Reliance Industries Limited
Annual Report 1989-90
64
Reliance
Industries Limited
S I X T E E N T H
A N N U A L R E P O R T
1 9 8 9 –– 9 0
Board of Directors
Dhirubhai H Ambani
Chairman & Managing Director
Ramniklal H. Ambani
Joint Managing Director
Natvarlal H. Ambani
Executive Director
Mukesh D. Ambani
Executive Director
Jayantilal R. Shah
Mansingh L. Bhakta
T. Ramesh U. Pal
S. S. Betrabet
Nominee Director - I.C.I.C.I
B. D. Shah
Nominee Director - G I C
Anil D. Ambani
Executive Director
Nikhil R Meswani
Executive Director
U.V. Rao
Vinod M Ambani
Rajendra & Co. and Chatur vedi & Shah
Kanga & Co and Dave & Co.
Syndicate Bank
State Bank of India
Bank of Baroda
Canara Bank
Punjab National Bank
Indian Bank
Oriental Bank of Commerce
Vijaya Bank
Standard Chartered Bank
Deutsche Bank (Asia)
Secretary
Auditors
Solicitors
Bankers
Registered Office
3rd Floor Maker Chambers IV.
222, Nariman Point
Bombay 400 021
Sixteenth
annual report
1989-90
Page No(s)
4-5
6-8
9-10
11-12
13-22
23
24
25
26-29
30-33
34
35-62
Contents
Financial Highlights
Graphs
Notice of Annual General Meeting
Directors’ Report
Annexure to Directors’ Report
Auditors’ Report
Balance Sheet
Profit and Loss Account
Schedules annexed to Balance Sheet and
Profit & Loss Account
Notes and Contingent Liabilities
Statement Pursuant to Section 212
of the Companies Act
Documents of Subsidiary Companies
PLANTS AT
1.
Patalganga, Off Bombay- Pune Road,
Near Panvel, Dist. Raigad,
Maharashtra.
2.
103/106, Naroda Industrial Estate,
Naroda, Ahmedabad.
SUBSIDIARY COMPANIES
Devti Fabrics Limited
Plant at Sidhpur,
Dist. Mehsana,
Gujarat State.
Reliance Petrochemicals Limited
Village Mora, Bhatha P.O.,
Surat - Hazira Road,
Dist. Surat, Gujarat State.
Trishna Investments and Leasings Limited
Maker Chamber IV,
222, Nariman Point, Bombay 400 021.
REGISTRARS & TRANSFER AGENTS
Reliance Consultancy Services Limited
56, Mogra Village Lane, Off Old Nagardas Road,
Andheri (East), Bombay 400 069.
Reliance
SALES
OTHER INCOME
Manufacturing and other expenses
Gross Profit (A – B)
Interest
Depreciation
Net Profit (C – D)
WHAT THE COMPANY OWNED
Fixed Assets
Gross Block
Less: Depreciation (Cumulative)
Net Block
Investment
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 & Surplus
4
(A)
(B)
(C)
(D)
(E)
Financial
1989-90
1988-89
(9 months)
Rs.
Rs.
1840.66
1112.45
15.64
1856.30
1432.10
424.20
171.73
161.97
333.70
90.50
1998.79
529.78
1469.01
58.05
1026.26
2553.32
595.89
219.64
650.81
7.88
1120.33
862.58
257.75
91.58
86.80
178.38
79.37
1871.76
368.98
1502.78
58.50
849.46
2410.74
579.44
195 11
564.88
1466.34
1339.43
152.12
5.80
929.06
152.11
5.80
913.40
1086.98
1071.31
Highlights
1987-88
(18 months)
1986
1985
1984
1983
1982
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
1770.74
905.48
733.14
622.01
520.35
421.03
(Rs. in crores)
Reliance
7.45
1778.19
1495.27
282.92
110.74
91.41
202.15
80.77
5.73
911.21
781.82
129.39
54.24
60.98
115.22
14.17
4.94
738.08
604.83
7.11
629.12
511.23
133.25
117.89
24.45
37.46
61.91
71.34
22.61
34.18
56.79
61.10
1862.66
1137.55
735.68
530.93
278.58
1584.08
1.25
188.09
949.46
0.37
607.83
1052.83
128.88
104.65
606.80
426.28
37.30
402.10
0.17
235.41
661.86
2193.16
2002.66
1046.20
609.82
103.83
546.12
143.78
457.39
1001.23
515.16
276.96
81.90
138.02
44.83
93.68
1171.04
1691.13
735.08
415.47
152.10
5.80
864.22
1022.12
51.61
5.80
254.12
311.53
51.61
5.80
46.18
5.80
253.71
194.41
311.12
246.39
129.88
4.68
525.03
433.61
91.42
21.52
31.38
52.90
38.52
394.88
73.42
321.46
0.12
215.19
536.77
239.99
35.46
131.44
406.89
36.15
5.80
87.93
2.51
423.54
361.28
62.26
18.93
14.17
33.10
29.16
356.71
42.10
314.61
0.12
191.53
506.26
260.60
22.85
131.27
414.72
18.60
5.80
67.14
91.54
5
DISTRIBUTION OF INCOME 1989-90
Manufacturing & other
expenses
Excise Duty
Interest
Depreciation
Dividend
Retained earnings
Purchases & Raw
Materials
29.60%
2.37%
2.51%
8.73%
23.57%
23.97%
9.25%
6
1200
1000
800
600
400
200
0
CAPITAL & NET WORTH
82
83
84
85
86
87-88
88-89
89-90
Net Worth
91.54
129.88
246.39 311.12
311.53 1022.12 1071.31 1086.98
Equity Capital
18.60
36.15
46.18
51.61
51.61
152.10 152.11 152.12
s
e
r
o
r
c
n
i
.
s
R
2 5 00
2 0 00
1 5 00
1 0 00
5 0 0
0
SALES
3
0
.
1
2
4
82
5
3
.
0
2
5
83
1
0
.
2
2
6
84
4
1
.
3
3
7
85
8
4
.
5
0
9
4
7
.
0
7
7
1
5
4
.
2
1
1
1
6
6
.
0
4
8
1
87-88 88-89 89-90
86
18 m ont hs 9m onths
7
500
400
300
s
e
r
o
r
c
n
i
200
.
s
R
100
0
GROSS PR OFIT & N ET PROFIT
0
2
.
4
2
4
2
9
.
2
8
2
5
7
.
7
5
2
2
4
.
1
9
2
5
.
8
3
6
2
.
2
6
6
1
.
9
2
9
8
.
7
1
1
0
1
.
1
6
9
3
.
9
2
1
5
2
.
3
3
1
4
3
.
1
7
7
1
.
4
1
7
7
.
0
8
7
3
.
9
7
0
5
.
0
9
82
83
84
85
86
87-88 88-89 89-90
GROSS PROFIT
NET PR OFIT
EXPO RT S
Rs. in crore s
s
e
r
o
r
c
n
i
.
s
R
80
60
40
20
0
85
86
87-88
88-89
89-90
8
DIRECTORS’ REPORT
To the Members
Your Directors are pleased to present the 16th Annual Report together
with the audited Statement of Accounts for the Financial Year ended 31st
March, 1990.
FINANCIAL RESULTS
1989-90
(12 months)
424.20
171.73
161.97
90.50
(Rs in crores)
1988-89
(9 months)
257.75
91.58
86.80
79.37
Gross Profit before interest and
Depreciation
Less: Interest
Depreciation
Profit for the year
Less: Withdrawal of backward
area incentives under
1979 package scheme of
incentives availed of in
prior years
Less: Transferred from
General Reserve
28.36
28.36
Add: Balance in Profit & Loss A/c
Excess provision written back
Investment Allowance Reserve
written back
Available for Appropriation
Investment Allowance Reserve
Appropriations:
a.
b. Taxation Reserve
c. Debenture Redemption Reserve
d. General Reserve
e. Recommended dividend (subject to
deduction of tax)
(i) On 11% Cumulative Redeemable
Preference Shares
(ii) On 15% Cumulative Redeemable
Preference Shares
(iii) On Equity Shares
Balance Carried to Balance Sheet
––
19.36
––
2.90
112.76
10.00
10.00
8.00
8.00
0.03
0.83
45.64
30.26
––
11.25
16.03
––
106.65
30.00
––
6.00
5.00
0.03
0.62
45.64
19.36
DIVIDENDS
Your Directors have recommended the following dividends to be paid
(subject to deduction of tax at source) for the financial year ended 31st
March, 1990, if approved by the Shareholders at the ensuing Annual
General Meeting.
112.76
106.65
ON PREFERENCE SHARES
(a) Dividend of Rs 11 per share on 30,000 Cumulative
Redeemable Preference Shares of Rs.100 each
fully paid up
(b) Dividend of Rs.15 per share on 5,50,000
Cumulative Redeemable Preference Shares of
Rs.100 each fully paid up
ON EQUITY SHARES
(Rs in Crores)
0 03
0.83
Dividend of Rs.3.00 per share on the Equity shares of
Rs.10 each fully paid up (pro rata dividend wherever
applicable)
0.86
45.64
46.50
YEAR IN RETROSPECT
Overall Performance of the Company during the year was satisfactory.
The sales. and other income during the financial year under review rose to
Rs.1356 crores (approx.) as compared to Rs.1120 crores (approx.) in the
previous year, registering an increase of about 24% on an annualised
basis. The gross profit (after interest charges) was Rs.252.47 crores against
Rs.166 17 crores for the previous period.
The net profit of Rs.90.50 Crores has been arrived at after providing
Rs.44.01 Crores towards expenses and losses incurred due to floods
St the Patalganga Plant in July, 1989. The break-up of this aggregate in
respect of inventories. after adjusting the value of damaged stocks sold or
consumed and those remaining unsold, a net loss of Rs.32.37 Crores
has been charged to various heads in the profit and loss account; in
Reliance
respect of plant and machinery, the costs of repairing/reconditioning at d
related expenses aggregating to Rs.11.64 Crores has been charged to
various heads in the Profit and Loss account.
The Company contributed as much as Rs.698.39 Crores to the
exchequer in the form of various taxes.
FIBRE DIVISION
i. Polyester Staple Fibre (PSF)
The Polyester Staple Fibre industr y is facing excess capacity;
nevertheless, your Company optimised its capacity utilisation during
the year. A substantial portion of the PSF production is being exported
to developed countries where it has received favourable response in
terms of market acceptance. The Company also proposes to take up
manufacture of a wider variety of speciality fibres in the near future.
ii. Polyester Filament Yarn (PFY)
Production and sales registered an improved trend over the previous
year inspite of the damage to the plant, machinery and inventories
due to flash floods. The margins in the Polyester Industry will be under
pressure owing to:
(a) increase in Excise Duty on Polyester yarn;
(b) introduction of Excise Duty on PTA;
(c) increase in Custom Duty on MEG; and
(d) reduction in Import Duty on Polyester yarn.
The Company is maintaining its market leadership through upgradation
of technology, modernisation and changes in product mix.
FIBRE INTERMEDIATES DIVISION
Purified Terephthalic Acid (PTA)
PTA is basically used for the manufacture of PSF and PFY. The Company
is a leading manufacturer of both these items. A large portion of the product
is being used for captive consumption. Through the Company’s efforts,
customer awareness has considerably increased for production of Polyester
through the PTA route. This has substantially improved the market for PTA.
In January. 1990, based on a report by the Cost Accounting Branch (CAB)
of the Ministry of Finance, the Company was advised by the Ministry of
Chemicals and Petrochemicals to reduce its PTA price from Rs. 32,625/-
per tonne to Rs. 24,550/- per tonne i.e. a reduction of Rs.8,075/- per tonne.
The Company has been making representations to the concer ned
authorities to fix a fair price for the sale of PTA as well as for the cost of
production of Paraxylene, an important raw material for the manufacture
of PTA. The Company is hopeful that these arbitrary decisions would be
corrected .
Further, by the Finance Act, 1990, an excise duty of 15 % ad valorem per
tonne was imposed on PTA. The arbitrary reduction in the price and the
imposition of excise duty on PTA will have a substantial impact on this
Division .
DETERGENT & DETERGENT INTERMEDIATE DIVISION
Linear Alkyl Benzene (LAB)
LAB is an impor tant raw material used by synthetic detergents
manufacturers. The total consumption of all types of detergents and washing
soaps is growing at a good pace every year which is bound to reflect on
the demand for LAB.
Production and sales increased substantially during the year. Sales in
terms of value and volume registered handsome gains.
The Directors are hopeful of improving this trend.
TEXTILE DIVISION
The Company manufactures sophisticated, fashionable and high value
fabrics. These are marketed under the brand name “Vimal”, through a
large number of outlets all over India.
Currently the Company is planning a major thrust to export these fabrics
to various countries in the world including USA and EEC. The Company
hopes to be one of the largest exporters of synthetic fabrics in the years to
come.
PROJECTS
I. Minimum Economic Scale (MES)
In terms of the policy announced by the Government, the Company
has received necessary approvals for effecting substantial expansion
under the MES of Production. After this expansion, the annual capacity
of Purified Terephthalic Acid (PTA) would increase from 1,00,000
11
Reliance
tonnes to 2,00,000 tonnes: of Polyester Staple Fibre (PSF) 45,000 tonnes
to 60.000 tonnes; of Linear Alkyl Benzene 60,000 tonnes to 80,000 tonnes.
The expansion of PTA plant under MES is being taken up.
II. Broad Banding of Polyester Staple Fibre Plant
The Company has received the approval under the broad banding
scheme for the manufacture of Polyester Filament Yarn under the
description Polyester Staple Fibre/Polyester Filament Yarn within the
licensed capacity of Polyester Staple Fibre. The Company proposes
to install appropriate spinning machines with a view to achieve
maximum utilization of manufacturing facilities and providing flexibility
of production.
III. LAB Front-End Project
The Company is using impor ted N-Paraffin as a raw material for
manufacturing LAB. It is proposed to acquire cer tain additional
machineries to enable the Company to manufacture LAB from
Kerosene with N-Paraffin as intermediate raw material This backward
integration project would lead to substantial savings of foreign
exchange estimated at Rs.46 Crores per annum.
IV. Joint Sector Project
The Company has entered into a Memorandum of Understanding
(MOU) with the West Bengal Industrial Development Corporation for
setting up a joint sector project for the manufacture of 15,000 tons of
Polyester Filament Yarn (PFY). This project will make ready-to-use
Polyester Yarns available to more than 3700 existing powerlooms in
the State and further encourage setting up of additional powerlooms
in the State. This will also promote downstream units in small and
medium sectors. On the implementation of this project, the cumulative
direct and indirect employment that would be generated would benefit
over 2 lakhs people in the State.
V. Modernisation Of Polyester Division
As part of the continuous process of upgradation and infusion of
latest technology, the Company has drawn up modernisation plans.
The implementation of these plans will improve profitability, reduce
wastage, increase proportion of high grade products, increase in
output.
VI. Gas Cracker Project
The Cracker Project for the manufacture of Ethylene, Propylene,
Butadiene and other products is proposed to be located at Hazira,
Gujarat. The project is based on utilisation of Natural Gas Liquids to
the extent of one million tonnes per annum from the Gas Processing
Complex of ONGC at Hazira. In addition, Naphtha will be used as a
supplementary feedstock The project has been appraised by the
Financial Institutions .
EXPORTS
During 1989 90, the Company exported Its products to leading
customers in the sophisticated markets of USA, EEC. The Company’s
exports have grown at a tremendous pace over the last five years,
from Rs.5.64 Crores in 1985 to Rs.72.75 Crores in 1989-90 representing
a massive growth of 1190%. Exports for the current year also are expected
to register a substantial increase. The Directors have great pleasure in
informing you that the Company has been a pioneer in exporting PSF and
LAB in substantial quantities to developed countries. The Company has
also pioneered in supplying of PSF in large quantities to exporters under
intermediate advance licence scheme and of LAB to manufacturer
exporters of detergents. These fall under the category of deemed exports.
ESTABLISHMENT OF OVERSEAS SUBSIDIARY
The Company proposes to establish a wholly owned subsidiary to step up
the Company’s exports. The Directors are pleased to inform you that the
Company has received various approvals required from the Government
authorities for establishing a wholly owned subsidiary in the United
Kingdom. The main objects of this venture inter alia, would be the promotion
of exports of the Company’s products.
ENERGY TECHNOLOGY AND FOREIGN EXCHANGE
Information in accordance with the provisions of Section 217(1)(e) of the
Companies Act. 1956, read with the Companies (Disclosure of Par ticulars
in the Report of Board of Directors) Rules 1988, regarding conservation of
energy, technology absorption and foreign exchange earnings and outgo
is given in the Annexure.
12
SUBSIDIARY COMPANIES
As required under Section 212 of the Companies Act, 1956, the audited
statements of accounts along with the report of the Board of Directors of
Messrs Devti Fabrics Limited, Reliance Petrochemicals Limited and Trishna
Investments and Leasings Limited and the respective Auditors Repor t
thereon for the year ended 31st March, 1990, are annexed.
FIXED DEPOSITS
Deposits of Rs.1.42 crores which became due for repayment on or before
31st March, 1990 were not claimed by 2272 depositors as on that date. Of
these, deposits amounting to Rs.0.50 crores of 701 depositors have since
been repaid/renewed.
DEBENTURES
The funds raised by the issues of debentures have been utilised for the
approved objects.
PERSONNEL
As required by the provisions of Section 217 (2A) of the Companies Act,
1956) read with Companies (Particulars of Employees) Rules, 1975, the
names and other particulars of the employees are set out in the Annexure
to the Directors’ Report in the full Balance Sheet and Profit and Loss
Account .
DIRECTORS
The Industrial Credit & Investment Corporation of India Limited have
nominated Shri S.S. Betrabet in place of their nominee Director, Shri V.V.
Divecha.
Shri U.V. Rao was appointed as an Additional Director during the year and
holds office up to the date of the ensuing Annual General Meeting. He is
not offering himself for election as Director at the ensuing Annual General
Meeting.
Shri K. Gopal Rao has resigned as a Director of the Company on health
grounds. Shri Gopal Rao has been associated with the Company right
from the inception and has rendered invaluable services during its growth
years.
The Board of Directors wish to place on record their grateful appreciation
for the immense contribution made by the aforesaid Directors during their
tenure as Directors of the Company.
AUDITORS & AUDITORS’ REPORT
Messrs. Rajendra & Co. and Messrs. Chaturvedi & Shah, Joint Auditors of
the Company hold office until the conclusion of the ensuing Annual General
Meeting and are recommended for reappointment. The Company has
received Cer tificates from these Auditors to the effect that their
reappointment, if made, would be within the prescribed limits under Section
224(1) of the Companies Act, 1956.
The notes to the Accounts Nos. 4, 12, 16(c) and 17 referred to in the
Auditors’ Report are self explanatory and therefore, do not call for any
further comment.
ACKNOWLEDGEMENT
Yours Directors would like to express their grateful appreciation to the
assistance and co-operation received from the Financial Institutions and
Banks during the year under review.
Your Directors wish to place on record their deep sense of appreciation to
the devoted services of the executives, staff and workers of the Company
for its success.
Bombay 400 021
Dated 27th July, 1990
For and on behalf of the Board of Directors
Dhirubhai H. Ambani
Chairman & Managing Director
ANNEXURE TO DIRECTORS’ REPORT
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURES OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988
Reliance
A. CONSERVATION OF ENERGY
(a) ENERGY CONSERVATION MEASURES TAKEN
Some of the important measures taken in the year 1989-90
are given below.
Modification of existing fuel gas burners for maximizing fuel
gas utilisation in the plant. Oper ation of process air
compressor at lower discharge pressure.
Distillation columns operation optimised by bringing down
reflux ratios.
Burning of excess H2 gas in hot oil heater.
Use of compression heat for drying instruments air.
Conversion of oil fired steam boilers to natural gas fired
system.
(b) ADDITIONAL INVESTMENTS AND PROPOSALS BEING
IMPLEMENTED FOR REDUCTION IN CONSUMPTION OF
ENERGY
(i) Cooling water recovery system is proposed
(ii) Use of variable fan pitch blades and intermittent operation of
some fin fans.
(iii) Excess fuel gas from one plant in the complex proposed to
be used as fuel in the other plant.
(iv) Conversion of thermopacs to natural gas system.
(v) Hot water to be produced by waste flash steam.
3.
IMPACT OF MEASURES AT (a) AND (b) ABOVE FOR
REDUCTION OF ENERGY CONSUMPTION AND ON THE
COST OF PRODUCTION OF GOODS
There is a continuous and systematic effort to optimise energy
consumption and cost at all the plants through evaluation of
perfo r mance and moder nisation and upgradation of
equipments, pr actices and instrumentation,. Energy
budgeting and auditing is being taken up at all the plants.
FORM ‘A’
Form for disclosure of particulars with respect to conservation of
energy:
PART ‘A’
1.
Power and Fuel Consumption
April, ’89 to
July, ’88 to
March, ’90 March, ’89
(9 Months)
(12 Months)
a.
Purchased Units (Lakhs)
Total Amount (Rs. Lakhs)
Rate/Unit Rs.
b. Own Generation
i.
ii.
Through Diesel
Generator Units (Lakhs)
Unit per Ltr. of Diesel
Cost/Unit Rs.
Through Steam
Turbine/Generator Units
Units per Ltr. of Fuel
Oil/Gas
Cost/Unit Rs.
2. Coal
Qnty. (Tonnes)10050
Total Cost (Rs. in Lakhs)
Avg. Rate per M.T.(Rs.)
Furnace Oil
Qnty. (K. Ltrs.)
Total Amount (Rs. in Lakhs)
Avg. rate per Ltr. (Rs.)
4. Others:
G a s
Qnty. (1000M3)
Total Cost (Rs. in Lakhs)
Rate/Unit per 1000M3 (Rs.)
3017.46
4315.52
1.42
2761.29
3652.98
1.32
417.73
3.56
1.33
347.21
3.41
1.33
Nil
Nil
Nil
16609
108.11
1075.70
165915
5720.38
3.19
14760.00
271.39
1838.71
Nil
Nil
Nil
151.64
913.00
134418
4287.93
3.19
––
––
––
CONSUMPTION PER UNIT OF-PRODUCTION
PART ‘B’
Electricity (kwh)
Furnace 0il (Ltrs.)
Coal (Kgs.)
Gas (M3)
FABRICS
PFY
PSF
PTA
LAB
Current
Year
1009
83.5
190.4
249
Previous
Year
1027
292.4
399.8
––
Current
Year
1440
200
––
––
Previous
Year
1290
250
––
––
Current
Year
600
220
––
––
Previous
Year
890
310
––
––
Current
Year
436
80
––
––
Previous
Year
290
90
––
––
Current
Year
505
474
––
––
Previous
Year
527
488
––
––
NOTE: The above figures indicate only the direct consumption and exclude consumption of power and fuel in the supporting utilities.
13
Reliance
FORM ‘B’
B.
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT
TO TECHNOLOGY ABSORPTION
1.
SPECIFIC AREAS IN WHICH R&D IS BEING CARRIED OUT
BY THE COMPANY
Research work is being carried out in Polyester Filament Yarn,
Polyester Staple Fibre and Petrochemical Processes. The
emphasis has been on product development, process
modification for better yield and quality, optimization of
process parameters, energy conservation, cost reduction etc.
2.
BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D
a) PRODUCT DEVELOPMENT/IMPROVEMENT
i.
ii.
iii.
POY suitable for draw twisting and draw warping
process.
1.0 Denier optically bright fibre.
1.2 Denier optically bright fibre for Open end
spinning.
b)
IMPORT SUBSTITUTION
i.
Development of indigenous radial quench unit for
low denier spinning machines.
ii. Development of local vendors for electrical and
electronic components.
3.
4.
FUTURE PLAN OF ACTION
Projects are proposed for the following:
i.
Evaluation of new types of slurry pumps for polymerisation
plant.
ii. Modification of finisher spray condenser system.
iii. Evaluation of suitable polymer additive for producing bright
POY material in batch polymerisation system.
iv. Development of POY suitable for high speed draw texturing,
v.
warping and draw twisting.
Development of Super High tenacity fibre for use as a sewing
thread.
vi. Development of spin finish for POY, SDY and Staple Fibre.
(Rs. in Lakhs)
EXPENDITURE ON R&D
105.95
A. Capital
883.01
B. Recurring
C. Total
988.96
D.
Total R&D expenditure as a percentage of
total turnover
0.56%
AND
A DAPTATION
ABSORPTION,
TECHNOLOGY
INNOVATION
Efforts made towards technology absorption, adaptation
and innovation, and benefits derived as a result thereof:
1. Higher recovery of Paraxylene on sustained basis.
2. Optimisation of raw Naphtha utilisation based on different C8
precursor availability.
To develop desorbent manufacture.
To develop uses for by-products generated in the manufacturing
process.
To improve yield and recovery of catalyst.
3.
4.
5.
PRODUCT
Polyester filament
Polyester Staple Fibre
Purified Terephthalic Acid
Paraxylene
Linear Alkyl Benzene
Information regarding imported technology
TECHNOLOGY
FROM
(a)
Du Pont (USA)
Du Pont (USA)
ICI (UK)
UOP (USA)
UOP (USA)
YEAR OF
IMPORT
(b)
1982
1985
1986
1985-86
1985
STATUS O F
IMPLEMENTATION
(c)
TECHNOLOGY ABSORBED
TECHNOLOGY ABSORBED
TECHNOLOGY ABSORBED
TECHNOLOGY ABSORBED
TECHNOLOGY ABSORBED
C.
FOREIGN EXCHANGE EARNINGS AND OUTGO
i)
ii)
Activities relating to exports, initiatives taken to increase exports. development of
new export market for products and services and export plans
Total foreign exchange used and earned
Total foreign exchange used
a.
b.
Total foreign exchange earned
Mentioned in the
main report.
Rs. in Crores
239.69
72.75
We wish to state that the Year’s performance reflects savings in foreign exchange amounting to Rs.630 crores, through products
manufactured by the Company.
For and on behalf of the Board of Directors
Dhirubhai H. Ambani
Chairman & Managing Director
14
AUDITORS REPORT
Reliance
To the Members of Reliance Industries Limited
We have audited the attached Balance Sheet of RELIANCE INDUSTRIES LIMITED
as at 31st March 1990 and the Profit and Loss Account of the Company for the year
ended on that date annexed thereto and report that:
1. As required by the Manufacturing and Other Companies (Auditors Report) Order
1988 issued by the Company Law Board in terms of Section 227 (4A) of the
Companies Act 1956 we give in the Annexure hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order
2. Further to our comments in the Annexure referred to in paragraph 1 above we
state that:
(a) We have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept
by the Company so far as appears from our examination of such books As
stated in note No 16(c) and note No 17 of Schedule N to the accounts, as
a result of the unprecedented floods at the Patalganga complex, and the
fire at Byculla Godown, some of the books of account and other records of
the Company were substantially damaged/destroyed The Company has
recompiled the records to the extent possible which have been relied upon
by us.
(c) The Balance Sheet and Profit and Loss Account referred to in this Repor t
are in agreement with the Books of Account.
(d) (i) For the reasons mentioned in Note No 4 of Schedule N to the Accounts
the items of income and expenditure mentioned therein continue to be
accounted for on cash basis.
(ii) For the reasons explained in Note No 12 of Schedule N to the accounts
no provision for taxation has been made for the year.
(iii) Subject to the above in our opinion and to the best of our information
and according to the explanations given to us the said Balance Sheet
and Profit and Loss Account read together with the other notes thereon
give the information required by the Companies Act 1956. in the manner
so required and give a true and fair view:
(a) in so far as it relates to the Balance Sheet of the state of affairs of the
Company as at 31st March 1990; and
(b) in so far as it relates to the Profit and Loss Account of the profit of the
Company for the year ended on that date.
for RAJENDRA & CO.
Chartered Accountants
R.J. SHAH
Proprietor
Bombay
Dated: 27th July 1990
for CHATURVEDI & SHAH
Chartered Accountants
D. CHATURVEDI
Partner
ANNEXURE TO AUDITORS’ REPORT
Referred to in paragraph 1 of our Report of even date
1. The Company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets. However in respect of records
of fixed assets of the Patalganga complex the same were damaged due to
floods at Patalganga; as stated above the same have been recompiled to
whatever extent possible on the basis of available information. According to
the information and explanations given to us most of the Fixed Assets have
been physically verified by the management during the year The comparision
of the results of such verification with the book records in case of the assets
lying at Patalganga complex is in prog ress. According to the information and
explanations given to us in case of the other assets of the Company no material
discrepancies were noticed on physical verification as compared to the book
records. In our opinion the frequency of such verification is reasonable having
regard to the size of the company and the nature of its assets.
2. None of the Fixed Assets have been revalued during the year.
3. As explained to us the stock of stores spare parts raw materials and finished
goods have been physically verified by the management at reasonable intervals
during the year In our opinion the frequency of such verification is reasonable
having regard to the size of the Company and the nature of its business.
In our opinion and according to the information and explanations given to us
the procedures of physical verification of stocks followed by the Management
are reasonable and adequate in relation to the size of the Company and the
nature of its business.
4.
5. As explained to us there were no material discrepancies noticed on physical
verification of the stocks of raw materials and finished goods having regard to
the size of the operations of the Company and the same have been properly
dealt with in the Books of Account We are informed that in respect of stores
and spares. the reconciliation of the recompiled records with those of the
physical verification is in progress.
6. On the basis of our examination of stock and other records and considering
the method adopted for accounting of excise duty referred to in Note No.10 of
Schedule ‘N’ to the accounts, in our opinion, the valuation of stocks is fair and
proper, is in accordance with the normally accepted accounting principles and
is on the same basis as in the preceding year.
7. The Company has not taken any loan, secured or unsecured, from companies,
firms or other parties listed in the register maintained under Section 301 of the
Companies Act 1956 or from companies under the same management within
the meaning of sub section (1B) of Section 370 of the Companies Act 1956.
8. The Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the registers maintained under Section 301 and/
or to the Companies under the same management as defined under sub-section
(1B) of Section 370 of the Companies Act, 1956, except interest free loans to
its subsidiary companies In our opinion, having regard to the long term
involvement with the subsidiary companies and considering the explanations
given to us in this regard the terms and conditions of the above are not, prima
facie, prejudicial to the interests of the Company.
In respect of the loans and advances in the nature of loans given by the Company
to parties other than subsidiary companies, they are generally repaying the
principal amounts as stipulated and are also regular in the payment of interest,
wherever applicable.
9.
10. In our opinion 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 the purchases of stores raw
materials including components plant and machinery, equipment and other
assets and for the sale of goods.
11. In our opinion and according to the information and explanations given to us,
there are no transactions of purchase of goods and materials and sale of goods,
materials and services made in pursuance of contracts or arrangements entered
in the register maintained under Section 301 of the Companies Act 1956 and
aggregating during the year to Rs.50,000 (Rupees Fifty Thousand only) or more
in respect of any party.
12. As explained to us, the Company has a regular procedure for the determination
of unserviceable or damaged stores, raw materials and finished goods Adequate
provision has been made in the accounts for the loss arising on the items so
determined
13. In our opinion and according to the information and explanations given to us
the Company has complied with the provisions of Section 58A of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the Public.
14. In our opinion reasonable records have been maintained by the Company for
the sale and disposal of realisable by-products and scrap wherever significant.
15. In our opinion, the internal audit system of the Company is commensurate with
its size and the nature of its business.
16. The Central Government has prescribed maintenance of Cost Records under
Section 209 (1)(d) of the Companies Act, 1956 in respect of cer tain
manufacturing activities of the Company We have broadly reviewed the accounts
and records of the Company in this connection and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained We have not, however made a detailed examination of the same.
17. According to the records of the Company, Provident Fund and Employees’ State
Insurance dues have been regularly deposited with the appropriate authorities.
18. According to the information and explanations given to us no undisputed
amounts payable in respect of Income tax, Wealth tax, Sales tax, Customs
Duty and excise Duty were outstanding as on 31st March, 1990 for a period of
more than six months from the date they became payable.
19. According to the information and explanations given to us and on the basis of
records examined by us, no personal expenses of employees or Directors have
been charged to Revenue Account other than those payable under contractual
obligations or in accordance with generally accepted business practice
20. The Company is not a sick industrial Company within the meaning of clause
(o) of sub section (1) of Section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
21. 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 provisions
for any loss is required to be made in the accounts
22. In respect of processing activities we are informed that the Company has a
reasonable system for 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 a 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
R.J. SHAH
Proprietor
Bombay
Dated: 27th July 1990
for CHATURVEDI & SHAH
Chartered Accountants
D. CHATURVEDI
Partner
23
Reliance
BALANCE SHEET AS AT 31st MARCH, 1990
Schedule
As at
31st March, 1990
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1989
Rs.
Rs.
SOURCE 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
Current Assets, Loans & Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Less: Current Liabilities and Provisions
Current Liabilities
Provisions
TOTAL
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘G’
‘H’
‘l’
157.92
929.06
903.59
212.74
1,998.79
529.78
377.56
304.90
16.53
698.99
327.27
1,026.26
301.14
48.87
350.01
1,086.98
1,116.33
2,203.31
157.91
913.40
881.48
170.86
1,071.31
1,052.34
2,123.65
1,871.76
368.98
1,469.01
58.05
1,502.78
58.50
361.39
305.66
9.93
676.98
172.48
849.46
238.11
48.98
287.09
676.25
2,203.31
562.37
2,123.65
Notes and Contingent Liabilities
‘N’
As per our Repot of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
R.H. Ambani
Chairman &Managing Director
Joint Managing Director
R.J. Shah
Proprietor
D. Chaturvedi
Partner
Bombay
Dated: 27th July, 1990
24
J.R. Shah
T. Ramesh U. Pai
M.L. Bhakta
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
V.M. Ambani
Directors
Executive Directors
Secretary
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 1990
Reliance
(Rs. in crores)
As at
(6 months)
As at
(12 months)
Schedule
Rs.
Rs.
Rs.
Rs.
‘J’
‘K’
‘L’
‘M’
INCOME
Sales
Other Income
Variation in Stock
EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest
Depreciation
Profit for the year
Less: Withdrawal of backward area incentives under 1979
Package Scheme of incentives availed
of in prior years
Less Transferred from General Reserve
Add:
Balance brought forward from last year
Add:
(i) Excess Provision in past written back on account of
a) Doubtful Debts and Advances
b) Net exchange difference on repayment of
loans and deferred payment liabilities
(ii)Investment Allowance (Utilised) Reserve written
back
Amount Available for Appropriations
APPROPRIATIONS
Taxation Reserve
Investment Allowance Reserve
Debenture Redemption Reserve
General Reserve
Proposed Dividend (subject to tax)
Preference Shares
Equity Shares
Balance carried to Balance Sheet
1,840.66
15.64
3.32
20.94
1,414.48
171.73
161.97
28.36
28.36
––
––
10.00
10.00
8.00
8.00
0.86
45.64
1,112.45
7.88
49.27
1,859.62
1,169.60
1,769.12
90.50
––
90.50
19.36
109.86
––
2.90
112.76
1,090.23
79 37
––
79.37
11.25
90.62
16.03
––
106.65
14.21
897.64
91.58
86.80
––
––
0.85
15.18
––
30.00
6.00
5.00
0.65
45.64
82.50
30.26
87.29
19.36
Notes and Contingent Liabilities
‘N’
As per our Repot of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
R.H. Ambani
Chairman &Managing Director
Joint Managing Director
R.J. Shah
Proprietor
D. Chaturvedi
Partner
Bombay
Dated: 27th July, 1990
J.R. Shah
T. Ramesh U. Pai
M.L. Bhakta
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
V.M. Ambani
Directors
Executive Directors
Secretary
25
Reliance
SCHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE ‘A’
SHARE CAPITAL
Authorised:
20,00,00,000 Equity Shares of Rs 10 each
30,000 11% Cumulative Redeemable
Preference Shares of Rs 100 each
5,50,000 15% Cumulative Redeemable
Preference Shares of Rs 100 each
4,42,00.000 Unclassified Shares of Rs.10 each
Issued & Subscribed:
15,21,46,493 Equity Shares of Rs 10 each fully
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
200.00
200.00
0.30
5.50
44.20
250.00
0.30
5.50
44.20
250.00
Called-up
Less - Calls unpaid - by Directors
by others
152.14
––
0.02
152.14
––
0.03
Investment Allowance (Utilised) Reserve
As per last Balance Sheet
Add: Transferred from Investment Allowance
Reserve
Less:Transferred to Profit and Loss Account
to the extent not required
Taxation Reserve
As per last Balance Sheet
Add Transferred from Profit and Loss
Account
General Reserve
As per last Balance Sheet
Less Transferred to Profit and Loss Account
30.000 11% Cumulative Redeemable
Preference Shares of Rs 100 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 each
fully paid-up (redeemable at any
time after 31st December. 1994
but not later than 31st December
1997)
152.12
152.11
Add: Amount transferred from
Profit & Loss Account
0.30
0 30
Profit & Loss Account
SCHEDULE ‘C’
5.50
157.92
5.50
157.91
SECURED LOANS
As at
31st March, 1990
Rs.
701.42
Rs.
B/f
(Rs in crores)
As at
31st March, 1989
Rs.
713.40
Rs.
113.80
30.00
143.80
2.90
10.00
10.00
56.84
28.36
28.48
8.00
113.80
––
113.80
––
140.90
113 80
10.00
––
20.00
10 00
51.84
––
51.84
5.00
36.48
30.26
929.06
56.84
19.36
913.40
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
Of the above Equity Shares
1.
(a) 1.56,78,440 Shares were allotted as fullypaid-upBonus Sharesby capitalisation of
Share Premium and Reserves
(b)
60,62,000 Share were allotted as fully paid-up pursuant toSchemes of Amalgama-
(c) 9.44.78.433 Share were allotted as fully paid-up Shares onconversion/surrender of
tion without payments being received in cash
(d)
(e)
Debentures
13.24,000 Shares were issued on conversion of Term Loans
4.453 Shares (including 1,660 Shares by way of Bonus Shares by Capitalisation
of Share Premium and Reserves) are reserved for allotment to some of
the Shareholders/purported transferees of shares of erstwhile The Sidhpur
Mills Company Limited
2.
The Company will be required to issue and allot additional 18.667 Equity Shares of Rs. 10
each at a premium of Rs 15/- per share to the shareholders of erstwhile The Sidhpur Mills
Company Limited as Right Shares. if the Court so decides.
A) DEBENTURES:
i) 13 5% Convertible Secured Debentures of
Rs.150 each fully paid (Series ‘E’)
Less: Converted
80.00
26.67
53.33*
includes debentures of face value of
(Rs.25.500) held by Directors
ii) 15% Non-convertible Secured Debentures of
Rs.100 each fully paid. (series ‘F’)
Less Bought back (Net of re-issue)
270.00
3.33
266.67*
* Includes debentures of face value of
(Rs.35,000) held by Directors
iii) 14% Non-Convertible Secured Redeemable
80.00
26.67
53.33
270.00
4.78
265.22
Debentures of Rs.100 each fully paid
80.00
80.00
SCHEDULE ‘B’
a)
b)
B) TERM LOANS
1. From Banks
Foreign Currency Loans
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
Sanwa Bank Ltd. Tokyo, Japan
RESERVES & SURPLUS
Debenture Redemption Reserve
As per last Balance Sheet
Acid:- Transferred from Profit & Loss
Account
Share Premium Account
As per last Balance Sheet
Less:- Calls unpaid - by Directors
by others
Investment Allowance Reserve
As per last Balance Sheet
Less:-Utilised for purchase of machinery dur
ing the year transferred to Investment
Allowance (Utilised) Reserve
Add:- Transferred from Profit & Loss Account
C/f
26
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
18.25
4.25
6.00
673 29
––
0.14
10.25
c) Rupee Loans
2. From Financial Institutions
Foreign Currency Loans
a)
b) Rupee Loans
3. From Others:
Housing Development Finance
Corporation Ltd.
673.17
673 .15
C) WORKING CAPITAL LOANS
––
––
––
30.00
10.00
701.42
30.00
713.40
From Banks
D ) WORKING CAPITAL TERM LOANS
From Banks
E) BRIDGE LOANS
From Financial Institutions
E) DEFERRED PAYMENT LIABILITIES
To Foreign Machinery Suppliers
(Guaranteed by Banks and Financial
Institutions)
10.25
8.00
673.29
––
0.12
30.00
30.00
––
10.00
400.00
398.55
59.14
65.76
7.85
0.75
74.36
103.49
0.16
103.65
––
0.37
59.51
95.53
19.16
114.69
4.11
1.46
178.31
300.80
24.48
––
––
903.59
179.47
277.79
––
24.25
1.42
881.48
SCHEDULE ‘C’ (Contd.)
NOTES:
Of the above
1.
(a) Debentures referred in A(ii). Term Loans referred in B save and except B(l)(a) to the
extent of Rs 17.53 crores and B(3) are secured by mortgage of deposit of title deeds of
the properties situated at Naroda. Dist. Ahmedabad in the state of Gujarat and at
Patalganga. District Raigad in the state of Maharashtra.
(b) Debentures referred in A (iii) are secured by legal mortgage in English form on the
properties situated at Naroda. District Ahmedabad in the state of Gujarat and by deposits
of title deeds on the properties situated at Patalganga. District Raigad in the state of
Maharashtra and are to be secured by hypothecation on the moveable properties situated
at Patalganga. District Raigad in the state of Maharashtra These Debentures are
redeemable at a premium of 5øo on the face value of the said Debentures between the
5th year and 9th year from the date of allotment in equal instalments The redemption of
the Debentures will commence from November, 1992.
(a) Debentures referred in A(i) are secured by a legal mortgage in English form on the
properties situated at Naroda District Ahmedabad in the state of Gujarat The Debentures
along with Cumulative interest payable on the Debentures referred to in A(ii) shall rank
subsequent to the charges created by the Company in favour of
(i)
Trustees for the holders of Debentures referred in A(ii) and (iii). and
(ii) Other Financial Institutions/Banks for their outstanding loans/guarantees
(b) Balance ‘amount of Debentures referred in A (i) is redeemable at par by 10th December
1996 with an option to repay these amounts in one or more instalments by drawing lots
at any time after 10th December. 1993.
(a) The Debentures referred in A(ii) 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 buyback at par the said Debentures provided:
(i)
(ii)
the face value of the total holdings of the debentureholder in each case does not
exceed Rs 40,000 and
the debentureholder has held the debentures for a period of not less than one year
on the date of his offer.
(i)
(c) The Company can reissue at par such bought back Debentures
(d) The Company received request for buy teach of Debentures after the end of the financial
year of an aggregate nominal value of Rs 2.44 crores till date (Since paid Rs 1.63
crores)
Term Loan referred in B(1)(a) to the extent of Rs 9.80 crores are secured exclusively by
hypothecation of specific items of plant and machinery situated at Naroda and Patalganga.
(ii) Term Loans referred in B(1)(a) to the extent of Rs 773 crores is secured by guarantee
issued by one of the Bankers of the Company against hypothecation of all moveable
assets both present and future situated at Naroda and Patalganga.
2.
3.
4.
Reliance
5.
6.
7.
8.
Term Loans referred in B(2)(a) secured against the Fixed Assets referred to para (i)(a)
above. exclude Rs 6.50 crores availed for M.E.G. project which is being implemented by
Reliance Petrochemicals Limited and is accordingly transferred and therefore excluded.
Term Loans referred in B(3) are secured/to be secured by mortgage by deposit of title
deeds of specified residential quarters situated at Panvel and Mohapada, District Raigad
in the state of Maharashtra.
The charges created on the Debentures and Term Loans referred to in A and B above rank
pari passu. inter-se. save and except.
(i) Debentures referred to in A(i) and cumulative interest payment on Debentures referred
in A(ii) and
(ii) Term Loans referred in B(1)(a) to the extent of Rs.9.80 crores, and B(3).
(i) Working Capital Loans from Banks referred to in ‘C’ are secured against hypothecation
of present and future stock of raw materials, stock-in-process, spares and stores,
book debts, outstanding monies and receivable claims, trust receipts etc.
(ii) Working Capital Term Loan from Banks referred to in ‘D’ are to be secured against
hypothecation of present and future stock of raw materials, stock-in-process, spares
and stores. book debts. outstanding monies and receivable claims, trust receipts,
etc,, of the company and are also to be secured by a second charge on the immovable
assets of the company both situated at Naroda and Patalganga.
9.
Secured Loans include Rs.46 57 crores repayable within one year excluding monies payable
on surrender of debentures under buy-back scheme as mentioned in 3(b) above.
SCHEDULE ‘D’
UNSECURED LOANS
Fixed Deposits
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
(including Cash Certificates of Rs.9 33 crores)
176.02
165.69
Short Term Loans from:
Financial Institutions
i )
ii) Banks
iii) Deferred payment liabilities to
indigenous machinery suppliers
Interest tree Loans under Sales-tax
deferral 1983 scheme
* Includes Rs 35.81 crores repayable within one year
3.00
16.00
0.14
5.00
––
0.17
19.14
17.58
5.17
––
212.74*
170.86
SCHEDULE ‘E’
FIXED ASSETS
Nature of
Fixed Assets
Goodwill
Leasehold Land
Freehold Land
Buildings
Plant 8 Machinery
Electric Installation
Factory Equipments
Furniture & Fixtures
Vehicles
Capital Expenditure pending allocation and Advance
against Capital Expenditure
Previous Year
NOTES:
151.48
1,871.76
1,862.66
GROSS BLOCK (AT COST)
DEPRECIATION
NET BLOCK
As at 1.4.89
Rs.
Additions
Rs.
Deductions
Rs.
As at 31.3.90
Rs.
Total upto 31.3.90
Rs.
As at 31.3.90
Rs.
As at 31.3.89
Rs.
(Rs in Crores)
1.23
4.83
0.11
90.47
––
0.02
––
8.69
1,557.75
164.38
37.80
6.78
13.53
2.78
8.68
0.24
5.34
1.68
79.72
268.75
204.48
––
––
––
0.11
3.34
0.01
––
0.02
0.24
138.00
141.72
195.38
1.23
4.85
0.11
99.05
1,718.79
46.47
7.02
23.85
4.22
93.20
1,998.79
1,871.76
––
––
––
10.53
505.57
6.90
1.81
4.28
0.69
––
529.78
368.98
1.23
4.85
0.11
88.52
1.23
4.83
0.11
82.17
1,213.22
1,207.23
39.57
5.21
19.57
3.53
93.20
1,469.01
1,502.78
32.84
5.33
15.30
2.26
151.48
1,502.78
(a) Leasehold Land includes Rs 0 74 Crore 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 5 12 Crores (ii) Cost of ownership premises in Co-operative Housing Societies Rs 1.11 Crores.
(c) Plant and Machinery includes Rs 30 66 Crores under installation.
(d) Electric installation includes Rs 8.69 Crores under installation.
(e) Furniture & fixtures includes Rs. 0.16 Crore being work-in-progress.
(f) Capital Expenditure pending allocation consist of:
i )
Rs. 37.04 Crores on account of advance against capital expenditure (Previous year Rs 11.22 Crores)
ii) Rs 20 60 Crores on account of preoperative expenses (Previous year Rs 136.91 Crores) as per Note No 21 of Schedule ‘N’) and
iii) Rs. 35 56 Crores on account of cost of construction materials at site (Previous year Rs 3.35 Crores)
27
Reliance
SCHEDULE ‘F’
INVESTMENTS (At Cost)
GOVERNMENT AND OTHER SECURITIES
Unquoted
7 Years National Savings Certificate
(face value Rs 5000)
(Deposited with Sales Tax Dept)
(Previous year Rs 5000)
TRADE INVESTMENTS - Unquoted
60 Equity Shares of New Piece Goods
Bazar Co Ltd. of Rs 100 each fully
paid up (Rs.17,000) (Previous year
Rs 17,000)
5 Equity Shares of Bombay Gujarat Art
Silk Vepari Mahajan Co-operative
Shops & Warehouse Society Ltd. of
Rs 200 each fully paid up (Rs 1,000)
(Previous year Rs 1.000)
165 Shares of The Art Silk Cooperative
Society Ltd. of Rs 100 each fully paid
up (Rs 16 500) (Previous year
Rs 16.500)
225 Shares of Crimpers Industrial Co
operative Society Ltd. of Rs 100 each
Rs.25 per share paid up (Rs 5,625)
(Previous year Rs 5.625)
20 Shares of The Bombay Market Art
Silk Co-operative (Shops &
Warehouses) Society Ltd. . of Rs 200
each. fully paid up (Rs 4,000)
(Previous year Rs 4.000)
––
––
––
––
––
IN SUBSIDIARY COMPANIES
Unquoted Wholly owned
210070 Equity Shares of Devti Fabrics Ltd. of
Rs 10 each. fully paid up
0.21
4400 Equity Shares of Trishna Investments
and Leasings Ltd. of Rs 10 each fully
paid up (Rs 44000) (Previous year
Rs. 34000)
––
0.21
Quoted:
57600000 Equity Shares of Reliance
Petrochemicals Ltd. of Rs 10 each
fully paid up
57.60
OTHER INVESTMENTS
Quoted
7530 Equity Shares of Housing
Development and Finance
Corporation Ltd. of Rs 100 each fully
paid up
5622 Equity Shares of The Industrial Credit
0.08
and Investment Corporation of India
Ltd of Rs.100 each fully paid up
0.06
Unquoted
49800 Equity Shares of Hindustan Oil
Exploration Co Ltd. Rs.10 each fully
paid up
1000 Equity Shares of Air Control &
Chemicals Engineering Co. Ltd. of
Rs. 100 each. fully paid up
0.05
0.01
IN DEBENTURES - Quoted
624 Fully Convertible Debentures of
Industrial Credit & Investment
Corporation of India Ltd. of Rs 650
each. fully paid up
IN BONDS - Unquoted
5000 12% HDFC Corporate Bonds of
Rs. 1000 each fully paid up
28
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
AGGREGATE VALUE OF
Quoted Investments
Unquoted Investments
SCHEDULE ‘G’
CURRENT ASSETS
As at
31st March, 1990
Market
Book
Value
Value
164.58
57.78
––
0.27
(Rs in crores)
As at
31st March, 1989
Market
Book
Value
Value
270.96
57.73
––
0.77
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
––
––
INVENTORIES (at cost or market value
whichever is lower except otherwise stated)
(Certified and valued by the Management)
––
––
––
––
––
––
––
0.21
––
0.21
Stores. spares. dyes. chemicals. etc.
Raw materials
Stock-in-transit
Stock-in-process
Finished goods
Others (includes decommissioned machinery of
Rs. 0 04 crore at written down value)
98.88
62.19
8.04
89.75
117.15
1.55
68.45
68.43
9.50
60.07
143.32
11.62
SUNDRY DEBTORS (Unsecured)
Over six Months:
Considered good
Considered doubtful
Less: Provision for doubtful debts
Others considered good
CASH AND BANK BALANCES
377.56
361.39
30.80
4.66
35.46
4.66
30.80
274.10*
24.81
2.92
27.73
2.92
24.81
280.85
304.90
305.66
Cash on hand
Balance with Scheduled Banks In Current
Accounts
In Fixed Deposit Accounts includes Rs.0.01
crore lodged with Central Excise Authorities)
Balance in Current Account with Barclays Bank
PLC U.K. (Rs.13 336) (Maximum balance during
the year Rs.0.03 crore)
0.42
15.85
0.26
––
0.56
8.65
0.71
0.01
16.53
698.99
9.93
676.98
*
includes Rs.1.75 crores due from Devti Fabrics Ltd. (subsidiary company) and Rs.111.52
crores on account of Bills of Exchange
SCHEDULE ‘H’
57.60
57.81
57.81
LOANS AND ADVANCES
UNSECURED - (CONSIDERED GOOD UNLESS
STATED OTHERWISE)
Loans to subsidiary companies
Devti Fabrics Limited
i)
(Maximum debit balance at any time during
the financial year Rs.3.87 crores)
(Refer Note No.15)
Trishna Investments and Leasings Ltd.
(Maximum debit balance at any time during
the financial year Rs 148.29 crores)
(Refer Note No 15)
ii)
148.29
iii) Reliance Petrochemicals Limited
(Maximum debit balance at any time during
the financial year Rs.50 00 crores)
50.00
Advances recoverable in cash or in kind or for
value to be received
Deposits
Prepaid expenses
Balance with Customs, Central Excise
Authorities etc.
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
1.75
1.35
46.79
50.00
98.14
41.59
21.90
8.79
2.06
172.48
200.04
75.23*
24.65
22.59
4.76
327.27
*
Includes
(i) Rs 0.18 crore from Officers (Previous year Rs.0.23 crore) Maximum balance at any
time during the year Rs.0.23 crore (Previous year Rs.0.23 crore).
(ii) Rs.0 19 crore as contribution towards Equity Share Capital in Reliance Capital and
Finance Trust Ltd. The Company has agreed to subscribe to 1800000 shares of Rs 10
each of the said company which have since been allotted.
*
Excludes Rs 0 03 crore considered doubtful and provided for.
0.08
0.05
0.14
0.13
0.05
0.01
0.06
0.06
0.04
––
58.05
––
0.50
58.50
SCHEDULE ‘I’
CURRENT LIABILITIES AND PROVISIONS
As at
31st March, 1990
Rs.
Rs.
(Rs in crores)
As at
31st March, 1989
Rs.
Rs.
SCHEDULE ‘L’
VARIATION IN STOCK
CURRENT LIABILITIES
Sundry Creditors
Sundry Deposits
Unclaimed Dividends
Interest accrued but not due on loans
Excess Share and Debenture Application monies
refundable
includes for Capital Expenditure Rs 63.12 crores
Fixed Deposits matured but unclaimed Rs 1.19
crores and Acceptance of Rs 110.19 crores
PROVISIONS
Gratuity and Superannuation
Provision for Taxation
Proposed Dividend
245.48*
2.73
3.50
49.15
0.28
184.08
3.09
1.12
49.53
0.29
301.14
238.11
0.37
2.00
46.50
0.69
2.00
46.29
48.87
350.01
48.98
287.09
SCHEDULES FORMING PART OF THE
PROFIT & LOSS ACCOUNT
1989-1990
(12 months)
Rs.
(Rs In Crores)
1988-1989
(9 months)
Rs.
3.78
1.85
3.02
6.99
––
15.64
1.38
1.35
0.01
5.13
0.01
7.88
As at
1989-1990
(12 months)
Rs.
Rs.
(Rs in crores)
As at
1988-1989
(9 months)
Rs.
Rs.
SCHEDULE ‘J’
OTHER INCOME
incentives assistance and drawbacks on Exports
receivable
Processing charges
Dividend (Gross)
On other investments (Includes Rs 3.00 crores
from subsidiary company)
Tax at source Rs 0.70 crore
Miscellaneous Income
Profit on Sale of Investments
SCHEDULE ‘K’
VARIATION IN STOCK
STOCK-IN-TRADE (at close)
Finished goods
Stock in process
Others
STOCK-IN-TRADE (at commencement)
Finished goods
Stock in process 60.07
Other
RAW MATERIALS CONSUMED
Stock at commencement
Add: Purchases (including material
68.43
transferred out of Trial run production)
525.61
Less: Stock at close
MANUFACTURING EXPENSES
Carriage Inward
Stores & spare parts
Dyes & Chemicals
Electric Power fuel and water
Machinery repairs
Building repairs
Labour. Processing and machiner y hire
charges
Excise Duty
Lease Rent
PAYMENTS TO AND PROVISIONS 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 and
Advertisement Expenses
Brokerage and Commission
Export Expenses
Packing Expenses
Warehousing Charges
Freight and forwarding charges
Octroi Expenses
Sales Tax
ESTABLISHMENT EXPENSES
Insurance
Rent
Rates and taxes
Other repairs
Travelling expenses (including Rs.0 16 crore
for Directors)
Payment to Auditors
Directors fees (Rs.20000) (Previous year
Rs. 17,000)
General Expenses
Provision for doubtful recoveries
Charity & Donation
Loss on sale of Assets (Net)
117.15
89.75
1.51
143.32
1.70
143.32
60.07
1.70
208.41
205.09
SCHEDULE ‘M’
100.28
50.70
4.84
205.09
3.32
155.82
49.27
INTEREST
Debentures
Fixed Loans
Others (Net)
Reliance
As at
1989-1990
(12 months)
Rs.
Rs.
(Rs in crores)
As at
1988-1989
(9 months)
Rs.
Rs.
59.01
346.33
405.34
68.43
531.85
336.91
5.25
14.73
28.66
74.69
2.76
0.74
8.85
278.91
11.65
594.04
62.19
5.34
33.79
52.95
105.47
9.93
1.82
14.96
445.02
24.24
693.52
426.24
31.37
22.50
3.94
8.56
11.87
19.30
0.44
24.84
2.81
14.30
2.25
19.73
9.38
0.80
0.12
3.45
2.60
0.29
––
30.63
1.75
0.61
0.07
2.23
4.88
43.87
29.61
8.70
11.73
0.12
17.85
1.28
5.09
1.71
21.16
95.54
67.64
2.95
1.12
0.03
1.55
1.26
0.20
––
24.75
––
0.32
5.06
49.70
1414.48
37.24
897.64
1989-1990
(12 months)
Rs.
60.42
45.39
65.92
(Rs. in crores)
1988-1989
(9 months)
Rs.
27.17
17.50
46.91
171.73
91.58
29
Reliance
SCHEDULE ‘N’
NOTES AND CONTINGENT LIABILITIES
1.
2.
3.
4.
5.
6.
7.
The current financial year is for a period of twelve months as against nine months in the
previous financial year. The figures of the previous financial year to that extent are, therefore,
not comparable.
The previous financial year’s figures have been regrouped wherever necessary.
figures are shown in crores of rupees in accordance with the approval from the Company
Law Board Figures less than Rs.50,000 have been shown at actuals in brackets.
The Company has continued to account the following items on cash basis, since it is not
possible to ascertain with reasonable accuracy the quantum to be provided for in respect
of (i) Interest on overdue bills and delayed payment charges, (ii) Performance incentives
on sales. (iii) Premium on redemption of Debentures. (iv) Interest on letters of credit
outstanding, (v) Insurance and other claims (vi) Disposal of sundry items other than usable
waste of POY/PSF.
Sales is inclusive of Rs.10.61 crores and Rs.23.01 crores being the recovery of Sales Tax
and Excise Duty respectively.
Interest - Others(Net)’ is arrived at after deducting Rs 1.21 crores (Tax at source Rs 0.05
crore) being interest received/receivable.
Income and Expenditure amounting to Rs 0.86 crore and Rs.2.22 crores respectively relating
to the previous years have been suitably accounted for in respective heads.
8.
(i) Auditors’ Remuneration:
(a) Audit Fees
(b) Tax Audit Fees
(c) For Certification and Consultation in finance and
Tax matters
(d) Out-of-pocket expenses
( i i ) Cost Auditor
1989-1990
Rs.
0.17
0.07
(Rs. in crores)
1988-1989
Rs.
0.12
0.05
0.04
0.01
0.29
0.02
0.01
0.20
9.
Audit Fees (Rs. Nil) (Previous year Rs.35,000)
––
(a) The Company has been advised that the computation of net profits for the purpose of
Directors’ remuneration under Section 349 of the Companies Act 1956 need not be
enumerated since no commission is agreed to be paid to the Directors. Fixed monthly
remuneration has been paid to the Directors as per the Schedule XIII to the Companies
Act, 1956 and/or as per the approval of the Central Government wherever applicable.
––
(b) Managing Directors’ and Executive Directors’ remuneration:
Salaries
i )
ii) Contribution to Provident Fund and
Superannuation Fund
iii) Provision for Gratuity (as per actuarial Value-
tion) (Rs 47,200) (Previous year Rs.22,300)
iv) Perquisites
1989-1990
Rs.
0.07
(Rs in crores)
1988-1989
Rs.
0.03
0.02
––
0.03
0.01
––
0.02
10. The Company has been accounting liability for Excise Duty in respect of finished products
lying in factory/bonded premises as and when they are cleared/debonded Accordingly.
estimated liability amounting to Rs 29.39 crores in respect of such items at the end of the
financial year has not been provided for in the accounts and hence not included in the
valuation of inventory. This accounting treatment has no impact on profits of the current
financial year.
(a) The Company has been accounting foreign currency loans and deferred payment
liabilities availed to acquire plant and machinery at the exchange rates prevailing on
relevant dates.
11.
(b) No effect has been given in the accounts to the increased liability of Rs.80 60 crores
on account of fluctuations in the rates of exchange at the year end with regard to
outstanding balances of foreign currency loans.
(c) During the year. the Company has capitalised payments made on account of
fluctuations in the rates of exchange on repayment of loans and deferred payment
liabilities and the cost of rollover charges on forward contracts to respective fixed
assets and depreciation thereon has accordingly been provided for in the accounts.
(a) The Income-tax assessments of the Company have been completed upto Assessment
Year 1987-88. Total tax demands raised by the Income Tax Department upto the said
assessment years are Rs.18.56 crores. which are disputed The Company is advised
that the Taxation Reserve created in past of Rs.10 crores. however, would be adequate
enough to meet the liabilities, if any
In terms of provisions of Section 115 J of the Income tax Act, 1961. and other relevant
provisions of law the Company has, based on legal advice. prepared separate Profit
and Loss Accounts of different Units. on the same lines as were followed last year. On
the basis of such accounts. there is no liability for taxation. and hence no provision for
taxation is considered necessary However, as a measure of abundant caution, an
amount of Rs.10 00 crores has been transferred from Profit and Loss Account to the
Taxation Reserve.
(b)
12.
30
13. Guidelines dated 14th January, 1987 of the Government India require Companies raising
resources through issue of Debentures to create a Debenture Redemption Reserve. The
Company has been advised that this notification is not applicable to Debentures issued
before the date of the said notification. In respect of Debentures issued subsequent to the
date of the said notification, the Company, has transferred Rs. 8.00 crores during the
financial year to the Debenture Redemption Reserve.
14. Depreciation on assets has been provided on straight-line method as prescribed by
Schedule XIV to the Companies Act, 1956 read with Section 205(2)(b) of the said Act. The
provision for depreciation for multiple shifts wherever applicable as per records and as
advised, has been made on the basis of the actual utilisation of respective eligible assets.
15. The Company has an investment of Rs.0.21 crore and Rs.44,000 in the Share Capitals of
Devti Fabrics Limited, and Trishna investments & Leasings Ltd., wholly owned subsidiary
companies. Loans to these subsidiary companies of Rs.1.75 crores and Rs.148.29 crores
respectively, receivables on account of sale of goods, of Rs. 1.75 crores from Devti Fabrics
Limited and guarantees to Banks and Financial Institutions of Rs.6.00 crores aggregate to
Rs.157.79 crores. The losses of these companies exceed their paid up capital and reserves
on 31st March, 1990. In view of the long term involvement of the Company in both the said
companies, no provision has been made in the accounts for the probable loss that may
arise.
16. Due to the unprecedented floods at the Patalganga Complex of the Company on 24th July,
1989.
(a)
Inventories having a total estimated value of Rs.85.03 crores were damaged or
destroyed. After taking credit for the value of the damaged stocks which were either
sold or consumed, and. considering provision made against stocks remaining unsold,
as at 31st March. 1990. a net loss of Rs.32.37 crores has been charged to previous
heads in the profit and loss account.
(b) Plant and Machinery were damaged and had to be repaired and reconditioned. The
cost of such repairs and other incidental expenses (including the cost of periodic shut
down for overhauling and change of catalyst for which separate costs cannot be
ascertained) aggregating to Rs.11.64 crores has been charged to various heads in
the profit and loss account.
(c) Books of Accounts and other records have been substantially damaged. Records,
recompiled to the extent possible, have been considered while preparing the accounts.
17. Fire at Byculla godown premises on 12th May, 1990 has destroyed books of accounts and
records of the Company which included records of the current financial year. On the basis
of available information records have been recompiled to the extent possible and the same
have been considered while preparing the accounts.
18. The Superintendent of Stamps, Central Stamp Office, Bombay had issued Demand Notices
on the Company aggregating to Rs.15.40 crores being the alleged differential stamp duty
payable under the Bombay Stamp Act’ in respect of Debenture Trust Deeds executed in
the State of Gujarat by the Company in favour of Debenture Trustees to secure Debentures
of Series ‘F’ and Series ‘G’. Pursuant to the interim order of the Bombay High Court. the
Company has furnished Bank Guarantees aggregating Rs.3.85 crores in favour of the
Prothonotary and Senior Master of the High Court, Bombay and has covenanted not to
further encumber the immovable properties of the Company aggregating Rs.11.55 crores
till the matter is disposed by a Division bench of the Bombay High Court. The Company is
advised that there would be no liability in this regard and accordingly. no provision has
been made in respect thereof in the accounts.
19 (a) The Company has received a Show Cause Notice from Excise Authorities making
various allegations in regard to non-payment of duty aggregating Rs.27.23 crores.
The liability has been disputed. The Company has been advised that there would be
no liability on this account and accordingly. no provision has been made in respect
thereof in the accounts.
(b) The Company has made a payment of Rs.1.00 crores during the year to the Excise
Authorities, Ahmedabad, for proceedings relating to 1983 which is disputed and
accordingly not provided for.
20.
(a) The Company has received show cause notice from customs authorities alleging import
of PTA plant of higher capacity and consequently have claimed Rs.174.03 crores by
way of differential customs duty. The Company is disputing the demand. The Company
has been advised that there would be no liability on this account and accordingly no
provision has been made in respect thereof in the accounts.
(b) With regard to the show cause notice received from the customs authorities demanding
differential duty/penalty of Rs.119.64 crores, the Company successfully challenged
the said notice in adjudication proceedings before the Collector of Customs. The
customs department has preferred an appeal to the Customs, Excise and Gold Control
Appellate Tribunal against which the Company has filed a writ petition in the Honourable
High Court at Delhi. The Company is advised that there would be no liability on this
account and accordingly no provision has been made in respect thereof in the
accounts.
21. Pre-operative expenses in respect of Projects upto 31st March, 1990 to be capitalised
1989-1990
(Rs in Crores)
Upto Total upto
31st March 31st March
1990
1989
22. CONTINGENT LIABILITIES
Reliance
(Rs in Crores)
As at 31st
March 1990
Rs.
As at 31st
March 1989
Rs.
24.21
1.44
24.21
1.44
(a) Estimated amount of contracts remaining to be ex
ecuted on capital account and not provided for
89.10
46.75
Raw material consumed (during trial run)
Carriage inward
Consumption of stores, chemicals and
Catalysts
Electric power. fuel and water
Labour charges
Excise duty
Salaries Wages and Bonus
Employees welfare and other amenities
Insurance
Rent
Rates and taxes (Rs 42967)
Other repairs
Travelling Expenses
General expenses
Debentures issue expenses
Interest
Debentures
Fixed loans
Others (Net)
Less: Sales/transfer/stock at end of Trial run
Miscellaneous income
Transferred/Capitalised by allocating to
Building. Plant and machinery
––
––
––
––
––
––
––
––
0.66
––
––
––
0.06
13.40
––
––
––
2.85
16.97
––
––
16.97
0.24
10.10
0.26
0.05
1.60
0.78
0.93
0.49
—
0.13
0.63
26.52
9.96
66.71
21.80
7.88
173.73
35.98
0.84
136.91
The above items not forming par t of profit and loss account
23. LICENCED AND INSTALLED CAPACITY
(a) Polyester Filament Yarn/Polyester Chips
(b) Polyester Staple fibre/Polyester Chips
(c) Man-made Fibre Spun Yarn on Worsted System
(d) Man-made Fabrics
(Spindles)
(Looms)
(Knitting M/c )
(e) Purified Terepthalic Acid
(f)
Linear Alkyl Benzene
(g) Synthetic Filament Yarn including Industrial Yarn/Tyre Cord
(h) Ethylene
(i) Propylene
(j) Butadiene & Other C4s
(k) Acrylic Fibre
(1) Polypropylene
––
0 .24
10.10
0.26
0.05
1.60
0.78
1.59
0.49
––
0.13
0.69
39.92
9.96
66.71
21.80
10.73
190.70
35.98
0.84
153.88
133.28
20.60
Unit
M.T.
M.T.
Nos.
Nos.
Nos.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
(m) Styrene
(n) Polystyrene
(o) Styrene Butadiene Rubber
(p) Linear low Density Polyethylene
(q) Acrylonitrile
(r) Butyl Rubber
(s) Export Oriented Unit
(i) Para-xylene
(ii) Purified Terephthalic Acid
*
+ + Based on average Denier of 40
@ Approved under MES Installed Capacity based on Certificate of the Management
Subject to automatic re-endorsement of capacity Further 15.000 tonnes p.a.
A
has been approved under applicable broad-banding scheme.
On the basis of Letter of Intent received
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
(b) Outstanding guarantees furnished to Banks and
Financial Institutions including in respect of Letters of
Credit opened by Bankers
304.59
140.46
(c) Bonds executed in favour of Excise and Custom
Authorities
19.28
75.08
(d) Uncalled liability on partly paid shares
(Rs 16,875) (Previous year Rs 16,875)
—
—
(e) Claims against the company/disputed liabilities not
acknowledged as debts including Rs 3.57 crores for
excise duty
Previous year Rs 4.17 crores)
(f) Export bills discounted against irrevocable
Letters of Credit
(g)
Indemnities towards expor t obligations against capital
goods import
(h) Guarantee to Banks and Financial Institutions against
credit facilities extended to subsidiary companies
(i)
Import Duty on Raw Materials/Chemicals & catalysts
imported under Advance Licences against fulfilment of
export obligations
7.78
0.01
0.67
6.00
6.29
1.43
0.62
6.00
62.29
7.23
Licensed Capacity
Installed Capacity
A
@
@
@
1989-1990
32,300A
60,000
20,000
4 5 0
22
200,000
80,000
2,000
320,000
155,000
98,000
20,000
M.T.
80,000*
40,000*
80,000*
100,000*
70,000
25,000*
270 000*
200,000*
1988-1989
32,300
45,000
20,000
4 5 0
22
100,000
60,000
2,000
320,000
155,000
98,000
20,000
100,000
*
––
––
––
––
––
––
––
––
++
1989-1990
25,125
45,000
12,494
4 5 0
20
100,000
60,000
––
––
––
––
––
––
++
1988-1989
25,125
45,000
12,494
4 5 0
20
100,000
60,000
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
24. PRODUCTION OF FINISHED PRODUCTS MEANT FOR SALE
Unit
1989-1990
1988-1989
Yarn (Polyester & Blended etc )
Polyester Chips
Fabrics
Polyester Staple fibre
P.T.A
L.A.B
Paraxylene
By-Products
25. VALUE OF IMPORTS ON C I F BASIS IN RESPECT OF:
(a) Raw Materials
(b) Dyes and Chemicals. Catalysts, Stores and Spare parts
(c) Capital goods
M.T.
M.T.
Mtrs. In lacs
M.T.
M.T.
M.T.
M.T.
M.T.
61,189
5,239
492.03
53,120
39,306
48,394
10,402
31,456
1989-1990
Rs.
147.43
43.29
0.03
42,541
4,149
365.87
27,374
32.881
28,413
––
3,201
(Rs in crores)
1988-1989
Rs.
115.85
20.32
5.64
31
Reliance
26. 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 nil) on foreign currency loans - Previous year Rs. 15625)
Technical know-how & Engineering Fees
1989-1990
Rs.
23.88
2.26
13.24
9.56
(Rs. in crores)
1988-1989
Rs.
17.16
8.63
6.90
26.14
27. QUANTITATIVE INFORMATION IN RESPECT OF OPENING STOCK. CLOSING STOCK. PURCHASES. SALES AND CONSUMPTION OF RAW MATERIALS
Unit
Quantity
Rs. in crores
Quantity
Rs. in crores
1989-1990
1988-1989
143.32
100.28
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
M T.
M.T.
Mtrs in lacs
M.T.
M.T.
Mtrs in lacs
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T
M.T.
M.T.
M.T.
M.T.
Mtrs in lacs
M.T.
M.T. /K.L.
4,675
85.70
5,362
3,408
6,009
3,524
64.15
8,410
1,234
4,414
1,595
1,013
1.50
41
––
63,566
507.59
50,288
7,463
44,146
49,895
8,807
––
178,523
4,677
25,017
41,705
1,774
5,986
126.05
44,368
18,719
––
60.07
1.70
117.15
89.75
1.51
20.94
1,019.90
230.73
238.24
36.49
130.34
129.85
18.51
36.60
1,840.66
78.31
13.50
42.79
140.20
17.21
120.69
18.25
57.97
15.33
27.60
531.85
––
531.85
3,619
83.59
3,664
1,529
4,811
4,675
85.70
5,362
3,408
6,009
––
590
3.92
––
––
42,556
367.68
25,697
2,222
31,199
27,215
––
––
––
67,968
3.13
26,613
1,926
2,414
89.81
23,527
11,096
––
50.70
4.84
143.32
60.07
1.70
14.21
621.76
161.80
128.57
11.15
103.90
69.77
––
15.50
1,112.45
––
121.41
0.40
95.32
13.28
43.27
13.68
24.68
7.63
18.00
337.67
0.76
336.91
Rs. in crores
342.29
189.56
531.85
1989-1990
% of total
Consumption
64.36
35.64
100.00
1988-1989
Rs. in crores
221.93
114.98
336.91
% of total
Consumption
65.87
34.13
100.00
(a) Opening Stock
i)
Finished Stocks
Yarn
Fabrics
Polyester Staple Fibre
Polyester Chips
L.A.B
ii) Stock-in-process
iii) Others
(b) Closing Stock:
i)
Finished Stocks
Yarn
Fabrics
Polyester Staple Fibre
Polyester Chips
LAB
Paraxylene
Stock in process
ii)
iii) Others
(c) Purchases
Yarn
Fabrics
Fibre
Others
(d) Sales
Yarn (Polyester & Blended)
Fabrics
Polyester Staple Fibre
Polyester Chips
P T A
L.A.B.
Paraxylene
Others
(e) Raw Material consumed
Naptha
Paraxylene (including own production during trial run)
PTA.
M.E.G.
Fibre
Yarn
Fabrics (Grey)
N. Paraffin
Benzene
Others
Less - Difference in Stock of Useable Waste
Excluding during trial run
28. VALUE OF RAW MATERIALS CONSUMED
Imported
(including import duty Rs 129 10 crores)
Indigenous
32
29. VALUE OF DYES CHEMICALS. CATALYSTS. STORES AND SPARE PARTS CONSUMED
Imported
Indigenous
30. EARNINGS IN FOREIGN EXCHANGE
Export of goods on FOB basis
31. REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND
The Company has paid dividend in respect of shares held by Non-Residents on repatriation
basis This inter-alia includes portfolio investment and direct investment where the amount
is also credited to Non-Resident External Account (NRE A/c) The exact amount of dividend
remitted in foreign currency cannot be ascertained. The total amount remittable in this
respect is given herein below
(a) Number of Non-resident shareholders
– Final dividend
Number of Equity Shares held by them
– Final dividend
(i) Amount of dividend paid (Gross) Tax at source Rs 0.59 crore (Previous year Rs.0 32
(b)
(c)
crore)
– Final dividend
(ii) Year to which dividend relates
Reliance
Rs. in crores
41.77
44.97
86.74
1989-1990
1988-1989
% of total
Consumption
48.16
51.84
100.00
Rs. in crores
21.30
22.09
43.39
% of total
Consumption
49.08
50.92
100.00
1989-1990
Rs.
72.75
1989-1990
Rs.
(Rs. In crores)
1988-1989
Rs.
26.14
(Rs. In crores)
1988- 1989
Rs.
22,152
12,997,292
23,237
15,529,421
3.90
Final Div. 1988-89
1.96
final Div.1987-88
32.
(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 72,000 per annum
(i) Number of employees
( i i ) Salaries and Bonus
(iii) Contribution to Provident Fund & 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 6.000 per month
(i) Number of employees
(ii) Salaries and Bonus
(iii) Contribution to Provident Fund & Superannuation Fund
(iv) Other Perquisites
1989-1990
(Rs. in Crores)
1988-1989
Rs.
4.29
0.81
1.36
0.37
0.07
0.11
436
60
Rs.
2.09
0.46
1.01
0.17
0.04
0.09
568
93
As per our Repot of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
R.H. Ambani
Chairman & Managing Director
Joint Managing Director
R.J. Shah
Proprietor
D. Chaturvedi
Partner
Bombay
Dated: 27th July, 1990
J.R. Shah
T. Ramesh U. Pai
M.L. Bhakta
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
V.M. Ambani
Directors
Executive Directors
Secretary
33
Reliance
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO COMPANY’S INTEREST IN TF1E
SUBSIDIARY COMPANIES
1. The Financial Year of the subsidiary companies ended on
31st March, 1990
31st March, 1990
31st March, 1990
Devti Fabrics Ltd.
Reliance Petrochemicals Ltd.: Trishna Investments and
Leasings Ltd.
2. Date from which they became subsidiary companies
30th September, 1985
11th January, 1988
30th December 1988
3.
(a) No. of shares held by Reliance Industries Limited (holding 2,10,070 Equity Shares
5,76,00,000 Equity Shares
44,000 Equity Shares
company) with its nominees in the subsidiaries at the end
of the face value of
of the face value of
of the face value of
of the financial year of the subsidiary companies
Rs.10/- each fully paid up
Rs.10/- each fully paid up
Rs.10/- each fully paid-up
(b) Extent of interest of holding company at the end of the
100%
66%
100%
financial year of subsidiary companies
4. The net aggregate amount of the subsidiary companies
profit/(losses) so far as it concerns the members of the
holding company
(a) Not dealt with the holding company’s accounts
i)
ii)
For the financial year ended 31st March 1990
(Rs.100.89 lacs)
For the previous financial years of the subsidiary
(Rs.74.06 lacs)
Rs. Nil
Rs.313.33 lacs
(Rs.760.77 lacs)
Rs.47.29 lacs
companies since they became the holding company’s
subsidiaries
(b) Dealt with in holding company s accounts:
i)
ii)
For the financial year ended 31st March, 1990
Nil
For the previous financial year of the subsidiary
companies since they became the holding company’s
Nil
subsidiaries
Nil
Nil
Nil
Nil
For and on behalf of the Board
D.H. Ambani
R.H. Ambani
Chairman 8iManaging Director
Joint Managing Director
J.R. Shah
T. Ramesh U. Pai
M.L. Bhakta
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
V.M. Ambani
Directors
Executive Directors
Secretary
Bombay
Dated: 27th July, 1990
34
RELIANCE PETROCHEMICALS LIMITED
Regd. Office : Village Mora,
Batha, P.O. Surat - Hazira Road,
Dist. Surat, PIN 394 510
Gujarat State.
35
36
DIRECTORS’ REPORT
To the Members
Your Directors present the Second Annual Report together with the
Audited Statement of Accounts for the year ended 31st March,
1990.
1.
FINANCIAL RESULTS
Dur ing the year under review, your Company has been
implementing the construction of the Petrochemicals Projects
in Hazira. As on 31st March, 1990, your Company has incurred
an expenditure of Rs.532.35 Crores.
A significant event of this year was the announcement of
Minimum Economic Capacities by the Government of India’ to
which your Company responded by taking steps to enhance
the project capacities in the case of MEG from 60.000 TPA to
100 000 TPA and of HDPE. from 50,000 TPA to 100.000 TPA,
there being no change in the capacity of PVC at 100 000 TPA.
The project costs were further updated to provide for additional
investments in construction of a Jetty and setting up of a captive
gas-based Power Plant.
The Financial Institutions, led by ICICI, have approved the
additional project costs as well as the incremental means
of finance.
In view of the said increase in project costs during the year
under review, the Company’s funds were entirely indentified with
the revised costs. Therefore, unlike the previous year, no Profit
and Loss Account for the year 198990 has been prepared, there
being no Revenue operations. A statement of net pre-operative
expenditure has been presented, in accordance with the
prescribed accounting guidelines on the subject.
In the absence of a revenue profit during the year, your Directors
do not propose payment of any Dividend for the year under
review.
This has become possible due to the dedicated and intensive
efforts put in by an about 10,000strong workforce which is engaged
at Hazira, along with the active support and guidance of the foreign
collaborators.
As per the revised schedule, the plant for manufacture of MEG
would be commissioned in the first quarter of 1991 and for
achieving this target, your Company has been able to deploy most
of the equipment at site, as of the date of this report and is all set
to mechanically complete the MEG plant by end of 1990.
Simultaneously, most of the engineering in respect of the PVC
and HDPE plants has been completed and erection of all necessary
equipments has also commenced. Your Directors expect that,
barring unforeseen circumstances, the plants for manufacture of
HDPE and PVC would be mechanically completed in the first
quarter of 1991.
Your Company has also recruited most of the plant personnel
required for operations and maintenance. Intensive training is
imparted to all the technical personnel. In order to ensure dedicated
work force, your Company has provided housing for the labour as
well as for the permanent staff at Surat.
Your Company has commenced taking effective steps for
implementing the project for manufacture of Caustic Soda and
Chlorine.
3.
FIXED DEPOSITS:
Since your Company has not accepted any deposits from the
public. no information is required to be furnished in respect of
outstanding deposits.
4.
PERSONNEL:
As required by the provisions of Section 217 (2A) of the Companies
Act 1956. read with the Companies (Particulars of Employees)
Rules. 1975. the names and other particulars of the employees
are set out in the Annexure forming part of this report.
2.
PROGRESS OF IMPLEMENTATION OF PROJECTS:
5. DIRECTORS:
As you are aware, your Company is setting up the projects at
Hazira where your Company has been allotted around 275
Hectares of land. The entire land filling work and piling work
have been completed.
Your Company has also completed the engineering for the
common utility systems for the three projects. These utility
systems would be commissioned during the last quarter of 1990.
Your Directors had stated in the first Directors’ Report for the
per iod upto 31st March, 1989, that barr ing unforseen
circumstances the projects would be commissioned in the
second half of 1990. However in order to instal capacities based
on the revised Government policy of Minimum Economic Size
it became necessary to instal additional facilities to cater to the
larger capacities. Additionally construction of a captive gas
based power plant for assured power supply and construction
of a jetty for handling Ethylene and other products have
compelled your Company to re-schedule commissioning of the
three projects in phases.
Your Directors are pleased to inform you that inspite of having
to instal additional facilities for the enhanced capacities and
the requirement of constructing a Captive Power Plant and a
Jetty, your Company has been successful in containing the time
overrun to only a few months beyond the or iginal schedule.
The Industrial Credit and Investment Corporation of India Limited
(ICICI) has nominated Shri C. Chandrasekhar as their Nominee
Director on the Board of Directors of your Company. Shri C.
Chandrasekhar joined the Board of your Company on 27th March,
1990.
In terms of the provisions of Section 255 of the Companies Act,
1956' read with Article 155 of the Articles of Association of the
Company, Shri K.K. Pai and Dr. R. Rajagopalan retire by rotation
and. being eligible, offer themselves for re-appointment.
Shri Suresh A. Shroff, a Director of the Company, resigned from
the Board. Your Directors wish to place on record their sense of
appreciation of the guidance provided by Shri Suresh A. Shroff.
6. AUDITORS & THEIR REPORT:
Messrs Chaturvedi & Shah and Messrs Rajendra & Co.. Auditors
of the Company hold office until the conclusion of the ensuing
Annual General Meeting and are recommended for reappointment.
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(1B) of the Companies Act,
1956.
37
8. ACKNOWLEDGEMENT
Your Directors would like to express their grateful appreciation
of the assistance and co-operation received from the Financial
Institutions and Banks during the year under review.
Your Directors wish to place on record their deep sense of
appreciation of the devoted ser vices rendered by the Executives
and Staff of the holding Company (Reliance Industries Limited)
and also the Executives and Staff of the Company.
For and on behalf of the Board of Directors
Dhirubhai H. Ambani
Chairman
Bombay:
Dated: 30th June, 1990
7.
In terms of Section 217 (1) or the Companies Act, 1956 (as
amended) and the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988, your Directors furnish
hereunder the additional information as required:
A. CONSERVATION OF ENERGY:
Since the projects for the manufacture of MEG, PVC and HDPE
are still in the implementation stage and no manufacturing
activities have commenced till the date of this report, there is
nothing to be disclosed in respect of conservation of energy.
However, the project envisages captive gas turbo generators
with cogeneration of waste heat steam. Additionally, in designing
and engineering of all three process plants, energy optimisation
schemes and pollution control features have been incorporated.
B. TECHNOLOGY ABSORPTION:
Arrangements have been made with licensors to provide
technology for the manufacture of products under the Projects.
Collaboration Agreements have been entered into with M/s. B.F.
Goodrich Co. (USA) for PVC, M/s . Lummus Crest BV
(Netherlands) for MEG and M/s. Du Pont Canada Inc. (Canada)
for HDPE. The Technology agreements include provision for
training, which will assist the Company in absorption of the
technology from the respective licensors. The technology
agreements also provide for exchange of infor mation on
improvements in technology for manufacture of MEG, HDPE and
PVC.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
As at
31.03.1990
(Rs. in Crores)
As at
31.03.1989
1.
2.
b.
Earnings in Foreign Currency:
Miscellaneous income
(Previous Year Rs. 16,753)
Expenditure in Foreign Currency
a.
Interest on foreign
currency loans
Interest on Debentures held
by Non Residents on
repatriation basis (Gross)
Technical know-how &
Engineering Fees
d. Other matters [including
commitment charges
Rs 1.75 crores
(Previous Year Rs Nil)
on foreign currency loans]
c.
0.00
0.00
4.31
0.00
2.25
47.35
0.00
3.91
13.77
0.16
It would be pertinent to note that the products to be manufactured
by your Company are impor t substitution products. which would
save for the Country. Foreign Exchange of the equivalent of
around Rs 400 crores per annum (at current inter national prices)
when the plants operate at full rated capacity.
38
39
40
AUDITORS’ REPORT
To
The Members of Reliance Petrochemicals Limited
We have audited the attached Balance Sheet of RELIANCE
PETROCHEMICALS LIMITED as at 31st March, 1990. The Company
has not carried out any revenue operations during the year and has
therefore, not prepared a Profit and Loss Account for the year ended
on that date.
1. As required by the Manufacturing and Other Companies (Auditors’
Repor t) Order 1988, issued by the Company Law Board in terms of
Section 227(4A) of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and
5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
(a) We have obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Compan y so far as appears from our
examination of such books.
(c) The Balance Sheet referred to in this report is in agreement
with the books of account.
(d) (i) As mentioned in note No.5, interest on unpaid calls continues
to be accounted for as and when received.
(ii) As stated in Note No.4, funds deployed through Scheduled
Banks under their Portfolio Management Schemes have been
shown as par t of Bank Balances and Income ear ned
therefrom has been shown as “Other Income”.
(iii) Subject to the above, in our opinion and to the best of our
information and according to the explanations given to us,
the said Balance Sheet read together with the notes thereon
gives the information required by the Companies Act, 1956,
in the manner so required and gives a true and fair view of
the state of affairs of the Company as at 31st March, 1990.
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
D. Chaturvedi
Partner
Bombay
Dated: 30th June, 1990.
R.J. Shah
Proprietor
ANNEXURE TO AUDITORS’ REPORT
Re: Reliance Petrochemicals Limited
Referred to in pare (1) of our report of even date.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
According to the information and explanations given to us, the fixed
assets have been physically verified by the management during
the year. In our opinion the frequency of such ver ification is
reasonable and no material discrepancies were noticed on such
verification.
2. None of the Fixed Assets have been revalued during the year.
3. The Company has not taken any loan, secured or unsecured,
(except for an interest free loan from the holding company), from
companies, firms or other parties as listed in the register maintained
under Section 301 of the Companies Act, 1956 or from Companies
under the same management within the meaning of Section 370(1B)
of the Companies Act, 1956. The terms and conditions of the above
loan are not in our opinion prima facie prejudicial to the interest of
the Company.
5.
4. The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956 or to Companies
under the same management within the meaning of Section 370(1B)
of the Companies Act, 1956.
In respect of loans and advances in the nature of loans given by
the Company, they are generally repaying the principal amount as
stipulated and are also regular in the payment of interest, wherever
applicable.
In our opinion and according to the information and explanations
given to us, there are inter nal control procedures (commensurate
with the size of the Company and the nature of its business) with
regard to the purchases of components, plant and machiner y,
equipment and other assets.
In our opinion and according to the information and explanations
given to us, there are no transactions of purchases of goods and
material and sale of goods/material and services made in pursuance
of contracts or arrangements required to be entered in the registers
maintained under Section 301 of the Companies Act, 1956.
6.
7.
8. The Company has not accepted any deposits from the Public and
consequently, the provision of Section 58A of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules 1975 are
not applicable.
In our opinion, the Company has an Inter nal Audit System
commensurate with its size and the nature of its business.
9.
10. The Company has been regularly depositing the Provident Fund
and Employees’ State insurance dues with the appropriate
authorities.
11. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax,
sales-tax, customs duty and excise duty were outstanding as at
31st March, 1990 for a period of more than six months from the
date they became payable.
12. According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to
revenue account, other than those payable under the contractual
obligations or in accordance with generally accepted business
practice.
13. The Company is not a sick Industrial Company within the meaning
of Clause (O) of sub-section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
14. Since, the Company is in the process of setting up projects for
manufacture of Petrochemicals and no manufacturing operations
have commenced, para 4A(iii), (iv), (v), (vi), (xii), (xiv) and (xvi), 4B’
4C and 4D of the aforesaid order are not applicable.
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
D. Chaturvedi
Partner
Bombay
Dated: 30th June, 1990.
R.J. Shah
Proprietor
41
BALANCE SHEET AS AT 31st MARCH, 1990
Schedule
As at
31st March, 1990
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1989
Rs.
Rs.
SOURCES OF FUNDS:
Shareholders’ Funds
Share Capital
Reserves and Sur plus
Loan Funds
Secured Loans
Unsecured Loans
TOTAL
APPLICATION OF FUNDS:
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work in Progress
Net Pre-operative Expenditure on
implementation of Projects pending
allocation
Investments
Current Assets, Loans and Advances
Interest accrued on Investments
Cash and Bank Balances
Loans and Advances
Less:
Current Liabilities and Provisions
Current Liabilities
Provisions
Net Current Assets
Miscellaneous Expenditure
(to the extent not written off or adjusted)
Preliminary Expenses
TOTAL
Notes and Contingent Liabilities
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘G’
‘H’
‘I’
‘J’
‘K’
‘L’
87.23
0.52
670.78
50.00
30.15
9.63
20.52
418.56
93.27
0.03
131.60
77.79
209.42
75.34
1.12
76.46
86.47
0.48
632.03
50.00
23.01
0.85
22.16
128.04
35.27
7.06
379.45
22.48
408.99
44.50
5.50
50.00
86.95
682.03
768.98
185.47
224.49
358.99
003
768.98
87.75
720.78
808.53
532.35
143.19
132.96
0.03
808.53
As per our report of even date.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
Chairman
D. Chaturvedi
Partner
R.J. Shah
Proprietor
Bombay
Dated 30th June, 1990.
42
M.D. Ambani
A.D. Ambani
A.S. Dayal
K.K. Pai
Y.P. Trivedi
C. Chandrasekhar
J.S. Bakshi
President (Commercial)
P.M. Rao
Dy. Company Secretary
Bombay
Dated 30th June, 1990.
Directors
Duleep Singh
President (Hazira Site)
SCHEDULES FORMING PART OF THE BALANCE SHEET
AS AT 31ST MARCH, 1990
(Rs in crores)
SCHEDULE ‘A’
SHARE CAPITAL
Authorised:
As at
31-03-1990
Rs.
Rs.
As at
31-03-1989
Rs.
Rs.
10,00,00,000 Equity Shares of Rs.10 each
100.00
100.00
Issued and Subscribed:
8,72,70,000 Equity Shares of Rs.10 each fully
Called-up
Less: Calls unpaid - by others
87.27
0.04
87.27
0.80
87.23
86.47
3.
after 27th October, 1991 but before 28th October, 1992 and after 27th October, 1993 but
before 26th October, 1995 respectively.
(i)
The Term Loan referred to in O(i) above represents foreign currency ban availed by
Reliance Industries Ltd., the kidding Company for implementation of Mono Ethylene
Glycol Project. Subject to necessary approvals, the Company has taken over the
said loan which is secured against the fixed assets d Reliance Industries Ltd.
(ii) The Term Loans referred to in C(ii) above are secured by
(a) hypothecation of movable assets and
(b) mortgage on all the immovable assets of the company both present and future.
4. Debentures include Rs 0.05 crores held by Directors. (Previous Year Rs.0.66 crores).
5. Secured loans include Rs 2.91 crores repayable within a period of one year. (Previous
Year Rs.39 16 crores)
SCHEDULE ‘D’
UNSECURED LOANS
From Reliance Industries Ltd.,
holding Company
As at
31-03-1990
Rs.
50.00
50.00
(Rs. in Crores)
As at
31-03-1989
Rs.
50.00
50.00
Of the above Equity Shares:
(i) 5,76,00,000 Shares are held by Reliance
Industries Ltd., the holding
Company.
(ii) 2,96,70,000 Shares were allotted at par on
first conversion of Debentures
SCHEDULE ‘B’
RESERVES AND SURPLUS
General Reserve
As per last Balance Sheet
Add: Transfer from Profit &
Loss Account
Profit and Loss Account
As per last Balance Sheet
Add: Profit for the year
Excess provision of earlier year written
back
Note:
The above loan is free of interest and shall be converted into Equity Share Capital, at par, on
26th October, 1991 in accordance with the consent of the Controller of Capital Issues.
As at
31-03-1990
Rs.
Rs.
As at
31-03-1989
Rs.
Rs.
SCHEDULE ‘E’
FIXED ASSETS
Gross Block (at cost)
Depreciation
Net Block
(Rs. in crores)
0.25
0.00
0.23
0.00
0.04
0.00
0.25
0.00
0.23
0.00
Nature of Assets
0.25
0.23
0.48
1. Leasehold Land
2. Buildings
3. Plant and Machinery
4. Furniture, Fixtures and
Other Equipments
5. Vehicles
Total
Previous Year
As at
01.04.1989
Rs.
0.63
3.92
18.11
0.23
0.12
23.01
0.00
Additions
Rs.
2.19
1.54
0.00
2.80
0.61
7.14
23.01
0.25
0.27
0.52
As at
Up to
As at
31.03.1990 31.03.1990 31.03.1990 31.03.1989
Rs.
As at
Rs.
Rs.
Rs.
2.82
5.46
18.11
3.03
0.73
30.15
23.01
0.00
0.10
9.42
0.08
0.03
9.63
0.85
2.82
5.36
8.69
2.95
0.70
20.52
22.16
0.63
3.91
17.28
0.22
0.12
22.16
0.00
SCHEDULE ‘C’
SECURED LOANS
A. Debentures:
As at
31-03-1990
As at
31-03-1989
Rs.
Rs.
Rs.
Rs.
12.5% Secured Fully Convertible Deben
tures of Rs.200/- each fully called up
Less: Converted
Less: Calls unpaid -by others
B. Loan from a Bank
C. Term Loans
593.40
29.67
563.73
0.78
(i)
(ii)
From Banks in Foreign Currencies
From Financial Institutions
in Foreign Currencies
8.04
99.79
593.40
29.67
563.73
15.18
9.16
36.82
562.95
0.00
107.83
670.78
548.55
37.50
45.98
632.03
Capital Work-in-Progress
418.56
128.04
NOTES:
1. No amortization has been made in respect of Lease Premium paid for the lease hold land
since the grant of lease is for a long period.
2.
Leasehold Land includes Rs.1.64 Crores (Previous Year Rs. nil) in respect of which
necessary documents are yet to be executed.
3. Capital Work in Progress includes.
i)
Rs.95.62 crores on account of Advances against Capital Expenditure (Previous Year
Rs. 111.93 crores)
ii) Rs.36.35 crores in respect of construction materials in stock.
4. Depreciation has been provided as under:
a)
b)
in respect of Plant and Machinery given on lease, 95% of the cost has been amortized
over the primary lease period of two years.
in respect of other assets, on straight line method at the rates prescribed by Schedule
XIV to the Companies Act, 1956.
5. Buildings include shares in co-operative housing societies of the face value of Rs.750
(Previous Year Rs.250).
NOTES:
1.
2.
The Convertible Debentures referred to in A above alongwith interest are secured by a
legal mortgage in English form in favour of the Debenture Trustees by way of residual
charge on all or any of the immovable and/or movable assets and properties other than
the current assets, both present and future, situated at Village Mora District Surat in the
State of Gujarat and/or at any other location and such residual mortgage and charge
shall rank subservient and subordinate to the mortgages created for item C(ii) above and
future mortgages/charges as may hereafter be created by the Company in favour of
existing or future lenders in respect of borrowings of the Company as provided in the
Debenture Trust Deed
The face value of each Debenture (Part B of Rs.40/- and Part C of Rs.150/-) will be
automatically and compulsorily converted into appropriate number of Equity Shares of
Rs:10/- each at a premium, if any, as may be fixed by the Controller of Capital Issues,
SCHEDULE ‘F’
Net Pre-operative Expenditure on implementation
of Projects pending allocation
Amount Brought forward
Establishment and Other Expenses
Payment to and Provision for employees
Salary, Wages and Bonus
Contribution to Provident fund and other funds
Staff Welfare expenses
C/F
Rs.
Rs.
35.27
Rs.
Rs.
0.00
1.42
0.27
0.29
0.25
0.04
0.05
1.98
37.25
0.34
0.34
43
B/F
37.25
0 34
Service Charges
Insurance (previous year Rs.3189)
Rent
Rates and Taxes (Rs.18,188)
Telephones
Travelling Expenses
Auditors’ Remuneration
Directors Fees [(Rs.26,000 (Previous year Rs.21200)]
Printing and Stationery
Advertisement
Debenture Issue Expenses
Commitment Charges
Power
Registrar and transfer agent fees
General Expenses
Excess provision of earlier year written off
(Rs.1529)
0.00
0.01
1.11
0.00
0.62
1.74
0.04
0.00
0.54
0.27
0.00
1.88
0.32
3.17
2.50
0.00
Interest
On Debentures
On Fixed Loans
On others [Rs.2248 (Previous year Rs. Nil)]
70.18
12.48
0.00
Depreciation
Less: Income
Interest (Tax Deducted at Source)
Rs.0.04 Crores (Previous Year Rs. Nil}
Profit on Sale of Investments
Lease Income
Other Income
16.73
4.86
10.43
15.60
0.73
0.00
0.63
0.01
0.05
0.39
0.02
0.00
0.02
0.01
17.60
0.41
0.00
0.00
1.41
0 00
12.20
21.28
29.06
0.02
50.70
25.32
3.74
0.00
12.63
2.79
0.00
0.01
82.66
8.78
140.89
47.62
93.27
SCHEDULE ‘H’
As at
31-03-1990
Cash and Bank Balances
Rs.
Cash on hand (Previous year Rs.31,466)
Balance with scheduled Banks
In Current Accounts
i)
In Fixed Deposit Accounts
ii)
In Portfolio Management Schemes
iii)
(Refer Note No.4 of Schedule ‘L’)
3.62
2.96
125.00
Rs.
0.02
131.58
131.60
(Rs in crores)
As at
31-03-1989
Rs.
Rs.
0.00
69.10
310.35
0.00
379.45
379.45
SCHEDULE ‘I’
LOANS AND ADVANCES
(Unsecured, except otherwise stated,
considered good)
Advances recoverable in cash or in kind or
for value to be received
Bills of Exchange
Interest Accrued on Fixed Deposits
Advance payment of Income-tax
Deposit with Custom
Other Deposits (Secured Rs.1.62 Crores
(Previous year Rs.nil)]
As at
31.03.1990
As at
31.03.1989
Rs.
Rs.
4.16*
30.11
3.48
2.27
0.51
37.26
77.79
5.07*
0.00
0.00
1.25
0.00
16.16
22.48
*
include Rs.0.04 crores (Previous year Rs.0.01 crores) due from officers of the Company.
(Maximum Balance due at any time during the year: Rs.0.06 Crores) (Previous year
Rs.0.01 Crores)
15.43
35.27
SCHEDULE ‘J’
CURRENT LIABILITIES
SCHEDULE ‘G’
INVESTMENTS (At Cost)
Other Investments
Government Securities
Quoted
11.5% Government of India Loan 2008
(Old Series)
Unquoted
Indira Vikas Patra
Other Investments (Unquoted)
106123950 Units (Previous Year 127566550
units) of Unit Trust of India (1964 Scheme)
As at
31-03-1990
Rs.
Rs.
(Rs in crores)
As at
31-03-1989
Rs.
Rs.
Acceptances
Sundry creditors
Interest Accrued out not due on loans
Unclaimed Dividend
Other Liabilities
0.00
0.20
39.48
0.20
142.99
184.81
143.19
143.19
224.49
224.49
SCHEDULE ‘K’
PROVISIONS
Gratuity, Superannuation and Provident
Funds
Provision for Taxation
Proposed Dividend
As at
31.03.1990
As at
31.03.1989
Rs.
25.74
22.06
26.27
0.11
1.16
75.34
Rs.
0.00
2.41
29.77
0.00
12.32
44.50
As at
31.03.1990
As at
31.03.1989
Rs.
0.18
0.94
0.00
1.12
Rs.
0.02
0.94
4.54
5.50
1. During the year the Company also purchased:
Rs.
(i)
182012870 units of Unit Trust of India
(1964 Scheme)
(ii) 11.5% Government of India Loan 2015
(iii) 11% Government of India Loan 2002
(iv) 11.5% Government of India Loan 2008
(v) 94t IDBI Bonds 1999
246.58
88.68
48.25
48.65
13.00
2. Aggregate value of
Market
Value
Rs.
Cost
Rs.
Market
Value
Rs.
Cost
Rs.
SCHEDULE ‘L’
(Rs. in crores)
NOTES AND CONTINGENT LIABILITIES
1.
Figures are shown in crores d rupees in accordance with the approval from the Company
Law Board, Western Region, Bombay. Figures less than Rs.50,000 have been shown at
actuals in brackets. The Previous period’s figures have been regrouped/recast wherever
necessary.
2. During the year under review, as a result of increase in project cost as explained in the
Directors’ Report, the company’s funds were entirely identified with the activities conducted
by the company for setting up the project on hand. There being no revenue operations, a
Profit and Loss Account for the year has not been prepared and instead the net expenditure
has been shown in the schedule of “Net Pre-operative Expenditure on implementation of
Projects pending allocation” (Schedule ‘F’). The figures for the previous period to the extent
not adjusted against pie-operative expenditure and not shown in Schedule ‘F’ are as follows:
Quoted Investments
Unquoted Investments
0.00
143.19
0.00
––
39.48
185.01
39.48
––
3.
The above investments are held by the Bankers of the Company in their name, wherever
applicable in a fiduciary capacity.
Income:
Sales
Other income
0.01
11.20
11.21
44
Expenditure:
Purchases
Establishment and other expenses
Interest
Depreciation
Profit before Tax
Provision for Taxation
Profit after Tax
Appropriations :
General Reserve
Dividend on Equity Shares
(Subject to Tax)
Balance carried to Balance Sheet
0 01
0.58
3.83
0.83
0.25
4.54
(Rs. in crores)
9.
Earnings in Foreign Currency:
Miscellaneous Income (Previous Year Rs.16,753)
As at
(Rs. in crores)
As at
31.03.1990 31.03.1989
Rs
0.00
Rs.
0.00
10. a.
b.
5.25
5.96
0.94
5.02
4.79
0.23
Number of Employees
Salaries and Bonus
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.0.72 lacs per annum.
i.
ii.
iii. Contribution to Provident & other Funds
iv. Other Perquisites
Break-up of expenditure incurred on employees who were
employed for pan of the year and were in receipt of
remuneration for any part of the year which in aggregate
was not less than Rs.6000 per month
i.
ii.
iii. Contribution to Provident & other Funds
iv. Other Perquisites
Number of Employees
Salaries and Bonus
40
0.40
0.07
0.07
137
0.65
0.12
0.07
––
0.00
0.00
0.00
38
0.15
0.03
0.03
3
4
5.
Income arising out of deployment of funds available with the company has been reduced
from the Pre-operative Expenditure pending allocation The company has been advised
that such income does not form a part of the income liable to tax and hence no provision
for taxation has been made.
During the year under review, the Company has placed sums aggregating to Rs. 125
crores (previous year Rs. Nill with Scheduled banks under Portfolio Management Schemes.
These sums have been shown under ‘Balances with Scheduled Banks’. The Company
has been given to understand by concerned banks that the said sums have been deployed
by the banks in the undermentioned securities, as on 31st March, 1990.
Units of Unit Trust of India
(1964 Scheme)
Government of India securities
Bills of Exchange
38.00
62.00
25.00
TOTAL 125.00
Income earned on the said sums aggregating to Rs.12.96 crores (previous year Rs. Nil)
has been included in ‘Other Income’
Interest on unpaid calls is accounted as and when received.
As at
As at
31.03.1990 31.03.1989
11. Licenced and Installed Capacity:
Licensed Capacity
(M.T.)
Installed Capacity
(M.T.)
1989-90
1988-89
1989-90
1988-89
60000
5000
50000
*
*
+
5000
100000
100000
Mono Ethylene
Glycol (MEG)
Higher Ethylene
Glycols(HEG)
High Density
Polyethylene (HDPE)
Poly Vinyl Chloride
(PVC)
Chlorine
Caustic Soda
(By-Product)
Hydrogen
(By-Product)
* Based on letter of Intent.
+ Includes 50000 M.T. based on Letter of Intent.
100000
66000
78000
1950
*
*
*
100000
66000
78000
1950
*
*
*
*
*
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
Under Implementation
6. Contingent Liabilities:
a. Estimated amount of contracts remaining to be executed on
capital account and not provided for (net of advances) as
on 31st March, 1990.
b. Outstanding guarantees furnished and letters of credit
opened by bankers
Bonds executed in favour of Customs Authority
c.
7. Auditors Remuneration:
a. Audit Fees
b.
c.
For Tax Audit (including Rs.0.01 crore for earlier period)
For certification matters (included under the head Deben
ture Issue Expenses)
8. Expenditure in Foreign Currency:
a.
Interest on Debentures held by Non-residents on
repatriation basis (gross)
Technical know-how & Engineering Fees
b.
c. Other matters
683.56
202.66
57.48
12.17
0.02
0.02
0.00
0.04
0.42
47.35
12.02
0.00
0.00
0.02
0.00
0.04
0.06
0.00
3.91
0.16
12. As the Company has not commenced any manufacturing ac-
tivity, the information required under paragraph 3, 4C, and 4D
of Part II of Schedule VI to the Companies Act, 1956 has been
given to the extent applicable.
13. Remittance in foreign currency on account of dividend
Number of Non-resident shareholders
Amount of dividend
Year to which dividend relates
14. Quantitative information in respect of:
a.
b.
Purchases
Sales
15. Value of Imports on CIF Basis in respect of:
a. Capital goods
Samples
b.
As at
As at
31.03.1990 31.03.1989
Rs.
Rs.
12074
0.05
1988-89
––
0.00
––
M.T.
Rs. M.T.
–– 0.00
–– 0.00
Rs.
5 0.01
5 0.01
27.82
0.08
0.00
0.00
As per our report of even date.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
Chairman
D. Chaturvedi
Partner
R.J. Shah
Proprietor
Bombay
Dated 30th June, 1990.
M.D. Ambani
A.D. Ambani
A.S. Dayal
K.K. Pai
Y.P. Trivedi
C. Chandrasekhar
J.S. Bakshi
President (Commercial)
P.M. Rao
Dy. Company Secretary
Bombay
Dated 30th June, 1990.
Directors
Duleep Singh
President (Hazira Site)
45
46
DEVTI FABRICS LIMITED
Regd. Office: 3rd Floor, Maker Chambers IV
222 Nariman Point
Bombay 400 021
47
DEVTI FABRICS LIMITED
DIRECTORS REPORT
To The Members,
Your Directors present the Sixth Annual Report together with the Audited Statement
of Accounts for the financial year ended 31st March, 1990
OPERATIONS:
Your Company has incurred a loss of Rs.100 lacs during the year under review as
against the previous loss of Rs.74.06 lacs for the period of 15 months. The loss is
mainly due to the weaving activity attributed to the existing looms.
The Company’s spinning unit is doing well and the modernisation of the spinning
unit is now complete, after having incurred a capital expenditure of Rs.126 lacs.
The Company is hopeful of better performance in the coming year.
DIVIDEND:
In view of the carried forward losses, your Directors have not proposed any Dividend
for the Financial Year under review.
DIRECTORS:
In accordance with the provisions of the Companies Act, 1956, Shri S. Natarajan
and Shri Vinod M. Ambani retire by rotation and are eligible for reappointment.
AUDITORS:
Messrs Rajendra & Company and Messrs Chatur vedi & Shah, Char tered
Accountants, retire at the ensuing Annual General Meeting and are recommended
for reappointment. The Auditors have, under Section 224(1) of the Companies
Act, 1956, furnished a Certificate of their eligibility for reappointment.
DEPOSITS:
The Company has not accepted any deposit from the public Hence! no information
is required to be appended to this report.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO:
The particulars as prescribed under Sub-section (e) of Section 217 of the
Companies Act, 1956, read with Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988, are given in the Annexure-A which forms part
of the Directors’ Report.
PERSONNEL:
Information as per Section 217(2) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975 forming part of the Directors,
Report for the financial year ended 31st March, 1990 is given in Annexure B.
APPRECIATION:
Your Directors wish to place on record their appreciation of the devoted services
rendered by the Executives, Staff and workers of the Company.
Registered Office:
3rd floor,
Maker Chambers IV,
222, Nariman Point,
Bombay 400 021.
Dated: 23rd July, 1990.
For and on behalf of the Board
S. Natarajan
Vinod M. Ambani
Directors
ANNEXURE ‘A’ TO DIRECTORS’ REPORT
Particulars required under the Companies (Disclosure of particulars in the
Report of Board of Directors) Rules, 1988.
A. CONSERVATION OF ENERGY:
(a) Energy Conservation Measures taken:
01 Group drive Motor of Higher H.P. has been replaced by lower H.P.
Motor, thereby reducing the consumption of electrical energy.
02 Modification was done under distribution system so that requirement
of electrical pump motor was reduced which has resulted in reducing
electrical power consumption.
(b) Additional Investments and proposals being implemented for
(c)
reduction of consumption of energy:
A study is being made to find the measures to further reduce the
consumption of energy.
Impact of Measures (a) and (b) for reduction of energy Consumption
and consequent impact on the cost of production of goods:
Reduction of electrical energy and electrical power. The cost is reduced
by Rs.90,000 approximately.
48
FORM - A
Form for disclosure of particulars with respect to conservation of Energy
Part - A
A. POWER & FUEL CONSUMPTION:
Description
01 ELECTRICITY
a) Purchased
Units
Total Amount
Rate/Unit
b) Own Generation
Current Year
Previous Year
01.04.89
to 31.03.90
(12 months)
01.01.88
to 31.03.89
(15 months)
7827093
11312090
1.45
9897280
14066369
1.42
i)
Thru Diesel Generator :
Unit
Units per Ltr. of diesel-oil
Cost/unit
ii) Thru Steam
Turbine/Generator:
Units
Unit per Ltr of fuel oil gas
Cost/unit
02 COAL
Quantity (tonnes)
Total Cost
Average rate
03 FURNACE OIL
Quantity (Kilo Ltrs.)
Total Amount
Average rate
04 OTHERS/INTERNAL GENERATION
Quantity
Total Cost
Rate/Unit
2420
2.4
––
––
1780
1984594
1114.94
––
––
––
––
––
––
81990
2.4
––
––
2145
2095515
976.93
––
––
––
––
––
––
B. CONSUMPTION PER UNIT OF PRODUCTION:
Part - B
YARN (per Kg.)
FABRICS (per metre)
Current Year Previous Year Current Year Previous Year
5.27
––
––
––
5.34
––
––
––
0.41
––
––
––
0.42
––
––
––
Electricity:
Units
Furnace Oil
Coal*
Others
*
Coal is used for steaming and healing the yarn for the purpose of sizing.
It has no link with the production.
FORM - B
(form for disclosure of particulars with respect to Technology Absorption)
The Company has no specific Research and Development Department, hence
information to be given in Form-B are not relevant for the Company. However, the
Company has a quality control department to check the quality of the products
manufactured.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
i)
Activities relating to exports - Company is making a study to explore the
foreign market for expor t of Company’s products:
ii) Foreign Exchange used and earned:
Nil
DEVTI FABRICS LIMITED
49
DEVTI FABRICS LIMITED
AUDITORS’ REPORT
To
The Members of Devti Fabrics Limited
2. None of the fixed assets have been revalued during the year.
3. According to the information and explanation given to us, the stocks of finished
goods, stores, spare parts and raw materials have been physically verified by
the Management during the year. In our opinion, the frequency of such
verification is reasonable.
We have audited the attached Balance Sheet of DEVTI FABRICS LIMITED as
at 31st March, 1990 and the Profit and Loss Account of the Company for the
year ended on that date annexed thereto and report that:
4.
In our opinion, the procedures of physical verification of stocks followed by the
Management are reasonable and adequate in relation to the size of the Company
and the nature of its business.
1. As required by the Manufacturing and Other Companies (Auditors’ Report)
Order, 1988, issued by the Company Law Board in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1 above,
we state that:
(a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company, so far as appears from our examination of such
books.
(c) The Balance Sheet and Profit and Loss Account referred to in this Report
are in agreement with the books of account.
(d) In our opinion and to the best of our information and according to the
explanations given to us, the said Balance Sheet and Profit and Loss
Account read together with the notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and
give a true and fair view:
i)
ii)
in so far as it relates to the Balance Sheet of the state of affairs of
the Company as at 31st March, 1990; and
in so far as it relates to the Profit and Loss Account of the Loss of
the Company for the year ended on that date.
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. SHAH
Proprietor
D. CHATURVEDI
Partner
Bombay
Dated: 23rd July, 1990.
ANNEXURE
RE: DEVTI FABRICS LIMITED
Referred to in Paragraph 1 of our Report of even date
5. As explained to us, there were no material discrepancies noticed on physical
verification of the stocks and the same have been properly dealt with in the
books of account.
6.
In our opinion and on the basis of our examination of stock and other records
and after considering the method adopted for accounting of excise duty referred
to in Note.No.5 of Schedule K, to the accounts, the valuation of stocks is fair
and proper and is in accordance with the normally accepted accounting
principles and is on the same basis as in the preceding year.
7. The Company has taken an interest-free unsecured loan from the Holding
Company. It has not taken any other loan, secured or unsecured, from
companies, firms or other parties as listed in the register maintained under
section 301 of the Companies Act, 1956, or from companies under the same
management within the meaning of Section 370(1B) of the Companies Act’
1956. The terms and conditions of the above loan are not, in our opinion prima
facie prejudicial to the interests of the Company.
8. The Company has not granted any loans, secured or unsecured to companies,
firms or other parties listed in the Register maintained under section 301 of the
Companies Act, 1956 or to companies under the same Management within the
meaning of section 370(1B) of the Companies Act, 1956.
9.
In respect of loans and advances in the nature of loans given by the Company,
the parties have generally repaid the principal amounts as stipulated and have
also been regular in the payment of interest, wherever applicable.
10. In our opinion 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 with regard to purchases of stores,
raw materials including components plant and machinery, equipment and other
assets and for the sale of goods.
11. In our opinion and according to the information and explanations given to us,
there are no transactions of purchase of goods or materials and sale of goods
materials and services made in pursuance of contracts or arrangements entered
in the registers maintained under section 301 and aggregating during the year
to Rs.50,000/or more in respect of each party.
12. As explained to us, the company has a regular procedure for the determination
of unserviceable or damaged stores, raw materials and finished goods. Adequate
provision has been made in the accounts for the loss arising on the items so
determined.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. We are informed
that most of the assets have been physically verified by the Management
during the year and that no material discrepancies were noticed on such
verification. In our opinion, the frequency of such physical verification is
reasonable having regard to the size of the company and the nature of its
assets.
13. The company has not accepted any deposit from the public and consequently
the provisions of Section 58A of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 are not applicable to the Company.
14. The Company has no by-products and in our opinion reasonable records have
been maintained by the Company for the sale and disposal of realisable scrap
wherever significant.
50
DEVTI FABRICS LIMITED
15. In our opinion the company has an internal audit system commensurate
with its size and the nature of its business.
(b) The Company does not have any significant allocation of material in
respect of the processing activities carried out on ‘job work’ basis.
16. 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 have broadly reviewed the records in this
connection and are of the opinion that the prescribed accounts and records
have been made and maintained. However, no detailed examination of the
same has been carried out.
17. According to the records of the Company, Provident Fund and Employee
State Insurance dues have been regularly deposited with the appropriate
authorities.
18. According to the information and explanations given to us, no undisputed
amounts payable in respect of income tax, wealth-tax, sales tax, customs
duty and excise duty were outstanding as on 31st March, 1990 for a period
of more than six months from the date they became payable.
19. According to the information and explanations given to us, no personal
expenses of employees or Directors have been charged to revenue account
other than those payable under contractual obligations or in accordance
with generally accepted business practice.
20. The Company is not a sick industrial company within the meaning of clause
(o) of sub-section (1) of section 3 of the Sick Industrial Companies (Special
Provisions) Act’ 1985.
21. In respect of the service activities of the Company:
(a) The Company has a reasonable system of recording receipts, issues
and consumption of stores commensurate with its size and the nature
of its business.
(c) The Company has a reasonable system of allocating man hours utilised
to the relative jobs commensurate with its size and the nature of its
business.
(d) There is a reasonable system of authorisation at proper levels and an
adequate system of internal control commensurate with the size of the
Company and the nature of its business on the issue of stores and
allocation of stores and labour to relative jobs.
22. In respect of the trading activities of the Company. there were no goods in
damaged conditions at the end of the year, the value of which was significant.
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. SHAH
Proprietor
D. CHATURVEDI
Partner
Bombay
Dated: 23rd July, 1990.
51
DEVTI FABRICS LIMITED
BALANCE SHEET AS AT 31ST MARCH, 1990
SOURCES OF FUNDS:
Shareholders’ Funds
Capital
Loan Funds
Secured Loans
Unsecured Loans (from Holding Company)
TOTAL
APPLICATION OF FUNDS:
Fixed Assets
Gross Block
Less: Depreciation
Current Assets Loans & Advances
Current Assets
Inventories
Sundry Debtors
Cash & Bank Balances
Loans & Advances
Less: Current Liabilities & Provisions
Liabilities
Provisions
Miscellaneous expenditure
(to the extent not written off or adjusted)
Profit 8 Loss Account
TOTAL
Notes and Contingent Liabilities
Schedule
Rs.
Rs.
Rs.
Rs.
As at
31.3.1990
(Rs. in lacs)
As at
31.3.1989
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘K’
21.01
21.01
21.01
21.01
492.43
175.00
571.32
176.75
127.13
1.05
8.42
136.60
112.52
249.12
251.59
1.20
252.79
556.08
135.00
451.40
126.63
213.00
19.09
103.33
335.42
28.55
363.97
172.40
0.92
173.32
667.43
688.44
394.57
(3.67)
0.10
297.44
688.44
691.08
712.09
324.77
190.65
0.12
196.55
712.09
As per our Report of even date
For and on behalf of the Board
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. Shah
Proprietor
Bombay
Dated: 23rd July, 1990.
52
D. Chaturvedi
Partner
S. Natarajan
Vinod M. Ambani
Directors
DEVTI FABRICS LIMITED
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 1990
Schedule
Rs.
Rs.
Rs.
Rs.
1989-90
(12 months)
(Rs. in lacs)
1988-89
(15 months)
INCOME
Sales (Net)
Other income
Variation in stock
EXPENDITURE
Purchases
Manufacturing & Other Expenses
Interest
Depreciation
Profit/(Loss) for the period
Add: Balance brought forward from last year Profit/(Loss)
Balance carried to Balance Sheet
Notes and Contingent Liabilities
‘G’
‘H’
‘I’
‘J’
‘K’
1217.30
232.57
(68.35)
1307.23
235.46
13.82
1381.52
1556.51
164.12
1197.43
70.39
50.47
79.52
1402.91
91.64
56.50
1432.41
(100.89)
(196.55)
(297.44)
1630.57
(74.06)
(122 49)
(196.55)
As per our Report of even date
For and on behalf of the Board
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. Shah
Proprietor
Bombay
Dated: 23rd July, 1990.
D. Chaturvedi
Partner
S. Natarajan
Vinod M. Ambani
Directors
53
DEVTI FABRICS LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE ‘B’
SCHEDULE ‘A’
SHARE CAPITAL
Authorised:
As at
31.3.1990
Rs.
(Rs. in lacs)
As at
31.3.1989
Rs.
2.50,000 Equity Shares of Rs.10/- each
25.00
25.00
Issued & Subscribed:
2.10,070 Equity Shares of Rs.10/- each fully paid-up
(All the shares are held by Reliance
Industries Limited, the Holding Company)
21.01
21.01
SECURED LOANS
Working Capital Loan from a Bank
Working Capital Term Loan from a Bank
Rupee Term Loan from Financial Institutions
Deferred Payment Liabilities
Interest accrued and due
As at
31.3.1990
Rs.
120.82
113.92
251.48
6.21
––
492.43
(Rs. in lacs)
As at
31.3.1989
Rs.
115.06
128.25
297.16
10.11
5.50
556.08
2.
NOTES:
1. Working Capital Loan and Working Capital Term Loan from Bank are secured against hypothecation of present
and future stock of raw materials. stock-in-process. finished goods. book debts. moveable machineries Including
all stock and spare parts belonging to the company at Sidhpur in the State of Gujarat save and except plant
and machinery purchased under the modernisation scheme from the financial institutions referred to in 2 below
and are further guaranteed by Reliance industries Ltd., the Holding Company
Rupee Term Loans from financial institutions are secured b y an exclusive first charge on the plant and machinery
purchased under the modernisation scheme.
Deterred Payment Liabilities guaranteed by Bank of Baroda are secured against hypothecation of moveable
machinery, including all stock and spare parts both present and future. belonging to the company at Sidhpur in
the State of Gujarat save and except plant and machinery purchased under the modernisation scheme from
the financial institutions referred to in 2 above and are further guaranteed by Reliance Industries Limited the
Holding Company.
The figures of secured loans include Rs.8S 32 lacs repayable within one year
4.
3.
SCHEDULE ‘C’
FIXED ASSETS
Nature of Filed Assets
Buildings
Plant & Machinery
Electric Installation
Factory equipments
Furniture & Fixtures
Vehicles
Advance against Capital Expenditure
TOTAL
Previous year
(Rs in lacs)
GROSS BLOCK (AT COST)
DEPRECIATION
NET BLOCK
As at
1.4.89
Rs.
17.61
404.61
17.04
2.96
2.98
1.03
5.17
451.40
384.83
Additions
Deductions
Rs.
8.09
111.86
191
––
1.14
_
3.06
126.06
88.10
Rs.
––
0.67
––
––
––
0.30
5.17
6.14
21.53
As at
31.3.90
Rs.
25.70
515.80
18.95
2.96
4.12
0.73
3.06
571.32
451.40
Total upto
31.3.90
Rs.
2.34
169.39
3.62
0.69
0.50
0.21
––
176.75
126.63
As at
31.3.90
Rs.
23.36
346.41
15.33
2.27
3.62
0.52
3.06
394.57
324.77
As at
31.3.89
Rs.
16.13
283.63
14.01
2.42
2.64
0.77
5.17
324.77
SCHEDULE ‘D’
CURRENT ASSETS
As at
31-03-1990
Rs.
Rs.
(Rs in lacs)
As at
31-03-1989
Rs.
Rs.
As at
31-03-1990
Rs.
Rs.
(Rs in lacs)
As at
31-03-1989
Rs.
Rs.
Inventories (Valued at cost or market value whichever
is lower as certified by the Management)
Stores, spares, dyes, chemicals etc.
Raw materials
Stock-in-process
Finished goods
Others (includes stock of discarded machinery
Rs.1.27 lacs at Book Value)
17.61
58.03
29.56
19.56
2.37
B/f
128.18
232.09
Cash & Bank Balances
Cash on Hand
Balances with Scheduled Banks
In Current Accounts
In Fixed Deposit Accounts
(Lodged with Central Excise Authorities)
2.24
6.00
0.18
0.72
102.43
0.18
17.72
75.44
46.54
71.71
1.59
Sundry Debtors
Over six months: Considered Good
Considered Doubtful
Others Considered Good
Less: Provision for doubtful debts
127.13
213.00
––
0.36
1.05
1.41
0.36
4.26
_
14.83
19.09
––
C/f
1.05
128.18
19.09
232.09
54
8.42
136.60
103.33
335.42
SCHEDULE ‘E’
SCHEDULE ‘I’
DEVTI FABRICS LIMITED
LOANS & ADVANCES (Unsecured considered good)
Bill of Exchange
Advances recoverable in Cash or in Kind or for
value to be received
Deposits
Prepaid Expenses
Balance with Central Excise Authorities
As at
31.3.1990
Rs.
83.25
24.93
0.21
3.07
1.06
112.52
(Rs. in lacs)
As at
31.3.1989
Rs.
_
26.50
0.21
1.79
0.05
28.55
SCHEDULE ‘F’
CURRENT LIABILITIES & PROVISIONS
CURRENT LIABILITIES
As at
31-03-1990
Rs.
Rs.
(Rs in lacs)
As at
31-03-1989
Rs.
Rs.
Sundry Creditors
Interest accrued but not due on loans
248.78
2.81
168.52
3.88
251.59
1.20
252.79
1989-90
(12 months)
Rs.
220.71
1.79
10.07
232.57
172.40
0.92
173.32
(Rs. in lacs)
1988-89
(15 months)
Rs.
216.76
1.85
16.85
235.46
PROVISIONS
Gratuity & Superannuation funds
SCHEDULE ‘G’
OTHER INCOME
Processing charges
Profit on sale of assets (net)
Miscellaneous income
SCHEDULE ‘H’
VARIATION IN STOCK
STOCK IN TRADE (at close)
Finished Goods
Stock-in-process
Others
STOCK IN TRADE (at commencement)
Finished goods
Stock-in-process
Others
MANUFACTURING AND OTHER
EXPENSES
Raw Material Consumed
Stock at commencement
Add: Purchases
Less: Sales
Less: Stock at close
MANUFACTURING EXPENSES
Carriage inward
Stores and spare parts
Dyes and chemicals
Electric power, fuel and water
Machinery repairs
Building repairs
Labour, processing and machinery hire charges
Excise duty
PAYMENTS TO AND PROVISIONS FOR
EMPLOYEES
Salaries. wages and 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 and Advertisement
expenses
Brokerage and Commission
Packing expenses
Freight and forwarding charges
Octroi expenses
Sales Tax
1989-90
(12 months)
Rs.
Rs.
(Rs. in lacs)
1988-89
(15 months)
Rs.
Rs.
19.56
29.56
1.10
71.71
46.54
0.32
71.71
46.54
0.32
50.22
118.57
34.34
69.75
0.66
ESTABLISHMENT EXPENSES
Insurance
Rent
Rates & Taxes
Other repairs
Travelling Expenses
Payment to Auditors
Directors’ fees
Provision for Doubtful Debts
General expenses
Charity & Donation
118.57
(68.35)
104.75
13.82
SCHEDULE ‘J’
INTEREST
fixed Loans
Others (Net)
1989-90
(12 months)
Rs.
Rs.
(Rs. in lacs)
1988-89
(15 months)
Rs.
Rs.
75.44
555.26
630.70
1.07
629.63
58.03
1.16
43.67
13.60
132.97
9.53
2.14
24.81
87.43
36.89
732.21
769. 10
9.23
759.87
75.44
571.60
684.43
2.02
48.30
14.48
162.81
4.31
1.36
31.68
76.72
315.31
341.68
250.15
309.62
23.56
12.23
25.20
14.92
285.94
349.74
8.78
6.90
0.02
1.42
2.62
1.23
1.42
0.19
3.76
5.02
0.75
0.34
0.68
0.35
0.02
0.36
6.40
––
0.02
1.48
3.98
0.35
2 38
0.57
3.32
6.26
0 37
0.71
0.96
0.44
0 04
––
6.13
0.05
17.68
1197.43
18.28
1402.91
1989-90
(12 months)
Rs.
(Rs. in lacs)
1988-89
(15 months)
Rs.
52.44
17.95
68.41
23.23
70.39
91.64
55
DEVTI FABRICS LIMITED
SCHEDULE ‘K’
NOTES AND CONTINGENT LIABILITIES
(b) Closing Stock:
i) Finished Stocks
19.56
71.71
1.
Figures of the previous year have been regrouped, wherever necessary to confirm to this
year’s figures.
Yarn
Fabrics
M. T.
Mtrs in lacs
3
1.06
4
5.15
2.
The current financial year is for period of 12 months as against 15 months in the previous
ii) Stock-in-process (Yarn)
financial year. The figures of the previous financial year are therefore not comparable.
iii) Others
3.
Interest on other accounts (net) is arrived at after adjusting Rs.0.89 lacs being interest
(c) Purchases
29.56
1.10
46.54
0.32
received/receivable (Tax at source Rs.0.08 lace).
4. Auditors’ Remuneration:
31.3.1990
(Rs. in lacs)
31.3.1989
(a) Audit fees
(b) Tax Audit fees
Rs.
0.25
0.10
0.35
Rs.
0.31
0.13
0.44
Fabrics
(d) Sales:
Yarn
Fabrics
Mtrs. in lacs
12.13
164.12
6.62
79.52
M.T.
98
113.17
133
134.63
Mtrs. in lacs
80.64
1076.83
90.27
1168.80
(e) Raw material consumed:
Cotton
Fibre
Yarn
M.T.
M.T.
234
259
170
53.19
198.98
319.43
318
729
190
80.93
279.96
323.54
5.
The company has been accounting inability for excise duty in respect of finished products
lying in factory premises as and when the same are cleared/debonded. Accordingly,
estimated liability amounting to Rs.0.10 Lacs in respect of such products at the end of
financial year has not been provided for in the accounts and hence not included in the
valuation of inventory. This accounting treatment has no impact on the loss of the current
financial year
6. Depreciation on assets has been provided on straight-line method for the financial year
in accordance with the method and at the rates prescribed by Schedule XIV to the
13. Value of raw material
consumed:
Imported
Indigenous
Companies Act. 1956.
7. Contingent Liabilities:
Estimated amount of contracts remaining to be executed on
Capital Account and not provided for
Guarantees given by Bank of Baroda for DPG Scheme
Bonds executed in favour of Excise 8 Customs Authorities
Claims against the company not acknowledged as debts
(Rs. in lacs)
14. Value of dyes & chemicals,
31.3.1990 31.3.1989
Rs.
Rs.
0.06
0.90
3.00
1.01
130.72
2.19
3.00
0.61
stores and spare parts
consumed:
Imported
Indigenous
15. Earning in foreign exchange
8.
Licenced & Installed Capacity
Licenced Capacity
Installed Capacity
(As certified by the Management)
31.3.90
31.3.89
31.3.90
31.3.89
Spindles
Looms
Nos.
Nos.
38368
38368
37536
36456
490
490
490
490
31.3.1990
31.3.1989
Rs. in lacs % of total Rs in lacs % of total
––
––
––
––
571.60
100.00
684.43
100.00
57.27
100.00
62.78
100.00
31.3.1990
RS.
(Rs. in lacs)
31.3.1989
Rs.
31.3.90
31.3.89
16.(a) Break-up of expenditure incurred on employees who
9. Production of finished Products meant for sale
Blended yarn
Fabrics
M.T.
Mtrs. in lacs
10. Value of imports on CIF basis
11. Expenditure in foreign currency
97
64.42
Nil
Nil
119
86.89
Nil
Nil
31.3.1990
31.3.1989
Quantity
Rs. in Quantity
lacs
Rs. in
lacs
12. Quantitative information:
(a) Opening stock
i)
Finished Stocks
71.71
34.34
Yarn
Fabrics
M.T.
Mtrs. in lacs
4
5.15
18
1.91
ii)
Stock-in-process (Yarn)
iii) Others
46.54
0.32
69.75
0.66
were employed throughout the period and were in
receipt of remuneration for the period which in
aggregate was not less than Rs.72,000 per annum
Number of employees
Salaries and Bonus
Contribution to Provident Fund & Superannuation
Fund
Other Perquisites
(b) Break-up of expenditure incurred on employees who
were employed for a part of the period and were in
receipt of remuneration for any part of the year at a
rate which in aggregate was not less than Rs.6,000
per month
Number of employees
Salaries and Bonus
Contribution to Provident Fund & Superannuation
Fund
Other Perquisites
3
2
1.30
0.32
0.35
1.63
0.39
0.35
1
––
––
––
0.67
0.11
0.12
As per our Repor t of even date
For and on behalf of the Board
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. Shah
Proprietor
Bombay
Dated: 23rd July, 1990.
56
D. Chaturvedi
Partner
S. Natarajan
Vinod M. Ambani
Directors
TRISHNA INVESTMENTS & LEASINGS LIMITED
Regd. Office: 3rd Floor, Maker Chambers IV
222 Nariman Point
Bombay 400 021
57
TRISHNA INVESTMENT AND LEASINGS LIMITED
DIRECTORS REPORT
To the Members.
Your Directors present the 4th Annual Repor t together with the Audited Statement
of Accounts for the financial year ended on 31st March. 1990.
FINANCIAL RESULTS:
The Company during the year under review has incurred a loss of Rs.821.89
lacs as against the previous years’ profit of Rs.61.20 lacs.
During the year 1988, your Company had acquired 39,00,000 Equity Shares of
Rs.10/- each of M/s. Larsen & Toubro Limited. As the acquisition of the said
shares was the subject matter of dispute in the Appeal pending before the Hon’ble
Supreme Court with a view to show the Company’s complete bonafides in the
matter and put to an end to the entire controversy and the campaign of calumny
and unseemly virulent attack on the Company and Financial Institutions the
Company sold back the said 39,00,000 equity shares alongwith accretions to
the Financial Institutions incurring a loss of Rs.1021.36 lacs in the process.
Dividend income received during the financial year amounted to Rs.35.10 lacs.
INVESTMENTS:
During the year, the Company has acquired shares/debentures of various
companies resulting in a net increase in its investments of Rs.10224.31 lacs.
DIVIDEND:
In view of the loss, the Board of Directors have not recommended any dividend
for the period ended 31st March. 1990.
Bombay
Dated: 25th April, 1990
DEPOSITS:
The Company has not accepted any deposit from the public. Hence no information
is required to be appended to this report in terms of Non-Banking Financial
Companies (Reserve Bank) Directions, 1977.
PERSONNEL:
The Company has not paid any remuneration attracting the provisions of
Companies (Particulars of Employees) Rules, 1975 read with Section 217(2 A)
of the Companies Act, 1956. Hence no information is required to be appended to
this report in this regard.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO:
Being an investment company, there are no particulars furnished in this report
as required by Section 217(1)(e) of the Companies Act, 1956 relating to
conservation of energy and technology absorption. There was no foreign exchange
earnings or outgo during the year.
DIRECTORS:
As per the provisions of the Articles of Association, Shri F.N. Vazifdar and Shri
R.P. Mehta, Directors of the Company retire by rotation and being eligible offer
themselves for reappointment.
AUDITORS:
The Auditors of the Company, Messrs Chaturvedi & Shah and Messers Rajendra
& Co. hold office until the conclusion of the ensuing Annual General Meeting and
are recommended for reappointment. 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.
For and on behalf of the Board
F.N. Vazifdar
V.T. Pai
B.K. Bhandary
Directors
58
TRISHNA INVESTMENT AND LEASINGS LIMITED
AUDITORS’ REPORT
To
The Members of Trishna Investments and Leasings Limited
We have audited the attached Balance Sheet of TRISHNA INVESTMENTS AND
LEASINGS LIMITED as at 31st March, 1990 and also the Profit & Loss Account
for the year ended on that date annexed thereto and report that:
3. The Company has received an interest free loan from the holding company.
According to the information and explanations given to us, and in our opinion,
the terms and conditions of the above ban are not prima-facie prejudicial to
the interest of the Company. The Company has not taken any other loans
secured or unsecured from companies, firms, or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956, or from
Companies under the same management as defined by subsection (1B) of
Section 370 of the Companies Act, 1956.
1. As required by the Manufacturing and Other Companies (Auditors’ Report)
Order 1988, issued by the Company Law Board in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. The company has not granted any loans, secured or unsecured to companies,
firms or other parties listed in the register maintained under Section 301 of
the Companies Act, 1956 or to companies under the same management
within the meaning of Section 370(1B) of the Companies Act, 1956.
2. Further to our comments in the Annexure referred in paragraph 1 above, we
report that:
5. The Company has not given any loans or advances in the nature of loans
during the year.
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our
audit.
b)
In our opinion proper books of account as required by law have been
kept by the Company, so far as appears from our examination of such
books.
c) The Balance Sheet and Profit and Loss Account referred to in this Repor t
are in agreement with the books of account.
d)
In our opinion and to the best of our information and according to the
explanations given to us, the said Balance Sheet and Profit and Loss
Account read together with the notes thereon’ give the information
required by the Companies Act, 1956, in the manner so required and
give a true and fair view:
i)
ii)
in so far as it relates to the Balance Sheet of the state of affairs of
the Company as at 31st March, 1990 and
in so far as it relates to the Profit and Loss Account of the Loss of
the Company for the year ended on that date.
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
O. CHATURVEDI
Partner
R.J. SHAH
Proprietor
Bombay
Dated: 25th April, 1990.
RE: TRISHNA INVESTMENTS AND LEASINGS LIMITED
Referred to in Paragraph 1 of our Report of even date
ANNEXURE
6. According to the information and explanations given to us, the Company has
not accepted any deposits as defined under section 58-A of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 during
the year under review.
7. Since the paid up capital of the Company is less than Rs.25 lacs and as it
has not commenced any trading or manufacturing activity, internal audit is
not required statutorily.
8.
In our opinion, the provisions of the Provident Fund Act and other relevant
Acts including Employees State Insurance Act, 1948 are not applicable to
the Company.
9. According to the information and explanations given to us, no undisputed
amounts payable in respect of Income tax, Wealth-tax, Sales-tax, Excise
Duty and Customs Duty were outstanding as at 31st March, 1990 for a period
of more than six months from the date they became payable.
10. In our opinion and according to the information and explanations given to us,
no personal expenses have been charged to revenue account.
11. The Company is not a sick industrial company within the meaning of clause
(O) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. According to the information and explanations given to us, the provisions of
any special statute applicable to Chit Fund, Nidhi or Mutual Benefit Society
are not applicable to the Company.
14. The Company has maintained proper records of transactions and contracts
in respect of trading in shares and debentures and timely entries have been
made therein. All the shares and debentures are held by the Company in its
own name or have been lodged for transfer.
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
1. As the Company had no Fixed Assets during the year, clauses 4(A) (i) and
(ii) of the said Order are not applicable.
O. CHATURVEDI
Partner
R.J. SHAH
Proprietor
2. Since the Company has not commenced any manufacturing and/or trading
activity, items (iii), (iv), (v), (vi) (x), (xi), (xii), (xiv) and (xvi) of the clause A of
paragraph 4 of the aforesaid Order are also not applicable.
Bombay
Dated: 25th April, 1990.
59
TRISHNA INVESTMENT AND LEASINGS LIMITED
BALANCE SHEET AS AT 31ST MARCH, 1990
SOURCES OF FUNDS:
Shareholders’ Funds
Capital
Reserves 8 Surplus
Loan Funds
Unsecured Loan
TOTAL
APPLICATION OF FUNDS:
Investments
Current Assets, Loans & Advances
Debtors
Cash & Bank Balances
Loans and Advances
Less: Current Liabilities & Provisions
Current Liabilities
Provisions
Net Current Assets
Miscellaneous Expenditure
(to the extent not written off or adjusted)
Profit & Loss Account
TOTAL
Schedule
Rs.
Rs.
Rs.
Rs.
1989-90
(12 months)
(Rs. in thousands)
1988-89
(7 months)
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
44
––
1498475
1498519
44
6112
467900
474056
1497002
474571
107749
2146
14677
124572
197073
2063
199136
––
51
1849
1900
356
2063
2419
(74564)
4
76077
1498519
(519)
4
––
474056
Notes and Contingent Liabilities
‘H’
As per our Report of even date
For and on behalf of the Board
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Proprietor
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors
For CHATURVEDI & SHAH
Chartered Accountants
D. Chaturvedi
Partner
Bombay
Dated: 25th April, 1990.
60
TRISHNA INVESTMENT AND LEASINGS LIMITED
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 1990
Schedule
Rs.
Rs.
Rs.
Rs.
1989-90
(12 months)
(Rs. in thousands)
1988-89
(7 months)
3510
8190
INCOME
Dividend Income
(Tax deducted at Source Rs.815 thousand,
Previous year Rs.1849 thousands)
Interest received on securities
(Tax deducted at Source Rs.772 thousand)
Commission
EXPENDITURE
Establishment & Other Expenses
Loss on sale of Investment (Net)
Profit before tax
Less: Provision for taxation
Profit after tax
Add/Less: Balance brought forward from last year
Balance carried to Balance Sheet
‘G’
18263
752
3334
101380
(82189)
––
(82189)
6112
(76077)
Notes and Contingent Liabilities
‘H’
As per our Report of even date
For and on behalf of the Board
For CHATURVEDI & SHAH
Chartered Accountants
D. Chaturvedi
Partner
Bombay
Dated: 25th April, 1990.
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Proprietor
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors
––
––
7
––
8183
2063
6120
(8)
6112
61
TRISHNA INVESTMENT AND LEASINGS LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE ‘E’
SCHEDULE ‘A’
SHARE CAPITAL
Authorised:
40,000 Equity Shares of Rs.10/- each
10,000 11% Non-Cumulative Redeemable Preference
Shares of Rs.10/- each
Issued & Subscribed & Paid-up
4,400 Equity Shares of Rs.10/- each fully paid-up
(Previous year 4,400 Equity Shares of Rs.10/
each)
All the above Shares are held by Reliance
Industries Limited, the holding Company.
As at
31.3.1990
Rs.
(Rs. in thousands)
As at
318.1989
Rs.
400
100
500
44
400
100
500
44
CURRENT ASSETS, LOANS AND ADVANCES
Current Assets:
Sundry Debtors
Cash and Bank Balances:
Cash on hand
Balance with a Scheduled Bank.
In Current Account
Loans and Advances
Advance recoverable
Advance payment of Tax
SCHEDULE ‘F’
44
44
CURRENT LIABILITIES & PROVISIONS
SCHEDULE ‘B’
RESERVES AND SURPLUS
Profit and Loss Account
SCHEDULE ‘C’
UNSECURED LOANS
From Holding Company
Short Term Loan from Bank
SCHEDULE ‘D’
OTHER INVESTMENTS: (QUOTED)
As at
31.03.1990
Rs.
––
(Rs. in thousands)
As at
31.03.1989
Rs.
6112
––
6112
As at
31.03.1990
Rs.
1482900
15575
(Rs. in thousands)
As at
31.8.1989
Rs.
467900
––
1498475
467900
As at
31.03.1990
Rs.
(Rs. in thousands)
As at
31.03.1989
Rs.
CURRENT LIABILITIES
Sundry Creditors
Other Liabilities
PROVISIONS
For Taxation
SCHEDULE FORMING PART OF THE
PROFIT AND LOSS ACCOUNT
SCHEDULE ‘G’
EXPENDITURE
Administrative Expenses
Finance Charges
Commission
Directors Sitting Fees
Auditors Remuneration:
Audit Fees
Legal & Professional Charges
As at
31.3.1990
Rs.
(Rs. in thousands)
As at
31.8.1989
Rs.
107749
4
2142
10989
3688
124572
––
4
47
1849
1900
As at
31.03.1990
Rs.
(Rs. in thousands)
As at
31.03.1989
Rs.
196080
993
2063
199136
350
6
2063
2419
1989-90
(12 months)
Rs.
6
1326
27
––
(Rs. in thousands)
1988-89
(7 months)
Rs.
1
––
––
1
10
1965
3334
5
––
7
Investment - At Cost
13320355 Equity Shares of Larsen & Toubro Limited of
1336788
474571
Rs.10/- each fully paid up’
(Previous year 3900000 Equity Shares of
Rs.10/- each)
175 Equity Shares of The Bombay Burmah
100
Trading Corporation Ltd. of Rs.100/- each
fully paid up
38857 Debentures Series III of Larsen & Toubro
3225
Limited of Rs.65/- each fully paid up
1321778 Debentures Series IV of Larsen & Toubro
131966
Limited of 360185 Rs.300/- each partly paid
up Rs.75/- per Debenture & 961593 of
Rs.290/- each partly paid up Rs.72.50 per
Debenture
8744 Debentures Part B of Reliance
Petrochemicals Ltd. of Rs 40/- each fully
paid up
192474 Debentures Part C of Reliance
Petrochemicals Ltd. of Rs 150/- each fully
paid up
352
24571
––
––
––
––
––
Quoted Investment -
Book Value
Market Value
1497002
1238786
474571
395850
1497002
474571
SCHEDULE ‘H’
Notes forming part of the Balance Sheet and Profit and Loss Account for the year ended
on 31st March, 1990
1.
The current financial year is for period of twelve months whereas the previous year was
for a period of seven months. The current year’s figures are to that extent not comparable.
2. Previous period figures have been regrouped and/or rearranged wherever necessary.
3.
The acquisition of certain shares of Larsen & Toubro Limited by the Company was
challenged in some legal proceedings. The matter was decided by the Honourable Bombay
High Court in favour of the Company. While these matters were pending before the
Honourable Supreme Court, the Company, with a view to put and end to the litigations
agreed to sell the shares alongwith the accretions thereto to Financial Institutions. This
transaction resulted in a loss of Rs. 1021.36 lacs to the Company.
4. CONTINGENT LIABILITIES
Guarantees given on behalf of others
(a) Employees who are employed throughout the year and were in receipt of
5.
(Rs. in lacs)
6420.00
Rs.
remuneration for a period which in aggregate was not less than Rs.72,000/
per annum
(b) Employees who are 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.6,000/- per month.
NIL
NIL
6.
As the Company is not a manufacturing company, information in respect of manufacturing activities
required under pares 3 and 4 of Schedule VI of the Companies Act, 1956 is not given.
As per our Report of even date
For and on behalf of the Board
For CHATURVEDI & SHAH
Chartered Accountants
D. Chaturvedi
Partner
Bombay
Dated: 25th April, 1990.
62
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Proprietor
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors