from October 15, 2020.
Framework which identifies, manages, monitors and reports
both, the key risks and the newly emerged risks - that can The Board of Directors on recommendation of the NRC
had re-appointed Mr. V. Subramaniam as Managing
impact achievement of its strategic objectives. The
Director of the Company for a period of 5 (five) years with
Company’s management systems, organizational structure,
effect from January 13, 2022, subject to approval of
processes, standards, code of conduct and behaviours
shareholders, as his current term of office is upto January
together form the Reliance Management System that
12, 2022.
governs how the Company conducts the business and
manages associated risks. Reliance’s Risk Management The Company has received declarations from all the
Framework is founded Independent Directors of the Company, confirming that:
on sound organisation design principles and is enabled by
effective use of technology. a) they meet with the criteria of independence
as prescribed under the Act; and
The Risk Management Committee of the Company has
been entrusted with the responsibility to assist the Board b) they have registered their names in the
Independent Directors’ Databank.
in:
In the opinion of the Board, all the Independent
(a) overseeing and approving the Company’s
Directors of the Company possess requisite expertise,
enterprise wide risk management framework; and
integrity and experience.
(b) ensuring that all material Strategic and Commercial
The Company has devised, inter alia following policies viz:
Risks, Safety and Operational Risk, Compliance and
Control Risks and Financial risks have been identified, a) Policy for selection of Directors and
assessed and that adequate risk mitigations are in determining Directors independence; and
place, to address these risks.
b) Remuneration Policy for Directors, Key
Managerial Personnel and other employees.
Internal Financial Controls
The aforesaid policies are available on the Company’s
Internal Financial Controls are an integral part of the
website and can be accessed at https://relianceretail.
Group Risk Management framework and processes
com/rrvl.html?keyword=Policy%20for%20selection%20 of
that address financial risks. The key internal financial
%20Director%20and%20Determining%20Director%20
controls have been documented, automated wherever
Independence.pdf and https://relianceretail.com/rrvl. html?
possible and embedded in the respective business
keyword=Remuneration%20Policy%20of%20 Director
processes. Assurance to the Board on the effectiveness
%20KMP%20and%20Other%20Employees.pdf.
of internal financial controls is obtained through 3 Lines
of Defence which include: The Policy for selection of Directors and determining
Directors’ independence sets out the guiding principles for
(a) Management reviews and control self-assessment;
the NRC for identifying persons who are qualified to
(b) Continuous controls monitoring become a Director and to determine the independence of
by functional experts; and Directors, in case of their appointment as Independent
Directors of
(c) Independent design and operational testing by the
Group Internal Audit function. the Company. The Policy also provides for the factors in
evaluating the suitability of individual Board members with
The Company believes that these systems provide diverse background and experience that are relevant for
reasonable assurance that Company’s internal the Company’s operations. There has been no change in
financial controls are designed effectively and are this Policy during the year.
operating as intended.
The Remuneration Policy for Directors, Key Managerial
Personnel and other employees sets out the guiding
principles for the NRC for recommending to the Board Personnel and
the remuneration of the Directors, Key Managerial

26 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

other employees of the Company. There has been no made by the Audit Committee were accepted by the
change in this Policy during the year. Board.

Performance Evaluation
The Company has a policy for performance evaluation
of the Board, Committees and other individual
Directors
(including Independent Directors) which include criteria for
performance evaluation of Non-executive Directors and
Executive Directors.

The annual performance evaluation of the Board, its

Committees and Individual Directors was conducted in
accordance with the manner specified by the NRC. The
Independent Directors carried out annual performance
evaluation of the Chairperson, the non-independent
directors and the Board as a whole. The Chairman of the
respective Committees shared the report on evaluation
with the respective Committee members.

The performance of each Committee was evaluated by

the Board, based on report on evaluation received by it
from respective Committees. A consolidated report on
the
performance evaluation was shared with the Chairman of
the Board for his review and giving feedback to each
Director.

Auditors and Auditors’ Report

Statutory Auditors
M/s. Deloitte Haskins & Sells LLP, Chartered Accountants
(firm registration number 117366W/W-100018) were
appointed
as Auditors of the Company, for a term of 5 (five)
consecutive years at the Annual General Meeting held on
September
24, 2020. The Auditors have confirmed that they are not
disqualified from continuing as Auditors of the Company.

The Notes on financial statement referred to in the

Auditors’ Report are self-explanatory and do not call for any
further comments. The Auditors’ Report does not contain
any qualification, reservation, adverse remark or disclaimer.

Secretarial Auditor
The Board had appointed M/s. S.N. Ananthasubramanian &
Co, Company Secretaries, to conduct Secretarial Audit for
the financial year 2020-21. The Secretarial Audit Report for
the financial year ended March 31, 2021 is annexed
herewith and marked as “Annexure II“ to this Report. The
Secretarial Audit Report does not contain any qualification,
reservation, adverse remark or disclaimer.

Disclosures:
I. Meetings of the Board
Eight meetings of the Board of Directors were held
during the financial year 2020-21.

II. Audit Committee

The Audit Committee comprises Mr. Adil
Zainulbhai (Chairman), Prof. Dipak C. Jain, Mr.
Manoj H. Modi, Mr. Ranjit V. Pandit and Mr. Pankaj
Pawar. During the year, all the recommendations
III. Corporate Social Responsibility As per the requirements of the Sexual
Committee The CSR Committee comprises Mr. Harassment of Women at Workplace (Prevention,
Adil Zainulbhai (Chairman), Prof. Dipak C. Jain Prohibition & Redressal) Act, 2013 (“POSH Act”)
and Ms. Isha M. Ambani. and rules
made thereunder, the Company has formed Internal
IV. Nomination and Remuneration Committee at its operational locations to address
Committee The NRC comprises Mr. Ranjit complaints against sexual harassment in accordance
V. Pandit (Chairman), Mr. Adil Zainulbhai, Prof. with the POSH Act. The Company has in place Anti-
Dipak C. Jain and Sexual Harassment Policy which ensures a free and fair
Mr. Manoj H. Modi. enquiry process with clear timelines for resolution. To
V. Vigil Mechanism build awareness in this area, the Company has been
conducting online programme on a continuous basis.
The Company has established a robust Vigil
Mechanism and a Whistle Blower Policy. The Vigil Further, there were no cases/ complaints filed during
Mechanism is supervised by an ‘Ethics & the financial year under review.
Compliance Task Force’ comprising senior VII. Particulars of Loans given, Investments made,
executives of the Company. Ethics & Compliance Guarantees given and Securities provided
Task Force meets periodically to review the Particulars of loans given, investments made,
complaints and incidents and reports them to the guarantees given and securities provided along with
Audit Committee. Protected disclosures can be the purpose for which the loan or guarantee or security
made by a whistle blower through an e-mail or is proposed to be utilized by the recipient are provided
dedicated telephone line or a letter to the Ethics & in the financial statement (Please refer to Note 34 to
Compliance Task Force or to the Chairman of the the standalone financial statement).
Audit Committee.

The Vigil Mechanism and Whistle Blower Policy Conservation of Energy, Technology
may be accessed on the Company’s website at Absorption and Foreign Exchange Earnings
the link: https://relianceretail.com/rrvl.html? and Outgo
keyword=Vigil%20 Mechanism%20and%20Whistle
A. Conservation of Energy:
%20Blower%20 Policy.pdf
i) Steps taken or impact on conservation of
VI. Prevention of Sexual energy:
Harassment at Workplace The Company is not engaged in any
manufacturing or processing activity.

Annual Report 2020-21 27

Board’s Report

Notwithstanding this, the Company recognizes General

the importance of energy conservation in
The Board of Directors state that no disclosure or
decreasing the adverse effects of global warming
reporting is required in respect of the following items as
and climate change. The Company carries on its
there
activities in an environmental friendly and energy
were no transactions on these items during the financial
efficient manner.
year under review:
ii) Steps taken by the Company for utilizing
1) Details relating to deposits covered
alternate sources of energy:
under Chapter V of the Act.
For utilizing alternate sources of energy, solar
projects, feasibility study and scope analysis have 2) Issue of equity shares with differential rights as
been completed for all sites of the Company. Your to dividend, voting or otherwise.
Company is committed to reduce dependence on
3) Issue of shares (including sweat equity shares)
energy from fossil fuel.
to employees of the Company under any
iii) Capital investment on energy conservation scheme.
equipment:
4) The Company has not provided money for the
Your Company has not made any capital
purchase of its own shares by employees or by
investment on energy conservation equipment.
trustees for the benefit of employees.
B. Technology Absorption
5) No fraud was reported by the Auditors to the Audit
(i) Major efforts made towards technology
Committee or the Board of Directors of the
absorption:
Company.
The Company has not entered into any
technology agreement or collaborations. 6) There were no significant or material orders
passed by the Regulators or Courts or Tribunals
(ii) The benefits derived like product
which impact the going concern status and
improvement, cost reduction, product
Company’s operations in future.
development or import substitution
Not applicable 7) The Company is not required to maintain cost records
in terms of section 148(1) of the Act.
(iii) Information regarding imported technology
(Imported during last three years) 8) There is no application made / proceeding
The Company has not imported any pending under the Insolvency and Bankruptcy
technology during the last three years. Code, 2016.

(iv) Expenditure incurred on research and 9) There was no instance of one-time settlement with
development any Bank or Financial Institution.
Nil
Acknowledgement
C. Foreign Exchange Earnings and Outgo:
Foreign Exchange earned in terms of actual inflows: Nil The Board of Directors wish to place on record its
deep sense of appreciation for the committed
Foreign Exchange outgo in terms of services by all the employees of the Company. The
actual outflows: ` 9.07 crore
Board of Directors would also like to express their
sincere appreciation
Annual return
for the assistance and co-operation received from
The Annual Return of the Company as on March financial institutions, banks, government and regulatory
31, 2021 is available on the Company’s website authorities, customers, vendors and members during the
and can be accessed at year under review.
https://relianceretail.com/rrvl. html?
keyword=Other%20Annual%20Return%20 2020-
21.pdf. For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman

April 30,

2021
28 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Annexure I
To Board’s Report

Annual Report on Corporate Social Responsibility (CSR) activities for the Financial Year
2020-21
1. Brief outline on CSR Policy of the Company: Refer Section Corporate Social Responsibility (CSR) in the Board’s Report

2. Composition of CSR Committee

Number of meetings of CSR Number of meetings of

Sl No Name of Director Designation/Nature of Directorship Committee held during the CSR Committee attended
year during the year
1 Mr. Adil Zainulbhai Chairman (Non-Executive 2 2
Director)
2 Ms. Isha Ambani Member (Non-Executive Director) 2 2
3 Prof. Dipak C. Jain Member (Non-Executive Director) 2 2

3. Provide the weblink where Composition https://relianceretail.com/rrvl.html?keyword= Composition%20of%20CSR

Composition of CSR Committee, CSR of CSR %20Committee.pdf
Policy and CSR Committee
projects approved by the board are
CSR Policy https://relianceretail.com/rrvl.html?keyword=Corporate%20
disclosed on the website of the
Social%20Responsibility%20Policy.pdf
company
CSR projects The CSR projects for the financial year 2021-22 shall be
approved by the considered by the Board at its forthcoming Board Meeting and
board shall be subsequently placed on the website of the Company

4. Provide the details of Impact assessment of CSR projects carried out Not Applicable for the current financial year under review
in pursuance of sub-rule(3) of rule 8 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014, if applicable (attach the
report)

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate
Social Responsibility) Rules, 2014 and amount required for set off for the financial year, if any

Amount available for set-off from preceeding Amount required to be set-off for the
Sl No Financial Year financial years (in `)
financial year, if any (in `)
Not Applicable

6. Average net profit of the company as per section 135(5) ` 410 Lakh

7. a) Two percent of average net profit of the company as per section 135 (5) ` 8.20 Lakh
b) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years Nil
c) Amount requried to be set off for the financial year, if any Nil
d) Total CSR obligation for the financial year (7a+7b-7c) ` 8.20 Lakh

8. a) CSR amount spent or unspent for the financial year:

Amount Unspent (in `)

Total Amount spent Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Schedule VII as
for the Financial Year Account as per section 135(6) per second proviso to section 135(5)

Amount Date of transfer Name of the fund Amount Date of transfer

` 8.20 Lakh Not applicable Not applicable
Annual Report 2020-21 29
Board’s Report

b) Details of CSR amount spent against ongoing projects for the financial year:

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

Sl Name Item Local Location of the Project Amount Amount Amount Mode of Mode of
No of the from the area project duration allocated spent transferred Implementation Implementation
project list of (Yes for the in the to Unspent - Direct (Yes/ - Through
activities / No) project current CSR No) Implementing
in (in `) financial Account Agency
schedule year for the
VII to the State District (in `) project as Name CSR
Act per section Registration
135(6) number
(in `)
Nil
Total - -
-

c) Details of CSR amount spent against other than ongoing projects for the financial year:

(1) (2) (3) (4) (5) (6) (7) (8)

Sl Name of the Item from the list Local Location of the project Amount Mode of Mode of Implementation
No project of activities in area spent for the Implementation - Through Implementing
schedule VII to the (Yes/No) project (in `) - Direct (Yes/No) Agency
Act
State District Name CSR
Registration
number

Rural Development
1 Sustainable Clause (i) Yes Maharashtra Mumbai 8.20 lakh No Reliance Foundation
Livelihoods Eradicating CSR00000623
Programme hunger, poverty
and
malnutrition;
Clause (x)
rural development
projects;
TOTAL 8.20 lakh

Note: Amount allocated for the year represents the budget for the current financial year

d) Amount spent on Administrative Overheads Nil

e) Amount spent on Impact Assessment, if applicable Nil
f) Total amount spent for the Financial Year (8b + 8c + 8d + 8e) ` 8.20 lakh
g) Excess amount for set off, if any Nil

Sl
Particular Amount (in `)
No

(i) Two percent of average net profit of the company as per section 135(5) ` 8.20 lakh
(ii) Total amount spent for the Financial year ` 8.20 lakh
(iii) Excess amount spent for the financial year [(ii)-(i)] -
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous -
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] -

9. a) Details of Unspent CSR amount for the preceeding three financial years:

(1) (2) (3) (4) (5) (6)

Sl Preceding Amount Amount spent Amount transferred to any fund specified under Amount remaining
No Financial transferred to in the reporting Schedule VII as per section 135(6), if any to be spent in
Year Unspent CSR Financial Year succeeding
Account under (in `) Name of the Amount Date of transfer financial years
section 135(6) Fund (in `) (in `)
(in `)
Not Applicable
30 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

9. b) Details of CSR amount spent in the financial year for ongoing projects of the preceeding financial year(s):

(1) (2) (3) (4) (5) (6) (7) (8) (9)

Sl Project ID Name of the project Financial Project Total Amount Amount Cumulative Status of
No year in duration allocated for spent on the amount spent the project-
which the the project project in at the end Completed/
project was (in `) the reporting of reporting Ongoing
commenced Financial year Financial
(in `) Year (in `)

Not Applicable

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR
spent in the financial year
a) Date of creation or acquisition of the capital asset (s) Not Applicable
b) Amount of CSR spent for creation or acquisition of capital asset. Not Applicable
c) Details of the entity or public authority or beneficiary under whose name such capital asset is Not Applicable
registred, their address etc
d) Provide details of the capital asset(s) created or acquired (including complete address and location of Not Applicable
the capital asset).

11. Specify the reasons(s), if the company has failed to spend two percent of the average net profit as Not Applicable
per section 135(5).

Adil Zainulbhai
V. Subramaniam
(Chairman, CSR Committee) (Managing Director)
April 30, 2021

Annual Report 2020-21 31

Board’s Report
Annexure II
To Board’s Report

Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2021
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, iv. The Foreign Exchange Management Act, 1999 and

The Members, the rules and regulations made thereunder to the
Reliance Retail Ventures Limited extent of Foreign Direct Investment, Overseas Direct
CIN: U51909MH2006PLC166166 Investment and External Commercial Borrowings :
4th Floor, Court House, Not Applicable to the extent of External
Lokmanya Tilak Marg,
Commercial Borrowings and Overseas Direct
Dhobi Talao, Mumbai- 400002
Investment;
We have conducted the Secretarial Audit of the compliance v. The following Regulations and Guidelines
with applicable statutory provisions and the adherence to
prescribed under the Securities and Exchange
good corporate practices by Reliance Retail Ventures
Board of India Act, 1992 (‘SEBI Act’) : are not
Limited (hereinafter called the “Company”) for the
applicable as the Securities of the Company are
Financial Year ended 31st March, 2021. Secretarial Audit
not listed on any Stock Exchange;
was conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts/statutory a. The Securities and Exchange Board of
compliances and expressing our opinion thereon. India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;
Based on our verification of the Company’s books, papers,
minute books, forms and returns filed and other records b. The Securities and Exchange Board of India
maintained by the Company and furnished to us through (Prohibition of Insider Trading) Regulations,
access to the Company’s in-house portal and also the 2015;
information provided by the Company, its officers, agents
c. The Securities and Exchange Board of India
and authorized representatives during the conduct of
(Issue of Capital and Disclosure
secretarial audit, we hereby report that in our opinion, the
Requirements) Regulations, 2018;
Company has, during the audit period covering the financial
year ended on 31st March 2021, complied with the d. The Securities and Exchange Board of India
statutory provisions listed hereunder and also that the (Share Based Employee Benefits) Regulations,
Company has proper Board-processes and compliance- 2014;
mechanism in place to the extent, in the manner and
e. The Securities and Exchange Board of India
subject to the reporting made hereinafter:
(Issue and Listing of Debt Securities)
We have examined the books, papers, minute books, Regulations, 2008;
forms and returns filed and other records maintained by
f. The Securities and Exchange Board of India
the Company for the financial year ended on 31st March,
(Registrars to an Issue and Share Transfer
2021 according to the provisions of:
Agents) Regulations, 1993 regarding the
i. The Companies Act, 2013 (‘the Act’) and the Companies Act and dealing with client;
rules made thereunder;
g. The Securities and Exchange Board of India
ii. The Securities Contracts (Regulation) Act, 1956 (Delisting of Equity Shares) Regulations,
(‘SCRA’) and the rules made thereunder- 2009

iii. The Depositories Act, 1996 and the Regulations h. The Securities and Exchange Board of
and Bye-laws framed thereunder; India (Buyback of Securities) Regulations,
2018.

i. Securities and Exchange Board of India

(Listing Obligations and Disclosure
Requirements) Regulations, 2015
32 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

vi. Framework for Listing of Commercial Papers

We further report that based on review of compliance
issued by Securities and Exchange Board of India
mechanism established by the Company and on the basis
including amendments thereto
of the Compliance Certificate(s) issued by the Company
The Management of the Company has confirmed Secretary based on the certificates issued by functional
that there are no laws identified which are heads and taken on record by the Board of Directors at
specifically applicable to the Company: their meeting(s), we are of the opinion that there are
adequate systems and processes in place which
We have also examined compliance with the commensurate
applicable Standards/Regulations of the following:
with size and operations of the Company, to monitor and
(i) Secretarial Standards with regard to ensure compliance with all applicable laws, rules, regulations
Meeting of the Board of Directors (SS-1) and guidelines;
and General
We further report that during the financial year under
Meetings (SS-2) issued by The Institute of audit, the following were the event/actions which
Company Secretaries of India;
occurred,
(ii) The Listing Agreements entered into by the having a major bearing on the Company’s affairs in
Company with the Stock Exchanges Applicable pursuance of the above referred laws, rules, regulations,
to the extent of Commercial Papers listed guidelines, standards, etc.
during the period under review.
• The Company has acquired the supply chain
During the period under audit, the Company has complied business as a ‘going concern’ on ‘slump sale’ basis
with the provisions of the Act, Rules, Regulations, as on June 30, 2020, from Reliance Retail Limited, a
Guidelines, Standards, etc. mentioned above. subsidiary
of the Company;
We further report that: -
• Members of the Company at the Extraordinary
• The Board of Directors of the Company is duly General Meeting held on 25th August 2020:
constituted with proper balance of Executive
Directors, Non-Executive Directors including a ► passed an Ordinary Resolution and amended
Woman Director and Independent Directors. No the Memorandum of Association to Increase
changes in the composition of the Board of Directors its Authorised Share Capital to ` 25,000/-
took place during the period under audit. crore;

• Adequate notice is given to all Directors of the ► passed a Special Resolution and increased
schedule of the Board Meetings (including the limits to make loans, investments and
Committees Meetings) except where consent of give
directors was received for shorter notice. Agenda and guarantees upto ` 60,000/- crore, outstanding at
detailed notes on agenda were also sent atleast seven any point of time;
days in advance, except where consent of directors
► passed a Special Resolution and increased the
was received for circulation of the Agenda and notes borrowings limits under Section 180 (1) (c) of
on Agenda at a shorter notice. A system exists for the Act, being ` 30,000/- crore and the
seeking and obtaining further information and aggregate
clarifications on the agenda items before the meeting
of its paid-up share capital, free reserves and
and for meaningful participation by the directors at securities premium..
the meeting.
• The Company redeemed 80 crore, 8.5% Optionally
• As recorded in the Minutes of Board/Committee Convertible Preference Shares (OCPS) of ` 10/- each
Meetings, all decisions of the Board and at
Committees thereof were carried out unanimously.
` 50/- per OCPS aggregating to ` 4000/- Crore, as per
nd
the terms of issue of OCPS, on 2 September 2020.
Annual Report 2020-21 33
Board’s Report

th
• The Board of Directors at their meeting held on 29 • The Company has at the Extraordinary General
th th
August 2020 approved a Composite Scheme of Meetings held on 25 September 2020, 6 November
th
Arrangement between Future Enterprises Limited 2020 and 8 December 2020 passed Special
and the Company and their respective shareholders Resolutions for adoption of the restated the Articles of
and creditors for the transfer and vesting of logistics Association pursuant to shareholder’s agreements
and warehousing undertaking to the Company from entered into by the Company with the investors.
Future Enterprises Limited as a going concern on a
slump sale basis on terms and conditions as set out • The Company has issued Commercial Papers and
listed the same on BSE Limited pursuant to SEBI
in the said Scheme. The said Scheme has been filed nd
Circulars dated 22 October 2019 and December 24,
with the
2019.
National Company Law Tribunal (NCLT), Mumbai
bench and the Company awaits further orders from The Report is to be read with our letter of even date
NCLT. which is annexed as Annexure A hereto and forms an
integral part of this report.
• The Company has at the Extraordinary General
st
Meeting held on 31 August, 2020 passed a
Special Resolution and approved the amendment
For S. N. ANANTHASUBRAMANIAN & CO
to the Object Clause of the Memorandum of
Association of the Company by insertion of a new Company Secretaries
ICSI Unique Code: P1991MH040400
clause relating to
Peer Review Cert. No.: 606/2019
supply chain management and rendering of related
and other services. Aparna Gadgil
Partner
• The Company has during the year under review issued
ACS:
and allotted in the aggregate 86,35,39,754 equity
14713
shares of ` 10/- each at a premium of ` 672.25/- per th
share, on private placement basis to Reliance Industries Date : 30 April, 2021 COP No. :
8430 Place : Thane ICSI UDIN :
Limited (the holding company) and ten financial
A014713C000213296
investors aggregating to ` 58,915/- crore.
34 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Annexure A

To,
The Members,
Reliance Retail Ventures Limited
CIN: U51909MH2006PLC166166
4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

Our Secretarial Audit Report for the financial year ended 31st March 2021 of even date is to be read along with this letter.

Management’s Responsibility

1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems to
ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are
adequate and operate effectively.

Auditor’s Responsibility

2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the
Company with respect to secretarial compliances.

3. We believe that audit evidence and information obtained from the Company’s management is adequate and
appropriate for us to provide a basis for our opinion.

4. Wherever required, we have obtained the management’s representation about the compliance of laws, rules
and regulations and happening of events etc.

Disclaimer

5. We have conducted online verification and examination of records, as facilitated by the Company, due to Covid
19 and subsequent lockdown situation for the purpose of issuing this report.

6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the Company.

7. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

For S. N. ANANTHASUBRAMANIAN & CO

Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019

Aparna Gadgil
Partner
ACS:
14713
th
Date : 30 April, 2021 COP No. : 8430
Place : Thane ICSI UDIN : A014713C000213296
Annual Report 2020-21 35
Reliance Retail Ventures Limited
Standalone Financial
Statements 2020-21
Independent Auditor’s MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

Report
Standalone

To The Members of Reliance Retail Ventures Limited

Report on the Audit of the Standalone

Financial Statements specified under Section 143(10) of the Act (SAs). Our
Opinion responsibilities under those Standards are further
We have audited the accompanying standalone financial described in the Auditor’s Responsibility for the Audit of
statements of Reliance Retail Ventures Limited (“the the Standalone Financial Statements section of our report.
Company”), which comprise the Balance Sheet as at 31 We are independent of the Company in accordance with
March 2021, and the Statement of Profit and Loss (including the Code of Ethics issued by the Institute of Chartered
Other Comprehensive Income), the Cash Flow Statement Accountants
and the Statement of Changes in Equity for the year then of India (ICAI) together with the ethical requirements
ended, that are relevant to our audit of the standalone financial
and a summary of significant accounting policies and other statements under the provisions of the Act and the Rules
explanatory information. made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
In our opinion and to the best of our information and the ICAI’s Code of Ethics. We believe that the audit
according to the explanations given to us, the aforesaid evidence obtained by us is sufficient and appropriate to
standalone financial statements give the information provide a basis for our audit opinion on the standalone
required by the Companies Act, 2013 (“the Act”) in the financial statements.
manner so required and give a true and fair view in
conformity with Key Audit Matters
the Indian Accounting Standards prescribed under Section Key audit matters are those matters that, in our professional
133 of the Act read with the Companies (Indian Accounting judgement, were of most significance in our audit of the
Standards) Rules, 2015, as amended, (“Ind AS”) and other standalone financial statements of the current period. These
accounting principles generally accepted in India, of the matters were addressed in the context of our audit of the
state of affairs of the Company as at 31 March 2021, and standalone financial statements as a whole, and in forming
its profit, total comprehensive income, its cash flows and our opinion thereon, and we do not provide a separate
the changes in equity for the year ended on that date. opinion on this matter. We have determined the matter
described below to be the key audit matter to be
Basis for Opinion communicated in our report.
We conducted our audit of the standalone financial
statements in accordance with the Standards on Auditing

Sr. No. Key Audit Matter Auditor’s Response

1 The Company has made

Our principal audit procedures included the following:
investments in its subsidiaries
aggregating ` 12,443.50 crores as • Obtained an understanding of the process followed by the management to
identify the subsidiaries where impairment indicator exists, the methodology to
at 31 March 2021. Refer Note 2 to
use and key assumptions for the impairment assessment of such subsidiaries.
the standalone financial
statements. • Evaluated the design and implementation and tested the operating effectiveness
of the internal control established by the Company relating to review of
We considered this as a key audit impairment testing performed by the management.
matter because of the Company’s • Evaluated management’s assessment of whether there is any indication of
assessment of existence of impairment of investment in any subsidiary, and the methodology followed by the
impairment indicators, if any, and management for the impairment assessment of such investment is in compliance
recoverable value of investment with the prevailing accounting principles.
in subsidiaries having impairment • Validated impairment models used through testing of the mathematical accuracy
indicators. This assessment and verifying the application of the input assumptions.
involves judgements about the • Evaluated the competency of the internal expert of the Company and reviewed
valuation methodology, future the valuation prepared by such expert.
performance of business which • Evaluated appropriateness of key assumptions included in the cash flow forecast
includes likely impact on account used in computing recoverable amount of the investment in subsidiary where
of lockdowns due to spread of impairment indicators were identified, with reference to our understanding of its
COVID-19 pandemic and business and past trends. Review of the factors considered by the Management on
discount rate and growth rate the business projections on account of lockdowns due to spread of COVID-19
considered in the net present pandemic.
value of cash flow projections. • Performed sensitivity analysis of key assumptions.
• Engaged Internal valuation specialist to evaluate the appropriateness of
methodology used to compute the recoverable amount of the investment where
impairment indicators exists and the Key underlying assumptions.
• Tested the arithmetical accuracy of the computation of recoverable amounts
of such investments.

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 Directors’ report, but does not include the standalone financial statements and our auditor’s
report thereon.

Annual Report 2020-21 37

Independent Auditor’s Report
fraud or error and are

• 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.

Management’s Responsibility 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
income, cash flows and changes in equity of the Company
in accordance with the Ind AS and other accounting
principles generally accepted in India. 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 statement 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 is 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 management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.

Those Board of Directors are 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
 • 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
considered material if, individually or in the aggregate, they uncertainty exists related to events or conditions that
could reasonably be expected to influence the economic may cast significant doubt on the Company’s ability to
decisions of users taken on the basis of these standalone continue as a going concern. If we conclude that a
financial statements. material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional skepticism in the standalone financial statements or, if such
throughout the audit. We also: disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up
• Identify and assess the risks of material misstatement to the date of our auditor’s report. However, future
of the standalone financial statements, whether due events or conditions may cause the Company to cease to
to fraud or error, design and perform audit continue as a going concern.
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to • Evaluate the overall presentation, structure and
provide a basis for our opinion. The risk of not content of the standalone financial statements,
detecting a material misstatement resulting from including the disclosures, and whether the standalone
fraud is higher than for one resulting from error, as financial statements represent the underlying
fraud may involve collusion, forgery, intentional transactions and events in a manner that achieves fair
omissions, misrepresentations, or the override of presentation.
internal control. Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
• Obtain an understanding of internal financial
control relevant to the audit in order to design aggregate, makes it probable that the economic decisions
audit procedures that are appropriate in the of a reasonably knowledgeable user of the standalone
circumstances. Under Section 143(3)(i) of the Act, financial statements may be influenced. We consider
we are also responsible for expressing our opinion quantitative materiality and qualitative factors in (i)
on whether the Company has planning the scope of our audit work and in evaluating the
results of our work; and
adequate internal financial controls system in place and
the operating effectiveness of such controls. (ii) to evaluate the effect of any identified misstatements in
the standalone financial statements.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting We communicate with those charged with governance
estimates and related disclosures made by the regarding, among other matters, the planned scope and
management.

38 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

timing of the audit and significant audit findings, including

g) With respect to the other matters to be
any significant deficiencies in internal control that we
included in the Auditor’s Report in accordance
identify during our audit.
with the requirements of Section 197(16) of
We also provide those charged with governance with a the Act, as amended, according to the
statement that we have complied with relevant ethical explanations given to us, during the year no
requirements regarding independence, and to communicate remuneration is paid/
with them all relationships and other matters that may payable by the Company to its directors, hence
reasonably be thought to bear on our independence, and the provisions of Section 197 of the Act do not
where applicable, related safeguards. apply to the Company.

From the matters communicated with those charged with h) With respect to the other matters to be
governance, we determine those matters that were of included in the Auditor’s Report in accordance
most significance in the audit of the standalone financial with
statements of the current period and are therefore the Rule 11 of the Companies (Audit and Auditors)
key audit matters. We describe these matters in our Rules, 2014, as amended in our opinion and to
auditor’s report unless law or regulation precludes public the best of our information and according to
disclosure about the matter or when, in extremely rare the explanations given to us:
circumstances, we determine that a matter should not be
i. The Company does not have any
communicated in our report because the adverse
material pending litigations which would
consequences of doing so
impact its financial position.
would reasonably be expected to outweigh the public
interest benefits of such communication. ii. The Company did not have any long-
term contracts including derivative
Report on Other Legal and Regulatory contracts for which there were any
Requirements material foreseeable losses.

1. As required by Section 143(3) of the Act, based on iii. There were no amounts which were required
our audit, we report that: to be transferred to the Investor Education
and Protection Fund by the Company.
a) We have sought and obtained all the
information and explanations which to the best 2. As required by the Companies (Auditor’s Report) Order,
of our knowledge and belief were necessary 2016 (“the Order”) issued by the Central Government
for the purposes of our audit. in terms of Section 143(11) of the Act, we give in
“Annexure B” a statement on the matters specified in
b) In our opinion, proper books of account as
paragraphs 3 and 4 of the Order.
required by law have been kept by the Company
so far as it appears from our examination of For Deloitte Haskins & Sells LLP
those books. Chartered Accountants
(Firm’s Registration No. 117366W/W-
c) The Balance Sheet, the Statement of Profit and
100018)
Loss including Other Comprehensive Income, the
Cash Flow Statement and Statement of Changes
in Equity dealt with by this Report are in Ketan Vora
agreement with the books of account. (Partner)
(Membership No. 100459)
d) In our opinion, the aforesaid standalone financial (UDIN: 21100459AAAAJX7556)
statements comply with the Ind AS specified
under Section 133 of the Act. Place: Mumbai
Date: April 30,
e) On the basis of the written representations
received from the directors as on 31 March 2021 2021
taken
on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2021
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 over financial reporting 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 over financial reporting.
Annual Report 2020-21 39
Independent Auditor’s Report
“Annexure A”
To the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other

Our audit involves performing procedures to obtain audit
Legal and Regulatory Requirements’ section of our
evidence about the adequacy of the internal financial
report of even date)
controls system over financial reporting and their operating
Report on the Internal Financial Controls effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
Over Financial Reporting under Clause
internal financial controls over financial reporting, assessing
(i) of sub-section 3 of Section 143 of the
the risk that a material weakness exists, and testing and
Companies Act, 2013 (“the Act”)
evaluating the design and operating effectiveness of
We have audited the internal financial controls over financial internal control based on the assessed risk. The procedures
reporting of Reliance Retail Ventures Limited (“the selected
Company”) as of 31 March 2021 in conjunction with our depend on the auditor’s judgement, including the
audit of the standalone Ind AS financial statements of the assessment of the risks of material misstatement of the
Company for the year ended on that date. financial statements, whether due to fraud or error.

Management’s Responsibility for Internal We believe that the audit evidence we have obtained is
Financial Controls sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls system
The Company’s management is responsible for over financial reporting.
establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria Meaning of Internal Financial Controls Over
established by the Company considering the essential Financial Reporting
components
A company’s internal financial control over financial
of internal control stated in the Guidance Note on Audit
reporting is a process designed to provide reasonable
of Internal Financial Controls Over Financial Reporting
assurance regarding the reliability of financial reporting and
issued by the Institute of Chartered Accountants of
the preparation of financial statements for external
India. These responsibilities include the design,
purposes in accordance with generally accepted
implementation and maintenance of adequate internal
accounting principles. A company’s internal financial
financial controls that were operating effectively for
control over financial reporting includes those policies and
ensuring the orderly
procedures that (1) pertain to the maintenance of records
and efficient conduct of its business, including adherence
that, in reasonable detail, accurately and fairly reflect the
to company’s policies, the safeguarding of its assets, the
transactions and dispositions of the
prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit
and the timely
preparation of financial statements in accordance with
preparation of reliable financial information, as required under
generally accepted accounting principles, and that receipts
the Companies Act, 2013.
and expenditures
Auditor’s Responsibility of the company are being made only in accordance with
authorisations of management and directors of the
Our responsibility is to express an opinion on the company; and (3) provide reasonable assurance regarding
Company’s internal financial controls over financial reporting prevention or timely detection of unauthorised acquisition,
of the Company based on our audit. We conducted our use, or
audit in accordance with the Guidance Note on Audit of
disposition of the Company’s assets that could have a
Internal Financial Controls Over Financial Reporting (the material effect on the financial statements.
“Guidance Note”) issued by the Institute of Chartered
Accountants Inherent Limitations of Internal Financial
of India and the Standards on Auditing prescribed under Controls Over Financial Reporting
Section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls. Those Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility
Standards and the Guidance Note require that we comply
of collusion or improper management override of
with ethical requirements and plan and perform the audit to
controls,
obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the
established
internal financial controls over financial reporting to future
and maintained and if such controls operated effectively in
periods are subject to the risk that the internal financial
all material respects.
control over financial reporting may become inadequate
because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
40 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

Opinion
In our opinion, to the best of our information and according
to the explanations given to us, the Company has, in all
material respects, an adequate internal financial controls
system over financial reporting and such internal financial
controls over financial reporting were operating effectively
as at 31 March 2021, based on the criteria for internal
financial control over financial reporting established by the
Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP

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

Ketan Vora
(Partner)
(Membership No. 100459)
(UDIN: 21100459AAAAJX7556)

Place: Mumbai
Date: 30 April
2021
Annual Report 2020-21 41
Independent Auditor’s Report
“Annexure B”
To the Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Income-tax, Goods and Service Tax, Customs Duty,
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 situation of fixed
assets.

(b) The Company has acquired fixed assets in the

current year and has not conducted physical
verification of fixed assets during the year. The
Company plans to conduct physical verification of
all the fixed assets in a phased manner over a
period of next 3 years.

(c) The Company does not have any immovable

properties of freehold or leasehold land and
building and hence reporting under clause (i)(c)
of the Order is not applicable.

(ii) As explained to us, the Company bought and sold

goods during the year in the normal course of
business. The Company held such inventories for a
short period of time prior to their sale and hence,
physical verification was not necessitated during such
time. In respect of inventories at the balance sheet
date, these are items comprising stores and spares
and not of significant value.

(iii) According to the information and explanations

given to us, the Company has not granted any
loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or other parties
covered in
the register maintained under Section 189 of the
Companies Act, 2013.

(iv) In our opinion and according to the information

and explanations given to us, the Company has
complied with the provisions of Sections 185 and
186 of the Companies Act, 2013 in respect of
grant of loans, making investments and providing
guarantees and securities, as applicable.

(v) According to the information and explanations

given to us, the Company has not accepted any
deposit during the year nor has any unclaimed
deposits within the meaning of Sections 73 to 76
or any other
relevant provisions of the Companies Act, 2013.
Hence reporting under clause (v) of the Order is not
applicable to the Company.

(vi) The maintenance of cost records has not been

specified by the Central Government under Section
148(1) of the Companies Act, 2013.

(vii) According to the information and explanations given

to us, in respect of statutory dues:

(a) The Company has generally been regular in

depositing undisputed statutory dues, including
Provident Fund, Employees’ State Insurance,
 cess and other material statutory dues information and explanations given to us, no fraud by
applicable to it to the appropriate authorities. the Company and no material fraud on the Company
by its officers or employees has been noticed or
(b) There were no undisputed amounts payable
reported during the year.
in respect of Provident Fund, Employees’
State Insurance, Income-tax, Goods and (xi) According to the information and explanations given
Service Tax, Customs Duty, cess and other to us, during the year no remuneration is
material statutory dues in arrears as at 31 paid/payable by the Company to its director, hence
March 2021 for a period of more than six the provisions of Section 197 of the Companies Act,
months from the date they became payable. 2013 do not apply to the Company.

(c) There are no dues of Income-tax, Goods (xii) The Company is not a Nidhi Company and hence
and Service Tax, Customs Duty, Excise reporting under clause (xii) of the Order is not
Duty and Value Added Tax as on 31 applicable.
March 2021 on account of disputes.
(xiii) In our opinion and according to the information and
(viii) The Company has not taken any loans or explanations given to us the Company is in
borrowings from financial institutions, banks and compliance with Section 177 and 188 of the
government or has not issued any debentures. Companies Act, 2013, where applicable, for all
Hence reporting under transactions with the related parties and the details
clause (viii) of the Order is not applicable to the Company. of related party transactions have been disclosed in
the financial statements etc. as required by the
(ix) In our opinion and according to the information and
applicable accounting standards.
explanations given to us, the Company has not
raised moneys by way of initial public offer or (xiv) According to the information and explanations given
further public offer (including debt instruments) and to us, the Company has made private placement of
the term loans have been applied by the Company shares during the year under review.
during the year for the purposes for which they
In respect of the above issue, we further report that:
were raised, other than temporary deployment
pending application of proceeds. a) the requirement of Section 42 of the
Companies Act, 2013, as applicable, have
(x) To the best of our knowledge and according to the
been complied with; and

42 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

b) the amounts raised have been applied by the

Company during the year for the purposes for
which the funds were raised, other than
temporary deployment pending application.

(xv) In our opinion and according to the information and

explanations given to us, during the year the
Company has not entered into any non-cash
transactions with its directors or directors of its
holding, subsidiary or
associate company or persons connected with them
and hence provisions of Section 192 of the Companies
Act, 2013 are not applicable.

(xvi) The Company is not required to be registered

under Section 45-IA of the Reserve Bank of India
Act, 1934.

For Deloitte Haskins & Sells LLP

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

Ketan Vora
(Partner)
(Membership No. 100459)
(UDIN: 21100459AAAAJX7556)

Place: Mumbai
Date: 30 April
2021
Annual Report 2020-21 43
Balance Sheet
As at 31st March, 2021

` in crore

As at As at
Notes
31st March, 2021 31st March, 2020
Assets
Non-Current Assets
Property, Plant and Equipment 1 1,178.21 -
Intangible Assets under Development 1 649.54 -
1,827.75 -
Financial Assets
Investments 2 12,543.50 7,638.88
Loans 3 2,799.23 -
Other Non-Current Assets 4 120.30 4.57
Total Non-Current Assets 17,290.78 7,643.45
Current assets
Inventories 5 0.13 -
Financial Assets
Investments 6 42,283.92 -
Trade Receivables 7 124.08 -
Cash and Cash Equivalents 8 62.11 3.34
Loans 9 14,596.76 70.56
Other Financial Assets 10 417.38 8.57
Other Current Assets 11 101.04 2.22
Total Current Assets 57,585.42 84.69
Total Assets 74,876.20 7,728.14
Equity and Liabilities
Equity Share Capital 12 6,863.54 6,000.00
Other Equity 13 58,985.94 1,656.23
Total Equity 65,849.48 7,656.23
Liabilities
Non-Current Liabilities
Financial Liabilities
Other Financial Liabilities 14 55.00 55.00
Provision 15 8.57 -
Deferred Tax Liabilities (Net) 16 136.80 -
Total Non-Current Liabilities 200.37 55.00
Current Liabilities
Financial Liabilities
Borrowings 17 8,799.87 -
Trade Payables Due to: 18
Micro and Small Enterprise 0.04 -
Other than Micro and Small Enterprise 13.95 1.10
Other Financial Liabilities 19 - 15.00
Other Current Liabilities 20 11.86 0.81
Provisions 21 0.63 -
Total Current liabilities 8,826.35 16.91
Total Liabilities 9,026.72 71.91
Total Equity and Liabilities 74,876.20 7,728.14

Significant Accounting Policies

See accompanying Notes to the Financial Statements 1 to 37
For and on behalf of the Board
As per our Report of even date
For Deloitte Haskins & Sells LLP
Chartered Accountants Dinesh Thapar Mukesh D. Ambani Chairman
Firm Registration No. 117366W/W-100018 Chief Financial
Officer Manoj H. Modi
Ketan Vora Akash M. Ambani
Partner K. Sridhar Isha M. Ambani
Membership No. 100459 Company Secretary Pankaj Pawar Directors
V. Subramaniam Adil Zainulbhai
Managing Director Prof. Dipak C. Jain
Date: April 30, 2021 Ranjit V. Pandit

44 Reliance Retail Ventures Limited

Statement of Profit and MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

Loss
Standalone

for the year ended 31st March, 2021

` in crore

Notes 2020-21 2019-20

Income
Value of Sales 368.08 -
Income from Services 1,867.44 192.52
Value of Sales & Services (Revenue) 2,235.52 192.52
Less: GST Recovered 283.60 29.37
Revenue from Operations 22 1,951.92 163.15
Other Income 23 1,780.41 9.90
Total Income 3,732.33 173.05
Expenses
Purchases of Stock-in-Trade/cost of services 1,714.87 -
Employee Benefit Expenses 24 66.25 -
Finance cost 25 208.92 -
Depreciation and Amortisation Expense 1 76.88 -
Other Expenses 26 75.94 162.46
Total Expenses 2,142.86 162.46
Profit before Tax 1,589.47 10.59
Tax Expenses
Current Tax 192.84 2.49
Deferred tax 201.03 -
Profit for the Year 1,195.60 8.10
Other Comprehensive Income
(i) Items that will not be reclassified to Profit or loss 23.1 0.67 -
(ii) Income tax relating to items that will not be reclassified to profit or loss (0.17) -
(iii) Items that will be reclassified to Profit or loss 23.2 (278.03) -
(iv) Income tax relating to items that will be reclassified to profit or loss 69.98 -
Total Comprehensive Income for the Year 988.05 8.10
Earnings per Equity Share of face value of ` 10 each
Basic and Diluted 29 1.86 0.01
Significant accounting policies
See accompanying Notes to the Financial Statements 1 to 37

As per our Report of even date For and on behalf of the Board

For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021
Annual Report 2020-21 45
Statement of Changes in Equity
for the year ended 31st March, 2021

A. Equity Share Capital

` in
crore
Balance at the beginning Changes in equity share Balance at the end of Changes in equity share Balance at the end of
of the reporting period capital during the year the reporting period i.e. capital during the Year reporting period i.e.
i.e. 1st April, 2019 2019-20 31st March, 2020 2020-21 31st March, 2021
6,000.00 - 6,000.00 863.54 6,863.54

B. Other Equity
` in crore
Instrument
Classified as
Equity 8.5%
Other
Non-Cumulative Call money
Capital Securities Retained Compre-
Optionally towards Total
Reserve Premium Earnings hensive
Convertible OCPS
Income
Preference
Shares of `
10 each,
(OCPS)
Balance at the beginning of 200.00 650.00 - 800.00 (1.87) - 1,648.13
reporting period 1st April, 2019
Total Comprehensive - - - - 8.10 - 8.10
income for the year
Balance at the end of 200.00 650.00 - 800.00 6.23 - 1,656.23
reporting period 31st March,
2020
Balance at the beginning of 200.00 650.00 - 800.00 6.23 - 1,656.23
reporting period 1st April, 2020
Called during the year - 2,350.00 - - - - 2,350.00
Add/(Less): Converted into 600.00 (3,000.00) - 2,400.00 - - -
Preference share capital and
Securities premium
Less: Redemption of OCPS (800.00) - - (3,200.00) - - (4,000.00)
Add: On Slump sale - - 18.36 - - - 18.36
(Refer Note 31)
Add: On Issue of - - - 58,051.46 - - 58,051.46
fresh equity shares
Less: Others - - -
(78.16) - - (78.16)
Total Comprehensive - - - - 1,195.60 (207.55) 988.05
Balance at the end of - - 18.36 57,973.30 1,201.83 (207.55) 58,985.94
reporting period 31st March,
2021

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021
46 Reliance Retail Ventures Limited
Cash Flow MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

Statement Standalone

for the year ended 31st March, 2021

` in crore
2020-21 2019-20
A. Cash Flow from Operating Activities
Net Profit before tax as per Statement of Profit and Loss 1,589.47 10.59
Adjusted for:
(Profit)/ Loss on Sale/ Discard of Property, Plant and
0.35 -
Equipment (Net)
Depreciation and Amortisation Expenses 76.88 -
Net Gain on Financial Assets (574.69) -
Interest Income (1,200.70) (9.90)
Finance Cost 208.92 -
Operating Profit before Working Capital Changes 100.23 0.69
Adjusted for:
Trade and Other Receivables (461.16) 0.12
Change in Inventories (0.13) -
Trade and Other Payables 16.26 31.58
(445.03) 31.70
Cash Generated (used in)/from Operations (344.80) 32.39
Taxes paid (net) (199.21) (1.44)
Net Cash Generated (used in)/from Operating Activities* (544.01) 30.95
B. Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment (319.02) -
Proceeds from disposal of Property, Plant and Equipment 1.43 -
Purchase of Business (Net Consideration) (Refer Note 31) (42.46) -
Investment in Subsidiaries (4,804.62) 39.25
Purchase of other investments (84,565.88) -
Proceeds for Sale of other financial assets 43,170.72 -
Movement in Loans and Advances (17,325.43) (70.56)
Interest received 415.25 1.34
Net Cash Flow from/(used in) Investing Activities (63,470.01) (29.97)
C. Cash Flow from Financing Activities
Proceeds from Issue of Equity shares (including
58,836.84 -
securities premium)
Redemption of Preference shares (4,000.00) -
Call Money Received for Preference Shares 2,350.00 -
Short-Term Borrowings (Net) 7,094.87 -
Interest Paid (208.92) -
Net Cash Flow from Financing Activities 64,072.79 -
Net Increase/(Decrease) in Cash and Cash Equivalents 58.77 0.98
Opening Balance of Cash and Cash Equivalents 3.34 2.36
Closing Balance of Cash and Cash Equivalents
62.11 3.34
(Refer Note “8”)
*Amount spent in Cash towards Corporate Social Responsibility is ` 0.08 crore (Previous Year ` Nil crore).

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021
Annual Report 2020-21 47
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

A. Corporate Information - It is due to be settled within twelve

months after the reporting period,
Reliance Retail Ventures Limited (“the Company”) is a
or
public limited company incorporated in India having its
th
registered office at 4 Floor, Court House, Lokmanya - There is no unconditional right to defer
Tilak Marg, Dhobi Talao, Mumbai – 400 002, India. The the settlement of the liability for at least
Company’s holding Company is Reliance Industries twelve months after the reporting
Limited. The Company primarily carries on the period.
business of supply chain and logistics management for
The Company classifies all other liabilities
retail.
as non-current.
B. Significant Accounting Policies Deferred tax assets and liabilities are classified
B.1 Basis of Preparation and Presentation as non-current assets and liabilities.
The financial statements have been prepared (b) Property, Plant and Equipment
on the historical cost basis except for Property, Plant and Equipment are stated
following at cost, net of recoverable taxes, trade
assets and liabilities which have been measured discount and rebates less accumulated
at fair value amount: depreciation and impairment losses, if any.
Such cost includes purchase price and any
i) Certain Financial Assets and Liabilities,
cost directly attributable to bringing the
ii) Defined Benefit Plans – Plan Assets assets to its working condition for its
intended use.
The Financial Statements of the

Company Subsequent costs are included in the asset’s

carrying amount or recognised as a separate
have been prepared to comply with the Indian
asset, as appropriate, only when it is
Accounting Standards (‘Ind AS’), including the
probable that future economic benefits
Rules notified under the relevant provisions of the
associated with the item will flow to the
Companies Act, 2013.
entity and the cost can be measured reliably.
The Company’s financial statements are
presented in Indian Rupees (`), which is also its Property, Plant and Equipment which are
significant to the total cost of that item of
functional currency and all values are rounded to
Property, Plant and Equipment and having
the nearest crore (` 00,00,000) except when
different useful life are accounted separately.
otherwise stated.

B.2 Summary of Significant Accounting Other Indirect Expenses incurred relating

to project, net of income earned during
Policies
the project development stage prior to
(a) Current and Non-Current Classification
The Company presents assets and liabilities its
in the Balance Sheet based on Current/Non- intended use, are considered as pre -
operative expenses and disclosed under
Current classification.
capital
An asset is treated as Current when it is – work in progress.
- Expected to be realised or Depreciation on Property, Plant and
intended to be sold or consumed Equipment is provided on straight-line method
in normal operating cycle; and based on useful life of the assets as
prescribed in Schedule II to the Companies
- Held primarily for the purpose of trading;
Act, 2013. Leasehold improvements are
- Expected to be realised within amortized over the lower of estimated useful
twelve months after the reporting life or lease period; on assets acquired under
period, or finance lease depreciation is provided over
the lease term.
- Cash or cash equivalent unless restricted
from being exchanged or used to settle The residual values, useful lives and methods
a liability for at least twelve months after of depreciation of Property, Plant and
the reporting period. Equipment are reviewed at each financial
year end and adjusted prospectively, if
All other assets are classified as non-current.
appropriate.
A liability is current when –
Gains or losses arising from derecognition of
- It is expected to be settled in a Property, Plant and Equipment are
normal operating cycle; measured as the difference between the net
disposal proceeds and the carrying amount
- It is held primarily for
of the asset and are recognized in the
the purpose of trading;
 Statement of Profit and Loss when the asset is derecognised.

48 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

(c) Leases operative expenses and disclosed under

The Company, as a lessee, recognizes a right- Intangible Assets
of-use asset and a lease liability for its leasing Under Development.
arrangements, if the contract conveys the
right to control the use of an identified asset.

The contract conveys the right to control the

use of an identified asset, if it involves the
use of an identified asset and the Company
has substantially all of the economic benefits
from use of the asset and has right to direct
the use of the identified asset. The cost of the
right-
of-use asset shall comprise of the amount
of the initial measurement of the lease
liability adjusted for any lease payments
made at or before the commencement
date plus any initial direct costs incurred.
The right-of-use assets is subsequently
measured at cost less any accumulated
depreciation, accumulated impairment
losses, if any and adjusted for any
remeasurement of the lease liability. The
right-of-use assets is depreciated using the
straight-line method from the
commencement date over the shorter of
lease term or useful life of right-of-use asset.

The Company measures the lease liability at

the present value of the lease payments that
are not paid at the commencement date of
the lease. The lease payments are
discounted using the interest rate implicit in
the lease, if that rate can be readily
determined. If that rate cannot be readily
determined, the Company uses incremental
borrowing rate.

For short-term and low value leases, the

Company recognizes the lease payments as
an operating expense on a straight-line basis
over the lease term.

(d) Intangible Assets

Intangible Assets are stated at cost of
acquisition net of recoverable taxes, trade
discount and rebates less accumulated
amortisation / depletion and impairment loss,
if any. Such cost includes purchase price and
any cost directly attributable to bringing the
asset to its working condition for the
intended use.

Subsequent costs are included in the asset’s

carrying amount or recognised 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-
 Gains or losses arising from deposits and short-term highly liquid
derecognition of an Intangible Asset investments that are readily convertible to
are measured as the known amounts of cash and which are
difference between the net disposal subject to an insignificant risk of changes in
proceeds and the carrying amount of the value.
asset and are recognized in the Statement
(g) Finance Cost
of Profit and Loss when the asset is
Borrowing costs include exchange
derecognized.
differences arising from foreign currency
The company’s intangible assets comprises borrowings to the extent they are regarded as
assets with finite useful life which are an adjustment to the interest cost. Borrowing
amortised on a straight-line basis over the costs that
period of their expected useful life. The are directly attributable to the acquisition
amortisation period and the amortisation or construction of qualifying assets are
method for Intangible Assets with a finite capitalised as part of the cost of such
useful life are reviewed at each reporting assets. A qualifying asset is one that
date. necessarily takes substantial period of time
to get ready for
(e) Research and Development
Expenditure Revenue expenditure its intended use.
pertaining to research is charged to the Interest income earned on the temporary
Statement of Profit and Loss. investment of specific borrowings pending
their expenditure on qualifying assets is
Development costs are capitalized as an deducted from the borrowing costs eligible
intangible asset if it can be demonstrated
for capitalisation.
that the project is expected to generate
future economic benefits, it is probable All other borrowing costs are charged to the
that those future economic benefits will Statement of Profit and Loss for the period
flow to the entity and the costs of the for which they are incurred.
asset can be measured reliably, else it is
(h) Inventories
charged to the Statement of Profit and
Items of inventories are measured at
Loss.
lower of cost and net realisable value
(f) Cash and Cash Equivalent after providing for obsolescence, if any.
Cash and cash equivalents comprise of Cost of inventories comprises of cost of
cash on hand, cash at banks, short term purchase,

Annual Report 2020-21 49

Notes
to the Standalone Financial Statements for the year ended 31st March, 2021
will be confirmed only by the occurrence or

cost of conversion and other costs including

manufacturing overheads net of recoverable
taxes incurred in bringing them to their
respective present location and condition.

Costs of inventories are determined

on weighted average basis.

(i) Impairment of Non-Financial Assets

– Property, Plant and Equipment and
Intangible Assets
The Company assesses at each reporting
date as to whether there is any indication
that any Property, Plant and Equipment and
Intangible assets or group of assets, called
Cash Generating Units (CGU) may be
impaired. If any such indication exists, the
recoverable amount of an asset or CGU is
estimated
to determine the extent of impairment, if
any. When it is not possible to estimate
the
recoverable amount of an individual asset, the
Company estimates the recoverable amount
of the CGU to which the asset belongs.

An impairment loss is recognised in the

Statement of Profit and Loss to the extent,
asset’s carrying amount exceeds its
recoverable amount. The recoverable amount
is higher of an asset’s fair value less cost
of disposal and value in use. Value in use is
based on the estimated future cash flows,
discounted to their present value using pre-tax
discount rate that reflects current market
assessments of the time value of money and
risk specific to the assets.

The impairment loss recognised in

prior accounting period is reversed if
there has been a change in the
estimate of recoverable amount.

(j) Provisions
Provisions are recognised when the
Company has a present obligation (legal or
constructive) as a result of a past event, it is
probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and a
reliable estimate can be made of the amount
of the obligation.

If the effect of the time value of money

is material, provisions are discounted
using a current pre-tax rate that
reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.

(k) Contingent Liabilities

Disclosure of contingent liability is made
when there is a possible obligation arising
from past events, the existence of which
 related service. If the contribution payable to
the scheme for service received before the
non-occurrence of one or more balance sheet date exceeds the contribution
uncertain future events not wholly within already paid, the deficit payable to the
the control of the Company or a present scheme is recognized
obligation that arises from past events
as a liability after deducting the contribution
where it is either not probable that an already paid. If the contribution already paid
outflow of resources exceeds the contribution due for services
embodying economic benefits will be received before the balance sheet date, then
required to settle or a reliable estimate of excess is recognized as an asset to the extent
amount cannot be made. that the pre-payment will lead to, for example,
(l) Employee Benefits Expense a reduction in future payment or a cash
Short Term Employee refund.
Benefits Defined Benefit Plans
The undiscounted amount of short The Company pays gratuity to the
term employee benefits expected to employees who have completed five years
be paid in exchange for the services of service with the Company at the time of
rendered by employees are resignation/
recognised as an expense during the
superannuation. The gratuity is paid @15
period when the employees render days salary for every completed year of
the services. service as per the Payment of Gratuity Act,
Post-Employment Benefits 1972.
Defined Contribution Plans
The gratuity liability amount is contributed to
A defined contribution plan is a post- the approved gratuity fund formed exclusively
employment benefit plan under which for gratuity payment to the employees. The
the Company pays specified gratuity fund has been approved by
contributions to a separate entity. The respective Income Tax Authorities.
Company makes specified monthly
contributions towards Provident Fund, The liability in respect of gratuity and
Superannuation Fund and Pension other post-employment benefits is
Scheme. calculated using the Projected Unit
Credit Method and spread over the
The Company recognizes contribution period during which the benefit is
payable to the provident fund scheme as expected to be derived from employees’
an expense, when an employee renders the services.

50 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

Re-measurement of Defined Benefit Plans borrowings that are directly

in respect of post-employment are charged
to the Other Comprehensive Income. Annual Report 2020-21

(m) Tax Expenses

The tax expenses for the period comprises
of current tax and Deferred Income Tax. Tax
is recognised in Statement of Profit and
Loss, except to the extent that it relates to
items recognised in the Other
Comprehensive Income or in Equity. In
which case, the tax
is also recognised in Other Comprehensive
Income or Equity.

i) Current Tax
Current tax assets and liabilities are
measured at the amount expected
to be recovered from or paid to the
Income Tax authorities, based on
tax
rates and laws that are enacted at
the Balance sheet date.

ii) Deferred Tax

Deferred tax is recognised on temporary
differences between the carrying
amounts of assets and liabilities in
the Financial Statements and the
corresponding tax bases used in
the computation of taxable profit.

Deferred tax assets are recognised to

the extent it is probable that taxable
profit will be available against which
the deductible temporary differences,
and the carry forward of unused tax
losses can be utilized.

Deferred tax liabilities and assets are

measured at the tax rates that are
expected to apply in the period in which
the liability is settled or the asset realised,
based on tax rates (and tax laws) that
have been enacted or substantively
enacted by the end of the reporting
period. The carrying amount of deferred
tax liabilities and assets are reviewed at
the end of each reporting period.

(n) Foreign Currencies Transactions and

Translation
Transactions in foreign currencies are
recorded at the exchange rate prevailing on
the date of transaction. Monetary assets and
liabilities denominated in foreign currencies
are translated at the functional currency
closing rates of exchange at the reporting
date.

Exchange differences arising on settlement

or translation of monetary items are
recognised in Statement of Profit and Loss
except to the extent of exchange differences
which are regarded as an adjustment to
interest costs on foreign currency
 attributable to the acquisition or
construction of qualifying assets which are
capitalized as cost of assets. 51
Non-monetary items that are measured in
terms of historical cost in a foreign currency
are recorded using the exchange rates at the
date of the transaction. Non-monetary items
measured at fair value in a foreign currency
are translated using the exchange rates at
the date when the fair value was measured.
The gain
or loss arising on translation of non-monetary
items measured at fair value is treated in line
with the recognition of the gain or loss on
the change in fair value of the item (i.e.,
translation differences on items whose fair
value gain or loss is recognised in Other
Comprehensive Income or Statement of
Profit and Loss are also recognised in Other
Comprehensive Income or Statement of
Profit and Loss, respectively).

(o) Revenue Recognition

Revenue from contracts with customers is
recognised when control of the goods or
services are transferred to the customer at
an amount that reflects the consideration
entitled in exchange for those goods or
services. The Company has generally
concluded that it is the principal in its
revenue arrangement, because it typically
controls the goods or services before
transferring them to the customer.

Generally, control is transfer upon

shipment of goods to the customer or
when the goods is made available to the
customer, provided
transfer of title to the customer occurs and
the Company has not retained any
significant risks of ownership or future
obligations with respect to the goods
shipped.

Revenue from rendering of services is

recognised over time by measuring the
progress towards complete satisfaction
of performance obligations at the
reporting period.

Revenue is measured at the amount of

consideration which the company expects
to be entitled to in exchange for
transferring distinct goods or services to
a customer as specified in the contract,
excluding amounts
collected on behalf of third parties (for
example taxes and duties collected on behalf
of the government). Consideration is
generally due upon satisfaction of
performance obligations and a receivable is
recognized when it becomes unconditional.
Generally the credit period does not exceed
90 days for sale of goods or services as the
case may be.

In case of discounts, rebates, credits, price

incentives or similar terms, consideration
are
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

determined based on its expected value, b) Financial Assets Measured

which is assessed at each reporting period.
at Fair Value Through
Contract Balances Other Comprehensive
Trade Receivables Income (FVTOCI)
A receivable represents the Company’s A Financial Asset is
right to an amount of consideration that measured at FVTOCI if it is
is unconditional. held within
a business model whose
Contract Liabilities objective is achieved by
A contract liability is the obligation to both collecting contractual
transfer goods or services to a customer for
cash flows and selling
which the Company has received
Financial Assets and the
consideration (or an amount of
contractual terms of the
consideration is due) from the customer. If
Financial Asset give rise on
a customer pays consideration before the
specified dates to cash
Company transfers goods or services to the
flows that represents solely
customer, a contract liability is recognised
payments of principal and
when the payment is made or the
interest on the principal
payment is due (whichever is earlier). amount outstanding.
Contract liabilities are recognised as revenue
when the Company performs under the c) Financial Assets Measured
contract. at Fair Value Through
Profit or Loss (FVTPL)
Interest Income
A Financial Asset which
Interest Income from a Financial Asset is not classified in any
is recognised using effective interest
of the above categories
rate method.
are measured at FVTPL.
Dividend Income
Financial assets are reclassified
Dividend Income is recognised when the subsequent to their recognition, if
Company’s right to receive the amount the Company changes its business
has been established. model for managing those
(p) Financial Instruments financial assets. Changes in
i) Financial Assets business model are made and
A. Initial Recognition and applied prospectively from the
Measurement reclassification date which is the
All Financial Assets are initially first day of immediately next
recognized at fair value. Transaction reporting period following the
costs that are directly attributable changes in business model
to the acquisition or issue of in accordance with
Financial Assets, which are not at principles laid down under
Fair Value Through Profit or Loss, Ind AS 109 – Financial
are adjusted to the fair value on Instruments.
initial recognition. Purchase and
C. Investment in Subsidiaries,
sale of Financial Assets are
Associates and Joint Ventures
recognised using trade date
The Company has accounted for
accounting.
its investments in Subsidiaries,
B. Subsequent Measurement associates and joint venture at
a) Financial Assets Measured cost less impairment loss (if any).
at Amortised Cost (AC)
D. Other Equity Investments
A Financial Asset is measured
All other equity investments are
at Amortised Cost if it is held
measured at fair value, with value
within a business model whose
changes recognised in Statement
objective is to hold the asset in
of Profit and Loss, except for
order to collect contractual
those equity investments for
cash flows and the contractual
which the Company has elected
terms of the Financial Asset
to present the value changes in
give rise on specified dates to
‘Other Comprehensive Income’.
cash flows that represents
However,
solely payments of principal
dividend on such equity
and interest on the principal
investments are recognized in
amount outstanding.
Statement of Profit and loss when
 the Company’s right to receive payment is established.

52 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

E. Impairment of Financial Assets interest method. For trade and

In accordance with Ind AS 109, the other
Company uses “Expected Credit
Loss” (ECL) model, for evaluating
Annual Report 2020-21
impairment of Financial Assets
other than those measured at Fair
Value Through Profit and Loss
(FVTPL).

Expected credit losses are

measured through a loss allowance
at an amount equal to:

• The 12 months expected

credit losses (expected credit
losses that result from those
default events on the
financial instrument that are
possible within 12 months
after the reporting date);

Or

• Full lifetime expected credit

losses (expected credit
losses that result from all
possible default events over
the life of the financial
instrument)

For Trade Receivables the

Company applies ‘simplified
approach’
which requires expected lifetime
losses to be recognised from initial
recognition of the receivables. The
Company uses historical default
rates to determine impairment loss
on the portfolio of trade
receivables. At every reporting date
these historical default rates are
reviewed and changes in the
forward looking estimates are
analysed.

For other assets, the Company

uses 12 month ECL to provide for
impairment loss where there is no
significant increase in credit risk. If
there is significant increase in credit
risk full lifetime ECL is used.

ii) Financial Liabilities

A. Initial Recognition and
Measurement
All Financial Liabilities are
recognized at fair value and in
case of borrowings, net of
directly attributable cost. Fees of
recurring nature are directly
recognised in the Statement of
Profit and Loss as finance cost.

B. Subsequent Measurement
Financial Liabilities are carried at
amortized cost using the effective
 payables maturing within one 53
year from the balance sheet
date, the carrying amounts
approximate fair value due to
the short maturity of these
instruments.

iii) Derivative Financial Instruments

The Company uses various derivative
financial instruments such as
currency forwards and commodity
contracts to mitigate the risk of
changes in exchange rates and
commodity prices. At the inception of
a hedge relationship, the Company
formally designates and documents
the hedge relationship
to which the Company wishes to
apply hedge accounting and the risk
management objective and strategy for
undertaking the hedge. Such derivative
financial instruments are initially
recognised at fair value on the date on
which a derivative contract is entered
into and are subsequently measured at
fair value. Derivatives are carried as
Financial Assets when the fair value is
positive
and as Financial Liabilities when the fair
value is negative.

Any gains or losses arising from

changes in the fair value of derivatives
are taken directly to Statement of
Profit and
Loss, except in case where the related
underlying is held as inventory, in which
case, they are adjusted to the carrying
cost of inventory.

iv) Derecognition of
Financial Instruments
The Company derecognizes a Financial
Asset when the contractual rights to
the cash flows from the Financial Asset
expire or it transfers the Financial
Asset and the transfer qualifies for
derecognition under Ind AS 109. A
Financial Liability (or a part of a
Financial Liability) is derecognized from
the Company’s Balance Sheet when the
obligation specified in the contract is
discharged or cancelled or expires.

v) Offsetting
Financial Assets and Financial Liabilities
are offset and the net amount is
presented in the balance sheet when,
and only when, the Company has a
legally enforceable right to set off the
amount and it intends, either to settle
them on a net basis or to realise the
asset and settle the liability
simultaneously.

(q) Non-current assets held for sale

Non-current assets are classified as held for
sale if their carrying amount will be
recovered
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

principally through a sale transaction rather assets and take into account anticipated
than through continuing use and sale is technological changes.
considered highly probable. The depreciation / amortisation for future periods

A sale is considered as highly probable

when decision has been made to sell, assets
are available for immediate sale in its
present condition, assets are being actively
marketed and sale has been agreed or is
expected to be concluded within 12
months of the date of classification.

Assets and liabilities classified as held for

sale are measured at the lower of their
carrying amount and fair value less cost of
sell and are presented separately in the
Balance Sheet.

(r) Earnings per share

Basic earnings per share is calculated by
dividing the net profit after tax by the
weighted average number of equity shares
outstanding during the year adjusted for
bonus element
in equity share. Diluted earnings per share
adjusts the figures used in determination of
basic earnings per share to take into
account the conversion of all dilutive
potential equity shares. Dilutive potential
equity shares are deemed converted as at
the beginning of the period unless issued
at a later date.

C. Critical Accounting Judgements and Key

Sources of Estimation Uncertainty
The preparation of the Company’s Financial
Statements requires management to make judgement,
estimates and assumptions that affect the reported
amount
of revenue, expenses, assets and liabilities and the
accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in next financial
years.

(a) Depreciation/ Amortization and Useful

Life of Property, Plant and Equipment/
Intangible Assets
Estimates are involved in determining the cost
attributable to bringing the assets to the location
and condition necessary for it to be capable
of operating in the manner intended by the
management. Property, Plant and Equipment /
Intangible Assets are depreciated / amortised
over their estimated useful life, after taking into
account estimated residual value. Management
reviews the estimated useful life and residual
values of the assets annually in order to
determine the amount of depreciation /
amortisation to be recorded during any reporting
period. The useful
life and residual values are based on the
Company’s historical experience with similar
 is revised if there are significant changes from assumptions and selecting the inputs to the
previous estimates. impairment calculation, based on Company’s
past history, existing market conditions as well
(b) Recoverability of Trade Receivable
as forward-looking estimates at the end of each
Judgements are required in assessing the
reporting period.
recoverability of overdue trade receivables and
determining whether a provision against those In case of non-financial assets company
receivables is required. Factors considered estimates asset’s recoverable amount, which is
include the credit rating of the counterparty, higher of an asset’s or Cash Generating Units
the amount and timing of anticipated future (CGU’s) fair value less costs of disposal and its
payments and any possible actions that can be value in use.
taken to mitigate the risk of non- payment.
In assessing value in use, the estimated future
(c) Provisions cash flows are discounted to their present value
Provisions and liabilities are recognized in the using pre-tax discount rate that reflects current
period when it becomes probable that there will market assessments of the time value of money
be a future outflow of funds resulting from past and the risks specific to the asset. In determining
operations fair value less costs of disposal, recent market
or events and the amount of cash outflow can transactions are taken into account, if no such
be reliably estimated. The timing of transactions
recognition and quantification of the liability can be identified, an appropriate valuation
require the application of judgement to model is used.
existing facts and circumstances, which can
(e) Recognition of Deferred Tax Assets and
be subject to change. The carrying amounts
liabilities
of provisions and liabilities are reviewed
Deferred tax assets and liabilities are recognised
regularly and revised to take account of
for deductible temporary differences and unused
changing facts and circumstances.
tax losses for which there is probability of utilisation
(d) Impairment of Financial and Non- against the future taxable profit. The Company
Financial Assets uses judgement to determine the amount of
The impairment provisions for Financial Assets deferred
are based on assumptions about risk of tax that can be recognised, based upon the likely
default and expected cash loss rates. The timing and the level of future taxable profits and
Company uses judgement in making these business developments.

54 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

(f) Fair Value Measurement (h) Estimation Uncertainty Relating to the

For estimates relating to fair value of financial Global Health Pandemic on COVID-19
instruments refer note 32 of financial statements. Management has performed the assessment of
(g) Leases the effect of COVID-19 on the recoverability of
The Company evaluated if an arrangement the value of assets as at the end of the year and
qualifies to be a lease as per requirements of Ind liquidity position as well as business activities in
AS 116. Identification of lease requires significant the foreseeable future. Based on the
judgement. Large portion of the Company’s assessment, presently there are no significant
leases are cancellable by both lessor and lessee concerns
or are arrangements which qualify as variable regarding recoverability of the value of the assets
leases and as well as on liquidity and continuity of the
hence are not considered for recognition of Right business.
of Use Asset and lease liabilities. There are few The impact of COVID-19 may be different from
lease arrangements which are cancellable only at that estimated as at the date of approval of
the option of the lessee but have not been these financial statements and the Company
considered for recognition of Right of Use Assets will
and lease liabilities on grounds of materiality and continue to monitor any material changes to
exercisability. future economic conditions.
Annual Report 2020-21 55
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

1. Property, Plant and Equipment and Intangible Assets under

Development

` in
crore
Gross Block Depreciation Net Block

As at As at As at As at As at As at
Description
1st Additions/ Deductions/ 31st 1st For the Deductions/ 31st 31st 31st
April, Adjustments* Adjustments March, April, year Adjustments* March, March, March,
2020 2021 2020 2021 2021 2020
Property, Plant
and Equipment
Plant and machinery - 11.36 - 11.36 - 2.19 - 2.19 9.17 -
Electrical installations - 208.68 2.28 206.40 - 15.65 2.07 13.58 192.82 -
Equipment - 882.00 5.03 876.97 - 46.55 3.57 42.98 833.99 -
Furniture and fixtures - 43.34 0.22 43.12 - 3.42 0.19 3.23 39.89 -
Leasehold
- 111.48 6.57 104.91 - 9.07 6.50 2.57 102.34 -
improvements
Sub-Total - 1,256.86 14.10 1,242.76 - 76.88 12.33 64.55 1,178.21 -
Total (i) - 1,256.86 14.10 1,242.76 - 76.88 12.33 64.55 1,178.21 -
Previous year - - - - - - - - - -
Intangible Assets under Development * 649.54 -

* Inludes assets acquired consequent to the Slump sale arrangement (Refer Note 31).

As at As at
31st March, 2021 31st March, 2020

Units ` in crore Units ` in crore

2. Investments – Non-Current
Investments measured at Cost
In Equity Shares of Subsidiary Companies –
Unquoted, Fully Paid Up
Reliance Retail Limited of ` 10 each 498,70,26,060 4,993.19 498,70,26,060 4,993.19
Reliance Brands Limited of ` 10 each 8,08,60,000 80.86 8,08,60,000 80.86
Genesis La Mode Private Limited of ` 10 each 60,00,006 10.57 60,00,000 10.57
GML India Fashion Private Limited of ` 10 each 25,00,006 4.48 25,00,000 4.48
GLF Lifestyle Brands Private Limited of ` 10 each 4,49,70,186 38.45 4,49,70,180 38.45
GLB Body Care Private Limited of ` 10 each 7,85,375 0.16 7,85,369 0.16
Reliance Brands Luxury Fashion Private Limited (Formerly known
3,59,917 3.37 3,59,917 3.37
as Genesis Luxury Fashion Private Limited ) of ` 10 each
Genesis Colors Limited of ` 10 each 36,53,408 88.80 36,53,408 88.80
Shri Kannan Departmental Store Private Limited of ` 100 each 8,49,267 164.78 8,49,267 164.78
Reliance GAS Lifestyle India Private Limited of ` 10 each 10,00,006 1.03 10,00,000 1.03
Vitalic Health Private Limited of ` 10 each 1,09,05,946 691.31 - -
Dadha Pharma Distribution Private Limited of ` 10 each 8,11,600 8.18 - -
Tresara Health Private Limited of ` 10 each 41,23,562 0.01 - -
Reliance Retail and Fashion Lifestyle Limited of ` 10 each 10,000 0.01 - -
Mesindus Ventures Private Limited of ` 10 each 49,969 0.05 - -
Grab a Grub Services Private Limited of ` 10 each 53,050 135.15 - -
Shopsense Retail Technologies Private Limited of ` 1 each 1,58,11,375 365.25 - -
Nowfloats Technologies Private Limited of ` 10 each 1,80,737 189.22 - -
C-Square Info-Solutions Private Limited of ` 10 each 14,54,754 41.24 - -
Urban Ladder Home Décor Solutions Private Limited of ` 1 each 25,06,83,331 207.78 - -
Actoserba Active Wholesale Private Limited of ` 10 each 8,80,680 441.71 - -
Reliance Lifestyle Products Private Limited of ` 10 each
(Formerly, V&B Lifestyle India Private Limited) (Current Year ` 7 5 0.00 - -
Previous Year ` Nil)
7,465.60 5,385.69
In Preference Shares of Subsidiary Companies – Unquoted
Reliance Retail Limited of ` 10 each Fully Paid up (Previous
79,99,89,606 3,999.95 79,99,89,606 1,381.19
year ` 2.5 Paid up)
C-Square Info Solutions Private Limited of ` 10 each Fully Paid up 13,20,000 20.00 - -
4,019.95 1,381.19
56 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

As at As at
31st March, 2021 31st March, 2020

Units ` in crore Units ` in crore

In Debentures of Subsidiary Companies –

Unquoted, Fully Paid Up
Reliance Retail Limited of ` 10,00,000 each 3,300 330.00 3,300 330.00
Reliance Brands Limited of ` 10 each 54,20,00,000 542.00 54,20,00,000 542.00
Mesindus Ventures Private Limited of ` 10,000 each 10,950 10.95 - -
Tresara Health Private Limited of ` 10,000 each 25,000 25.00 - -
Shopsense Retail Technologies Private Limited of ` 10,000 each 20,000 20.00 - -
Nowfloats Technologies Private Limited of ` 10,000 each 15,000 15.00 - -
C-Square Info-Solutions Private Limited of ` 10,000 each 15,000 15.00 - -
957.95 872.00
Total of Investments measured at Cost 12,443.50 7,638.88
Investments Measured at Fair Value Through Profit and
Loss In Equity Shares of Other Companies –
Unquoted, Partly Paid Up
Addverb Technologies Private Limited of ` 10 each, ` 9 Paid Up 88,635 100.00 - -
Total of Investment measured at Fair Value Through Profit
100.00 -
and Loss (FVTPL)
Total Investments-Non current 12,543.50 7,638.88
Aggregate Amount of Unquoted Investments 12,543.50 7,638.88
2.1 Category-wise Investments – Non-Current
Financial assets measured at Cost 12,443.50 7,638.88
Financial assets measured at Fair Value Through Profit
100.00 -
and Loss (FVTPL)
Total Investments – Non-Current 12,543.50 7,638.88

` in crore
As at As at
31st March, 2021 31st March, 2020
3. Loans – Non-Current
(Unsecured and Considered Good)
Loans and advances to Related Parties (Refer Note 33 (ii)) 2,799.23 -
Total 2,799.23 -

3.1 Loans and Advances in the Nature of Loans given to Subsidiary

` in
crore
As at Maximum As at Maximum
Name of the company 31st March, outstanding 31st March, outstanding
2021 during the year 2020 during the year
Loans – Non-Current (i) & (ii)
Reliance Brands Limited 2,606.86 2,606.86 - -
Shri Kannan Departmental Store Private Limited 99.35 99.35 - -
Reliance Clothing India Private Limited 93.02 93.02 - -
Total 2,799.23 2,799.23 - -

` in crore
As at
As at Maximum Maximum
31st March,
Name of the company 31st March, outstanding outstanding
2020
2021 during the year during the year

Loans – Current (i)

Reliance Retail Limited 14,545.86 20,912.85 70.56 165.00
Netmeds Marketplace Limited 15.90 18.90 - -
Urban Ladder Home Décor Solutions Private Limited 35.00 35.00 - -
Tresara Health Private Limited - 3.50 - -
14,596.76 20,970.25 70.56 165.00

(i) All the above loans and advances are given for business purposes.
(ii) Loans and Advances shown above, fall under the category of ‘Loans - Non-Current’ are repayable within 3 years

Annual Report 2020-21 57

Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

` in crore
As at As at
31st March, 2021 31st March, 2020
4. Other Non-Current Assets
(Unsecured and Considered Good)
Advance Income Tax (Net of Provision) (i)
10.94 4.57
Capital Advances 109.12 -
Others Loans And advances (ii) 0.24 -
Total 120.30 4.57

` in crore
As at As at
31st March, 2021 31st March, 2020
(i)
Advance Income Tax (Net of Provision)
At start of year 4.57 5.62
Charge for the year - Current Tax (192.84) (2.49)
Tax paid during the year (net of refund) 199.21 1.44
At end of year 10.94 4.57
(ii)
Includes advances to employees

` in crore
As at As at
31st March, 2021 31st March, 2020
5. Inventories
(valued at lower of cost or net realisable value)
Stores and spares 0.13 -
Total 0.13 -

` in crore
As at As at
31st March, 2021 31st March, 2020
6. Investments – Current
Investments Measured at Fair Value Through Profit and Loss (FVTPL)
In Mutual Funds – Quoted (Refer Note 32) 761.54 -
In Mutual Funds – Unquoted (Refer Note 32) 5,279.60 -
Investments Measured at Fair Value Through OCI (FVTOCI)
In Mutual Funds Fair Value Through Other Comprehensive Income - Quoted (Refer Note 32) 401.81 -
In Mutual Funds Fair Value Through Other Comprehensive Income - Unquoted (Refer Note 32) 35,840.97 -
Total Investments – Current 42,283.92 -
Aggregate amount of Quoted Investments 1,163.35 -
Aggregate amount of Unquoted Investments 41,120.57 -
Total 42,283.92 -

` in crore
As at As at
31st March, 2021 31st March, 2020
7. Trade Receivables
(unsecured and considered good)
Trade Receivables 124.08 -
Total 124.08 -

58 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

` in crore
As at As at
31st March, 2021 31st March, 2020
8. Cash and Cash Equivalents
Balances with Banks 62.11 3.34
Cash and Cash Equivalents as per Balance Sheet / Standalone Statement of Cash 62.11 3.34
Flows

` in crore
As at As at
31st March, 2021 31st March, 2020
9. Loans – Current
(Unsecured and Considered Good)
Loans and advances to Related Parties (Refer Note 33 (ii) & 3.1) 14,596.76 70.56
Total 14,596.76 70.56

` in crore
As at As at
31st March, 2021 31st March, 2020
10. Other Financial Assets – Current
Deposit 315.47 -
Others(i) 101.91 8.57
Total 417.38 8.57
(i)
Includes interest receivables.

` in crore
As at As at
31st March, 2021 31st March, 2020
11. Other Current Assets
(Unsecured and Considered Good)
Balance with GST and State Authorities 68.88 2.22
Others(i) (Previous year ` 46,804) 32.16 0.00
Total 101.04 2.22
(i)
Includes prepaid expenses and advances to employees

` in crore
As at As at
31st March, 2021 31st March, 2020
12. Share Capital
Authorised Share Capital
2000,00,00,000 Equity shares of ` 10
20,000.00 7,500.00
each (750,00,00,000)
500,00,00,000 Preference shares of ` 10 each
5,000.00 2,500.00
(250,00,00,000)
Total 25,000.00 10,000.00
Issued, Subscribed and Paid Up
686,35,39,754 Equity shares of ` 10
6,863.54 6,000.00
each (600,00,00,000)
Total 6,863.54 6,000.00

(i) Out of above, 583,77,58,520 (Previous Year 566,70,00,000) equity shares of ` 10 each fully paid-up are held by
Reliance Industries Limited, the holding company along with its nominees.

Annual Report 2020-21 59

Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

(ii) The details of Shareholder holding more than 5% shares :

As at As at
31st March, 2021 31st March, 2020
Name of the Shareholders
No. of Shares % held No. of Shares % held
Reliance Industries Limited 583,77,58,520 85.06 566,70,00,000 94.45

(iii) The Reconciliation of the number of shares outstanding is set out below:
As at As at
31st March, 2021 31st March, 2020
Particulars
No. of shares No. of shares
Equity Shares at the beginning of the year 600,00,00,000 600,00,00,000
Add: Equity Shares issued during the year 86 35 39 754 -
Equity shares at the end of the year 686,35,39,754 600,00,00,000

(iv) The Company has only one class of equity shares having par value of ` 10 per share. Each holder of equity
shares is entitled to one vote per share.

` in crore
As at As at
31st March, 2021 31st March, 2020
13. Other Equity
Instruments Classified as Equity
8.5% Non-Cumulative Optionally Convertible Preference
200.00 200.00
Shares (OCPS) of ` 10 each at ` 2.5 each
Add: Call money converted into OCPS 600.00 -
Less: Redeemed during the year (800.00) -
- 200.00
Call money towards OCPS
As per last balance sheet 650.00 650.00
Add: During the year 2,350.00 -
Less: Converted into OCPS and Securities premium (3,000.00) -
- 650.00
Securities Premium Reserve
As per last Balance Sheet 800.00 800.00
Add: Converted from Call money for OCPS 2,400.00 -
Less: Redeemed during the year (3,200.00) -
Add : On Issue of equity shares 58,051.46 -
Less: Share issue expenses (78.16) -
57,973.30 800.00
Capital Reserve
As per last Balance Sheet - -
Add : On Slump sale (Refer Note 31) 18.36 -
18.36 -
Retained Earnings
As per last Balance Sheet 6.23 (1.87)
Add: Profit for the year 1,195.60 8.10
1,201.83 6.23
Other Comprehensive Income
As per last balance sheet - -
Add: Movement in OCI (Net) during the year (207.55) -
(207.55) -
Total 58,985.94 1,656.23

60 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

13.1 Details of Shareholder’s holding more than 5% Preference Shares

(8.5% Non Cumulative Optionally Convertible Preference Shares)
As at 31st March, 2021 As at 31st March, 2020
Name of the Shareholder
No. of Shares % held No. of Shares % held

Reliance Industries Limited (Holding Company) - - 80,00,00,000 100%

13.2 Terms of 8.5% Non Cumulative Optionally Convertible Preference Shares

The OCPS shall be either redeemed at ` 50 per OCPS or converted into 5 (Five) Equity Shares of ` 10 each at any time at the
option of the Company, but not later than 10 years from the date of allotment of the OCPS i.e. February 17, 2018.

13.3 Rights, Preferences and Restrictions attached to Preference Shares

The Company has one class of Preference Shares i.e. 8.5% Non Cumulative Optionally Convertible Preference Shares
(OCPS) of ` 10/- per share. Such Preference Shares shall carry a preferential right over the Equity shares of the Company
as regards to
payment of dividend and repayment of capital, in the event of winding – up of the Company. The dividend proposed, if any, by
the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. The OCPS shall carry voting
rights prescribed under the provisions of the Companies Act, 2013

13.4 The reconciliation of the number of 8.5% Non Cumulative OCPS outstanding is set out below :
As at As at
31st March, 2021 31st March, 2020
Particulars
No. of Shares No. of Shares
Preference Shares at the beginning of the year 80 00 00 000 80 00 00 000
Less: Preference Share redeemed during the year (80 00 00 000) -
Preference Share at the end of the year - 80 00 00 000

` in crore

As at As at
31st March, 2021 31st March, 2020

14. Other Financial Liabilities – Non-Current

Others (i) 55.00 55.00
Total 55.00 55.00
(i)
Includes Subsidiary Acquisition

` in crore
As at As at
31st March, 2021 31st March, 2020
15. Provisions – Non-Current
Provision for employee benefits (Refer Note 24.1) (i)
8.57 -
Total 8.57 -
(i)
The provision for employee benefit includes gratuity, annual leave and vested long service leave entitlement accrued and Compensation
Claims made by employees

` in crore
As at As at
31st March, 2021 31st March, 2020
16. Deferred Tax Liabilities (Net)
The movement on the deferred tax account is as follows:
At the start of the year - -
Charge to Statement of Profit and Loss (Refer Note 27) 201.03 -
Other Comprehensive Income (69.81) -
On Slump Sale 5.58 -
At the end of year 136.80 -

Annual Report 2020-21 61

Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

The movement on the deferred tax account is as follows:

Component of Deferred tax Assets / (liabilities)

Charge/ (credit) to

Other
As at Statement of On Slump As at
Comprehensive
31st March, 2020 Profit or loss Sale 31st March, 2021
Income

Property, plant and equipment

- 18.89 - 6.03 (24.92)
and Intangible Assets
Disallowances - 182.77 (69.81) (0.45) (112.51)
Carried Forward Losses - (0.63) - - 0.63
- 201.03 (69.81) 5.58 (136.80)

` in crore
As at As at
31st March, 2021 31st March, 2020
17. Borrowings – Current
Unsecured at amortised cost
Commercial Paper – 8,799.87 -
Unsecured Total(i)
8,799.87 -

(i)
Maximum amount outstanding at any time during the year was ` 9,350 crore (Previous year ` Nil)

17.1 Refer Note 32 for the maturity profile

` in crore
As at As at
31st March, 2021 31st March, 2020
18. Trade Payables due to
Micro and Small Enterprises 0.04 -
Other than Micro and Small Enterprise 13.95 1.10
13.99 1.10
Total 13.99 1.10

18.1 There are no overdue amounts to Micro, Small and Medium Enterprises as at 31st March, 2021.

` in crore
As at As at
31st March, 2021 31st March, 2020
19. Other Financial Liabilities – Current
Others (i)
- 15.00
Total - 15.00
(i)
Includes Subsidiary Acquisition

` in crore
As at As at
31st March, 2021 31st March, 2020
20. Other Current Liabilities
Other Payables (i)
11.86 0.81
Total 11.86 0.81
(i)
Includes statutory liabilities and advance from customers

62 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

` in crore
As at As at
31st March, 2021 31st March, 2020
21. Provisions – Current
Provision for employee benefits (Refer Note 24.1)(i) 0.63 -
Total 0.63 -
(i)
The provision for employee benefit includes gratuity, annual leave and vested long service leave entitlement accrued and compensation claims
made by employees.

` in crore
2020-21 2019-20
22. Revenue from Operations
Value of Sales 368.03 -
Income from Services 1,583.89 163.15
Total* 1,951.92 163.15
*Net of GST

` in crore
2020-21 2019-20
23. Other Income
Interest
Bank deposits 0.19 0.24
Debt Instruments 1,200.30 9.33
Others 0.21 0.33
1,200.70 9.90
Gain on Financial assets
Realised gain 532.53 -
Unrealised gain 42.16 -
574.69 -
Other Non-Operating Income 5.02 -
5.02 -
Total 1,780.41 9.90

Above Other Income comprises of assets measured at amortised cost ` 508.60 crore (Previous year ` 9.90 crore) and Fair value through Profit and loss
` 574.69 crore (Previous year ` Nil ) and income from assets measured at Fair Value Through Other Comprehensive Income ` 692.10 crore
(Previous year ` Nil ) and Other Non-Operating Income of ` 5.02 crore (Previous year ` Nil)

2020-21 2019-20
23.1 Other Comprehensive Income – Items that will not be reclassified to Profit and Loss
Remeasurement of Defined Benefit plans 0.67 -
Total 0.67 -

2020-21 2019-20
23.2 Other Comprehensive Income – Items that will be reclassified to Profit and Loss
Debt Income Fund (278.03) -
Total (278.03) -

Annual Report 2020-21 63

Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

` in crore
2020-21 2019-20
24. Employee Benefit Expenses
Salaries and wages 56.14 -
Contribution to provident and other funds 8.61 -
Staff welfare expenses 1.50 -
Total 66.25 -

24.1 As per IND AS 19 “Employee Benefits”, the disclosures of employee benefits as defined in the Accounting Standard
are given below:
Defined contribution plan
Contribution to defined contribution plan, recognised are charged off for the year are as under:
2020-21 2019-20
Employer’s contribution to Provident Fund 2.01 -
Employer’s contribution to Pension Scheme 0.53 -
Defined benefit plan

I. Reconciliation of opening and closing balances of defined benefit

obligation
Gratuity (unfunded)

2020-21 2019-20
Defined benefit obligation at beginning of the year
Current service cost 0.93 -
Interest cost 0.27 -
Actuarial (gain)/ loss (0.67) -
Benefits paid (0.12) -
On Slump sale (Refer Note 31) 1.11 -
Transfer in 4.48 -
Defined benefit obligation at year end 6.00 -

II. Reconciliation of fair value of assets and

obligations
Gratuity (unfunded)

2020-21 2019-20
Present value of obligation 6.00 -
Amount recognised in Balance Sheet 6.00 -

III. Expenses recognised during the year

Gratuity (unfunded)

2020-21 2019-20
Current service cost 0.93 -
Interest cost on benefit obligation 0.27 -
Transfer in 4.48 -
Net benefit expense/ (income) 5.68 -
In other Comprehensive Income
Actuarial (gain)/ loss recognised in the year (0.67) -
Net (Income)/Expenses for the period recognised in OCI (0.67) -

IV. Actuarial assumptions

Gratuity (unfunded)

2020-21 2019-20
Mortality Table (IALM) 2012-14 2012-14
(Ultimate) (Ultimate)
Discount rate (per annum) 6.95% -
Rate of employee turnover 2.00% -
Rate of escalation in salary (per annum) 6.00% -

64 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

V. The expected contributions for Defined Benefit Plan for the next financial year will be in line with Financial year 2020-21.

VI. Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary,
increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of
the assumptions occuring at end of the reporting period, while holding all other assumptions constant. The result of Sensitivity
analysis is given below:
` in crore
Particulars As at 31st March, 2021 As at 31st March, 2020

Decrease Increase Decrease Increase

Change in discounting rate (delta effect of +/- 0.5%) 0.26 0.28 - -
Change in rate of salary increase (delta effect of +/- 0.5%) 0.27 0.28 - -
Change in rate of employee turnover (delta effect of +/- 0.25%)
[Current year decrease ` 19,951 & increase (` 23,412), 0.00 0.00 - -
Previous year ` Nil]

These plans typically expose the Group to actuarial riks such as: investment risk, interest risk, longevity risk and salary risk.

Interest risk A decrease in the bond interest rate will increase the liability.
Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan‘s liability.
Salary risk The present value of the defined plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the
plan‘s liability.

` in crore

2020-21 2019-20
25. Finance Costs
Interest 208.92 -
expenses Total 208.92 -

` in crore
2020-21 2019-20
26. Other Expenses
Selling and distribution expenses
Warehousing and distribution expenses 49.80 160.33
49.80 160.33
Establishment Expenses
Rates and taxes 5.84 -
Travelling and conveyance expenses 2.38 -
Insurance 1.49 -
Charity and donation 0.08 -
Professional fees 5.14 2.00
Hire Charges-Contracted service 0.38 -
Exchange differences (net) 0.03 -
Building repairs and maintenance 5.70 -
Rent including lease rentals 2.55 -
Loss on sale/ discarding of assets (net) 0.35 -
General expenses 0.69 0.11
24.63 2.11
Payments to Auditor
Statutory Audit Fees 1.50 0.01
Tax audit Fees - 0.01
Certification and Consultation Fees 0.01 -
1.51 0.02
Total 75.94 162.46
Annual Report 2020-21 65
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

26.1 CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof
by the Company within the group during the year : ` 0.08 crore (previous year Nil). Expenditure related to
Corporate Social Responsibility is ` 0.08 crore (previous year Nil).

Details of Amount spent towards CSR given below:

` in crore
Particulars 2020-21 2019-20

Environmental Sustainability and Rural Development 0.08 -

Total * 0.08 -
* Represents amount spent through Reliance Foundation ` 0.08 crore (Previous Year Nil).

` in crore
As at As at
31st March, 2021 31st March, 2020
27. Taxation
Income Tax recognised in the Statement of Profit and Loss
Current Tax 192.84 2.49
Deferred tax 201.03 -
Total Income Tax expenses Recognised in the Current Year 393.87 2.49
The income tax expenses for the year can be reconciled to the accounting
profit as follows:
Profit before tax 1,589.47 10.59
Applicable tax rate 25.17% 25.17%
Computed tax expenses 400.04 2.67
Tax Effect of:
Carry forward losses utilised - (0.18)
Expense/ (Income) disallowed (161.69) -
Additional Allowances (45.51) -
Current Tax Provision (A) 192.84 2.49
Incremental Deferred Tax Liability on account of PPE & Intangible Assets 18.73 -
Incremental Deferred Tax Liability on account of Financial Assets & Other items 182.30 -
Deferred Tax Provision (B) 201.03 -
Tax Expenses recognised in Statement of Profit and Loss (A+B) 393.87 2.49
Effective Tax Rate 24.78% 23.53%

28. The Company primarily carries on the business of supply chain and logistics management for retail. Accordingly, the Company
has only one identifiable segment reportable under Ind AS 108 - “Operating Segments”. All the activities of the Company revolve
around this main business. The chief operational decision maker monitors the operating results of the entity’s business for the
purpose of making decisions about resource allocation and performance assessment

` in crore
2020-21 2019-20
29. Earnings Per Share (EPS)
Face Value Per Equity Share (`) 10.00 10.00
Basic Earnings Per Share(`) 1.86 0.01
Net profit after tax as per Statement of Profit and Loss attributable to Equity
1,195.60 8.10
Shareholders (` crore)
Weighted average number of equity shares used as denominator for calculating Basic EPS 641 32 85 310 600 00 00 000
Diluted Earnings Per Share(`) 1.86 0.01
Net profit after tax as per Statement of Profit and Loss attributable to Equity
1,195.60 8.10
Shareholders (` crore)
Weighted average number of equity shares used as denominator for calculating Diluted EPS 641 32 85 310 700 00 00 000
Reconciliation of Weighted average number of shares outstanding
Weighted Average number of Equity Shares used as denominator for calculating Basic EPS 641 32 85 310 600 00 00 000
Total Weighted Average Potential Equity Shares - 100 00 00 000
Weighted Average number of Equity Shares used as denominator for calculating Diluted EPS 641 32 85 310 700 00 00 000

` in crore

66 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

As at As at
31st March, 2021 31st March, 2020
30. Commitments and Contingent Liabilities
a) Commitments:
Estimated amount of contracts remaining to be executed on capital account and
not provided for
(i) In respect of others 0.04 -
b) Uncalled liability on shares and other investments partly paid 200.00 2,618.76

31. During the year the company entered into a Slump sale agreement for acquiring the supply chain undertaking of
th
Reliance Retail Limited effective 30 June 2020 on slump sale basis for a consideration of ` 42.46 crore.

32. Financial & Derivative Instrument

32.1 Capital Management
The Company adheres to a disciplined Capital Management framework, the pillars of which are as follows:

a) Maintain diversity of sources of financing in order to minimise liquidity risk

b) Manage financial market risks arising from foreign exchange, interest rates and commodity prices, and minimise
the impact of market volatility on earnings.

c) Leverage optimally in order to maximise shareholder returns while maintaining strength and flexibility of
Balance Sheet. This framework is adjusted based on underlying macroeconomic factors affecting business
environment, financial market conditions and interest rates environment.

Net Gearing Ratio

The Net Gearing Ratio at end of the reporting period was as follows.

` in crore
As at As at
31st March, 2021 31st March, 2020

Gross Debt 8,799.87 NA

Cash and Marketable Securities* 42,346.03 3.34
Net Debt (A) (33,546.16) NA
Total Equity (As per Balance Sheet) (B) 65,849.48 7,656.23
Net Gearing Ratio (A/B) (0.51) NA

*Cash & Marketable Securities include cash and equivalents of ` 62.11 crore (Previous Year ` 3.34 crore) and current investments of `
42,283.92 crore (Previous Year ` Nil crore)

32.2 Financial Instrument

Valuation Methodology
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a) The fair value of investment in Mutual Funds is measured at quoted price or NAV.

b) The fair value of Forward Foreign Exchange contracts is determined using forward exchange rates at
the balance sheet date.

c) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

d) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

Annual Report 2020-21 67

Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

Fair value measurement hierarchy:

As at 31st March, 2021 As at 31st March, 2020
Carrying Level of Input used in Carrying Level of Input used in
Particulars
Amount Amount
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial Assets
At Amortised Cost
Loans 17,395.99 - - - 70.56 - - -
Trade Receivables 124.08 - - - - - - -
Cash and Cash
62.11 - - - 3.34 - - -
Equivalents
Other Financial Assets 417.38 - - - 8.57 - - -
At FVTPL
Investments 6,141.14 6,041.14 - 100.00 - - - -
At FVTOCI
Investments 36,242.78 36,242.78 - - - - - -
Financial Liabilities
At Amortised Cost
Borrowings 8,799.87 - - - - - - -
Trade Payables 13.99 - - - 1.10 - - -
Other Financial Liabilities 55.00 - - - 70.00 - - -

Excludes Group Company & Other Investments ` 12,443.50 crore (Previous year ` 7,638.88 crore) measured at
cost (Refer Note No. 2.1).
Reconciliation of fair value measurement of the investment catagorised at level 3:
As at 31st March, 2021 As at 31st March, 2020
Particulars
At FVTPL At FVTOCI At FVTPL At FVTOCI
Opening Balance - - - -
Addition during the year 100.00 - - -
Sale/Reduction during the year - - - -
Closing Balance 100.00 - - -

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value
measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.

Level 3: Inputs based on unobservable market data

32.3 Financial Risk Management

The Company’s activities expose it to credit risk and liquidity risk.

This note explains the sources of risks which the entity is exposed to and how it mitigates that risk.

Risk Exposure arising from Measurement Mitigation

Credit Risk Cash and cash Ageing analysis, Credit worthiness Counterparty credit limits and Dealing with
equivalents, highly rated counterparties as a policy.
trade receivables,
financial assets measured
at cost.
Liquidity Risk Other liabilities. Ageing analysis, Managing the outflow of payments towards
Rolling cash-flow liabilities in a timely and scheduled manner.
forecasts

The Company’s risk management is carried out by the company as per policies approved by the management. The
Company identifies, evaluates and mitigates financial risk in close co-operation with its operation team. The
Company’s overall risk management programme focuses on unpredictability of financial markets and seeks to
minimise potential adverse effects on the Company’s financial performance.
68 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

A) Interest Rate Risk

The exposure of the Company’s borrowing and derivatives to interest rate changes at the end of the reporting
period are as follows.

` in crore
As at As at
Particulars
31st March, 2021 31st March, 2020

Borrowings – Current # 8,850.00 -

Total 8,850.00 -
# Includes ` 50.13 crore (Previous Year ` Nil crore) as Commercial Paper discount.

B) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the
amounts due causing financial loss to the company. Credit risk arises from Company’s activities in investments
and receivables from customers. The Company ensure that sales of products and services are made to customers
with appropriate creditworthiness. Investment and other market exposures are managed against counterparty
exposure limits. Credit information is regularly shared between businesses and finance function, with a framework
in place to quickly identify and respond to cases of credit deterioration.

The Company has a prudent and conservative process for managing its credit risk arising in the course of its
business activities. The Company restricts its fixed income investments in liquid securities carrying high credit
rating.

C) Liquidity Risk
Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date. The
Company maintains sufficient stock of cash, marketable securities and committed credit facilities. The Company
accesses global and local financial markets to meet its liquidity requirements. It uses a range of products to ensure
efficient funding from across well-diversified markets. Treasury monitors rolling forecasts of the Company’s cash
flow position and ensures that the Company is able to meet its financial obligation at all times including
contingencies.

The Company’s liquidity is managed by central treasury which identifies the cash surpluses and arranges to
either fund the net deficit or invest the net surplus in a range of short-dated, secure and liquid instruments including
short- term bank deposits and similar instruments. The portfolio of these investments is diversified to avoid
concentration risk in any one instrument or counterparty.

Maturity Profile as at 31st March, 2021

Particulars* Below 3-6 6-12 1-3 3-5 Above
Total
3 months months months years years 5 years

Borrowings
Current# 8,850.00 - - - - - 8,850.00
Total 8,850.00 - - - - - 8,850.00
*Does not include Trade Payables (Current) amounting to ` 13.99
crore. # Includes ` 50.13 crore as Commercial Paper discount

Maturity Profile as at 31st March, 2020

Particulars* Above
Below 3-6 6-12 1-3 3-5 Total
3 months months months years years 5 years

Borrowings
Current - - - - - - -
Total - - - - - - -
*Does not include Trade Payables (Current) amounting to ` 1.10 crore.
Annual Report 2020-21 69
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

33. Related Parties Disclosures

As per IND AS 24, the disclosures of transactions with the related parties are given below:
(i) List of Related Parties with whom transactions have taken place and relationships:
Sr. No. Name of the Related Party Relationship
1 Reliance Industries Limited Holding Company
2 Reliance Retail Limited
3 Reliance Clothing India Private Limited
4 Reliance-Grand Optical Private Limited
5 Reliance Petro Marketing Limited
6 Reliance Brands Limited
7 Reliance GAS Lifestyle India Private Limited
8 Genesis Colors Limited
9 Reliance Brands Luxury Fashion Private Limited (Formerly known as Genesis
Luxury Fashion Private Limited)
10 Genesis La Mode Private Limited
11 GML India Fashion Private Limited
12 GLB Body Care Private Limited
13 GLF Lifestyle Brands Private Limited
14 Hamleys Global Holdings Limited#
15 The Hamleys Group Limited#
16 Hamleys of London Limited
17 Hamleys (Franchising) Limited
18 Hamleys Asia Limited
19 Hamleys Toys (Ireland) Limited Subsidiary
20 Shri Kannan Departmental Store Private Limited
21 Mesindus Ventures Private Limited*
22 Netmeds Marketplace Limited*
23 Tresara Health Private Limited*
24 Urban Ladder Home Décor Solutions Private Limited*
25 Shopsense Retail Technologies Private Limited*
26 Nowfloats Technologies Private Limited*
27 Vitalic Health Private Limited*
28 C-Square Info Solutions Private Limited*
29 Reliance Lifestyle Products Private Limited (Formerly V&B Lifestyle India
Private Limited)*
30 Reliance Retail and Fashion Lifestyle Limited*
31 Grab a Grub Services Private Limited*
32 Actoserba Active Wholesale Private Limited*
33 Dadha Pharma Distribution Private Limited*
34 Scrumpalicious Limited #
35 Reliance Brands Holding UK Limited
36 Luvley Limited #
37 Reliance Industrial Investments and Holdings Limited
38 Reliance Strategic Business Ventures Limited
39 Reliance Corporate IT Park Limited Fellow Subsidiary
40 Reliance Projects & Property Management Services Limited
41 Reliance Jio Infocomm Limited
42 Shri V. Subramaniam
43 Shri Ashwin Khasgiwala*
Key Managerial Personnel
44 Shri Dinesh Thapar
45 Shri K. Sridhar
46 Reliance Foundation Enterprises over which Key
Managerial Personnel of the
Holding Company are able to
exercise significant influence

*The above entities include related parties where the relationship existed for the part of the year / previous year.
#Under Liquidation

70 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

(ii) Transactions during the year with Related

Parties
` in
Key crore
Holding Fellow
Sr.
Managerial Others Total
Nature of transactions Subsidiaries subsidiaries
No. company Personnel

1 Call money received towards OCPS 2,350.00-----------------------------------------------------------2,350.00

- - - - - -
2 Equity Share Capital 11,650.00----------------------------------------------------------11,650.00
- - - - - -
3 Redemption of preference shares (4,000.00)---------------------------------------------------------(4,000.00)
- - - - - -
4 Purchase/ subscription/ Sale/ - 2,729.78 873.61 - - 3,603.39
(Redemption) of investments - 13.27 - - - 13.27
(Net)
5 Net deposits Given/ (repaid) - - 40.00 - - 40.00
- - - - - -
6 Purchase of Undertaking - 42.46 - - - 42.46
- - - - - -
7 Net unsecured loans Given/ (returned) - 17,306.02-------------------------------------------17,306.02
- 70.56 - - - 70.56
8 Warehousing and distribution expenses - 5.08 - - - 5.08
- - - - - -
9 Interest Cost 26.45 - - - - 26.45
- - - - - -
10 Revenue from Operations - 1,938.58--------------------------------------------1,938.58
- 192.52 - - - 192.52
11 Other Income - 507.91 - - - 507.91
- 9.33 - - - 9.33
12 Professional Fees 0.07 2.71 0.03 - - 2.81
0.06 - - - - 0.06
13 Purchase of - - 242.73 - - 242.73
Property Plant and - - - - - -
Equipment
14 General and administration expenses - - 0.01 - - 0.01
- - - - - -
15 Payment to Key Managerial Personnel - - - 2.69 - 2.69
- - - 2.26 - 2.26
16 Donations - - - - 0.08 0.08
- - - - - -
Balance as at 31st March, 2021
17 Equity Share Capital# 17,317.00----------------------------------------------------------17,317.00
5,667.00 - - - - 5,667.00
18 Preference Share Capital# - - - - - -
1,000.00 - - - - 1,000.00
19 Call money received towards OCPS - - - - - -
650.00 - - - - 650.00
20 Investments – Non-Current - 12,443.50-------------------------------------------12,443.50
- 7,638.87 - - - 7,638.87
21 Loans and advances Given - 17,395.99-------------------------------------------17,395.99
- 70.56 - - - 70.56
22 Trade Payable - - 0.03 - - 0.03
- 1.07 - - - 1.07
23 Other Financial Asset - 101.84 40.00 - - 141.84
- 8.40 - - - 8.40
24 Other Current Assets - - 0.00 - - 0.00
(Current year ` 2,599 Previous year ` - - - - - -
Nil)
25 Other Non-Current Assets - - 64.29 - - 64.29
- - - - - -
26 Trade Receivable - 78.29 - - - 78.29
- - - - - -
Figures in italic represents previous year’s amount.
#Including Securities Premium
Annual Report 2020-21 71
Notes
to the Standalone Financial Statements for the year ended 31st March, 2021

(iii) Disclosure in respect of material Related Party transactions during the

year:

` in
crore
Particulars Relationship 2020-21 2019-20
1 Call money received towards OCPS
Reliance Industries Limited Holding Company 2,350.00 -
2 Equity Share Capital
Reliance Industries Limited Holding Company 11,650.00 -
3 Redemption of preference shares
Reliance Industries Limited Holding Company (4,000.00) -
4 Purchase/ subscription/
(redemption) of investments
Reliance Retail Limited Subsidiary 2,618.76 -
Reliance Industrial Investments and Holding Limited Fellow Subsidiary 684.39 -
Shri Kannan Departmental Store Private Limited Subsidiary - 12.24
Reliance Brands Limited Subsidiary - 1.03
Vitalic Health Private Limited* Subsidiary - -
Tresara Health Private Limited* Subsidiary 25.00 -
Mesindus Ventures Private Limited* Subsidiary 11.00 -
Reliance Strategic Business Ventures Limited Fellow Subsidiary 189.22 -
Urban Ladder Home Décor Solutions Private Limited* Subsidiary 25.00 -
Shopsense Retail Technologies Private Limited* Subsidiary 20.00 -
Nowfloats Technologies Private Limited* Subsidiary 15.00 -
C-Square Info Solutions Private Limited* Subsidiary 15.00 -
Actoserba Active Wholesale Private Limited* Subsidiary 0.02 -
5 Net deposits Given/ (repaid)
Reliance Projects & Property Management Fellow Subsidiary 40.00 -
Services Limited
6 Purchase of Undertaking
Reliance Retail Limited Subsidiary 42.46 -
7 Net Loans and Advances Given/ (Returned)
Reliance Brands Limited Subsidiary 2,606.86 -
Reliance Retail Limited Subsidiary 14,475.29 70.56
Tresara Health Private Limited* Subsidiary (3.50) -
Urban Ladder Home Décor Solutions Private Limited* Subsidiary 35.00 -
Shri Kannan Departmental Store Private Limited Subsidiary 99.35 -
Reliance Clothing India Private Limited Subsidiary 93.02 -
8 Warehousing and distribution expenses
Reliance Retail Limited Subsidiary 5.08 -
9 Interest Cost
Reliance Industries Limited Holding Company 26.45 -
10 Revenue from Operations
Reliance Retail Limited Subsidiary 1,929.10 192.52
Reliance Brands Limited Subsidiary 9.24 -
Shri Kannan Departmental Store Private Limited Subsidiary 0.24 -
11 Other Income
Reliance Retail Limited Subsidiary 505.97 9.33
Netmeds Marketplace Limited* Subsidiary 0.65 -
Tresara Health Private Limited* Subsidiary 0.14 -
Reliance Brands Limited Subsidiary 0.50 -
Reliance Clothing India Private Limited Subsidiary 0.02 -
Shri Kannan Departmental Store Private Limited Subsidiary 0.02 -
Urban Ladder Home Décor Solutions Private Limited* Subsidiary 0.61 -
12 Professional Fees
Reliance Industries Limited Holding Company 0.07 0.06
Reliance Retail Limited Subsidiary 2.71 -
Reliance Projects & Property Management Fellow Subsidiary 0.03 -
Services Limited
72 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

` in crore
Particulars Relationship 2020-21 2019-20
13 Purchase of Property Plant and Equipment
Reliance Projects & Property Management Fellow Subsidiary 242.73 -
Services Limited
14 General and administration expenses
Reliance Jio Infocomm Limited Fellow Subsidiary 0.01 -
15 Payment to Key Managerial Personnel
Shri Ashwin Khasgiwala* Key Managerial Personnel - 0.19
Shri Dinesh Thapar Key Managerial Personnel 2.36 1.73
Shri K. Sridhar Key Managerial Personnel 0.33 0.34
16 Donations
Reliance Foundation Others 0.08 -
*The above entities includes related parties where the relationship existed for the part of the year / previous year.

2020-21 2019-20
33.1 Compensation of Key Managerial Personnel
Short-term benefits 2.69 2.26

34. Details of loan given, investment made and guarantee given covered u/s 186(4) of the Companies Act, 2013
st
i) Loans given by the Company to body corporate as at 31 March 2021 (Refer Note 3.1).
st
ii) Investments made by the company as at 31 March 2021 (Refer Note 2).

ii) No Guarantees given by the company.

35. The Company has entered into a Composite Scheme of Arrangement with Future Enterprises Limited (FEL) for
transfer of Logistics & Warehousing Undertaking of FEL as a going concern on a slump sale basis to the Company.
The scheme has been discussed and approved by the Board of Director at its meeting held on August 29, 2020 and
is at various stage of approval from regulatory authorities.

36. The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to
make them comparable.
th
37. The Financial Statements were approved for issue by the Board of Directors on 30 April, 2021.

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021

Annual Report 2020-21 73

Reliance Retail Ventures Limited
Consolidated Financial
Statements 2020-21
Independent Auditor’s MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

Report
Consolidated

To The Members of Reliance Retail Ventures Limited

flows and their consolidated changes in equity for the
year ended on that date.
Report on the Audit of the Consolidated
Financial Statements Basis for Opinion
We conducted our audit of the consolidated financial
Opinion
statements in accordance with the Standards on Auditing
We have audited the accompanying consolidated financial
specified under Section 143(10) of the Act (SAs). Our
statements of Reliance Retail Ventures Limited
responsibilities under those Standards are further
(“the Parent”) and its subsidiaries, (the Parent and its
described in the Auditor’s Responsibility for the Audit of
subsidiaries together referred to as “the Group”) which
the Consolidated Financial Statements section of our
includes the Group’s share of loss in its joint ventures,
report.
which comprise the Consolidated Balance Sheet as at 31
March 2021, and the Consolidated Statement of Profit We are independent of the Group, and its joint ventures in
accordance with the Code of Ethics issued by the Institute
and Loss (including Other Comprehensive Income), the
of Chartered Accountants of India (ICAI) together with the
Consolidated Cash Flow Statement and the Consolidated
ethical requirements that are relevant to our audit of the
Statement of Changes in Equity for the year then ended,
consolidated financial statements under the provisions of
and a summary of significant accounting policies and other
the Act and the Rules made thereunder, and we have
explanatory information.
fulfilled our other ethical responsibilities in accordance with
In our opinion and to the best of our information and these requirements and the ICAI’s Code of Ethics. We believe
according to the explanations given to us, and based on the that the audit evidence obtained by us and the audit
consideration of reports of the other auditors on separate evidence obtained by the other auditors in terms of their
financial statements of the subsidiaries and joint ventures reports referred to in the sub- paragraphs (a) and (b) of the
referred to in the Other Matters section below, the aforesaid Other Matters section below,
consolidated financial statements give the information is sufficient and appropriate to provide a basis for our
required by the Companies Act, 2013 (“the Act”) in the audit opinion on the consolidated financial statements.
manner so required and give a true and fair view in
Key Audit Matters
conformity with the Indian Accounting Standards prescribed
under Section 133 of the Act read with the Companies Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
(Indian Accounting Standards) Rules, 2015, as amended
consolidated financial statements of the current period.
(‘Ind AS’), and other accounting principles generally
accepted in India, of the consolidated state of affairs of the These matters were addressed in the context of our
audit of the consolidated financial statements as a
Group as at 31 March 2021, and their consolidated profit,
whole, and in forming our opinion thereon, and we do
their consolidated total comprehensive income, their
not provide a
consolidated cash
separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be
communicated in our report.

Sr.
No. Key Audit Matter Auditor’s Response

1 Goodwill impairment assessment

The Goodwill recognized in the
consolidated financial statements includes
goodwill amounting to ` 1,018.86 crores
recognised as at 31 March 2021 in respect
of a Cash Generating Unit (CGU). We
considered
this as key audit matter due to the
amount of balance of goodwill and Annual Report 2020-21
because of
the Group’s assessment of the value-in-
use (VIU) calculations of the CGU. This
assessment involves judgements about
the
valuation methodology, future performance
of business which includes likely impact
on account of lockdowns due to spread
of COVID-19 pandemic and discount
rate applied to future cash flow
projections.
Our audit procedures included the following:
Obtained an understanding of the process
followed by the management to determine the
recoverable amounts of CGU to which the
goodwill has been allocated.
Evaluated the design and implementation and
tested operating effectiveness of the internal
control established by the Company relating to
review of goodwill impairment testing
performed by the management.
Evaluated management’s identification of
CGU and the methodology followed by
management for the impairment
assessment is in compliance with the
prevailing accounting principles.
Validated impairment models used through
testing of the mathematical accuracy and
verifying the application of the input
assumptions.
Evaluated the competency of the internal
expert of the Company and reviewed the
valuation prepared by such expert.
Evaluated appropriateness of key assumptions
included in the cash flow forecast used in
computing recoverable amount of the CGU with
reference to our understanding of their
business and past trends. Review of the factors
considered by the Management on the
business projections on account of lockdowns
due to spread of COVID-19 pandemic.
Performed sensitivity analysis of key assumptions.
Engaged Internal valuation specialist to
evaluate the appropriateness of methodology
used. to compute the recoverable amount of
the CGU and the key underlying assumptions.
Tested the arithmetical accuracy of
the computation of recoverable
amounts of the CGU.

75
Independent Auditor’s Report

Sr.
No. Key Audit Matter Auditor’s Response

2 Revenue Recognition at a
subsidiary (Reliance Retail Limited) The Component Auditor has reported that they have performed the
below procedures:
Revenue from operations for the year ended
31 March 2021 was ` 1,24,620.39 crores. Obtained understanding of the process followed by the management to record the
revenue from each store.
The subsidiary company is engaged in
organised retail and the trading transactions Evaluated the design and tested the operating effectiveness of the internal controls
and established by the Company over reconciliation of revenue recorded with underlying
trades in various consumption baskets on a collection made by the Company.
principal basis and recognises full value of Involved information technology specialist to test the automated controls and reports
consideration as its Revenue. The involved in the reconciliation of revenue.
subsidiary company recognises revenue on
On a test-check basis, selected samples of stores on various dates. For such
transfer of control of traded goods to the
selections, have obtained details of revenue recorded through various mode of
customers.
payments from entity’s accounting system. Reconciled revenue recorded as per such
Transfer of control coincides with collection details with the underlying collection made by the Company as per cash receipts,
of Cash or Cash Equivalent from merchant payment report, and other third party supporting.
customers. In view of the above and since
revenue is a key performance indicator of
the Company, we have identified revenue
recognition as a key audit matter.

Information Other than the Financial Statements consolidated changes in equity of the Group including its joint
and Auditor’s Report Thereon ventures in accordance with the Ind AS and other accounting
• The Parent’s Board of Directors is responsible for the principles generally accepted in India. The respective
other information. The other information comprises
the information included in the Directors’ report, but
does not include the consolidated financial
statements, standalone financial statements and our
auditor’s report thereon.

• Our opinion on the consolidated 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 consolidated financial

statements, our responsibility is to read the other
information, compare with the financial statements of the
subsidiaries and joint ventures audited by the other
auditors, to the extent it relates to these entities and, in
doing so, place reliance on the work of the other auditors
and consider whether the other information is materially
inconsistent with the consolidated financial statements or
our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated. Other
information so far as it relates to the subsidiaries and joint
ventures, is traced from their financial statements audited by
the other auditors.

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.
Management’s Responsibility for the Consolidated
Financial Statements
The Parent’s Board of Directors is responsible for the
matters stated in Section 134(5) of the Act with respect
to the preparation of these consolidated financial
statements that give a true and fair view of the
consolidated financial position, consolidated financial
performance including other comprehensive income,
consolidated cash flows and
Board of Directors of the companies included in the assessing the ability of the respective entities to continue
Group and of its joint ventures are responsible for as a going concern, disclosing, as applicable, matters
maintenance of adequate accounting records in related to going concern and using the going concern
accordance with the provisions of the Act for basis of accounting unless the respective Board of
safeguarding the assets of the Directors either intends to liquidate their respective
Group and its joint ventures and for preventing and entities or to cease operations, or has no realistic
detecting frauds and other irregularities; selection and alternative but to do so.
application of appropriate accounting policies; making
The respective Board of Directors of the companies
judgements and estimates that are reasonable and
included in the Group and of its joint ventures are also
prudent; and design, implementation and maintenance
responsible for overseeing the financial reporting process of
of adequate internal financial controls, that were
the Group and of its joint ventures.
operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the Auditor’s Responsibility for the Audit of the
preparation and presentation of the financial statements Consolidated Financial Statements
that give a true and fair view and are free from material Our objectives are to obtain reasonable assurance about
misstatement, whether due to fraud or error, whether the consolidated financial statements as a whole
which have been used for the purpose of preparation of are free from material misstatement, whether due to
the consolidated financial statements by the Directors of fraud or error and to issue an auditor’s report that
the Parent, as aforesaid. includes our opinion. Reasonable assurance is a high
level of assurance
In preparing the consolidated financial statements,
but is not a guarantee that an audit conducted in
the respective Board of Directors of the companies
accordance with SAs will always detect a material
included in the Group (and of its joint ventures) are
misstatement when it
responsible for

76 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

exists. Misstatements can arise from fraud or error and are performance of the audit of the financial statements of
considered material if, individually or in the aggregate, they such entities included in the consolidated financial
could reasonably be expected to influence the economic statements of which we are the independent auditors. For
decisions of users taken on the basis of these consolidated the other entities included
financial statements.
Annual Report 2020-21
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
skepticism throughout the audit. We also:

• Identify and assess the risks of material

misstatement of the consolidated 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 control

relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Under Section 143(3)(i) of the Act, we are also
responsible
for expressing our opinion on whether the Parent has
adequate internal financial controls system 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 ability of the
Group and its joint ventures 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
consolidated 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 Group and its joint ventures to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and

content of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding

the financial information of the entities within the
Group and its joint ventures to express an opinion on
the consolidated financial statements. We are
responsible for the direction, supervision and
 in the consolidated financial statements, which have 77
been audited by the other auditors, such other
auditors remain responsible for the direction,
supervision and performance of the audits carried
out by them. We remain solely responsible for our
audit opinion.

Materiality is the magnitude of misstatements in the

consolidated financial statements that, individually or in
aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
consolidated financial statements may be influenced. We
consider quantitative materiality and qualitative factors in
(i) 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 consolidated financial statements.

We communicate with those charged with governance of

the Parent and such other entities included in the
consolidated financial statements of which we are the
independent auditors regarding, among other matters,
the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in
internal control 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
consolidated 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.

Other Matters
a) We did not audit the financial statements of 10
subsidiaries whose financial statements reflect
total assets of ` 54,381.54 crores as at 31 March
2021, total revenues of ` 1,37,924.57 crores and
net cash inflows amounting to ` 45.76 crores for
the year ended on that date, as considered in the
consolidated financial
statements. The consolidated financial statements also
include the Group’s share of net loss of ` 7.36 crores
for the year ended 31 March 2021, as considered
in the consolidated financial statements, in respect
of 2 joint ventures, whose financial statements
have not been audited by us. These financial
statements have been audited by other auditors
whose reports have been furnished to us by the
Management and our opinion on the consolidated
financial statements, in so far as
it relates to the amounts and disclosures included in
respect of these subsidiaries and joint ventures, and
our report in terms of sub section (3) of Section 143
of the
Independent Auditor’s Report

Act, in so far as it relates to the aforesaid subsidiaries

taken on record by the Board of Directors of the
and joint ventures is based solely on the reports of
Parent and the reports of the statutory auditors of its
the other auditors.
subsidiary companies and joint venture companies
b) The consolidated financial statements also include the incorporated
Group’s share of net loss of ` 41.00 crores for the year in India, none of the directors of the Group companies
ended 31 March 2021, as considered in the and its joint venture companies incorporated in India is
consolidated financial statements, in respect of 12 joint disqualified as on 31 March 2021 from being
ventures, whose financial statements have not been appointed as a director in terms of Section 164(2) of
audited the Act.
by us. These financial statements are unaudited and
f) With respect to the adequacy of the
have been furnished to us by the Management and
internal financial controls over financial
our opinion on the consolidated financial statements,
reporting
in so far as it relates to the amounts and disclosures
and the operating effectiveness of such controls,
included in respect of these subsidiaries, and joint
refer to our separate Report in “Annexure A” which is
ventures, is based solely on such unaudited financial
based on the auditors’ reports of the Parent,
statements.
subsidiary companies, and joint venture companies
In our opinion and according to the information incorporated in India. Our report expresses an
and explanations given to us by the Management,
unmodified opinion on the adequacy and operating
these financial statements are not material to the
effectiveness
Group.
of internal financial controls over financial reporting of
Our opinion on the consolidated financial statements those companies.
above and our report on Other Legal and Regulatory
g) With respect to the other matters to be included in
Requirements below, is not modified in respect of the
the Auditor’s Report in accordance with the
above matters with respect to our reliance on the work
requirements of Section 197(16) of the Act, as
done and the reports of the other auditors and the
amended, according to the explanations given to us,
financial statements certified by the Management.
during the year no remuneration is paid/payable by
Report on Other Legal and Regulatory the Parent to its directors, hence the provisions of
Requirements Section 197 of the Companies Act, 2013 do not
As required by Section 143(3) of the Act, based on our apply to the Parent.
audit and on the consideration of the reports of the other
h) With respect to the other matters to be
auditors on the separate financial statements of the
included in the Auditor’s Report in accordance
subsidiaries and joint ventures referred to in the Other
with
Matters section above we report, to the extent applicable
Rule 11 of the Companies (Audit and Auditors)
that:
Rules, 2014, as amended in our opinion and to
a) We have sought and obtained all the information and the best of our information and according to
explanations which to the best of our knowledge and the explanations given to us:
belief were necessary for the purposes of our audit of
i. The consolidated financial statements disclose
the aforesaid consolidated financial statements.
the impact of pending litigations on the
b) In our opinion, proper books of account as required by consolidated financial position of the Group and
law relating to preparation of the aforesaid its joint ventures as referred to in Note 32 to the
consolidated financial statements have been kept so consolidated financial statements.
far as it appears from our examination of those
ii. The Group, and its joint ventures did not have
books, and the reports of the other auditors.
any material foreseeable losses on long-term
c) The Consolidated Balance Sheet, the Consolidated contracts including derivative contracts.
Statement of Profit and Loss including Other
iii. There were no amounts which were required to
Comprehensive Income, the Consolidated Cash Flow
be transferred to the Investor Education and
Statement and the Consolidated Statement of
Protection Fund by the Parent, and its subsidiary
Changes in Equity dealt with by this Report are in
companies and joint venture companies
agreement with the relevant books of account
incorporated in India.
maintained for
the purpose of preparation of the For Deloitte Haskins & Sells LLP
consolidated financial statements. Chartered
Accountants (Firm’s Registration No.
d) In our opinion, the aforesaid consolidated financial 117366W/W-100018)
statements comply with the Ind AS specified
under Section 133 of the Act. Ketan Vora
(Partner)
e) On the basis of the written representations (Membership No. 100459)
received from the directors of the Parent as on 31
(UDIN: 21100459AAAAJY6844)
March 2021
 Place: 30 April 2021
Mumbai Date:

78 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

“Annexure A”
To the Independent Auditor’s
Report

all material respects.

(Referred to in paragraph 1(f) under ‘Report on Other
Our audit involves performing procedures to obtain audit
Legal and Regulatory Requirements’ section of our
evidence about the adequacy of the internal financial
report of even date)
Annual Report 2020-21
Report on the Internal Financial Controls
Over Financial Reporting under Clause
(i) of sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated Ind AS
financial statements of the Company as of and for the
year ended 31 March 2021, we have audited the internal
financial controls over financial reporting of Reliance Retail
Ventures Limited (hereinafter referred to as “the Parent”)
and its subsidiary companies, and its joint ventures, which
are companies incorporated in India, as of that date.

Management’s Responsibility for Internal

Financial Controls
The respective Board of Directors of the Parent, its
subsidiary companies and its joint ventures, which are
companies incorporated in India, are responsible for
establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria
established by the respective Companies considering the
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include
the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business,
including adherence to the respective company’s policies,
the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act,
2013.

Auditor’s Responsibility
Our responsibility is to express an opinion on the
internal financial controls over financial reporting of the
Parent, its subsidiary companies and its joint ventures,
which are companies incorporated in India, based on
our audit. We conducted our audit in accordance with
the Guidance
Note on Audit of Internal Financial Controls Over
Financial Reporting (the “Guidance Note”) issued by the
Institute of Chartered Accountants of India and the
Standards on
Auditing, prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of
internal financial controls. Those Standards and the
Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal
financial controls over financial reporting was established
and maintained and if such controls operated effectively in
controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing
the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of
internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material
misstatement of the financial statements, whether due to
fraud or error.

We believe that the audit evidence we have obtained

and the audit evidence obtained by the other
auditors of the subsidiary companies and joint
ventures, which are companies incorporated in India,
in terms of their reports
referred to in the Other Matters paragraph below, is
sufficient and appropriate to provide a basis for our audit
opinion on the internal financial controls system over
financial reporting of the Parent, its subsidiary
companies and its joint ventures, which are companies
incorporated in India.

Meaning of Internal Financial Controls

Over Financial Reporting
A company’s internal financial control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
purposes in accordance with generally accepted
accounting principles. A company’s internal financial
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures
of the company are being made only in accordance with
authorisations of management and directors of the
company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised
acquisition, use, or
disposition of the company’s assets that could have a
material effect on the financial statements.

Inherent Limitations of Internal Financial

Controls Over Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including the
possibility of collusion or improper management
override of controls,
material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation
of the internal financial controls over financial reporting to
future periods are subject to the risk that the internal
financial control over financial reporting may become
inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures
may deteriorate.

79
Opinion Other matters
In our opinion to the best of our information and Our aforesaid report under Section 143(3)(i) of the Act on
according to the explanations given to us and based on the adequacy and operating effectiveness of the internal
the consideration of the reports of the other auditors financial controls over financial reporting insofar as it relates
referred to in the to 10 subsidiary companies and 2 joint ventures, which
Other Matters paragraph below, the Parent, its subsidiary are companies incorporated in India, is based solely on the
companies and its joint ventures, which are companies corresponding reports of the auditors of such companies
incorporated in India, have, in all material respects, an incorporated in India.
adequate internal financial controls system over financial
reporting and such internal financial controls over financial Our opinion is not modified in respect of the above matter.
reporting were operating effectively as at 31 March 2021
based on the criteria for internal financial control over
financial reporting established by the respective For Deloitte Haskins & Sells LLP
companies considering the essential components of Chartered
internal control stated in the Guidance Note on Audit of Accountants (Firm‘s Registration No.
Internal Financial Controls Over Financial Reporting issued 117366W/W-100018)
by the Institute of Chartered Accountants of India. Ketan Vora
(Partner)
(Membership No. 100459)
(UDIN: 21100459AAAAJY6844)

Place: Mumbai
Date: 30 April
2021
80 Reliance Retail Ventures Limited
Balance Sheet MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

as at 31st March, 2021 Consolidated

` in crore
As at As at
Notes
31st March, 2021 31st March, 2020
Assets
Non-Current Assets
Property, Plant and Equipment 1 11,979.75 9,610.28
Capital Work-in-Progress 1 7,057.92 6,103.83
Goodwill 1,993.92 1,321.41
Intangible Assets 1 4,800.20 1,403.90
Intangible Assets Under Development 1 4,417.14 2,752.74
Financial Assets
Investments 2 579.36 521.98
Loans 3 118.31 134.33
Deferred Tax Assets (Net) 4 210.21 145.23
Other Non- Current Assets 5 229.50 272.81
Total Non-Current Assets 31,386.31 22,266.51
Current Assets
Inventories 6 13,139.79 10,322.41
Financial Assets
Investments 7 42,786.68 242.41
Trade Receivables 8 6,220.99 2,868.77
Cash and Cash Equivalent 9 548.42 488.01
Other Financial Assets 10 2,982.99 1,533.96
Other Current Assets 11 6,637.45 1,907.69
Total Current Assets 72,316.32 17,363.25
Total Assets 1,03,702.63 39,629.76
Equity and Liabilities
Equity
Equity Share Capital 12 6,863.54 6,000.00
Other Equity 13 74,662.14 13,064.97
Non-Controlling Interests 62.29 83.71
Non-Current Liabilities
Financial Liabilities
Borrowings 14 0.01 0.04
Other Financial Liabilities 15 1,880.31 1,707.41
Other Non-Current Liabilities 16 33.57 -
Provisions 17 90.16 57.77
Deferred Tax Liabilities (Net) 4 1,093.67 958.13
Total Non-Current Liabilities 3,097.72 2,723.35
Current Liabilities
Financial Liabilities
Borrowings 18 9,029.51 4,618.32
Trade Payables 6,989.29 6,422.06
Other Financial Liabilities 19 1,687.73 5,510.21
Other Current Liabilities 20 1,294.37 1,201.14
Provisions 21 16.04 6.00
Total Current Liabilities 19,016.94 17,757.73
Total Liabilities 22,114.66 20,481.08
Total Equity and Liabilities 1,03,702.63 39,629.76
Significant Accounting Policies
See accompanying Notes to the Financial Statements 1 to 40

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021

Annual Report 2020-21 81

 Statement of Profit and Loss
for the year ended 31st March, 2021

` in crore

Notes 2020-21 2019-20

Income
Value of Sales 1,48,653.10 1,48,575.25
Income from Services 8,975.99 14,360.75
Value of Sales & Services (Revenue) 1,57,629.09 1,62,936.00
Less: GST Recovered 18,552.13 16,664.44
Revenue from Operations 22 1,39,076.96 1,46,271.56
Other Income 23 1,525.56 158.43
Total Income 1,40,602.52 1,46,429.99
Expenses
Cost of Materials Consumed 0.94 2.99
Purchases of Stock-in-Trade 1,21,929.11 1,23,653.10
Changes in Inventories of Finished Goods and Stock-in-Trade 24 (2,711.22) 1,819.38
Employee Benefits Expense 25 1,619.50 1,256.51
Finance Costs 26 522.41 950.57
Depreciation and Amortisation Expense 1 1,835.92 1,390.80
Other Expenses 27 9,926.73 10,009.14
Total Expenses 1,33,123.39 1,39,082.49
Profit Before Share of Profit / (Loss) of Associates and Joint Ventures and Tax 7,479.13 7,347.50
Share of Profit / (Loss) of Associates and Joint Ventures (48.36) (6.49)
Profit Before Tax 7,430.77 7,341.01
Tax Expenses:
Current Tax 28 1,809.46 1,043.21
Deferred Tax 28 140.02 852.76
Tax expense of Earlier Years - (2.93)
Profit for the year 5,481.29 5,447.97
Other Comprehensive Income (OCI)
(i) Items that will not be reclassified to Profit or loss 23.1 4.86 (15.48)
(ii) Income tax relating to items that will not be reclassified to profit or loss (0.69) 2.09
(iii) Items that will be reclassified to Profit or loss 23.1 (286.33) 52.17
(iv) Income tax relating to items that will be reclassified to profit or loss 78.56 (3.46)
Total Other Comprehensive Income for the Year [Net of Tax] (203.60) 35.32
Total Comprehensive Income for the Year 5,277.69 5,483.29
Net Profit Attributable to:
(a) Owners of the Company 5,543.07 5,483.29
(b) Non Controlling Interest (61.78) (35.32)
Other Comprehensive Income attributable to:
(a) Owners of the Company (208.74) 27.81
(b) Non Controlling Interest 5.14 7.51
Total Comprehensive Income attributable to:
(a) Owners of the Company 5,334.33 5,511.10
(b) Non Controlling Interest (56.64) (27.81)
Earnings per equity share of face value of ` 10 each
Basic (in `) 31 8.64 9.14
Diluted (in `) 31 8.64 7.83
Significant Accounting Policies
See accompanying Notes to the Financial Statements 1 to 40

As per our Report of even date For and on behalf of the Board

For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021

82 Reliance Retail Ventures Limited

Statement of Changes in MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

Equity Consolidated

for the year ended 31st March, 2021

A. Equity Share Capital

` in crore
Balance at the beginning Changes in equity share Balance at the end of Changes in equity share Balance at the end of
of the reporting period capital during the year the reporting period i.e. capital during the year the reporting period i.e.
i.e. 1st April, 2019 2019-20 31st March, 2020 2020-21 31st March, 2021

6,000.00 - 6,000.00 863.54 6,863.54

B. Other Equity
` in crore
Instruments Classified Other Total
Reserves & Surplus
as Equity Comprehensive
Income
Instrument
Classified as
Particulars Equity 8.5%
Call money Non Cumulative
Capital Securities Retained
towards Optionally
Reserve Premium Earnings
OCPS Convertible
Preference
Shares of ` 10
each, (OCPS)

As on 31st March
2020
Balance as at 1st April 2019 650.00 200.00 0.06 800.00 5,856.59 24.26 7,530.91
Add : Call Money received
during the year 0.02 - - - - - 0.02
Add : Others - - - - 22.94 - 22.94
Add: Profit for the year - - - - 5,483.29 27.81 5,511.10
Balance as at 31st March, 2020 650.02 200.00 0.06 800.00 11,362.82 52.07 13,064.97
As on 31st March 2021
Balance as at 1st April 2020 650.02 200.00 0.06 800.00 11,362.82 52.07 13,064.97
Add : Call Money received
during the year 2,350.02 - - - - - 2,350.02
Add/(Less): Converted into
Preference share capital (3,000.04) 600.00 - 2,400.00 - - (0.04)
and securities premium
Less: Redemption of OCPS - (800.00) - (3,200.00) - - (4,000.00)
Add: Issue on Equity shares - - - 58,051.46 - - 58,051.46
Less: Others - - - (78.16) (60.44) - (138.60)
Add: Profit for the year - - - 5,543.07 (208.74) 5,334.33
Balance as at 31st March 2021 - - 0.06 57,973.30 16,845.45 (156.67) 74,662.14

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021
Annual Report 2020-21 83
Cash Flow Statement
for the year ended 31st March, 2021

` in crore
2020-21 2019-20
A: Cash Flow from Operating Activities
Net Profit before Tax as per Statement of Profit and Loss 7,430.77 7,341.01
Adjusted for:
Loss on sale/ discarding of Property, Plant and Equipment (net) 26.57 46.44
Depreciation and Amortisation Expense 1,835.92 1,390.80
Effect of Exchange Rate Change (34.07) (22.55)
Net Gain on Financial Assets (646.01) (68.03)
Share of (Profit)/Loss of Joint Venture 48.36 6.49
Dividend Income - (2.75)
Interest Income (723.64) (28.83)
Finance Costs 522.41 950.57
1,029.54 2,272.14
Operating Profit before Working Capital Changes 8,460.31 9,613.15
Adjusted for:
Trade and Other Receivables (5,297.42) 780.57
Inventories (2,817.38) 1,656.00
Trade and Other Payables 1,535.32 5,955.08
(6,579.48) 8,391.65
Cash Generated from Operations 1,880.83 18,004.80
Taxes Paid (Net) (1,652.68) (1,098.12)
Net Cash flow from Operating Activities* 228.15 16,906.68
B: Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Intangible Assets (9,993.90) (7,937.22)
Proceeds from disposal of Property, Plant and Equipment and
13.32 504.73
Intangible Assets
Purchase of Financial instruments (98,139.63) (56,424.33)
Dividend Income - 2.75
Proceeds from Sale of Financial instruments 55,785.10 59,074.37
Movement in Loans and Advances (4,216.07) (30.00)
Interest Income 32.95 26.66
Net Cash Flow used in Investing Activities (56,518.23) (4,783.04)
C: Cash Flow from Financing Activities
Repayment from Borrowing – Non current (0.11) (0.15)
Movement in Deposits (4,700.00) (2,720.11)
Payment of Lease Liabilities (51.94) (168.84)
Proceeds from Issue of Equity share (including securities premium) 58,836.84 -
Repayment of Preference share (4,000.00) -
Proceeds from Issue of share capital to non controlling interest 0.02 0.86
Call Money Received for Preference Shares 2,350.00 0.02
Borrowings Current (Net) 4,411.19 (8,213.42)
Interest Paid (528.26) (946.99)
Net Cash Flow from / (used in) Financing Activities 56,317.74 (12,048.63)
Net (Decrease)/ Increase in Cash and Cash Equivalents 27.66 75.01
Opening Balance of Cash and Cash Equivalents 488.01 409.65
Add: Upon Addition of Subsidiaries 32.75 3.35
Closing Balance of Cash and Cash Equivalents 548.42 488.01
* Amount spent in Cash towards Corporate Social Responsibility is ` 97.70 crore (Previous Year ` 52.29 crore).

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial
Firm Registration No. 117366W/W-100018 Officer Manoj H. Modi
Akash M. Ambani
Ketan Vora K. Sridhar Isha M. Ambani
Company Secretary
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021

84 Reliance Retail Ventures Limited

Notes MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

Consolidated
to the Consolidated Financial Statements for the year ended 31st March, 2021

A. Corporate Information liabilities are converted at rates prevailing at

the end of the year. Any exchange difference
The Consolidated Financial Statements comprise arising on
of Financial Statements of “Reliance Retail
Ventures Annual Report 2020-21
Limited” (“the Holding Company” or “The Company”)
and its subsidiaries (collectively referred to as “the
st
Group”) for the year ended 31 March, 2021.

The principal activity of the Group, its Joint Ventures

and associates consist of ‘Organised Retail’ primarily
catering to Indian consumers in various consumption
baskets and ‘Petro Retail’. Further details about the
business operations of the Group are provided in Note
No. 36 Segment Information.

B. Significant Accounting Policies

B.1 Basis of Preparation and Presentation
The Consolidated Financial Statements have
been prepared on the historical cost basis except
for following assets and liabilities which have
been measured at fair value:

i) Certain Financial Assets and

Liabilities (including derivative
instruments),

ii) Defined Benefit Plans – Plan Assets and

iii) Equity settled Share Based Payments

The Consolidated Financial Statements of the

Group have been prepared to comply with the
Indian Accounting Standards (‘Ind AS’), including
the Rules notified under the relevant provisions
of the Companies Act, 2013.

The Consolidated Financial Statements

comprises of Reliance Retail Ventures Limited
and its subsidiaries, being the entities that it
controls. Control is assessed in accordance with
the requirement of Ind AS 110 – Consolidated
Financial Statements.

The Consolidated Financial Statements are

presented in Indian Rupees (`) and all values are
rounded to the nearest crore (` 00,00,000),
except when otherwise indicated.

B.2 Principles of Consolidation

(a) The financial statements of the Holding
Company and its subsidiaries are combined
on a line by line basis by adding together like
items of assets, liabilities, equity, incomes,
expenses and cash flows, after fully eliminating
intra- group balances and intra-group
transactions.

(b) Profits or losses resulting from intra-

group transactions that are recognised in
assets, such as Inventory and Property,
Plant and Equipment, are eliminated in
full.

(c) In case of foreign subsidiaries, revenue

items are considered at the average rate
prevailing during the year. All assets and
 consolidation is recognized in the Foreign on Current/ Non-Current classification.
Currency Translation Reserve (FCTR).

(d) The audited / unaudited financial 85

statements of joint ventures / associates
have been prepared in accordance with
the Generally Accepted Accounting
Principle / Ind AS.

(e) The difference in accounting policies

of the Holding Company and its
subsidiaries /
joint ventures are not material and there
st
are no material transactions from 1
st
January 2021 to 31 March 2021 in
respect of subsidiaries having financial
year ended
31 December 2020.

(f) The Consolidated Financial Statements

have been prepared using uniform
accounting policies for like transactions
and other events in similar
circumstances.

(g) The carrying amount of the parent’s

investment in each subsidiary is offset
(eliminated) against the parent’s
portion of equity in each subsidiary.

(h) The difference between the proceeds

from disposal of investment in
subsidiaries and the carrying amount of
its assets less liabilities
as on the date of disposal is
recognised in the Consolidated
Statement of Profit and Loss being
the profit or loss on disposal of
investment in subsidiary.

(i) Investment in Joint Ventures has been

accounted under the Equity Method as
per Ind AS 28 – Investments in Associates
and Joint Ventures. Investments in joint
operations are accounted using the
Proportionate Consolidation Method as
per Ind AS 111 – Joint Arrangements.

(j) The Group accounts for its share of

post- acquisition changes in net assets
of joint ventures, after eliminating
unrealised profits and losses resulting
from transactions between the Group
and its joint ventures.

(k) Non-Controlling Interest’s share of profit /

loss of consolidated subsidiaries for the
year is identified and adjusted against the
income of the Group in order to arrive at
the net income attributable to
shareholders of the Company.

(l) Non-Controlling Interest’s share of net

assets of consolidated subsidiaries is
identified and presented in the
Consolidated Balance Sheet.

B.3 Summary of Significant

Accounting Policies
(a) Current and Non-Current
Classification The Group presents assets
and liabilities in the Balance Sheet based
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

An asset is treated as Current when it is – initially measured at cost, being the excess of
the aggregate of the consideration transferred
- Expected to be realised or and the amount recognised for non-controlling
intended to be sold or consumed
interests, and any previous interest held,
in normal operating cycle;

- Held primarily for the purpose of

trading;

- Expected to be realised within

twelve months after the reporting
period, or

- Cash or cash equivalent unless restricted

from being exchanged or used to settle
a liability for at least twelve months after
the reporting period.

All other assets are classified as non-current.

A liability is treated as current when –

- It is expected to be settled in
normal operating cycle;

- It is held primarily for

the purpose of trading;

- It is due to be settled within twelve

months after the reporting period,
or

- There is no unconditional right to defer

the settlement of the liability for at least
twelve months after the reporting
period.

The Group classifies all other liabilities

as non-current.

Deferred tax assets and liabilities are classified

as non-current assets and liabilities.

(b) Business Combination

Business Combinations are accounted for
using the acquisition method of accounting,
except for common control transactions
which are accounted using the pooling of
interest method that is accounted at carrying
values.

The cost of an acquisition is measured at

the fair value of the assets transferred,
equity instruments issued and liabilities
assumed at their acquisition date i.e. the
date on which control is acquired.
Contingent consideration to be transferred
is recognised at fair value and included as
part of cost of acquisition.
Transaction related costs are expensed in
the period in which the costs are incurred.

For each business combination, the Group

elects whether to measure the non-
controlling interests in the acquiree at fair
value or at
the proportionate share of the acquiree’s
identifiable net assets.

Goodwill arising on business combination is

 over the net identifiable assets acquired project development stage prior to its
and liabilities assumed. After initial intended use, are considered as pre-
recognition, Goodwill is tested for operative expenses and disclosed under
impairment annually and measured at Capital Work-in-Progress.
cost less any accumulated impairment
Depreciation on Property, Plant and
losses if any.
Equipment is provided on straight-line method
(c) Property, Plant and Equipment and based on useful life of the assets as
prescribed in Schedule II to the Companies
Property, Plant and Equipment are stated
Act, 2013. Leasehold improvements are
at cost, net of recoverable taxes, trade
amortized over the lower of estimated useful
discount and rebates less accumulated
life or lease period; on assets acquired under
depreciation and impairment losses, if
finance lease depreciation is provided over
any. Such cost includes purchase price
the lease term.
and any cost directly attributable to
bringing the assets to its working condition The residual values, useful lives and methods
for its intended use. of depreciation of Property, Plant and
Equipment are reviewed at each financial
Subsequent costs are included in the
year end and adjusted prospectively, if
asset’s carrying amount or recognised as
appropriate.
a separate asset, as appropriate, only
when it is probable that future economic Gains or losses arising from derecognition of
benefits associated with the item will flow a Property, Plant and Equipment are
to the entity and the cost can be measured as the difference between the net
measured reliably. disposal proceeds and the carrying amount
of the asset and are recognized in the
Property, Plant and Equipment which are
Statement of Profit and Loss when the asset
significant to the total cost of that item of
is derecognised.
Property, Plant and Equipment and having
different useful life are accounted (d) Leases
separately. The Group, as a lessee, recognizes a right-of-
use asset and a lease liability for its leasing
Other Indirect Expenses incurred
arrangements, if the contract conveys the
relating to project, net of income
right to control the use of an identified asset.
earned during the

86 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

The contract conveys the right to control measured as the

the use of an identified asset, if it involves difference between the net disposal proceeds
the use of an identified asset and the and the carrying amount of the asset and are
Group has
substantially all of the economic benefits
from use of the asset and has right to direct
the use of the identified asset. The cost of the
right-
of-use asset shall comprise of the amount
of the initial measurement of the lease
liability adjusted for any lease payments
made at or before the commencement
date plus any initial direct costs incurred.
The right-of-use assets is subsequently
measured at cost less any accumulated
depreciation, accumulated impairment
losses, if any and adjusted for any
remeasurement of the lease liability. The
right-of-use assets is depreciated using the
straight-line method from the
commencement date over the shorter of
lease term or useful life of right-of-use asset.

The Group measures the lease liability at the

present value of the lease payments that are
not paid at the commencement date of the
lease. The lease payments are discounted
using the interest rate implicit in the lease, if
that rate can be readily determined. If that
rate cannot be readily determined, the group
uses incremental borrowing rate.

For short-term and low value leases, the

group recognizes the lease payments as
an
operating expense on a straight-line basis over
the lease term.

(e) Intangible Assets

Intangible Assets are stated at cost of
acquisition net of recoverable taxes, trade
discount and rebates less accumulated
amortisation / depletion and impairment loss,
if any. Such cost includes purchase price
and any cost directly attributable for
preparing the asset for its intended use.

Subsequent costs are included in the asset’s

carrying amount or recognised 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
 recognized in the Statement of Profit and to known amounts of cash and which are
Loss when the asset is derecognized. subject to an insignificant risk of changes in
value.
The Company’s intangible assets
comprises assets with finite useful life (h) Finance Costs
which are amortised on a straight-line basis Borrowing costs include exchange
over the period of their expected useful differences arising from foreign currency
life. The amortisation period and the borrowings to the extent they are regarded
amortisation method for Intangible Assets as an adjustment to the interest cost.
with a finite useful life are reviewed at Borrowing costs that
each reporting date. are directly attributable to the acquisition
or construction of qualifying assets are
Computer software is amortised over a
capitalised as part of the cost of such
period of 5 years on a straight-line basis.
assets. A qualifying asset is one that
(f) Research and Development Expenditure necessarily takes substantial period of time
Revenue expenditure pertaining to to get ready for
research is charged to the Consolidated its intended use.
Statement of Profit and loss.
Interest income earned on the temporary
Development costs are capitalized as an investment of specific borrowings pending
intangible asset if it can be demonstrated their expenditure on qualifying assets is
that the project is expected to generate deducted from the borrowing costs eligible
future economic benefits, it is probable for capitalisation.
that those future economic benefits will
All other borrowing costs are charged to the
flow to the entity and the costs of the
Consolidated Statement of Profit and Loss
asset can be measured reliably, else it is
for the period for which they are incurred.
charged to the Statement of Profit and
Loss. (i) Inventories
Items of inventories are measured at
(g) Cash and Cash Equivalents
lower of cost and net realisable value
Cash and cash equivalents comprise of
after providing for obsolescence, if any.
cash on hand, cash at banks, short term
Cost of inventories comprises of cost of
deposits and short term highly liquid
purchase,
investments that are readily convertible

Annual Report 2020-21 87

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021
recognised as a finance cost.

cost of conversion and other costs including

manufacturing overheads net of recoverable
taxes incurred in bringing them to their
respective present location and condition.

Costs of inventories are determined on

weighted average basis except Gold and
silver is determined on FIFO basis. Inventories
of Gold / Silver are adjusted with gains / loss
on qualifying fair value hedges.

(j) Impairment of Non-Financial Assets

– Property, Plant and Equipment,
Goodwill & Intangible Assets
The Group assesses at each reporting date
as to whether there is any indication that
any Property, Plant and Equipment,
Goodwill and Intangible assets or group of
assets, called
Cash Generating Units (CGU) may be
impaired. If any such indication exists, the
recoverable amount of an asset or CGU is
estimated
to determine the extent of impairment, if
any. When it is not possible to estimate
the
recoverable amount of an individual asset,
the Group estimates the recoverable amount
of the CGU to which the asset belongs.

An impairment loss is recognised in the

Consolidated Statement of Profit and Loss
to the extent, asset’s carrying amount
exceeds its recoverable amount. The
recoverable amount is higher of an asset’s
fair value less cost of disposal and value in
use. Value in use is based on the estimated
future cash flows, discounted to their
present value using pre- tax discount rate
that reflects current market assessments of
the time value of money and risk specific to
the assets.

The impairment loss recognised in

prior accounting period is reversed if
there has been a change in the
estimate of recoverable amount.

(k) Provisions
Provisions are recognised when the Group
has a present obligation (legal or
constructive) as
a result of a past event, it is probable that an
outflow of resources embodying economic
benefits will be required to settle the
obligation and a reliable estimate can be
made of the amount of the obligation.

If the effect of the time value of money

is material, provisions are discounted
using a current pre-tax rate that
reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
 contributions towards
Provident Fund, Superannuation Fund and
(l) Contingent liability Pension Scheme.
Disclosure of contingent liability is made
when there is a possible obligation arising The Group recognizes contribution payable
from to the provident fund scheme as an
past events, the existence of which will be expense,
confirmed only by the occurrence or non- when an employee renders the related
occurrence of one or more uncertain service. If the contribution payable to the
future events not wholly within the control scheme for service received before the
of the Group or a present obligation that balance sheet date exceeds the contribution
arises from past events where it is either already paid, the deficit payable to the
not probable that an outflow of resources scheme is recognized
embodying economic benefits will be as a liability after deducting the contribution
required to settle or a reliable estimate of already paid. If the contribution already paid
amount cannot be made. exceeds the contribution due for services
received before the balance sheet date, then
(m) Employee Benefits Expense excess is recognized as an asset to the extent
Short Term Employee that the pre-payment will lead to, for example,
Benefits a reduction in future payment or a cash
The undiscounted amount of short refund.
term employee benefits expected to
be paid in exchange for the services Defined Benefit Plans
rendered by employees are The Group pays gratuity to the employees
recognised as an expense during the who have completed five years of service at
period when the employees render the time of resignation/superannuation. The
the services. gratuity is paid @15 days salary for every
completed year of service as per the
Post-Employment Benefits Payment of Gratuity Act, 1972.
Defined Contribution Plans
A defined contribution plan is a post- The gratuity liability amount is contributed to
employment benefit plan under the approved gratuity fund formed exclusively
which the Group pays specified for gratuity payment to the employees. The
contributions to a separate entity. gratuity fund has been approved by
The Group makes specified monthly respective Income Tax Authorities.

88 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

The liability in respect of gratuity and

other post-employment benefits is
calculated using the Projected Unit Annual Report 2020-21
Credit Method and spread over the
period during which the benefit is
expected to be derived from employees’
services.

Remeasurement gains and losses

arising from adjustments and changes
in actuarial assumptions are recognized
in the period in which they occur in
Other Comprehensive Income.

(n) Tax Expenses

The tax expenses for the period comprises of
current tax and Deferred Income Tax. Tax is
recognised in Consolidated Statement of
Profit and Loss, except to the extent that it
relates to items recognised in the Other
Comprehensive Income or in Equity. In which
case, the tax
is also recognised in Other Comprehensive
Income or Equity.

i) Current Tax
Current tax assets and liabilities
are measured at the amount
expected to be recovered from or
paid to the taxation authorities,
based on tax
rates and laws that are enacted at
the Balance sheet date.

ii) Deferred Tax

Deferred tax is recognised on
temporary differences between the
carrying amounts of assets and
liabilities in
the Financial Statements and the
corresponding tax bases used in
the computation of taxable profit.

Deferred tax assets are recognised to

the extent it is probable that taxable
profit will be available against which
the deductible temporary differences,
and the carry forward of unused tax
losses can be utilized.

Deferred tax liabilities and assets are

measured at the tax rates that are
expected to apply in the period in which
the liability is settled or the asset realised,
based on tax rates (and tax laws) that
have been enacted or substantively
enacted by the end of the reporting
period. The carrying amount of Deferred
tax liabilities and assets are reviewed at
the end of each reporting period.

(o) Share Based Payments

Equity-settled share-based payments to
employees and others providing similar
services are measured at the fair value of the
equity instruments at the grant date.
 The fair value determined at the grant services. The
date of the equity-settled share based
payments is expensed on a straight line 89
basis over the
vesting period, based on the Group’s
estimate of equity instruments that will
eventually vest, with a corresponding
increase in equity. At the end of each
reporting period, the Group revises its
estimate of the number of equity
instruments expected to vest. The impact
of the revision of the original estimates, if
any,
is recognised in Consolidated Statement
of Profit and Loss such that the
cumulative
expenses reflects the revised estimate,
with a corresponding adjustment to
Share Based Payments Reserve.

The dilutive effect of outstanding options is

reflected as additional share dilution in the
computation of diluted earnings per share.

(p) Foreign Currencies Transactions

and Translation
Transactions in foreign currencies are
recorded at the exchange rate prevailing on
the date of transaction. Monetary assets and
liabilities denominated in foreign currencies
are translated at the functional currency
closing rates of exchange at the reporting
date.

Exchange differences arising on settlement

or translation of monetary items are
recognised in Consolidated Statement of
Profit and Loss except to the extent of
exchange differences which are regarded as
an adjustment to interest costs on foreign
currency borrowings that are directly
attributable to the acquisition or construction
of qualifying assets which are capitalized as
cost of assets.

Non-monetary items that are measured in

terms of historical cost in a foreign currency
are recorded using the exchange rates at
the date of the transaction. Non-monetary
items measured at fair value in a foreign
currency are translated using the exchange
rates at the date when the fair value was
measured. The gain
or loss arising on translation of non-monetary
items measured at fair value is treated in line
with the recognition of the gain or loss on the
change in fair value of the item (i.e., translation
differences on items whose fair value gain or
loss is recognised in Other Comprehensive
Income or Statement of Profit and Loss are
also recognised in Other Comprehensive
Income or Statement of Profit and Loss,
respectively).

(q) Revenue Recognition

Revenue from contracts with customers is
recognised when control of the goods or
services are transferred to the customer at
an amount that reflects the consideration
entitled in exchange for those goods or
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

Group has generally concluded that it is the Dividend Income

principal in its revenue arrangement, as it
Dividend Income is recognised when the
typically controls the goods or services
Group’s right to receive the amount has
before transferring them to the customer.
been established.
Generally, control is transfer upon shipment (r) Financial Instruments
of goods to the customer or when the
i) Financial Assets
goods is made available to the customer,
A. Initial Recognition and
provided
Measurement
transfer of title to the customer occurs and
All Financial Assets are initially
the Group has not retained any significant
recognized at fair value. Transaction
risks of ownership or future obligations with
costs that are directly attributable
respect to the goods shipped.
to the acquisition or issue of
Revenue from rendering of services is Financial Assets, which are not at
recognised over time by measuring the Fair Value Through Profit or Loss,
progress towards complete satisfaction are adjusted to the fair value on
of performance obligations at the initial recognition. Purchase and
reporting period. sale of Financial Assets are
recognised using trade date
Revenue is measured at the amount of accounting.
consideration which the Group expects to be
entitled to in exchange for transferring distinct B. Subsequent Measurement
goods or services to a customer as specified a) Financial Assets Measured at
in the contract, excluding amounts collected Amortised Cost (AC)
on behalf of third parties (for example taxes A Financial Asset is measured
and duties collected on behalf of the at Amortised Cost if it is held
government). within a business model whose
objective is to hold the asset in
Consideration is generally due upon order to collect contractual
satisfaction of performance obligations and
cash flows and the contractual
a receivable is recognized when it becomes
terms of the Financial Asset
unconditional. Generally the credit period
give rise on specified dates to
does not exceed 90 days for sale of goods
cash flows that represents
or services as the case may be.
solely payments of principal
In case of discounts, rebates, credits, price and interest on the principal
incentives or similar terms, consideration are amount outstanding.
determined based on its most likely amount,
b) Financial Assets Measured
which is assessed at each reporting period.
at Fair Value Through
Contract balances Other Comprehensive
Trade receivables Income (FVTOCI)
A receivable represents the Group’s right to A Financial Asset is
an amount of consideration that is measured at FVTOCI if it is
unconditional. held within
a business model whose
Contract liabilities
objective is achieved by
A contract liability is the obligation to transfer both collecting contractual
goods or services to a customer for which
cash flows and selling
the Group has received consideration (or
Financial Assets and the
an amount of consideration is due) from the contractual terms of the
customer. If a customer pays consideration
Financial Asset give rise on
before the Group transfers goods or
specified dates to cash
services to the customer, a contract liability
flows that represents solely
is
payments of principal and
recognised when the payment is made or interest on the principal
the payment is due (whichever is earlier).
amount outstanding.
Contract liabilities are recognised as revenue
when the Group performs under the c) Financial Assets Measured
contract. at Fair Value Through
Profit or Loss (FVTPL)
Interest Income
Financial Asset which is
Interest Income from a Financial not classified in any of
Asset is recognised using effective
the above categories
interest rate method.
are measured at FVTPL.
90 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

Financial assets are reclassified reporting date these historical

subsequent to their default rates are reviewed and
recognition, if the Group changes in the forward looking
changes its business model for estimates are analysed.
managing those financial
assets. Changes in business Annual Report 2020-21
model are made and applied
prospectively from the
reclassification date which is
the first day of immediately next
reporting period following the
changes in business model in
accordance with principles laid
down under Ind AS 109 –
Financial Instruments.

C. Other Equity Investments

All other equity investments are
measured at fair value, with value
changes recognised in Consolidated
Statement of Profit and Loss, except for
those equity investments for which the
Group has elected to present the value
changes in ‘Other Comprehensive
Income’. However, dividend on such
equity investments are recognized in
Statement of Profit and
loss when the Company’s right to
receive payment is established.

D. Impairment of Financial Assets

In accordance with Ind AS 109, the
Group uses “Expected Credit Loss” (ECL)
model, for evaluating impairment of
Financial Assets other than those
measured at Fair Value Through Profit
and Loss (FVTPL).

Expected credit losses are

measured through a loss allowance
at an amount equal to:

• The 12 months expected credit

losses (expected credit losses
that result from those default
events on the financial instrument
that are
possible within 12 months after
the reporting date);

Or

• Full lifetime expected credit losses

(expected credit losses that result
from all possible default events
over the life of the financial
instrument)

For Trade Receivables the Group applies

‘simplified approach’ which requires
expected lifetime losses to be
recognised from initial recognition of the
receivables.
The Group uses historical default rates
to determine impairment loss on the
portfolio of trade receivables. At every
 For other assets, the Group uses 12 months
ECL to provide for impairment loss where
there is no significant increase in credit risk.
If there is significant increase in credit risk full
lifetime ECL is used.

ii) Financial Liabilities

A. Initial Recognition and
Measurement
All Financial Liabilities are recognized
at fair value and in case of
borrowings, net of directly
attributable cost. Fees of recurring
nature are directly recognised in the
Consolidated Statement of Profit and
Loss as finance cost.

B. Subsequent Measurement Financial

Liabilities are carried at amortized
cost using the effective interest
method.

For trade and other payables

maturing within one year from the
balance sheet date, the carrying
amounts approximate fair value due
to the short maturity of
these instruments.
iii) Derivative Financial Instruments and
Hedge Accounting
The Group uses various derivative
financial instruments such as currency
forwards and commodity contracts
to mitigate the risk of changes in exchange
rates and commodity prices. At the
inception of a hedge relationship, the Group
formally designates and documents the
hedge relationship to which the Group
wishes to apply hedge accounting and the
risk management objective and strategy for
undertaking the hedge. Such derivative
financial instruments are initially recognised
at fair value on the date on which a
derivative contract is entered into and are
also subsequently measured at fair value.
Derivatives are carried as Financial Assets
when the fair value is positive and as
Financial Liabilities when the fair value is
negative.

Any gains or losses arising from changes in

the fair value of derivatives are taken
directly to Consolidated Statement of Profit
and Loss, except in case where the related
underlying is held as inventory,
in which case, they are adjusted to the
carrying cost of inventory.

Hedges that meet the criteria for hedge

accounting are accounted for as follows:

91
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

A. Cash Flow Hedge and foreign exchange rates.

The Group designates derivative
Changes in the fair value of hedging
contracts or non-derivative
instruments and hedged items that
Financial Assets / Liabilities as
are designated and qualify as fair
hedging instruments to mitigate
value hedges are recorded in the
the risk of movement in interest
Consolidated Statement of Profit
rates and foreign exchange rates
for foreign exchange exposure on
highly probable future cash flows
attributable to a recognised asset
or
liability or forecast cash
transactions.

When a derivative is designated

as a cash flow hedging
instrument, the effective portion
of changes
in the fair value of the
derivative is recognized in the
cash flow hedging reserve
being part of Other
Comprehensive Income.
Any ineffective portion of
changes in the fair value of the
derivative
is recognized immediately in the
Consolidated Statement of Profit
and Loss. If the hedging relationship
no longer meets the criteria for
hedge accounting, then hedge
accounting is discontinued
prospectively. If
the hedging instrument expires
or is sold, terminated or
exercised, the cumulative gain or
loss on the hedging instrument
recognized in cash flow hedging
reserve till the period the hedge
was effective
remains in cash flow hedging
reserve until the underlying
transaction occurs. The cumulative
gain or loss previously recognized
in the cash flow hedging reserve is
transferred to the Consolidated
statement of profit and loss upon
the occurrence of the underlying
transaction. If
the forecasted transaction is no
longer expected to occur, then
the amount accumulated in cash
flow hedging reserve is
reclassified in the Consolidated
Statement of Profit and Loss.

B. Fair Value Hedge

The Group designates derivative
contracts as hedging
instruments to mitigate the risk
of change in fair value of hedged
item due to
movement in commodity prices
 and Loss. If the hedging liability simultaneously.
relationship no longer meets the
(s) Non-current assets held for sale
criteria for hedge accounting, the
Non-current assets are classified as held for
adjustment to the carrying
sale if their carrying amount will be recovered
amount of a hedged item is
principally through a sale transaction rather
amortised to Consolidated
than through continuing use and sale is
Statement of Profit and Loss over
considered highly probable.
the period of maturity.
A sale is considered as highly probable when
iv) Derecognition of
decision has been made to sell, assets are
Financial Instruments
available for immediate sale in its present
The Group derecognizes a Financial
condition, assets are being actively marketed
Asset when the contractual rights to
and sale has been agreed or is expected to
the cash flows from the Financial
be concluded within 12 months of the date
Asset expire or
of classification.
it transfers the Financial Asset and
the transfer qualifies for Assets and liabilities classified as held for
derecognition under Ind AS 109. A sale are measured at the lower of their
Financial Liability (or a part of a carrying amount and fair value less cost
Financial Liability) is derecognized of sell and are presented separately in
from the Group’s Balance Sheet when the Consolidated Balance Sheet.
the obligation specified in the
(t) Earnings per share
contract is discharged or cancelled or
Basic earnings per share is calculated by
expires.
dividing the net profit after tax by the
v) Offsetting weighted average number of equity shares
Financial Assets and Financial outstanding during the year adjusted for
Liabilities are offset and the net bonus element
amount is presented in the balance in equity share. Diluted earnings per share
sheet when, and only when, the adjusts the figures used in determination of
Group has a legally enforceable right basic earnings per share to take into
to set off the amount and it intends, account the conversion of all dilutive
either to settle them on a net basis or potential equity shares. Dilutive potential
to realise the asset and settle the equity shares are

92 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

deemed converted as at the beginning of amount. An

the period unless issued at a later date.
Annual Report 2020-21
C. Critical Accounting Judgements and Key
Sources of Estimation Uncertainty
The preparation of the Group’s Financial Statements
requires management to make judgement, estimates
and assumptions that affect the reported amount
of revenue, expenses, assets and liabilities and the
accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

(a) Depreciation / Amortisation and Useful

Life of Property, Plant and Equipment /
Intangible Assets
Property, Plant and Equipment / Intangible
Assets are depreciated / amortised over their
estimated useful life, after taking into account
estimated residual value.

Management reviews the estimated useful life

and residual values of the assets annually in
order to determine the amount of depreciation /
amortisation to be recorded during any
reporting period. The useful life and residual
values are based on the Group’s historical
experience with similar assets and take into
account anticipated technological changes. The
depreciation /
amortisation for future periods is revised if there
are significant changes from previous estimates.

(b) Recoverability of Trade Receivables

Judgements are required in assessing the
recoverability of overdue trade receivables and
determining whether a provision against those
receivables is required. Factors considered
include the credit rating of the counterparty, the
amount and timing of anticipated future
payments and any possible actions that can be
taken to mitigate the risk of non- payment.

(c) Provisions
Provisions and liabilities are recognized in the
period when it becomes probable that there will
be a future outflow of funds resulting from past
operations
or events and the amount of cash outflow can be
reliably estimated. The timing of recognition and
quantification of the liability require the application
of judgement to existing facts and circumstances,
which can be subject to change. The carrying
amounts of provisions and liabilities are reviewed
regularly and revised to take account of changing
facts and circumstances.

(d) Impairment of Financial and Non-Financial

assets
The Group assesses at each reporting date
whether there is an indication that an asset
may be impaired. If any indication exists, the
Group estimates the asset’s recoverable
 asset’s recoverable amount is the higher of an 93
asset’s or Cash Generating Units (CGU’s) fair
value less costs of disposal and its value in
use. It is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of those
from other assets or a group of assets. Where
the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.

The impairment provisions for Financial Assets

are based on assumptions about risk of
default and expected cash loss rates. The
Group uses judgement in making these
assumptions and selecting the inputs to the
impairment calculation, based on Group’s past
history, existing market conditions as well as
forward-looking estimates at the end of each
reporting period.

In case of non-financial assets Group estimates

asset’s recoverable amount, which is higher of
an asset’s or Cash Generating Units (CGU’s)
fair value less costs of disposal and its value in
use.

In assessing value in use, the estimated future

cash flows are discounted to their present
value using pre-tax discount rate that reflects
current market assessments of the time value
of money and the risks specific to the asset. In
determining fair value less costs of disposal,
recent market transactions are taken into
account, if no such transactions can be
identified, an appropriate valuation model is
used.

(e) Recognition of Deferred Tax Assets

and liabilities
Deferred tax assets and liabilities are recognised
for deductible temporary differences and
unused tax losses for which there is probability
of utilisation against the future taxable profit.
The Group uses judgement to determine the
amount of deferred tax that can be recognised,
based upon the likely timing and the level of
future taxable profits and business
developments.

(f) Fair Value Measurement

For estimates relating to fair value of financial
instruments refer note 34 of financial
statements.

(g) Leases
Identification of lease requires significant
judgement. In case of Reliance Retail Limited,
the subsidiary of the Holding Company, large
portion of the leases are cancellable by both
lessor and lessee or are arrangements which
qualify as variable leases and hence are not
considered for recognition of Right of Use Asset
and lease liabilities. Also there are few lease
arrangements which are cancellable only at the
option of the lessee but have not been
considered for recognition of Right of Use
Assets and lease liabilities on grounds of
materiality and exercisability.
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

(h) Estimation uncertainty relating to the Global

Health Pandemic on COVID-19
Management has performed the assessment of
the effect of COVID -19 on the recoverability of
the value of assets as at the end of the year and
liquidity position as well as business activities in
the foreseeable future. Based on the
assessment, presently there are no significant
concerns regarding recoverability of the value of
the
assets as well as on liquidity and continuity of the
business. The impact of COVID-19 may be
different from that estimated as at the date of
approval
of these financial statements and the Group will
continue to monitor any material changes to future
economic conditions.
94 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

1. Property, Plant and Equipment, Intangible Assets, Capital Work-in-progress and Intangible
Assets under Development
` in crore
Gross block Depreciation/ amortisation Net block

Description As at 31st Up to 31st As at 31st As at 31st

As at 1st Additions/ Deductions/ As at 1st For the Deductions/
March, March, March, March,
April, 2020 Adjustments* Adjustments April, 2020 year # Adjustments
2021 2021 2021 2020

Property,
Plant and Equipment
Own Assets:
Freehold Land 123.90 - - 123.90 - - - - 123.90 123.90
Buildings 146.70 0.14 - 146.84 15.75 5.96 (0.02) 21.73 125.11 130.95
Plant and Machinery 551.65 67.16 17.93 600.88 264.75 86.88 5.73 345.90 254.98 286.90
Electrical Installations 2,840.96 866.01 10.90 3,696.07 780.07 299.65 0.90 1,078.82 2,617.25 2,060.89
Equipment 3,914.85 1,174.54 13.45 5,075.94 1,166.67 349.23 (14.75) 1,530.65 3,545.29 2,748.18
Furniture and Fixtures 1,994.96 795.73 23.73 2,766.96 580.58 217.64 6.13 792.09 1,974.87 1,414.38
Vehicles 10.51 0.38 2.94 7.95 8.84 0.56 2.46 6.94 1.01 1.67
Leasehold
1,908.14 570.93 22.12 2,456.95 831.27 186.56 (3.17) 1,021.00 1,435.95 1,076.87
Improvements
Sub-Total 11,491.67 3,474.89 91.07 14,875.49 3,647.93 1,146.48 (2.72) 4,797.13 10,078.36 7,843.74
Leased Assets:
Leasehold Land 25.79 - - 25.79 4.97 0.23 - 5.20 20.59 20.82
Operating lease 1,979.87 549.52 136.48 2,392.91 234.15 325.72 47.76 512.11 1,880.80 1,745.72
Sub-Total 2,005.66 549.52 136.48 2,418.70 239.12 325.95 47.76 517.31 1,901.39 1,766.54
Total (A) 13,497.33 4,024.41 227.55 17,294.19 3,887.05 1,472.43 45.04 5,314.44 11,979.75 9,610.28
Intangible Assets
Franchisee Rights 79.03 2.68 - 81.71 50.89 12.09 (1.49) 64.47 17.24 28.14
Brands and Trademark 532.44 1,224.50 - 1,756.94 23.98 15.50 (1.01) 40.49 1,716.45 508.46
Software 1,139.93 2,667.92 - 3,807.85 272.63 465.40 (3.31) 741.34 3,066.51 867.30
Total (B) 1,751.40 3,895.10 - 5,646.50 347.50 492.99 (5.81) 846.30 4,800.20 1,403.90
Total (A+B) 15,248.73 7,919.51 227.55 22,940.69 4,234.55 1,965.42 39.23 6,160.74 16,779.95 11,014.18
Previous year 10,468.07 5,814.18 1,033.52 15,248.73 2,878.23 1,807.99 451.67 4,234.55 11,014.18 7,589.84
Capital Work-in-Progress 7,057.92 6,103.83
Intangible Assets Under Development 4,417.14 2,752.74

* Additions in Property, Plant and equipment, and Intangible assets include ` 95.95 crore (net gain) (Previous year ` 123.61 crore (net gain)) on account of exchange
difference during the year.
* Additions /Adjustments in gross block for the year include ` 1,530.68 crore on account of entities acquired during the year 2020-
21. # Depreciation/Amortisation for the period includes ` 129.50 crore on account of subsidiaries acquired during the year.

1.1 Capital Work-in-Progress Includes:

(a) ` 74.17 crore (Previous Year ` 100.53 crore) on account of Capital Goods Inventory.

(b) ` 6,983.75 crore (Previous year ` 6,003.30 crore) relates to projects under implementation for new business initiatives.

1.2 Intangible Assets Under Development includes:

(ii) ` 4,417.14 crore (Previous Year ` 2,752.74 crore) on account of Project Development Expenditure.

Annual Report 2020-21 95

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

As at As at
31st March, 2021 31st March, 2020

Units ` in crore Units ` in crore

2. Non-Current Investments
Investments measured at Amortised Cost
Government and other securities – unquoted
National Savings Certificates – 6 yrs Issue VIII 0.29 0.29
(Includes deposited with Government Authorities)
Total of Investments measured at Amortised Cost 0.29 0.29
Investments measured at cost (Accounted
using Equity method)
In Equity Shares of Joint ventures Companies –
Unquoted, Fully paid up
Reliance-Vision Express Private Limited of ` 10 each 10,50,00,000 7.23 9,70,00,000 6.35
Reliance-GrandVision India Supply Private Limited of ` 10 each 1,35,00,000 5.12 1,35,00,000 5.36
Marks and Spencer Reliance India Private Limited (Class A
81,42,722 40.29 81,42,722 48.63
Shares of ` 10 each)
Marks and Spencer Reliance India Private Limited (Class C
9,51,16,546 160.25 9,51,16,546 193.60
Shares of ` 5 each)
Reliance Paul & Shark Fashions Private Limited of ` 10 each 1,31,00,000 5.45 1,21,00,000 5.18
Diesel Fashion India Reliance Private Limited of ` 10 each 5,65,95,000 14.62 5,65,95,000 16.65
Zegna South Asia Private Limited of ` 10 each 2,98,44,272 4.09 2,98,44,272 5.43
Iconix Lifestyle India Private Limited of ` 10 each 25,05,000 38.93 25,05,000 38.71
Brooks Brothers India Private Limited of ` 10 each 2,45,00,000 14.60 2,45,00,000 15.11
Ryohin-Keikaku Reliance India Private Limited of ` 10 each 2,63,62,000 15.70 2,48,92,000 17.26
Reliance Bally India Private Limited (formerly Reliance Luxury
48,50,000 4.69 48,50,000 4.47
Fashion Private Limited) of ` 10 each
Burberry India Private Limited of ` 10 each 2,23,22,952 37.57 2,23,22,952 33.25
Canali India Private Limited of ` 10 each 1,22,50,000 16.28 1,22,50,000 15.38
Reliance Lifestyle Products Private Limited (Formerly V&B
- - 87,45,000 7.35
Lifestyle India Private Limited) of ` 10 each
TCO Reliance India Private Limited of ` 10 each 1,37,20,000 12.87 1,37,20,000 13.58
Reliance Sideways Private Limited of ` 10 each ` Nil ( ` 25,000) 5,000 - 5,000 -
Total of Investments measured at Cost 377.69 426.31
In Equity Shares of Other Companies –
Unquoted, Partly paid up
Investments measured at Fair Value through Profit and Loss
In equity shares – Unquoted, fully paid up
The Colaba Central Co-operative Consumer’s Wholesale and
Retail Stores Limited (Sahakari Bhandar) of ` 200 each. (` 5,000 25 - 25 -
(previous year ` 5,000))
Retailers Asociation’s Skill Council of India of ` 100 each 500 0.01 500 0.01
Air Controls and Chemical Engg. Co. Limited of ` 1 each (` 1,500
1,000 - 1,000 -
(previous year ` 1,500))
Addverb Technologies Private Limited ` 10 each, ` 9 Paid Up 88,635 100.00 - -
Total of Investments measured at Fair Value
100.01 0.01
through Profit & Loss
Investments measured at Fair Value through Other
Comprehensive Income
In equity shares – Unquoted, fully paid up
Future 101 Design Private Limited of ` 10 each 2,019 13.50 2,019 13.50
KaiOS Technologies Inc (KTI) of USD 0.01 each 19,04,781 45.54 19,04,781 45.54
Eliph Nutrition Private Limited of ` 10 each 100 0.06 - -
In Preferred Shares – Unquoted, fully paid up
KaiOS Technologies Inc (KTI) of USD 0.01 each 6,25,000 36.33 6,25,000 36.33
Eliph Nutrition Private Limited of ` 10 each 9,269 5.94 - -
Total of Investments measured at Fair Value through Other
101.37 95.37
Comprehensive Income
Total Investments – Non–Current 579.36 521.98

Aggregate value of Book Value Book Value

Unquoted investments 579.36 521.98
Quoted investments - -

96 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

` in crore
As at As at
31st March, 2021 31st March, 2020
2.1 Category-wise Non current investment
Financial assets measured at Amortised Cost 0.29 0.29
Financial assets measured at Cost 377.69 426.31
Investments measured at Fair Value through Profit and Loss 100.01 0.01
Financial assets measured at Fair value through Other Comprehensive Income (OCI) 101.37 95.37
Total Non current investment 579.36 521.98

` in crore
As at As at
31st March, 2021 31st March 2020
3. Loans – Non-Current
Loans and Advances to Others 8.88 30.00
Others * 109.43 104.33
Total 118.31 134.33
* Other represents fair value of interest free Rental Deposits.

` in crore
As at As at
31st March, 2021 31st March 2020
4. Deferred Tax
Deferred Tax Assets (Net)
Component of Deferred Tax Assets/ (Liabilities):
Deferred Tax Assets (Net) 210.21 145.23
Deferred Tax Liabilities (Net) 1,093.67 958.13
Net Deferred Tax Assets/ (Liabilities) (883.46) (812.90)

` in crore
Charge/
Charge/ Others
As at (Credit) As at
31st March, (Credit) to to Other (Including
Statement of comprehensive Exchange 31st March,
2020
Profit and Loss Difference) 2021
Income

Component of Deferred tax Assets

Deferred tax asset (Net) in relation to:
Property, plant and equipment 25.84 17.06 - 1.89 44.79
Carried Forward Loss 115.32 47.19 - (0.64) 161.87
Disallowance under the Income Tax Act, 1961 4.07 (0.51) (0.08) 0.07 3.55
Total 145.23 63.74 (0.08) 1.32 210.21
Deferred tax liabilities (Net) in relation to:
Property, plant and equipment 984.08 39.41 - 3.37 1,026.86
Carried Forward Loss (16.37) (20.27) - (1.64) (38.28)
Disallowance under the Income Tax Act, 1961 (9.58) 184.62 (69.80) (0.15) 105.09
Total 958.13 203.76 (69.80) 1.58 1,093.67
Net Deferred Tax Asset / (Liabilities) (812.90) (140.02) 69.72 (0.26) (883.46)

Annual Report 2020-21 97

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

` in crore
As at As at
31st March, 2021 31st March, 2020
5. Other Non-Current Assets
(Unsecured and Considered Good)
Capital Advances 138.30 37.03
Advance Income Tax (Net of Provision) 69.71 215.79
Deposits(i) 17.85 17.42
Other Loans and Advances(ii) 3.64 2.57
Total 229.50 272.81
(i)
Deposits given to Statutory Authorities.
(ii)
Represents Loan to Employees.

As at As at
31st March, 2021 31st March, 2020
5.1 Advance Income Tax (Net of Provision)
At start of year 215.79 119.40
Charge for the year (1,809.46) (1,040.28)
Others * 8.41 38.55
Tax paid during the year (net of refunds) 1,652.68 1,098.12
At end of year 67.42 215.79
* Mainly pertains to Provision for Tax on Other Comprehensive Income

` in crore
As at As at
31st March, 2021 31st March, 2020
6. Inventories
(Valued at lower of cost or net realisable value)
Raw Materials - 0.25
Finished Goods 0.02 -
Stores and Spares 170.27 115.07
Stock-in-Trade(i) 12,969.50 10,207.09
Total 13,139.79 10,322.41
(i)
Includes inventory in transit

` in crore
As at As at
31st March, 2021 31st March, 2020
7. Current Investments
Investments Measured at Fair Value Through Profit and Loss (FVTPL) *
Investment in Mutual Funds -In Units - Unquoted 5,332.01 9.28
Investment in Mutual Funds -In Units - Quoted 761.54 -
Total of Investments measured at Fair Value through Profit and Loss 6,093.55 9.28
Investments Measured at Fair Value Through Other Comprehensive Income (FVTOCI) *
Investment in Mutual Funds -In Units - Unquoted 36,291.32 233.13
Investment in Mutual Funds -In Units - Quoted 401.81 -
Total of Investments measured at Fair Value through Other
36,693.13 233.13
Comprehensive Income (OCI)
Total 42,786.68 242.41
Aggregate Value of Unquoted Investment 41,623.33 242.41
Aggregate Value of Quoted Investment 1,163.35 -
* Refer Note 34

98 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

` in crore
As at As at
31st March, 2021 31st March, 2020
8. Trade Receivables
(Unsecured and Considered Good)
Trade receivables 6,220.99 2,868.77
Total 6,220.99 2,868.77

` in crore
As at As at
31st March, 2021 31st March, 2020
9. Cash & Cash Equivalents
Cash on Hand 70.04 53.33
Balances with banks(i), (ii) & (iii) 478.38 434.68
Cash and Cash Equivalent as per Balance Sheet 548.42 488.01
Cash and Cash Equivalent as per Consolidated Cash Flow Statement 548.42 488.01
(i)
Includes deposits ` 26.97 crore (Previous Year ` 0.22 crore) with maturity period of more than 12 months.
(ii)
Includes deposits ` 88.71 crore (Previous Year ` 131.73) held by tax authority as security, by bank as margin money for bank guarantees,
forward contracts and loans.
(iii)
Includes deposits ` 15.00 crore (Previous Year ` 8.00 crore) held as Deposit reserve Fund.

9.1 Cash and Cash Equivalents includes deposits maintained by the Company with banks, which can be withdrawn by
the Company at any point of time without prior notice or penalty on the principal.

` in crore
As at As at
31st March, 2021 31st March, 2020
10. Other Financial Assets
Interest Accrued on Investment 0.22 0.13
Deposits 2,869.63 1,117.91
Others (i) 113.14 415.92
Total 2,982.99 1,533.96
(i)
Other includes Fair valuation of Derivatives & Interest receivable.

` in crore
As at As at
31st March, 2021 31st March, 2020
11. Other Current Assets
(Unsecured and Considered Good)
Balance with Customs, Central Excise, GST and State Authorities 1,331.87 1,180.29
Others (i) 5,305.58 727.40
Total 6,637.45 1,907.69
(i)
Includes advances to vendors and employees.

` in crore
As at As at
31st March, 2021 31st March, 2020
12. Share Capital
Authorised:
2000,00,00,000 Equity Shares of ` 10 each 20,000.00 7,500.00
(750,00,00,000)
500,00,00,000 Preference Shares of ` 10 each 5,000.00 2,500.00
(250,00,00,000)
Total 25,000.00 10,000.00
Issued, Subscribed and Paid-Up:
686,35,39,754 Equity Shares of ` 10 6,863.54 6,000.00
each (600,00,00,000)
Total 6,863.54 6,000.00

Annual Report 2020-21 99

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

12.1 Out of the above, 583,77,58,520 (previous year 566,70,00,000) equity shares of ` 10 each fully paid-up are held by
Reliance Industries Limited, the Holding Company along with its nominees.

12.2 The details of Shareholders holding more than 5% shares :

As at As at
31st March, 2021 31st March, 2020
Name of the Shareholders
No. of Shares % held No. of Shares % held
Reliance Industries Limited 583,77,58,520 85.06 566,70,00,000 94.45

12.3 The Reconciliation of the number of shares outstanding is set out below :
As at As at
31st March, 2021 31st March, 2020
Particulars
No. of shares No. of shares
Equity Shares outstanding at the beginning of the year 600,00,00,000 600,00,00,000
Add: Equity Shares issued during the year 86,35,39,754 -
Equity Shares outstanding at the end of the year 686,35,39,754 600,00,00,000

12.4 The Company has only one class of equity shares having par value of ` 10 per share. Each holder of equity
shares is entitled to one vote per share.

` in crore
As at As at
31st March, 2021 31st March, 2020
13. Other Equity
Instruments Classified as Equity
8.5% Non-Cumulative Optionally Convertible Preference
200.00 200.00
Shares of ` 10 each, at ` 2.5 each
Add: Call money converted into OCPS 600.00 -
Less: Redeemed during the year (800.00) -
- 200.00
Call money towards OCPS
As per last Balance Sheet 650.02 650.00
Add: During the year 2,350.02 0.02
Less: Converted into OCPS and Securities premium (3,000.04) -
- 650.02
Securities Premium Reserve
As per last Balance Sheet 800.00 800.00
Add: Converted from Call money for OCPS 2,400.00 -
Less:Redeemed during the year (3,200.00) -
Less: Share issue Expenses (78.16) -
Add: On issue of equity share 58,051.46 -
57,973.30 800.00
Capital Reserve
As per last Balance Sheet 0.06 0.06
Retained Earnings
As per last Balance Sheet 11,362.82 5,856.59
Less: On Account of Acquisition in shares of
(60.44) 22.94
Subsidiaries/ amalgamation
Add: Profit/ (loss) for the year 5,543.07 5,483.29
16,845.45 11,362.82
Other Comprehensive Income
As per last Balance Sheet 52.07 24.26
Add: Movement in OCI (Net) during the year (208.74) 27.81
(156.67) 52.07
Total 74,662.14 13,064.97

100 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

13.1 Details of Shareholders holding more than 5% in the Preference Shares Capital
(8.5% Non Cumulative Optionally Convertible Preference Shares)
Name of the Shareholder(s) No. of Shares % held No. of Shares % held

Reliance Industries
- - 80,00,00,000 100%
Limited (Holding
Company)

13.2 Terms of 8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS)
The OCPS shall be either redeemed at ` 50 per share or converted into 5 (Five) Equity Shares of ` 10 each at any time
at the option of the Company, but not later than 10 years from the date of allotment of the OCPS i.e. February 17,
2018.
13.3 Rights, Preferences and Restrictions attached to Preference Shares
The Company has one class of Preference Shares i.e. 8.5% Non Cumulative Optionally Convertible Preference
Shares (OCPS) of `10/- per share. Such Preference Shares shall carry a preferential right over the Equity shares of
the Company as regards to payment of dividend and repayment of capital, in the event of winding-up of the
Company. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in
the Annual General Meeting. The OCPS shall carry voting rights prescribed under the provisions of the Companies
Act, 2013.
13.4 The reconciliation of the number of 8.5% Non Cumulative Optionally Convertible Preference Shares outstanding
is set out below :
As at As at
31st March, 2021 31st March, 2020
Particulars
No. of Shares No. of Shares
Preference Shares at the beginning of the year 80,00,00,000 80,00,00,000
Less: Preference Shares redeemed during the year (80,00,00,000) -
Preference Shares Outstanding at the end of the year - 80,00,00,000

` in crore
As at As at
31st March, 2021 31st March, 2020
14. Borrowings – Non-Current
Secured – At amortised cost
Term Loans from Banks(i) 0.01 0.04
Total 0.01 0.04
(i)
Term loans are secured by hypothecation of vehicles and are repayable over a period of 2 years by way of equated monthly instalments.

` in crore
As at As at
31st March, 2021 31st March, 2020
15. Other Financial Liabilities – Non-Current
Lease Liabilities 1,825.31 1,652.41
Others* 55.00 55.00
Total 1,880.31 1,707.41
* Represents for consideration payable for acquisition of shares in subsidiary

` in crore
As at As at
31st March, 2021 31st March, 2020
16. Other Non-Current Liabilities
Income Received in Advance-Non Current 33.57 -
Total 33.57 -

` in crore
As at As at
31st March, 2021 31st March, 2020
17. Provisions – Non Current
Provision for Employee Benefits (Refer Note 25.1)(i) 90.16 57.77
Total 90.16 57.77
(i)
The provision for employee benefit includes annual leave and vested long service leave entitlement accrued and compensation claims made by
employees.
Annual Report 2020-21 101
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

` in crore
As at As at
31st March, 2021 31st March, 2020
18. Borrowings – Current
Secured – At amortised Cost
Working Capital Loans
From Banks(i) - -
Foreign Currency Loan 29.61 23.14
Rupee Loan 200.03 1,301.48
Unsecured – At amortised Cost
From Banks - 2,800.00
From others
Commercial Papers(ii) 8,799.87 493.70
Total 9,029.51 4,618.32
(i)
Working Capital Loans from Banks referred above to the extent of:
- ` 200.03 crore (previous year ` 1,301.48 crore) are secured by way of first charge on all the current assets of the Company.
- ` 29.61 crore (previous year ` 23.14 crore) are secured by way of first charge on all the current assets and movable and non movable fixed
assets of the Company.
(ii)
Maximum amount outstanding at any time during the year was ` 14,400 crore (Previous year ` 19,700 crore)

18.1 Refer note 34 for maturity profile.

` in crore
As at As at
31st March, 2021 31st March, 2020
19. Other Financial Liabilities
Current Maturities of Long Term Debt 0.03 0.11
Interest Accrued but not due on Borrowings 0.45 6.30
Lease Liabilities - Current 194.93 153.57
Creditors for Capital Expenditure 97.78 105.54
Others(i) 1,394.54 5,244.69
Total 1,687.73 5,510.21
(i)
Includes Security Deposits Received & Financial Liability at fair Value.

` in crore
As at As at
31st March, 2021 31st March, 2020
20. Other Current Liabilities
Income Received in Advance 474.53 376.79
Advance from Customers 361.88 290.77
Other Payables(i)&(ii) 457.96 533.58
Total 1,294.37 1,201.14
(i)
Includes statutory dues and advances from customers.
(ii)
Includes ` 163.51 crore (Previous year ` 134.75 crore) received towards sale of Jewellery products under various sale initiatives/retail
customer programmes.

` in crore
As at As at
31st March, 2021 31st March, 2020
21. Provisions – Current
Provision for Employee Benefits (Refer Note 25.1)(i) 13.35 5.09
Other Provisions 2.69 0.91
Total 16.04 6.00
(i)
The provision for employee benefit includes gratuity, annual leave and vested long service leave entitlement accrued and compensation claims
made by employees.

102 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

` in crore
2020-21 2019-20
22. Revenue from Operations
Value of Sales 1,31,473.11 1,33,815.21
Income from Services 7,603.85 12,456.35
Total * 1,39,076.96 1,46,271.56
* Net of GST

` in crore
2020-21 2019-20
23. Other Income
Interest
Bank Deposits 11.12 11.16
Debt Instruments 693.75 -
Others 18.77 17.67
723.64 28.83
Gain on Financial Assets
Realised Gain 603.47 70.82
Unrealised Gain 42.54 (2.79)
646.01 68.03
Dividend Income - 2.75
Other Non-Operating Income 155.91 58.82
Total 1,525.56 158.43

Above Other Income comprises of assets measured at amortised cost ` 31.54 crores (previous year ` 28.83 crores), Fair
value through Profit and Loss ` 646.01 crores (previous year ` 70.78 crores) and Other Non-Operating Income ` 155.91
crores (previous year ` 58.82 crores) and income from assets measured at Fair Value through Other Comprehensive
Income ` 692.10 crores (Previous Year ` Nil crores).

2020-21 2019-20
23.1 Other Comprehensive Income – Items that will not be reclassified to Profit and loss
Remeasurement of Defined Benefits Plan 4.86 (15.48)
Total 4.86 (15.48)

2020-21 2019-20
23.2 Other Comprehensive Income – Items that will be reclassified to Profit and loss
Mutual Fund (312.10) 13.87
Foreign Currency Translation 25.77 38.30
Total (286.33) 52.17

` in crore
2020-21 2019-20
24. Changes in Inventories of Finished Goods
and Stock-in-Trade
Inventories (at close)
Finished Goods/ Stock-in-Trade 12,969.52 10,207.09
Inventories (at commencement)
Finished Goods/ Stock-in-Trade 10,207.09 11,898.52
Add: Opening Stock of Subsidiaries acquired
51.21 127.95
during the year
10,258.30 12,026.47
Total (2,711.22) 1,819.38

Annual Report 2020-21 103

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

` in crore
2020-21 2019-20
25. Employee Benefits Expense
Salaries and Wages 1,355.94 1,013.44
Contribution to Provident and Other Funds 100.64 66.53
Staff Welfare Expenses 162.92 176.54
Total 1,619.50 1,256.51

25.1 As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined are given
below : Defined Contribution Plan
Contribution to defined contribution plan, recognised as expenses for the year is as under:

` in crore
Particulars 2020-21 2019-20
Employer’s Contribution to Provident Fund 36.20 26.13
Employer’s Contribution to Superannuation Fund 0.23 0.13
Employer’s Contribution to Pension Scheme 30.16 22.19

Defined Benefit Plans

I. Reconciliation of Opening and Closing Balances of Defined Benefit Obligation
` in crore
Gratuity (funded) Gratuity (unfunded)
Particulars
2020-21 2019-20 2020-21 2019-20
Defined Benefit Obligation at beginning of the year 80.47 51.29 15.11 10.67
Current Service Cost 20.75 16.00 10.76 2.90
Add: on Acquisition/Transfer (0.07) - 10.08 2.44
Interest Cost 5.51 4.11 0.25 0.92
Actuarial (Gain)/ Loss (1.14) 14.84 (1.35) 0.88
Benefits Paid (3.85) (2.98) (1.27) (2.70)
Transfer In/(Out) (1.11) (2.79) 1.11 -
Defined Benefit Obligation at year end 100.56 80.47 34.69 15.11

II. Reconciliation of Opening and Closing Balances of Fair Value of Plan

Assets
` in crore
Gratuity (funded)
Particulars
2020-21 2019-20
Fair Value of Plan Assets at beginning of the year 81.39 52.56
Expected Return on Plan Assets 5.47 4.29
Assets Transferred In/Acquisition 0.44 -
Actuarial Gain/ (Loss) 0.25 (0.03)
Employer Contribution 14.24 24.79
Benefits Paid (2.61) (0.22)
Fair Value of Plan Assets at year end 99.18 81.39
Actual Return on Plan Asset 5.72 3.35

III. Reconciliation of Fair Value of Assets and

Obligations
` in crore
Gratuity (funded) Gratuity (unfunded)
Particulars
2020-21 2019-20 2020-21 2019-20
Fair Value of Plan Assets 99.18 81.39 - -
Present Value of Obligation 100.56 80.47 34.69 15.11
Amount recognised in Balance Sheet
(1.38) 0.92 (34.69) (15.11)
(Surplus/ Deficit)
104 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

IV. Expenses recognised during the year

` in crore
Gratuity (funded) Gratuity (unfunded)
Particulars
2020-21 2019-20 2020-21 2019-20
In Income Statement
Current Service Cost 20.75 16.00 10.76 2.90
Interest Cost 5.45 3.79 0.25 0.92
Return on Plan Assets (5.45) (3.91) - -
Net Cost 20.75 15.88 11.01 3.82
In Other Comprehensive income
Actuarial (Gain)/ Loss (1.14) 14.84 (1.35) 0.88
Return on Plan Assets (0.29) (0.03) - -
Net (Income)/ Expense for the period
Recognised in OCI (1.43) 14.81 (1.35) 0.88

V. Investment Details
As at 31st March, 2021 As at 31st March, 2020
Particulars
` crore % Invested ` crore % Invested
Insurance Policies 98.89 99.92 81.30 99.89
Others 0.08 0.08 0.09 0.11
98.97 100.00 81.39 100.00

VI. Actuarial Assumptions

Gratuity (funded) Gratuity (unfunded)

Particulars
2020-21 2019-20 2020-21 2019-20

Mortality Table (IALM) 2012-14 2006-08 2012-14 2006-08

(Ultimate) (Ultimate) (Ultimate) (Ultimate)
Discount Rate (per annum) 6.95% 6.84% 6.95% 6.84%
Expected rate of return on plan assets (per annum) 6.95% 6.84% - -
Rate of Escalation in Salary (per annum) 6.00% 6.00% 6.00% 6.00%
Rate of employee turnover (per annum) 2.00% 2.00% 2.00% 2.00%
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The
above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the
composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company’s
policy for plan assets management.

VII. The expected contributions for Defined Benefit Plan for the next financial year will be in line
with Financial year 2020-21

These plans typically expose the Group to actuarial risks such as: investment risk, interest risk, longevity risk
and salary risk.

Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate which
is determined by reference to market yields at the end of the reporting period on government
bonds.
Interest risk
A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan’s debt investments.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase
in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk
The present value of the defined plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants
will increase the plan’s liability.

Annual Report 2020-21 105

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

` in crore
2020-21 2019-20
26. Finance Costs
Interest Expenses 397.52 860.43
Other Borrowing Costs 124.89 90.14
Total 522.41 950.57

` in crore
2020-21 2019-20
27. Other Expenses
Selling and Distribution Expenses
Sales Promotion and Advertisement Expenses 523.12 587.00
Store Running Expenses 987.36 1,051.28
Brokerage, Discount, Royalty and Commission 1,382.84 1,462.90
Warehousing and Distribution Expenses 974.37 748.72
3,867.69 3,849.90
Establishment Expenses
Stores and Packing Materials 115.32 148.78
Machinery Repairs 1.39 -
Building Repairs and Maintenance 132.04 140.68
Other Repairs 16.41 8.97
Rent including Lease Rentals 761.89 956.48
Operating Lease Rentals 3,884.48 3,895.58
Insurance 96.48 88.65
Rates and Taxes 35.58 25.10
Travelling and Conveyance Expenses 53.91 82.72
Payment to Auditors 5.30 3.76
Professional Fees 236.94 85.80
Loss on Sale/ Discarding of Assets 26.49 46.44
Exchange Differences (Net) 5.28 (8.19)
Electricity Expenses 230.74 309.07
Charity and Donation 97.70 52.29
Hire Charges 52.46 52.19
General Expenses 306.63 270.92
6,059.04 6,159.24
Total 9,926.73 10,009.14

` in crore
2020-21 2019-20
27.1 Payment to Auditors as:
(a) Statutory Audit Fees 4.39 2.91
(b) Tax Audit Fees 0.07 0.08
(c) Certification and Consultation Fees 0.84 0.77
5.30 3.76

Certification and Consultancy Fees primarily includes certification fees paid to Auditors. Statute and regulations
permit auditors to certify export/ import documentation, quarterly filings, XBRL filings, transfer pricing among
others.

106 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

27.2 CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof
by the Company within the group during the year : ` 97.70 crore (previous year ` 52.29 crore). Expenditure related
to Corporate Social Responsibility is ` 97.70 crore (previous year ` 52.29 crore). Details of Amount spent towards
CSR given below:

` in crore
Particulars 2020-21 2019-20
Healthcare 46.14 6.46
Education 41.49 9.07
Rural Transformation 4.58 13.79
Disaster Relief 4.23 2.38
Sports For Development 1.26 17.07
Skilling and Employment Initiative - 3.06
Environmental Sustainability - 0.36
Community Development - 0.10
Total * 97.70 52.29
* Represents amount spent through Reliance Foundation ` 97.70 crore (Previous Year ` 42.29 crore) & Reliance Foundation Youth Sports `
NIL crore (Previous Year ` 10.00 crore)

` in crore
Year ended Year ended
31st March, 2021 31st March, 2020
28. Taxation
Income Tax recognised in Profit or Loss
Current Tax 1,809.46 1,040.28
Deferred Tax 140.02 852.76
Total Income Tax Expense 1,949.48 1,893.04
The Income Tax expenses for the year can be reconciled to the accounting profit as follows:

As at As at
Particulars
31st March, 2021 31st March, 2020
Profit before Tax 7,430.77 7,341.01
Applicable Tax Rate 25.17% 25.170%
Computed Tax Expense 1,870.18 1,847.73
Tax Effect of :
Carry forward losses utilised 74.90 49.19
Non taxable Subsidiaries 18.50 7.61
Expenses disallowed 1,148.82 301.32
Additional Allowances (1,315.18) (1,162.64)
Effect of Additional allowances for capital gain
Others 12.24 -
Prior Period Adjustment - Tax paid for earlier year 0.00 (2.93)
Current Tax Provision (A) 1,809.46 1,040.28
Incremental Deferred Tax Liability on account of PPE & Intangible Assets 22.35 546.49
Incremental Deferred Tax Liability on account of Financial Assets & Other items 117.67 306.27
Deferred Tax Provision (B) 140.02 852.76
Tax Expenses recognised in Statement of Profit and Loss (A+B) 1,949.48 1,893.04
Effective Tax Rate 26.24% 25.79%

Annual Report 2020-21 107

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

Proportion of
Country of
Name of Subsidiaries Ownership
Incorporation
Interest

29. Enterprises Consolidated as Subsidiary in accordance with Indian Accounting Standard 110 – Consolidated
Financial Statements:
Reliance Retail Limited India 99.93%
Reliance Petro Marketing Limited India 99.93%
Reliance-GrandOptical Private Limited India 99.93%
Reliance Clothing India Private Limited India 99.93%
Reliance Brands Limited India 80.00%
Reliance GAS Lifestyle India Private Limited India 41.00%
Genesis Colors Limited India 64.00%
Reliance Brands Luxury Fashion Private Limited (Formerly Genesis Luxury Fashion
Private Limited) India 72.09%
Genesis La Mode Private Limited India 86.05%
GML India Fashion Private Limited India 86.05%
GLB Body Care Private Limited India 93.02%
GLF Lifestyle Brands Private Limited India 86.05%
Reliance Lifestyle Products Private Limited(Formerly V&B Lifestyle India Private Limited) India 76.04%
Shri Kannan Departmental Store Private Limited India 100.00%
Reliance Brands Holding UK Limited United Kingdom 80.00%
Hamleys Global Holdings Limited * United Kingdom 80.00%
The Hamleys Group Limited * United Kingdom 80.00%
Hamleys of London Limited United Kingdom 80.00%
Hamleys (Franchising) Limited United Kingdom 80.00%
Hamleys Asia Limited Hongkong 80.00%
Scrumpalicious Limited * United Kingdom 80.00%
Luvley Limited * United Kingdom 80.00%
Hamleys Toys (Ireland) Limited Ireland 80.00%
Reliance Retail and Fashion Lifestyle Limited India 100.00%
Grab a Grub Services Private Limited India 82.41%
NowFloats Technologies Private Limited India 88.33%
C-Square Info-Solutions Private Limited India 81.64%
Shopsense Retail Technologies Private Limited India 86.69%
Mesindus Ventures Private Limited India 83.33%
Dadha Pharma Distribution Private Limited India 100.00%
Tresara Health Private Limited India 100.00%
Vitalic Health Private Limited India 65.19%
Netmeds Marketplace Limited India 100.00%
Urban Ladder Home Décor Solution Private Limited India 99.99%
Actoserba Active Wholesale Private Limited India 86.15%

* Under Liquidation

Country of Proportion of
Name of Joint Ventures Relation Ownership
Incorporation
Interest

30. Significant Enterprises consolidated as Associates and Joint Ventures in accordance with Indian
Accounting Standard 28 – Investment in Associates and Joint Ventures
Reliance-Grand Vision India Supply Private Limited Joint Venture India 49.97%
Reliance-Vision Express Private Limited Joint Venture India 49.97%
Marks and Spencer Reliance India Private Limited Joint Venture India 48.97%
Diesel Fashion India Reliance Private Limited Joint Venture India 39.20%
Iconix Lifestyle India Private Limited Joint Venture India 40.00%
Brooks Brothers India Private Limited Joint Venture India 39.20%
Reliance Paul & Shark Fashions Private Limited Joint Venture India 40.00%
Zegna South Asia Private Limited Joint Venture India 39.20%
Ryohin-Keikaku Reliance India Private Limited Joint Venture India 39.20%
Reliance Bally India Private Limited Joint Venture India 40.00%
TCO Reliance India Private Limited Joint Venture India 39.20%
Reliance Sideways Private Limited Joint Venture India 40.00%
Canali India Private Limited Joint Venture India 35.32%
Burberry India Private Limited Joint Venture India 31.36%

108 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

2020-21 2019-20

31. Earnings Per Share (EPS)

Face Value per Equity Share (`) 10 10
Basic Earnings per Share (`) 8.64 9.14
Net Profit (after adjusting Minority Interest) as per Profit and Loss Statement attributable to
5,543.07 5,483.29
Equity Shareholders (` crore)
Weighted average number of equity shares used as denominator for calculating EPS 641,32,85,310 600,00,00,000
Diluted Earnings per Share (`) 8.64 7.83
Net Profit (after adjusting Minority Interest) as per Profit and Loss Statement attributable to
5,543.07 5,483.29
Equity Shareholders (` crore)
Weighted Average number of Equity Shares used as denominator for calculating Diluted EPS 641,32,85,310 700,00,00,000
Reconciliation of weighted average number of shares outstanding
Weighted Average number of Equity Shares used as denominator for calculating Basic EPS 641,32,85,310 600,00,00,000
Total Weighted Average Potential Equity Shares - 100,00,00,000
Weighted Average number of Equity Shares used as denominator for calculating Diluted EPS 641,32,85,310 700,00,00,000

` in crore
As at As at
31st March, 2021 31st March, 2020
32. Commitments and Contingent Liabilities
(I) Contingent Liabilities
(A)Outstanding guarantees furnished to banks including in respect of letters of credit
(i) In respect of Others 969.90 1,913.77
(B) Claim against the Company/ Disputed Liabilities not acknowledged as Debts*
(i) In respect of Others 72.84 73.23
(II) Commitments
(A) Estimated amount of contracts remaining to be executed on capital accounts
and not provided for
(i) In respect of Others 31.44 90.36
(B) Uncalled liability on shares and other investments partly paid 200.00 -

* The above disputed liabilities are not expected to have any material effect on the financial position of the Company

33. Capital Management

The Group adheres to a disciplined Capital Management framework, the pillars of which are as follows:

a) Maintain diversity of sources of financing and spreading the maturity across tenure buckets in order to
minimise liquidity risk.

b) Manage financial market risks arising from foreign exchange, interest rates and commodity prices, and minimise
the impact of market volatility on earnings.

c) Leverage optimally in order to maximise shareholder returns while maintaining strength and flexibility of
Balance Sheet. This framework is adjusted based on underlying macroeconomic factors affecting business
environment, financial market conditions and interest rates environment.

The Net gearing ratio at the end of the reporting period was as follows:
` in crore
As at As at
31st March, 2021 31st March, 2020

Gross Debt 9,029.55 4,618.47

Cash and Marketable Securities* 43,335.10 730.42
Net Debt (A) (34,305.55) 3,888.05
Total Equity (As per Balance Sheet) (B) 81,525.68 19,064.97
Net Gearing (A/B) (0.42) 0.20
*Cash and Marketable Securities include Cash and Cash Equivalents of ` 548.42 crore (Previous Year ` 488.01 crore), Current
Investments of ` 42,786.68 crore (Previous Year ` 242.41 crore).

Annual Report 2020-21 109

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

34. Financial Instruments

Valuation Methodology
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a) The fair value of investment in unquoted Mutual Funds is measured at quoted price or NAV.

b) The fair value of Forward Foreign Exchange contracts is determined using forward exchange rates at
the balance sheet date.

c) Commodity derivative contracts are valued using readily available information in markets and quotations
from exchange & brokers.

d) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

e) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
Fair value measurement hierarchy:
` in crore
31st March, 2021 31st March, 2020

Particulars Level of input used in Level of input used in

Carrying Carrying
Amount Amount
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial Assets
At Amortised Cost
Investments* 0.29 - - - 0.29 - - -
Trade Receivables 6,220.99 - - - 2,868.77 - - -
Cash and Bank Balances 548.42 - - - 488.01 - - -
Loans 118.31 - - - 134.33 - - -
Other Financial Assets 2,957.07 - - - 1,509.11 - - -
At FVTPL
Investments 6,193.56 6,093.55 - 100.01 9.29 9.28 - 0.01
Financial Derivatives 1.04 - 1.04 - 23.35 - 23.35 -
Commodity Derivatives 24.88 6.97 17.91 - 1.50 1.50 - -
At FVTOCI
Investments 36,794.50 36,693.13 - 101.37 328.50 233.13 - 95.37
Financial Liabilities
At Amortised Cost
Borrowings 9,029.55 - - - 4,618.47 - - -
Trade Payables 6,989.29 - - - 6,422.06 - - -
Other Financial Liabilities 3,568.04 - - - 7,180.17 - - -
At FVTPL
Financial Derivatives - - - - - - - -
Other Financial Liabilities - - - - - - - -
Commodity Derivatives - - - - 37.45 37.45 - -
* Excludes Group Company ` 377.69 crore (` 426.31 crore Previous Year) measured at cost (Refer Note No. 2.1)

Reconciliation of fair value measurement of the investment categorised at level

3:
` in crore
31st March, 2021 31st March, 2020
Particulars
At FVTPL At FVTOCI At FVTPL At FVTOCI
Opening Balance 0.01 95.37 0.01 93.37
Addition during the year 100.00 6.00 - 2.00
Closing Balance 100.01 101.37 0.01 95.37
The financial instruments are categorised into three levels based on the inputs used to arrive at fair value:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

110 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because
of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which
are denominated in currencies other than Indian Rupee.

The following table shows foreign currency exposures in USD, RMB, HKD, GBP, & EUR on financial instruments at
the end of the reporting period. The exposure to other foreign currencies are not material.
(i) Foreign Currency Exposure
` in crore
31st March, 2021 As at 31st March, 2020

USD GBP EUR HKD USD GBP EUR RMB

Borrowings 5.61 24.00 - - 23.15 - - -

Trade Payables 156.07 12.24 13.25 0.36 590.29 14.35 10.08 7.67
Trade Receivables (2.24) - - - - - - -
Derivatives
Forwards & Futures (1,003.57) (5.04) (0.86) - (725.94) - - (60.18)
Net Exposure (844.13) 31.20 12.39 0.36 (112.50) 14.35 10.08 (52.51)

Interest Rate risk

The exposure of the Group’s borrowings and derivatives to interest rate changes at the end of the
reporting period are as follows:

As at As at
31st March, 2021 31st March, 2020
Borrowings
Non-Current – Floating (Includes Current Maturities) - -
Non-Current – Fixed (Includes Current Maturities) 0.04 0.15
Current# 9,079.64 4,624.62
Total 9,079.68 4,624.77
#
Include ` 50.13 crore (` 6.30 Previous year) as Commercial Paper Discount

Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the
amounts due causing financial loss to the Group. Credit risk arises from Group’s activities in investments,
dealing in derivatives and receivables from customers. The Group ensure that sales of products are made to
customers with appropriate creditworthiness. Investment and other market exposures are managed against
counterparty exposure limits. Credit information is regularly shared between businesses and finance function,
with a framework in place to quickly identify and respond to cases of credit deterioration.

The Group has a prudent and conservative process for managing its credit risk arising in the course of its
business activities. Credit risk across the Group is actively managed through Letters of Credit, Bank
Guarantees, Parent Group Guarantees, advance payments and factoring & forfaiting without recourse to the
Group. The Group restricts its fixed income investments in liquid securities carrying high credit rating.
Liquidity Risk
Liquidity risk arises from the Group’s inability to meet its cash flow commitments on the due date. The
Group maintains sufficient stock of cash, marketable securities and committed credit facilities. The
Group accesses global and local financial markets to meet its liquidity requirements. It uses a range of
products to ensure efficient funding from across well-diversified markets. Treasury monitors rolling
forecasts of the Group’s cash flow position and ensures that the Group is able to meet its financial
obligation at all times including contingencies.

The Group’s liquidity is managed centrally with operating units forecasting their cash and liquidity
requirements. Treasury pools the cash surpluses and arranges to either fund the net deficitor invest the net
surplus in a range of short-dated, secure and liquid instruments including short-term bank deposits and
similar instruments. The portfolio of these investments is diversified to avoid concentration risk in any one
instrument or counterparty.

Annual Report 2020-21 111

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

Maturity Profile of Loans and Derivative Financial Liabilities as on 31st March,

2021
` in crore
Below 3 3-6 6-12 Above 5
Liquidity Risks* 1-3 years 3-5 years Grand
months months months years Total

Non Derivative Liabilities

Non Current 0.01 0.01 0.01 0.01 - - 0.04
Current # 9,079.64 - - - - - 9,079.64
Total 9,079.65 0.01 0.01 0.01 - - 9,079.68
Lease Liabilities 75.83 74.43 144.64 484.65 365.22 3,677.96 4,822.73
Derivatives Liabilities
Forwards / Futures 37.45 - - - - - 37.45
Total 37.45 - - - - - 37.45

Maturity Profile of Loans and Derivative Financial Liabilities as on 31 March,

2020
` in crore
Below 3 6-12 Above 5
Liquidity Risks* 3-6 months 1-3 years 3-5 years Grand
months months years Total

Non Current 0.03 0.03 0.05 0.04 - - 0.15

Current # 3,843.82 780.80 - - - - 4624.62
Total 3,843.85 780.83 0.05 0.04 - - 4,624.77
Lease Liabilities 66.37 66.75 131.39 562.61 301.22 3,393.51 4,521.85
Derivatives Liabilities
Forwards / Futures 37.45 - - - - - 37.45
Total 37.45 - - - - - 37.45
* Does not include Trade Payable amounting to ` 6,989.29 crore (` 6,422.06 crore).
#
Include ` 50.13 crore (` 6.30 Previous year) as Commercial Paper Discount.

Hedge Accounting
Commodity risk: The Group is subject to commodity price risks due to fluctuation in prices of underlying
Gold and Silver Inventories. The Group uses a combination of Futures and Forward contracts to hedge the
physical exposure of commodity positions. The Group has adopted a structured risk management policy to
hedge commodity risks within an acceptable risk limit and an approved hedge accounting framework which
allows Fair Value hedges. The gain /loss on hedging instruments are aligned and effectively offset with
hedge item. Since the hedge instrument and hedge items normally offset and hence it is fully effective. The
table below shows the position of hedging instruments and hedged items as on the balance sheet date.

Disclosure of effects of hedge accounting

Fair Value Hedge

Hedging Instrument

` in crore

Type of Hedge and Risks Carrying amount

Nominal Quantity Changes Hedge Line Item in Balance
Value (in Kgs) in FV Maturity Date Sheet
Assets Liabilities
As at 31st March, 2021
Commodity price risk
Derivative Contracts Other Financial
1,554.98 5,092.00 24.88 - 24.88
May 21–July 21 Asset/ Liabilities
As at 31 March, 2020
st

Commodity price risk

Derivative Contracts 4,987.00 1.50 37.45 (35.96) May 20–June 20 Other Financial
1,569.99 Asset/ Liabilities
112 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

Hedged Items:

` in crore

Carrying Value
Change in fair Line Item in
Type of Hedge and Risks
value Balance Sheet
Assets Liabilities
As at 31st March, 2021
Commodity price risk
Inventories 1,539.91 - (24.88) Inventories
As at 31st March, 2020
Commodity price risk
Inventories 1,517.70 - 35.96 Inventories

35. Related Party Disclosures:

(i) List of related parties with whom transactions have taken place and relationship

Sr.
No. Name of the Related Party Relationship

1 Reliance Industries Limited Holding Company

2 Viacom 18 Media Private Limited
3 TV18 Broadcast Limited
4 The Indian Film Combine Private Limited
5 Saavn Media Limited (Formerly Saavn Media Private Limited)
6 Reliance Innovative Building Solutions Private Limited
7 Reliance Strategic Investments Limited
8 Reliance SMSL Limited
9 Reliance Sibur Elastomers Private Limited
10 Reliance Retail Insurance Broking Limited
11 Reliance Retail Finance Limited
12 Reliance Prolific Traders Private Limited
13 Reliance Prolific Commercial Private Limited
14 Reliance Projects & Property Management Services Limited
15 Reliance Progressive Traders Private Limited
16 Reliance Payment Solutions Limited
17 Reliance Jio Messaging Services Limited
18 Reliance Jio Media Limited
19 Reliance Gas Pipelines Limited
20 Reliance Eminent Trading & Commercial Private Limited
21 Reliance Corporate IT Park Limited
Fellow Subsidiaries
22 Reliance Commercial Dealers Limited
23 Reliance BP Mobility Limited
24 Reliance Ambit Trade Private Limited
25 Reliance Jio Infocomm Limited
26 Network18 Media & Investments Limited
27 Kanhatech Solutions Limited
28 Jio Platforms Limited
29 Jio Haptik Technologies Limited
30 Indiawin Sports Private Limited
31 Indiavidual Learning Limited (Formerly Indiavidual Learning Private
Limited)
32 Indiacast Media Distribution Private Limited
33 RISE Worldwide Limited (Formerly IMG Reliance Limited)
34 Hathway Cable and Datacom Limited
35 GTPL Broadband Private Limited
36 e-Eighteen.Com Limited
37 Den Networks Limited
38 Shopsense Retail Technologies Private Limited*
39 Grab A Grub Services Private Limited*
40 Reliance Industrial Investments and Holdings Limited
41 Reliance Strategic Business Ventures Limited
Annual Report 2020-21 113
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

Sr.
No. Name of the Related Party Relationship

42 Canali India Private Limited

43 Reliance Lifestyle Products Private Limited (Formerly V&B Lifestyle
India Private Limited)*
44 Zegna South Asia Private Limited
45 Ryohin-Keikaku Reliance India Private Limited
46 Reliance-Vision Express Private Limited
47 Reliance Paul & Shark Fashions Private Limited
48 Reliance-GrandVision India Supply Private Limited
49 Reliance Bally India Private Limited Joint Venture
50 Marks And Spencer Reliance India Private Limited
51 Iconix Lifestyle India Private Limited
52 Diesel Fashion India Reliance Private Limited
53 Burberry India Private Limited
54 Brooks Brothers India Private Limited
55 TCO Reliance India Private Limited
56 Reliance Sideways Private Limited
57 Shri V.Subramaniam
58 Shri Dinesh Thapar
59 Shri Ashwin Khasgiwala* Key Managerial Personnel
60 Shri K Sridhar
61 Reliance Retail Limited Employees Gratuity Fund Post
62 Reliance Retail Limited Employees Provident Employment Benefits Plan
Fund
63 Reliance Foundation Enterprises over which Key
Managerial Personnel of the
Holding Company are able
to exercise significant
influence
* The above entities includes related parties where relationship existed for part of the year / previous year.

(ii) Transactions during the year with related parties (excluding reimbursements):

` in crore

Sr. Holding Joint Key

Nature of Transactions Fellow Ventures/ Managerial Others Total
No. Company subsidiaries
Associate Personnel
1 Call Money 2,350.00 - - - - 2,350.00
Received towards OCPS - - - - - -
2 Redemption of (4,000.00) - - - - (4,000.00)
Preference Shares - - - - - -
3 Equity Share Capital Issued 11,650.00 - - - - 11,650.00
- - - - - -
4 Deposits Given - 780.08 - - - 780.08
- 384.28 - - - 384.28
5 Purchase/ - 873.61 10.47 - - 884.08
subscription of investments - - 37.16 - - 37.16
6 Purchase of Property Plant & - 2,607.36 - - - 2,607.36
Equipment/ Project Materials 2,573.16 0.01 - - 2,573.17
and Other Intangible Assets -
7 Sale of Project Materials - - - - - -
- 1,108.01 - - - 1,108.01
8 Revenue from Operations 166.97 7,182.40 60.49 - 7.25 7,417.11
89.29 7,055.17 41.17 - - 7,185.63
9 Purchases 3,165.65 77,128.99 22.23 - - 80,316.87
14,025.99 58,118.97 8.41 - - 72,153.37
10 Expenditure
a) Store Running Expenses 0.01 796.41 - - - 796.42
0.01 643.46 - - - 643.47
b) Professional Fees 1.48 702.24 - - - 703.72
1.35 62.70 - - - 64.05
c) Building Repairs - 78.38 - - - 78.38
and Maintenance - 47.55 - - - 47.55
d) Hire Charges - 18.29 - - - 18.29
- 4.67 - - - 4.67
114 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

` in crore

Sr. Joint Key

Nature of Transactions Holding Fellow
No. Ventures/ Managerial Others Total
Company subsidiaries
Associate Personnel

e) Rent including Lease Rentals - 583.92 - - - 583.92

- 651.37 - - - 651.37
f) Electricity Expenses 0.02 201.49 - - - 201.51
0.38 267.74 - - - 268.12
g) Sales Promotion and - 0.73 0.13 - - 0.86
Advertisement Expenses - 0.16 - - - 0.16
h) Commission - 22.12 - - - 22.12
- 7.20 - - - 7.20
i) Finance Cost 55.25 - - - - 55.25
7.94 - - - - 7.94
j) Travelling Expenses - 50.53 - - - 50.53
- 15.71 - - - 15.71
k) Warehousing and - - - - - -
Distribution - 1.68 - - - 1.68
Expenses
l) Stores and Packing Materials 1.63 - - - - 1.63
- - - - - -
m) General Expenses - 164.82 - - - 164.82
- 145.89 - - - 145.89
n) Employees Benefits Expense - - - - 119.00 119.00
- - - - 116.91 116.91
o) Payment to Key - - - 2.69 - 2.69
Managerial Personnel - - - 2.26 - 2.26
p) Donations - - - - 97.70 97.70
- - - - - -
Balance as at 31st March, 2021
a) Share Capital 17,317.00-----------------------------------------------------------------17,317.00
5,667.00 - - - - 5,667.00
b) Preference Share Capital #
- - - - - -
1,000.00 - - - - 1,000.00
c) Call Money - - - - - -
Received towards 650.00 - - - - 650.00
OCPS
d) Deposits taken - - 0.04 - - 0.04
- - 0.04 - - 0.04
e) Deposits Given - 1,464.36----------------------------------------------------1,464.36
0.03 684.28 - - - 684.31
f) Other Current Assets - 4,240.42----------------------------------------------------4,240.42
- 0.76 0.03 - - 0.79
g) Other Current liabilities - 16.15 1.36 - - 17.51
- 0.31 0.56 - - 0.87
h) Investments - - 377.69 - - 377.69
- - 426.31 - - 426.31
i) Trade and Other Receivables 18.30 90.13 49.60 - 0.33 158.36
26.31 118.20 25.89 - - 170.40
j) Trade and Other Payables 48.12 109.61 5.47 - - 163.20
225.29 43.80 5.34 - - 274.43
k) Other Non-Current Assets - 64.73 - - - 64.73
- - - - - -
# Includes Securities Premium

Figures in italics represents previous year’s amount.

(iii) Disclosure in respect of major related party transactions during the

year:
` in crore

Annual Report
2020-21
 Sr.
Particulars Relationship 2020-21 2019-20
No
1 Call Money Received towards OCPS
Reliance Industries Limited Holding Company 2,350.00 -
2 Redemption of Preference Shares
Reliance Industries Limited Holding Company (4,000.00) -
3 Equity Share Capital Issued
Reliance Industries Limited Holding Company 11,650.00 -
4 Deposits Given
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 769.72 381.04
The Indian Film Combine Private Limited Fellow Subsidiaries 10.36 3.24

115
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

` in crore
Sr.
Particulars Relationship 2020-21 2019-20
No
5 Purchase/ subscription of investments
Reliance Industrial Investments and Holdings Limited Fellow Subsidiaries 684.39 -
Reliance Strategic Business Ventures Limited Fellow Subsidiaries 189.22 -
Reliance Paul & Shark Fashions Private Limited Joint Ventures 1.00 1.25
Zegna South Asia Private Limited Joint Ventures - 2.70
Reliance Vision Express Private Limited Joint Ventures 8.00 5.00
Diesel Fashion India Reliance Private Limited Joint Ventures - 4.90
Ryohin-Keikaku Reliance India Private Limited Joint Ventures 1.47 8.33
Reliance Bally India Private Limited Joint Ventures - 1.25
TCO Reliance India Private Limited Joint Ventures - 13.72
Reliance Sideways Private Limited Joint Ventures - 0.01
6 Purchase of Property Plant & Equipment/ Project
Materials and Other Intangible Assets
Reliance Corporate IT Park Limited Fellow Subsidiaries - 710.55
Reliance Jio Infocomm Limited Fellow Subsidiaries 0.18 1.49
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 2,607.18 1,861.12
Ryohin-Keikaku Reliance India Private Limited Joint Ventures - 0.01
7 Sale of Project Materials
Reliance Industries Limited (` 20,827) Holding Company 0.00 -
Reliance Projects & Property Management Services Limited Fellow Subsidiaries - 1,108.01
Reliance Bally India Private Limited (`16,373) Joint Ventures 0.00 -
8 Revenue from Operations
Reliance Industries Limited Holding Company 166.97 89.29
Reliance Corporate IT Park Limited Fellow Subsidiaries 11.93 3,080.43
Indiawin Sports Private Limited Fellow Subsidiaries - 1.53
Reliance Jio Infocomm Limited Fellow Subsidiaries 1,944.13 1,556.06
Reliance Progressive Traders Private Limited Fellow Subsidiaries 0.57 0.71
Reliance Sibur Elastomers Private Limited Fellow Subsidiaries 0.23 9.11
Reliance Retail Insurance Broking Limited Fellow Subsidiaries 11.19 12.81
TV18 Broadcast Limited Fellow Subsidiaries 0.29 0.28
Reliance Jio Media Limited Fellow Subsidiaries 0.30 1.44
Reliance Commercial Dealers Limited Fellow Subsidiaries 0.09 -
Viacom 18 Media Private Limited Fellow Subsidiaries 0.16 0.12
Network 18 Media & Investments Limited Fellow Subsidiaries - 0.02
Indiacast Media Distribution Private Limited Fellow Subsidiaries 0.01 0.01
Indiavidual Learning Limited (Formerly Indiavidual Learning Fellow Subsidiaries - 1.81
Private Limited)
Reliance Retail Finance Limited Fellow Subsidiaries 3.80 55.41
Saavn Media Limited (Formerly Saavn Media Private Limited) Fellow Subsidiaries 0.87 0.50
Den Networks Limited Fellow Subsidiaries 0.09 -
E-Eighteen.Com Limited Fellow Subsidiaries 0.06 0.11
Reliance BP Mobility Limited Fellow Subsidiaries 217.19 -
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 4,975.33 2,334.58
Reliance Eminent Trading & Commercial Private Limited Fellow Subsidiaries - 0.01
Reliance Prolific Commercial Private Limited Fellow Subsidiaries 0.01 -
Reliance Prolific Traders Private Limited Fellow Subsidiaries - 0.07
The Indian Film Combine Private Limited Fellow Subsidiaries 0.17 -
Jio Haptik Technologies Limited Fellow Subsidiaries 0.08 0.05
RISE Worldwide Limited (Formerly IMG Reliance Limited) Fellow Subsidiaries 0.02 -
Indiawin Sports Private Limited Fellow Subsidiaries 2.17 -
Jio Platforms Limited Fellow Subsidiaries 0.56 -
Kanhatech Solutions Limited Fellow Subsidiaries 10.23 -
Reliance Jio Messaging Services Private Limited Fellow Subsidiaries 0.18 -
Reliance SMSL Limited Fellow Subsidiaries 2.74 -
Reliance-Vision Express Private Limited Joint Ventures 1.25 2.25
Brooks Brothers India Private Limited Joint Ventures 3.91 3.78
Diesel Fashion India Reliance Private Limited Joint Ventures 5.53 5.72
Reliance Paul & Shark Fashions Private Limited Joint Ventures 0.67 0.99

116 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

` in crore
Sr.
Particulars Relationship 2020-21 2019-20
No

Zegna South Asia Private Limited Joint Ventures 1.74 1.69

Marks and Spencer Reliance India Private Limited Joint Ventures 40.33 18.99
Iconix Lifestyle India Private Limited Joint Ventures 3.30 3.11
Ryohin-Keikaku Reliance India Private Limited Joint Ventures 2.31 1.92
Reliance Bally India Private Limited Joint Ventures 1.45 1.83
Burberry India Private Limited Joint Ventures - 0.57
Canali India Private Limited Joint Ventures - 0.17
Reliance Lifestyle Products Private Limited (Formerly V&B Joint Ventures - 0.15
Lifestyle India Private Limited)*
Reliance Foundation Others 7.25 -
9 Purchases
Reliance Industries Limited Holding Company 3,165.65 14,025.99
Reliance SMSL Limited Fellow Subsidiaries - 0.55
Reliance Payment Solutions Limited Fellow Subsidiaries - 0.12
Jio Platforms Limited Fellow Subsidiaries 137.55 -
Reliance BP Mobility Limited Fellow Subsidiaries 1,784.51 -
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 870.90 -
Viacom 18 Media Private Limited. Fellow Subsidiaries 0.07 -
Reliance Corporate IT Park Limited Fellow Subsidiaries 0.26 0.06
Reliance Jio Infocomm Limited Fellow Subsidiaries 74,335.67 58,118.24
Reliance Gas Pipelines Limited Fellow Subsidiaries 0.01 -
Jio Haptik Technologies Limited Fellow Subsidiaries 0.02 -
Reliance-Vision Express Private Limited Joint Ventures 0.39 0.13
Reliance-GrandVision India Supply Private Limited Joint Ventures - 0.05
Reliance Bally India Private Limited Joint Ventures 1.22 0.28
Canali India Private Limited Joint Ventures - 0.96
Reliance Paul & Shark Fashions Private Limited Joint Ventures 2.39 0.17
Diesel Fashion India Reliance Private Limited Joint Ventures 3.70 0.22
Marks and Spencer Reliance India Private Limited Joint Ventures 10.74 5.23
Zegna South Asia Private Limited Joint Ventures 1.17 -
Brooks Brothers India Private Limited Joint Ventures 2.62 1.37
10 Expenditure
a) Store Running Expenses
Reliance Industries Limited Holding Company 0.01 0.01
Reliance Corporate IT Park Limited Fellow Subsidiaries 211.50 188.91
Reliance SMSL Limited Fellow Subsidiaries 203.53 167.25
Reliance BP Mobility Limited Fellow Subsidiaries 0.08 -
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 381.30 286.92
Reliance Jio Infocomm Limited Fellow Subsidiaries - 0.38
b) Professional Fees
Reliance Industries Limited Holding Company 1.48 1.35
Reliance Corporate IT Park Limited Fellow Subsidiaries 53.87 53.31
Jio Platforms Limited Fellow Subsidiaries 644.86 -
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 3.50 9.39
Jio Haptik Technologies Limited Fellow Subsidiaries 0.01 -
c) Building Repairs and Maintenance
Reliance Corporate IT Park Limited Fellow Subsidiaries - 11.95
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 78.38 35.60
d) Hire Charges
Reliance Corporate IT Park Limited Fellow Subsidiaries - 0.91
Reliance SMSL Limited Fellow Subsidiaries 13.42 -
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 4.87 9.00

Annual Report 2020-21 117

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

` in crore
Sr.
Particulars Relationship 2020-21 2019-20
No

e) Rent including Lease Rentals

Reliance Corporate IT Park Limited Fellow Subsidiaries - 261.03
Reliance Ambit Trade Private Limited Fellow Subsidiaries 0.28 0.49
Reliance Eminent Trading & Commercial Private Limited Fellow Subsidiaries 0.05 0.16
Reliance Progressive Traders Private Limited ( ` 25,325) Fellow Subsidiaries 0.00 0.03
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 581.53 387.64
Reliance Prolific Commercial Private Limited Fellow Subsidiaries 0.03 0.09
Reliance Innovative Building Solutions Private Limited Fellow Subsidiaries 2.03 1.93
f) Electricity Charges
Reliance Industries Limited Holding Company 0.02 0.38
Reliance Corporate IT Park Limited Fellow Subsidiaries - 109.05
Reliance Progressive Traders Private Limited Fellow Subsidiaries 0.21 0.42
Reliance Ambit Trade Private Limited Fellow Subsidiaries 0.16 0.48
Reliance BP Mobility Limited Fellow Subsidiaries 0.09 -
Reliance Eminent Trading & Commercial Private Limited Fellow Subsidiaries 0.09 0.28
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 200.73 157.18
Reliance Prolific Commercial Private Limited Fellow Subsidiaries 0.21 0.33
Hathway Cables and Datacom Limited (P.Y. ` 2,655) Fellow Subsidiaries - 0.00
g) Sales Promotion and Advertisement Expenses
Viacom 18 Media Private Limited. Fellow Subsidiaries 0.07 0.11
Saavn Media Limited (Formerly Saavn Media Private Limited) Fellow Subsidiaries 0.01 -
Reliance Payment Solutions Limited Fellow Subsidiaries - 0.05
Indiawin Sports Private Limited Fellow Subsidiaries 0.59 -
Jio Haptik Technologies Limited Fellow Subsidiaries 0.06 -
Ryohin-Keikaku Reliance India Private Limited (P.Y. ` 42,000) Joint Ventures 0.01 0.00
Reliance Paul & Shark Fashions Private Limited Joint Ventures 0.08 -
Zegna South Asia Private Limited (C.Y. ` 25,200) Joint Ventures 0.00 -
Diesel Fashion India Reliance Private Limited Joint Ventures 0.04 -
h) Commission
Reliance Payment Solutions Limited Fellow Subsidiaries 22.12 5.96
Viacom 18 Media Private Limited (C.Y. ` 25,892) Fellow Subsidiaries 0.00 -
Shopsense Retail Technologies Private Limited Fellow Subsidiaries - 1.24
i) Finance Cost
Reliance Industries Limited Holding Company 55.25 7.94
j) Travelling Expenses
Reliance Commercial Dealers Limited Fellow Subsidiaries 50.53 15.71
k) Warehousing and Distribution Expenses
Grab A Grub Services Private Limited Fellow Subsidiaries - 1.68
l) Stores and Packing Materials
Reliance Industries Limited Holding Company 1.63 -
m) General Expenses
Reliance Corporate IT Park Limited Fellow Subsidiaries - 47.17
Reliance Jio Infocomm Limited Fellow Subsidiaries 48.39 29.84
Hathway Cables and Datacom Private Limited (C.Y. ` 3,327) Fellow Subsidiaries 0.00 0.01
TV18 Home shopping Network Limited Fellow Subsidiaries - -
Reliance Jio Infocomm Limited Fellow Subsidiaries - -
Reliance Payment Solutions Limited Fellow Subsidiaries - 0.20
Reliance Projects & Property Management Services Limited Fellow Subsidiaries 116.31 68.67
Viacom 18 Media Private Limited Fellow Subsidiaries 0.04 -
Jio Haptik Technologies Ltd. Fellow Subsidiaries 0.08 -
Reliance Jio Digital Services Private Limited Fellow Subsidiaries - -
GTPL Broadband Private Limited (C.Y. ` 5,300) Fellow Subsidiaries 0.00 -

118 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

` in crore
Sr.
Particulars Relationship 2020-21 2019-20
No

n) Employee Benefits Expense

Reliance Retail Limited Employees Gratuity Fund Others 14.20 24.79
Reliance Retail Limited Employees Provident Fund Others 104.80 92.12
o) Payment to Key Managerial Personnel
Shri Ashwin Khasgiwala* Key - 0.19
Managerial Personnel
Shri Dinesh Thapar Key 2.36 1.73
Managerial Personnel
Shri K. Sridhar Key 0.33 0.34
Managerial Personnel
p) Donations
97.70 -
Reliance Foundation Others
* The above entities includes related parties where relationship existed for part of the year / previous year

` in crore
2020-21 2019-20
35.1 Compensation of Key Managerial Personnel
Short-term benefits 2.69 2.26

36. Segment Information

The Group is engaged in ‘Organised Retail’ primarily catering to Indian consumers in various consumption
baskets and ‘Petro Retail’. All the activities of the Group revolve around these main businesses. Accordingly,
the Group has two identifiable segment reportable under Ind AS 108 “Operating Segment”. The chief
operational decision maker
monitors the operating results of the entity’s business for the purpose of making decisions about resource allocation
and performance assessment.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Group with
following additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities
of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a
segment on reasonable basis have been disclosed as “Unallocable”.

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Certain Assets
and Liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

Annual Report 2020-21 119

Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

(i) Primary Segment Information

` in crore

Particulars Organised Retail Petro Retail Unallocated Total

2020-21 2019-20 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20

1 Segment Revenue
External Turnover 1,52,355.75 1,48,721.38 5,273.34 14,214.62 - - 1,57,629.09 1,62,936.00
Inter Segment Turnover - - - - - - - -
Value of Sales and Services 1,52,355.75 1,48,721.38 5,273.34 14,214.62 - - 1,57,629.09 1,62,936.00
Less: GST Recovered 18,491.97 16,576.10 60.16 88.34 - - 18,552.13 16,664.44
Revenue from
1,33,863.78 1,32,145.28 5,213.18 14,126.28 - - 1,39,076.96 1,46,271.56
Operations (Net of GST)
2 Segment Result before
6,545.08 8,135.83 47.79 124.17 636.67 2.75 7,229.54 8,262.75
Interest and Taxes
Less: Interest Expense 522.41 950.57 - - - - 522.41 950.57
Add: Interest Income 26.53 17.56 0.34 0.11 696.77 11.16 723.64 28.83
Profit Before Tax 6,049.20 7,202.82 48.13 124.28 1,333.44 13.91 7,430.77 7,341.01
Current Tax 1,651.81 1,010.74 13.24 32.47 144.41 - 1,809.46 1,043.21
Tax expense of earlier year - (2.93) - - - - - (2.93)
Deferred Tax (47.87) 856.17 2.98 (3.41) 184.91 - 140.02 852.76
Profit after Tax (before adjustment
4,445.26 5,338.84 31.91 95.22 1,004.12 13.91 5,481.29 5,447.97
for Non Controlling Interest)
Add: Share of (Profit)/
Loss transferred to Non 61.78 35.32 - - - - 61.78 35.32
Controlling Interest
Profit after Tax (after adjustment for
4,507.04 5,374.16 31.91 95.22 1,004.12 13.91 5,543.07 5,483.29
Non Controlling Interest)
3 Other Information
Segment Assets 60,566.86 38,492.84 170.79 654.15 42,964.98 482.77 1,03,702.63 39,629.76
Segment Liabilities 1,03,081.12 38,742.13 621.52 887.63 - - 1,03,702.63 39,629.76
Capital Expenditure 10,272.59 8,828.60 9.63 12.70 - - 10,282.22 8,841.30
Depreciation /Amortisation and
1,826.20 1,381.54 9.72 9.26 - - 1,835.92 1,390.80
Depletion Expense

(ii) Inter segment pricing are at Arm’s length basis.

(iii) As per Indian Accounting Standard 108 – Operating Segments, the Company has reported segment
information on consolidated basis including businesses conducted through its subsidiaries.

(iv) The reportable Segments are further described below :

- The organised Retail segment represents trading in goods/ services in various consumption baskets.

- The Petro Retail segment represents trading in Petroleum products.

(v) Secondary Segment Information

` in crore
2020-21 2019-20
1 Segment Revenue – External Turnover
Within India 1,57,372.71 1,62,715.17
Outside India 256.38 220.83
Total 1,57,629.09 1,62,936.00
2 Non-Current Assets
Within India 29,587.50 20,581.44
Outside India 1,798.81 1,685.07
31,386.31 22,266.51

37. The Company has entered into a Composite Scheme of Arrangement with Future Enterprises Limited (FEL) for
transfer of Logistics & Warehousing Undertaking of FEL as a going concern on a slump sale basis to the Company.
The scheme has been discussed and approved by the Board of Director at its meeting held on August 29, 2020 and
is at various stage of approval from regulatory authorities.

120 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

The wholly-owned subsidiary of the Company Reliance Retail and Fashion Lifestyle Limited has entered into a
Composite Scheme of Arrangement with Future Enterprises Limited (FEL) for transfer of Retail and Wholesale
undertaking of FEL as a going concern on a slump sale basis to the Company. The scheme has been discussed and
approved by the Board of Director at its meeting held on August 29, 2020 and is at various stage of approval from
regulatory authorities.

38. The figures of the corresponding year has been regrouped / reclassified wherever necessary, to make them comparable.

th
39. The Consolidated Financial statements were approved for issue by the Board of Directors on 30 April, 2021.

40. Additional Information of Subsidiary/ Joint Ventures as per Schedule III of The Companies Act, 2013.
Net Assets i.e. Total Share in Other Share in Total
Share in Profit
Assets minus Total Comprehensive Comprehensive
or Loss
Liabilities Income Income
Name of Entity
As % of As % of As % of As % of
Amount Amount Amount Amount
Consolidated Consolidated Consolidated Consolidated
` in crore ` in crore ` in crore ` in crore
Net Assets Profit or Loss Profit or Loss Profit or Loss

Holding
Reliance Retail Ventures Limited 80.77 65,849.48 21.81 1,195.60 101.94 (207.55) 18.72 988.05
Subsidiaries
Indian
1 Reliance Retail Limited 31.06 25,322.21 83.68 4,586.86 (0.67) 1.37 86.94 4,588.23
2 Reliance Petro Marketing Limited 0.45 368.66 1.39 76.17 12.56 (25.58) 0.96 50.59
3 Reliance-Grand Optical
Private Limited 0.00 0.01 (0.00) (0.00) - - (0.00) (0.00)

4 Reliance Clothing India

Private Limited (0.08) (68.17) (0.27) (15.00) (0.01) 0.01 (0.28) (14.99)

5 Reliance Brands Limited (0.22) (182.56) (3.85) (211.20) (0.20) 0.40 (3.99) (210.80)
6 Reliance GAS Lifestyle India
Private Limited 0.12 98.64 (0.01) (0.45) (0.02) 0.05 (0.01) (0.40)

7 Genesis Colors Limited 0.08 63.95 (0.39) (21.13) (0.07) 0.14 (0.40) (20.99)
8 Reliance Brands Luxury Fashion
Private Limited (Formerly Genesis 0.20 161.83 (0.02) (1.19) (0.09) 0.19 (0.02) (1.00)
Luxury Fashion Private Limited)
9 Genesis La Mode Private Limited 0.05 42.83 0.06 3.29 (0.03) 0.05 0.06 3.34
10 GLB Body Care Private Limited 0.00 0.33 0.00 0.01 - - 0.00 0.01
11 GLF Lifestyle Brands Private Limited 0.10 83.79 0.05 2.64 (0.00) 0.01 0.05 2.65
12 GML India Fashion Private Limited 0.02 13.05 0.01 0.30 (0.00) 0.01 0.01 0.31
14 Shri Kannan Departmental Store
Private Limited 0.17 140.95 (0.49) (27.02) (0.70) 1.43 (0.48) (25.59)

15 Grab a Grub Services Private Limited 0.04 34.02 0.01 0.58 (0.12) 0.24 0.02 0.82
16 NowFloats Technologies
Private Limited 0.02 16.30 (0.07) (3.89) 0.03 (0.06) (0.07) (3.95)

17 C-Square Info-Solutions
Private Limited 0.04 36.60 0.02 0.86 - - 0.02 0.86

18 Shopsense Retail Technologies

Private Limited 0.11 91.69 (0.00) (0.01) 0.01 (0.01) (0.00) (0.02)

19 Mesindus Ventures Private Limited 0.01 10.96 (0.00) (0.00) - - (0.00) (0.00)
20 Vitalic Health Private Limited 0.04 35.40 (14.65) (803.06) 0.38 (0.77) (15.23) (803.83)
21 Dadha Pharma Distribution
Private Limited 0.01 9.83 0.02 0.89 0.00 (0.00) 0.02 0.89

22 Tresara Health Private Limited (0.03) (20.50) (8.84) (484.43) (0.00) 0.01 (9.18) (484.42)
23 Netmeds Marketplace Limited 0.03 22.61 0.02 1.05 (0.31) 0.63 0.03 1.68
24 Reliance Retail and Fashion
Lifestyle Limited 0.00 0.00 (0.00) (0.01) - - (0.00) (0.01)

25 Reliance Lifestyle Products Private

Limited (Formerly V&B Lifestyle India 0.01 5.39 0.04 2.14 - - 0.04 2.14
Private Limited)
26 Urban Ladder Home Décor Solution
Private Limited 0.01 9.87 (0.29) (15.73) 0.02 (0.04) (0.30) (15.77)

27 Actoserba Active Wholesale

Private Limited 0.11 91.11 (0.76) (41.72) 0.28 (0.57) (0.80) (42.29)

Foreign
1 Reliance Brands Holding UK Limited 1.22 990.60 (0.14) (7.58) - - (0.14) (7.58)
2 Hamleys Global Holdings Limited - - - - - - - -
3 The Hamleys Group Limited - - - - - - - -
4 Hamleys of London Limited (0.19) (156.92) (1.63) (89.44) - - (1.69) (89.44)

Annual Report
2020-21
121
Notes
to the Consolidated Financial Statements for the year ended 31st March, 2021

Net Assets i.e. Total Share in Other Share in Total

Share in Profit
Assets minus Total Comprehensive Comprehensive
or Loss
Liabilities Income Income
Name of Entity
As % of As % of As % of As % of
Amount Amount Amount Amount
Consolidated Consolidated Consolidated Consolidated
` in crore ` in crore ` in crore ` in crore
Net Assets Profit or Loss Profit or Loss Profit or Loss
5 Hamleys (Franchising) Limited 0.18 145.14 0.24 12.97 - - 0.25 12.97
6 Hamleys Asia Limited (0.00) (0.17) (0.00) (0.17) - - (0.00) (0.17)
7 Scrumpalicious Limited - - - - - - - -
8 Luvley Limited - - - - - - - -
9 Hamleys Toys (Ireland) Limited (0.08) (68.38) 0.09 4.76 - - 0.09 4.76
Non Controlling Interest in
all Subsidiaries 0.08 62.29 (1.13) (61.78) (2.52) 5.14 (1.07) (56.64)
Joint Ventures (Investment as per
the Equity Method)
1 Marks and Spencer Reliance India
Private Limited 0.18 149.14 (0.66) (36.11) 0.09 (0.19) (0.69) (36.30)

2 Reliance-GrandVision India Supply

Private Limited 0.01 4.92 (0.00) (0.24) - - (0.00) (0.24)

3 Reliance-Vision Express
Private Limited 0.01 4.83 (0.13) (7.36) (0.12) 0.24 (0.13) (7.12)

4 Diesel Fashion India Reliance

Private Limited 0.02 13.69 (0.03) (1.52) (0.00) 0.01 (0.03) (1.51)

5 Iconix Lifestyle India Private Limited 0.01 7.11 0.07 3.91 - - 0.07 3.91
6 Brooks Brothers India Private Limited 0.02 13.98 (0.01) (0.51) (0.00) 0.01 (0.01) (0.50)
7 Reliance Paul & Shark Fashions
Private Limited 0.01 5.38 (0.01) (0.73) (0.00) 0.00 (0.01) (0.73)

8 Zegna South Asia Private Limited 0.01 6.08 (0.00) (0.20) (0.00) 0.01 (0.00) (0.19)
9 Ryohin-Keikaku Reliance India
Private Limited 0.02 15.76 (0.06) (3.04) (0.01) 0.01 (0.06) (3.03)

10 Reliance Bally India Private Limited 0.01 4.67 0.00 0.22 (0.00) 0.00 0.00 0.22
11 Burberry India Private Limited 0.04 32.79 0.15 8.28 - - 0.16 8.28
12 Canali India Private Limited 0.03 22.77 0.02 1.23 (0.01) 0.01 0.02 1.24
13 TCO Reliance India Private Limited 0.02 12.71 (0.00) (0.07) - - (0.00) (0.07)
14 Reliance Sideways Private Limited (0.00) (0.00) (0.00) (0.00) - - (0.00) (0.00)

122 Reliance Retail Ventures Limited

 Annexure A
Annual Report

Salient Features of Financial Statements of Subsidiary/ Associates/ Joint Ventures as per Companies Act, 2013
Part “A”: Subsidiaries

` in crore
Foreign Currencies in Million

The date
Sr. since which Equity Total Profit Provision Profit Other Total % of
Name of Subsidiary Company Reporting Other Total Investments Total Proposed
No. Subsidiary Share Liabilities Before for After Comprehensive Comprehensive Share
Currency Equity# Assets Income Dividend
was Capital Taxation Taxation Taxation Income Income holding^
acquired

1 Reliance Retail Limited 5/12/2013 INR 4,990.42 20,331.79 50,180.29 24,858.08 586.24 1,31,926.89 6,181.56 1,594.70 4,586.86 1.37 4,588.23 0.00 99.94%
2 Reliance Petro Marketing Limited 5/12/2013 INR 0.05 368.61 621.52 252.86 450.34 5,276.48 99.93 23.76 76.17 (25.58) 50.59 0.00 100.00%
3 Reliance-GrandOptical

Private Limited 5/12/2013 INR 0.05 (0.04) 0.06 0.05 - 0.00 (0.00) - (0.00) - (0.00) 0.00 100.00%
4 Reliance Clothing India
Private Limited 5/12/2013 INR 0.05 (68.22) 44.75 112.92 - 15.57 (15.00) - (15.00) 0.01 (14.99) 0.00 100.00%
5 Reliance Brands Limited 7/9/2018 INR 101.08 (283.64) 3,226.69 3,409.25 1,415.70 796.14 (271.39) (60.19) (211.20) 0.40 (210.80) 0.00 80.00%
6 Reliance GAS Lifestyle India

Private Limited 7/9/2018 INR 100.00 (1.36) 123.98 25.34 1.33 36.51 (0.52) (0.07) (0.45) 0.05 (0.40) 0.00 51.00%
7 Genesis Colors Limited 7/9/2018 INR 12.57 51.38 149.13 85.18 52.56 25.69 (21.13) - (21.13) 0.14 (20.99) 0.00 72.73%
8 Reliance Brands Luxury Fashion
Private Limited (Formerly 7/9/2018 INR 17.50 144.33 283.39 121.56 65.90 140.86 (2.29) (1.10) (1.19) 0.19 (1.00) 0.00 99.53%
Genesis Luxury Fashion Private
Limited)
9 Genesis La Mode Private Limited 7/9/2018 INR 12.00 30.83 180.84 138.01 - 122.54 4.82 1.53 3.29 0.05 3.34 0.00 100.00%
10 GLB Body Care Private Limited 7/9/2018 INR 1.57 (1.24) 0.36 0.03 - 0.02 0.01 0.00 0.01 - 0.01 0.00 100.00%
11 GLF Lifestyle Brands

Private Limited 7/9/2018 INR 89.94 (6.15) 126.47 42.68 11.67 66.20 3.59 0.95 2.64 0.01 2.65 0.00 100.00%

MD
12 GML India Fashion Private Limited 7/9/2018 INR 4.99 8.06 68.22 55.17 - 36.75 0.39 0.09 0.30 0.01 0.31 0.00 100.00%
13 Shri Kannan Departmental Store

Private Limited 3/3/2020 INR 8.49 132.45 341.59 200.65 8.04 299.60 (27.02) - (27.02) 1.43 (25.59) 0.00 100.00%
14 Reliance Brands
INR 728.28 262.33 1,131.06 140.45 1,015.27 - (9.38) (1.80) (7.58) - (7.58) 0.00
Holding UK Limited * 26/6/2019
GBP 72.96 26.28 113.31 14.07 101.71 - (0.94) (0.18) (0.76) - (0.76) 0.00 100.00%

BOARD’S
15 Hamleys Global
INR - - - - - - - - - - - 0.00
Holdings Limited *@ 16/7/2019
GBP 100.00%

16 The Hamleys Group Limited *@ INR - - - - - - - - - - - 0.00

16/7/2019 GBP 100.00%
17 Hamleys of London Limited * INR 19.96 (176.88) 1,182.57 1,339.49 - 199.64 (115.49) (26.05) (89.44) - (89.44) 0.00
16/7/2019 GBP 2.00 (17.72) 118.47 134.19 - 20.00 (11.57) (2.61) (8.96) - (8.96) 0.00 100.00%

STATEME
L
FINANCIA
18 Hamleys (Franchising) Limited * INR 0.00 145.14 186.26 41.12 - 55.10 20.66 7.69 12.97 - 12.97 0.00
16/7/2019 GBP 0.00 14.54 18.66 4.12 - 5.52 2.07 0.77 1.30 - 1.30 0.00 100.00%
19 Hamleys Asia Limited * INR 0.00 (0.17) 1.36 1.53 - 4.16 (0.17) - (0.17) - (0.17) 0.00
16/7/2019 HKD 0.00 (0.18) 1.44 1.62 - 4.41 (0.18) - (0.18) - (0.18) 0.00 100.00%
20 Scrumpalicious Limited *@ INR - - - - - - - - - - - 0.00
16/7/2019 GBP 0.00 100.00%
21 Luvley Limited *@ INR - - - - - - - - - - - 0.00

NOTI
16/7/2019
GBP 0.00 100.00%
22 Hamleys Toys (Ireland) Limited * INR 0.00 (68.38) 28.54 96.92 - - 4.76 - 4.76 - 4.76 0.00
16/7/2019 EUR 0.00 (7.62) 3.18 10.80 - - 0.53 - 0.53 - 0.53 0.00 100.00%
12

23 Reliance Retail and Fashion

11/8/2020 INR 0.01 (0.01) 0.01 0.01 - - (0.01) - (0.01) - (0.01) 0.00 100.00%
Lifestyle Limited
24 Mesindus Ventures Private Limited 18/8/2020 INR 0.06 10.90 12.17 1.21 2.15 0.03 (0.00) 0.00 (0.00) - (0.00) 0.00 83.33%
 ` in crore
12

to the Consolidated Financial Statements for the year ended 31st March,
Notes
Foreign Currencies in Million

The date
Sr. since which Equity Total Profit Provision Profit Other Total % of
Name of Subsidiary Company Reporting Other Total Investments Total Proposed
No. Subsidiary Share Liabilities Before for After Comprehensive Comprehensive Share
Currency Equity# Assets Income Dividend
was Capital Taxation Taxation Taxation Income Income holding^
acquired

25 Vitalic Health Private Limited 18/8/2020 INR 16.73 18.67 42.57 7.17 14.00 21.95 (802.23) 0.83 (803.06) (0.77) (803.83) 0.00 65.19%
26 Dadha Pharma Distribution

Private Limited 18/8/2020 INR 0.81 9.02 48.66 38.83 2.50 119.06 1.25 0.36 0.89 (0.00) 0.89 0.00 100.00%
27 Tresara Health Private Limited 18/8/2020 INR 4.12 (24.62) 55.99 76.49 16.30 169.95 (483.25) 1.18 (484.43) 0.01 (484.42) 0.00 100.00%
28 Netmeds Marketplace Limited 18/8/2020 INR 9.29 13.32 88.48 65.87 0.50 151.24 1.05 - 1.05 0.63 1.68 0.00 100.00%
29 Grab a Grub Services

Private Limited 4/9/2020 INR 0.06 33.95 113.25 79.24 0.62 357.63 (0.07) (0.65) 0.58 0.24 0.82 0.00 82.41%
30 NowFloats Technologies
Private Limited 4/9/2020 INR 0.20 16.10 26.37 10.07 9.33 12.48 (3.89) - (3.89) (0.06) (3.95) 0.00 88.33%
31 C-Square Info-Solutions
Private Limited 4/9/2020 INR 1.78 34.82 49.15 12.55 - 15.96 2.01 1.15 0.86 - 0.86 0.00 81.64%
32 Shopsense Retail
Technologies Private Limited 4/9/2020 INR 1.82 89.87 107.23 15.54 - 36.01 (0.29) (0.28) (0.01) (0.01) (0.02) 0.00 86.69%
33 Reliance Lifestyle Products
Private
5/10/2020 INR 17.49 (12.10) 14.17 8.78 - 11.84 2.12 (0.02) 2.14 - 2.14 0.00 100.00%
Limited(Formerly V&B
Lifestyle India Private Limited)
34 Urban Ladder Home Décor 13/11/2020 INR 25.07 (15.20) 140.07 130.20 7.98 120.71 (15.73) - (15.73) (0.04) (15.77) 0.00 99.99%
Solutions Private Limited
35 Actoserba Active 18/2/2021 INR 1.02 90.09 213.42 122.31 - 147.32 (41.72) - (41.72) (0.57) (42.29) 0.00 86.15%
Wholesale Private Limited

As on 31.12.2020: 1GBP = 99.82 INR, 1HKD = 9.425 INR, 1EUR= 89.7375

The above statement also indicates performance and financial position of each of the Subsidiaries.
* Company having 31st December as reporting date.
# Includes Reserves and Surplus.
@ The Company is under liquidation.
^ Representing aggregate % of voting power held by the Company and/or its subsidiaries.

Names of Subsidiaries which are yet to commence operations

Sr.
Name of Company
No.

1 Reliance Retail and Fashion Lifestyle Limited

Reliance Retail Ventures

As per our Report of even date For and on behalf of the Board
For Deloitte Haskins & Sells LLP Dinesh Thapar Mukesh D. Ambani Chairman
Chartered Accountants Chief Financial Officer
Firm Registration No. 117366W/W-100018 Manoj H. Modi
K. Sridhar Akash M. Ambani
Ketan Vora Company Secretary Isha M. Ambani
Partner Pankaj Pawar Directors
Membership No. 100459 V. Subramaniam
Managing Director Adil Zainulbhai
Prof. Dipak C. Jain
Ranjit V. Pandit
Date: April 30, 2021
Notice MD&A BOARD’S REPORT FINANCIAL
STATEMENTS
NOTICE

NOTICE is hereby given that the Fifteenth Annual General

Meeting of the members of Reliance Retail Ventures Limited
SPECIAL BUSINESS
will be held on Wednesday, September 29, 2021 at 11:00 4. To re-appoint Mr. V. Subramaniam as the Managing
a.m. IST through Video Conferencing (“VC”)/ Other Audio- Director and in this regard, to consider and if thought
Visual Means (“OAVM”), to transact the following business: fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution:
ORDINARY BUSINESS
“RESOLVED THAT in accordance with the provisions
1. To consider and adopt (a) the audited financial of Sections 196,197 and 203 read with Schedule V
statement of the Company for the financial year ended and other applicable provisions of the Companies
March Act, 2013 (“the Act”) and the Companies
31, 2021 and the reports of the Board of Directors and (Appointment and Remuneration of Managerial
Auditors thereon; and (b) the audited consolidated Personnel) Rules, 2014 (including any statutory
financial statement of the Company for the financial modification(s) or re- enactment(s) thereof, for the
year ended March 31, 2021 and the report of the time being in force), approval of the members be
Auditors thereon and in this regard, to consider and if and is hereby accorded to re-appoint Mr. V.
thought fit, to pass, with or without modification(s), the Subramaniam (DIN: 00009621) as the Managing
following resolutions as Ordinary Resolutions: Director of the Company, for a period of 5 (five)
years, from the expiry of his present term of office,
(a) “RESOLVED THAT the audited financial statement
i.e. with effect from January 13, 2022, on the terms
of the Company for the financial year ended
and conditions including remuneration as set out in
March 31, 2021 and the reports of the Board of
the Statement annexed to the Notice convening this
Directors and Auditors thereon, as circulated to
Meeting, with liberty to the Board of Directors
the members, be and are hereby considered and
adopted.” (hereinafter referred to as “the Board” which term shall
include the Nomination and Remuneration Committee
(b) “RESOLVED THAT the audited consolidated of the Board) to alter and vary the terms and
financial statement of the Company for the conditions of the said re-appointment and / or
financial year ended March 31, 2021 and the remuneration as it may deem fit subject to the same not
report of the Auditors thereon, as circulated to exceeding the limits specified under Schedule V to the
the members, be and are hereby considered and Act or any statutory modification(s) or re-enactment
adopted.” thereof;

2. To appoint Mr. Manoj H. Modi, who retires by rotation RESOLVED FURTHER THAT the Board be and is
as a Director and in this regard, to consider and if hereby authorised to do all acts and take all such steps
thought fit, to pass, with or without modification(s), the as may be necessary, proper or expedient to give effect
following resolution as an Ordinary Resolution: to this resolution.”

“RESOLVED THAT in accordance with the provisions 5. To approve sale/lease/transfer or otherwise disposing
of Section 152 and other applicable provisions of of logistics infrastructure assets of the Company and
the Companies Act, 2013, Mr. Manoj H. Modi (DIN: in this regard, to consider and if thought fit, to pass,
00056207), who retires by rotation at this meeting be with or without modification(s), the following
and is hereby appointed as a Director of the Company.” resolution as a Special Resolution:

3. To appoint Ms. Isha M. Ambani, who retires by rotation “RESOLVED THAT pursuant to the provisions of
as a Director and in this regard, to consider and if Section 180(1)(a) and other applicable provisions, if
thought fit, to pass, with or without modification(s), the any, of the Companies Act, 2013 (including any
following resolution as an Ordinary Resolution: statutory modification(s) or re-enactment(s) thereof,
for the time being in force) and the provisions of the
“RESOLVED THAT in accordance with the provisions
Memorandum and Articles of Association of the
of Section 152 and other applicable provisions of
Company, approval of the members be and is hereby
the Companies Act, 2013, Ms. Isha M. Ambani (DIN:
accorded to the Board of Directors of the Company
06984175), who retires by rotation at this meeting be
(hereinafter referred to
and is hereby appointed as a Director of the Company.”
as "the Board" which term shall be deemed to include
any Committee constituted by the Board to exercise
its
Annual Report 2020-21 125
Notice

powers including the power conferred by this

Resolution) to sell, lease, transfer or otherwise dispose of
logistics infrastructure assets of the Company, on such
terms
and conditions including consideration thereof, as the
Board may deem fit;

RESOLVED FURTHER THAT the Board be and is

hereby authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect
to this resolution.”

By Order of the Board of Directors

K. Sridhar
Company Secretary

Place: Mumbai
Date : 01-09-
2021

Registered Office:
th
4 Floor, Court House, Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400 002
CIN:
U51909MH2006PLC166166 Tel.
: 022- 35553800
Website: www.relianceretail.com
126 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Notes:

1. Considering the Covid-19 pandemic, the Ministry of

8. All documents referred to in the Notice will also be
Corporate Affairs (“MCA”) has, vide its circular dated
available electronically for inspection without any
May 5, 2020 read together with circulars dated April 8,
fee by the members from the date of circulation of
2020, April 13, 2020 and January 13, 2021 (collectively
this Notice up to the date of AGM. Members
referred to as “MCA Circulars”) permitted convening
seeking to inspect such documents can send an
the Annual General Meeting (“AGM”/ “Meeting”)
email to sridhar. kothandaraman@ril.com.
through Video conferencing (“VC”) or Other Audio-
Visual 9. Members seeking any information with regard to
Means (“OAVM”), without the physical presence of the the accounts or any matter to be placed at the
members at a common venue. In accordance with the AGM, are requested to write to the Company on
MCA Circulars and the provisions of the Companies or before Wednesday, September 22, 2021
Act, 2013 (“the Act”), the AGM of the Company is through e-mail on
being held through VC/OAVM.The deemed venue for sridhar.kothandaraman@ril.com. The same will be replied
the AGM shall be the Registered Office of the by the Company suitably.
Company.
10. Members attending the AGM through VC/ OAVM
2. In compliance with the MCA Circulars, Notice of the shall be reckoned for the purpose of quorum under
AGM along with the Annual Report 2020-21 is being Section 103 of the Act.
sent only through electronic mode to those members
11. In terms of provisions of Section 152 of the Act,
whose email addresses are registered with the
Mr. Manoj H. Modi and Ms. Isha M. Ambani,
Company
Directors, retire by rotation at the Meeting. The
/ Depositories. Members may note that the Notice and Nomination
Annual Report 2020-21 will also be available on the
and Remuneration Committee and the Board of
Company’s website www.relianceretail.com.
Directors of the Company commend their
3. A Statement pursuant to Section 102(1) of the Act, respective re-appointments.
relating to the Special Business to be transacted at
Mr. Manoj H. Modi and Ms. Isha M. Ambani, are
the AGM is annexed hereto.
interested in the Ordinary Resolutions set out at
4. Generally, a member entitled to attend and vote at the Item Nos. 2 and 3 respectively, of the Notice with
Meeting is entitled to appoint a proxy to attend and regard to their re-appointment. Mr. Mukesh D.
vote on a poll instead of himself and the proxy need Ambani and Mr. Akash M. Ambani, being relatives
not be a member of the Company. Since this AGM is of Ms. Isha
being held through VC/OAVM pursuant to the MCA M. Ambani, may be deemed to be interested in the
Circulars, physical attendance of members has been Ordinary Resolution set out at Item No. 3. Save and
dispensed with. Accordingly, the facility for except the above, none of the Directors / Key
appointment of proxies by the members will not be Managerial Personnel of the Company / their relatives
available for the AGM and hence the Proxy Form and are, in any way, concerned or interested, financially or
Attendance Slip are not annexed hereto. otherwise,
in the Ordinary Resolutions set out under Item Nos. 1
5. Since the AGM will be held through VC/OAVM, the to 3 of the Notice.
route map of the venue of the Meeting is not annexed
hereto. 12. Details of Directors retiring by rotation / seeking
appointment / re-appointment at this Meeting are
6. Corporate members intending to authorise their provided in “Annexure I” to the Notice.
representative(s) to attend the Meeting are
requested to send to the Company vide email at 13. Detailed instructions to attend, participate and
sridhar. kothandaraman@ril.com, a certified true vote at the Meeting through VC / OAVM are
copy of provided
the relevant Board Resolution authorising their in “Annexure II”.
representative(s) to attend and vote on their behalf at
14. As per Article 73 of the Articles of Association of the
the meeting, before the commencement of the
Company “All business to be transacted at a general
Meeting.
meeting or at meetings of any class of shareholders of
7. The Register of Directors and Key Managerial the Company shall be decided on a poll.”
Personnel and their shareholding maintained under Accordingly, voting by show of hands would not be
Section 170 available
of the Act, the Register of Contracts or at the Meeting.
Arrangements in which the directors are interested,
maintained under Section 189 of the Act, and the
relevant documents
referred to in the Notice will be available electronically
for inspection by the members during the AGM.
Annual Report 2020-21 127
Notice

15. The Board of Directors of the Company has appointed

17. Members shall cast their vote only by sending their
Mr. Anil Lohia, a Practising Chartered Accountant,
votes by email from their email address which is
Partner, Dayal and Lohia, Chartered Accountants or
registered with the Company to the designated email
failing him Mr. Chandrahas Dayal, a Practising
address of the Scrutinizer i.e. anilglohia@gmail.com.
Chartered Accountant, Partner of Dayal and Lohia,
Chartered Accountants as a scrutinizer to scrutinize 18. In the event a member has not yet registered his/her
the polling process and submit the results of poll. email address, the same may be done by sending an
email to the Company at the designated email address
16. The E-Poll paper will be circulated to the members at of the Company i.e. sridhar.kothandaraman@ril.com.
their registered email id on or before the
commencement of the meeting.

128 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Statement Pursuant to Section 102(1) of the Companies Act, 2013

The following statement sets out all material facts relating

c) General:
to the Special Business mentioned in the accompanying
i. Mr. V. Subramaniam will perform his duties as
Notice:
such with regard to all work of the Company and
will manage and attend to such business and
Item No. 4: carry out the orders and directions given by the
The Board of Directors of the Company (“the Board”), at its Board from time to time.
meeting held on April 30, 2021 has, subject to the approval
ii. Mr. V. Subramaniam shall act in accordance with
of members, re-appointed Mr. V. Subramaniam (DIN:
the Articles of Association of the Company and
00009621) as the Managing Director of the Company, for a
shall abide by the provisions contained in the Act
period of 5 (five) years from the expiry of his present term,
with regard to duties of directors.
i.e. with effect from January 13, 2022, on the terms and
conditions including remuneration as recommended by the iii. The Managing Director shall adhere to
Nomination and Remuneration Committee ("NRC") of the the Company’s Code of Conduct.
Board.
iv. Office of Managing Director may be terminated
It is proposed to seek members’ approval for the re- by the Company or the Managing Director, by
appointment of and remuneration payable to Mr. V. giving the other 3 (three) months’ prior notice in
Subramaniam as the Managing Director of the Company, writing.
in terms of the applicable provisions of the Companies
Mr. V. Subramaniam satisfies all the conditions set out in
Act, 2013 (“the Act”).
Part-I of Schedule V to the Act as also conditions set out
Broad particulars of the terms of re-appointment of, and under Section 196(3) of the Act for being eligible for his
remuneration payable to, Mr. V. Subramaniam are as under: re- appointment. He is not disqualified from being
appointed as Director in terms of Section 164 of the Act.
a) Remuneration:
Mr. V. Subramaniam shall be paid remuneration of The above may be treated as a written memorandum setting
Rs. 5 crore p.a. subject to the provisions of the Act, out the terms of re-appointment of Mr. V. Subramaniam
which includes salary, perquisites and allowances. under Section 190 of the Act.

The perquisites and allowances shall be evaluated, Details of Mr. V. Subramaniam are provided in the
wherever applicable, as per the provisions of Income- “Annexure I” to the Notice, pursuant to the provisions of
tax Act, 1961 or any rules thereunder or any statutory the Secretarial Standard on General Meetings (SS - 2),
modification(s) or re-enactment thereof; in the issued by the Institute of Company Secretaries of India.
absence of any such rules, perquisites and allowances
Mr. V. Subramaniam is interested in the ordinary
shall be evaluated at actual cost.
resolution set out at Item No. 4 of the Notice with regard
The Company’s contribution to provident fund, to his
superannuation or annuity fund, gratuity payable and re-appointment.
encashment of leave, as per the rules of the Company,
Save and except the above, none of the Directors / Key
shall be in addition to the remuneration as above.
Managerial Personnel of the Company / their relatives are,
Increment in salary, perquisities and allowances and in any way, concerned or interested, financially or
remuneration by way of incentive / bonus / otherwise, in the resolution set out at Item No. 4 of the
performance linked incentive, payable to Mr. V. Notice.
Subramaniam, as may be determined by the Board
The Board commends the Ordinary Resolution set out at
and /or the NRC of the Board, shall be in addition to
Item No. 4 of the Notice for approval by the members.
the remuneration as above.

The overall remuneration payable every year to the Item No. 5:

Managing Director by way of salary, perquisities and
The Board of Directors of the Company at its meeting held
allowances, incentive / bonus / performance linked
on July 23, 2021 had approved, subject to approval of the
incentive etc. as may be, shall be within the limits
members, the sale/lease/transfer of logistics infrastructure
specified under section 198 of the Act or any statutory
assets of the Company to a special purpose vehicle which
modification(s) or re-enactment(s) thereof.
would house the logistics infrastructure assets, catering to
b) Reimbursement of Expenses: the requirements of business of the Company, its
Mr. V. Subramaniam shall be entitled to be subsidiaries and associates. The special purpose vehicle is
reimbursed from the Company all the expenses proposed
incurred by him on behalf of the Company. to be owned/controlled by a SEBI registered Infrastructure
Investment Trust, set up by the Company as a ‘sponsor’
under the SEBI (Infrastructure Investment Trusts)
Regulations, 2014.
Annual Report 2020-21 129
Notice

The Company operates a pan-India network of

Accordingly, the approval of the members is sought in
warehouses and delivery locations including smart
terms of the provisions of Section 180(1)(a) of the
delivery points to support the last mile logistics
Companies Act, 2013 with respect to the proposed
infrastructure needs of the Company, its subsidiaries and
sale/lease/transfer or otherwise disposing of the logistics
associates. The logistics infrastructure assets comprise all
infrastructure assets
assets at the network of warehouses and supporting last
of the Company.
mile delivery locations, relating to the inbound (receipt,
put away) and outbound (picking, packing and dispatch) None of the Directors / Key Managerial Personnel of the
of materials and includes various automation Company / their relatives are, in any way, concerned or
technologies used in the warehouses. The smart delivery interested, financially or otherwise, in the special resolution
points include all assets used in these locations for set out at Item No. 5 of the Notice.
receipt, storage and dispatch of merchant and customer
The Board commends the Special Resolution set out at Item
orders. The logistics infrastructure assets cater to
No. 5 of the Notice for approval by the members.
demands on pan India basis for segments such as food &
grocery, fashion and lifestyle, consumer electronics and By Order of the Board of Directors
pharmaceuticals and caters to the requirements of offline
stores of Reliance Retail Limited, online delivery
K. Sridhar
fulfillment
Company Secretary
and supply to kirana and other merchants. The
Place: Mumbai
consideration for the sale/lease/transfer of the said assets
shall be on Date : 01-09-2021

an arm’s length basis, based on the valuation report by a

Registered Office:
registered valuer. th
4 Floor, Court House, Lokmanya Tilak Marg,
The Company proposes to take on lease the logistics Dhobi Talao, Mumbai - 400 002
infrastructure assets from the special purpose vehicle for CIN:
carrying on the aforesaid business. For this purpose the U51909MH2006PLC166166 Tel.
Company proposes to enter into appropriate : 022- 35553800
arrangements/ agreements on an arm’s length basis. Website: www.relianceretail.com
Pursuant to the provisions of Section 180(1)(a) of the
Companies Act, 2013 the Board of Directors shall not,
except with the consent of the members of the Company
by way
of a Special Resolution, sell, lease or otherwise dispose of
the whole or substantially the whole of the undertaking of
the Company or where the Company owns more than one
undertaking, of the whole or substantially the whole of any
of such undertakings.
130 Reliance Retail Ventures Limited
Notice MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Annexure I
Other details of Directors retiring by rotation / seeking appointment / re-appointment at the
Annual General Meeting :

Mr. Manoj H. Modi (DIN:00056207)

Age 64 years

Qualifications Chemical Engineer from the Institute of Chemical Technology, Mumbai.

Experience Detailed profile is annexed herewith.

Terms and conditions of appointment Non-executive Director, liable to retire by

rotation Remuneration drawn in the Company for FY 2020-21 Nil

Remuneration sought to be paid Nil

Date of first appointment on the Board July 16,

2013 Shareholding in the Company as on March 31, 2021 Nil

Relation with any Directors / Key Not related to any Director / Key Managerial
Managerial Personnel of the Company

Number of Meetings of the Board attended Personnel 8

during the FY 2020-21

Directorships of other Boards as on March 31, 2021 • Jio Platforms Limited

• EIH Limited

Chairmanship/Membership of Committees of other

Jio Platforms Limited
Boards as on March 31, 2021
• Audit Committee – Member

• Nomination and Remuneration Committee – Member

• Finance Committee – Member

Ms. Isha M. Ambani (DIN:06984175)

Age 29 years
Qualifications Graduated from Yale University with double major in Psychology and
South Asian Studies and MBA from the Stanford University
Experience Detailed profile is annexed herewith.
Terms and conditions of appointment Non-executive Director, liable to retire by
rotation Remuneration drawn in the Company for FY 2020-21 Nil
Remuneration sought to be paid Nil
Date of first appointment on the Board October 11,
2014 Shareholding in the Company as on March 31, 2021 Nil
Relation with any Directors / Key Daughter of Mr. Mukesh D. Ambani and Sister of Mr. Akash M. Ambani.
Managerial Personnel of the Company Save and except the above, she is not related to any other Directors /
Key Managerial Personnel.
Number of Meetings of the Board attended 8
during the FY 2020-21
Directorships of other Boards as on March 31, 2021 • Reliance Jio Infocomm Limited

• Jio Platforms Limited

• Reliance Foundation Institution of Education and Research

• Reliance Foundation

Chairmanship/ Membership of Committees of other Reliance Jio Infocomm Limited

Boards as on March 31, 2021
• Corporate Social Responsibility Committee – Member

Jio Platforms Limited

• Corporate Social Responsibility Committee – Chairperson

• Finance Committee – Member

Annual Report 2020-21 131

Notice

Mr. V. Subramaniam (DIN:00009621)

Age 55 years

Qualifications Chartered Accountant and Cost Accountant

Experience Detailed profile is annexed herewith.

Terms and conditions of appointment Managing Director,liable to retire by

rotation Remuneration drawn in the Company for FY 2020-21 Nil

Remuneration sought to be paid As per the statement for Item No. 4 of this Notice.

Date of first appointment on the Board January 13,

2017 Shareholding in the Company as on March 31, 2021 Nil

Relation with any Directors / Key Not related to any Director / Key Managerial
Managerial Personnel of the Company

Number of Meetings of the Board attended Personnel 8

during the FY 2020-21

Directorships of other Boards as on March 31, 2021 • Reliance Retail Limited

• Reliance Retail and Fashion Lifestyle Limited

• Reliance Brands Limited

• Genesis Colors Limited

• Reliance Brands Luxury Fashion Private Limited

• Mesindus Ventures Private Limited

Chairmanship/Membership of Committees of other

Reliance Retail Limited
Boards as on March 31, 2021
• Compliance Committee – Chairman

• Risk Management Committee - Member

Reliance Brands Limited

• Audit Committee – Chairman

• Compliance Committee – Chairman

• Nomination and Remuneration Committee – Member

Genesis Colors Limited

• Audit Committee – Chairman

• Nomination and Remuneration Committee – Member

Reliance Brands Luxury Fashion Private Limited

• Audit Committee – Chairman

• Nomination and Remuneration Committee – Member

132 Reliance Retail Ventures Limited
 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Profile of Directors:
Mr. Manoj H. Modi
Mr. Manoj H. Modi (DIN: 00056207) has played an invaluable role in the growth of Reliance Industries Limited. He has
been associated with Reliance for over three decades and has led several initiatives of the Group in this period of time. He
has driven the overall corporate strategy for Reliance and has been instrumental in formulation of strategy and policies,
project planning & implementation and commercial, financial and regulatory matters. Mr. Modi was part of the core team,
which conceived and executed Reliance’s petrochemical project at Hazira and refinery projects at Jamnagar.

Mr. Modi also drove the Group’s first entry into the telecommunications business in 2002. He conceptualized and developed
the strategy for setting up Reliance Infocomm (now Reliance Communications Limited), which was a transformational event
for the telecom industry in India.

He is leading the implementation of a pan India organized retail network spanning multiple formats and supply chain
infrastructure. Today, Reliance Retail is the largest retail player in the Country.

Mr. Modi has been instrumental in the Group’s re-entry into the telecommunications business through Reliance Jio
Infocomm Limited. He is leading the project which involves setting up one of the most complex 4G broadband wireless
services in the world, offering end to end solutions that address the entire value chain across various digital services in key
domains of national interest such as Education, Healthcare, Security, Financial Services, Government-Citizen interfaces and
Entertainment.

Ms. Isha M. Ambani

Ms. Isha M. Ambani (DIN: 06984175) is part of the executive leadership teams at Reliance Retail, Reliance Jio, Reliance
Foundation and Dhirubhai Ambani International School.

She played a pivotal role in conceptualizing and launching Jio in India in 2016.

Ms. Isha M. Ambani leads the online and offline business for Reliance’s retail arm. Under her leadership, retail business has
attained the distinction of being the fastest growing retailer in the world in 2020 rankings and to be the only Indian retailer in
the list of global top 100 retailers.

Ms. Isha M. Ambani is actively involved in spearheading the work done by Reliance Foundation and also leads the diversity
and inclusion programme at Reliance Industries Limited.

Mr. V. Subramaniam
Mr. V. Subramaniam (DIN: 00009621) has over 25 years of experience in the fields of Finance, Taxation, Information
Technology and Business Management. He has served at various leadership positions in industries ranging from consumer
products, petrochemicals, refining to automobiles and retail during his corporate tenure.

Annual Report 2020-21 133

Notice
Annexure II

Members are requested to note the following in accordance with the MCA circulars:

1. Members would have received an email from the Company to participate in the Meeting through video-
conference on your email address registered with the Company.

2. The Meeting through video-conference would be conducted through “Microsoft Teams” which enables two-way
audio and video conference. Members are requested to join the Meeting using the following link:

Join Microsoft Teams meeting

Detailed instructions on installing Microsoft Teams is attached as Annexure III.

3. The link to join the Meeting shall be active from 15 (fifteen) minutes prior to the time of the Meeting.

4. E-mail address of the Company Secretary of the Company, Mr. Sridhar Kothandaraman i.e.
sridhar.kothandaraman@ril.com is designated for correspondences and all other purposes related to the Meeting.

5. For any assistance (including with technology) before or during the Meeting, members may contact the
Company Secretary, Mr. Sridhar Kothandaraman on +91-9967054023.

134 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

Annexure III

1. In case you already have Microsoft Teams installed on your Laptop / Computer / iPad / Mobile Phone, click on
“Join Microsoft Teams Meeting” option from the email. You will connect to the meeting.

2. In case you do not have Microsoft Teams installed on your Laptop / Computer / iPad / Mobile Phone, please
follow the below given procedure.

Option 1
For participating through Windows/Apple powered Laptops / Computer devices:

Open the email invitation using Google Chrome browser


Simply click on “Join Microsoft Teams Meeting” option from the email invitation / your calendar events.


A new Browser window would open. Select “Join on the web instead”. Once you reach to the “Enter Name” prompt, enter
your name and click “Join as a Guest”


You will enter the Meeting. Make sure you start your camera and the microphone may be kept on “Mute” when not speaking.

Option 2
For installing Microsoft Teams on your iPad / apple devices / Android devices:

Click on “Join Microsoft Teams Meeting” from the email invitation/calendar events


System will prompt you to download Microsoft Teams


Download and Install Microsoft Teams. Please do not try to login.


Once installed, click on invitation once again on “Join Microsoft Teams Meeting” from the email invitation/calendar events


You will be prompted to Microsoft Teams application


Click on “Join as a Guest” option


Type your Name and once again click on “Join as a Guest”


You will enter the Meeting. Make sure you start your camera and the microphone may be kept on “Mute” when not speaking.

Annual Report 2020-21 135