Reliance Industries Limited
Annual Report 1985
50
Dhirbhai H. Ambani
(Chairman &
Managing Director)
1
BOARD OF DIRECTORS
Dhirubhai H. Ambani (Chairman & Director
Ramniklal H. Ambani (Joint Managing Director)
K. Gopal Rao
Natvarlal H. Ambani (Executive Director)
Mukesh D. Ambani (Executive Director)
Jayantilal R. Shah
Mansingh L. Bhakta
R. V. Madhava Rao (Nominee Director, G.I.C.)
V. V. Divecha Nominee)
T. Ramesh U. Pai
Anil D. Ambani (Executive Director)
SECRETARY
Vinod M. Ambani
SOLICITORS & ADVOCATES
Kanga & Co.
Dave & Co.
AUDITORS
Rajendra & Co.
Chaturvedi & Shah
BANKERS
Syndicate Bank
State Bank of India
Canara Bank Bank
Bank of Baroda
Indian Bank
Standard Chartered Bank
European Asian Bank
Grindlays Bank plc.
REGISTRARS &
TRANSFER AGENTS
Reliance Consultancy Services Limited
56, Mogra Village Lane
Off Old Nagardas Road
Andheri (East), Bombay-400 069
FINANCIAL HIGHLIGHTS
Sales
Other Income
Manufacturing Expenses
Interest
Gross Profit (A)-(B)
Depreciation
Net Profit (C)-(D)
WHAT THE COMPANY OWNED:
FIXED ASSETS
Gross Block
Less: Depreciation (Cumulative)
Net Block
Investments
Current Assets
WHAT THE COMPANY OWED:
Long Term Funds
Medium/Short Term Funds
Current Liabilities and Provisions
NET WORTH OF THE COMPANY:
Equity Share Capital
Preference Share Capital
Reserves and Surplus
(In million)
1985
$
584.73
4.06
588.79
479.76
20.10
499.36
89.43
30.79
58.64
604.74
105.94
498.80
30.66
330.52
859.98
423.46
67.33
113.45
604.24
42.42
4.77
208.55
255.74
Rs.
7113.50
49.39
(A) 7162.89
5830.45
244.47
(B) 6074.92
(C) 1087.97
(D) 374.60
713.37
7356.86
1288.77
6068.09
372.98
4020.96
10462.03
5151.62
819.05
1380.19
7350.86
516.09
58.00
2537.08
3111.17
2
1984
$
484.02
5.70
489.72
395.29
18.12
413.41
76.31
27.37
48.94
425.27
83.82
341.45
0.14
188.56
530.15
221.85
35.91
75.03
332.79
36.99
4.65
155.72
197.36
Rs.
6042.74
71.11
6113.85
4934.97
226.16
5161.13
952.72
341.73
610.99
5309.29
1046.44
4262.85
1.70
2354.06
6618.61
2769.62
448.28
936.80
4154.70
461.80
58.00
1944.11
2463.91
1983
$
474.67
4.42
479.09
392.78
20.31
413.09
66.00
29.63
36.37
372.77
69.31
303.46
0.12
203.14
506.72
226.55
33.48
124.08
384.11
34.13
5.48
83.00
Rs.
5028.26
46.80
5075.06
4160.77
215.21
4375.98
699.08
313.83
385.25
3948.81
734.18
3214.63
1.21
2151.93
5367.77
2399.91
354.65
1314.43
4068.99
361.51
58.00
879.27
1298.78
122.61
1982
$
417.10
2.58
419.68
355.77
19.43
375.20
44.48
14.54
29.94
366.16
43.22
322.94
0.13
196.61
519.68
267.50
23.46
134.76
425.72
19.09
5.95
68.92
93.96
Rs.
4063.31
25.15
4088.46
3465.83
189.30
3655.13
433.33
141.69
291.64
3567.08
421.00
3146.08
1.21
1915.33
5062.62
2605.98
228.53
1312.76
4147.27
185.95
58.00
671.40
915.35
Rs.
3016.57
36.37
3052.94
2578.32
167.89
2746.21
306.73
109.77
196.96
1334.62
279.01
1055.61
0.70
1565.49
2621.80
831.74
163.54
1055.53
2050.81
166.74
3.00
401.25
570.99
1981
$
328.35
3.96
332.31
280.65
18.27
298.92
33.39
11.95
21.44
145.27
30.37
114.90
0.08
170.40
285.38
90.53
17.80
114.90
223.23
18.15
0.32
43.68
62.15
3
DIRECTORS' REPORT
To the Members,
Your Directors have pleasure in submitting the 12th Annual Report together with the
Audited Statement of Accounts for the year ended 31st December, 1985.
1. Financial Results:
Gross Profit
Of the above, the following Provisions and/or
Appropriations have been made:
(a) Depreciation
(b) Investment Allowance Reserve
(c) Taxation Reserve
(d) Differential Dividend pertaining to previous year
There remains a balance of
Adding thereto:
(In million)
1985
1984
Rs.
$
Rs.
$
1087.97
89.43
952.72
76.31
374.60
30.79
341.73
27.37
228.00
18.74
291.50
73.35
100.00
0.51
8.22
0.04
––
––
––
––
703.11
57.79
633.23
50.72
384.86
31.64
319.49
25.59
(a) Balance brought forward from previous year
149.09
12.25
21.23
(b) Transfer from Investment Allowance (Utilised) Reserve
––
––
3.04
Sub-total
149.09
12.25
24.27
1.70
0.24
1.94
Deducting therefrom net effect of reversal of interest
capitalised (See Note No. 14 of Schedule 'N')
Less: Recommended Dividends (subject to deduction of tax)
(a) On 11% Cumulative Redeemable Preference Shares
(b) On 15% Cumulative Redeemable Preference Shares
(c) On Equity Shares
Retained Profits
81.28
67.81
6.68
5.57
––
––
24.27
1.94
452.67
37.21
343.76
27.53
0.33
8.25
0.03
0.68
0.33
7.43
0.02
0.60
248.94
20.46
154.41
12.37
257.52
21.17
162.17
12.99
195.15
16.04
181.59
14.54
Less : Transferred to General Reserve
50.00
4.11
32.50
2.60
Balance carried to Balance Sheet
145.15
11.93
149.09
11.94
4
2. Dividends:
Your Directors have recommended the following dividends (subject to deduction of
tax) for the year ended 3st December, 1985, to be paid, if approved by the
Shareholders at the ensuing Twelfth Annual General Meeting.
On Preference Shares:
(a) A dividend of Rs. 11/- ($ 0.90) per share on 30,000 Cumulative
Redeemable Preference Shares of Rs. 100/- ($ 8.22) each, fully
Paid-up.
(b) A dividend of Rs. 15/- ($ 1.23) per share on 5,50,000 Cumulative
Redeemable Preference Shares of Rs. 100/- ($ 8.22) each, fully
Paid-up
(A)
(In million)
Rs.
$
0.33
0.03
8.25
8.58
0.68
0.71
On Equity Shares:
(a) A dividend at the rate of Rs. 5/- ($ 0.41) per share on 4,61,79,669
Equity Shares of Rs. 10/- ($ 0.82) each, fully paid-up
230.94
18.98
(b) A dividend at the rate of Rs. 3.35 ($ 0.27) (pro-rata) per share on
53,33,333 Equity Shares of Rs. 10/- ($ 0.82) each, fully paid-up.
17.90
1.47
(c) A dividend at the rate of Rs. 2.45 ($ 0.20) (pro-rata) per share on
53,445 Equity Shares of Rs. 10/- ($ 0.82) each, fully paid-up.
0.10
0.01
(d) A dividend at the rate of Rs. 0.20 ($ 0.02) (pro-rata) per share on
42,871 Equity Shares of Rs. 10/- ($ 0.82) each, fully paid-up
Rs. 8,809($ 724).
(B)
TOTAL (A) + (B)
––
248.94
257.52
––
20.46
21.17
6
3.
Equity Shares for Debentures
In view of persistent requests from some Debentureholders of Series 1, 11, 111 and
IV who could not exercise their option for extinguishment of Debentures held by them
within the time stipulated, your Company approached the Controller of Capital Issues
Government of India, New Delhi, to extend the validity period of their permission. Your
Company has, consequent to the necessary approvals, issued 96,316 Equity Shares of
Rs. 10 ($ 0.82) each, aggregating Rs. 96.30 1$ 7.92) million to these Debentureholders.
Your Directors are pleased to state that out of the total outstanding face value of Rs.
735.00 ($ 60.42) million in the form of Debentures of Series I, II, III and IV, a sum of
Rs. 723.20 ($ 59.44) million have now been extinguished. The outstanding face value of
these Debentures not being significant, the Board of Directors of the Company have
proposed to redeem these Debentures and accordingly obtained an "in-principle" advice
from the Controller of Capital Issues in this regard. Requisite resolutions seeking consent
of the Shareholders and Debentureholders will be placed at their respective meetings to
give effect to this.
In terms of the issuance of Debentures of Series 'E', the Company issued 53,33,333
Equity Shares of Rs. 10 ($ 0.82) each at a premium of Rs. 40 ($ 3.29) per Share to the
holders of these Debentures upon partial conversion of the said Debentures on 30th
April, 1985.
4.
Issuance of Secured Debentures-Series 'F'
In order to finance a part of the capital expenditure for the enhancement of licenced
capacity for the manufacture of Polyester Filament Yarn and for the establishment of
new undertaking to manufacture Polyester Staple Fibre and Purified Terephthalic Acid
at Patalganga, as also to augment long term resources of the Company for meeting its
working capital requirements, the Company issued 15% Secured Redeemable Non-
Convertible Debentures of Rs. 100 ($ 8.22) each for-cash at par aggregating
8
Rs. 2700.00 ($ 221.94) million, inter alia, to the Company's Shareholders,
Debentureholders and Fixed Depositors. This Debenture Issue evoked unprecedented
response both from resident and non-resident investors, the overall subscription
exceeding a little over Rs. 3900.00 ($ 320.58) million establishing yet another corporate
record. Since the Company could retain only Rs. 2700.00 ($ 221.94) million as per
the permission granted by the Controller of Capital Issues, excess application money
was refunded. As required by the Controller of Capital Issues, the Directors certify
that the funds raised through these Debentures to the extent of Rs. 130.00 ($ 10.69)
million have been utilised only for working capital purpose and that these funds have
not been diverted for other purposes.
5.
5.1
Year in Retrospect
Overall Performance
The turnover during the year under review reached Rs. 7113.50 ($ 584.73) million
as against Rs. 6042.74 ($ 484.02) million in the previous year, an increase of 17.72%.
The gross profit also registered an increase of 25.58% viz. Rs. 1087.97 ($89.43) million
from Rs. 8(0.00 ($ 68.89) million (being the comparable amount after reversing the
interest that was capitalised in the previous year).
5.2
Textile Division
Water Jet Looms and Projectile Jacquard Weaving Machines installed in 1984 as
a part of modernisation programme at Ahmedabad are smoothly functioning. The
effluent treatment plant treating 4 million gallons of water per day costing Rs. 15.00
($1.23) million, the largest in the Textile Industry in India, was successfully
commissioned. With a view to monitor treatment of effluent on a regular basis, the
Company has reserved a plot of 1,500 Sq. Metres for growing cash crop by utilising
this treated water. The first reports are encouraging.
The Company has since enhanced the diesel generating capacity to 13MW as a
stand-by to meet any contingency of power shortage.
With the increased production the Company has opened additional retail outlets
and the total now exceeds 1,500.
10
5.3 Fibre Division
5.3.1 Polyester Yarn Division
Your Company had received an endorsement to enhance the licenced capacity
from 10,000 tonnes to 25,125 tonnes per annum. This has been implemented in the
third quarter of 1985. With this, the Company's profitability will further improve.
5.3.2 Polyester Staple Fibre Project
Your Company commissioned in March, 1986, its Polyester Staple Fibre Plant at
Patalganga (Maharashtra) with a licenced capacity of 45,000 tonnes per annum in
technical collaboration with E.l.DU-PONT DE NEMOURS AND COMPANY, U.S.A.,
in a record time of less than 14 months from the date of issue of Letter of Intent.
The Company's plants for the manufacture of Polyester are basically designed to
use solely Purified Terephthalic Acid (PTA) as a raw material from the beginning for
producing better quality products.
The benefits arising from this project will be reflected in the accounting year
1986 onwards.
6. Projects under Implementation
6.1 Textile Division
The Company has taken on hand the modernisation of Knitting and Twisting
Division involving a total outlay of Rs. 670.00 ($ 55.07) million. The Company has
already placed orders for imports of machinery of a value of Rs. 230.00 ($ 18.91)
million, the first of which consignment has already come and the balance are on way.
The modernisation of this Division of Naroda Project would contribute to further
improvement in the quality of fabrics, provide for an edge over competition, increase
the turnover and improve profitability.
6.2 Fibre Intermediates Division
6.2.1 Purified Terephthalic Acid (PTA) Project
The Company has taken greater strides in speedily setting up its PTA Plant of
licenced capacity of 75,000 tonnes per annum. The Project has progressed faster with
the guidance of the technical collaborators, Messrs. Imperial Chemical Industries,
U.K. and UOP Processes International Inc., U.S.A. The engineers from the
collaborators are guiding our project on a continuous basis with an objective to
commission the project by end of 1986.
On the project being commissioned, the Company will be producing this product
for the first time in the country The Company would thereby substantially save Foreign
Exchange by way of import substitution as a part of a package of projects taken up for
'import substitution'.
6.2.2 Mono Ethylene Glycol (MEG) Project
As you are aware, the Company proposes to set up a project for manufacture of
Mono Ethylene Glycol (MEG), a vital raw material required for the Polyester Industry,
with a licenced capacity of 40,000 tonnes per annum. The Company has taken suitable
steps for implementing this project.
12
6.3 Detergent Intermediates Division
6.3.1 Linear Alkyl Benzene (LAB) Project
As a part of the diversification programme, the Company has initiated first of
such projects, viz. LAB for the manufacture of 50,000 tonnes per annum of raw material
required for the manufacture of Synthetic Detergents. Presently there is an estimated
demand for this product at 1,40,000 tonnes per annum. This is expected to improve
upon the projected increase in the manufacture of Synthetic Detergents which has
been accepted as a superior washing material to conventional soaps. This project is
being set up in technical collaboration with UOP Processes International Inc., U.S.A.
The Company has already taken adequate steps to speedily effect the commissioning
of this project.
6.4 Plastics Division
The Company has received Letters of Intent for manufacture of High Density
Polyethylene (HDPE) of 50,000 tonnes per annum and Poly Vinyl Chloride (PVC) of
1,00,000 tonnes per annum. These projects are proposed to be set up at Hazira, in the
State of Gujarat. The Company is taking effective steps to implement these proposals.
7. Chemicals and Plastics Division of Union Carbide (India) Limited
On account of delays in obtaining various approvals for the takeover of the assets
of the Chemicals and Plastics Division of Union Carbide (India) Limited, situated at
Anik Chembur, Bombay, the Company called off that proposal with the consent of
Union Carbide (India,) Limited.
8. Subsidiary Company
Devti Fabrics Limited, a Company incorporated earlier, has become the Subsidiary
of the Company on 30th September, 1985 and has taken over the running business of
the Sidhpur Unit with effect from 1st October, 1985.
In compliance with the provisions of Section 212 of the Companies Act, 1956,
the audited Statement of Accounts along with the Directors' Report of Devti Fabrics
Limited for the year ended 30th September, 1985, are annexed.
9. Research and Development
The Research and Development wing of the Company at Ahmedabad has worked
on different projects such as Catalytic Fading of Disperse Dyes, Discharge/Resist
Printing on Polyester and its blends, behaviour of Disperse Dyes during High
Temperature Fixation and Acretic Size Recovery to reduce load on effluent.
At Patalganga, the Research and Development Division laid special emphasis for
conservation of energy. It also worked on programmes for development of products
such as octalobal yarn, trilobal yarn and flat yarn.
A sum of Rs. 1.10 ($ 0.09) million has been spent towards capital expenditure
during the year making the total capital expenditure to Rs. 26.60 ($ 2.19) million so
far on Research and Development facilities. A revenue expenditure of Rs. 10.70 ($0.88)
million has also been incurred during the year under review on research. and
development. These amounts have been reflected under various heads in the Annual
Accounts.
14
10. Insurance
All the properties and insurable interest of the Company including buildings,
plant and machinery, stocks, wherever necessary and to the extent required, have been
adequately insured.
11. Fixed Deposits
The Company's Fixed Deposit Scheme. inter alia, providing for acceptance of
deposits under Cash Certificate Scheme, continues to enjoy support of the investing
public.
Deposits of Rs. 1.60 ($ 0.13) million which became due for repayment on or
before, 31st December, 1985 were not claimed by the depositors as on that date. Of
these, deposits of Rs. 0.70 ($ 0.06) million have been repaid/renewed.
12. Personnel
Information as per sub-section (2-A) of Section 217 of the Companies Act, 1956
.read with the Companies (Particulars of Employees) Rules, 1975 forming part of the
Directors' Report for the year ended 31st December, 1985 is annexed.
13. Directors
Shri R. L. Meswani, an Executive Director expired on 30th August, 1985. No..
words; can match the warmth of his presence in office. his pleasing manners, dexterity
and above all, the dedicated support he gave to the Company. With profound grief,
the Directors put on record the invaluable services rendered by late Shri R. L. Meswani
from the inception of the Company as a Founder Director.
The Industrial Credit and Investment Corporation of India Limited has nominated
Shri V. V. Divecha in place of their earlier nominee Shri R. R. Hirway who expired in
May 1985. General Insurance Corporation of India Limited has also nominated Shri
R. V. Madhava Rao in place of their earlier nominee Shri K. S. Shenoy. The Board of
Directors have placed on record their grateful appreciation for the invaluable
contributions made by the aforesaid Directors during their tenure as Directors in the
Company.
Shri N. H. Ambani, Shri A. D. Ambani and Shri M. D. Ambani, Executive
Directors of the Company, retire by rotation as required by the Companies Act, 1956
and as per the provisions in the Articles of Association of the Company and are eligible
for re-appointment.
14. Auditors
Messrs. Rajendra & Company and Messrs. Chaturvedi & Shah, Statutory Auditors
of the Company hold office until the conclusion of the ensuing Annual General Meeting
and are recommended for re-appointment. The Company has received certificates from
these Auditors to the effect that their re-appointment, if made, would be within the
prescribed limits under Section 224(1) of the Companies Act. 1956.
Shri Rajendra J. Shah, Proprietor of Messrs. Rajendra & Company, Chartered
Accountants and a joint Auditor of the Company is a relative of Shri Jayantilal R.
Shah, a Director of the Company. Your attention is, therefore, invited to the Explanatory
Statement to item No. 7 annexed to the Notice convening the 12th Annual General
Meeting.
18
The Notes to the Accounts Nos. 8 and 14 referred to' in the Auditors' Report are
self-explanatory and therefore do not call for any further comments.
15. Cost Auditor
The Central Government has directed that an audit of the cost accounts maintained
by the Company for the year ended 31st December 1985 relating to the manufacturing
activities at-Sidhpur be carried out. Pursuant to Section 233-B of the Companies Act,
1956, Shri Kaushik K. Shah, a practising Cost Account a was appointed as Cost Auditor
to conduct the cost audit.,
16. Appreciation
Your Directors' acknowledge with. gratitude' the co-operation and assistance given
by the Financial Institutions,. Banks and Investors during the year under review.
Your Directors wish to place on record their deep sense of appreciation of the
devoted services rendered by executives, staff and workers of the Company for its
success
For and on behalf of the Board
R. H. AMBANI
Joint Managing Director
Bombay
Dated: 4th April, 1986
M. L. BHAKTA
Director
20
BALANCE SHEET AS AT 31ST DECEMBER, 1985
1985
(in Million)
1984
SOURCES OF FUNDS:
Shareholders' Funds:
Capital
Reserves and Surplus
Loan Funds:
Secured Loans
Unsecured Loans
Total
APPLICATION OF FUNDS:
Fixed Assets:
Gross Block
Less: Depreciation
Net Block
Investments
Schedule
Rs.
$
Rs.
$
Rs.
1 $
Rs.
S
‘A’
‘B'
‘C’
‘D’
‘E’
‘F’
574.09
2537.08
47.19
208.55
5537.40
819.05
455.17
67.33
519.80
1944.11
41.64
155.72
3111.17
255.74
2463.91
197. 36
1992.28
448.28
159.58
35.91
6356.45
9467.62
522.50
778.24
2440.56
4904.47
195.49
392.85
7356.86
1288.77
604.74
105.94
5309.29
1046.44
425.27
83.82
6068.09
372.98
498.80
30.66
4262.85
1.70
341.45
0. 14
Current Assets, Loans and Advances:
Current Assets:
Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets
`G'
Loans and Advances
`H'
Less: Current Liabilities and Provisions:
`I'
Liabilities
Provisions
Total
Notes and Contingent Liabilities
‘N’
1475.86
1094.12
1263.48
4.58
3838.04
182.92
4020.96
121.32
89.94
103.86
0.37
315.49
15.03
330.52
735.54
258.87
994.41
60.46
21.28
81.74
1277.59
917.15
90.05
1.87
2286.66
67.40
2354.06
102.34
73.46
7.21
0.15
183.16
5.40
188.56
1548.48
165.66
1714.14
124.03
13.27
137.30
3026.55
248.78
9467.62
778.24
639.92
4904.47
51.26
392.85
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
R. H. AMBANI
Joint Managing Director
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
BOMBAY,
Dated: 4th April, 1986.
22
K. GOPAL RAO
J. R. SHAH
M. L. BHAKTA
V. V. DIVECHA
N. H. AMBANI
M. D. AMBANI
A. D. AMBANI
Directors
Executive Directors
V. M. AMBANI
Secretary
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 1985
INCOME:
Sales (Net)
Other Income
Increase/Decrease in stocks
EXPENDITURE:
Purchases
Manufacturing and other expenses
Interest
Depreciation
Schedule
‘J’
‘K’
‘L’
‘M’
Rs.
7113.50
49.39
135.00
532.53
5432.92
244.47
374.60
$
584.73
4.06
11.10
43.77
446.59
20.10
30.79
Reliance
(In million)
1984
Rs.
$
1985
Rs.
$
Rs.
6042.74
71.11
(–)92.89
$
484.02
5.70
(–)7.44
7297.89
599.89
6020.96
482.28
586.93
4255.15
226.16
341.73
47.01
340.84
18.12
27.37
6584.52
713.37
149.09
541.25
58.64
12.25
––
––
––
862.46
81.28
781.18
––
70.89
6.68
64.21
5409.97
610.99
21.23
433.34
48.94
1.70
3.04
0.24
––
635.26
––
50.88
––
––
635.26
50.88
0.51
100.00
0.04
8.22
228.00
18.74
8.58
248.94
50.00
0.71
20.46
4.11
––
––
––
––
291.50
23.35
7.76
154.41
32.50
0.62
12.37
2.60
636.03
145.15
52.28
11.93
486.17
149.09
38.94
11.94
Profit for the year
Balance as per last Balance Sheet
Transfer from Investment Allowance,
(Utilised) Reserve
Excess Provision for Directors'
Remuneration (Rs. 42,493) ($ 3493)
(Previous Year Rs. Nil) ($ Nil)
written back
Less: Net effect of reversal of capitalisation
of Interest on Fixed Assets (Refer
Note No. 14 of Schedule 'N').
APPROPRIATIONS:
Differential Dividend pertaining to
Previous Year
Transfer to Taxation Reserve
(Refer Note No. 15 of Schedule N)
Transfer to Investment Allowance
Reserve
Proposed Dividend (subject to 'tax) on:
Preference Shares
Equity Shares
Transfer to General Reserve
Balance carried to Balance Sheet
Notes and Contingent Liabilities
‘N’
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
R. H. AMBANI
Joint Managing Director
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
BOMBAY,
Dated: 4th April, 1986.
K. GOPAL RAO
J. R. SHAH
M. L. BHAKTA
V. V. DIVECHA
N. H. AMBANI
M. D. AMBANI
A. D. AMBANI
Directors
Executive Directors
V. M. AMBANI
Secretary
23
Schedule -`A' forming part of the Balance Sheet
SHARE CAPITAL
Authorised:
7,50,00,000 Equity Shares of Rs. 10/- ($ 0.82) each
30,000
11% Cumulative Redeemable Preference Shares
of Rs,. 100/- ($ 8.22) each
5,50,000
15% Cumulative Redeemable Preference Shares
of Rs. 100/- ($ 8.22) each
4,20,000 Cumulative Redeemable Preference Shares
of Rs. 100/- ($ 8.22) each
1985
$
Rs.
(in million)
1984
$
Rs.
750.00
61.65
750.00
60.07
3.00
0.25
3.00
0.24
55.00
4.52
55.00
4.41
42.00
3.45
42.00
850.00
69.87
850.00
3.36
68.08
Issued & Subscribed:
5,16.09,318 Equity Shares of Rs. 10/- ($ 0.82) each fully paid-up
516.09
42.42
461.35
36.95
30,000
11% Cumulative Redeemable Preference Shares of Rs. 100/- ($ 8.22)
each fully paid-up (Redeemable at any time after 16th March 1990
but not later than 15th March 1993)
5,50,000
15% Cumulative Redeemable Preference Shares
of Rs. 100/- ($ 8.22) each fully paid-up (Redeemable
at any time after 31st December 1994 but not later
than 31st December 1997)
Equity Shares of Rs. 10/- ($ 0.82) each fully
paid up (45,005 Equity Shares of Previous Year pending allotment
on account of consolidation of fractional coupons
3.00
0.25
3.00
0.24
55.00
4.52
55.00
4.41
––
––
0.45
0.04
574.09
47.19
519.80
41.64
Of the above Equity Shares:
(1)
(a) 1,56,62,923 Shares were allotted as fully paid-up Bonus shares by capitalisation of Share Premium and Reserves.
(b)
60,33,372 Shares were allotted as fully paid-up pursuant to Schemes of Amalgamation, without payments being
received in cash.
(c) 1,6 7,12,278 Shares were allotted as fully paid-up shares on conversion of Debentures and Term Loans.
(d) 1,01,24,675 Shares were issued in lieu of surrender of non-convertible portion of Debentures of Series 1, 11, Ill and IV.
(c)
44,941 Shares (including shares by way of Bonus) are reserved for allotment to some of the shareholders/purported
transferees of Shares of erstwhile Sidhpur Mills Company Limited (hereinafter referred as 'SMCL') pending
necessary approval of the concerned authorities/Gujarat High Court.
(2)
The Company will be required to issue and allot additional 18,667 Equity Shares of Rs. 10/- ($ 0.82) each at a
premium of Rs. 15/- ($ 1.23) per share to the shareholders of erstwhile 'SMCL' as Right shares if the High Court
of Bombay so decides..
24
Schedule -`B’ forming part of the Balance Sheet
RESERVES AND SURPLUS:
Capital Reserve :
As per last Balance Sheet
Less: Adjusted against Goodwill Account
$
Rs.
1985
$
0.03
0.03
Rs.
0.34
0.34
Rs.
0.34
––
Reliance
(In million)
$
Rs.
1984
$
0.03
––
Share Premium Account:
As per last Balance Sheet
Add: Additions during the year :
On Conversion of Debentures of 'E' Series
On Surrender of Debentures
(Refer Note No. 13 of Schedule W)
Development Rebate Reserve:
As per last Balance Sheet
Less: Transferred to General Reserve
Investment Allowance Reserve.
As per last Balance Sheet
Less: Utilised for purchase of Machinery during
the year -transferred to Investment
Allowance (Utilised) Reserve
––
––
0.34
0.03
624.80
51.36
213.33
5.92
17.53
0.49
8.77
0.70
––
616.03
––
49.34
844.05
69.38
624.80
50.04
0.96
0.96
0.08
0.08
2.79
1.83
0.22
0.14
––
––
0.96
0.08
291.50
23.96
277.50
22.23
291.50
23.96
––
––
277.50
22.23
––
––
291.50
23.35
228.00
18.74
291.50
23.35
Add: Transferred from Profit and loss Account
228.00
18.74
Investment Allowance (Utilised)
Reserve:
As per last Balance Sheet
Add: Transferred from Investment Allowance
Reserve
less: Transferred to Profit and Loss Account
(in respect of assets sold within the
prescribed period)
Taxation Reserve:
Transferred from Profit and Loss Account
General Reserve:
As per last Balance Sheet
Add: Amount transferred from:
Development Rebate Reserve
Profit and Loss Account
Profit and Loss Account
539.98
44.39
291.50
831.48
23.96
68.35
265.52
21.27
277.50
543.02
22.23
43.50
––
––
3.04
0.25
831.48
68.35
539.98
43.25
100.00
8.22
––
––
337.44
27.74
303.11
24.28
0.96
50.00
0.08
4.11
1.83
32.50
0.15
2.60
388.40
145.15
31.93
11.93
2537.08
208.55
337.44
149.09
27.03
11.94
1944.11
155.72
25
Schedule -`C' Forming part of the Balance Sheet
SECURED LOANS
1985
(In million)
1984
A. Working Capital Loans:
From Banks
B. Working Capital Term Loans:
From a Bank
C.
Debentures:
i)
11% Privately-placed Debentures of
Rs. 1000/- ($ 82.2) each fully paid
Less: Converted/Redeemed
ii)
11% Privately-placed Debentures of
Rs. 1000/- ($ 82.2) each fully paid
Less: Converted/Redeemed
iii) 11% Convertible Mortgage Debentures of
Rs. 500/- ($ 4 1. 1) each fully paid (Series-I)
Balance amount is redeemable at par in five,
annual instalments between 25th October,
1987 and 25th October 1991
Less: Converted/Surrendered'
iv) 12% Convertible Mortgage Debentures of.
Rs. 125/- ($ 10.27) each fully paid (Series 11)
Balance amount is redeemable at par in five
annual instalments between 14th November,
1988 and 14th November 1992
Less: Converted/Surrendered
Rs.
$
Rs.
$
Rs.
$
Rs.
$
380.04
31.24
285.09
22.84
5.74
0.47
17.07
1.36
3.50
3.50
––
5.50
5.50
––
0.29
0.29
––
0.45
0.45
––
3.50
2.80
0.70
5.50
3.38
2.12
0.28
0.22
0.06
0.44
0.27
0.17
70.00
68.93
1.07
5.76
5.67
0.09
70.00
68.38
1.62
5.61
5.48
0.13
108.00
106.88
1.12
8.88
8.79
0.09
108.00
106.21
1.79
8.65
8.51
0.14
v)
13.5% Convertible Mortgage Debentures of
Rs. 125/- ($ 10.27) each fully paid (Series 111)
Balance amount is redeemable at par in four
annual instalments between 23rd June 1990
and 23rd June, 1993
Less: Converted/Surrendered
Carried forward
26
240.00
234.89
5.11
7.30
19.73
19.31
0.42
240.00
232.64
7.36
19.22
18.63
0.59
0.60
385.78
31.71
13.59
1.09
302.16
24.20
Schedule -'C' (Contd.)
Rs.
$
Rs.
1985
$
Rs.
$
Rs.
Reliance
(In million)
1984
$
Brought forward
7.30
0.60
385.78
31.71
13.59
1.09
302.16
24.20
vi) 13.5% Convertible Secured
Debentures of Rs. 125/- ($ 10.27)
each, fully paid (Series-IV).
Balance amount is redeemable at par at the
end of 15th June 1994 with an option to
repay these amounts in one or more
instalments by drawing lots at any time
after the end of 15th June 1991
Less: Converted/Surrendered
vii) 13.5% Convertible Secured Debentures of
Rs. 150/- ($ 12.33) each, fully paid
(Series 'E') Balance amount is redeemable
at par at the end of 10th December 1996
with an option to repay these amounts in one
or more instalments by drawing lots at any
time after the end of 10th December 1993.
Less: Converted
viii) 15% Non-Convertible Secured Debentures
of Rs. 100/- ($ 8.22) each (Series `F')
(Refer Note No. 7 below)
500.00
495.50
4.50
41.10
40.73
0.37
500.00
492.08
7.92
40.05
39.42
0.63
800.00
266.67
533.33
65.76
21.92
43.84
800.00
––
800.00
64.08
––
64.08
2700.00
221.94
––
––
3245.13*
266.75
821.51
65.8.0
*Includes Debentures of Rs. 0.70 ($ 0.06) million
held by Directors
D. TERM LOANS:
From Banks:
1.
(a) Foreign Exchange Loan in
Euro-Currency at floating rate
(b) Loan from State Bank of India,
New York, Exim Bank U.S.A.
Line of Credit, Private Export
Funding Corporation of U.S.A.
and Sanva Bank Ltd., Tokyo,
Japan-
(c) Rupee Loans
Carried forward
617.18
50.73
222.16
17.80
199.70
27.84
844.72
844.72
16.41
2.29
69.43
264.33
38.67
525.16
21.17
3.10
42.07
69.43
3630.91
298.46
525.16
42.07
1123.67
90.00
27
Schedule -‘C' (Contd.)
Rs.
$
Rs.
1985
$
Rs.
$
Rs.
1984
$
(In million)
Brought forward
844.72
69.43
3630.91
298.46
525.16
42.07
1123.67
96.00
From Financial Institutions:
2.
(a) Foreign Currency Loans
(b) Rupee Loans
From Others:
3.
(a) Lazard Brothers & Co. Ltd., London
(b) Housing Development Finance Corporation Ltd.
E.
F.
BRIDGE LOANS:
1.
2.
From a Financial Institutions
From Housing Development
Finance Corporation Limited
DEFERRED PAYMENT LIABILITIES
To Foreign Machinery Suppliers
(Guaranteed by Banks and a Financial
Institution)
NOTES:
Of the above:
960.18
18.23
978.41
16.95
6.19
23.14
––
––
78.93
1.50
80.43
1.39
0.51
1.90
––
––
1846.27
151.76
200.48
21.91
222.39
28.64
––
28.64
11.90
4.00
16.06
1.76
17.82
2.29
––
2.29
0.95
0.32
776.19
62.18
––
––
15.90
1.27
60.22
4.95
5537.40
455.17
76.52
6.13
1992.28
159.58
1. Working Capital Loans from Banks are secured against hypothecation of present and future stock of raw materials, stock-in-process, finished goods.
spares and stores, book debts, outstanding monies and receivable claims.
2. Working Capital Term Loans represent working capital facilities originally granted by Bank of Baroda to the Sidhpur Mills Company Limited (amalgamated
with the Company). In terms of the Scheme of Amalgamation. a portion of the said facilities to the extent not covered by securities for Working Capital
Loans is to be converted into Term Loans, amount whereof is to he determined. Amount of the said Term Loan is to be secured by way of large on the
Fixed Assets situate at Sidhpur in the state of Gujarat.
3.
(a)
Debentures referred to in C(iii) are secured by mortgage of deposit of title deeds on the properties both situate at Baroda, District Ahmedabad.
in the state of Gujarat and Patalganga, District Raigad, in the state of Maharashtra.
(b)
(c)
Debentures referred to in C(iv), (vi) and (viii) and Term Loans referred to in D(1)(c) to the extent of Rs. 3.16 ($ 0.26) million. D(2)(a) to the
extent of Rs. 5.13 ($ 0.42) million and D(2)(b) to the extent of Rs. 18.23 ($ 1.50) million, are secured by legal mortgage in English form on the
properties situate at Naroda, District Ahmedabad in the state of Gujarat and mortgage by deposit of title deeds on the properties at Patalganga.
District Raigad, in the state of Maharashtra.
Debentures referred in C(vii) are secured by legal mortgage in English form on the properties situate at Naroda. District Ahmedabad. in the state
of Gujarat. These Debentures alongwith cumulative interest payable on the debentures referred to in C(viii) shall rank subsequent to the charges
created/to be created by the Company in favour of:
(I)
Trustee/Agents and Trustees for the holders of Debentures referred to in C(iii), C(iv), C(v) C(vi) and C(viii) and
(ii)
Other financial institutions/banks for their outstanding loans/guarantees and shall rank. pari passu with the Debentures referred in C(viii).
4. Debentures referred in CM, Term Loans referred in D(1)(a) to the extent of Rs. 432.56 ($ 3.55) million, D(1)(b), D(1)(c) to the extent of Rs. 18,75 ($
1.54) million, D(2)(a) to the extent of Rs. 955,05 ($ 78,50) million, D(3)(a)), and deferred payment liabilities in F are secured by deposit of title deeds
on the properties situate at Patalganga, District Raigad in the state of Maharashtra and are to he secured on the properties at Naroda, District Ahmedabad
in the state of Gujarat.
28
Reliance
Schedule -‘C' (Contd.)
5. Term Loans referred in:
(a) D(1)(a) to the extent of Rs. 184.62 ($ 15.17) million are secured exclusively by hypothecation of specific items of plant and machinery situate
at Naroda and Patalganga.
(b) D(1)(c) to the extent of Rs. 5.93 ($ 0.49) million are secured/to he secured by hypothecation of all moveable machinery including all stock and
spare parts both present and future situate only at Sidhpur. The charges shall rank pari passu inter se with the charge referred in Note 2.
(c) D(3)(b) are to be secured by a charge on the residential quarters situate at Panvel, District Raigad, in the state of Maharashtra.
6. The charges created/to be created on the Debentures, term loans, and deferred payment liabilities referred to in (c). (d) and (0 above would rank
pari passu, inter se, save and except:
(i)
(ii)
Debentures referred in C(vii) and cumulative interest payable on Debentures referred in C(viii) relating to cumulative interest payments
scheme.
Term loans referred in D(1)(a) D(1)(c) to the extent of Rs. 184.62 ($ 15.17) million and Rs. 5.93 ($ 0.49) million respectively subject to
the prior charges on the current assets in favour of the Banks for working capital facility.
(a) The Debentures referred in C(viii) above are redeemable at a premium of 5% of the face value of each Debenture. Of the aforesaid Debentures,
the Debentures issued under non-cumulative interest payment scheme are redeemable on 30th September, 1992 and the Debentures issued under
cumulative interest payment scheme are redeemable in three yearly instalments commencing from 30th September. 1992 by draw of lots.
(b) The Company is required to buy back at par the said Debentures provided; (i) The face value of the total holding of the debentureholder in each
case does not exceed Rs. 40,000 ($ 3,288) and (ii) The debentureholder has held the debentures for a period of not less than one year on the date
of his offer. The Company can re-issue at par such bought-back debentures.
(c) The Debentures referred in C(viii) includes, 97,47,320 Debentures reserved for allotment to non-resident Indians since permission received
subsequently.
Schedule -`D’ forming part of the Balance Sheet
UNSECURED LOANS
Fixed Deposits
[Including Cash Certificates of Rs. 115.62 ($ 9.50) million]
From Unit Trust of India
Advance against debentures to be privately
placed with Unit Trust of India, pending
approval of concerned Authorities
From Scheduled Banks
Overdrawn balance in Current Accounts
(As per Books of Accounts)
*Includes deposits of Rs. 235.50 ($ 19.36) million, repayable within one year.
1985
Rs.
$
Rs.
(In million)
1984
$
697.92
*
57.37
*
446.95
35.80
121.13
9.96
––
––
––
––
1.33
0.11
819.05
67.33
448.28
35.91
29
Schedule -‘E' forming part of the Balance Sheet
FIXED ASSETS
(In million)
NATURE OF FIXED ASSETS
GROSS BLOCK (AT COST)
DEPRECIATION
NET BLOCK
Goodwill
Leasehold Land
Freehold land
Buildings
Railway Siding
Plant &.Machinery
Electric Installation
Factory Equipments
Furniture & Fixtures
Vehicles
Capital Expenditure pending
allocation and advance against
Capital Expenditure
Previous Year
NOTES:
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Rs.
$
As at
1.1.85
12.62
1.04
31.78
2.61
1.15
0.10
416.66
34.25
0.05
0.01
4547.71
373.82
70.56
5.80
33.28
2.74
73.53
6.04
13.52
1.11
108.43
8.91
5309.29
436.43
4057.24
324.98
Additions/
transfers
Deductions/
transfers
As at
31.12.85
Total upto
31.12.85
As at
31.12.85
As at
31,12.84
––
––
15.32
1.26
––
––
144.57
11.88
––
––
2042.75
167.91
106.96
8.79
7.03
0.58
23.34
1.92
7.32
0.60
1119.67
92.04
3466.96
1284.98
1935.81
155.06
0.34
0.03
––
––
––
––
54.23
4.46
0.05
0.01
1245.45
102.37
7.11
0.58
1.41
0.12
0.46
0.04
1.91
0.15
108.43
8.91
1419.39
116.67
683.76
54.77
12.28
1.01
47.10
3.87
1.15
0.10
507.00
41.67
––
––
5345.01
439.36
170.41
14.01
38.90
3.20
96.41
7.92
18.93
1.56
1119.67
92.04
7356.86
604.74
5309.29
425.27
––
––
––
––
––
––
32.45
2.67
––
––
1221.10
100.37
12.97
1.07
6.19
0.51
12.65
1.04
3.41
0.28
––
––
1288.77
105.94
1046.44
83.82
12.28
1.01
47.10
3.87
1.15
0.10
474.55
39.00
––
––
4123.91
338.99
157.44
12.94
32.71
2.69
83.76
6.88
15.52
1.28
1119.67
92.04
6068.09
498.80
4262.85
341.45
12.62
1.01
31.78
2.54
1.15
0.09
390.00
31.23
––
––
3555.35
284.78
60.71
4.86
28.51
2.29
63.91
5.13
10.36
0.83
108,43
8.69
4262.85
341.45
(a) Leasehold Land includes Rs. 6.95 ($ 0.57) million in respect of which lease-deeds are pending execution. No write-off has been made in respect of lease-premium
paid for leasehold land since the grant of lease is for a long period.
(b) Buildings includes (i) under-construction Rs. 147.77 ($ 12.15) million and (ii) cost of ownership premises in Co-operative Societies Rs. 2.34 ($ 0.19) million.
(c)
Plant and Machinery includes (i) Rs. 1296.19 ($ 106.55) million under-installation and (ii) Rs. 44.71 ($ 3.67) million in-transit.
(d) Electric instillation includes Rs 39.79 ($ 3.27) million under-installation.
(c)
(f)
Factory Equipments includes Rs. 3.11 ($ 0.26) million under-instillation.
Furniture and Fixtures includes Rs. 1.08 ($ 0.09) million against work-in-progress.
(g) Capital Expenditure pending allocation consists Rs. 737.61 ($ 60.63) million on account of Advance against Capital expenditure [previous year Rs. 107.89 ($
8.87) million) and Rs. 382.03 ($ 31.40) million on -account of pre-operative expenses as per Note No. 16 of Schedule ‘N’.
(h) Depreciation is provided in -accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956. Depreciation in respect of Fixed Assets
installed. and put to use during the year is charged on pro rata basis with reference to the period of use.
(i) Deductions includes Rs. 1272.08 ($ 104.56) million on account of reversal of capitalisation of interest (Refer Note No. 14 of Schedule W) and Rs. 13.90
($ 1.14) million on account of transfer/sale of certain assets to Devti Fabrics Limited, a wholly owned subsidiary of the Company.
(j) Additions during the year includes assets -acquired of Rs. 1.07 ($ 0.09) million for Research and Development.
30
Schedule ‘F’ forming part of the Balance Sheet
INVESTMENTS (AT COST)
Rs.
$
Rs.
1985
$
Rs.
$
Rs.
1984
$
Reliance
Government and Other
Securities
Quoted
3% Conversion Loan of 1946 - [face value
Rs. 47,000 ($ 3,863.40) (Deposited with
Central Excise Collectorate]
Unquoted
7 Years National Savings Certificate
(face value Rs. 20,100) ($ 1652.22)
(Deposited with Central Excise
Collectorate)
28,000 2,301.60
20,100 1,652.22
28,000 2,242.80
48,100
3,953.82
1,07,100 8,578.71
79,100 6,335.91
Trade Investments - Unquoted:
6 Equity Shares of New Piece Goods
Bazar Co. Ltd. of Rs. 1000/- ($ 82.20)
each, fully paid-up
5 Equity Shares of Bombay Gujarat Art
Silk Vepari Mahajan Co-operative
Shops & Warehouses Society Ltd. of
Rs. 200/- ($ 16.44) each, fully paid up
165 Shares of The Art Silk Co-operative.
Limited of Rs. 100/- ($ 8.22) each
fully paid-up
225 Shares of Crimpers Industrial
Co-operative Society Limited of
Rs. 100/- ($ 8.22) each, Rs. 25/- ($ 2.05)
per share paid-up
20 Shares of the Bombay Market Art
Silk Co-operative (Shops and
Warehouses) Society Ltd., of Rs. 200/
($ 16.44) each, fully paid-up
4,980 Shares of Hindustan Oil
Exploration Co. Ltd. of Rs. 100/-
($ 8.22) each, fully paid-up
In Subsidiary Company
(Body Corporate under the same
Management)
2,10,070 Equity Shares of Devti Fabrics
Limited, of Rs. 10/- ($ 0.82) each, fully
paid-up
Carried forward
17,000 1,397.40
17,000 1,361.70
1,000
82.20
1,000
80.10
16,500 1,356.30
16,500 1,321.65
5,625
462.38
5,625
450.56
4,000
328.80
4,000
320.40
4,98,000 40,935.60
5,42,125
44,562.68
5,42,125 43,424.21
4 98,000 39,889.80
21,00,700
1,72,677.54
26,90,925
2,21,194.04
6,49,225 52,002,92
31
Schedule -‘F' (Contd.)
INVESTMENTS (AT COST)
Brought forward
Rs.
$
Rs.
26,90,925
$
2,21,194.04
1985
Rs.
1984
$
Rs.
$
6,49,225 52,002.92
Other Investments.
(i) In Shares
Quoted:
5,000 Equity Shares of Housing
Development Finance Corporation
Ltd. of Rs. 100/- ($ 8.22) each,
fully paid-up
1,000 Equity Shares of Air Control &
Chemicals Engineering Co. Ltd., of
Rs. 100/- ($ 8.22) each, fully paid-up 55,000
3.332 Equity Shares of The Industrial
Credit & Investment Corporation
of India Ltd., of Rs. 100/- ($ 8.22)
each, fully paid-up
3,33,200
5,00,000
41,100.00
4,521.00
27,389.04
5,00,000 40.050.00
55,000
4.405.50
8,88,200
73,010.04
5,55,000 44,455.50
––
––
(ii) In Units
Unquoted :
2,82,50.000 Units of Unit Trust of
India of Rs. 10/- ($ 0.82) each
(iii) In Debentures
Quoted:
1,666 14% Unsecured Convertible
Debentures of The Industrial Credit
& Investment Corporation of India
Ltd. of Rs. 100/- ($ 8.22) each,
fully paid-up
36,92,32,911 3,03,50,945.28
1,66,600
13,694.52
37,29,78,636 3,06,58,843.88
Aggregate Value of
1985
4,99,800 40,033.90
17,04,025
1,36,49
(In million)
1984
Quoted Investments
Unquoted Investments
Book
Value Market
Value
Book
Value Market
Value
Rs.
$
Rs.
$
Rs.
$
RS.
$
1.08
0.09
0.96
0.08
371.90
30.57
––
––
1.08
0.62
0.09
0.05
0.96
0.08
––
––
During the year, the Company purchased 4,84,00,000 Units [face value Rs. 10/- ($ 0.82) each] of Unit Trust of India for Rs, 632.56
($ 52.00) million and sold 2,01,50,000 Units for Rs. 275.68 ($ 22.66) million. The Company also purchased 8% Loan 2011 of
Government of India -and 11.5% Central Loan 2015 for Rs. 150.17 ($ 12.34) million. and Rs. 49.72 ($ 4.09) million respectively and
has sold the same for Rs. 150.70 ($ 12.39) million and Rs. 49.89 ($ 4.10) million respectively.
32
Schedule -‘G’ forming part of the Balance Sheet
CURRENT ASSETS
1985
Reliance
(in million)
1984
Inventories
(at cost-except otherwise stated)
(Certified and valued by the Management)
Stores, Spares, Dyes, Chemicals, etc.
Raw Materials
Stock-in-transit
Stock-in-process
Finished Goods
Others [includes de-commissioned
machinery Rs. 0.59 ($ 0.05) million at
written-down value and Trial-run stock
of Rs. 0.51 ($ 0.04) million at the net
estimated realisable value]
Sundry Debtors (Unsecured)
Over Six months:
Considered good
Considered doubtful
Less: Provision for doubtful debts
Others, considered good
Cash and Bank Balances
Cash on hand
Rs.
$
Rs.
$
Rs.
$
Rs.
5
161.40
506.49
0.66
406.51
368.29
13.27
41.63
0.06
33.42
30.27
119.84
469.49
15.74
341.44
329.57
9.60
37.61
1.26
27.35
26.40
32.51
2.67
1.51
0.12
1475.86
121.32
1277.59
102.34
88.60
16.85
105.45
16.85
88.60
1005.52
7.28
1.39
8.67
1.39
7.28
82.66
95.86
10.37
106.23
10.37
95.86
821.29
7.68
0.83
8.51
0.83
7.68
65.78
1094.12
89.94
917.15
73.46
2.65
0.22
1.74
0.14
Balances with Scheduled Banks:
In current accounts [includes excess
Share and Debenture application monies
refundable-Rs. 1.81 ($ 0.15) million]
In Fixed Deposit Accounts [includes
Rs. 0.25 ($ 0.02) million lodged with Central
Excise Authorities and Rs. 0.20 ($ 0.02) million
endorsed in favour of the Bankers)
1222.75
Cost of Import Entitlements:
(Under Export Promotion Scheme)
38.08
3.13
73.51
5:89
100.51
14.80
1.18
1263.48
103.86
4.58
0.37
90.05
7.21
1.87
0.15
3838.04
315.49
2286.66
183.16
33
Schedule -‘H’ forming part of the Balance Sheet
LOANS & ADVANCES
Unsecured.- Considered Good
Advances to a wholly owned subsidiary Company -
Devti Fabrics Limited [maximum balance
during the year Rs. 10.02 ($ 0.82) million]
Advances recoverable in cash or in kind or for
value to be received [includes Rs. 0.12 ~$ 0.01)
million from Officers- maximum balance during
the year Rs. 0.15 ($ 0.01) million]
Deposits [including Rs. 8,550/- ($ 703) with a firm
in which some of the Directors are interested
as Partners-amount since recovered
Prepaid Expenses
Balances with Customs, Central Excise Authorities, etc.
*Excluding Rs. 1.66 ($ 0.14) million considered doubtful and provided for
Schedule - ‘I’ forming part of the Balance Sheet
CURRENT LIABILITIES & PROVISIONS
1985
(in million)
1985
1984
Rs.
$
Rs.
$
10.02
0.82
––
––
86.71
*
7.12
*
33.56
2.69
62.38
3.00
20.81
5.13
0.25
1.71
182.92
15.03
23.16
2.44
8.24
67.40
1.86
0.19
0.66
5.40
(In million)
1984
Rs.
$
Rs.
$
Rs.
$
Rs.
$
17.81
388.73
8.81
318.38
*
1.46
31.96
0.72
26.17
*
14.72
355.05
6.84
1158.86
1.18
28.44
0.55
92.82
1.81
0.15
13.01
1.04
735.54
60.46
1548.48
124.03
1.35
257.52
0.11
21.17
3.49
162.17
0.28
12.99
258.87
994.41
21.28
81.74
165.66
13.27
1714.14
137.30
Current Liabilities:
Sundry Deposits
Sundry Creditors
Unclaimed Dividends
Interest accrued but not due on Loans
[Previous year Rs. 145.33 ($ 11.95) million]
Excess Share and Debenture Application
Monies refundable
Provisions:
Gratuity and Superannuation Funds
Proposed Dividends
*Payable within one year
34
Schedule - ‘J’ forming part of the Profit and Loss Account
OTHER INCOME
Incentives, Assistance & Drawbacks on
Exports received
Processing Charges
Dividend (Gross)
On Other Investments
Tax at source Rs. 14,850 ($ 1221)
Profit on sale/discard of Assets (Net)
Miscellaneous Income
Profit on sale of Investments
Schedule -‘K’ forming part of the Profit and Loss Account
Reliance
(In million)
1985
1984
$
Rs.
IS,
0.50
––
5.48
29.19
0.01
––
3.45
0.10
4.06
0.06
1.16
35.22
––
71.11
0.44
2.34
0.01
0.09
2.82
––
5.70
Rs.
6.05
––
0.07
––
41.97
1.30
49.39
(In million)
INCREASE IN STOCKS
1985
1984
Rs.
$
Rs.
$
Rs.
$
Rs.
$
Stock-in-Trade (at close):
Finished Goods
Stock-in-process
Others
Stock-in-Trade (at commencement):
Finished goods
Stock-in-process
By-product
Others
368.30
406.51
31.40
30.27
33.42
2.58
329.57
341.44
––
0.20
27.09
28.06
––
0.02
329.57
341.44
0.20
26.40
27.35
0.01
806.21
66.27
671.21
53.76
409.38
353.44
0.14
0.54
32.79
28.31
0.06
0.04
671.21
55.17
135.00
11.10
764.10
61.20
(-)92.89
(-)7.44
35
Schedule -‘L’ forming part of the Profit and Loss Account
MANUFACTURING & OTHER EXPENSES
1985
Rs.
$
Rs.
$
Rs.
$
Rs.
1984
$
(In million)
Raw Materials Consumed:
Stock at commencement
Add : Purchases
Less : Stock at close
469.49
2271.09
2740.58
506.49
Manufacturing Expenses:
Carriage Inward
Stores & Spare parts consumed
Dyes & Chemicals
Electric Power, Fuel & Water
Machinery Repairs
Building Repairs
Labour, Processing & Machinery Hire Charges
Excise Duty on Yarn
18.81
83.72
173.85
244.99
9.72
4.90
78.03
1970.18
38.59
186.68
225.27
41.63
1.55
6.88
14.29
20.14
0.80
0.40
6.41
161.95
2234.09
183.64
1619.43
129.72
284.01
1804.91
2088.92
469.49
15.04
70.84
148.96
191.06
6.54
3.97
67.19
1575.35
22.75
144.57
167.32
37.60
1.20
5.67
11.93
15.31
0.52
0.32
5.38
126.19
Payments to & Provision for Employees:
Salaries, Wages & Bonus
Contribution to Provident Fund, Gratuity
Fund, Superannuation Fund, Employees'
State Insurance Scheme, Pension Scheme,
Labour Welfare Fund, etc.
Employees' Welfare and Other Amenities
Sales & Distribution Expenses:
Samples, Sales Promotion &
Advertisement Expenses
Brokerage & Commission
Export Expenses
Packing Expenses
Warehousing Charges
Freight & Forwarding Charges
Establishment Expenses:
Insurance
Rent
Rates & Taxes
Other Repairs
Travelling Expenses [including Rs. 1.70
($0.14) million for Directors]
Payments to auditors
Directors' Fees
General Expenses
Provision for doubtful recoveries
Charity & Donation
Loss on Sale/Discard of Assets
2584.20
212.42
2078.95
166.52
144.26
11.86
142.13
11.38
21.47
26.92
1.77
2.21
17.13
19.04
1.37
1.53
192.65
15.84
178.30
14.28
26.13
46.84
0.08
116.24
7.00
24.14
16.87
4.28
1.64
6.37
13.43
1.47
0.01
140.65
6.48
5.76
4.59
2.15
3.85
0.01
9.55
0.57
1.99
1.39
0.35
0.14
0.52
1.10
0.12
––
11.56
0.53
0.48
0.38
220.43
18.12
36.41
38.96
0.14
109.49
3.43
26.36
13.16
3.90
0.78
4.67
9.68
0.84
0.01
123.48
2.91
4.25
––
2.92
3.12
0.01
8.77
0.27
2.11
1.06
0.31
0.06
0.38
0.78
0.07
––
9.89
0.23
0.34
––
214.79
17.20
201.55
16.57
5432.92
446.59
163.68
13.12
4255.15
340.84
36
Schedule -‘M’ forming part of the Profit & Loss Account
INTEREST
Debentures
Fixed Loans
Others (Net)
Reliance
(In million)
1985
$
5.57
14.28
0.25
Rs.
26.62
119.23
80.31
1984
$
2.13
9.55
6.44
Rs.
67.76
173.74
2.97
244.47
20.10
226.16
18.12
Schedule -‘N’ forming part of the Profit & Loss Account and Balance Sheet
NOTES AND CONTINGENT LIABILITIES
1.
2.
The previous year's figures have been regrouped wherever necessary.
Opening balances (in dollars) do not necessarily tally with the closing balances of the previous year in the similar accounts.
The same is due to differences in the Rs./$ exchange rate during this year as compared to those in the previous year.
1985 ...$ 8.22 = Rs. 100/-
The exchange rates are as follows:
1984... $ 8.01 = Rs. 100/-
Interest on overdue bills and delayed payment charges on loans
The Company is accounting the following on cash basis:
Export incentives and other claims
3.
(a)
(b) Claims for refunds of custom duty, sales tax, insurance, octroi etc.
(c)
(d) Drawback on return of cops
Income on investments
(c)
Excise Duty set off
(f)
Performance incentives on sales
(g)
Liability in respect of maturity value in excess of initial investment of Cash Certificates issued by the Company under
(h)
Fixed Deposit Scheme.
Premium on redemption of Debentures of Series `F'
Interest -Others (Net) is arrived at after deducting Rs. 63.04 ($ 5.18) million [Tax at source Rs. 1.11 ($ 0.09) million]
being Interest received/receivable.
The figure of "Sales" has been arrived at after adjusting:
(i)
4.
(In million)
Excise Duty
Sales Tax
Rs.
204.98
12.85
1985
$
16.85
1.06
Rs.
172.47
4.98
1984
$
13.81
0.40
Revenue expenses amounting to Rs. 10.71 ($ 0.88) million on Research and Development have been included under the
respective heads of accounts.
(a)
(b)
6.
7.
Auditors' Remuneration
(In million)
(a) Audit Fees
(b)
(c)
(d) Out-of-pocket expenses
Tax audit fees (includes Rs. 0,20 ($ 0.02) million for 19841
For certification and consultation in Finance and Tax matters
1985
$
0.06
0.04
0.01
0.01
0.12
Rs.
0.70
0.52
0.18
0.07
1.47
Rs.
0.60
––
0.17
0.07
0.84
1984
$
0.05
––
0.01
0.01
0.07
37
Schedule -‘N’ (contd.)
NOTES & CONTINGENT LIABILITIES (Contd.)
8. The statement of accounts from the Official Liquidator of 'SMCL' from 1st January, 1981 to 31st December, 1985, has not been
received till date. However, the Company carried out an inspection of the books of accounts of the Liquidator and obtained
details-,. of receipts and payments made by him and has incorporated the same in the accounts of respective years. Necessary
adjustments, if any, would be made upon receipt of final Statement of Accounts.
9.
In terms of resolution passed by the shareholders at the Extraordinary General Meeting of the Company held on 24th January 1984,
the Company has transferred/given on lease certain assets of the Company's undertaking at Sidhpur, as also assigned certain liabilities
to Devti Fabrics Ltd., a Company incorporated with a view to take over the running business of Sidhpur Unit as a going concern.
Devti Fabrics Limited became a subsidiary of the Company effective from 30th September, 1985.
In view of the transfer of the said business with effect from 1st October, 1985, the previous year's figures to this extent are not
comparable and no provision has been made for the cumulative losses of Rs. 14,250 ($ 117 1) of the said Subsidiary Company
Accordingly, licensed and installed capacities pertaining to the said unit have been adjusted in accounts.
10.
(a) The Company has been advised that the computation of net profit (for the purpose of calculation of Directors' remuneration
under Section 349 of the Companies Act, 1956) need not be enumerated, since no commission has been paid to the Directors and
only minimum remuneration has been paid to the Directors, as per the approval of the Central Government received under
Section 198 and Section 309 of the Companies Act, 1956.
Rs.
1985
$
Rs.
1984
$
(b) Managing Directors' and Executive Directors' Remuneration:
(i) Salaries
2,58,300
21,232.26
3,00,100
24,038.01
(ii) Contribution to Provident Fund and Superannuation Fund
64,575
5,308.06
75,025
6,009.50
(iii) Provision for Gratuity (as per actuarial valuation)
[Previous year Rs. 26,384 ($ 2113.36)]
(iv) Perquisites
17,815
1,464.39
26,261
2,103.51
1,75,553
14,430.46
1,95,521
15,661.23
11. The Company has been providing liability for Excise Duty in respect of finished products lying in factory premises/bond as and
when they are removed on the footing that duty becomes payable only at the time of removal of goods. Accordingly, estimated
liability amounting to Rs. 173.60 ($ 14.27) million in respect of such products at year end has not been provided in the accounted,
and not included in the inventory of finished products.
12.
(a) Foreign Currency Loans availed of during the year to acquire plant and machinery have been accounted for in terms of
Indian Rupees at the exchange rates prevailing on relevant dates.
(b) No effect has been given in the Accounts to the fluctuations in rates of exchange on outstanding balance of foreign exchange
(c) The Company has consistently been treating difference on account of fluctuations in exchange rates on payments of instalments'
of loans, deferred credit facilities, etc. as a revenue expenditure and the same amounting to Rs. 33.88 ($ 2.78) million
[Previous year Rs. 25.35 ($ 2.08) million has been included under the head "General Expenses".
13.
In terms of the approval given by the Shareholders, Class Debentureholders and extensions obtained from Controller of Capital
Issues, Government of India, the Company has issued during the year 96,316 Equity Shares of Rs. 10/- ($ 0.82) each credited as
fully paid-up against Debentures of the value of Rs. 6.88 ($ 0.56) million of Series I, II, III and IV surrendered by the
Debentureholders in the ratio of 1.4 Equity Shares of Rs. 10/- ($ 0.82) each for every Rs. 100/- ($ 8.22) outstanding on the said
Debentureholders. Consequently, difference between the outstanding value of such debentures surrendered and the paid-up value
of Equity Shares issued amounting to Rs. 5.92 ($ 0.49) million has been credited to Share Premium Account.
38
Schedule -‘N’ (Contd.)
NOTES AND CONTINGENT LIABILITIES (Contd.)
14. (a) From 1st January, 1982 to 31st December, 1984 the Company had capitalised a sum of Rs. 1907.23 ($ 156.77) million in respect
of interest on long term borrowings availed for procuring Fixed Assets for the entire contracted period of such borrowings. In
view of the proposed amendment to Section 43 of Income Tax Act, 1961, vide Finance Bill 1986, the Company has decided to
capitalise interest on the said borrowings only upto the date of commissioning of the Plant. Accordingly the Company has
recalculated the cost of Fixed Assets from 1st January, 1982, and its consequent effect on depreciation, interest and on sale of
(In million)
assets for the years 1982 to 1984 have been adjusted in the, Accounts as under:
Reliance
Less:
Short provision of interest for the past years
(i) Excess provision for depreciation written-back
(ii) Net adjustment on Sale of Assets
Net debit to Profit and Loss Account
Rs.
Rs.
$
$
192.71
15.84
111.02
0.41
9.13
0.03
111.43
81.28
9.16
6.68
(b) No provision for taxation on this account is considered necessary (Refer Note No. 15 below).
(c)
Investment Allowance Reserve created on account of above capitalisation of Interest in the previous year is being carried forward.
(d) Had the Company continued the said practice of capitalisation of Interest in the current year, the figures of Fixed Assets, Reserves
and Current Liabilities for the year would have been higher by Rs. 5043.76 ($ 414.60) million, Rs. 94.34 ($ 7.75) million and Rs.
4732.78 ($ 389.03) million respectively and the charge to Profit and Loss Account on account of Depreciation would have been
higher by Rs. 107.30 ($ 8.82) million and on account of Interest lower by Rs. 110.90 ($ 9. 11) million.
15. The Company has been advised that there will be no tax liabilities for the years ending 31st December, 1983 to 31st December,
1985 in view of the various reliefs considered admissible. However, as a measure of abundant caution, an amount of Rs. 100.00
($ 8.22) million has been transferred from the Profit and Loss Account to the Taxation Reserve Account.
16. Pre-operative expenses in respect of various projects upto December, 1985 capitalised/to be capitalised by allocating toPlant &
Machinery and Building:
Rs.
Rs.
(In million)
$
$
Cost of construction and fabrication materials at site
Cost of Trial Run Production
Labour Charges
Power, Fuel and Water
Payment to and Provision for employees
Insurance
Travelling Expenses
General Expenses
Debenture Issue Expenses
Interest on:
Debentures
Fixed Loans
Less:
Interest on Fixed Deposit Account with Banks
Profit on Sale of Investment
Less: Allocated to Plant & Machinery and Building
Capital Expenditure pending allocation
83.41
0.51
1.64
3.11
0.41
3.23
2.01
37.95
94.30
310.80
537.37
46.48
490.89
108.86
382.03
250.61
60.19
35.89
10.59
20.60
4.95
2.95
0.87
6.86
0.04
0.13
0.26
0.03
0.27
0.16
3.12
7.75
25.55
44.17
3.82
40.35
8.95
31.40
39
Schedule -'N' (Contd.)
NOTES AND CONTINGENT LIABILITIES (Contd.)
17. Sundry Creditors' includes:
(a) For Capital Expenditure
(b) Fixed Deposits matured but unclaimed
(In million)
1985
1984
Rs.
$
Rs.
$
68.58
1.65
5.64
0.14
35.31
2.37
2.83
0.19
(In million)
1985
1984
18. Contingent Liabilities:
Rs.
$
Rs.
$
(a) Estimated amount of contracts remaining to be executed on
Capital account and not provided for
(b) Outstanding guarantees furnished by Bankers
(c) Bonds executed in favour of Excise and Customs Authorities
(d) Uncalled liability on partly-paid shares [Rs. 16,875 ($ 1387)]
[Previous year Rs. 16,875 ($ 1387)]
(e) Show Cause Notice from Excise Authority in respect of
Polyester Yarn contested by the Company
(f) Claims against the Company not acknowledged as, debts
(g) Export Bills discounted against irrevocable Letters of Credit
(h)
(i) Disputed Income Tax Liability for the Accounting year 1982
Indemnities towards export obligations against capital goods imports
6830.79
237.67
535.03
561.49
19.54
43.98
610.62
18.03
233.29
48.91
1.44
18.69
––
––
0.02
––
272.34
3.90
0.32
30.40
20.25
22.39
0.32
0.03
2.50
1.66
––
21.52
0.65
28.60
––
––
1.72
0.05
2.29
––
Unit
Licensed Capacity
Installed Capacity
1985
1984
1985
1984
19. Licensed and Installed Capacity:
(a) Polyester Yam
(b) Polyester Staple Fibre
(c) Cotton/Blended Yam (Spindles)
(d) Cotton/Man-made Fabrics (Looms)
(Knitting m/c.)
(e) Purified Terephthalic Acid
(f) Linear Alkyl Benzene
(g) High Density Polyethylene*
(h) Poly Vinyl Chloride*
(i) Mono Ethylene Glycol*,
(j) Polyester Industrial Yam*
(k) Spandex Fibre/Yam
* On the basis of Letter of Intent received.
40
M.T.
M.T.
Nos.
Nos.
Nos.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
25125
45000
12500
450
22
75000
50000
50000
100000
40000
2000
300
25125
50868
940
22
25125
–– (Under implementation)
(Commissioned in
March 1986)
12494
450
18
75000 Under implementation
–– do ––
50000
–– d0 ––
––
–– d0 ––
––
–– d0 ––
40000
–– d0 ––
––
––
––
10000
––
50862
940
22
––
––
––
––
––
––
––
Schedule -‘N’ (Contd.)
NOTES AND CONTINGENT LIABILITIES
20. Production:
Yarn (POY, PFY, Cotton and Blended)
Fabrics
Methanol (By-product)
*Including for captive use/Trial Run Production.
21. Value of Imports on C.I.F. basis in respect of:
(Based on retirement of documents)
(a) Raw Materials
(b) Dyes and Chemicals, Stores and Spare Parts
(c) Capital Goods
22. Expenditure in Foreign Currency on account of:
Interest on Foreign Currency Loans
Interest on Debentures held by Non-residents on repatriation basis (Gross)
Other matters [including commitment charges Rs. 1.90 ($ 0.16) million on Foreign
Currency Loans-Previous year Rs. 2.46 ($ 0.20) million]
Technical knowhow and Engineering Fees (Net of taxes)
23. Quantitative Information in respect
of Opening Stock, Closing Stock,
Purchases, Sales and Consumption of
Raw Materials
(a) Opening Stock:
Yarn
Fabrics
Stock-in-process (Yarn)
Stock-in-process (Fabrics).
Methanol (By-product)
Others
(b) Closing Stock:
Yam
Fabrics
Stock-in-process (Yarn)
Stock-in-process (Fabrics)
Others
(c) Purchases:
Fibre
Yarn
Fabrics
Sea Foods
D.M.T.
Unit
Kgs.
Mtrs.
Kgs.
Mtrs.
Kgs.
Kgs.
Kgs.
Mtrs.
Kgs.
Mtrs.
Kgs.
Kgs.
Kgs.
Mtrs.
Kgs.
Kgs.
Qty.
1.43
4.91
1.57
6.30
––
0.01
1.47
7.48
1.86
9.95
0.24
0.04
1.80
3.51
0.87
1.40
Rs.
177.43
152.23
180.70
160.73
––
0.12
152.14
216.17
185.79
220.71
31.40
3.47
355.89
102.19
49.45
21.53
Reliance
(In million)
1985
*
30.35
58.27
––
1984
*
26.32
51.27
0.93
Rs.
239.35
36.86
243.18
Rs.
182.55
1.90
3.26
––
Rs.
274.77
135.01
186.38
167.06
0.74
0.14
177.43
152.23
180.70
160.73
0.12
1.44
381.31
131.48
33.62
39.08
(In million)
1984
$
19.17
2.95
19.48
(In million)
1984
$
14.62
0.15
0.26
––
(In million)
1984
$
22.01
10.81
14.93
13.38
0.06
0.01
14.58
12.51
14.86
13.21
0.01
0.12
30.54
10.53
2.69
3.13
41
Unit
Kgs.
Mtrs.
Kgs.
1985
$
36.97
3.45
96.94
1985
$
13.99
0.33
0.69
17.37
Qty.
2.38
4.78
2.14
8.10
0.13
0.01
1.43
4.91
1.57
6.30
0.01
0.02
2.09
8.12
0.75
2.48
Rs.
449.79
42.02
1179.38
Rs.
170.18
4.00
8.41
211.33
1985
$
14.58
12.51
14.86
13.21
––
0.01
12.51
17.77
15.27
18.14
2.58
0.29
29.25
8.40
4.06
1.77
Schedule -‘N’ (Contd.)
NOTES AND CONTINGENT LIABILITIES (Contd.)
(d) Sales
Fibre
Yarn (POY, PFY, Cotton and Blended)
Fabrics
Methanol (By-product)
Sea Foods
D.M.T.
(e) Raw Materials Consumed:
P.T.A/D.M .T./Poly. Chips
M.E.G
Cotton
Fibre
Yarn
Fabrics (Grey)
Unit
Kgs.
Kgs.
Mtrs.
Kgs.
Kgs.
Kgs.
Kgs.
Kgs.
Kgs.
Kgs.
Kgs.
Mtrs.
Qty.
0.04
27.07
59.21
––
0.87
1.40
21.14
8.41
0.44
1.60
6.62
12.96
Rs.
3.47
4819.07
2217.64
––
49.45
23.87
457.09
122.69
7.21
154.39
1203.77
288.94
1985
$
0.29
396.13
182.29
––
4.06
1.96
37.57
10.09
0.59
12.69
98.95
23.75
Qty.
0.02
25.64
59.26
1.07
0.75
2.48
19.16
7.40
0.86
1.81
4.63
11.59
Rs.
1.40
4135.55
1825.01
4.64
33.62
42.52
356.07
108.79
14.20
137.83
784.66
217.88
24. Value of Raw Materials Consumed:
Imported [including Import Duty Rs. 750.20
($ 61.67) million]
Indigenous
25. Value of Dyes and Chemicals, Stores
and Spare Part's Consumed:
Imported
Indigenous
Rs.
1985
$
% of total
consumption
Rs.
$
1222.72
1011.37
100.51
83.13
54.73
45.27
508.62
1110.81
40.74
88.98
2234.09
183.64
100.00
1619.43
129.72
Rs.
75.75
181.82
257.57
1985
$
% of total
consumption
Rs.
$
6.23
14.94
21.17
29.41
70.59
100.00
58.51
161.29
219.80
4.68
12.92
17.60
(In million)
1984
$
0.11
331.26
146.18
0.37
2.69
3.41
28.52
8.71
1.14
11.04
62.86
17.45
(In million)
1984
% of total
consumption
31.41
68.59
100.00
(In million)
1984
% of total
consumption
26.62
73.38
100.00
(In million)
26. Earnings in Foreign Exchange:
Export of Goods on F.O.B. basis
42
Rs.
56.41
56.41
1985
$
4.64
4.64
Rs.
41.79
41.79
1984
$
3.35
3.35
Schedule -‘N’ (Contd.)
NOTES AND CONTINGENT LIABILITIES (Contd.)
27. Remittance in Foreign Currency on
account of Dividend:
The Company has not made any remittance in Foreign Currencies
on account of dividend and does not Wave information as to
the extent to which remittances in foreign currencies on
account of dividend have been made by or on behalf of
non-resident shareholders held on repatriation basis. The
particulars as required are given herebelow as at the end of the year:
Reliance
(In million)
1984
1985
Rs.
$
Rs.
$
43
3173181
25
2975280
12.10
0.99
8.75
0.70
(a) Number of non-resident shareholders
(b) Number of Equity Shares held by them
(i) Amount of dividend paid (Gross)
(c)
[Tax at Source Rs. 3.01 ($ 0.25) million]
[Previous Year Rs. 2.18 ($ 0.17) million]
(ii) Year to which dividend relates
28.(a) Break-up of expenditure incurred on employees, who were
employed throughout the year and were in receipt of
remuneration for the year which in aggregate was not less
than Rs. 36,000 ($ 2959) per annum :
(i) Number of employees
(ii) Salaries and Bonus .
(iii) Contribution to Provident Fund and Superannuation Fund
(iv) Other Perquisites
(b) Break-up of expenditure incurred on employees who were employed
for a part of the year and were in receipt of remuneration
for any part of the year at a rate which in aggregate was
not less than Rs. 3,000 ($ 247) per month
(i) Number of employees
(ii) Salaries and Bonus
(iii) Contribution to Provident Fund and Superannuation Fund
(iv) Other Perquisites
1984
1985
$
Rs.
1983
(Rs./$ in million)
1984
$
Rs.
431
342
16.71
3.70
5.92
1.37
0.30
0.49
12.61
2.81
4.68
1.01
0.23
0.37
63
52
1.37
0.28
0.46
0.11
0.02
0.04
1.02
0.23
0.35
0.08
0.02
0.03
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
R. H. AMBANI
Joint Managing Director
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
BOMBAY,
Dated: 4th April, 1986.
K. GOPAL RAO
J. R. SHAH
M. L. BHAKTA
V. V. DIVECHA
N. H. AMBANI
M. D. AMBANI
A. D. AMBANI
Directors
Executive Directors
V. M. AMBANI
Secretary
43
AUDITORS' REPORT
To
THE MEMBERS OF RELIANCE INDUSTRIES LIMITED
We have audited the attached Balance Sheet of RELIANCE INDUSTRIES
LIMITED as at 31st December, 1985 and also the annexed Profit and Loss
Account of the Company for the year ended on that date. We report that :
1. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit.
2.
3.
4.
In our opinion, proper books of account as required by law have been kept by
the Company, so far as appears from our examination of the Books of Account.
The Balance Sheet and Profit and Loss Account dealt with by the report are in
agreement with the Books of Account.
In our opinion and to the best of our information and according to the explanations
given to us, the Accounts read with the notes thereon and subject to:
(a) Note No. 8 regarding non-receipt of Liquidator's statement of accounts;
(b) Note No. 14 regarding reversal of interest capitalised in earlier years and its
consequential effects on accounts give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair view:
in the case of the Balance Sheet of the state of affairs of the Company as
at 31st December, 1985, and
(i)
(ii)
6.
7.
8.
9.
On the basis of selective checks carried out during the course of audit and
according to the information and explanations given to us, there are adequate
internal control procedures, commensurate with the size of the Company and
the nature of its business for purchases of stores, raw materials including
components, plant and machinery, equipments and other assets.
There are no purchases during the year of stores, raw materials or components
from the firms or companies or other parties in which Directors are interested.
save and except from a Subsidiary Company as listed in the register maintained
under Section 301 of the Companies Act, 1956. The prices paid in respect of
purchases made from the Subsidiary Company in excess of Rs. 10,000/- in
value for each type of item so purchased are reasonable as compared to prices
quoted by others or as per information available with the Company.
As explained to us, the Company has a regular procedure for the determination
of unserviceable or damaged stores and raw materials. Adequate provision has
been made in the Accounts for the loss arising on the items so determined.
In our opinion and according to the information and explanations given to us,
the Company has complied with the provisions of Section 58-A of the Companies
Act, 1956 and rules made thereunder, with regard to Fixed Deposits accepted
from the Public.
10. The Company has no by-products and in our opinion reasonable records have
been maintained by the Company for sale and disposal of realisable scrap
wherever significant.
in the case of the Profit and Loss Account of the 'Profit' for the year
ended on that date.
11.
The Company has an internal audit system commensurate with the size and
nature of its business.
As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1975 issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956 and on the basis of such checks as we considered
appropriate, we further report that:
The Company has maintained proper records showing full particulars including
quantitative details and situation of all fixed assets except furniture and fixtures
and factory equipments in respect of which proper records are maintained only
from 1st January, 1979 onwards. The fixed assets have been physically verified
by the Management during the year and no serious discrepancies were noticed
on such verification as compared with the available records.
None of the Fixed Assets have been revalued during the year.
Physical verification was conducted by the Management at reasonable intervals
during the year in respect of finished goods, stores, spare parts and raw
materials, save and except goods lying with third parties. The discrepancies
noticed on such verification as compared with the book records were not
significant and the same have been properly dealt with in the Books of Account.
The valuation of these stocks is fair and proper and is in accordance with the
normally accepted accounting principles and is an the same basis as in the
earlier years. The stock of trial run production has been valued at estimated
realisable value.
The Company has not taken any loans from Companies, Firms or other parties
listed in the registers maintained under Sections 301 and 370(1-C) of the
Companies Act. 1956.
12. The Central Government has prescribed maintenance of cost records under
Section 209(1)(d) of the Companies Act, 1956 in respect of the manufacturing
activities of the Company. We are informed that such accounts and records
have prima jape, been maintained in respect of the Patalganga and Sidhpur
Units. Compilation of such records of Naroda Unit for the year is in progress.
We have not, however, made a detailed examination of the same.
13.
14.
15.
Provident Fund dues have been regularly deposited during the year with the
appropriate authorities.
In respect of trading activities, we are informed that the Company does, not
have damaged goods lying with it at the end of the year. Therefore no provision
for any loss is required to be made in the Accounts.
In respect of processing activities, we are informed that the Company has a
reasonable system of recording receipts, issues and consumption of materials
and stores commensurate with the size and nature of its business and the system
provides for a reasonable allocation of materials and man-hours consumed to
the relative jobs. In our opinion, there is reasonable system for authorisation at
proper levels with necessary control on the issues and allocation of stores and
labour to relative jobs.
For RAJENDRA CO.
Chartered Accountants
For CHATURVEDI SHAH
Chartered Accountants
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
Loans and Advances in the nature of loans have been given to the employees
and to the Subsidiary Company free of interest. The repayments of principal
amount in most of the cases are as stipulated.
Bombay
Dated: 4th April, 1986.
1.
2.
3.
4.
5.
44
Reliance
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO COMPANY'S
INTEREST IN THE SUBSIDIARY COMPANY VIZ., DEVTI FABRICS LIMITED
1. The Financial Year of the subsidiary company ended on
2. Date from which it became subsidiary
3. (a) No. of shares held by Reliance Industries Limited (holding
company) with its nominees in the subsidiary at the end of
the financial year of the subsidiary
30th September,. 1985
30th September, 1985
70 Equity Shares of the face value of
Rs. 10 ($ 0.82) each fully paid-up
(b) Extent of interest of holding company at the end of the
financial year of the subsidiary
100%
4. The net aggregate amount of the subsidiary's profits, -less losses, so far
as it concerns the members of the holding company:
Not dealt with the holding company's accounts:
(i) For the financial year ended 30th September, 1985
Rs. 7,500 (LOSS) ($ 616)
(ii) For the previous financial years of the subsidiary since
it became the holding company's subsidiary
(b) Dealt with in the holding company's accounts:
(i) For the financial year ended 30th September, 1985
(ii) For the previous financial years of the subsidiary since
it became the holding company's subsidiary
5. Changes in the holding company's interest, in the subsidiary
between the end of the financial year of the subsidiary and the
end of the holding company's Financial year
Rs. 6,750 (LOSS) ($ 555)
Nil
Nil
Total holding in the Equity Shares of the subsidiary
has gone up from Rs. 700 ($ 58) to Rs. 21,00,700
($ 1,72,678) by subscription of additional Equity
Shares aggregating Rs. 2.10 ($ 0.17) million by the
holding company before the year end of the holding
company.
6. From 1st October, 1985, the company has transferred its Sidhpur Unit .
as a going concern with part of its assets and liabilities. It has also
given on lease some of its assets to the subsidiary company from the
said date.
7. Material changes between the end of financial year of the subsidiary
and the end of the holding company's financial year in respect of:
(i) The subsidiary's fixed assets
(ii)
Its investments
(iii) The money lent by it
Rs. 7.30 ($ 0.60) million (increase)
Nil
Nil
(iv) Monies borrowed by it for any purpose other than of meeting
current liabilities
Rs. 14.20 ($ 1.17) million
BOMBAY,
Dated: 4th April, 1986.
For and on behalf of the Board
R. H. AMBANI
Joint Managing Director
K. GOPAL RAO
J. R. SHAH
M. L. BHAKTA
V. V. DIVECHA
N. H. AMBANI
M. D. AMBANI
A. D. AMBANI
Directors
Executive Directors
V. M. AMBANI
Secretary
45
DEVTI FABRICS LIMITED
BALANCE SHEET AS AT 30TH SEPTEMBER, 1985
SOURCES OF FUNDS:
Rs.
$
Rs.
1985
$
Rs.
$
Rs.
1984
$
Shareholders' Funds:
Capital
Authorised
2,50,000 Equity Shares of Rs. 1W
($ 0.82) each
25,00,000
2,05,500.00
25,00,000
2,00,250.00
Issued, Subscribed and Paid-up
70 Equity Shares of Rs. 1W
($ 0.82) each (All the Shares
are held by Reliance Industries
Ltd., the Holding Company.)
Loan Funds
Unsecured Loans
from Holding Company
Total
APPLICATION OF FUNDS:
Current Assets, Loans and
Advances:
Cash and
Bank Balance
Cash
Balance with a Scheduled Bank
(In Current Account)
Miscellaneous Expenditure
(to the extent not written-off)
Preliminary Expenses
Profit and Loss Account
Less: Current Liabilities and
Provisions:
Sundry Creditors
Total
Notes: Schedule ‘A’
As per our Report of even date
For RAJENDRA & CO.,
Chartered Account-ants
700
57.54
700
56.07
18,150
18,850
1491.93
1549.47
––
700
––
56.07
700
500
57.54
41.10
200
500
16.02
40.05
1,200
98.64
700
56.07
18,370
14,250
1510.01
1171.35
13,720
6,750
1098.97
540.67
32,620
33,820
2681.36
2780.00
14,970
18,850
1230.53
1549.47
20,470
21,170
1639.64
1695.71
20,470
1639.64
700
56.07
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
S. NATARAJAN
KIRTI V. AMBANI
VINOD M. AMBANI
Directors
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
BOMBAY
Dated: 27th February, 1986.
46
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH SEPTEMBER, 1985
DEVTI FABRICS LIMITED
INCOME:
EXPENDITURE
Directors' Sitting Fees
Audit Fees
Certification Fees to Auditors
Professional Tax
General Expenses
Add: Brought forward from Previous Year
Carried to Balance Sheet
Notes: Schedule ‘A’
1985
$
––
Rs.
––
1984
$
––
Rs.
––
4,750
390.45
4,500
360.45
1,500
123.30
1,500
120.15
500
250
500
41.10
20.55
41.10
500
250
––
40.05
20.02
––
7,500
616.50
6,750
540.67
6,750
554.85
––
––
14,250
1171.35
6,750
540.67
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH SEPTEMBER, 1985
1.
Previous year's figures relate to the period from 17-12-1983 to 30-9-1984 and are not strictly comparable with those of the
current year.
2. No manufacturing or trading activity was carried out during the year. Hence, information required as per para 3 and 4 of Part 11 of
Schedule VI of the Companies Act, 1956, is not given.
3.
The Company has become a wholly-owned subsidiary of Reliance industries Limited upon transfer of all the 70 Equity Shares in the
Company.
As per our Report of even date
For RAJENDRA & CO.,
Chartered Account-ants
For CHATURVEDI & SHAH
Chartered Accountants
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
For and on behalf of the Board
S. NATARAJAN
KIRTI V. AMBANI
VINOD M. AMBANI
Directors
BOMBAY
Dated: 27th February, 1986.
47
DEVTI FABRICS LIMITED
DIRECTORS' REPORT
AUDITORS' REPORT
To the Members,
Your Directors present the Second Annual Report together with the Audited
Statement of Accounts for the year ended 30th September, '1985.
Operations
During the year under review, the Company his incurred a loss of Rs. 7,500 ($
616) has carried a sum of Rs, 14,250 ($ 1171) to the Balance Sheet [including
loss of Rs 6,750 ($ 555) relating to the previous period ended 30th September,
1984] and ha, not undertaken am activity.
The Company, became a Subsidiary Company of Reliance Industries Limited,
with effect front 30th September. 1985. As per the arrangement between the
Company and Reliance Industries Ltd., the Company has taken over the employees
at Sidhpur on its rolls,
Since the end of the accounting year, Reliance industries Limited (the Holding
Company has subscribed to the Equity Shares of your Company to the extent of
R,, 2, 10 ($ 0.17 million.
The Company has taken over the running business of the undertaking at Sidhpur
belonging to Reliance Industries Limited, with effect from 1st October, 1985
The Company has, already commenced production and sale of blended fabric,
The Directors are hopeful that the current year's working will be satisfactory,
The Company is negotiating with Bank of Baroda for extending working capital
requirementss
Directors
Messrs Susheel M. Kothari, Natubhai M Sanghvi, Vinod M. Ambani, Kirti V.
Ambani, S Natarajan, who were appointed as additional Directors, will hold office
upto the date of the ensuing Annual General Meeting. The Company has received
letters from them seeking re-election. Messrs Sohan Chaturvedi, Mansukhlal G.
Mehta and Indubhai F. Sheth resigned from the Board on 30th September, 1985.
Auditors
To
The Members of Devti Fabrics Limited
We have audited the attached Balance Sheet of DEVTI FABRICS LIMITED
as at 30th September, 1985 and also the annexed Profit and Loss Account
of the Company for the period ended on that date. We report that:
1. We have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit.
2.
3.
4.
In our opinion. proper Books of Account as required by jaw hay c been
kept h,, the Company, o far a, appears from our examination of the Books
of Account
The Balance Sheet and Profit and Loss Account deal., with by the report
are in agreement with the Books of Account.
In our opinion and to the best of our information and according to the
explanations given to us, the Accounts read with notes thereon, give the
information required by the Companies Act, 1950 in the mariner so required
and give a true and fair view:
(i)
(ii)
in the case of Balance Sheet of the State of Affairs of the Compamy
as at 30th September, 1985.
in the case of Profit and Loss Accounts of the `Loss' for the period
ended on that date
We further report that this report does not include a statement on the matters
specified in paragraph 4 and 5 of the Manufacturing and Other Companies
(Auditors' Report) Order, 1975 as the Company was not engaged in any of
the activities referred to in Clause 1 of the said order for the year ended
30th September, 1985.
For RAJENDRA CO.
Chartered Accountants
For CHATURVEDI SHAH
Chartered Accountants
R. J. SHAH
Proprietor
D. CHATURVEDI
Partner
Rajendra & Company and Messrs. Chaturvedi & Shah, Chartered
Accountants retire at the ensuing Annual General Meeting and are eligible for
re-appointment
Bombay
Dated: 27th February, 1986.
For and on behalf of the Board
S. NATARAJAN
Director
KIRTI V. AMBANI
Director
Registered Office :
3rd Floor, Maker Chamber IV,
222, Nariman Point,
Bombay - 400 021.
Dated : 27th February, 1986.
48