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

Audit Committee Chief Financial Officer
Non-Executive Director
Adil Siraj Zainulbhai (Chairman) Dinesh Thapar
Mukesh Dhirubhai Ambani (Chairman)
Manoj Harjivandas Modi
Manoj Harjivandas Modi
Dipak Chand Jain Company Secretary and
Akash Mukesh Ambani Compliance Officer
Ranjit Vasant Pandit
Isha Mukesh Ambani Sridhar Kothandaraman
Pankaj Mohan Pawar
Pankaj Mohan Pawar
Venkatachalam Subramaniam Auditor
Nomination and Remuneration
Deloitte Haskins & Sells LLP
Committee
Independent Director Ranjit Vasant Pandit (Chairman)
Adil Siraj Zainulbhai Registered Office
Manoj Harjivandas Modi
Dipak Chand Jain 4th Floor, Court House,
Adil Siraj Zainulbhai
Ranjit Vasant Pandit Lokmanya Tilak Marg,
Dipak Chand Jain
Dhobi Talao, Mumbai – 400002
Corporate Social Responsibility CIN: U51909MH2006PLC166166
Committee Website : www.relianceretail.com
Adil Siraj Zainulbhai (Chairman) E-mail: [email protected]
Tel : +91 22 35553800
Isha Mukesh Ambani
Dipak Chand Jain
Share Transfer Agent
Finance Committee KFin Technologies Private Limited
Manoj Harjivandas Modi (Chairman) (Formerly Known as Karvy Fintech
Akash Mukesh Ambani Private Limited)
Isha Mukesh Ambani Selenium Tower B, Plot 31-32,
Venkatachalam Subramaniam Gachibowli, Financial District,
Pankaj Mohan Pawar Nanakramguda, Hyderabad - 500 032.

Website : www.kfintech.com
Risk Management Committee
E-Mail : [email protected]
Ranjit Vasant Pandit (Chairman)
Tel. : +91 40 6716 1700
Venkatachalam Subramaniam Toll Free No. : 1800 309 8998
Pankaj Mohan Pawar (From 9:00 a.m. to 6:00p.m.)
Dinesh Thapar Fax : +91 40 6716 1680
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
Registered Loyal
7,000+
Cities
6401 million
Footfalls
Customer Base

Scale

12,711
Retail Stores
33.8 million Sq. ft 2,00,000+
Retail Space Employees

Infrastructure

263
Warehouses
272 million cu. ft. 1.4 million
Of warehousing Route kms
and Distribution space moved per day
Centres

1. FY 2019-20 number being used in view of FY 2020-21 year being disruptive

Management Discussion and Analysis Business Overview

Vision
Performance
To be the most admired and successful retail company in India that Summary
enhances the quality of life of every Indian.
REVENUE
Mission
(` in crore)
• Provide millions of customers with unlimited choice, outstanding
1,62,936
value proposition, superior quality and unmatched experience
1,57,629
across the full spectrum of products and services
• Serve the entire spectrum of Indian society i.e. from households, 1,30,566

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
FY FY FY
transformation and talent development on an unprecedented scale 2019 2020 2021

Strategic Advantages and EBITDA

Competitive Strengths
(` in crore)

9,683 9,789

6,218

India’s only true Deep understanding

national retailer with of India and Bharat,
the widest coverage serving all consumption
baskets

FY FY FY
2019 2020 2021

Unmatched retail Partner to producers,

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

Extensive supply chain Deep technologies and

infrastructure data intelligence at the
core

Best-in-class and Talent and organisation FY FY FY

2019 2020 2021
scalable project to power operations
execution

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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 Customer Design Brands Product Innovation /

and Development Insights Expertise Solutions

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

Widest Reach Efficient Last Mile

Building Supply
Chain Infrastructure State-of-the-art Technology Enabled

Pan-India
Physical Stores Digital Platforms
Network
Expanding
Retail Network

Electronics Grocery Trusted

Empowering Partners
Merchants Fashion Pharmacy

Better
Benefiting Experience
Consumers

• Reliance Retail has set up and • The business is investing in building • T he New Commerce model seeks to
continues to invest in building design state-of-the-art supply chain partner with millions of unorganised
and product development centres infrastructure in India by linking all merchants through an inclusive
to offer relevant, contemporary and major sourcing locations through model of growth while digitally
high quality products to meet the an automated, modular, reliable and enabling and empowering them,
diverse needs of its customers scalable warehousing, logistics and and offering them a compelling
• Reliance Retail’s sourcing ecosystem last mile fulfilment ecosystem value proposition to grow their
works with small producers and • Reliance Retail’s selling ecosystem businesses and earnings. Together, it
manufacturers (SMBs), regional, comprises a vast network of stores will serve millions of households and
national and international brands. and digital commerce platforms to customers across the country
In particular, it supports small serve customers across the length • Reliance Retail provides employment
producers to modernise their and breadth of the country to tens of thousands of people,
operations, minimise inefficiencies bringing joy and pride to their
and reduce leakages families while enabling 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 with Registered loyal customer base

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

EBITDA at an all-time high, Opened 1,456 new stores, taking

driven by business rebound, the total store count to 12,711
cost 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

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

How Reliance Retail is geared up?

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

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STATEMENTS

Performance Update partners to ensure continuity of

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

DISTRIBUTION OF STORES IN INDIA

154 132
North

675 479
North 2,030 East 2,167
East

356 461

West
601

West 1,095 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 8,600+ stores
across 7,000+ towns.

Consumer electronic purchase

often necessitates a ‘touch and feel’
of the product and in many cases
involves demonstration, installation,
maintenance and after sales service.
Reliance Retail operates differentiated
store concepts that are centred
around ‘Service’, ‘Solution’ and
‘Consumer Experience’ personalising
technology for consumers.

The stores house buying guides for

discerning consumers simplifying
product complexities. Guidance
extended by expert store staff makes
shopping journey easier for consumers.

Differentiated Store Concepts for Consumer Electronics

New Age Digital Platforms

https://www.reliancedigital.in/
• Destination consumer • Full-fledged after sales service arm • Reliance Digital’s online shopping
electronics store • India’s first multi-product, multi-brand website and app with presence
• Product experience zones and multi-location service network across 1,340 cities
• 300+ national, international brands • End-to-end product life • Fully integrated omni-
• Differentiated value proposition cycle support channel 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-sales assortment through hyper-
local fulfilment

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Competitive Strengths Key Developments

Steady progress on expansion Range of offerings across

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

Key Highlights
4
Strong relationships with all the
1,100+
Laptops sold every day
4,000+
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
Luxury Reliance
Overview
Brands

Reliance Retail is the Premium

largest fashion retailer in Mid

India with 2,850+ stores AJIO, Project EVE
Marks & Spencer
across 850+ cities.
Economy
Trends, Trends Footwear
Trends Woman, Trends Man, Trends Junior

It operates multiple specialty store

Mass
concepts with an extensive portfolio
New Commerce, Reliance Smart
of own and partner brands catering
Trends Smalltown
to all consumer segments through
value, premium, bridge-to-luxury and
luxury. Reliance Retail controls the Fashion pyramid
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 to • Online fashion and lifestyle destination
• Strong portfolio of own brands premium positioning • Nearly 6 lakh options spanning
• E xtensions to tap residual • Caters to entire wardrobe over 2,500 brands
market opportunities • Curated section AJIO Luxe offers
the best of luxury, bridge to luxury
and premium brands
• Partner to 45+ international brands
• Affordable family footwear store • Global experience within India
• Wide range of own brands • Access to affluent consumers
• India’s most loved furniture brand
• Presence across 20 cities and 11
experience centres
• Destination for fine jewellery
• Range of silver, gold, diamond and • Global category leader in •
bridal jewellery children’s premium toys
• 100% purity, transparency • Presence across 17 countries • Offering Trends assortment through
hyperlocal fulfilment

Mono brand sites

https://www.gasjeans.in https://www.stevemadden.in/ • Offers solutions for every stage
https://www.hamleys.in https://www.superdry.in in a woman’s life
https://www.marksandspencer.in https://www.visionexpress.in/ • Delivering across 1,900+
cities, 65 stores
https://www.mothercare.in

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Competitive Strengths Key Developments

Launched 600+ new stores, Fashion & Lifestyle

New Commerce
highest among any fashion &
lifestyle retailer globally Significant scale up in
1 business across merchant
Apparel and footwear base, brands, sellers
Robust design and sourcing
Augmented omnichannel and product offerings.
capabilities
Strong insights of diverse tastes and capabilities to 500+ cities Geographic coverage
preferences across regions under Trends umbrella extended to 2,265 cities
Buoyant revenue led by higher Jewels
conversion and bill values
Competitive performance
Business recovery driven by backed by impactful
strong in-store execution, activations and launch of
2 freshness and impactful affordable light weight
activation jewellery
Fastest growing store network
100+ stores launched on an average Curating product portfolio Design capability coming
every year for the last 14 years relevant to emerging trends to the fore with launch of
drives category performance collections across the year
Further strengthened Received the ‘Most Admired
own brands portfolio with Emerging Retail Brand of the
continued launch of brands Year’ award at Mapic India
3 Trends assortment now live Retail Awards 2021
Strong own brand portfolio on JioMart with direct from Received ‘The Retailer of
Own brands contribute >75% of Trends store shipment at >3,000 pin the Year’ and ‘Marketing
revenues and >60% of footwear revenues codes Campaign of the Year’
awards at the Business
AJIO
Leader of the Year Awards
Revenue run rate up 4x over
Partner Brands
previous period along with
improvement across customer In luxury and premium
4
and operating metrics brands, digital commerce
Partner of choice for global brands revenues up 3x over last year
Portfolio of over 45+ exclusive
esteemed international brands Engaging customers by
Key highlights
pioneering ‘Distance Selling’

180+ million
and impactful shopping
events
Units of apparel &
footwear sold New Businesses

5 Investing in acquisitions to

Unrivalled integrated
omni-channel play
2.9 million
Kurtas sold per month
strengthen capabilities for
New Commerce and augment
1,000+ stores catering to both instore business portfolio, acquired
and online orders Zivame and Urban Ladder.

Annual Report 2020-21 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
an end-to-end value chain that is • India’s widest footprint hyperlocal
backwardly integrated for fresh foods • Gourmet retail chain grocery delivery platform
which enables product quality, supply • 200+ cities
security and sourcing efficiencies. This • Integrated with stores to offer
has resulted in win-win partnerships seamless customer experience
with producers. • Destination supermarket store
Through its New Commerce initiative, • Serves food and non-food needs
Reliance Retail is linking producers • Everyday low-price strategy;
with small merchants and consumers savings promise
to create a win-win partnership model.
The New Commerce footprint is being
expanded from 33 cities at present,
with investments in supply chain and • Neighbourhood multipurpose store
technology, to make Reliance Retail a • Blending physical and digital
trusted partner for millions of merchants – endless aisle, e-kiosks and
across the country. digital services

Own Brand Portfolio Across Staples, Processed Foods, Home, Beauty and Personal Care

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Competitive Strengths Key Developments

Rapid expansion with 600+ Business continues to

new stores rolled out leverage brand partnerships
for exclusive launches,
Launched and rapidly scaled
events and activations
1 JioMart, India’s largest
Robust value chain hyperlocal platform. It Emerged as a trusted
Pan-India collection, processing and continues to gain traction partner for customers
distribution centres across regions with Tier II and and merchants during the
Tier III cities contributing over lockdown with enhanced
half of the orders safety and hygiene
standards
Strengthened own brands
portfolio with new product Leveraged own supply chain
2 launches across staples, network and worked closely
processed foods, HPC with vendors and producers
Omni-enabled network at scale
Largest network of stores and digital and general merchandise to ensure timely availability
commerce channels categories through the year of products despite
pandemic-led disruptions
JioMart kirana service now
active in 33 cities, launched Snactac Mixed Fruit Jam and
self-onboarding application, Scrubz were ranked #1 in
aiding rapid merchant their respective categories
additions by Consumer Voice
3
magazine in FY 2020-21
Strong own brand portfolio Market-leading performance,
Wide portfolio of own brands across driven by essentials (staples)
staples, consumer products and and processed foods
general merchandise

Key Highlights

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

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.

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STATEMENTS

CASE STUDY CASE STUDY

Diversity and Driving Inclusive

Gender Equality Development Agenda
Gender equality is not just about hiring or To promote inclusive and sustainable
training women at Reliance Retail, but also a growth, Reliance Retail identified a
part of its commitment to empower women. talent pool from the marginalised
Today, women constitute 23% of Reliance sections across rural and urban regions
Retail’s store workforce. However, it has to provide employment at its Fashion &
been observed that women representation Lifestyle stores.
at managerial levels drop significantly due
It has partnered with 24 NGOs such as
to life stage events and other factors.
Unnathi, Leonard Cheshire, APD, Sarthak and
To develop young women leaders and augment Pankh to provide them vocational training,
their career path, Reliance Retail launched WE increase their employability, and also recruit
Women Leaders, a focused intervention for successful candidates post completion of
high-potential women at managerial levels. course modules.
The programme instilled greater confidence and
The business is recruiting around 600
understanding of leadership styles among the
associates every month through these
participants while enhancing their capabilities to
institutions. The programme has so far
take on bigger responsibilities.
provided 7,000 people a career, enabling
Today, women managers run more than 250 social and financial freedom.
Reliance Retail stores, which score higher on

600
several parameters including hygiene 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
Overview: Retail

CASE STUDY
CASE STUDY

Empowering Frontline Ensuring Safety and

Staff to Serve Consumers Well-being of Employees and
During the Pandemic their Families
Reliance Retail’s Learning & Development Reliance Retail understood the impact
(L&D) team deployed various digital tools the pandemic can have on the physical
to deliver multiple training sessions, and mental health of its employees and
including Virtual Instructor Led Training proactively stepped up efforts to ensure
(VILT) workshops, for the frontline staff. their well-being.

To support JioMart hyperlocal solution, two

Physical well-being
vital applications – UROVO and GRAB –
were implemented. Within a month, 7,500 • Hospital tie-ups to ensure proper medical
associates were trained on the UROVO care for employees and their families
application and 5,000 delivery partners • Physical distancing, staggered shifts,
underwent the GRAB training through digital sanitising stations, distribution of
tools like JioMeet/MS Teams. PPE suits, face masks, gloves, face
shields and sanitisers
Reliance Retail also aggressively hired
• Rigorous awareness drive undertaken,
frontline employees. Of the total 65,000+
including extensive safety and hygiene
new hires, 53,000+ were freshers. Training
training for frontline employees and
interventions, induction and role-readiness
service partners
programmes were deployed on a massive
• Awareness campaigns for Emergency care
scale to make them job-ready in the shortest
– REFERs, Jio Health Hub
possible time. It also hired and trained 15,000
• Antibody test administered to over 50,000
delivery partners.
frontline employees
At Reliance resQ, we make sure that each one • Prophylactic medicines provided to
of our service technicians goes through a 144- 43,000+ frontline and supply chain staff
hour in-depth training, followed by rigorous
assessment and certification process. Mental well-being
We have built five fully equipped Regional
Training Labs across the country at all • Rolled out ‘Spring’ – a series of workshops
major cities and are in the process of on positive thinking habits and wellness
building the sixth. • 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 While Reliance Retail has charted
Future-Readying the Business out its growth path to 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 far
Situation Securing Securing supplies
availability for across the and wide, in the near term the
our customers ecosystem business will focus and drive
the following five key strategic
thrusts:
Enhancing Strengthening
safety & Digital Commerce • Develop supply side ecosystem
hygiene and Omnichannel
standards capabilities
and invest in design, product
Future development and sourcing
Readying
Accelerating Developing Own
roll-out of Brands portfolio • Leverage broader India retail
JioMart New in keeping up with opportunity through continued
Commerce emerging trends
store expansion
• Scale up digital platforms
across businesses, led by
Broad-based decisive actions
JioMart
taken to secure and 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

Board’s Report

Reliance Retail Ventures Limited

Board’s Report
2020-21

20 Reliance Retail Ventures Limited

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 to
- - (56.64) (27.81)
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 of
- - (60.44) 22.94
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.

Consequently, the consolidated revenues of the Company
The Board of Directors of the Company has not transferred
have been impacted. RPML has continued to operate its bulk
any amount to the Reserves for the year under review.
Lubricants business and packing and distribution of Liquefied
Petroleum Gas business.
Results of Operations and the state of
Company’s affairs At a consolidated EBITDA of ` 9,789 crore for FY 2020-21
against ` 9,683 crore for the previous year, the business
The Company is the holding company and carries on the
posted an all-time high profit, driven by the gradual rebound
retail business primarily through Reliance Retail Limited and
of revenue streams, judicious cost management initiatives
Reliance Brands Limited along with their subsidiaries and
and boosted by higher investment income.
Joint Ventures (collectively referred to as ‘Reliance Retail’).
The Company delivered a consolidated profit after tax of
During the year, the Company acquired supply chain business
` 5,481 crore against ` 5,448 crore for the previous year.
of Reliance Retail Limited as a ‘going concern’ on ‘slump sale’
basis. The Company operates state of the art supply chain On a standalone basis, the Company delivered Revenue of
infrastructure in India and operates and manages supply ` 2,236 crore against ` 193 crore for the previous year.
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
The thrust on expansion and transformation continued
country affected business operations during the year.
particularly on strengthening omni-channel and digital
Reliance Retail delivered a resilient performance against platform capabilities and scaling up New Commerce.
the backdrop of an unprecedented and challenging
As operating curbs were progressively lifted, new store
operating environment.
openings resumed with 1,456 stores being added taking the
On a consolidated basis, Reliance Retail delivered revenue of total store count to 12,711 stores, covering 33.8 million sq ft.
` 1,57,629 crore against ` 1,62,936 crore for the previous year. at the end of the year.
The revenues were impacted on account of store closures
The business continued to attract and serve millions
(80% stores operational), lower footfalls (65% of last year) and
of customers across the country far and wide. The
operational disruptions through the year.
registered customer base now stands at 156 million, a
During the year, the petro-retail dealership between Reliance growth of 25% Y-o-Y.
Industries Limited (‘RIL’) and the Company’s subsidiary

Annual Report 2020-21 21

Board’s Report

The business launched and rapidly scaled-up JioMart and Operating Framework
built last-mile fulfilment capacity a fresh to enable home
Reliance Retail’s guiding philosophy rests on the tenets of
delivery of essentials across 200 cities.
inclusive growth and building sustainable societal value for
JioMart has since grown to become India’s leading hyperlocal millions of Indians.
delivery platform with more users, more orders, and more
Reliance Retail has set up and continues to invest in building
products with each passing month.
design and product development centers to offer relevant,
The business leveraged the strength of Company’s contemporary and high quality products to meet the diverse
relationships with vendor partners to ensure continuity needs of its customers.
of supplies even through the disruption in the
Reliance Retail’s sourcing ecosystem works with small
broader environment.
producers and manufacturers (SMB’s), regional, national and
In the lockdown period, Reliance Retail established itself as international brands. In particular, it supports small producers
the ‘preferred’ partner to kiranas by ensuring uninterrupted to modernize their operations, minimize inefficiencies and
supply of essential items. reduce leakages.

The business generated >65,000 new jobs even in a year like The business is investing in building state of the art
this, bringing to life its mission to enhance livelihoods, whilst supply chain infrastructure in India by linking all major
enabling positive societal impact not just for its employees sourcing locations through an automated, modular,
but the broader ecosystem within which it operates. reliable and scalable warehousing, logistics and last mile
fulfilment ecosystem.
Reliance Retail invested in acquiring businesses including
leading physical/digital commerce platforms like Netmeds, Reliance Retail’s selling ecosystem comprises a vast network
Urban Ladder and Zivame to augment business portfolio, of stores and digital commerce platforms to serve customers
drive operating efficiencies and strengthen omni across the length and breadth of the country.
channel capabilities.
The New Commerce model seeks to partner with millions of
In what is the largest fund raise in the consumer/retail sector unorganised merchants through an inclusive model of growth
in India, the Company raised ` 47,265 crore for 10.09% stake while digitally enabling and empowering them and offering
from marquee global investors. them a compelling value proposition to grow their businesses
and earnings. Together it will serve millions of households and
Reliance Retail ranked 53rd in the list of Global Powers
customers across the country.
of Retailing and is amongst the fastest growing
retailer in the world*. Reliance Retail provides employment to many tens of
thousands of people bringing joy and pride to their families
*As per Deloitte Global Powers of Retailing 2021
while enabling livelihoods for many others.

Market Overview
Consumer Electronics
India’s retail market is estimated at US$822 billion in FY
Reliance Retail is India’s largest consumer electronics
2019-20 and is expected to grow at a CAGR of 10% over
retailer with an extensive network of 8,600+ stores across
next five years to reach US$1,315 billion by FY 2024-25. The
7,000+ towns. Consumer electronic purchase often
penetration of organised retail market is estimated at 11% in
necessitates a ‘touch and feel’ of the product and in many
FY 2019-20 and is expected to grow to 18% by FY 2024-25.
cases involves demonstration, installation, maintenance and
The organised retail market is estimated at US$88 billion in
after sales service.
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. Reliance Retail operates differentiated store concepts that
The unorganised retail market is poised to grow to over US$1 are centered around ‘Service’, ‘Solution’ and ‘Consumer
trillion over this period, making it amongst the most attractive Experience’ personalising technology for consumers.
consumer sector opportunities across the world.
The stores house buying guides for discerning
consumers simplifying product complexities. Guidance
Business Overview
extended by expert store staff makes shopping journey
Reliance Retail was founded with a view to revolutionise easier for consumers.
retail in India. Today, it is the largest and fastest growing
Key developments during the year:
and most profitable retail company in India with diversified
omni-channel presence through integrated store concepts - Steady progress on expansion with 188
and digital commerce platforms. It is the only Indian retailer to new store openings
feature in the list of ‘Global Powers of Retailing’.
- Activated www.reliancedigital.in, full network of Reliance
As a market leader, Reliance Retail caters to five key Digital stores omni enabled with unmatched delivery
consumption baskets – 1) Consumer Electronics, 2) Fashion & service across 19,000+ pin codes
Lifestyle, 3) Grocery, 4) Pharma Retail and 5) Connectivity.

22 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

- Enabled fulfillment from store inventory with >95% Fashion & Lifestyle New Commerce:
orders delivered within six hours
• Significant scale up in business across merchant base,
- Broad based growth across categories: laptops and brands, sellers and product offerings. Geographic
tablets, high-end televisions, air care and appliances coverage extended to 2,265 cities.

- Impactful festive activations, successful campaign Jewels:

around affordability and new product launches delivered
• Competitive performance backed by impactful
growth well ahead of the market
activations and launch of affordable light
- Growth led by robust performance in Tier II/III towns weight jewellery.

- Range of offerings across categories under the licensed • Design capability coming to the fore with launch of
brands of BPL and Kelvinator were launched and rolled collections across the year.
out across general trade, including a foray into the
• Received the ‘Most Admired Emerging Retail Brand of
electricals category.
the Year’ award at Mapic India Retail Awards 2021.
- Reliance Digital has been recognized as India’s Only
• Received ‘The Retailer of the Year’ and ‘Marketing
Electronics Retailer Superbrand for the second
Campaign of the Year’ awards at the Business Leader of
consecutive year.
the Year Awards.
- Reliance Digital won:
Partner Brands:
o Gold for ‘Digital Marketing Excellence in Social
• In Luxury and Premium Brands, digital commerce
Media’ at Digixx Awards 2020 by Adgully, and
revenues up 3X over last year
o ’Social Media App Effectiveness’ award at Global
• Engaging customers by pioneering ‘Distance Selling’
Customer Engagement Awards 2020 by ACEF
and impactful shopping events

Fashion & Lifestyle New Businesses:

Reliance Retail is the largest fashion retailer in India with • Investing in acquisitions to strengthen capabilities
2,850+ stores across 850+ cities. Reliance Retail operates for New Commerce and augment business portfolio,
multiple specialty store concepts with an extensive portfolio acquired Zivame and Urban Ladder.
of own and partner brands catering to all consumer segments
through value, premium, bridge-to-luxury and luxury. It Grocery
controls the entire fashion value chain through a vertically
Reliance Retail is India’s largest grocery retailer and operates
integrated operating model which generates fresh fashion
multiple store concepts – from neighbourhood stores to
across stores on a regular basis.
destination supermarkets and hyperlocal platform JioMart.
Key developments during the year: These concepts leverage engaging store experience, trained
staff and attractive value proposition to address specific
• Launched 600+ new stores, highest among any fashion
shopping needs of consumers.
& lifestyle retailer globally.
Reliance Retail has developed own brands that provides a
Apparel and footwear:
wide range of quality offerings across various categories such
• Augmented omnichannel capabilities to 500+ cities as staples, food FMCG, home and personal care (HPC), and
under Trends umbrella general merchandise.

• Buoyant revenue led by higher conversion and bill values Over the years, Reliance Retail has made significant
investments in developing an end-to-end value chain that is
• Business recovery driven by strong in-store execution,
backwardly integrated for fresh foods which enables product
freshness and impactful activation
quality, supply security and sourcing efficiencies. This has
• Curating product portfolio relevant to emerging trends resulted in win-win partnerships with producers.
drives category performance
Through its New Commerce initiative, Reliance Retail is linking
• Further strengthened own brands portfolio with producers with small merchants and consumers to create a
continued launch of brands. Own brand contribution in win-win partnership model. The New Commerce footprint is
footwear increases to 60%. being expanded from 33 cities at present, with investments
in supply chain and technology, to make Reliance Retail a
• Trends assortment now live on JioMart with direct from
trusted partner for millions of merchants across the country.
store shipment at >3,000 pin codes
Key developments during the year:
AJIO:
• Rapid expansion with 600+ new stores rolled out
• Revenue run rate up 4x over previous period along with
improvement across customer and operating metrics • Launched and rapidly scaled JioMart, India’s largest

Annual Report 2020-21 23

Board’s Report

hyperlocal platform. It continues to gain traction across Outlook

regions with Tier II and Tier III cities contributing over
Reliance Retail has charted out its growth path to become
half of the orders
a leading top league global retailer. With a view to serving
• Strengthened own brands portfolio with new product and delighting its customers far and wide, in the near term
launches across staples, processed foods, HPC and the business will focus and drive the following five key
general merchandise categories through the year strategic thrusts:

• JioMart kirana service, now active in 33 cities, • Develop supply side ecosystem and invest in design,
launched self-onboarding application, aiding rapid product development and sourcing
merchant additions
• Leverage broader India retail opportunity through
• Market-leading performance, driven by essentials continued store expansion
(staples) and processed foods
• Scale up digital platforms across
• Business continues to leverage brand partnerships for businesses, led by JioMart
exclusive launches, events and activations
• Onboard merchant partners across categories
• Emerged as a trusted partner for customers and and geographies
merchants during the lockdown with enhanced safety
• Build new businesses, segments and own brands
and hygiene standards
To support this, the business will look to establish an
• Leveraged own supply chain network and worked
extensive supply chain network, leverage technology
closely with vendors and producers to ensure timely
backbone and build talent and organisation for a world-class
availability of products despite pandemic-led disruptions
retail enterprise.
• Snactac Mixed Fruit Jam and Scrubz were ranked
#1 in their respective categories by Consumer Voice Dividend
magazine in FY 2020-21
The Board of Directors of the Company has not
recommended any dividend on equity shares for the financial
Pharmacy
year under review.
Reliance Retail forayed into pharmacy retail during FY 2020-
21. It aims to lead the category by pioneering an omnichannel Details of Material changes from the end of
pharma strategy encompassing physical stores, digital financial year
platform Netmeds.com, and partnerships with connected
The outbreak of COVID-19 pandemic, ensuing lockdown
local pharmacies. This integrated and inclusive offering
and operating restrictions imposed across the country has
will enhance accessibility and affordability of medicines for
affected business operations.
Indian customers.
Whilst keeping the service spirit high, the business is strongly
Key developments during the year:
focused on ensuring the safety, health and wellbeing of its
• 114 pharmacies operationalised employees and securing operations.

• Strengthened pharmacy digital platform capabilities Despite the operating constraints, Reliance Retail continued
through acquisition of Netmeds to serve the needs of its customers and merchant partners by
ensuring seamless supply of essentials in these trying times.
Connectivity
Composite Scheme of Arrangement
Reliance Retail works as the master distributor for Jio
connectivity services. The distribution network comprises During the year, the Board of Directors of the Company
8,200+ Jio stores and a vast network of retailers across the approved a scheme of arrangement between Future
country for new customer acquisitions and recharges. Jio Enterprises Limited (FEL), a listed company and the Company
Stores provide customers best in class service of activations, and their respective shareholders and creditors, for the
recharges, devices availability and after sales service. purpose of transfer and vesting of logistics and warehousing
undertaking of FEL to the Company, as a going concern on a
In order to enhance seamless customer recharge and
slump sale basis for lumpsum cash consideration, as set out
activation experience, business has created a unique
in the Composite Scheme of Arrangement.
entrepreneur model by onboarding over 1.6 million Jio
Associates who help customers to remain connected at all Further, in terms of the said Composite Scheme of
points in time. Arrangement, the retail and wholesale undertaking of FEL
shall be transferred to and vested with Reliance Retail and
To keep friends and family safe, business is encouraging
Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary
digitally savvy customers to recharge online on their own and
of the Company, as a going concern on a slump sale basis
stay home, stay safe and stay connected. Business has also
for lumpsum cash consideration, as set out in the Composite
enhanced the technology solution/architecture to improve
Scheme and RRFLL shall subscribe to equity shares and
recharge experience on its online partner platforms.

24 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

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

terms set out in the Composite Scheme.
The Directors state that applicable Secretarial Standards, i.e.,
The Composite Scheme has been filed with the SS-1 and SS-2, relating to ‘Meetings of the Board of Directors’
National Company Law Tribunal, Mumbai bench (NCLT) and ‘General Meetings’, respectively, have been duly followed
seeking directions for convening/dispensing with by the Company.
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 changes
standards read with requirements set out under
took place in the capital structure of the company:
Schedule III to the Act, have been followed and there are
1. Increased its Authorised Share Capital to ` 25,000 Crore no material departures from the same;
comprising 2,000 Crore Equity Shares of ` 10/- each
b) the Directors have selected such accounting policies
and 500 Crore Preference Shares of ` 10/- each.
and applied them consistently and made judgments and
2. Redeemed 80 Crore, 8.5% Non-cumulative Optionally estimates that are reasonable and prudent so as to give
Convertible Preference Shares (OCPS) of ` 10/- each a true and fair view of the state of affairs of the Company
at ` 50 per OCPS aggregating to ` 4000 Crore, in as at March 31, 2021 and of the profit of the Company
accordance with the terms of issue of said OCPS out of for the year ended on that date;
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 records
Shares of ` 10 each at a premium of ` 672.25 per share in accordance with the provisions of the Act for
aggregating to ` 58,915 Crore (` 11,650 Crore from safeguarding the assets of the Company and for
Reliance Industries Limited and ` 47,265 Crore from preventing and detecting fraud and other irregularities;
financial investors) on private placement basis.
d) the Directors have prepared the annual accounts on a
‘going concern’ basis; and
Subsidiaries, Joint Ventures and Associate
Companies e) the Directors have devised proper systems to ensure
compliance with the provisions of all applicable
During the year under review, Vitalic Health Private Limited,
laws and that such systems are adequate and
Netmeds Marketplace Limited, Dadha Pharma Distribution
operating effectively.
Private Limited, Tresara Health Private Limited, Mesindus
Ventures Private Limited, Reliance Retail and Fashion
Contracts or arrangements with Related
Lifestyle Limited, Grab a Grub Services Private Limited,
Parties
Shopsense Retail Technologies Private Limited, C-Square
Info-Solutions Private Limited, NowFloats Technologies All contracts / arrangements / transactions entered by the
Private Limited, Urban Ladder Home Décor Solutions Private Company during the financial year with related parties were in
Limited and Actoserba Active Wholesale Private Limited have its ordinary course of business and on an arm’s length basis.
become subsidiaries of the Company. During the financial year, the Company had not entered into
any contract / arrangement / transaction with related parties
Further, during the year Reliance Lifestyle Products Private
which is required to be reported in Form No. AOC-2 in terms
Limited (formerly known as V&B Lifestyle India Private
of Section 134(3)(h) read with Section 188 of the Act and Rule
Limited) ceased to be a joint venture and has become a
8(2) of the Companies (Accounts) Rules, 2014.
subsidiary of the Company.
Members may refer Note 33 to the Standalone Financial
Other than the above, no other company has become or
Statement which sets out related party disclosures
ceased to be subsidiary, joint venture or associate company of
pursuant to Ind AS.
the Company. A statement providing details of performance
and salient features of the financial statements of Subsidiary/
Corporate Social Responsibility (“CSR”)
Associate/ Joint Venture companies, as per Section 129(3) of
the Companies Act, 2013 (“the Act”), is provided as Annexure The Corporate Social Responsibility Committee (“CSR
A to the consolidated financial statement and therefore not Committee”) has formulated and recommended to the
repeated in this report, to avoid duplication. Board, a Corporate Social Responsibility Policy (“CSR Policy”)
indicating the activities to be undertaken by the Company,
Consolidated Financial Statement which has been approved by the Board. The CSR Policy may
be accessed on the Company’s website at the link https://
In accordance with the provisions of the Act and Indian
relianceretail.com/rrvl.html?keyword=Corporate%20
Accounting Standard (“Ind AS”) 110 on Consolidated
Social%20Responsibility%20Policy.pdf. There has been no
Financial Statements, the audited consolidated financial
change in the CSR Policy during the year.
statement forms part of the Annual Report.
Annual Report 2020-21 25
Board’s Report

In terms of the CSR Policy, the focus areas of engagement, Directors and Key Managerial Personnel
inter-alia, shall be rural transformation, affordable healthcare
In accordance with the provisions of the Act and the Articles of
solutions, access to quality education, environmental
Association of the Company, Mr. Manoj H. Modi and Ms. Isha
sustainability, protection of national heritage, art and culture,
M. Ambani, Directors of the Company, retire by rotation at the
disaster response, sports for development and other
ensuing Annual General Meeting. The Board of Directors on
welfare activities.
the recommendation of the Nomination and Remuneration
During the year, the Company has spent ` 8.20 lakhs (2% of Committee (NRC) has recommended their re-appointment.
the average net profits of the three preceding financial years)
The members of the Company at the 14th Annual General
on CSR activities.
Meeting of the Company held on September 24, 2020, had
The Annual Report on CSR activities for the financial year approved by way of special resolution the re-appointment of
2020-21 is annexed herewith and marked as “Annexure I” Mr. Ranjit V. Pandit as Independent Director of the Company
to this Report. to hold office for a second term of 5 (five) consecutive years,
with effect from October 15, 2020.
Risk Management
The Board of Directors on recommendation of the NRC had
The Company has a structured Risk Management Framework re-appointed Mr. V. Subramaniam as Managing Director of
which identifies, manages, monitors and reports both, the the Company for a period of 5 (five) years with effect from
key risks and the newly emerged risks - that can impact January 13, 2022, subject to approval of shareholders, as his
achievement of its strategic objectives. The Company’s current term of office is upto January 12, 2022.
management systems, organizational structure, processes,
The Company has received declarations from all the
standards, code of conduct and behaviours together form
Independent Directors of the Company, confirming that:
the Reliance Management System that governs how the
Company conducts the business and manages associated a) they meet with the criteria of independence as
risks. Reliance’s Risk Management Framework is founded prescribed under the Act; and
on sound organisation design principles and is enabled by
b) they have registered their names in the Independent
effective use of technology.
Directors’ Databank.
The Risk Management Committee of the Company has been
In the opinion of the Board, all the Independent Directors
entrusted with the responsibility to assist the Board in:
of the Company possess requisite expertise, integrity
(a) overseeing and approving the Company’s enterprise and experience.
wide risk management framework; and
The Company has devised, inter alia following policies viz:
(b) ensuring that all material Strategic and Commercial
a) Policy for selection of Directors and determining
Risks, Safety and Operational Risk, Compliance and
Directors independence; and
Control Risks and Financial risks have been identified,
assessed and that adequate risk mitigations are in place, b) Remuneration Policy for Directors, Key Managerial
to address these risks. Personnel and other employees.

The aforesaid policies are available on the Company’s

Internal Financial Controls
website and can be accessed at https://relianceretail.
Internal Financial Controls are an integral part of the com/rrvl.html?keyword=Policy%20for%20selection%20
Group Risk Management framework and processes of%20Director%20and%20Determining%20Director%20
that address financial risks. The key internal financial Independence.pdf and https://relianceretail.com/rrvl.
controls have been documented, automated wherever html?keyword=Remuneration%20Policy%20of%20
possible and embedded in the respective business Director%20KMP%20and%20Other%20Employees.pdf.
processes. Assurance to the Board on the effectiveness
The Policy for selection of Directors and determining
of internal financial controls is obtained through 3 Lines of
Directors’ independence sets out the guiding principles for
Defence which include:
the NRC for identifying persons who are qualified to become
(a) Management reviews and control self-assessment; a Director and to determine the independence of Directors,
in case of their appointment as Independent Directors of
(b) Continuous controls monitoring by
the Company. The Policy also provides for the factors in
functional experts; and
evaluating the suitability of individual Board members with
(c) Independent design and operational testing by the diverse background and experience that are relevant for the
Group Internal Audit function. Company’s operations. There has been no change in this
Policy during the year.
The Company believes that these systems provide
reasonable assurance that Company’s internal The Remuneration Policy for Directors, Key Managerial
financial controls are designed effectively and are Personnel and other employees sets out the guiding
operating as intended. principles for the NRC for recommending to the Board the
remuneration of the Directors, Key Managerial Personnel and

26 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

other employees of the Company. There has been no change III. Corporate Social Responsibility Committee
in this Policy during the year. The CSR Committee comprises Mr. Adil Zainulbhai
(Chairman), Prof. Dipak C. Jain and Ms. Isha M. Ambani.
Performance Evaluation
IV. Nomination and Remuneration Committee
The Company has a policy for performance evaluation The NRC comprises Mr. Ranjit V. Pandit (Chairman),
of the Board, Committees and other individual Directors Mr. Adil Zainulbhai, Prof. Dipak C. Jain and
(including Independent Directors) which include criteria for Mr. Manoj H. Modi.
performance evaluation of Non-executive Directors and
V. Vigil Mechanism
Executive Directors.
The Company has established a robust Vigil Mechanism
The annual performance evaluation of the Board, its and a Whistle Blower Policy. The Vigil Mechanism is
Committees and Individual Directors was conducted in supervised by an ‘Ethics & Compliance Task Force’
accordance with the manner specified by the NRC. The comprising senior executives of the Company. Ethics &
Independent Directors carried out annual performance Compliance Task Force meets periodically to review the
evaluation of the Chairperson, the non-independent directors complaints and incidents and reports them to the Audit
and the Board as a whole. The Chairman of the respective Committee. Protected disclosures can be made by a
Committees shared the report on evaluation with the whistle blower through an e-mail or dedicated telephone
respective Committee members. line or a letter to the Ethics & Compliance Task Force or
to the Chairman of the Audit Committee.
The performance of each Committee was evaluated by
the Board, based on report on evaluation received by it The Vigil Mechanism and Whistle Blower Policy may
from respective Committees. A consolidated report on the be accessed on the Company’s website at the link:
performance evaluation was shared with the Chairman of the https://relianceretail.com/rrvl.html?keyword=Vigil%20
Board for his review and giving feedback to each Director. Mechanism%20and%20Whistle%20Blower%20
Policy.pdf
Auditors and Auditors’ Report
VI. Prevention of Sexual Harassment at
Statutory Auditors Workplace
M/s. Deloitte Haskins & Sells LLP, Chartered Accountants (firm As per the requirements of the Sexual Harassment
registration number 117366W/W-100018) were appointed of Women at Workplace (Prevention, Prohibition
as Auditors of the Company, for a term of 5 (five) consecutive & Redressal) Act, 2013 (“POSH Act”) and rules
years at the Annual General Meeting held on September made thereunder, the Company has formed Internal
24, 2020. The Auditors have confirmed that they are not Committee at its operational locations to address
disqualified from continuing as Auditors of the Company. complaints against sexual harassment in accordance
with the POSH Act. The Company has in place Anti-
The Notes on financial statement referred to in the Auditors’
Sexual Harassment Policy which ensures a free and fair
Report are self-explanatory and do not call for any further
enquiry process with clear timelines for resolution. To
comments. The Auditors’ Report does not contain any
build awareness in this area, the Company has been
qualification, reservation, adverse remark or disclaimer.
conducting online programme on a continuous basis.
Secretarial Auditor Further, there were no cases/ complaints filed during the
The Board had appointed M/s. S.N. Ananthasubramanian & financial year under review.
Co, Company Secretaries, to conduct Secretarial Audit for
VII. Particulars of Loans given, Investments made,
the financial year 2020-21. The Secretarial Audit Report for
Guarantees given and Securities provided
the financial year ended March 31, 2021 is annexed herewith

Particulars of loans given, investments made,
and marked as “Annexure II“ to this Report. The Secretarial
guarantees given and securities provided along with the
Audit Report does not contain any qualification, reservation,
purpose for which the loan or guarantee or security is
adverse remark or disclaimer.
proposed to be utilized by the recipient are provided in
the financial statement (Please refer to Note 34 to the
Disclosures:
standalone financial statement).
I. Meetings of the Board
Eight meetings of the Board of Directors were held Conservation of Energy, Technology
during the financial year 2020-21. Absorption and Foreign Exchange Earnings
and Outgo
II. Audit Committee
The Audit Committee comprises Mr. Adil Zainulbhai A. Conservation of Energy:
(Chairman), Prof. Dipak C. Jain, Mr. Manoj H. Modi, i) Steps taken or impact on conservation of
Mr. Ranjit V. Pandit and Mr. Pankaj Pawar. During the energy:
year, all the recommendations made by the Audit The Company is not engaged in any manufacturing
Committee were accepted by the Board. or processing activity.

Annual Report 2020-21 27

Board’s Report

Notwithstanding this, the Company recognizes the General

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

(iv) Expenditure incurred on research and Acknowledgement

development
The Board of Directors wish to place on record its deep
Nil
sense of appreciation for the committed services by all
C. Foreign Exchange Earnings and Outgo: the employees of the Company. The Board of Directors
Foreign Exchange earned in terms of actual inflows: Nil would also like to express their sincere appreciation
for the assistance and co-operation received from
Foreign Exchange outgo in terms of actual
financial institutions, banks, government and regulatory
outflows: ` 9.07 crore
authorities, customers, vendors and members during the
year under review.
Annual return
The Annual Return of the Company as on March
31, 2021 is available on the Company’s website and For and on behalf of the Board of Directors
can be accessed at https://relianceretail.com/rrvl.
html?keyword=Other%20Annual%20Return%20
Mukesh D. Ambani
2020-21.pdf.
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 Director) 2 2

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 Composition https://relianceretail.com/rrvl.html?keyword=

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

4. Provide the details of Impact assessment of CSR projects carried out in Not Applicable for the current financial year under review
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 registred, Not Applicable
their address etc
d) Provide details of the capital asset(s) created or acquired (including complete address and location of the Not Applicable
capital asset).

11. Specify the reasons(s), if the company has failed to spend two percent of the average net profit as per Not Applicable
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
The Members, rules and regulations made thereunder to the extent of
Reliance Retail Ventures Limited Foreign Direct Investment, Overseas Direct Investment
CIN: U51909MH2006PLC166166 and External Commercial Borrowings : Not Applicable
4th Floor, Court House, to the extent of External Commercial Borrowings
Lokmanya Tilak Marg, and Overseas Direct Investment;
Dhobi Talao, Mumbai- 400002
v. The following Regulations and Guidelines prescribed
We have conducted the Secretarial Audit of the compliance under the Securities and Exchange Board of India
with applicable statutory provisions and the adherence to Act, 1992 (‘SEBI Act’) : are not applicable as the
good corporate practices by Reliance Retail Ventures Securities of the Company are not listed on any
Limited (hereinafter called the “Company”) for the Financial Stock Exchange;
Year ended 31st March, 2021. Secretarial Audit was
a. The Securities and Exchange Board of
conducted in a manner that provided us a reasonable basis
India (Substantial Acquisition of Shares and
for evaluating the corporate conducts/statutory compliances
Takeovers) Regulations, 2011;
and expressing our opinion thereon.
b. The Securities and Exchange Board of India
Based on our verification of the Company’s books, papers,
(Prohibition of Insider Trading) Regulations, 2015;
minute books, forms and returns filed and other records
maintained by the Company and furnished to us through c. The Securities and Exchange Board of India
access to the Company’s in-house portal and also the (Issue of Capital and Disclosure Requirements)
information provided by the Company, its officers, agents Regulations, 2018;
and authorized representatives during the conduct of
d. The Securities and Exchange Board of India (Share
secretarial audit, we hereby report that in our opinion, the
Based Employee Benefits) Regulations, 2014;
Company has, during the audit period covering the financial
year ended on 31st March 2021, complied with the statutory e. The Securities and Exchange Board of India (Issue
provisions listed hereunder and also that the Company has and Listing of Debt Securities) Regulations, 2008;
proper Board-processes and compliance-mechanism in
f. The Securities and Exchange Board of India
place to the extent, in the manner and subject to the reporting
(Registrars to an Issue and Share Transfer Agents)
made hereinafter:
Regulations, 1993 regarding the Companies Act
We have examined the books, papers, minute books, forms and dealing with client;
and returns filed and other records maintained by the
g. The Securities and Exchange Board of India
Company for the financial year ended on 31st March, 2021
(Delisting of Equity Shares) Regulations, 2009
according to the provisions of:
h. The Securities and Exchange Board of India
i. The Companies Act, 2013 (‘the Act’) and the rules
(Buyback of Securities) Regulations, 2018.
made thereunder;
i. Securities and Exchange Board of India (Listing
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
Obligations and Disclosure Requirements)
and the rules made thereunder-
Regulations, 2015
iii. The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;

32 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

vi. Framework for Listing of Commercial Papers issued We further report that based on review of compliance
by Securities and Exchange Board of India including mechanism established by the Company and on the basis
amendments thereto of the Compliance Certificate(s) issued by the Company
Secretary based on the certificates issued by functional
The Management of the Company has confirmed
heads and taken on record by the Board of Directors at their
that there are no laws identified which are specifically
meeting(s), we are of the opinion that there are adequate
applicable to the Company:
systems and processes in place which commensurate
We have also examined compliance with the applicable with size and operations of the Company, to monitor and
Standards/Regulations of the following: ensure compliance with all applicable laws, rules, regulations
and guidelines;
(i) Secretarial Standards with regard to Meeting
of the Board of Directors (SS-1) and General We further report that during the financial year under
Meetings (SS-2) issued by The Institute of Company audit, the following were the event/actions which occurred,
Secretaries of India; having a major bearing on the Company’s affairs in pursuance
of the above referred laws, rules, regulations, guidelines,
(ii) The Listing Agreements entered into by the
standards, etc.
Company with the Stock Exchanges Applicable to
the extent of Commercial Papers listed during • The Company has acquired the supply chain business
the period under review. as a ‘going concern’ on ‘slump sale’ basis as on June
30, 2020, from Reliance Retail Limited, a subsidiary
During the period under audit, the Company has complied
of the Company;
with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above. • Members of the Company at the Extraordinary General
Meeting held on 25th August 2020:
We further report that: -
▶ passed an Ordinary Resolution and amended
• The Board of Directors of the Company is duly
the Memorandum of Association to Increase its
constituted with proper balance of Executive Directors,
Authorised Share Capital to ` 25,000/- crore;
Non-Executive Directors including a Woman Director
and Independent Directors. No changes in the ▶ passed a Special Resolution and increased
composition of the Board of Directors took place during the limits to make loans, investments and give
the period under audit. guarantees upto ` 60,000/- crore, outstanding at
any point of time;
• Adequate notice is given to all Directors of the schedule
of the Board Meetings (including Committees Meetings) ▶ passed a Special Resolution and increased the
except where consent of directors was received for borrowings limits under Section 180 (1) (c) of the
shorter notice. Agenda and detailed notes on agenda Act, being ` 30,000/- crore and the aggregate
were also sent atleast seven days in advance, except of its paid-up share capital, free reserves and
where consent of directors was received for circulation securities premium..
of the Agenda and notes on Agenda at a shorter notice.
• The Company redeemed 80 crore, 8.5% Optionally
A system exists for seeking and obtaining further
Convertible Preference Shares (OCPS) of ` 10/- each at
information and clarifications on the agenda items
` 50/- per OCPS aggregating to ` 4000/- Crore, as per
before the meeting and for meaningful participation by
the terms of issue of OCPS, on 2nd September 2020.
the directors at the meeting.

• As recorded in the Minutes of Board/Committee

Meetings, all decisions of the Board and Committees
thereof were carried out unanimously.

Annual Report 2020-21 33

Board’s Report

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

Annual Report 2020-21 35

 Reliance Retail Ventures Limited
Standalone Financial Statements
2020-21

36 Reliance Retail Ventures Limited

Independent Auditor’s Report
MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
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
responsibilities under those Standards are further described
Opinion
in the Auditor’s Responsibility for the Audit of the Standalone
We have audited the accompanying standalone financial
Financial Statements section of our report. We are
statements of Reliance Retail Ventures Limited (“the
independent of the Company in accordance with the Code
Company”), which comprise the Balance Sheet as at 31 March
of Ethics issued by the Institute of Chartered Accountants
2021, and the Statement of Profit and Loss (including Other
of India (ICAI) together with the ethical requirements
Comprehensive Income), the Cash Flow Statement and the
that are relevant to our audit of the standalone financial
Statement of Changes in Equity for the year then ended,
statements under the provisions of the Act and the Rules
and a summary of significant accounting policies and other
made thereunder, and we have fulfilled our other ethical
explanatory information.
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 evidence
according to the explanations given to us, the aforesaid obtained by us is sufficient and appropriate to provide a basis
standalone financial statements give the information required for our audit opinion on the standalone financial statements.
by the Companies Act, 2013 (“the Act”) in the manner so
Key Audit Matters
required and give a true and fair view in conformity with
Key audit matters are those matters that, in our professional
the Indian Accounting Standards prescribed under Section
judgement, were of most significance in our audit of the
133 of the Act read with the Companies (Indian Accounting
standalone financial statements of the current period. These
Standards) Rules, 2015, as amended, (“Ind AS”) and other
matters were addressed in the context of our audit of the
accounting principles generally accepted in India, of the state
standalone financial statements as a whole, and in forming our
of affairs of the Company as at 31 March 2021, and its profit,
opinion thereon, and we do not provide a separate opinion on
total comprehensive income, its cash flows and the changes
this matter. We have determined the matter described below
in equity for the year ended on that date.
to be the key audit matter to be communicated in our report.
Basis for Opinion
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 • Obtained an understanding of the process followed by the management to identify
aggregating ` 12,443.50 crores as the subsidiaries where impairment indicator exists, the methodology to use and key
at 31 March 2021. Refer Note 2 to 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 impairment
We considered this as a key audit
testing performed by the management.
matter because of the Company’s
• Evaluated management’s assessment of whether there is any indication of impairment
assessment of existence of
of investment in any subsidiary, and the methodology followed by the management
impairment indicators, if any, and
for the impairment assessment of such investment is in compliance with the prevailing
recoverable value of investment
accounting principles.
in subsidiaries having impairment
• Validated impairment models used through testing of the mathematical accuracy and
indicators. This assessment
verifying the application of the input assumptions.
involves judgements about the
• Evaluated the competency of the internal expert of the Company and reviewed the
valuation methodology, future
valuation prepared by such expert.
performance of business which
• Evaluated appropriateness of key assumptions included in the cash flow forecast used
includes likely impact on account
in computing recoverable amount of the investment in subsidiary where impairment
of lockdowns due to spread of
indicators were identified, with reference to our understanding of its business and
COVID-19 pandemic and discount
past trends. Review of the factors considered by the Management on the business
rate and growth rate considered
projections on account of lockdowns due to spread of COVID-19 pandemic.
in the net present value of cash
• Performed sensitivity analysis of key assumptions.
flow projections.
• 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

• O
ur opinion on the standalone financial statements does considered material if, individually or in the aggregate, they
not cover the other information and we do not express any could reasonably be expected to influence the economic
form of assurance conclusion thereon. decisions of users taken on the basis of these standalone
financial statements.
• I n connection with our audit of the standalone financial
statements, our responsibility is to read the other As part of an audit in accordance with SAs, we exercise
information, and, in doing so, consider whether the other professional judgement and maintain professional skepticism
information is materially inconsistent with the standalone throughout the audit. We also:
financial statements or our knowledge obtained during
• I dentify and assess the risks of material misstatement of
the course of our audit or otherwise appears to be
the standalone financial statements, whether due to fraud
materially misstated.
or error, design and perform audit procedures responsive
• I f, based on the work we have performed, we conclude that to those risks, and obtain audit evidence that is sufficient
there is a material misstatement of this other information, and appropriate to provide a basis for our opinion. The
we are required to report that fact. We have nothing to risk of not detecting a material misstatement resulting
report in this regard. from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
Management’s Responsibility for the misrepresentations, or the override of internal control.
Standalone Financial Statements
• O
btain an understanding of internal financial control
The Company’s Board of Directors is responsible for the relevant to the audit in order to design audit procedures
matters stated in Section 134(5) of the Act with respect to that are appropriate in the circumstances. Under
the preparation of these standalone financial statements Section 143(3)(i) of the Act, we are also responsible for
that give a true and fair view of the financial position, expressing our opinion on whether the Company has
financial performance including other comprehensive adequate internal financial controls system in place and the
income, cash flows and changes in equity of the Company in operating effectiveness of such controls.
accordance with the Ind AS and other accounting principles
generally accepted in India. This responsibility also includes • E
valuate the appropriateness of accounting policies used
maintenance of adequate accounting records in accordance and the reasonableness of accounting estimates and
with the provisions of the Act for safeguarding the assets of related disclosures made by the management.
the Company and for preventing and detecting frauds and • C
onclude on the appropriateness of management’s use of
other irregularities; selection and application of appropriate the going concern basis of accounting and, based on the
accounting policies; making judgements and estimates that audit evidence obtained, whether a material uncertainty
are reasonable and prudent; and design, implementation exists related to events or conditions that may cast
and maintenance of adequate internal financial controls, significant doubt on the Company’s ability to continue as a
that were operating effectively for ensuring the accuracy going concern. If we conclude that a material uncertainty
and completeness of the accounting records, relevant to exists, we are required to draw attention in our auditor’s
the preparation and presentation of the standalone financial report to the related disclosures in the standalone financial
statement that give a true and fair view and are free from statements or, if such disclosures are inadequate, to
material misstatement, whether due to fraud or error. modify our opinion. Our conclusions are based on the
In preparing the standalone financial statements, audit evidence obtained up to the date of our auditor’s
management is responsible for assessing the Company’s report. However, future events or conditions may cause the
ability to continue as a going concern, disclosing, as Company to cease to continue as a going concern.
applicable, matters related to going concern and using the • E
valuate the overall presentation, structure and content
going concern basis of accounting unless management either of the standalone financial statements, including the
intends to liquidate the Company or to cease operations, or disclosures, and whether the standalone financial
has no realistic alternative but to do so. statements represent the underlying transactions and
Those Board of Directors are also responsible for overseeing events in a manner that achieves fair presentation.
the Company’s financial reporting process. Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
Auditor’s Responsibility for the Audit of the
aggregate, makes it probable that the economic decisions of
Standalone Financial Statements
a reasonably knowledgeable user of the standalone financial
Our objectives are to obtain reasonable assurance about statements may be influenced. We consider quantitative
whether the standalone financial statements as a whole materiality and qualitative factors in (i) planning the scope of
are free from material misstatement, whether due to fraud our audit work and in evaluating the results of our work; and
or error, and to issue an auditor’s report that includes our (ii) to evaluate the effect of any identified misstatements in the
opinion. Reasonable assurance is a high level of assurance, standalone financial statements.
but is not a guarantee that an audit conducted in accordance
We communicate with those charged with governance
with SAs will always detect a material misstatement when it
regarding, among other matters, the planned scope and
exists. Misstatements can arise from fraud or error and are

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 included
any significant deficiencies in internal control that we identify in the Auditor’s Report in accordance with the
during our audit. requirements of Section 197(16) of the Act, as
amended, according to the explanations given
We also provide those charged with governance with a
to us, during the year no remuneration is paid/
statement that we have complied with relevant ethical
payable by the Company to its directors, hence the
requirements regarding independence, and to communicate
provisions of Section 197 of the Act do not apply
with them all relationships and other matters that may
to the Company.
reasonably be thought to bear on our independence, and
where applicable, related safeguards. h) With respect to the other matters to be included
in the Auditor’s Report in accordance with
From the matters communicated with those charged with
Rule 11 of the Companies (Audit and Auditors)
governance, we determine those matters that were of
Rules, 2014, as amended in our opinion and to
most significance in the audit of the standalone financial
the best of our information and according to the
statements of the current period and are therefore the key
explanations given to us:
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure i. The Company does not have any material
about the matter or when, in extremely rare circumstances, pending litigations which would impact its
we determine that a matter should not be communicated in financial position.
our report because the adverse consequences of doing so
ii. The Company did not have any long-term
would reasonably be expected to outweigh the public interest
contracts including derivative contracts
benefits of such communication.
for which there were any material
Report on Other Legal and Regulatory foreseeable losses.
Requirements iii. There were no amounts which were required
1. As required by Section 143(3) of the Act, based on our to be transferred to the Investor Education and
audit, we report that: Protection Fund by the Company.

a) We have sought and obtained all the information 2. As required by the Companies (Auditor’s Report) Order,
and explanations which to the best of our 2016 (“the Order”) issued by the Central Government in
knowledge and belief were necessary for the terms of Section 143(11) of the Act, we give in “Annexure
purposes of our audit. B” a statement on the matters specified in paragraphs 3
and 4 of the Order.
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it For Deloitte Haskins & Sells LLP
appears from our examination of those books. Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
c) The Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Income, the Cash Ketan Vora
Flow Statement and Statement of Changes in Equity (Partner)
dealt with by this Report are in agreement with the (Membership No. 100459)
books of account. (UDIN: 21100459AAAAJX7556)
d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified under Place: Mumbai
Section 133 of the Act. Date: April 30, 2021

e) On the basis of the written representations received

from the directors as on 31 March 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
effectiveness. Our audit of internal financial controls over
Report on the Internal Financial Controls 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 internal
We have audited the internal financial controls over financial control based on the assessed risk. The procedures selected
reporting of Reliance Retail Ventures Limited (“the depend on the auditor’s judgement, including the assessment
Company”) as of 31 March 2021 in conjunction with our audit of the risks of material misstatement of the financial
of the standalone Ind AS financial statements of the Company statements, whether due to fraud or error.
for the year ended on that date. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
Management’s Responsibility for Internal
opinion on the Company’s internal financial controls system
Financial Controls
over financial reporting.
The Company’s management is responsible for establishing
and maintaining internal financial controls based on the Meaning of Internal Financial Controls Over
internal control over financial reporting criteria established Financial Reporting
by the Company considering the essential components A company’s internal financial control over financial reporting
of internal control stated in the Guidance Note on Audit is a process designed to provide reasonable assurance
of Internal Financial Controls Over Financial Reporting regarding the reliability of financial reporting and the
issued by the Institute of Chartered Accountants of India. preparation of financial statements for external purposes in
These responsibilities include the design, implementation accordance with generally accepted accounting principles.
and maintenance of adequate internal financial controls A company’s internal financial control over financial reporting
that were operating effectively for ensuring the orderly includes those policies and procedures that (1) pertain to the
and efficient conduct of its business, including adherence maintenance of records that, in reasonable detail, accurately
to company’s policies, the safeguarding of its assets, the and fairly reflect the transactions and dispositions of the
prevention and detection of frauds and errors, the accuracy assets of the company; (2) provide reasonable assurance that
and completeness of the accounting records, and the timely transactions are recorded as necessary to permit preparation
preparation of reliable financial information, as required under of financial statements in accordance with generally accepted
the Companies Act, 2013. accounting principles, and that receipts and expenditures
of the company are being made only in accordance with
Auditor’s Responsibility
authorisations of management and directors of the company;
Our responsibility is to express an opinion on the Company’s and (3) provide reasonable assurance regarding prevention
internal financial controls over financial reporting of the or timely detection of unauthorised acquisition, use, or
Company based on our audit. We conducted our audit in disposition of the Company’s assets that could have a material
accordance with the Guidance Note on Audit of Internal effect on the financial statements.
Financial Controls Over Financial Reporting (the “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 Because of the inherent limitations of internal financial
applicable to an audit of internal financial controls. Those controls over financial reporting, including the possibility
Standards and the Guidance Note require that we comply of collusion or improper management override of controls,
with ethical requirements and plan and perform the audit to material misstatements due to error or fraud may occur and
obtain reasonable assurance about whether adequate internal not be detected. Also, projections of any evaluation of the
financial controls over financial reporting was established internal financial controls over financial reporting to future
and maintained and if such controls operated effectively in all periods are subject to the risk that the internal financial control
material respects. 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 cess and other material statutory dues applicable to
Legal and Regulatory Requirements’ section of our it to the appropriate authorities.
report of even date)
(b) There were no undisputed amounts payable in
(i) (a) The Company has maintained proper records respect of Provident Fund, Employees’ State
showing full particulars, including quantitative Insurance, Income-tax, Goods and Service Tax,
details and situation of fixed assets. Customs Duty, cess and other material statutory
dues in arrears as at 31 March 2021 for a period
(b) The Company has acquired fixed assets in the
of more than six months from the date they
current year and has not conducted physical
became payable.
verification of fixed assets during the year. The
Company plans to conduct physical verification of (c) There are no dues of Income-tax, Goods and
all the fixed assets in a phased manner over a period Service Tax, Customs Duty, Excise Duty and
of next 3 years. Value Added Tax as on 31 March 2021 on
account of disputes.
(c) The Company does not have any immovable
properties of freehold or leasehold land and (viii) The Company has not taken any loans or borrowings
building and hence reporting under clause (i)(c) of from financial institutions, banks and government or
the Order is not applicable. has not issued any debentures. Hence reporting under
clause (viii) of the Order is not applicable to the Company.
(ii) As explained to us, the Company bought and sold goods
during the year in the normal course of business. The (ix) In our opinion and according to the information and
Company held such inventories for a short period of time explanations given to us, the Company has not raised
prior to their sale and hence, physical verification was not moneys by way of initial public offer or further public
necessitated during such time. In respect of inventories offer (including debt instruments) and the term loans
at the balance sheet date, these are items comprising have been applied by the Company during the year for
stores and spares and not of significant value. the purposes for which they were raised, other than
temporary deployment pending application of proceeds.
(iii) According to the information and explanations
given to us, the Company has not granted any loans, (x) To the best of our knowledge and according to the
secured or unsecured, to companies, firms, Limited information and explanations given to us, no fraud by
Liability Partnerships or other parties covered in the Company and no material fraud on the Company by
the register maintained under Section 189 of the its officers or employees has been noticed or reported
Companies Act, 2013. during the year.

(iv) In our opinion and according to the information and (xi) According to the information and explanations given
explanations given to us, the Company has complied to us, during the year no remuneration is paid/payable
with the provisions of Sections 185 and 186 of the by the Company to its director, hence the provisions of
Companies Act, 2013 in respect of grant of loans, Section 197 of the Companies Act, 2013 do not apply
making investments and providing guarantees and to the Company.
securities, as applicable.
(xii) The Company is not a Nidhi Company and hence
(v) According to the information and explanations given reporting under clause (xii) of the Order is not applicable.
to us, the Company has not accepted any deposit
(xiii) In our opinion and according to the information and
during the year nor has any unclaimed deposits
explanations given to us the Company is in compliance
within the meaning of Sections 73 to 76 or any other
with Section 177 and 188 of the Companies Act, 2013,
relevant provisions of the Companies Act, 2013. Hence
where applicable, for all transactions with the related
reporting under clause (v) of the Order is not applicable
parties and the details of related party transactions
to the Company.
have been disclosed in the financial statements etc. as
(vi) The maintenance of cost records has not been specified required by the applicable accounting standards.
by the Central Government under Section 148(1) of the
(xiv) According to the information and explanations given to
Companies Act, 2013.
us, the Company has made private placement of shares
(vii) According to the information and explanations given to during the year under review.
us, in respect of statutory dues:
In respect of the above issue, we further report that:
(a) The Company has generally been regular in
a) the requirement of Section 42 of the
depositing undisputed statutory dues, including
Companies Act, 2013, as applicable, have been
Provident Fund, Employees’ State Insurance,
complied with; and
Income-tax, Goods and Service Tax, Customs Duty,

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

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

44 Reliance Retail Ventures Limited

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

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 the Changes in equity share Balance at the end of
of the reporting period capital during the year 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 reporting 200.00 650.00 - 800.00 6.23 - 1,656.23
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
income for the year
Balance at the end of reporting - - 18.36 57,973.30 1,201.83 (207.55) 58,985.94
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 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

46 Reliance Retail Ventures Limited

Cash Flow Statement
MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
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 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

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, or
Reliance Retail Ventures Limited (“the Company”) is a
public limited company incorporated in India having its - There is no unconditional right to defer
registered office at 4th Floor, Court House, Lokmanya the settlement of the liability for at least
Tilak Marg, Dhobi Talao, Mumbai – 400 002, India. The twelve months after the reporting period.
Company’s holding Company is Reliance Industries
The Company classifies all other liabilities
Limited. The Company primarily carries on the business
as non-current.
of supply chain and logistics management for retail.
Deferred tax assets and liabilities are classified
B. Significant Accounting Policies as non-current assets and liabilities.
B.1 Basis of Preparation and Presentation (b) Property, Plant and Equipment
The financial statements have been prepared Property, Plant and Equipment are stated at
on the historical cost basis except for following cost, net of recoverable taxes, trade discount
assets and liabilities which have been measured at and rebates less accumulated depreciation
fair value amount: and impairment losses, if any. Such cost
i) Certain Financial Assets and Liabilities, includes purchase price and any cost directly
attributable to bringing the assets to its
ii) Defined Benefit Plans – Plan Assets working condition for its intended use.
The Financial Statements of the Company Subsequent costs are included in the asset’s
have been prepared to comply with the Indian carrying amount or recognised as a separate
Accounting Standards (‘Ind AS’), including the asset, as appropriate, only when it is probable
Rules notified under the relevant provisions of the that future economic benefits associated with
Companies Act, 2013. the item will flow to the entity and the cost can
The Company’s financial statements are presented be measured reliably.
in Indian Rupees (`), which is also its functional Property, Plant and Equipment which are
currency and all values are rounded to the nearest significant to the total cost of that item of
crore (` 00,00,000) except when otherwise stated. Property, Plant and Equipment and having
B.2 Summary of Significant Accounting different useful life are accounted separately.
Policies Other Indirect Expenses incurred relating
(a) Current and Non-Current Classification to project, net of income earned during
The Company presents assets and liabilities the project development stage prior to its
in the Balance Sheet based on Current/Non- intended use, are considered as pre - operative
Current classification. expenses and disclosed under capital
An asset is treated as Current when it is – work in progress.

- Expected to be realised or intended Depreciation on Property, Plant and

to be sold or consumed in normal Equipment is provided on straight-line method
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 twelve amortized over the lower of estimated useful
months after the reporting period, or life or lease period; on assets acquired under
finance lease depreciation is provided over
- Cash or cash equivalent unless restricted the lease term.
from being exchanged or used to settle a
liability for at least twelve months after the The residual values, useful lives and methods
reporting period. of depreciation of Property, Plant and
Equipment are reviewed at each financial year
All other assets are classified as non-current. end and adjusted prospectively, if appropriate.
A liability is current when – Gains or losses arising from derecognition of a
- It is expected to be settled in normal Property, Plant and Equipment are measured
operating cycle; as the difference between the net disposal
proceeds and the carrying amount of the asset
- It is held primarily for the and are recognized in the Statement of Profit
purpose of trading; and Loss when the asset is derecognised.

48 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

(c)
Leases Gains or losses arising from derecognition
The Company, as a lessee, recognizes a right- of an Intangible Asset are measured as the
of-use asset and a lease liability for its leasing difference between the net disposal proceeds
arrangements, if the contract conveys the right and the carrying amount of the asset and are
to control the use of an identified asset. recognized in the Statement of Profit and Loss
when the asset is derecognized.
The contract conveys the right to control the
use of an identified asset, if it involves the use The company’s intangible assets comprises
of an identified asset and the Company has assets with finite useful life which are
substantially all of the economic benefits from amortised on a straight-line basis over the
use of the asset and has right to direct the use period of their expected useful life. The
of the identified asset. The cost of the right- amortisation period and the amortisation
of-use asset shall comprise of the amount of method for Intangible Assets with a finite
the initial measurement of the lease liability useful life are reviewed at each reporting date.
adjusted for any lease payments made at or
(e) Research and Development Expenditure
before the commencement date plus any
Revenue expenditure pertaining to research is
initial direct costs incurred. The right-of-use
charged to the Statement of Profit and Loss.
assets is subsequently measured at cost less
any accumulated depreciation, accumulated Development costs are capitalized as an
impairment losses, if any and adjusted for intangible asset if it can be demonstrated that
any remeasurement of the lease liability. The the project is expected to generate future
right-of-use assets is depreciated using the economic benefits, it is probable that those
straight-line method from the commencement future economic benefits will flow to the entity
date over the shorter of lease term or useful life and the costs of the asset can be measured
of right-of-use asset. reliably, else it is charged to the Statement of
Profit and Loss.
The Company measures the lease liability at
the present value of the lease payments that (f) Cash and Cash Equivalent
are not paid at the commencement date of Cash and cash equivalents comprise of cash
the lease. The lease payments are discounted on hand, cash at banks, short term deposits
using the interest rate implicit in the lease, if and short-term highly liquid investments that
that rate can be readily determined. If that rate are readily convertible to known amounts of
cannot be readily determined, the Company cash and which are subject to an insignificant
uses incremental borrowing rate. risk of changes in value.

For short-term and low value leases, the (g)

Finance Cost
Company recognizes the lease payments as an Borrowing costs include exchange differences
operating expense on a straight-line basis over arising from foreign currency borrowings to
the lease term. the extent they are regarded as an adjustment
to the interest cost. Borrowing costs that
(d)
Intangible Assets
are directly attributable to the acquisition
Intangible Assets are stated at cost of
or construction of qualifying assets are
acquisition net of recoverable taxes, trade
capitalised as part of the cost of such assets.
discount and rebates less accumulated
A qualifying asset is one that necessarily takes
amortisation / depletion and impairment loss, if
substantial period of time to get ready for
any. Such cost includes purchase price and any
its intended use.
cost directly attributable to bringing the asset
to its working condition for the intended use. Interest income earned on the temporary
investment of specific borrowings pending
Subsequent costs are included in the asset’s
their expenditure on qualifying assets is
carrying amount or recognised as a separate
deducted from the borrowing costs eligible for
asset, as appropriate, only when it is probable
capitalisation.
that future economic benefits associated with
the item will flow to the entity and the cost can All other borrowing costs are charged to the
be measured reliably. Statement of Profit and Loss for the period for
which they are incurred.
Other Indirect Expenses incurred relating
to project, net of income earned during the (h)
Inventories
project development stage prior to its intended Items of inventories are measured at
use, are considered as pre-operative expenses lower of cost and net realisable value after
and disclosed under Intangible Assets providing for obsolescence, if any. Cost of
Under Development. inventories comprises of cost of purchase,

Annual Report 2020-21 49

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

cost of conversion and other costs including non-occurrence of one or more uncertain
manufacturing overheads net of recoverable future events not wholly within the control
taxes incurred in bringing them to their of the Company or a present obligation that
respective present location and condition. arises from past events where it is either
not probable that an outflow of resources
Costs of inventories are determined on
embodying economic benefits will be required
weighted average basis.
to settle or a reliable estimate of amount
(i) Impairment of Non-Financial Assets cannot be made.
– Property, Plant and Equipment and
(l) Employee Benefits Expense
Intangible Assets
Short Term Employee Benefits
The Company assesses at each reporting
The undiscounted amount of short term
date as to whether there is any indication
employee benefits expected to be paid
that any Property, Plant and Equipment and
in exchange for the services rendered by
Intangible assets or group of assets, called
employees are recognised as an expense
Cash Generating Units (CGU) may be impaired.
during the period when the employees
If any such indication exists, the recoverable
render the services.
amount of an asset or CGU is estimated
to determine the extent of impairment, if Post-Employment Benefits
any. When it is not possible to estimate the Defined Contribution Plans
recoverable amount of an individual asset, the A defined contribution plan is a post-
Company estimates the recoverable amount of employment benefit plan under which the
the CGU to which the asset belongs. Company pays specified contributions to
a separate entity. The Company makes
An impairment loss is recognised in the
specified monthly contributions towards
Statement of Profit and Loss to the extent,
Provident Fund, Superannuation Fund and
asset’s carrying amount exceeds its
Pension Scheme.
recoverable amount. The recoverable amount
is higher of an asset’s fair value less cost The Company recognizes contribution payable
of disposal and value in use. Value in use is to the provident fund scheme as an expense,
based on the estimated future cash flows, when an employee renders the related service.
discounted to their present value using pre‑tax If the contribution payable to the scheme for
discount rate that reflects current market service received before the balance sheet date
assessments of the time value of money and exceeds the contribution already paid, the
risk specific to the assets. deficit payable to the scheme is recognized
as a liability after deducting the contribution
The impairment loss recognised in prior
already paid. If the contribution already paid
accounting period is reversed if there
exceeds the contribution due for services
has been a change in the estimate of
received before the balance sheet date, then
recoverable amount.
excess is recognized as an asset to the extent
(j) Provisions that the pre-payment will lead to, for example, a
Provisions are recognised when the Company reduction in future payment or a cash refund.
has a present obligation (legal or constructive)
Defined Benefit Plans
as a result of a past event, it is probable that an
The Company pays gratuity to the employees
outflow of resources embodying economic
who have completed five years of service
benefits will be required to settle the obligation
with the Company at the time of resignation/
and a reliable estimate can be made of the
superannuation. The gratuity is paid @15 days
amount of the obligation.
salary for every completed year of service as
If the effect of the time value of money is per the Payment of Gratuity Act, 1972.
material, provisions are discounted using
The gratuity liability amount is contributed to
a current pre-tax rate that reflects, when
the approved gratuity fund formed exclusively
appropriate, the risks specific to the liability.
for gratuity payment to the employees. The
When discounting is used, the increase in
gratuity fund has been approved by respective
the provision due to the passage of time is
Income Tax Authorities.
recognised as a finance cost.
The liability in respect of gratuity and other
(k)
Contingent Liabilities
post-employment benefits is calculated
Disclosure of contingent liability is made
using the Projected Unit Credit Method
when there is a possible obligation arising
and spread over the period during which
from past events, the existence of which
the benefit is expected to be derived from
will be confirmed only by the occurrence or
employees’ services.

50 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

Re-measurement of Defined Benefit Plans in attributable to the acquisition or construction

respect of post-employment are charged to of qualifying assets which are capitalized as
the Other Comprehensive Income. cost of assets.

(m)
Tax Expenses Non-monetary items that are measured in
The tax expenses for the period comprises terms of historical cost in a foreign currency
of current tax and Deferred Income Tax. Tax are recorded using the exchange rates at the
is recognised in Statement of Profit and Loss, date of the transaction. Non-monetary items
except to the extent that it relates to items measured at fair value in a foreign currency are
recognised in the Other Comprehensive translated using the exchange rates at the date
Income or in Equity. In which case, the tax when the fair value was measured. The gain
is also recognised in Other Comprehensive or loss arising on translation of non-monetary
Income or Equity. items measured at fair value is treated in line
with the recognition of the gain or loss on the
i) Current Tax
change in fair value of the item (i.e., translation
Current tax assets and liabilities are
differences on items whose fair value gain or
measured at the amount expected
loss is recognised in Other Comprehensive
to be recovered from or paid to the
Income or Statement of Profit and Loss are also
Income Tax authorities, based on tax
recognised in Other Comprehensive Income or
rates and laws that are enacted at the
Statement of Profit and Loss, respectively).
Balance sheet date.
(o)
Revenue Recognition
ii) Deferred Tax
Revenue from contracts with customers is
Deferred tax is recognised on temporary
recognised when control of the goods or
differences between the carrying
services are transferred to the customer at an
amounts of assets and liabilities in
amount that reflects the consideration entitled
the Financial Statements and the
in exchange for those goods or services. The
corresponding tax bases used in the
Company has generally concluded that it is the
computation of taxable profit.
principal in its revenue arrangement, because
Deferred tax assets are recognised to it typically controls the goods or services
the extent it is probable that taxable before transferring them to the customer.
profit will be available against which the
Generally, control is transfer upon shipment
deductible temporary differences, and
of goods to the customer or when the goods
the carry forward of unused tax losses
is made available to the customer, provided
can be utilized.
transfer of title to the customer occurs and the
Deferred tax liabilities and assets are Company has not retained any significant risks
measured at the tax rates that are of ownership or future obligations with respect
expected to apply in the period in which to the goods shipped.
the liability is settled or the asset realised,
Revenue from rendering of services is
based on tax rates (and tax laws) that have
recognised over time by measuring the
been enacted or substantively enacted
progress towards complete satisfaction
by the end of the reporting period. The
of performance obligations at the
carrying amount of deferred tax liabilities
reporting period.
and assets are reviewed at the end of
each reporting period. Revenue is measured at the amount of
consideration which the company expects
(n) Foreign Currencies Transactions and
to be entitled to in exchange for transferring
Translation
distinct goods or services to a customer as
Transactions in foreign currencies are recorded
specified in the contract, excluding amounts
at the exchange rate prevailing on the date of
collected on behalf of third parties (for example
transaction. Monetary assets and liabilities
taxes and duties collected on behalf of the
denominated in foreign currencies are
government). Consideration is generally due
translated at the functional currency closing
upon satisfaction of performance obligations
rates of exchange at the reporting date.
and a receivable is recognized when it
Exchange differences arising on settlement or becomes unconditional. Generally the credit
translation of monetary items are recognised period does not exceed 90 days for sale of
in Statement of Profit and Loss except to the goods or services as the case may be.
extent of exchange differences which are
In case of discounts, rebates, credits, price
regarded as an adjustment to interest costs on
incentives or similar terms, consideration are
foreign currency borrowings that are directly

Annual Report 2020-21 51

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

determined based on its expected value, which b) 

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

52 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Standalone

E. Impairment of Financial Assets payables maturing within one year

In accordance with Ind AS 109, the from the balance sheet date, the
Company uses “Expected Credit carrying amounts approximate fair
Loss” (ECL) model, for evaluating value due to the short maturity of
impairment of Financial Assets other these instruments.
than those measured at Fair Value
iii)
Derivative Financial Instruments
Through Profit and Loss (FVTPL).
The Company uses various derivative

Expected credit losses are measured financial instruments such as currency
through a loss allowance at an forwards and commodity contracts to
amount equal to: mitigate the risk of changes in exchange
rates and commodity prices. At the
• 
The 12 months expected
inception of a hedge relationship, the
credit losses (expected credit
Company formally designates and
losses that result from those
documents the hedge relationship
default events on the financial
to which the Company wishes to
instrument that are possible
apply hedge accounting and the risk
within 12 months after the
management objective and strategy for
reporting date);
undertaking the hedge. Such derivative
Or financial instruments are initially
recognised at fair value on the date on
• 
Full lifetime expected credit
which a derivative contract is entered into
losses (expected credit losses
and are subsequently measured at fair
that result from all possible
value. Derivatives are carried as Financial
default events over the life of
Assets when the fair value is positive
the financial instrument)
and as Financial Liabilities when the fair

For Trade Receivables the Company value is negative.
applies ‘simplified approach’
Any gains or losses arising from changes
which requires expected lifetime
in the fair value of derivatives are taken
losses to be recognised from initial
directly to Statement of Profit and
recognition of the receivables. The
Loss, except in case where the related
Company uses historical default
underlying is held as inventory, in which
rates to determine impairment loss
case, they are adjusted to the carrying
on the portfolio of trade receivables.
cost of inventory.
At every reporting date these
historical default rates are reviewed iv) 
Derecognition of Financial
and changes in the forward looking Instruments
estimates are analysed. The Company derecognizes a Financial
Asset when the contractual rights to the

For other assets, the Company
cash flows from the Financial Asset expire
uses 12 month ECL to provide for
or it transfers the Financial Asset and the
impairment loss where there is no
transfer qualifies for derecognition under
significant increase in credit risk. If
Ind AS 109. A Financial Liability (or a part
there is significant increase in credit
of a Financial Liability) is derecognized
risk full lifetime ECL is used.
from the Company’s Balance Sheet when
ii) Financial Liabilities the obligation specified in the contract is
A.  Initial Recognition and discharged or cancelled or expires.
Measurement
v) Offsetting
 All Financial Liabilities are
Financial Assets and Financial Liabilities
recognized at fair value and in
are offset and the net amount is
case of borrowings, net of directly
presented in the balance sheet when, and
attributable cost. Fees of recurring
only when, the Company has a legally
nature are directly recognised in
enforceable right to set off the amount
the Statement of Profit and Loss
and it intends, either to settle them on a
as finance cost.
net basis or to realise the asset and settle
B. Subsequent Measurement the liability simultaneously.
 Financial Liabilities are carried at
(q) Non-current assets held for sale
amortized cost using the effective
Non-current assets are classified as held for
interest method. For trade and other
sale if their carrying amount will be recovered

Annual Report 2020-21 53

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

principally through a sale transaction rather is revised if there are significant changes from
than through continuing use and sale is previous estimates.
considered highly probable.
(b) Recoverability of Trade Receivable
A sale is considered as highly probable when Judgements are required in assessing the
decision has been made to sell, assets are recoverability of overdue trade receivables and
available for immediate sale in its present determining whether a provision against those
condition, assets are being actively marketed receivables is required. Factors considered include
and sale has been agreed or is expected to the credit rating of the counterparty, the amount
be concluded within 12 months of the date of and timing of anticipated future payments and any
classification. possible actions that can be taken to mitigate the
risk of non- payment.
Assets and liabilities classified as held for sale
are measured at the lower of their carrying (c) Provisions
amount and fair value less cost of sell and are Provisions and liabilities are recognized in the period
presented separately in the Balance Sheet. when it becomes probable that there will be a future
outflow of funds resulting from past operations
(r) Earnings per share
or events and the amount of cash outflow can be
Basic earnings per share is calculated by
reliably estimated. The timing of recognition and
dividing the net profit after tax by the weighted
quantification of the liability require the application
average number of equity shares outstanding
of judgement to existing facts and circumstances,
during the year adjusted for bonus element
which can be subject to change. The carrying
in equity share. Diluted earnings per share
amounts of provisions and liabilities are reviewed
adjusts the figures used in determination of
regularly and revised to take account of changing
basic earnings per share to take into account
facts and circumstances.
the conversion of all dilutive potential equity
shares. Dilutive potential equity shares are (d) Impairment of Financial and Non-Financial
deemed converted as at the beginning of the Assets
period unless issued at a later date. The impairment provisions for Financial Assets
are based on assumptions about risk of default
C. Critical Accounting Judgements and Key and expected cash loss rates. The Company uses
Sources of Estimation Uncertainty judgement in making these assumptions and
The preparation of the Company’s Financial Statements selecting the inputs to the impairment calculation,
requires management to make judgement, estimates based on Company’s past history, existing market
and assumptions that affect the reported amount conditions as well as forward-looking estimates at
of revenue, expenses, assets and liabilities and the the end of each reporting period.
accompanying disclosures. Uncertainty about these In case of non-financial assets company estimates
assumptions and estimates could result in outcomes that asset’s recoverable amount, which is higher of an
require a material adjustment to the carrying amount of asset’s or Cash Generating Units (CGU’s) fair value
assets or liabilities affected in next financial years. less costs of disposal and its value in use.
(a) Depreciation/ Amortization and Useful In assessing value in use, the estimated future cash
Life of Property, Plant and Equipment/ flows are discounted to their present value using
Intangible Assets pre-tax discount rate that reflects current market
Estimates are involved in determining the cost assessments of the time value of money and the
attributable to bringing the assets to the location risks specific to the asset. In determining fair value
and condition necessary for it to be capable less costs of disposal, recent market transactions
of operating in the manner intended by the are taken into account, if no such transactions
management. Property, Plant and Equipment / can be identified, an appropriate valuation
Intangible Assets are depreciated / amortised model is used.
over their estimated useful life, after taking into
account estimated residual value. Management (e) Recognition of Deferred Tax Assets and
reviews the estimated useful life and residual liabilities
values of the assets annually in order to determine Deferred tax assets and liabilities are recognised
the amount of depreciation / amortisation to be for deductible temporary differences and unused
recorded during any reporting period. The useful tax losses for which there is probability of utilisation
life and residual values are based on the Company’s against the future taxable profit. The Company uses
historical experience with similar assets and take judgement to determine the amount of deferred
into account anticipated technological changes. tax that can be recognised, based upon the likely
The depreciation / amortisation for future periods timing and the level of future taxable profits and
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
the effect of COVID-19 on the recoverability of
(g) Leases
the value of assets as at the end of the year and
The Company evaluated if an arrangement
liquidity position as well as business activities in
qualifies to be a lease as per requirements of Ind
the foreseeable future. Based on the assessment,
AS 116. Identification of lease requires significant
presently there are no significant concerns
judgement. Large portion of the Company’s leases
regarding recoverability of the value of the assets as
are cancellable by both lessor and lessee or are
well as on liquidity and continuity of the business.
arrangements which qualify as variable leases and
The impact of COVID-19 may be different from
hence are not considered for recognition of Right of
that estimated as at the date of approval of
Use Asset and lease liabilities. There are few lease
these financial statements and the Company will
arrangements which are cancellable only at the
continue to monitor any material changes to future
option of the lessee but have not been considered
economic conditions.
for recognition of Right of Use Assets and lease
liabilities on grounds of materiality and exercisability.

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 Flows 62.11 3.34

` 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 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 each
6,863.54 6,000.00
(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)
 he provision for employee benefit includes gratuity, annual leave and vested long service leave entitlement accrued and Compensation Claims
T
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 – Unsecured(i) 8,799.87 -
Total 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)
 he provision for employee benefit includes gratuity, annual leave and vested long service leave entitlement accrued and compensation claims made
T
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 expenses 208.92 -
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 C
 SR 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 Reliance
Retail Limited effective 30th 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 equivalents, Ageing analysis, Credit worthiness Counterparty credit limits and Dealing with
trade receivables, financial highly rated counterparties as a policy.
assets measured at cost.
Liquidity Risk Other liabilities. Ageing analysis, Rolling Managing the outflow of payments towards
cash-flow forecasts liabilities in a timely and scheduled manner.

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*
Below 3-6 6-12 1-3 3-5 Above
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 crore
Key
Sr. Holding Fellow
Nature of transactions Subsidiaries Managerial Others Total
No. company subsidiaries
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 (Net) - 13.27 - - - 13.27
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 Property - - 242.73 - - 242.73
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
i) Loans given by the Company to body corporate as at 31st March 2021 (Refer Note 3.1).

ii) Investments made by the company as at 31st 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.

37. 
The Financial Statements were approved for issue by the Board of Directors on 30th 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 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

Annual Report 2020-21 73

 Reliance Retail Ventures Limited
Consolidated Financial Statements
2020-21

74 Reliance Retail Ventures Limited

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

Sr.
Key Audit Matter Auditor’s Response
No.

1 Goodwill impairment assessment Our audit procedures included the following:

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

Annual Report 2020-21 75

Independent Auditor’s Report

Sr.
Key Audit Matter Auditor’s Response
No.

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

Information Other than the Financial Statements Board of Directors of the companies included in the Group
and Auditor’s Report Thereon and of its  joint ventures are responsible for maintenance
• The Parent’s Board of Directors is responsible for the of adequate accounting records in accordance with the
other information. The other information comprises provisions of the Act for safeguarding the assets of the
the information included in the Directors’ report, but Group and its joint ventures and for preventing and detecting
does not include the consolidated financial statements, frauds and other irregularities; selection and application of
standalone financial statements and our auditor’s appropriate accounting policies; making judgements and
report thereon. estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal
• Our opinion on the consolidated financial statements
financial controls, that were operating effectively for ensuring
does not cover the other information and we do not
the accuracy and completeness of the accounting records,
express any form of assurance conclusion thereon.
relevant to the preparation and presentation of the financial
In connection with our audit of the consolidated financial statements that give a true and fair view and are free from
statements, our responsibility is to read the other information, material misstatement, whether due to fraud or error,
compare with the financial statements of the subsidiaries and which have been used for the purpose of preparation of the
joint ventures audited by the other auditors, to the extent it consolidated financial statements by the Directors of the
relates to these entities and, in doing so, place reliance on the Parent, as aforesaid.
work of the other auditors and consider whether the other
In preparing the consolidated financial statements, the
information is materially inconsistent with the consolidated
respective Board of Directors of the companies included
financial statements or our knowledge obtained during the
in the Group (and of its joint ventures) are responsible for
course of our audit or otherwise appears to be materially
assessing the ability of the respective entities to continue as
misstated. Other information so far as it relates to the
a going concern, disclosing, as applicable, matters related
subsidiaries and joint ventures, is traced from their financial
to going concern and using the going concern basis of
statements audited by the other auditors.
accounting unless the respective Board of Directors either
If based on the work we have performed, we conclude that intends to liquidate their respective entities or to cease
there is a material misstatement of this other information, we operations, or has no realistic alternative but to do so.
are required to report that fact. We have nothing to report
The respective Board of Directors of the companies included
in this regard.
in the Group and of its joint ventures are also responsible for
Management’s Responsibility for the Consolidated overseeing the financial reporting process of the Group and of
Financial Statements its joint ventures.
The Parent’s Board of Directors is responsible for the
Auditor’s Responsibility for the Audit of the
matters stated in Section 134(5) of the Act with respect to
Consolidated Financial Statements
the preparation of these consolidated financial statements
Our objectives are to obtain reasonable assurance about
that give a true and fair view of the consolidated financial
whether the consolidated financial statements as a whole
position, consolidated financial performance including
are free from material misstatement, whether due to fraud
other comprehensive income, consolidated cash flows and
or error and to issue an auditor’s report that includes our
consolidated changes in equity of the Group including its joint
opinion. Reasonable assurance is a high level of assurance
ventures in accordance with the Ind AS and other accounting
but is not a guarantee that an audit conducted in accordance
principles generally accepted in India. The respective
with SAs will always detect a material misstatement when it

76 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

exists. Misstatements can arise from fraud or error and are in the consolidated financial statements, which have
considered material if, individually or in the aggregate, they been audited by the other auditors, such other auditors
could reasonably be expected to influence the economic remain responsible for the direction, supervision and
decisions of users taken on the basis of these consolidated performance of the audits carried out by them. We
financial statements. remain solely responsible for our audit opinion.

As part of an audit in accordance with SAs, we exercise Materiality is the magnitude of misstatements in the
professional judgement and maintain professional skepticism consolidated financial statements that, individually or in
throughout the audit. We also: aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the consolidated financial
• Identify and assess the risks of material misstatement
statements may be influenced. We consider quantitative
of the consolidated financial statements, whether due
materiality and qualitative factors in (i) planning the scope of
to fraud or error, design and perform audit procedures
our audit work and in evaluating the results of our work; and
responsive to those risks, and obtain audit evidence
(ii) to evaluate the effect of any identified misstatements in the
that is sufficient and appropriate to provide a basis
consolidated financial statements.
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for We communicate with those charged with governance of the
one resulting from error, as fraud may involve collusion, Parent and such other entities included in the consolidated
forgery, intentional omissions, misrepresentations, or the financial statements of which we are the independent
override of internal control. auditors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including
• Obtain an understanding of internal financial control
any significant deficiencies in internal control that we identify
relevant to the audit in order to design audit procedures
during our audit.
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible We also provide those charged with governance with a
for expressing our opinion on whether the Parent has statement that we have complied with relevant ethical
adequate internal financial controls system in place and requirements regarding independence, and to communicate
the operating effectiveness of such controls. with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
• Evaluate the appropriateness of accounting policies used
where applicable, related safeguards.
and the reasonableness of accounting estimates and
related disclosures made by the management. From the matters communicated with those charged with
governance, we determine those matters that were of
• Conclude on the appropriateness of management’s use
most significance in the audit of the consolidated financial
of the going concern basis of accounting and, based
statements of the current period and are therefore the key
on the audit evidence obtained, whether a material
audit matters. We describe these matters in our auditor’s
uncertainty exists related to events or conditions that
report unless law or regulation precludes public disclosure
may cast significant doubt on the ability of the Group
about the matter or when, in extremely rare circumstances,
and its joint ventures to continue as a going concern.
we determine that a matter should not be communicated in
If we conclude that a material uncertainty exists, we
our report because the adverse consequences of doing so
are required to draw attention in our auditor’s report
would reasonably be expected to outweigh the public interest
to the related disclosures in the consolidated financial
benefits of such communication.
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the Other Matters
audit evidence obtained up to the date of our auditor’s a) We did not audit the financial statements of 10
report. However, future events or conditions may cause subsidiaries whose financial statements reflect total
the Group and its joint ventures to cease to continue as assets of ` 54,381.54 crores as at 31 March 2021, total
a going concern. revenues of ` 1,37,924.57 crores and net cash inflows
amounting to ` 45.76 crores for the year ended on
• Evaluate the overall presentation, structure and content
that date, as considered in the consolidated financial
of the consolidated financial statements, including the
statements. The consolidated financial statements also
disclosures, and whether the consolidated financial
include the Group’s share of net loss of ` 7.36 crores
statements represent the underlying transactions and
for the year ended 31 March 2021, as considered in the
events in a manner that achieves fair presentation.
consolidated financial statements, in respect of 2 joint
• Obtain sufficient appropriate audit evidence regarding ventures, whose financial statements have not been
the financial information of the entities within the Group audited by us. These financial statements have been
and its joint ventures to express an opinion on the audited by other auditors whose reports have been
consolidated financial statements. We are responsible furnished to us by the Management and our opinion
for the direction, supervision and performance of the on the consolidated financial statements, in so far as
audit of the financial statements of such entities included it relates to the amounts and disclosures included in
in the consolidated financial statements of which we are respect of these subsidiaries and joint ventures, and our
the independent auditors. For the other entities included report in terms of sub section (3) of Section 143 of the

Annual Report 2020-21 77

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 Parent
and joint ventures is based solely on the reports of the and the reports of the statutory auditors of its subsidiary
other auditors. companies and joint venture companies incorporated
in India, none of the directors of the Group companies
b) The consolidated financial statements also include the
and its joint venture companies incorporated in India is
Group’s share of net loss of ` 41.00 crores for the year
disqualified as on 31 March 2021 from being appointed
ended 31 March 2021, as considered in the consolidated
as a director in terms of Section 164(2) of the Act.
financial statements, in respect of 12 joint ventures,
whose financial statements have not been audited f) With respect to the adequacy of the internal
by us. These financial statements are unaudited and financial controls over financial reporting
have been furnished to us by the Management and our and the operating effectiveness of such controls,
opinion on the consolidated financial statements, in so refer to our separate Report in “Annexure A” which is
far as it relates to the amounts and disclosures included based on the auditors’ reports of the Parent, subsidiary
in respect of these subsidiaries, and joint ventures, is companies, and joint venture companies incorporated
based solely on such unaudited financial statements. in India. Our report expresses an unmodified opinion
In our opinion and according to the information and on the adequacy and operating effectiveness
explanations given to us by the Management, these of internal financial controls over financial reporting of
financial statements are not material to the Group. those companies.

Our opinion on the consolidated financial statements above g) With respect to the other matters to be included in the
and our report on Other Legal and Regulatory Requirements Auditor’s Report in accordance with the requirements
below, is not modified in respect of the above matters with of Section 197(16) of the Act, as amended, according
respect to our reliance on the work done and the reports of to the explanations given to us, during the year no
the other auditors and the financial statements certified by remuneration is paid/payable by the Parent to its
the Management. directors, hence the provisions of Section 197 of the
Companies Act, 2013 do not apply to the Parent.
Report on Other Legal and Regulatory
Requirements h) With respect to the other matters to be included
As required by Section 143(3) of the Act, based on our audit in the Auditor’s Report in accordance with
and on the consideration of the reports of the other auditors Rule 11 of the Companies (Audit and Auditors)
on the separate financial statements of the subsidiaries and Rules, 2014, as amended in our opinion and to
joint ventures referred to in the Other Matters section above the best of our information and according to the
we report, to the extent applicable that: explanations given to us:

a) We have sought and obtained all the information and i. The consolidated financial statements disclose the
explanations which to the best of our knowledge and impact of pending litigations on the consolidated
belief were necessary for the purposes of our audit of the financial position of the Group and its joint ventures
aforesaid consolidated financial statements.  as referred to in Note 32 to the consolidated
financial statements.
b) In our opinion, proper books of account as required by
law relating to preparation of the aforesaid consolidated ii. The Group, and its joint ventures did not have any
financial statements have been kept so far as it appears material foreseeable losses on long-term contracts
from our examination of those books, and the reports of including derivative contracts.  
the other auditors.
iii. There were no amounts which were required to be
c) The Consolidated Balance Sheet, the Consolidated transferred to the Investor Education and Protection
Statement of Profit and Loss including Other Fund by the Parent, and its subsidiary companies
Comprehensive Income, the Consolidated Cash Flow and joint venture companies incorporated in India.
Statement and the Consolidated Statement of Changes
For Deloitte Haskins & Sells LLP
in Equity dealt with by this Report are in agreement
Chartered Accountants
with the relevant books of account maintained for
(Firm’s Registration No. 117366W/W-100018)
the purpose of preparation of the consolidated
financial statements. Ketan Vora
(Partner)
d) In our opinion, the aforesaid consolidated financial
(Membership No. 100459)
statements comply with the Ind AS specified under
(UDIN: 21100459AAAAJY6844)
Section 133 of the Act.

e) On the basis of the written representations received Place: Mumbai

from the directors of the Parent as on 31 March 2021 Date: 30 April 2021

78 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

“Annexure A”
To the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other controls system over financial reporting and their operating
Legal and Regulatory Requirements’ section of our effectiveness. Our audit of internal financial controls over
report of even date) financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing
Report on the Internal Financial Controls the risk that a material weakness exists, and testing and
Over Financial Reporting under Clause evaluating the design and operating effectiveness of internal
(i) of sub-section 3 of Section 143 of the control based on the assessed risk. The procedures selected
Companies Act, 2013 (“the Act”) depend on the auditor’s judgement, including the assessment
In conjunction with our audit of the consolidated Ind AS of the risks of material misstatement of the financial
financial statements of the Company as of and for the year statements, whether due to fraud or error.
ended 31 March 2021, we have audited the internal financial We believe that the audit evidence we have obtained
controls over financial reporting of Reliance Retail Ventures and the audit evidence obtained by the other auditors of
Limited (hereinafter referred to as “the Parent”) and its the subsidiary companies and joint ventures, which are
subsidiary companies, and its joint ventures, which are companies incorporated in India, in terms of their reports
companies incorporated in India, as of that date. referred to in the Other Matters paragraph below, is sufficient
and appropriate to provide a basis for our audit opinion on
Management’s Responsibility for Internal
the internal financial controls system over financial reporting
Financial Controls
of the Parent, its subsidiary companies and its joint ventures,
The respective Board of Directors of the Parent, its subsidiary which are companies incorporated in India.
companies and its joint ventures, which are companies
incorporated in India, are responsible for establishing and Meaning of Internal Financial Controls Over
maintaining internal financial controls based on the internal Financial Reporting
control over financial reporting criteria established by the A company’s internal financial control over financial reporting
respective Companies considering the essential components is a process designed to provide reasonable assurance
of internal control stated in the Guidance Note on Audit of regarding the reliability of financial reporting and the
Internal Financial Controls Over Financial Reporting issued by preparation of financial statements for external purposes in
the Institute of Chartered Accountants of India (ICAI). These accordance with generally accepted accounting principles. A
responsibilities include the design, implementation and company’s internal financial control over financial reporting
maintenance of adequate internal financial controls that were includes those policies and procedures that (1) pertain to the
operating effectively for ensuring the orderly and efficient maintenance of records that, in reasonable detail, accurately
conduct of its business, including adherence to the respective and fairly reflect the transactions and dispositions of the
company’s policies, the safeguarding of its assets, the assets of the company; (2) provide reasonable assurance that
prevention and detection of frauds and errors, the accuracy transactions are recorded as necessary to permit preparation
and completeness of the accounting records, and the timely of financial statements in accordance with generally accepted
preparation of reliable financial information, as required under accounting principles, and that receipts and expenditures
the Companies Act, 2013. of the company are being made only in accordance with
authorisations of management and directors of the company;
Auditor’s Responsibility
and (3) provide reasonable assurance regarding prevention
Our responsibility is to express an opinion on the internal or timely detection of unauthorised acquisition, use, or
financial controls over financial reporting of the Parent, disposition of the company’s assets that could have a material
its subsidiary companies and its joint ventures, which are effect on the financial statements.
companies incorporated in India, based on our audit. We
conducted our audit in accordance with the Guidance Inherent Limitations of Internal Financial
Note on Audit of Internal Financial Controls Over Financial Controls Over Financial Reporting
Reporting (the “Guidance Note”) issued by the Institute Because of the inherent limitations of internal financial
of Chartered Accountants of India and the Standards on controls over financial reporting, including the possibility
Auditing, prescribed under Section 143(10) of the Companies of collusion or improper management override of controls,
Act, 2013, to the extent applicable to an audit of internal material misstatements due to error or fraud may occur and
financial controls. Those Standards and the Guidance Note not be detected. Also, projections of any evaluation of the
require that we comply with ethical requirements and plan internal financial controls over financial reporting to future
and perform the audit to obtain reasonable assurance about periods are subject to the risk that the internal financial control
whether adequate internal financial controls over financial over financial reporting may become inadequate because of
reporting was established and maintained and if such controls changes in conditions, or that the degree of compliance with
operated effectively in all material respects. the policies or procedures may deteriorate.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
Annual Report 2020-21 79
Opinion Other matters
In our opinion to the best of our information and according to Our aforesaid report under Section 143(3)(i) of the Act on
the explanations given to us and based on the consideration the adequacy and operating effectiveness of the internal
of the reports of the other auditors referred to in the financial controls over financial reporting insofar as it relates
Other Matters paragraph below, the Parent, its subsidiary to 10 subsidiary companies and 2 joint ventures, which
companies and its joint ventures, which are companies are companies incorporated in India, is based solely on the
incorporated in India, have, in all material respects, an corresponding reports of the auditors of such companies
adequate internal financial controls system over financial incorporated in India.
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 companies
For Deloitte Haskins & Sells LLP
considering the essential components of internal control
Chartered Accountants
stated in the Guidance Note on Audit of Internal Financial
(Firm‘s Registration No. 117366W/W-100018)
Controls Over Financial Reporting issued 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 NOTICE
STATEMENTS
Consolidated
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 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 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

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 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

82 Reliance Retail Ventures Limited

Statement of Changes in Equity
MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
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 the Changes in equity share Balance at the end of the
of the reporting period capital during the year 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
Instruments Classified Other Total
Reserves & Surplus
as Equity Comprehensive
Income
Instrument
Classified as
Equity 8.5%
Particulars
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
0.02 - - - - - 0.02
during the year
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
2,350.02 - - - - - 2,350.02
during the year
Add/(Less): Converted into
Preference share capital and (3,000.04) 600.00 - 2,400.00 - - (0.04)
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 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

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 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

84 Reliance Retail Ventures Limited

Notes
MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated
to the Consolidated Financial Statements for the year ended 31st March, 2021

A. Corporate Information consolidation is recognized in the Foreign

Currency Translation Reserve (FCTR).
The Consolidated Financial Statements comprise
of Financial Statements of “Reliance Retail Ventures (d) The audited / unaudited financial statements
Limited” (“the Holding Company” or “The Company”) of joint ventures / associates have been
and its subsidiaries (collectively referred to as “the prepared in accordance with the Generally
Group”) for the year ended 31st March, 2021. Accepted Accounting Principle / Ind AS.

The principal activity of the Group, its Joint Ventures and (e) The difference in accounting policies of
associates consist of ‘Organised Retail’ primarily catering the Holding Company and its subsidiaries /
to Indian consumers in various consumption baskets joint ventures are not material and there are
and ‘Petro Retail’. Further details about the business no material transactions from 1st January
operations of the Group are provided in Note No. 36 2021 to 31st March 2021 in respect of
Segment Information. subsidiaries having financial year ended
31 December 2020.
B. Significant Accounting Policies
(f) The Consolidated Financial Statements have
B.1 Basis of Preparation and Presentation been prepared using uniform accounting
The Consolidated Financial Statements have been policies for like transactions and other events
prepared on the historical cost basis except for in similar circumstances.
following assets and liabilities which have been
measured at fair value: (g) The carrying amount of the parent’s
investment in each subsidiary is offset
i) Certain Financial Assets and Liabilities (eliminated) against the parent’s portion of
(including derivative instruments), equity in each subsidiary.
ii) Defined Benefit Plans – Plan Assets and (h) The difference between the proceeds from
iii) Equity settled Share Based Payments disposal of investment in subsidiaries and the
carrying amount of its assets less liabilities
The Consolidated Financial Statements of the as on the date of disposal is recognised in
Group have been prepared to comply with the the Consolidated Statement of Profit and
Indian Accounting Standards (‘Ind AS’), including Loss being the profit or loss on disposal of
the Rules notified under the relevant provisions of investment in subsidiary.
the Companies Act, 2013.
(i) Investment in Joint Ventures has been
The Consolidated Financial Statements accounted under the Equity Method as per
comprises of Reliance Retail Ventures Limited Ind AS 28 – Investments in Associates and
and its subsidiaries, being the entities that it Joint Ventures. Investments in joint operations
controls. Control is assessed in accordance with are accounted using the Proportionate
the requirement of Ind AS 110 – Consolidated Consolidation Method as per Ind AS 111 –
Financial Statements. Joint Arrangements.
The Consolidated Financial Statements are (j) The Group accounts for its share of post-
presented in Indian Rupees (`) and all values are acquisition changes in net assets of joint
rounded to the nearest crore (` 00,00,000), except ventures, after eliminating unrealised profits
when otherwise indicated. and losses resulting from transactions
B.2 Principles of Consolidation between the Group and its joint ventures.
(a) The financial statements of the Holding (k) Non-Controlling Interest’s share of profit / loss
Company and its subsidiaries are combined on of consolidated subsidiaries for the year is
a line by line basis by adding together like items identified and adjusted against the income of
of assets, liabilities, equity, incomes, expenses the Group in order to arrive at the net income
and cash flows, after fully eliminating intra- attributable to shareholders of the Company.
group balances and intra-group transactions.
(l) Non-Controlling Interest’s share of net assets
(b) Profits or losses resulting from intra-group of consolidated subsidiaries is identified and
transactions that are recognised in assets, presented in the Consolidated Balance Sheet.
such as Inventory and Property, Plant and
Equipment, are eliminated in full. B.3 Summary of Significant Accounting
Policies
(c) In case of foreign subsidiaries, revenue items (a) Current and Non-Current Classification
are considered at the average rate prevailing The Group presents assets and liabilities in the
during the year. All assets and liabilities are Balance Sheet based on Current/ Non-Current
converted at rates prevailing at the end of classification.
the year. Any exchange difference arising on

Annual Report 2020-21 85

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

An asset is treated as Current when it is – over the net identifiable assets acquired and
liabilities assumed. After initial recognition,
- Expected to be realised or intended
Goodwill is tested for impairment annually
to be sold or consumed in normal
and measured at cost less any accumulated
operating cycle;
impairment losses if any.
- Held primarily for the purpose of trading;
(c) Property, Plant and Equipment
- Expected to be realised within twelve
Property, Plant and Equipment are stated at
months after the reporting period, or
cost, net of recoverable taxes, trade discount
- Cash or cash equivalent unless restricted and rebates less accumulated depreciation
from being exchanged or used to settle a and impairment losses, if any. Such cost
liability for at least twelve months after the includes purchase price and any cost directly
reporting period. attributable to bringing the assets to its
working condition for its intended use.
All other assets are classified as non-current.
Subsequent costs are included in the asset’s
A liability is treated as current when –
carrying amount or recognised as a separate
- It is expected to be settled in normal asset, as appropriate, only when it is probable
operating cycle; that future economic benefits associated with
the item will flow to the entity and the cost can
- It is held primarily for the
be measured reliably.
purpose of trading;
Property, Plant and Equipment which are
- It is due to be settled within twelve
significant to the total cost of that item of
months after the reporting period, or
Property, Plant and Equipment and having
- There is no unconditional right to defer different useful life are accounted separately.
the settlement of the liability for at least
Other Indirect Expenses incurred relating
twelve months after the reporting period.
to project, net of income earned during the
The Group classifies all other liabilities project development stage prior to its intended
as non-current. use, are considered as pre-operative expenses
and disclosed under Capital Work-in-Progress.
Deferred tax assets and liabilities are classified
as non-current assets and liabilities. Depreciation on Property, Plant and
Equipment is provided on straight-line method
(b)
Business Combination
and based on useful life of the assets as
Business Combinations are accounted for
prescribed in Schedule II to the Companies
using the acquisition method of accounting,
Act, 2013. Leasehold improvements are
except for common control transactions which
amortized over the lower of estimated useful
are accounted using the pooling of interest
life or lease period; on assets acquired under
method that is accounted at carrying values.
finance lease depreciation is provided over
The cost of an acquisition is measured at the the lease term.
fair value of the assets transferred, equity
The residual values, useful lives and methods
instruments issued and liabilities assumed at
of depreciation of Property, Plant and
their acquisition date i.e. the date on which
Equipment are reviewed at each financial year
control is acquired. Contingent consideration
end and adjusted prospectively, if appropriate.
to be transferred is recognised at fair value
and included as part of cost of acquisition. Gains or losses arising from derecognition of a
Transaction related costs are expensed in the Property, Plant and Equipment are measured
period in which the costs are incurred. as the difference between the net disposal
proceeds and the carrying amount of the asset
For each business combination, the Group
and are recognized in the Statement of Profit
elects whether to measure the non-controlling
and Loss when the asset is derecognised.
interests in the acquiree at fair value or at
the proportionate share of the acquiree’s (d)
Leases
identifiable net assets. The Group, as a lessee, recognizes a right-of-
use asset and a lease liability for its leasing
Goodwill arising on business combination is
arrangements, if the contract conveys the right
initially measured at cost, being the excess of
to control the use of an identified asset.
the aggregate of the consideration transferred
and the amount recognised for non-controlling
interests, and any previous interest held,

86 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

The contract conveys the right to control the recognized in the Statement of Profit and Loss
use of an identified asset, if it involves the when the asset is derecognized.
use of an identified asset and the Group has
The Company’s intangible assets comprises
substantially all of the economic benefits from
assets with finite useful life which are
use of the asset and has right to direct the use
amortised on a straight-line basis over the
of the identified asset. The cost of the right-
period of their expected useful life. The
of-use asset shall comprise of the amount of
amortisation period and the amortisation
the initial measurement of the lease liability
method for Intangible Assets with a finite
adjusted for any lease payments made at or
useful life are reviewed at each reporting date.
before the commencement date plus any
initial direct costs incurred. The right-of-use Computer software is amortised over a period
assets is subsequently measured at cost less of 5 years on a straight-line basis.
any accumulated depreciation, accumulated
(f) Research and Development Expenditure
impairment losses, if any and adjusted for
Revenue expenditure pertaining to research
any remeasurement of the lease liability. The
is charged to the Consolidated Statement of
right-of-use assets is depreciated using the
Profit and loss.
straight-line method from the commencement
date over the shorter of lease term or useful life Development costs are capitalized as an
of right-of-use asset. intangible asset if it can be demonstrated that
the project is expected to generate future
The Group measures the lease liability at the
economic benefits, it is probable that those
present value of the lease payments that are
future economic benefits will flow to the entity
not paid at the commencement date of the
and the costs of the asset can be measured
lease. The lease payments are discounted
reliably, else it is charged to the Statement of
using the interest rate implicit in the lease, if
Profit and Loss.
that rate can be readily determined. If that rate
cannot be readily determined, the group uses (g) Cash and Cash Equivalents
incremental borrowing rate.  Cash and cash equivalents comprise of cash
on hand, cash at banks, short term deposits
For short-term and low value leases, the
and short term highly liquid investments that
group recognizes the lease payments as an
are readily convertible to known amounts of
operating expense on a straight-line basis over
cash and which are subject to an insignificant
the lease term.
risk of changes in value.
(e)
Intangible Assets
(h)
Finance Costs
Intangible Assets are stated at cost of
Borrowing costs include exchange differences
acquisition net of recoverable taxes, trade
arising from foreign currency borrowings to
discount and rebates less accumulated
the extent they are regarded as an adjustment
amortisation / depletion and impairment loss,
to the interest cost. Borrowing costs that
if any. Such cost includes purchase price and
are directly attributable to the acquisition
any cost directly attributable for preparing the
or construction of qualifying assets are
asset for its intended use.
capitalised as part of the cost of such assets.
Subsequent costs are included in the asset’s A qualifying asset is one that necessarily takes
carrying amount or recognised as a separate substantial period of time to get ready for
asset, as appropriate, only when it is probable its intended use.
that future economic benefits associated with
Interest income earned on the temporary
the item will flow to the entity and the cost can
investment of specific borrowings pending
be measured reliably.
their expenditure on qualifying assets is
Other Indirect Expenses incurred relating deducted from the borrowing costs eligible for
to project, net of income earned during the capitalisation.
project development stage prior to its intended
All other borrowing costs are charged to the
use, are considered as pre-operative expenses
Consolidated Statement of Profit and Loss for
and disclosed under Intangible Assets
the period for which they are incurred.
Under Development.
(i) Inventories
Gains or losses arising from derecognition
Items of inventories are measured at
of an Intangible Asset are measured as the
lower of cost and net realisable value after
difference between the net disposal proceeds
providing for obsolescence, if any. Cost of
and the carrying amount of the asset and are
inventories comprises of cost of purchase,

Annual Report 2020-21 87

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

cost of conversion and other costs including (l) Contingent liability

manufacturing overheads net of recoverable Disclosure of contingent liability is made when
taxes incurred in bringing them to their there is a possible obligation arising from
respective present location and condition. past events, the existence of which will be
confirmed only by the occurrence or non-
Costs of inventories are determined on
occurrence of one or more uncertain future
weighted average basis except Gold and silver
events not wholly within the control of the
is determined on FIFO basis. Inventories of
Group or a present obligation that arises from
Gold / Silver are adjusted with gains / loss on
past events where it is either not probable that
qualifying fair value hedges.
an outflow of resources embodying economic
(j) Impairment of Non-Financial Assets benefits will be required to settle or a reliable
– Property, Plant and Equipment, estimate of amount cannot be made.
Goodwill & Intangible Assets
(m) Employee Benefits Expense
The Group assesses at each reporting date
Short Term Employee Benefits
as to whether there is any indication that any
The undiscounted amount of short term
Property, Plant and Equipment, Goodwill and
employee benefits expected to be paid
Intangible assets or group of assets, called
in exchange for the services rendered by
Cash Generating Units (CGU) may be impaired.
employees are recognised as an expense
If any such indication exists, the recoverable
during the period when the employees
amount of an asset or CGU is estimated
render the services.
to determine the extent of impairment, if
any. When it is not possible to estimate the Post-Employment Benefits
recoverable amount of an individual asset, the Defined Contribution Plans
Group estimates the recoverable amount of A defined contribution plan is a post-
the CGU to which the asset belongs. employment benefit plan under which
the Group pays specified contributions
An impairment loss is recognised in the
to a separate entity. The Group makes
Consolidated Statement of Profit and Loss to
specified monthly contributions towards
the extent, asset’s carrying amount exceeds
Provident Fund, Superannuation Fund and
its recoverable amount. The recoverable
Pension Scheme.
amount is higher of an asset’s fair value less
cost of disposal and value in use. Value in use The Group recognizes contribution payable
is based on the estimated future cash flows, to the provident fund scheme as an expense,
discounted to their present value using pre- when an employee renders the related service.
tax discount rate that reflects current market If the contribution payable to the scheme for
assessments of the time value of money and service received before the balance sheet date
risk specific to the assets. exceeds the contribution already paid, the
deficit payable to the scheme is recognized
The impairment loss recognised in prior
as a liability after deducting the contribution
accounting period is reversed if there
already paid. If the contribution already paid
has been a change in the estimate of
exceeds the contribution due for services
recoverable amount.
received before the balance sheet date, then
(k)
Provisions excess is recognized as an asset to the extent
Provisions are recognised when the Group has that the pre-payment will lead to, for example, a
a present obligation (legal or constructive) as reduction in future payment or a cash refund.
a result of a past event, it is probable that an
Defined Benefit Plans
outflow of resources embodying economic
The Group pays gratuity to the employees
benefits will be required to settle the obligation
who have completed five years of service at
and a reliable estimate can be made of the
the time of resignation/superannuation. The
amount of the obligation.
gratuity is paid @15 days salary for every
If the effect of the time value of money is completed year of service as per the Payment
material, provisions are discounted using of Gratuity Act, 1972.
a current pre-tax rate that reflects, when
The gratuity liability amount is contributed to
appropriate, the risks specific to the liability.
the approved gratuity fund formed exclusively
When discounting is used, the increase in
for gratuity payment to the employees. The
the provision due to the passage of time is
gratuity fund has been approved by respective
recognised as a finance cost.
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 The fair value determined at the grant date
post-employment benefits is calculated of the equity-settled share based payments
using the Projected Unit Credit Method is expensed on a straight line basis over the
and spread over the period during which vesting period, based on the Group’s estimate
the benefit is expected to be derived from of equity instruments that will eventually vest,
employees’ services. with a corresponding increase in equity. At
the end of each reporting period, the Group
Remeasurement gains and losses
revises its estimate of the number of equity
arising from adjustments and changes in
instruments expected to vest. The impact of
actuarial assumptions are recognized in
the revision of the original estimates, if any,
the period in which they occur in Other
is recognised in Consolidated Statement
Comprehensive Income.
of Profit and Loss such that the cumulative
(n)
Tax Expenses expenses reflects the revised estimate, with
The tax expenses for the period comprises of a corresponding adjustment to Share Based
current tax and Deferred Income Tax. Tax is Payments Reserve.
recognised in Consolidated Statement of Profit
The dilutive effect of outstanding options is
and Loss, except to the extent that it relates to
reflected as additional share dilution in the
items recognised in the Other Comprehensive
computation of diluted earnings per share.
Income or in Equity. In which case, the tax
is also recognised in Other Comprehensive (p) Foreign Currencies Transactions and
Income or Equity. Translation
Transactions in foreign currencies are recorded
i) Current Tax
at the exchange rate prevailing on the date of
Current tax assets and liabilities are
transaction. Monetary assets and liabilities
measured at the amount expected
denominated in foreign currencies are
to be recovered from or paid to the
translated at the functional currency closing
taxation authorities, based on tax
rates of exchange at the reporting date.
rates and laws that are enacted at the
Balance sheet date. Exchange differences arising on settlement or
translation of monetary items are recognised
ii) Deferred Tax
in Consolidated Statement of Profit and Loss
Deferred tax is recognised on temporary
except to the extent of exchange differences
differences between the carrying
which are regarded as an adjustment to
amounts of assets and liabilities in
interest costs on foreign currency borrowings
the Financial Statements and the
that are directly attributable to the acquisition
corresponding tax bases used in the
or construction of qualifying assets which are
computation of taxable profit.
capitalized as cost of assets.
Deferred tax assets are recognised to
Non-monetary items that are measured in
the extent it is probable that taxable
terms of historical cost in a foreign currency
profit will be available against which the
are recorded using the exchange rates at the
deductible temporary differences, and
date of the transaction. Non-monetary items
the carry forward of unused tax losses
measured at fair value in a foreign currency are
can be utilized.
translated using the exchange rates at the date
Deferred tax liabilities and assets are when the fair value was measured. The gain
measured at the tax rates that are or loss arising on translation of non-monetary
expected to apply in the period in which items measured at fair value is treated in line
the liability is settled or the asset realised, with the recognition of the gain or loss on the
based on tax rates (and tax laws) that have change in fair value of the item (i.e., translation
been enacted or substantively enacted differences on items whose fair value gain or
by the end of the reporting period. The loss is recognised in Other Comprehensive
carrying amount of Deferred tax liabilities Income or Statement of Profit and Loss are also
and assets are reviewed at the end of recognised in Other Comprehensive Income or
each reporting period. Statement of Profit and Loss, respectively).

(o) Share Based Payments (q)

Revenue Recognition
Equity-settled share-based payments to Revenue from contracts with customers is
employees and others providing similar recognised when control of the goods or
services are measured at the fair value of the services are transferred to the customer at an
equity instruments at the grant date. amount that reflects the consideration entitled
in exchange for those goods or services. The

Annual Report 2020-21 89

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 before Group’s right to receive the amount has
transferring them to the customer. been established.

Generally, control is transfer upon shipment (r)

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

90 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated


Financial assets are reclassified For other assets, the Group uses 12
subsequent to their recognition, months ECL to provide for impairment
if the Group changes its loss where there is no significant increase
business model for managing in credit risk. If there is significant increase
those financial assets. Changes in credit risk full lifetime ECL is used.
in business model are made
ii) Financial Liabilities
and applied prospectively from
A.  Initial Recognition and
the reclassification date which
Measurement
is the first day of immediately
 All Financial Liabilities are
next reporting period following
recognized at fair value and in
the changes in business model
case of borrowings, net of directly
in accordance with principles
attributable cost. Fees of recurring
laid down under Ind AS 109 –
nature are directly recognised in the
Financial Instruments.
Consolidated Statement of Profit
C. Other Equity Investments and Loss as finance cost.
All other equity investments are
B. Subsequent Measurement
measured at fair value, with value changes
 Financial Liabilities are carried at
recognised in Consolidated Statement of
amortized cost using the effective
Profit and Loss, except for those equity
interest method.
investments for which the Group has
elected to present the value changes in 
For trade and other payables
‘Other Comprehensive Income’. However, maturing within one year from the
dividend on such equity investments are balance sheet date, the carrying
recognized in Statement of Profit and amounts approximate fair value
loss when the Company’s right to receive due to the short maturity of
payment is established. these instruments.

D. Impairment of Financial Assets iii) 

Derivative Financial Instruments
In accordance with Ind AS 109, the Group and Hedge Accounting
uses “Expected Credit Loss” (ECL) model, The Group uses various derivative
for evaluating impairment of Financial financial instruments such as currency
Assets other than those measured at Fair forwards and commodity contracts
Value Through Profit and Loss (FVTPL). to mitigate the risk of changes in
exchange rates and commodity prices.
Expected credit losses are measured
At the inception of a hedge relationship,
through a loss allowance at an
the Group formally designates and
amount equal to:
documents the hedge relationship to
• The 12 months expected credit which the Group wishes to apply hedge
losses (expected credit losses that accounting and the risk management
result from those default events objective and strategy for undertaking
on the financial instrument that are the hedge. Such derivative financial
possible within 12 months after the instruments are initially recognised at fair
reporting date); value on the date on which a derivative
contract is entered into and are also
Or
subsequently measured at fair value.
• Full lifetime expected credit losses Derivatives are carried as Financial
(expected credit losses that result Assets when the fair value is positive
from all possible default events over and as Financial Liabilities when the fair
the life of the financial instrument) value is negative.

For Trade Receivables the Group applies Any gains or losses arising from changes
‘simplified approach’ which requires in the fair value of derivatives are taken
expected lifetime losses to be recognised directly to Consolidated Statement of
from initial recognition of the receivables. Profit and Loss, except in case where the
The Group uses historical default rates related underlying is held as inventory,
to determine impairment loss on the in which case, they are adjusted to the
portfolio of trade receivables. At every carrying cost of inventory.
reporting date these historical default
Hedges that meet the criteria for hedge
rates are reviewed and changes in the
accounting are accounted for as follows:
forward looking estimates are analysed.

Annual Report 2020-21 91

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

A. Cash Flow Hedge and Loss. If the hedging relationship

 The Group designates derivative no longer meets the criteria for
contracts or non-derivative hedge accounting, the adjustment
Financial Assets / Liabilities as to the carrying amount of a hedged
hedging instruments to mitigate item is amortised to Consolidated
the risk of movement in interest Statement of Profit and Loss over the
rates and foreign exchange rates period of maturity.
for foreign exchange exposure on
iv) 
Derecognition of Financial
highly probable future cash flows
Instruments
attributable to a recognised asset or
The Group derecognizes a Financial Asset
liability or forecast cash transactions.
when the contractual rights to the cash

When a derivative is designated as flows from the Financial Asset expire or
a cash flow hedging instrument, it transfers the Financial Asset and the
the effective portion of changes transfer qualifies for derecognition under
in the fair value of the derivative Ind AS 109. A Financial Liability (or a part
is recognized in the cash flow of a Financial Liability) is derecognized
hedging reserve being part of from the Group’s Balance Sheet when
Other Comprehensive Income. the obligation specified in the contract is
Any ineffective portion of changes discharged or cancelled or expires.
in the fair value of the derivative
v) Offsetting
is recognized immediately in the
Financial Assets and Financial Liabilities
Consolidated Statement of Profit and
are offset and the net amount is
Loss. If the hedging relationship no
presented in the balance sheet when,
longer meets the criteria for hedge
and only when, the Group has a legally
accounting, then hedge accounting
enforceable right to set off the amount
is discontinued prospectively. If
and it intends, either to settle them on a
the hedging instrument expires or
net basis or to realise the asset and settle
is sold, terminated or exercised,
the liability simultaneously.
the cumulative gain or loss on the
hedging instrument recognized in (s) Non-current assets held for sale
cash flow hedging reserve till the  Non-current assets are classified as held for
period the hedge was effective sale if their carrying amount will be recovered
remains in cash flow hedging reserve principally through a sale transaction rather
until the underlying transaction than through continuing use and sale is
occurs. The cumulative gain or loss considered highly probable.
previously recognized in the cash
A sale is considered as highly probable when
flow hedging reserve is transferred
decision has been made to sell, assets are
to the Consolidated statement of
available for immediate sale in its present
profit and loss upon the occurrence
condition, assets are being actively marketed
of the underlying transaction. If
and sale has been agreed or is expected to
the forecasted transaction is no
be concluded within 12 months of the date of
longer expected to occur, then the
classification.
amount accumulated in cash flow
hedging reserve is reclassified in Assets and liabilities classified as held for
the Consolidated Statement of sale are measured at the lower of their
Profit and Loss. carrying amount and fair value less cost
of sell and are presented separately in the
B. Fair Value Hedge
Consolidated Balance Sheet.
The Group designates derivative
contracts as hedging instruments (t) Earnings per share
to mitigate the risk of change in Basic earnings per share is calculated by
fair value of hedged item due to dividing the net profit after tax by the weighted
movement in commodity prices and average number of equity shares outstanding
foreign exchange rates. during the year adjusted for bonus element
in equity share. Diluted earnings per share
Changes in the fair value of hedging
adjusts the figures used in determination of
instruments and hedged items that
basic earnings per share to take into account
are designated and qualify as fair
the conversion of all dilutive potential equity
value hedges are recorded in the
shares. Dilutive potential equity shares are
Consolidated Statement of Profit

92 Reliance Retail Ventures Limited

 MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS
Consolidated

deemed converted as at the beginning of the asset’s recoverable amount is the higher of an
period unless issued at a later date. asset’s or Cash Generating Units (CGU’s) fair value
less costs of disposal and its value in use. It is
C. Critical Accounting Judgements and Key determined for an individual asset, unless the asset
Sources of Estimation Uncertainty does not generate cash inflows that are largely
The preparation of the Group’s Financial Statements independent of those from other assets or a group
requires management to make judgement, estimates of assets. Where the carrying amount of an asset
and assumptions that affect the reported amount or CGU exceeds its recoverable amount, the asset
of revenue, expenses, assets and liabilities and the is considered impaired and is written down to its
accompanying disclosures. Uncertainty about these recoverable amount.
assumptions and estimates could result in outcomes that The impairment provisions for Financial Assets
require a material adjustment to the carrying amount of are based on assumptions about risk of default
assets or liabilities affected in future periods. and expected cash loss rates. The Group uses
(a) Depreciation / Amortisation and Useful judgement in making these assumptions and
Life of Property, Plant and Equipment / selecting the inputs to the impairment calculation,
Intangible Assets based on Group’s past history, existing market
Property, Plant and Equipment / Intangible Assets conditions as well as forward-looking estimates at
are depreciated / amortised over their estimated the end of each reporting period.
useful life, after taking into account estimated In case of non-financial assets Group estimates
residual value. asset’s recoverable amount, which is higher of an
Management reviews the estimated useful life asset’s or Cash Generating Units (CGU’s) fair value
and residual values of the assets annually in less costs of disposal and its value in use.
order to determine the amount of depreciation / In assessing value in use, the estimated future
amortisation to be recorded during any reporting cash flows are discounted to their present value
period. The useful life and residual values are using pre-tax discount rate that reflects current
based on the Group’s historical experience with market assessments of the time value of money
similar assets and take into account anticipated and the risks specific to the asset. In determining
technological changes. The depreciation / fair value less costs of disposal, recent market
amortisation for future periods is revised if there are transactions are taken into account, if no such
significant changes from previous estimates. transactions can be identified, an appropriate
(b) Recoverability of Trade Receivables valuation model is used.
Judgements are required in assessing the (e) Recognition of Deferred Tax Assets and
recoverability of overdue trade receivables and liabilities
determining whether a provision against those Deferred tax assets and liabilities are recognised
receivables is required. Factors considered include for deductible temporary differences and unused
the credit rating of the counterparty, the amount tax losses for which there is probability of utilisation
and timing of anticipated future payments and any against the future taxable profit. The Group uses
possible actions that can be taken to mitigate the judgement to determine the amount of deferred
risk of non- payment. tax that can be recognised, based upon the likely
(c) Provisions timing and the level of future taxable profits and
Provisions and liabilities are recognized in the period business developments.
when it becomes probable that there will be a future (f) Fair Value Measurement
outflow of funds resulting from past operations For estimates relating to fair value of financial
or events and the amount of cash outflow can be instruments refer note 34 of financial statements.
reliably estimated. The timing of recognition and
quantification of the liability require the application (g) Leases
of judgement to existing facts and circumstances, Identification of lease requires significant
which can be subject to change. The carrying judgement. In case of Reliance Retail Limited, the
amounts of provisions and liabilities are reviewed subsidiary of the Holding Company,  large portion of
regularly and revised to take account of changing the leases are cancellable by both lessor and lessee
facts and circumstances. or are arrangements which qualify as variable leases
and hence are not considered for recognition of
(d) Impairment of Financial and Non-Financial Right of Use Asset and lease liabilities. Also there
assets are few lease arrangements which are cancellable
The Group assesses at each reporting date only at the option of the lessee but have not been
whether there is an indication that an asset may considered for recognition of Right of Use Assets
be impaired. If any indication exists, the Group and lease liabilities on grounds of materiality and
estimates the asset’s recoverable amount. An exercisability.

Annual Report 2020-21 93

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 Lifestyle
- - 87,45,000 7.35
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
(Credit) to (Including
31st March, to Other 31st March,
Statement of Exchange
2020 comprehensive 2021
Profit and Loss Difference)
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.


Cash and Cash Equivalents includes deposits maintained by the Company with banks, which can be withdrawn by the
9.1 
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 each 6,863.54 6,000.00
(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 O
 ut 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 Limited

- - 80,00,00,000 100%
(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)
 he provision for employee benefit includes annual leave and vested long service leave entitlement accrued and compensation claims made by
T
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)
 he provision for employee benefit includes gratuity, annual leave and vested long service leave entitlement accrued and compensation claims made
T
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
(1.43) 14.81 (1.35) 0.88
Recognised in OCI

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
India 72.09%
Private Limited)
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

Proportion of
Country 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 Grand
Liquidity Risks* 1-3 years 3-5 years
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 Grand
Liquidity Risks* 3-6 months 1-3 years 3-5 years
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
Carrying amount
Nominal Quantity Changes Hedge Line Item in Balance
Type of Hedge and Risks
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 31st March, 2020
Commodity price risk
Derivative Contracts Other Financial
1,569.99 4,987.00 1.50 37.45 (35.96) May 20–June 20
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.
Name of the Related Party Relationship
No.

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.
Name of the Related Party Relationship
No.

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
Joint Venture
49 Reliance Bally India Private Limited
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
Key Managerial Personnel
59 Shri Ashwin Khasgiwala*
60 Shri K Sridhar
61 Reliance Retail Limited Employees Gratuity Fund Post
62 Reliance Retail Limited Employees Provident Fund Employment Benefits Plan
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
Joint Key
Sr. Holding Fellow
Nature of Transactions 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
Joint Key
Sr. Holding Fellow
Nature of Transactions Ventures/ Managerial Others Total
No. 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 Expenses - 1.68 - - - 1.68
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 OCPS 650.00 - - - - 650.00
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
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

Annual Report 2020-21 115

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
Reliance Foundation Others 97.70 -
* 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
Organised Retail Petro Retail Unallocated Total
Particulars
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.

As per Indian Accounting Standard 108 – Operating Segments, the Company has reported segment information on
(iii) 
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. T
 he 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.

39. The Consolidated Financial statements were approved for issue by the Board of Directors on 30th 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
0.00 0.01 (0.00) (0.00) - - (0.00) (0.00)
Private Limited
4 Reliance Clothing India
(0.08) (68.17) (0.27) (15.00) (0.01) 0.01 (0.28) (14.99)
Private Limited
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
0.12 98.64 (0.01) (0.45) (0.02) 0.05 (0.01) (0.40)
Private Limited
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
0.17 140.95 (0.49) (27.02) (0.70) 1.43 (0.48) (25.59)
Private Limited
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
0.02 16.30 (0.07) (3.89) 0.03 (0.06) (0.07) (3.95)
Private Limited
17 C-Square Info-Solutions
0.04 36.60 0.02 0.86 - - 0.02 0.86
Private Limited
18 Shopsense Retail Technologies
0.11 91.69 (0.00) (0.01) 0.01 (0.01) (0.00) (0.02)
Private Limited
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
0.01 9.83 0.02 0.89 0.00 (0.00) 0.02 0.89
Private Limited
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
0.00 0.00 (0.00) (0.01) - - (0.00) (0.01)
Lifestyle Limited
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
0.01 9.87 (0.29) (15.73) 0.02 (0.04) (0.30) (15.77)
Private Limited
27 Actoserba Active Wholesale
0.11 91.11 (0.76) (41.72) 0.28 (0.57) (0.80) (42.29)
Private Limited
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
0.08 62.29 (1.13) (61.78) (2.52) 5.14 (1.07) (56.64)
all Subsidiaries
Joint Ventures (Investment as per
the Equity Method)
1 Marks and Spencer Reliance India
0.18 149.14 (0.66) (36.11) 0.09 (0.19) (0.69) (36.30)
Private Limited
2 Reliance-GrandVision India Supply
0.01 4.92 (0.00) (0.24) - - (0.00) (0.24)
Private Limited
3 Reliance-Vision Express
0.01 4.83 (0.13) (7.36) (0.12) 0.24 (0.13) (7.12)
Private Limited
4 Diesel Fashion India Reliance
0.02 13.69 (0.03) (1.52) (0.00) 0.01 (0.03) (1.51)
Private Limited
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
0.01 5.38 (0.01) (0.73) (0.00) 0.00 (0.01) (0.73)
Private Limited
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
0.02 15.76 (0.06) (3.04) (0.01) 0.01 (0.06) (3.03)
Private Limited
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
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

Annual Report 2020-21

since which Equity Profit Provision Profit Other Total % of
Sr. Reporting Other Total Total Total Proposed
Name of Subsidiary Company Subsidiary Share Investments Before for After Comprehensive Comprehensive Share
No. Currency Equity# Assets Liabilities 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
5/12/2013 INR 0.05 (0.04) 0.06 0.05 - 0.00 (0.00) - (0.00) - (0.00) 0.00 100.00%
Private Limited
4 Reliance Clothing India
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%
Private Limited
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
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%
Private Limited
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 Genesis 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%
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
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%
Private Limited
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%
MD&A

13 Shri Kannan Departmental Store

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%
Private Limited
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
26/6/2019
Holding UK Limited * GBP 72.96 26.28 113.31 14.07 101.71 - (0.94) (0.18) (0.76) - (0.76) 0.00 100.00%
15 Hamleys Global INR - - - - - - - - - - - 0.00
16/7/2019
Holdings Limited *@ 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
BOARD’S REPORT

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%
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
FINANCIAL

HKD 0.00 (0.18) 1.44 1.62 - 4.41 (0.18) - (0.18) - (0.18) 0.00 100.00%
STATEMENTS

INR - - - - - - - - - - - 0.00
Consolidated

20 Scrumpalicious Limited *@
16/7/2019
GBP 0.00 100.00%
21 Luvley Limited *@ INR - - - - - - - - - - - 0.00
16/7/2019
GBP 0.00 100.00%
INR 0.00 (68.38) 28.54 96.92 - - 4.76 - 4.76 - 4.76 0.00
NOTICE

22 Hamleys Toys (Ireland) Limited *

16/7/2019
EUR 0.00 (7.62) 3.18 10.80 - - 0.53 - 0.53 - 0.53 0.00 100.00%
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

123
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
Foreign Currencies in Million

124
The date
since which Equity Profit Provision Profit Other Total % of
Sr. Reporting Other Total Total Total Proposed
Name of Subsidiary Company Subsidiary Share Investments Before for After Comprehensive Comprehensive Share
No. Currency Equity# Assets Liabilities Income Dividend
Notes

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
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%
Private Limited
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
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%
Private Limited
30 NowFloats Technologies
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%
Private Limited
31 C-Square Info-Solutions
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%
Private Limited
32 Shopsense Retail Technologies
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%
Private Limited
33 Reliance Lifestyle Products Private
Limited(Formerly V&B Lifestyle 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%
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 Wholesale
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%
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.
to the Consolidated Financial Statements for the year ended 31st March, 2021

# 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

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

Reliance Retail Ventures Limited

Date: April 30, 2021
Notice
MD&A BOARD’S REPORT FINANCIAL NOTICE
STATEMENTS

NOTICE is hereby given that the Fifteenth Annual General SPECIAL BUSINESS
Meeting of the members of Reliance Retail Ventures Limited
4. To re-appoint Mr. V. Subramaniam as the Managing
will be held on Wednesday, September 29, 2021 at 11:00 a.m.
Director and in this regard, to consider and if thought
IST through Video Conferencing (“VC”)/ Other Audio-Visual
fit, to pass, with or without modification(s), the following
Means (“OAVM”), to transact the following business:
resolution as an Ordinary Resolution:

ORDINARY BUSINESS “RESOLVED THAT in accordance with the provisions

of Sections 196,197 and 203 read with Schedule V
1. To consider and adopt (a) the audited financial statement
and other applicable provisions of the Companies Act,
of the Company for the financial year ended March
2013 (“the Act”) and the Companies (Appointment
31, 2021 and the reports of the Board of Directors and
and Remuneration of Managerial Personnel) Rules,
Auditors thereon; and (b) the audited consolidated
2014 (including any statutory modification(s) or re-
financial statement of the Company for the financial year
enactment(s) thereof, for the time being in force),
ended March 31, 2021 and the report of the Auditors
approval of the members be and is hereby accorded
thereon and in this regard, to consider and if thought fit,
to re-appoint Mr. V. Subramaniam (DIN: 00009621) as
to pass, with or without modification(s), the following
the Managing Director of the Company, for a period
resolutions as Ordinary Resolutions:
of 5 (five) years, from the expiry of his present term of
(a) “RESOLVED THAT the audited financial statement office, i.e. with effect from January 13, 2022, on the
of the Company for the financial year ended March terms and conditions including remuneration as set
31, 2021 and the reports of the Board of Directors out in the Statement annexed to the Notice convening
and Auditors thereon, as circulated to the members, this Meeting, with liberty to the Board of Directors
be and are hereby considered and adopted.” (hereinafter referred to as “the Board” which term shall
include the Nomination and Remuneration Committee of
(b) “RESOLVED THAT the audited consolidated
the Board) to alter and vary the terms and conditions of
financial statement of the Company for the financial
the said re-appointment and / or remuneration as it may
year ended March 31, 2021 and the report of the
deem fit subject to the same not exceeding the limits
Auditors thereon, as circulated to the members, be
specified under Schedule V to the Act or any statutory
and are hereby considered and adopted.”
modification(s) or re-enactment thereof;
2. To appoint Mr. Manoj H. Modi, who retires by rotation as

RESOLVED FURTHER THAT the Board be and is
a Director and in this regard, to consider and if thought
hereby authorised to do all acts and take all such steps as
fit, to pass, with or without modification(s), the following
may be necessary, proper or expedient to give effect to
resolution as an Ordinary Resolution:
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 in
the Companies Act, 2013, Mr. Manoj H. Modi (DIN:
this regard, to consider and if thought fit, to pass, with
00056207), who retires by rotation at this meeting be
or without modification(s), the following resolution as a
and is hereby appointed as a Director of the Company.”
Special Resolution:
3. To appoint Ms. Isha M. Ambani, who retires by rotation as

“RESOLVED THAT pursuant to the provisions of
a Director and in this regard, to consider and if thought
Section 180(1)(a) and other applicable provisions, if any,
fit, to pass, with or without modification(s), the following
of the Companies Act, 2013 (including any statutory
resolution as an Ordinary Resolution:
modification(s) or re-enactment(s) thereof, for the time
“RESOLVED THAT in accordance with the provisions being in force) and the provisions of the Memorandum
of Section 152 and other applicable provisions of and Articles of Association of the Company, approval of
the Companies Act, 2013, Ms. Isha M. Ambani (DIN: the members be and is hereby accorded to the Board
06984175), who retires by rotation at this meeting be and of Directors of the Company (hereinafter referred to
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:
4th 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 fee
May 5, 2020 read together with circulars dated April 8, by the members from the date of circulation of this
2020, April 13, 2020 and January 13, 2021 (collectively Notice up to the date of AGM. Members seeking to
referred to as “MCA Circulars”) permitted convening the inspect such documents can send an email to sridhar.
Annual General Meeting (“AGM”/ “Meeting”) through [email protected].
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 AGM,
members at a common venue. In accordance with the
are requested to write to the Company on or before
MCA Circulars and the provisions of the Companies Act,
Wednesday, September 22, 2021 through e-mail on
2013 (“the Act”), the AGM of the Company is being held
[email protected]. The same will be replied
through VC/OAVM.The deemed venue for the AGM shall
by the Company suitably.
be the Registered Office of the Company.
10. Members attending the AGM through VC/ OAVM shall
2. In compliance with the MCA Circulars, Notice of the
be reckoned for the purpose of quorum under Section
AGM along with the Annual Report 2020-21 is being
103 of the Act.
sent only through electronic mode to those members
whose email addresses are registered with the Company 11. In terms of provisions of Section 152 of the Act,
/ Depositories. Members may note that the Notice and Mr. Manoj H. Modi and Ms. Isha M. Ambani, Directors,
Annual Report 2020-21 will also be available on the retire by rotation at the Meeting. The Nomination
Company’s website www.relianceretail.com. and Remuneration Committee and the Board of
Directors of the Company commend their respective
3. A Statement pursuant to Section 102(1) of the Act,
re-appointments.
relating to the Special Business to be transacted at the
AGM is annexed hereto. Mr. Manoj H. Modi and Ms. Isha M. Ambani, are
interested in the Ordinary Resolutions set out at Item
4. Generally, a member entitled to attend and vote at the
Nos. 2 and 3 respectively, of the Notice with regard
Meeting is entitled to appoint a proxy to attend and
to their re-appointment. Mr. Mukesh D. Ambani and
vote on a poll instead of himself and the proxy need not
Mr. Akash M. Ambani, being relatives of Ms. Isha
be a member of the Company. Since this AGM is being
M. Ambani, may be deemed to be interested in the
held through VC/OAVM pursuant to the MCA Circulars,
Ordinary Resolution set out at Item No. 3. Save and
physical attendance of members has been dispensed
except the above, none of the Directors / Key Managerial
with. Accordingly, the facility for appointment of proxies
Personnel of the Company / their relatives are, in any
by the members will not be available for the AGM and
way, concerned or interested, financially or otherwise,
hence the Proxy Form and Attendance Slip are not
in the Ordinary Resolutions set out under Item Nos. 1 to
annexed hereto.
3 of the Notice.
5. Since the AGM will be held through VC/OAVM, the route
12. Details of Directors retiring by rotation / seeking
map of the venue of the Meeting is not annexed hereto.
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
13. Detailed instructions to attend, participate and vote
to send to the Company vide email at sridhar.
at the Meeting through VC / OAVM are provided
[email protected], a certified true copy of
in “Annexure II”.
the relevant Board Resolution authorising their
representative(s) to attend and vote on their behalf at the 14. As per Article 73 of the Articles of Association of the
meeting, before the commencement of the Meeting. Company “All business to be transacted at a general
meeting or at meetings of any class of shareholders of
7. The Register of Directors and Key Managerial Personnel
the Company shall be decided on a poll.” Accordingly,
and their shareholding maintained under Section 170
voting by show of hands would not be available
of the Act, the Register of Contracts or Arrangements
at the Meeting.
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 votes
Mr. Anil Lohia, a Practising Chartered Accountant, by email from their email address which is registered
Partner, Dayal and Lohia, Chartered Accountants or with the Company to the designated email address of the
failing him Mr. Chandrahas Dayal, a Practising Chartered Scrutinizer i.e. [email protected].
Accountant, Partner of Dayal and Lohia, Chartered
18. In the event a member has not yet registered his/her
Accountants as a scrutinizer to scrutinize the polling
email address, the same may be done by sending an
process and submit the results of poll.
email to the Company at the designated email address of
16. The E-Poll paper will be circulated to the members at the Company i.e. [email protected].
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 to c) General:
the Special Business mentioned in the accompanying Notice: i. Mr. V. Subramaniam will perform his duties as such
with regard to all work of the Company and will
Item No. 4: manage and attend to such business and carry
out the orders and directions given by the Board
The Board of Directors of the Company (“the Board”), at its
from time to time.
meeting held on April 30, 2021 has, subject to the approval of
members, re-appointed Mr. V. Subramaniam (DIN: 00009621) ii. Mr. V. Subramaniam shall act in accordance with the
as the Managing Director of the Company, for a period of 5 Articles of Association of the Company and shall
(five) years from the expiry of his present term, i.e. with effect abide by the provisions contained in the Act with
from January 13, 2022, on the terms and conditions including regard to duties of directors.
remuneration as recommended by the Nomination and
iii. The Managing Director shall adhere to the
Remuneration Committee ("NRC") of the Board.
Company’s Code of Conduct.
It is proposed to seek members’ approval for the re-
iv. Office of Managing Director may be terminated by
appointment of and remuneration payable to Mr. V.
the Company or the Managing Director, by giving
Subramaniam as the Managing Director of the Company,
the other 3 (three) months’ prior notice in writing.
in terms of the applicable provisions of the Companies Act,
2013 (“the Act”). Mr. V. Subramaniam satisfies all the conditions set out in
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 re-
remuneration payable to, Mr. V. Subramaniam are as under:
appointment. He is not disqualified from being appointed as
a) Remuneration: Director in terms of Section 164 of the Act.
Mr. V. Subramaniam shall be paid remuneration of Rs.
The above may be treated as a written memorandum setting
5 crore p.a. subject to the provisions of the Act, which
out the terms of re-appointment of Mr. V. Subramaniam under
includes salary, perquisites and allowances.
Section 190 of the Act.
The perquisites and allowances shall be evaluated,
Details of Mr. V. Subramaniam are provided in the “Annexure
wherever applicable, as per the provisions of Income-
I” to the Notice, pursuant to the provisions of the Secretarial
tax Act, 1961 or any rules thereunder or any statutory
Standard on General Meetings (SS - 2), issued by the Institute
modification(s) or re-enactment thereof; in the absence
of Company Secretaries of India.
of any such rules, perquisites and allowances shall be
evaluated at actual cost. Mr. V. Subramaniam is interested in the ordinary resolution
set out at Item No. 4 of the Notice with regard to his
The Company’s contribution to provident fund,
re-appointment.
superannuation or annuity fund, gratuity payable and
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, in
any way, concerned or interested, financially or otherwise, in
Increment in salary, perquisities and allowances and
the resolution set out at Item No. 4 of the Notice.
remuneration by way of incentive / bonus / performance
linked incentive, payable to Mr. V. Subramaniam, as may The Board commends the Ordinary Resolution set out at Item
be determined by the Board and /or the NRC of the No. 4 of the Notice for approval by the members.
Board, shall be in addition to the remuneration as above.
Item No. 5:
The overall remuneration payable every year to the
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
the requirements of business of the Company, its subsidiaries
b) Reimbursement of Expenses:
and associates. The special purpose vehicle is proposed
Mr. V. Subramaniam shall be entitled to be reimbursed
to be owned/controlled by a SEBI registered Infrastructure
from the Company all the expenses incurred by him on
Investment Trust, set up by the Company as a ‘sponsor’ under
behalf of the Company.
the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Annual Report 2020-21 129

Notice

The Company operates a pan-India network of warehouses Accordingly, the approval of the members is sought in terms
and delivery locations including smart delivery points to of the provisions of Section 180(1)(a) of the Companies Act,
support the last mile logistics infrastructure needs of the 2013 with respect to the proposed sale/lease/transfer or
Company, its subsidiaries and associates. The logistics otherwise disposing of the logistics infrastructure assets
infrastructure assets comprise all assets at the network of of the Company.
warehouses and supporting last mile delivery locations,
None of the Directors / Key Managerial Personnel of the
relating to the inbound (receipt, put away) and outbound
Company / their relatives are, in any way, concerned or
(picking, packing and dispatch) of materials and includes
interested, financially or otherwise, in the special resolution
various automation technologies used in the warehouses.
set out at Item No. 5 of the Notice.
The smart delivery points include all assets used in these
locations for receipt, storage and dispatch of merchant and The Board commends the Special Resolution set out at Item
customer orders. The logistics infrastructure assets cater No. 5 of the Notice for approval by the members.
to demands on pan India basis for segments such as food
By Order of the Board of Directors
& grocery, fashion and lifestyle, consumer electronics and
pharmaceuticals and caters to the requirements of offline
stores of Reliance Retail Limited, online delivery fulfillment K. Sridhar
and supply to kirana and other merchants. The consideration Company Secretary
for the sale/lease/transfer of the said assets shall be on Place: Mumbai
an arm’s length basis, based on the valuation report by a Date : 01-09-2021
registered valuer.
Registered Office:
The Company proposes to take on lease the logistics
4th Floor, Court House, Lokmanya Tilak Marg,
infrastructure assets from the special purpose vehicle for
Dhobi Talao, Mumbai - 400 002
carrying on the aforesaid business. For this purpose the
CIN: U51909MH2006PLC166166
Company proposes to enter into appropriate arrangements/
Tel. : 022- 35553800
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

 MD&A BOARD’S REPORT FINANCIAL NOTICE

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

Number of Meetings of the Board attended 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 Boards Jio Platforms Limited

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 Managerial Daughter of Mr. Mukesh D. Ambani and Sister of Mr. Akash M. Ambani.
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 Boards Reliance Jio Infocomm Limited

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

Number of Meetings of the Board attended 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 Boards Reliance Retail Limited

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. [email protected]
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

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