Reliance Industries Limited
Annual Report 1990-91
66
Reliance
Industries Limited
SEVENTEENTH
ANNUAL REPORT
1 9 9 0 –– 9 1
Board of
Directors
Dhirubhai H. Ambani
Chairman & Managing Director
Ramniklal H. Ambani
Joint Managing Director
Natvarlal H. Ambani
Executive Director
Mukesh D. Ambani
Mansingh L. Bhakta
T. Ramesh U. Pai
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
Secretary
Vinod M. Ambani
Auditors
Solicitors
Bankers
Registered Office
Rajendra & Co. and Chaturvedi & 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)
3rd Floor, Maker Chambers IV
222, Nariman Point,
Bombay 400 021.
Seventeenth
annual report
1990-91
Contents
Financial Highlights
Graphs
Page No(s).
4 - 5
6 -7
8 - 9
10 - 11
12 -16
17
18
19
20-28
29-33
34
Notice of Annual General Meeting
Directors’ Repor t
Annexure to Directors’ Repor t
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 35-65
PLANTS AT
1. Patalganga, Off Bombay - Pune Road
Near Panvel,
Dist. Raigad,
Maharashtra.
2. 103/106, Naroda Industr ial Estate,
Naroda,
Ahmedabad.
SUBSIDIARY COMPANIES
Devti Fabrics Limited
Plant at Sidhpur,
Dist. Mehsana, Gujarat State.
Reliance Petrochemicals Limited
Village Mora, Bhata P.O.,
Surat - Hazira Road,
Dist. Surat, Gujarat State.
Trishna Investments and Leasings Limited
Maker Chambers IV,
222, Nariman Point, Bombay 400 021.
Reliance Europe Limited
Devonshire House, 146, Bishopsgate
London EC2M 4JX
REGISTRARS & TRANSFER AGENTS
Reliance Consultancy Ser vices 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
1990-91
1989-90
Rs.
Rs.
2098.34
1840.86
6.55
15.64
2104.89
1856.30
1617.87
1432.10
487.02
187.05
174.42
361.47
125.55
424.20
171.73
161.97
333.70
90.50
2186.42
1998.79
703.85
529.78
1482.57
1469.01
69.53
58.05
1160.22
1026.26
2712.32
2553.32
708.96
131.26
718.65
595.89
219.50
650.95
1558.87
1466.34
152.12
152.12
5.60
5.80
995.53
929.06
1153.45
1086.98
Highlights
1989-80
(9 months)
1987-88
(18 months)
1986
1985
1984
1983
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
1112.45
1770.74
905.48
733.14
622.01
520.35
(Rs. in crores)
Reliance
7.88
7.45
5.73
1120.33
1778.19
911.21
862.58
257.75
91.58
86.80
178.38
79.37
1495.27
781.82
282.92
129.39
110.74
91.41
54.24
60.98
202.15
115.22
80.77
14.17
1871 .76
1862.66
1137.55
368.98
278.58
188.09
1502.78
1584.08
949.46
1.25
0.37
58.50
849.46
4.94
738.08
604.83
133.25
24.45
37.46
61.91
71.34
735.68
128.88
606.80
37.30
7.11
4.68
629.12
525.03
511.23
433.61
117.89
22.61
34.18
56.79
61.10
91.42
21.52
31.38
52.90
38.52
530.93
104.65
394.88
73.42
426.28
321.46
0.17
0.12
607.83
1052.83
402.10
235.41
215.19
2410.74
2193.16
2002.66
1046.20
661.86
536.77
579.44
195.11
564.88
609.82
546.12
103.83
143.78
457.39
1001.23
1339.43
1171.04
1691.13
152.11
5.80
913.40
1071.31
152.10
5.80
51.61
5.80
864.22
254.12
1022.12
311.53
515.16
81.90
138.02
735.08
51.61
5.80
253.71
311.12
276.96
239.99
44.83
93.68
415.47
46.18
5.80
194.41
35.46
131.44
406.89
36.15
5.80
87.93
246.39
129.88
5
DISTRIBUTIO N O F INCOME 1 99 0 -91
25.92%
21.08%
3.75%
2.21%
8.29%
29.86%
8.89%
PUR C HASES & R AW MATER IALS C O NSUMED R s.443.72 crores
R ETAINED EAR NINGS R s .79.05 crores
D IVID END R s. 46.5 crores
D EPR EC IATIO N R s. 174.42 c rores
INTE R EST R s.187.05 crores
EXC IS E D UTY R s . 628.51crores
MANUFAC TUR ING & O THER EXP E NS E S R s.545.64 crores
1200
1000
CAPITAL & NET WORTH
1071.31
1086.98
1022.12
1153.45
s
e
r
o
r
c
n
800
600
i
.
s
R
400
200
0
311.12
246.39
129.88
36.15
46.18
51.61
311.53
51.61 152.10
152.11
152.12
152.12
83
84
85
86
87-88 88-89 89-90 90-91
90-91
89-90
88-89
87-88
86
85
84
83
s
e
r
o
r
c
n
i
.
s
R
500
450
400
350
300
250
200
150
100
50
0
2098.34
1112.45
SALES
1840.66
1770.74
905.48
733.14
622.01
520.35
Rs. in crores
0
500
1000
1500
2000
2500
GROSS PROFIT & NET PROFIT
83
84
85
86
88-89
87-88
18 months 9 months
89-90
90-91
Reliance
DIRECTORS’ REPORT
To the Members
Your Directors are pleased to present the 17th Annual Report together
with the Audited Statement of Accounts for the Financial Year ended 31st
March,1991.
1990-91
(Rs. in crores)
1989-90
FINANCIAL RESULTS
Gross Profit before Interest
and Depreciation
Less:
Interest
Depreciation
Profit for the year
Less: Tax Liability for prior year
Add: Balance in Profit & Loss Account
Taxation Reserve written back
Investment Allowance Reserve
written back
487.02
187.05
174.42
125.55
12.58
30.26
10.00
––
153.23
Investment Allowance Reserve
Taxation Reserve
Available for Appropriation
Appropriations:
50.00
a.
––
b.
16.00
c. Debenture Redemption Reserve
d. General Reserve
13.00
e. Recommended dividend (subject to deduction 46.50
of tax) on equity and preference shares.
Balance carried forward to Balance Sheet
27.73
153.23
424.20
171.73
161.97
90.50
––
19.36
––
2.90
112.76
10.00
10.00
8.00
8.00
46.50
30.26
112.76
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, 1991, if approved by the Shareholders at the ensuing Annual
General Meeting.
ON PREFERENCE SHARES
(a) Dividend of Rs.11 per Share on 30,000
Cumulative Redeemable Preference Shares
of Rs.100 each fully paid up
0.03
(b) Dividend of Rs.15 per Share on 5,50,000
Cumulative Redeemable Preference Shares
of Rs.100 each fully paid up.
0.83
Rs. in crores
ON EQUITY SHARES
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
The overall performance of the Company during the year was satisfactory.
The sales and other income during the financial year under review, rose
to Rs.2105 crores (approx.) as compared to Rs.1856 crores (approx.) in
the previous year, an increase of about 13%. The gross profit (after interest
charges) was Rs. 299.97 crores against Rs.252.47 crores for the previous
year, reflecting a growth of 18%.
The Company contributed nearly Rs. 826 crores to the national
exchequer in the form of various taxes.
FIBRE DIVISION
i.
The Polyester Staple Fibre industry continues to face poor capacity
Polyester Staple Fibre (PSF)
10
utilisation. The Industry has been operating at about 50% of installed
capacity during the year. However, your Company’s plant operated at
nearly 100% of licensed capacity during the year. This was possible
primarily due to the excellent product quality, as well as the introduction
of several new products during the year. The Company’s product not only
maintained its leadership in India but also gained international acceptance.
ii. Polyester Filament Yarn (PFY)
The margins in the Polyester Filament Yarn industry continue to be under
pressure on account of steep increase in Excise Duty levied in December,
1990 by a hefty Rs. 18 per Kg., leading to a lack of demand. This increase
in Excise Duty makes PFY one of the highest excisable products in the
country. The Industry has represented on several occassions for
rationalisation of duty structure keeping in mind the growth trends and
future capacity build-up. The Company is preparing itself to face stiff
competition in the years ahead by launching a vigorous export drive by
upgrading the quality of its products and by improving productivity, using
innovative techniques.
FIBRE INTERMEDIATES DIVISION
Purified Terephthalic Acid (PTA)
The sales of PTA registered an increase of nearly 34% during the year.
PTA is gaining increased acceptance in all polyester markets and the
number of customers producing polyester through the PTA route have
increased; a trend followed internationally by all major producers of
polyesters. The Government of India during the year levied a Gulf
surcharge on feed-stock for the production of PTA which led to an increase
in costs. However, the Company was not able to increase its fair selling
price although several representations were made to the Government to
this effect. This led to pressure on margins on PTA.
DETERGENT INTERMEDIATES DIVISION
Linear Alkyl Benzene (LAB)
The sale of LAB registered a good growth of nearly 44% during the year.
This was possible due to vigorous export drive which the Company
undertook during the year. Export turnover rose from Rs.0.04 crores to
nearly Rs.22 crores, a growth of 550%. The Company competed in the
international market with leading European producers to establish its
quality and position among leading customers in Europe.
TEXTILE DIVISION
The Company continues to aggressively market its fabrics under the
“VIMAL” brand name in India. The Division is now gearing up to be a
major exporter of synthetic fabrics to world’s major markets such as Gulf,
U.S.A. E.E.C. etc.
PROJECTS
I.
The Company is implementing the expansion of capacities of various
projects under the Minimum Economic Scale (MES) announced by the
Government of India. During the current financial year the capacity of the
PTA plant will be increased from 1,00,000 to 2,00,000 TPA. The first stage
of its expansion has already been completed. The capacity of the LAB
plant is being increased from the present 60,000 to 80,000 TPA.
II. Broad Banding of Polyester Staple Fibre Plant
The Company has taken advantage of expanding the capacity of its
Polyester Staple Fibre (PSF) from 45,000 to 60,000 TPA under the
Minimum Economic Scale. However, considering the poor capacity
utilisation in the Staple Fibre industry, the Company is taking advantage
of Broad Banding Policy of the Government of India and will manufacture
15,000 TPA of Polyester Filament Yarn(PFY). This programme is likely to
be completed in the current financial year.
III. LAB Front-End Project
The Company has been using imported N-Paraffin as a raw material for the
manufacture of Linear Alkyl Benzene (LAB). The Company is planning to
manufacture N-Paraffin from Kerosene under the Front-End Project during
the current financial year. On commissioning, the Company would effect a
saving of foreign exchange estimated at Rs.100 crores per annum.
Minimum Economic Scale (MES)
IV. Joint Sector Project
As mentioned in the last year’s Report, the Company entered into a
Memorandum of Understanding with the West Bengal Industrial
Development Corporation Limited (WBIDC) for setting up a Joint Sector
Project for the manufacture of 15,000 tonnes per annum of Polyester
Filament Yarn (PFY) . The Company entered into a Joint Sector Agreement
in December, 1990 for setting up a Joint Sector Company under the name
Reliance Bengal Industries Limited to implement the project. Steps have
been taken to amend the Letter of Intent to increase the capacity from
15,000 tonnes per annum of PFY to the minimum economic size of 25,000
tonnes per annum and also for transfer of the Letter of Intent in the name
of the Joint Sector Company. The composite application for CG/FC has
been submitted to the Government of India. The project has currently
been estimated to cost around Rs. 300 crores.
V. Cracker Project
The Cracker Project for the manufacture of Ethylene, Propyelene,
Butadiene and other products to be located at Hazira (Gujarat) has been
appraised by the Financial Institutions in 1990. To part finance the Rupee
requirements of this project, the Company will shortly be approaching
the Shareholders with a Rights Issue which has already been approved
by them at the Extra Ordinary General Meeting held last year. The Cracker
project will be the single largest in the Private Sector.
EXPORTS
The Company continued its export drive throughout the year. Your
company’s Polyester Staple Fibre and Linear Alkyl Benzene gained world
acceptance during the year. The Company also sold its product to Du
Pont under the prestigious DACRON brand name. Reliance is the first
company outside the Du Pont Group to have accomplished this. World
leaders in the detergent industry such as Proctor & Gamble, Unilever
and Henkel Chemicals are now Company’s major customers. Your
Company continued to supply both these products in the domestic market
under Advance Intermediate Licensing Scheme which helped the country
to earn higher value addition. Your Company has identified Polyester
Filament Yarn as the new thrust area for exports, apart from Synthetic
Fabrics of all types. The Company is examining several projects in its
current areas of business which will substantially enhance its
manufactured exports during the coming years.
ENERGY, TECHNOLOGY & FOREIGN EXCHANGE
Information in accordance with the provisions of Section 217(1)(e) of the
Companies Act, 1956, read with Companies (Disclosure of Particulars 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.
OVERSEAS SUBSIDIARY
The Company has incorporated its wholly owned subsidiary namely
Reliance Europe Limited with Registered Office in London. It has recently
started its operations. The Company in the years to come will help to
promote exports of your Company’s products as well as trade in products
not manufactured by your Company.
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. Reliance Petrochemicals Limited, Devti Fabrics Limited, Trishna
Investments and Leasings Limited and Reliance Europe Limited and the
respective Auditors’ Report thereon for the year ended 31st March, 1991,
are annexed.
FIXED DEPOSITS
Deposits of Rs. 1.35 crores due for repayment on or before 31st March,
1991 were not claimed by 2255 depositors as on that date. Of these,
deposits amounting to Rs. 0.73 crores of 1220 depositors have since
been repaid / renewed.
DEBENTURES
The funds raised through the issues of Debentures have been utilised for
the approved objects.
Reliance
PERSONNEL
As required by the provisions of Section 217 (2A) of the Companies Act,
1956, read with Companies (Particulars of Employees) Rules, 1975, as
amended, 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
Shri M.D. Ambani resigned from the post of Executive Director in July,
1991. He however, continues as a Director. The Board wishes to place on
record their sincere appreciation for the services rendered to the Company
during his tenure as Executive Director.
Shri J.R. Shah has resigned from the Board and his resignation will take
effect from 30th September, 1991. The Board wishes to place on record
its sincere appreciation for the valuable guidance and wise counsel given
by Shri Shah during his long tenure as a Director of the Company.
Shri T.R.U. Pai, Shri M.D. Ambani and Shri A.D. Ambani retire by rotation
and being eligible offer themselves for re-election.
AUDITORS & AUDITORS’ REPORT
Messrs. Rajendra & Company and Messrs. Chaturvedi & Shah, 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
reappointment, if made, would be within the prescribed limits under
Section 224(1) of the Companies Act, 1956.
The note to the Accounts No. 3 referred to in the Auditors’ Report are self
explanatory and therefore, do not call for any further comment.
ACKNOWLEDGEMENT
Your Directors would like to express their grateful appreciation to the
assistance and cooperation 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.
For and on behalf of the Board of Directors
Dhirubhai H. Ambani
Chairman & Managing Director
Bombay 400 021
Dated: 13th September, 1991
11
Reliance
ANNEXURE TO DIRECTORS’ REPORT
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURES OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES. 1988.
A. CONSERVATION OF ENERGY:
a)
ENERGY CONSERVATION MEASURES TAKEN
Some of the important measures taken in the year 1990-91
are given below:
i)
ii) Replacement of metallic fin-fan coolers by FRP fans in
Utilization of excess fuel gas for captive consumption.
process and cooling towers.
iii) Re-arranging Air Compressors and thereby centralising
at one location has reduced the consumption of electrical
energy by reducing operation and time loses.
iv) Trimming of oversized impellers in centrifugal pumps,
v)
thereby reducing power consumption.
Installation of Air Pre-heater to conserve energy from fuel
gases.
b)
ADDITIONAL INVESTMENTS AND PROPOSALS BEING
IMPLEMENTED FOR REDUCTION IN CONSUMPTION OF
ENERGY.
i)
ii)
Steam recovery of boilers blowdowns.
Integration in DOW system to avoid unnecessar y heating/
cooling to maintain desired temperature.
iii) Optimization of insulation thickness of piping system.
iv) Automation of air supply to waste cut-down basket.
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 in evaluation of performances,
modernisation and upgradation of equipments, technical methods and
precise instrumentation. These steps have enabled to optimise energy
consumption at all the Plants. These efforts are combined with the systems
of budgeting and energy audits.
5.
FORM ‘A’
Form for disclosure of particulars with respect to Conservation of
Energy:
PART - A
Power and Fuel consumption.
Electricity
1.
April 90 to
April 89 to
March1991 March 1990
a)
Purchased Units (lacs)
Total Amount (Rs in lacs)
Rate/Unit (Rs.)
b) Own Generation
i)
ii)
Through Diesel Generator
Units (lacs):
Unit per Ltr. of Diesel
Cost/Unit (Rs.)
Through Steam Turbine/
Generator: Units(lacs)
Unit per Ltr. of fuel oil/gas
Cost/Unit (Rs.)
2. Coal
3.
Quantity (tonnes)
Total cost (Rs. in lacs)
Average Rate per MT (Rs.)
Furnace Oil
Quantity (K. Ltrs)
Total Amount (Rs. in lacs)
Average Rate per Ltr. (Rs.)
4. Others
GAS
Quantity (1000M3)
Total Cost (Rs. in lacs)
Rate/Unit per 1000 M3 (Rs.)
L D O
Quantity (K. Ltrs.)
Total Cost (Rs. in lacs)
Rate/Unit per K. Ltr. (Rs.)
3183.94
5052.55
1.59
3017.46
4315.52
1.42
483.26
3.52
1.43
417.73
3.56
1.33
Nil
Nil
9756.00
119.37
1223.55
10050.00
108.11
1075.70
166661.00
5850.60
3.51
165915.00
5720.38
3.19
16671.00
319.00
1915.00
14760.00
271.39
1838.71
214.00
7.92
3.69
240.00
7.55
3.15
* Increase due to increase in prices, tariffs and Gulf Surcharge.
PART ‘B’
CONSUMPTION PER UNIT OF PRODUCTION
FABRICS
PFY
PSF
PTA
LAB
Current
Year
Previous
Year
Current
Year
Previous
Year
Current
Year
Previous
Year
Current
Year
Previous
Year
Current
Year
Previous
Year
Electricity(KWH)
Furnace 0il (Ltrs)
Coal (Kgs)
Gas (M3)
LSHS (MT)
980
48.3
145.7
277
4.3
1009
83.5
190.4
249
––
1370
105
––
––
139
1440
200
––
––
––
610
107
––
––
133
600
220
––
––
––
381
417
––
––
––
436
80
––
––
––
435
347
––
––
––
505
474
––
––
––
Note: The above figures indicate only the direct consumption and exclude consumption of power and fuel in the supporting utilities.
12
Reliance
FORM ‘B’
3. FUTURE PLAN OF ACTION
B. FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO
Projects are proposed for the following:
TECHNOLOGY ABSORPTION.
1. SPECIFIC AREAS IN WHICH RESEARCH AND DEVELOPMENT
(R&D) IS BEING CARRIED OUT BY THE COMPANY.
Research work is being carried out in Polyester Staple Fibre, Polyester
Filament Yarn and Petrochemical Processes. The stress has been on
process modification, production development for better yield and
quality, optimisation of process parameters, energy conservation, cost
reduction and also import substitution.
Special attention for consistency in the shade and in quality with
attractive patterns in fabrics produced have been achieved through
series of laboratory trials coupled with process control measures.
Resist and discharge type of prints developed to cater to special
customers.
2. BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D
a) Product Development/improvement:
1.0 denier fibre and commercial production of the same.
i)
ii) 1.2 Super High Tenacity for Serving threads.
iii) 11.4 denier with coarser D.P.F and better tensiles.
iv) Development of Fancy Fabrics in multiple blends.
v) Product Development: 80/34 Trilobal bright POY Yarn and
86/34 Semi-dull POY yarn.
vi) Product improvement: Commercial production of 0.05%
a) Production of fancy fabrics by single bath dying in multiple blends.
b)
Introduction of continuous polyester filter for POY yarns suitable for
ver y high speed texturising.
c) Modification of Radial quench units for better air sealing.
d) Development of coarser trilobal fibre/and speciality fibre for sanitary
napkins.
e)
Indigenisation of DS-3 Spinfinish.
f) Reduction in the consumption of finish and soft water at drawing
stages for reduction of DEG in polymer.
g)
Improved Glycolysis filteration for accurate ‘G’ monomer injection.
4. EXPENDITURE ON R&D
a) Capital
b) Recurring
c) Total
(Rs. in lacs)
––
77.13
77.13
d) Total R&D expenditure as a percentage of total turnover. 0.04%
T102 Bright 1.5 Trilobal fibre.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
vii) Development of high speed process for the production of 235/
b)
34 semi-dull POY yarn.
IMPORT SUBSTITUTION
i) Development of indigenous spin finish components and
spinnerette mould release agents.
Efforts made towards technology absorption, adaptation and innovation
and benefits derived as a result thereof -
1. To develop uses of by products generation in the manufacturing
process.
ii) Development of indigenous cromper spares, draw roll,
2. To improve yield and recovery of catalysts.
Annealer Rails in PSF section.
Considerable savings effected in PFY section to the extent of Rs.
56 lacs.
3.
4.
Indigenise DS-3 spin finish.
Indigenise various spares and consumables.
PRODUCT
Polyester Staple Fibre
Purified Terephthalic Acid
Paraxylene
Linear Alkyl Benzene
INFORMATION REGARDING IMPORTED TECHNOLOGY
TECHNOLOGY
FROM
(a)
Du Pont(USA)
ICI (UK )
UOP (USA)
UOP (USA)
YEAR OF
IMPORT
(b)
1985
1986
1985-86
1985
STATUS O F
IMPLEMENTATION
(c)
Technology Absorbed
Technology Absorbed
Technology Absorbed
Technology Absorbed
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
i) Activities relating to exports, initiatives taken to increase exports, development of new export
market for products and services and export plan.
ii) Total foreign exchange used and earned:
a) Total foreign exchange earned.
b) Total savings in Foreign Exchange through products manufactured by the Company and deemed exports.
c) Total foreign exchange used
Detailed information
in main report.
Rs. in Crs.
55.95
714.22
770.17
248.29
13
AUDITORS’ REPORT
To the Members of Reliance Industries Limited
We have audited the attached Balance Sheet of RELIANCE INDUSTRIES LIMITED as at 31st
March, 1991 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.
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
2.
(b)
knowledge and belief were necessary for the purposes of our audit.
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
(d)
agreement with the books of account.
(i)
For the reasons mentioned in Note No.3 of Schedule N to the Accounts, the
items of income and expenditure mentioned therein continue to be accounted
for on cash basis.
(ii) The Company has accounted for expor t incentives on cash basis which in the
past were accounted for on accrual basis resulting in an understatement of
profit for the year by Rs.85 lacs.
(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, 1991; and
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.
(b)
for RAJENDRA & CO.
Chartered Accountants
R.J. SHAH
Proprietor
Bombay,
Dated: 28th June, 1991
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 except in respect of certain items of furniture and
fixtures In respect of the records of the assets of the Patalganga complex, the same
were recompiled on the basis of available information According to the information and
explanations given to us, most of the Fixed Assets were physically verified by the
management during the year and no material discrepancies were noticed on such
verification as compared to the available 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.
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. In respect of stores and spares, the discrepancies noticed on such verification
have been appropriately dealt with in the accounts.
4.
5.
7.
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.9 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.
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.
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
8.
Reliance
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.
9.
10.
11.
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.
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 purchase of stores raw materials including components plant
and machinery equipment and other assets and for the sale of goods.
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. According to the information and explanations given 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.
14.
15.
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 i 956 and the
Companies (Acceptance of Deposits) Rules 1975 with regard to the deposits accepted
from the Public.
In our opinion reasonable records have been maintained by the Company for the sale and
disposal of realisable by-products and scrap wherever significant.
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 certain 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 1991 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.
22.
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.
In respect of processing activities of the Company which form an insignificant part of its
operations 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: 28th June, 1991
for CHATURVEDI & SHAH
Chartered Accountants
D. CHATURVEDI
Partner
17
Reliance
BALANCE SHEET AS AT 31st MARCH, 1991
Schedule
As at
31st March, 1991
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
SOURCES OF FUNDS:
Shareholders’ Funds
Capital
Reserves and Surplus
Loan Funds
Secured Loans
Unsecured Loans
APPLICATION OF FUNDS:
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Investments
Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Less: Current Liabilities and Provisions
Current Liabilities
Provisions
TOTAL
Notes and Contingent Liabilities
157.92
995.53
939.13
162.39
2,186.42
703.85
411.51
327.31
40.40
779.26
380.96
1,160.22
410.04
47.31
457.35
157.92
929.06
1,153.45
1,086.98
1,101.52
2,254.97
1,482.57
69.53
1,116.19
2,203.17
1,469.01
58.05
903.59
212.60
1,998.79
529.78
377.56
304.90
16.53
698.99
327.27
1,026.26
301.28
48.87
350.15
702.87
2,254.97
676.11
2,203.17
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘G’
‘H’
‘I’
‘N’
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
Chairman & Managing Director
R.J. Shah
Proprietor
D. Chaturvedi
Partner
Bombay
Dated: 28th June, 1991.
18
J.R. Shah
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
Directors
Executive Directors
V.M. Ambani
Secretary
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 1991,
Schedule
‘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
Less: Tax liability of prior years
Less: Taxation Reserve written back
Add: Balance brought forward from last year
Add:
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
2,098.34
6.55
32.69
57.69
1,592.87
187.05
174.42
––
––
12.58
10.00
––
50.00
16.00
13.00
0.86
45.64
As at
31st March, 1991
Rs.
Rs.
Reliance
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
1,840.66
15.64
3.32
2,137.58
1,859.62
20.94
1,414.48
171.73
161.97
2,012.03
125.55
1,769.12
90.50
2.58
122.97
30.26
153.23
––
153.23
––
90.50
19.36
109.86
2.90
112.76
28.36
28.36
––
––
10.00
10.00
8.00
8.00
0.86
45.64
125.50
27.73
82.50
30.26
Notes and Contingent Liabilities
‘N’
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
Chairman & Managing Director
R.J. Shah
Proprietor
D. Chaturvedi
Partner
J.R. Shah
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
Directors
Executive Directors
Bombay
Dated: 28th June, 1991.
V.M. Ambani
Secretary
19
Reliance
SUHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE ‘A’
SHARE CAPITAL
Authorised:
20,00,00,000 Equity Shares of Rs.10 each
30,000
5,50,000
11% Cumulative Redeemable Preference Shares of Rs.100
each
15% Cumulative Redeemable Preference Shares of Rs.100
each
4,42,00,000 Unclassified Shares of Rs.10 each
As at
31st March, 1991
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
200.00
0.30
5.50
44.20
250.00
200.00
0.30
5.50
44.20
250.00
Issued: Equity
15,21,46,493 Equity Shares of Rs.10 each
152.15
152.15
Subscribed: Equity
15,20,97,285 Equity Shares of Rs.10 each fully paid up
152.10
152.14
(Previous year 15,21,46,493 Equity Shares of Rs.10 each
fully called up-152.14 Crores)
Less: Calls unpaid
Add: Shares forfeited (Amount originally paid u p on 49,208
Equity Shares)
––
0.02
0.02
––
Issued & Subcribed: Preference
30,000
5,50,000
11% Cumulative Redeemable Preference Shares of Rs.100
each fully paid up (redeemable at any time after 16th
March 1990 but not later then 15th March, 1993)
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
0.30
5.50
157.92
152.12
0.30
5.50
157.92
Of the above Equity Shares:
1.
(a)
(b)
(c)
(d)
(e)
1,56,78,440 Shares were allotted as fully paid-up Bonus Shares by capitalisation of Share Premium and Reserves
60,62,000 Shares were allotted as fully paid-up pursuant to Schemes of Amalgamation without payments being received in cash.
9,44,78,433 Shares were allotted as fully paid-up Shares on conversion/surrender of 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.
20
SCHEDULE ‘B’
RESERVES & SURPLUS
Debenture Redemption Reserve
As per last Balance Sheet
Add: Transferred from Profit & Loss
Account
Share Premium Account
As per last Balance Sheet
Less: Calls unpaid - by others
Add: Received during the year (Rs.47,075)
Investment Allowance Reserve
As per last Balance Sheet
Add: Transferred from Profit & Loss Account
Less: Utilised for purchase of machinery during the year transferred to
Investment Allowance (Utilised) Reserve
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
Less: Transferred to Profit and Loss Account
General Reserve
As per last Balance Sheet
Less: Transferred to Profit and Loss Account
Add: Amount transferred from
Profit & Loss Account
Profit & Loss Account
Reliance
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
As at
31st March, 1991
Rs.
Rs.
18.25
16.0
673.17
––
673.17
––
10.00
50.00
60.00
10.00
149.90
10.00
150.90
––
20.00
––
10.00
36.48
––
36.48
13.00
34.25
10.25
8.00
673.29
0.12
673.17
––
18.25
673.17
673.17
30.00
10.00
40.00
30.00
50.00
1 0.00
113.80
30.00
143.80
2.90
150.90
140.90
10.00
10.00
––
56.84
28.36
28.48
8.00
10.00
49.48
27.73
995.53
20.00
36.48
30.26
929.06
21
Reliance
SCHEDULE ‘C’
SECURED LOANS
A) DEBENTURES:
As at
31st March, 1991
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
i)
13.5% Convertible Secured Debentures of Rs.150 each fully paid (Series ‘E’)
Less: Converted
*
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)
80.00
26.67
53.33
*
270.00
12.42
257.58
*
80.00
26.67
53.33
270.00
3.33
266.67
*
Includes debentures of face value of
(Rs.35,000) held by Directors
iii)
14% Non-Convertible Secured Redeemable Debentures of Rs.100 each fully
paid
155.00
80.00
465.91
400.00
45.19
––
45.19
116.23
27.48
143.71
59.14
0.37
59.51
95.53
19.16
114.69
3.10
4.11
192.00
178.31
261.30
300.80
19.92
939.13
24.48
903.59
B) TERM LOANS
1.
From Banks
a)
Foreign Currency Loans
b) Rupee Loans
2.
From Financial Institutions
a)
Foreign Currency Loans
b) Rupee Loans
3.
From Others:
Housing Development Finance
Corporation Ltd.
C) WORKING CAPITAL LOANS
From Banks
D) WORKING CAPITAL TERM LOANS
From Banks
22
Reliance
SCHEDULE ‘C’ (Contd.)
NOTES:
Of the above:
1.
(a) Debentures referred in A(ii), Term Loans referred in B save and except B(1)(a) to the extent of Rs.14.17 crores and B(3) are secured by
mor tgage of deposit of title deeds of the proper ties 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/to be secured by legal mor tgage in English form on the properties situated at Naroda, Distr ict
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 by hypothecation on the moveable properties situated at Patalganga, District Raigad in the state of Maharashtra.
The Debentures aggregating to Rs.80 crores, are redeemable at a premium of 5% 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.
The Debentures aggregating to Rs.75 crores issued during the year are to be redeemed at a premium of 5% on the face value of the
Debentures between 6th year and the 8th year from the date of allotment in equal instalments. The redemption of these debentures
will commence from 1997.
2.
(a) Debentures referred in A(i) are secured by a legal mor tgage in English form on the proper ties situated at Naroda, District Ahmedabad
in the state of Gujarat. These Debentures along with Cumulative interest payable on the Debentures referred to in A(ii) shall rank
subsequent to the charges created/to be 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
3.
(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 buy-back at par the said Debentures provided:
(i)
the face value of the total holdings of the debentureholder in each case does not exceed Rs.40,000 and
(ii) the debentureholder has held the debentures for a period of not less than one year on the date of his offer.
(c) The Company can re-issue at par such bought back Debentures.
(d) The Company received request for buy-back of Debentures after the end of the financial year of an aggregate nominal value of
Rs.0.92 crores till date (Since paid Rs.0.21 crores).
(i) Term Loan referred in B(1)(a) to the extent of Rs.6.44 crores are secured exclusively by hypothecation of specific items of plant
4.
and machinery situated at Naroda and Patalganga.
(ii) Term Loans referred in B(1)(a) to the extent of Rs.7.73 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.
(iii) Term Loans referred in B(1)(a) secured/to be secured against the fixed Assets referred to in pare (1) (a) above, exclude Rs.6.50
crores availed for MEG project which is being implemented by Reliance Petrochemicals Limited and is accordingly transferred
to them.
5. The Ter m Loans referred in B(2)(a) include an amount o Rs.26.51 crores for acquiring Building Ethylene Carriers which are, inter alia,
secured/to be secured additionally by:
(a) A first mortgage on the said Ethylene Carr iers;
(b) A mortgage/charge on all moveable proper ties of the Company, both present and future, pari passu with other lenders, subject to
prior charges to be created in favour of the Company’s Bankers for borrowings for wor king capital requirements.
(c) Hypothecation over its receivables and other current assets ranking after the charge in favour of Commercial Banks for the pur pose
of wor king capital.
6. Term Loans referred in B(3) are secured/to be secured by mor tgage by deposit of title deeds of specified residential quarters situated
at Panvel and Mohapada, Distr ict Raigad in the state of Maharashtra.
7. The charges created/to be created on the Debentures and Term Loans referred to in A and B above rank par i passu, interse, 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(i)(a) to the extent of Rs.6.44 crores, and B(3).
(i) Wor king Capital Loans from Banks referred to in “C” are secured against hypothecation of present and future stock of raw materials,
8.
stock-in-process, spares and stores, book debts, outstanding monies and receivable claims, trust receipts etc.
(ii) Wor king Capital Term Loan from Banks referred to in “D” are to be secured against hypothecation of present and future stock of raw
mater ials, 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.48.82 crores repayable within one year excluding monies payable on surrender of debentures under buy-
back scheme as mentioned in 3(b) above.
23
Reliance
SCHEDULE ‘D’
UNSECURED LOANS
Fixed Deposits
(including Cash Certificates of Rs.6.90 crores)
Short Term Loans from:
i)
ii)
Financial Institutions
Banks
Interest free Loans under Sales-tax
deferral 1983 scheme
* Includes Rs.72.95 crores repayable within one year
As at
31st March, 1991
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
62.30
176.02
––
49.04
3.00
16.00
49.04
51.05
162.39
*
19.00
17.58
212.60
SCHEDULE ‘E’
FIXED ASSETS
GROSS BLOCK (AT COST)
DEPRECIATION
NET BLOCK
(Rs. in crores)
Nature of
Fixed Assets
As at 1.4.90
Rs.
Additions
Rs.
Deductions
Rs.
As at 31.3.91 Total upto 31.3.91
Rs.
Rs.
As at 31.3.91
Rs.
As at 31.3.90
Rs.
Goodwill
Leasehold Land
Freehold Land
Buildings
Plant & Machinery
Electric Installation
Factory Equipments
Furniture & Fixtures
Vehicles
Capital Expenditure
pending allocation
Ships under Commissioning/
Construction
Sub-Total
Advance against
Capital Expenditure
Total
Previous Year
1.23
4.85
0.11
99.05
1,718.79
46.47
7.02
23.85
4.22
56.15
––
1,961.74
37.05
1,998.79
1,871.76
––
––
––
29.90
54.80
2.34
0.15
1.71
1.66
119.54
44.53
254.63
0.94
255.57
268.75
––
––
––
0.64
0.76
0.03
0.01
0.16
0.18
1.23
4.85
0.11
128.31
1,772.83
48.78
7.16
25.40
5.70
29.64
146.05
––
44.53
––
––
––
12.99
673.37
8.82
2.16
5.52
0.99
––
––
1.23
4.85
0.11
115.32
1,099.46
39.96
5.00
19.88
4.71
1.23
4.85
0.11
88.52
1,213.22
39.57
5.21
19.57
3.53
146.06
56.15
44.53
––
31.42
2,184.95
703.85
1,481.10
1,431.96
36.52
67.94
141.72
1.47
2,186.42
1,998.79
––
703.85
529.78
1.47
1,482.57
1,469.01
37.05
1,469.01
––
NOTES:
(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.6.07 Crores (ii) Cost of ownership premises in Cooperative Housing Societies Rs.1.11 Crores.
(c) Plant and Machinery includes Rs.62.54 Crores under installation.
(d) Electric installation includes Rs.10.96 Crores under installation.
(e) Furniture & Fixtures includes Rs.0.30 Crore being work-in-progress
(f) Capital Expenditure pending allocation consist of:
Rs.107.33 Crores on account of pre-operative expenses (Previous year Rs.20.60 Crores) as per note no. 16 of Schedule ‘N’.
i)
ii) Rs.38.72 Crores on account of cost of construction materials at site (Previous year Rs.35.56 Crores)
24
SCHEDULE ‘F’
INVESTMENTS (At Cost)
GOVERNMENT AND OTHER SECURITIES
Unquoted
Reliance
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
As at
31st March, 1991
Rs.
Rs.
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 Co operative 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
4400 Equity Shares of Trishna Investments and Leasings Ltd. of Rs.10
each, fully paid up (Rs.44000) (Previous year Rs.44000)
2017000 Equity Shares of Reliance Europe Limited of Sterling Pound 1 each
fully paid
Quoted: Other Subsidiary
57600000 Equity Shares of Reliance Petrochemicals Ltd. of Rs.10 each fully
paid up
OTHER INVESTMENTS
Quoted
––
––
––
––
––
0.21
––
7.00
7.21
––
––
––
––
––
––
––
0.21
––
––
0.21
57.60
57.60
64.81
57.81
7530 Equity Shares of Housing Development Finance Corporation
Ltd. of Rs.100 each, fully paid up
5622 Equity Shares of The Industrial Credit and Investment Corporation
of India Ltd. of Rs.100 each, fully paid up
1800000 Equity Shares of Reliance Capital & Finance Trust Ltd. of Rs.10
each fully paid up
49800 Equity Shares of Hindustan Oil Exploration Co. Ltd. Rs.10 each
fully paid up
0.08
0.06
1.80
0.05
0.08
0.06
––
0.05
Unquoted
1000 Equity Shares of Air Control & Chemicals Engineering Co. Ltd. of
Rs.100each, fully paid
IN DEBENTUPES - Quoted
624 Fully Convertible Debentures of Industrial Credit & Investment
Corporation of India Ltd. of Rs.650 each, fully paid up
IN UNITS - Unquoted
1800000 Units of Unit Trust of India
AGGREGATE VALUE OF
Quoted Investments
Unquoted Investments
1.99
0.01
0.04
2.68
69.53
0.19
0.01
0.04
––
58.05
As at
31st March, 1991
Market
Value
226.68
––
Book
Value
59.63
9.90
As at
31st March, 1990
Book
Value
57.83
0.22
Market
Value
164.58
––
25
Reliance
SCHEDULE ‘G’
CURRENT ASSETS
INVENTORIES (at cost or market value
whichever is lower except otherwise stated)
(Certified and valued by the Management)
Stores, spares, dyes, chemicals, etc.
Raw materials
Stock-in-transit
Stock-in-process
Finished goods
Others
SUNDRY DEBTORS
Over six Months:
Considered good
Considered doubtful
Less: Provision for doubtful debts
Others considered good
CASH AND BANK BALANCES
Cash on hand
Balance with Scheduled Banks In Current Accounts
In Fixed Deposit Accounts
Balance in Current Account with Barclays Bank PLC U.K. Rs. NIL (Previous
year Rs.13,336) (Maximum balance during the year Rs.0.04 crore)
As at
31st March, 1991
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1990
Rs.
Rs.
79.34
91.07
––
93.93
145.42
1.75
29.01
4.66
33.67
4.66
29.01
298.30
*
0.23
40.01
0.24
––
98.88
62.19
8.04
89.75
117.15
1.55
411.51
377.56
30.80
4.66
35.46
4.66
30.80
274.10
327.31
304.90
0.42
15.85
0.26
––
40.44
779.26
16.53
698.99
* includes Rs.2.01 crores and Rs.14.46 Crores due from Devti Fabrics Ltd. and Reliance Europe Ltd. respectively (subsidiary
companies) and Rs.58.59 crores on account of Bills of Exchange
SCHEDULE ‘H’
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 year Rs.1.75 crores)
(Refer Note No.14)
Trishna Investments and Leasings Ltd.
(Maximum debit balance at any time during the year Rs.148.29 crores)
(Refer Note No.14)
ii)
iii) Reliance Petrochemicals Limited
(Maximum debit balance at any time during the year Rs.100.00 crores)
Advances recoverable in cash or in kind or for value to be received
Deposits
Balance with Customs, Central Excise Authorities, etc.
As at
31st March, 1991
Rs.
Rs.
As at
31st March, 1990
Rs.
Rs.
1.75
148.29
100.00
1.75
148.29
50.00
250.04
79.23
45.59
6.10
*
380.96
200.04
97.82
24.65
4.76
327.27
*
Includes
Rs.0.18 crore from Officers (Previous year Rs.0.18 crore) Maximum balance at any time during the year Rs.0.18 crore.
26
SCHEDULE ‘I’
CURRENT LIABILITIES AND PROVISIONS
CURRENT LIABILITIES
Sundry Creditors
Unclaimed Dividends
Interest accrued but not due on loans
*
Includes for Capital Expenditure Rs.106.34 crores, Fixed Deposits matured butt
unclaimed Rs.1.35 crores, Acceptance of Rs.175.03 crores and Rs.19.86
crores of backward area incentive withdrawn (payable within one year Rs.5.67
crores).
+ includes interest of Rs.31.62 crores on Cumulative ‘F’ Series Debenture
payable on maturity and interest of Rs.4.39 crores on cumulative fixed deposit
payable on maturity.
PROVISIONS
Gratuity and Superannuation
Provision for Taxation
Proposed Dividend
SCHEDULES FORMING PART OF THE
PROFIT & LOSS ACCOUNT
SCHEDULE ‘J’
OTHER INCOME
Incentives, assistance and drawbacks on Exports received
Dividend (Tax at sources Rs.0 08 crore)
Miscellaneous Income
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
Others
Reliance
(Rs. in crores)
As at
31st March, 1991
Rs.
Rs.
As at
31st March, 1990
Rs.
Rs.
350.30
2.11
57.63
*
+
248.63
3.50
49.15
410.04
301 .28
0.81
––
46.50
0.37
2.00
46.50
47.31
457.35
48.87
350. 15
1990-1991
RS.
4.70
0.27
1.58
6.55
(Rs. in Crores)
1989-1990
Rs.
3.78
3.02
8.84
15.64
1990-1991
(Rs. in crores)
1989-1990
Rs.
Rs.
Rs.
Rs.
145.42
93.93
1.75
117.15
89.75
1.51
117.15
89.75
1.51
143.32
60.07
1.70
241.10
208.41
32.69
208.41
205.09
3.32
27
Reliance
SCHEDULE ‘L’
MANUFACTURING & OTHER EXPENSES
RAW MATERIALS CONSUMED
Stock at commencement
Add: Purchases
Less: Stock at close
MANUFACTURING EXPENSES
Stores & spare parts
Dyes & Chemicals
Electric Power, fuel and water
Machinery repairs
Building repairs
Labour, Processing and machinery 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
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.0.13 crore for Directors)
Payment to Auditors
General Expenses
Provision for doubtful recoveries
Loss on sale of Assets
SCHEDULE ‘M’
INTEREST
Debentures
Fixed Loans
Others (Net)
28
(Rs. in crores)
1990-1991
1989-1990
Rs.
Rs.
Rs.
Rs.
62.19
447.60
509.79
91.07
83.58
55.94
115.18
5.12
2.49
17.73
628.51
24.16
39.99
4.51
12.20
9.19
27.26
29.54
0.93
15.19
1.41
33.91
13.05
2.54
1.12
4.41
3.16
0.29
42.70
––
0.04
418.72
537.19
68.43
530.95
599.38
62.19
33.79
52.95
105.47
9.93
1.82
14.96
445 02
24.24
932.71
688.18
31.37
3.94
8.56
11.87
19.30
24.84
2.81
14.30
2.25
19.73
9.38
0.80
0.12
3.45
2.60
0.29
31.68
1.75
0.07
43.87
95.10
50.14
1414.48
(Rs. in crores)
1989-1990
Rs.
60.42
45.39
65.92
171.73
56.70
117.43
67.31
1592.87
1990-1991
Rs.
61.20
36.63
89.22
187.05
Reliance
SCHEDULE ‘N’
NOTES AND CONTINGENT LIABILITIES
1.
2.
3.
4.
5.
6.
The previous 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.
(a) 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 including waste of POY/PSF.
(b) The Company has accounted for export incentives on cash basis which in the past were accounted on accrual basis.
Consequently, profit for the year is lower by Rs.0.85 crores.
Sales is inclusive of Rs.12.28 crores being the recovery of Sales Tax.
Interest - Others(Net)’ is arrived at after deducting Rs. 0.59 crores (Tax at source Rs. 0.07crore) being interest received/
receivable.
Income and Expenditure amounting to Rs.2.18 crores and Rs.7.76 crores respectively relates to the previous year.
7.
(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 (Rs.37335)
(ii) Cost Auditor
1990-1991
Rs.
0.17
0.07
(Rs. in crores)
1989-1990
Rs.
0.17
0.07
0.05
––
0.29
0.04
0.01
0.29
Audit Fees (Rs.50,000) (Previous year Rs. Nil)
––
(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
Contribution to Provident Fund and Superannuation Fund
i)
ii)
iii) Provision for Gratuity (as per actuarial valuation) (Rs. 35000) (Previous year Rs.47200)
iv) Perquisites
(Rs. in crores)
1989-1990
Rs.
0.07
0.02
––
0.03
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.41.27 crores in respect of such item 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 availed to acquire plant and machinery at the exchange rates
1990-1991
Rs.
0.08
0.02
––
0.03
8.
9.
10.
prevailing on relevant dates.
(b) No effect has been given in the accounts to the increased liability of Rs.62.27 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 the cost of rollover charges on forward contracts to respective fixed assets and depreciation
thereon has accordingly been provided for in the accounts.
11. The Income-tax assessments of the Company have been completed upto Assessment Year 1988-89. The total demands raised
by the Income Tax Department upto the said assessment years are Rs.21.36 crores which are disputed. Based on the decisions
of the First Appellate Authorities and other relevant provisions, the Company has been advised that the liability would not
exceed Rs.12.58 crores. Accordingly, a provision for Rs.12.58 crores has been made in this respect in the accounts.
The Company has been advised that no provision for taxation is necessary for the current financial year in view of various
unabsorbed past reliefs and that the taxation reserve created in the past amounting to Rs.10 crores would be adequate enough
to meet the liabilities, if any, in respect of pending assessments.
12. Guidelines dated 14th January, 1987 of the Government of 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
29
Reliance
date of the said notification, the Company has transferred Rs.16.00 crores during the financial year to the Debenture Redemption
Reserve.
14.
13. 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.
(a) 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., respectively, the 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.2.01
crores from Devti Fabrics Limited, and guarantees to Banks and Financial Institutions of Rs.6.00 crores aggregate to
Rs.158.05 crores. The losses of these companies exceed their paid up capital and reserves on 31st March, 1991. 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.
(b) The Company has issued guarantees to banks and financial institutions aggregating to Rs.217 crores in respect of credit
facilities extended to Reliance Petrochemicals Limited, a subsidiary company.
15. The Company had received Demand Notices aggregating to Rs.15.40 crores being alleged differential stamp duty payable
under Bombay Stamp Act in respect of debenture trust deeds executed in the State of Gujarat. The Matter is pending in the
Bombay High Court. The Honourable High Court at Bombay has granted a stay of enforcement of these demands. The Company
has been advised that there will be no liability in this regard and accordingly no provision has been made in this respect in the
Accounts.
16. Pre-Operative expenses in respect of Projects upto 31st March, 1991 to be capitalised.
Transportation
Lease Expenses
Insurance
Travelling Expenses
General Expenses
Interest:
Fixed loans
Others (Net)
Capitalised by allocating to Building and Plant & Machinery
The above items are not forming part of profit and loss account.
* Includes Rs.28.88 crores for acquisition of import licences.
17. CONTINGENT LIABILITIES
(a) Estimated amount of contracts remaining to be executed on capital account and not pro
vided for
(b) Outstanding guarantees furnished to Banks and Financial Institutions including in respect
of Letters of Credit opened by Bankers
(c) Liability in respect of Bills discounted with Bankers
(d) Bonds executed in favour of Excise and Custom Authorities
(e) Uncalled liability on partly paid shares (Rs. 16,875)
(Previous year Rs.16,875)
(f) Claims against the company/disputed liabilities not acknowledged as debts including
Rs.3.88 crores for excise duty
(Previous year Rs.3.57 crores)
30
1990-1991
Rs.
0.28
8.71
0.92
0.09
67.34
*
Upto
31.3.90
Rs.
––
––
0.66
0.07
17.00
(Rs. in crores)
Total upto
31.3.1991
Rs.
0.28
8.71
1.58
0.16
84.34
5 94
5.40
88.68
––
2.87
20.60
5.94
8.27
109.28
1.95
107.33
(Rs. in crores)
1990-91
Rs.
1989-90
Rs.
216.24
89.10
342.93
304.59
32.30
––
2.71
19.28
––
––
9.11
7.78
Reliance
(9) Export bills discounted against irrevocable
Letters of Credit
(h)
Indemnities towards export obligations against capital goods import
0.93
0.67
0.01
0.67
(i) Guarantee to Banks and Financial Institutions against credit facilities extended to third
parties excluding Reliance Petrochemicals Limited.
38.25
6.00
(j)
Import Duty on Raw Materials/Chemicals & catalysts imported under Advance Licences
against fulfilment of export obligations.
38.86
62.29
18. 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
(Spindles)
(Looms)
(Knitting M/c.)
(d) Man-made Fabrics
(e) Purified Terepthalic Acid
Linear Alkyl Benzene
(f)
(9) Synthetic Filament Yarn including Industrial
Yarn/Tyre Cord
(h) Ethylene
(i) Propylene
(j) Butadiene & Other C4s
(k) Acrylic Fibre
(l) Polypropylene
(m) Styrene
(n) Polystyrene
(o) Styrene Butadiene Rubber
(p)
(q) Acrylonitrile
(r)
Butyl Rubber
(s) Export Oriented Unit
(i) Para-xylene
(ii) Purified Terephthalic Acid
Linear low Density Polyethylene
Unit
M.T.
M.T.
Nos.
Nos.
Nos.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
Licensed CapacityInstalled Capacity
1990-1991
32,300
60,000
A
@
1989-1990
32,300
60,000
1990-1991
25,125
45,000
++
1989-1990
25,125
45,000
++
20,000
450
22
200,000
80,000
@
@
2,000*
320,000*
155,000*
98,000*
20,000*
100,000*
80,000*
40,000*
100,000*
100,000*
70,000*
25,000*
270,000*
200,000*
@
20,000
450
22
200,000
80,000
2,000*
320,000*
155,000*
98,000*
20,000*
100,000*
80,000*
40,000*
80,000*
100,000*
70,000*
25,000*
270,000*
200,000*
a
12,494
450
20
1,00,000
60,000
B
12,494
450
20
1,00,000
60,000
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
––
On the basis of Letter of Intent received
*
+ + Based on average Denier of 40
@ Approved under MES
A
Installed Capacity based on Certificate of
the Management.
Subject to automatic re-endorsement of
capacity. Further 15,000 tonnes p.a. has
been approved under applicable broad
banding scheme.
B MES capacity of 200,000 M.T. p.a. of PTA
under implementation.
19. PRODUCTION OF FINISHED PRODUCTS MEANT FOR SALE
Yarn (Polyester & Blended etc.)
Polyester Chips
Fabrics
Polyester Staple Fibre
P.T.A.
L.A.B.
Paraxylene
By-Products
(Rs. in crores)
Unit
M.T.
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
M.T.
M.T.
1990-1991
67,653
13,739
505.81
48,485
58,576
66,950
3,400
32,967
20. 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
19901991
Rs.
167.77
23.66
13.65
1989-1990
61,189
5,239
492.03
53,120
39,308
48,394
10,402
31,456
1989-1990
Rs.
147.43
43.29
0.03
31
Reliance
21. 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
Technical know-how & Engineering Fees
1990 1991
Rs.
20.05
2.57
18.53
3.00
(Rs. in crores)
1989-1990
Rs.
23.88
2.26
13.24
9.56
22. QUANTITATIVE INFORMATION IN RESPECT OF OPENING STOCK, CLOSING STOCK, PURCHASES, SALES AND
CONSUMPTION OF RAW MATERIALS
(a) Opening Stock
i)
i)
Finished Stocks
Yarn
Fabrics
Polyester Staple Fibre
Polyester Chips
L.A.B.
Paraxylene
Stock-in-process
ii)
iii) Others
(b) Closing Stock:
Finished Stocks
Yarn
Fabrics
Polyester Staple Fibre
Polyster Chips
L.A.B.
Paraxylene
PTA
Stock-in-process
ii)
iii) Others
(c) Purchases
Yarn
Fabrics
Fibre
PTA
(d) Sales
Yarn (Polyester & Blended)
Fabrics
Polyester Staple Fibre
Polyester Chips
P.T.A.
L.A.B.
Paraxylene
Others
Unit
Quantity
Rs.
Quantity
Rs.
1990 1991
(Rs in crores)
1989-1990
117.15
143.32
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
M.T
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
Mtrs. in lacs
M.T.
M.T.
M.T.
M .T.
M.T.
3524
6415
8410
1234
4414
1595
7645
65.24
6583
2371
6873
161
163
3970
––
––
1000
66692
506.60
52813
11149
48908
64142
3697
––
89.75
1.51
145.42
93.93
1.75
57.69
1138.49
247.94
274.54
56.22
175.29
166.34
7.72
31.30
2098.34
4675
85.70
5362
3408
6009
––
3524
64.15
8410
1234
4414
1595
––
1013
1.50
41
––
63566
507.59
50288
7463
44146
49895
8807
––
60.07
1.70
117.15
89.75
1.51
20.94
1019.90
230.73
238.24
36.49
130.34
129.85
18.51
36.60
1840.66
(e) Raw Material consumed
Naptha
Paraxylene (including own production
during trial run)
PTA
M.E.G.
Fibre
Yarn
Fabrics (Grey)
N. Paraffin
Benzene
Others
M.T.
168091
69.67
178523
79.09
M.T.
M.T.
M.T.
M.T.
M.T.
Mtrs. in lacs
M.T.
M.T.
__
21370
45317
1531
2790
151.56
61398
25493
––
––
65.63
74.57
12.57
31.76
25.02
103.05
22.04
14.41
418.72
4677
25017
41705
1774
5986
126.05
44368
18719
––
13.64
43.21
141.60
17.38
121.89
18.42
58.60
15.48
27.88
537.19
32
23. VALUE OF RAW MATERIALS CONSUMED
Imported
Indigenous
1990-1991
1989-1990
Rs. in crores
119.76
298.96
% of total
Consumption
28.60
71.40
418.72
*
100.00
Rs. in crores
216.93
320.26
537.19
% of total
Consumption
40.38
59.62
100.00
* Includes import duty of Rs.118.60 crores (previous year Rs.129.10 crores)
24. VALUE OF DYES CHEMICALS, CATALYSTS, STORES AND SPARE PARTS CONSUMED
Reliance
Consumption Consumption
Imported
Indigenous
25. EARNINGS IN FOREIGN EXCHANGE
Export of goods on FOB basis
1990-1991
1989-1990
Rs. in crores
% of total
Rs. in crores
% of total
60.38
79.14.
139.52
43.28
56.72
100.00
41.77
44.97
86.74
48.16
51.84
100.00
1990-1991
Rs.
55.95
1990-1991
Rs.
(Rs. in crores)
1989-1990
Rs.
72.75
(Rs. in crores)
1989-1990
Rs.
26. 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
Interim dividend
(b) Number of Equity Shares held by
them
Interim dividend
(c) Amount of dividend paid (Gross)
Tax at source Rs.0.54 crore
(Previous year Rs.0.59 crore)
Interim dividend
Year to which dividend relates
21,102
11,789,082
22,152
12,997,292
3.54
1988-90
3.90
1988-89
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
For and on behalf of the Board
D.H. Ambani
Chairman & Managing Director
R.J. Shah
Proprietor
D. Chaturvedi
Partner
J.R. Shah
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
Directors
Executive Directors
Bombay
Dated: 28th June, 1991.
V.M. Ambani
Secretary
33
Reliance
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO COMPANY’S INTEREST IN
THE SUBSIDIARY COMPANIES
Devti Fabrics Ltd.
Reliance Petrochemicals Trishna Investments
Limited
and Leasings Limited
Reliance Europe Limited
1. The Financial Year of the Subsidiary 31st March, 1991
31st March, 1991
31st March, 1991
31st March, 1991
companies ended on
2. Date from which they become
subsidiary companies
30th September, 1985
11th January, 1988
30th December, 1988
14th August, 1990
3. a. No. of shares held by Reliance
2,10,070 Equity
Industries Limited (holding com- Shares of the face
pany) with its nominees in the
subsidiaries at the end of the
financial year of the subsidiary
companies.
value of Rs.10 each
fully paid-up.
5,76,00,000 Equity
Shares of the face value
of Rs.10 each fully
paid-up.
4,400 Equity Shares of
the face value of Rs.10
each fully paid-up.
20,17,000 Equity Shares
of the face value of Stg.
Pnd. 1 each fully paid.
100%
66%
100%
100%
b. Extent of interest of holding com-
pany at the end of the 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 in the holding com
pany’s accounts.
i. For the financial year ended
(Rs.20.77 Lakhs)
Rs. NIL
Rs.494.59Lakhs
US$19584
31st March, 1991.
ii. For the previous financial
(Rs.297.44 Lakhs)
Rs.25 Lakh
(Rs.760.77 Lakhs)
––
years of the subsidiary com
panies since they became the
holding company’s sub
sidiaries.
b. Dealt with in holding company’s
accounts:
i. For the financial year ended
31st March, 1991.
ii. For the previous financial
NIL
NIL
years of the subsidiary com
panies since they became the
holding company’s sub
sidiaries
NIL
NIL
NIL
NIL
NIL
NIL
For and on behalf of the Board
D.H. Ambani
Chairman & Managing Director
J.R. Shah
B.D. Shah
S.S. Betrabet
N.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
Directors
Executive Directors
V.M. Ambani
Secretary
Bombay
Dated: 28th June, 1991.
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 Third Annual Report, together with the audited
Statement of Accounts, for the year ended 31st March, 1991.
1.
FINANCIAL RESULTS:
During the year under review, your Company’s Petrochemical
Complex was in various stages of construction. As on 31st March,
1991, your Company has incurred an expenditure of Rs.1092.76
Crores.
Since your Company’s projects were in the construction stage, no
Profit and Loss Account for the year 1990-91 has been prepared,
there being no revenue operations. A Statement of net pre-operative
expenditure has been presented. In the absence of revenue profit
during the year, your Directors do not propose payment of any
dividend for the year under review.
2. REPORT ON PROJECT IMPLEMENTATION:
Your Company has achieved substantial progress in implementation
of projects, during the year under review.
The plant for manufacture of Mono Ethylene Glycol (MEG) has been
mechanically completed and will start trial runs by end July, 1991.
The plants for manufacture of Poly Vinyl Chloride (PVC) and High
Density Poly Ethylene (HDPE) will star t trial runs, phasewise during
the current financial year.
The Captive Gas-based Co-generation Plant has been
commissioned and steam production and power generation for
captive use have commenced in July, 1991.
You will be glad to note that the Jetty and Terminal have become
operational. Your Company has adopted a unique method of
transporting Ethylene, known as lightering. In this method, Ethylene
is lightered, first on the high seas from a large ship to a small ship
(known as a lighter) and then from the small ship to the Terminal via
the Jetty.
Your Company has the distinction of being the first in this country to
carry out such an operation.
Utilities required for the Projects such as Raw Water, DM Water,
Cooling Water, Fire Fighting System, Fuel Gas System, Effluent
Treatment System, etc. have been commissioned.
The Plant operation and Maintenance personnel have completed
intensive training and are now ready to take over the operations
from the expatriate workforce of the collaborators. All the necessary
infrastructure for the complex has been provided.
You will be pleased to note that the Government of India has
endorsed the licence for manufacturing HDPE from 100,000 tonnes
per annum (tpa), (as reported in the Second Annual Report) to
160,000 tonnes per annum, under the policy of Minimum Economic
Size. While endorsing the licence as aforesaid, your Company has
also been permitted to manufacture LLDPE, alongwith HDPE.
As reported in the Second Annual Report, the licensed capacity of
MEG has been increased from 60,000 tpa to 100,000 tpa. The
licensed capacity of PVC has remained unchanged at 100,000 tpa.
The implementation schedule of the projects had to be adjusted
mainly due to the necessity of carrying out additions/modifications
to the process plants and also due to the necessity for seeking
fresh consents from several authorities to cater to the enhanced
capacities.
Secondly, the Gulf crisis and the outbreak of war resulted in delayed
receipt of imported equipments and the entire process of obtaining
import licences was delayed. since our country was passing through
a severe foreign exchange crisis.
Your Directors are pleased to inform you that your Company has
successfully overcome these constr aints and is speedily
implementing the projects.
3.
PROJECT FINANCE:
As stated in the Second Annual Report, the Financial Institutions, led
by ICICI, have appraised the revised project costs. Based on this
appraisal, ICICI, alongwith other Financial/Investment Institutions, has
sanctioned rupee term loans of Rs. 210 crores. Besides, your Company
has also obtained leasing assistance of about Rs. 122 crores and
Deferred Payment Guarantee facility of Rs. 35 crores.
Your Company has negotiated further financial assistance in the form
of leasing deferred payment guarantee facility, etc. from Institutions
and Banks for speedily implementing the existing projects.
4. CONVERTIBLE DEBENTURES AND FURTHER ISSUE OF EQUITY
SHARES:
Your Company had issued 12.5% Fully Convertible Secured
Debentures, consisting of Par t ‘A’ of Rs.10/- each, Part ‘B’ of Rs.40/-
each and Part ‘C’ of Rs. 150/-each, aggregating Rs. 593.40 crores.
In terms of the Prospectus dated 27th July, 1988, Part ‘A’ was
converted on 27th October, 1988 and Par t ‘B’ is due for conversion
between three years and four years from the date of allotment (i.e.
between 27th October, 1991 and 27th October, 1992) and Part ‘C’ is
due for conversion between five years and seven years from the
date of allotment (i.e. between 27th October, 1993 and 27th October,
1995). The Prospectus also gave the Board of Directors of the
Company the flexibility to advance the conversion dates of either or
both parts of the Debentures without the further consent of the
Debentureholders.
As stated earlier in this Report, the Financial Institutions have granted
term loans and also provided equipment leasing assistance and
deferred payment guarantee facilities.
While sanctioning the term loans, ICICI, as the lead Institution, had
stipulated that your Company should convert Part ‘B’ on 31st March,
1991. However, on the basis of further discussions, it was found
desirable that Par t ‘B’ should be converted on 27th October, 1991,
i.e. the earliest date of conversion in terms of the Prospectus, or
such other date as may be permitted by the Controller of Capital
Issues (CCI).
Further, your Directors proposed that since conversion of Part ‘B’
was being synchronized with start up of the MEG plant and
phasewise commissioning of the PVC and HDPE plants, the benefits
arising out of commencement of commercial operations should also
be available to the holders of Part ‘C’. ICICI, as lead Institution, has
agreed to your Company’s proposal for preponing the conversion
date of Part ‘C’ simultaneously with the conversion of Part ‘B’, subject
to the consent of CCI.
Your Directors consider that early conversion of Debentures would
also benefit your Company, since conversion would bring down the
debt:equity ratio to levels acceptable to the Financial Institutions’
thus enabling your Company to seek further financial assistance for
speedily implementing the existing as well as future projects.
Your Directors are confident that your Company would be able to
adequately service the enlarged capital, barring unforeseen
circumstances, once all the three projects commence commercial
production during the current year.
It may be pertinent to note that on conversion of the Debentures,
your Company would cease to be a subsidiary of Reliance Industries
Limited.
You may recall that in terms of the Prospectus, RIL had invested
Rs.57.60 crores by way of Equity Shares. RIL had also placed an
interest-free unsecured loan of Rs.50 crores, which is to be converted
into equity’ at par, on 27th October, 1991.
37
Wherever similar plants/facilities exist in India, training was arranged
indigenously to save foreign exchange. Continuous flow of
information on latest developments/improvement in technology has
been established and our engineers have participated alongwith
Process Licensor’s Specialists during engineering reviews and
inspection of critical equipments.
C.
FOREIGN EXCHANGE EARNINGS AND OUTGO:
Total Foreign Exchange used and
earned:
a)
b)
Total Foreign Exchange used
Total Foreign Exchange earned
(Rs. in Crores)
1990-91
1989-90
179.14
––
87.69
––
It would be pertinent to note that the products to be manufactured
by your Company are import substitution products, which would save
for the Country, Foreign Exchange (Net) of the equivalent of around
Rs.300 crores per annum (at current international prices) when the
plants operate at full rated capacity.
1 0. 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 services 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: 24th July, 1991.
Additionally, as per ICICl’s directives, RIL has brought in a further
amount of Rs.50 crores as interest-free unsecured loan, to be
conver ted, at par, subject to approval of the shareholders and the
consent of the CCI.
5.
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.
6.
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.
7. DIRECTORS:
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 D.H. Ambani and Shri Y.P Trivedi retire by rotation
and, being eligible, offer themselves for re-appointment.
Shri S. Ramaswamy, a Director of the Company, resigned from the
Board. Shri G. Chidambar was appointed as Additional Director. Shri
G. Chidambar was the Managing Director of Life Insurance
Corporation of India until his recent retirement. Your Directors
consider that Shri G. Chidambar’s wide knowledge and experience
would be a valuable asset to your Company. Necessary resolution
has been incorporated in the Notice of the Meeting seeking members
approval for appointing Shri G. Chidambar as a Director retiring by
rotation.
Shri Duleep Singh, designated as President (Hazira Site), was
appointed as a Manager, under the Companies Act. Consequent
upon being entrusted with other responsibilities, he ceases to be a
Manager.
8. AUDITORS AND THEIR REPORT:
Messrs Chaturvedi & Shah and Messrs Rajendra & Co., Auditors of
the Company, hold office until conclusion of the ensuing Annual
General Meeting and are recommended for re-appointment. The
Company has received Certificates from these Auditors to the effect
that their re-appointment, if made, would be within the prescribed
limits under Section 224(1 B) of the Companies Act, 1956.
9.
In terms of Section 217(1 ) of 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:
For effective absorption of Technology and commissioning of the
Complex, all key operating personnel in MEG, PVC and HDPE plants
have undergone extensive training in Process licensors’ and/or other
Licencees’s plants Abroad.
38
39
AUDITORS’ REPORT
To
The Members of Reliance Petrochemicals Limited
We have audited the attached Balance Sheet of RELIANCE
PETROCHEMICALS LIMITED as at 31st March, 1991. 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’
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.
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.
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.
(b)
2.
(c) The Balance Sheet referred to in this Report is in agreement
(d)
with the books of account.
(i) As shown in Note Nos. 6 & 7 of Schedule ‘M’, funds
deployed under Por tfolio Management Schemes (a) with
a Scheduled Bank have been shown as part of Bank
balances and (b) with a Non-banking Financial Company
have been shown under the head ‘Investments’. Income
earned from both has been included as part of “Other
Income”.
(ii) As mentioned in Note No.5 of Schedule ‘M’ interest on
unpaid calls continues to be accounted for as and when
received.
(e) Subject to d (ii) 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, 1 956, in the
manner so required and gives a true and fair view of the state
of affairs of the Company as at 31st March, 1991.
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
D. Chaturvedi
Partner
Bombay
Dated: 28th June, 1991
R.J. Shah
Proprietor
ANNEXURE TO AUDITORS’ REPORT
Re: Reliance Petrochemicals Limited
Referred to in para (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 curing the year.
In our opinion the frequency of such verification 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
interest free loans from the holding company), from companies,
40
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 (1 B) of
the Companies Act, 1956. The terms and conditions of the above
loans are not in our opinion prima facie prejudicial to the interest of
the Company.
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 (1
B) 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 internal control procedures (commensurate
with the size of the Company and the nature of its business) with
regard to the purchases of raw materials, components, plant and
machinery, 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 arrangements required to tee entered in the Register
maintained under Section 301 of the Companies Act, 1956.
The Company has not accepted any deposits 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.
In our opinion, the Company has an Internal Audit System
commensurate with its size and the nature of its business.
4.
5.
6.
7.
8.
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, 1991 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
having commenced pares 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: 28th June, 1991
R.J. Shah
Proprietor
RELIANCE PETROCHEMICALS LIMITED
BALANCE SHEET AS AT 31st MARCH, 1991
As at
31.03.1991
(Rs. in crores)
As at
31.03.1990
Schedule
Rs.
Rs.
Rs.
Rs.
SOURCES OF FUNDS:
Shareholders’ Funds
Share Capital
Reserves and Surplus
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
Inventories
Cash and Bank Balances
Loans and Advances
Less:
Current Liabilities and Provisions
Current Liabilities
Provisions
Net Current Assets
Miscellaneous Expenditure
Preliminary Expenses
(to the extent not written off or adjusted)
TOTAL
Notes and Contingent Liabilities
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘G’
‘H’
‘I’
‘J’
‘K’
‘L’
‘M’
87.74
976.17
1063.91
87.24
0.50
876.00
100.17
33.79
17.90
15.89
873.02
87.23
0.52
670.78
50.00
30.15
9.63
20.52
418.56
87.75
720.78
808.53
203.85
93.27
1092.76
49.45
532.35
143.19
0.07
9.43
25.96
59.11
94.57
172.53
0.37
172.90
0.03
––
131.60
77.79
209.42
75.34
1.12
76.46
-78.33
132.96
0.03
1063.91
0.03
808.53
As per our Report of even date
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Partner
D. Chaturvedi
Proprietor
Bombay
Dated: 28th June, 1991.
For and on behalf of the Board
D.H. Ambani
M.D. Ambani
A.D. Ambani
A.S. Dayal
K.K. Pai
R. Rajagopalan
Y.P. Trivedi
C. Chandrasekhar
Chairman
Directors
J.S. Bakshi
President
B.S. Jaju
Bombay
Dated: 28th June, 1991.
Company Secretary
41
RELIANCE PETROCHEMICALS LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
AS AT 31 ST MARCH 1991
SCHEDULE ‘A’
SHARE CAPITAL
As at
31.03.1991
(Rs. In Crores)
As at
31.03.1990
Authorised:
10 00,00,000 Equity Shares of Rs. 10/- each
Issued and Subscribed:
8.72.70.000 Equity Shares of Rs. 10/- each fully
Rs.
Rs.
Rs.
Rs
100.00
100.00
called up
Less: Calls unpaid - by others
87.27
0.03
87.27
0.04
87.24
87.23
Of the above Equity Shares:
(i) 5,76,00,000 Shares are held by Reliance
(ii) 2.96,70,000 Shares were allotted at par on first
Industries Ltd.. the holding Company
conversion of Debentures
SCHEDULE ‘B’
RESERVES AND SURPLUS
General Reserve
As per last Balance Sheet
Profit and Loss Account
As per last Balance Sheet
Add: Excess provision of earlier year written
back
Less: Income Tax of Earlier Year
SCHEDULE ‘C’
SECURED LOANS
A. Debentures
As at
31.03.1991
As at
31.03.1990
Rs.
0.25
0.27
–
0.27
0.02
Rs.
0.25
0.25
0.50
Rs.
0.25
0.23
0.04
0.27
–
Rs.
0.25
0.27
0.52
As at
31.03.1991
As at
31.03.1990
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. Term Loans
i. From a Bank in Foreign Currencies
ii. From Financial Institutions in
Foreign Currencies
C. Deferred Payment Liabilities under Deferred
Payment Guarantee Scheme
D. Bridge Loan from financial Institutions
593.40
29.67
563.73
0.64
6.69
196.27
593.40
29.67
563.73
0.78
563.09
562.95
8.04
99.79
107.83
–
–
202.96
9.95
100.00
876.00
NOTES:
1. 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 a 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 mortgage created for item ‘B(ii)’ and hypothecation created in respect
of items `C’ and ‘D’ above and future mortgage/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.
2. 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, after 26th
October, 1991 but before 27th October, 1992 for Part B of the said Debenture, and after 26th
October, 1993 but before 27th October, 1995 for Part C of the said Debenture or any other
earlier date(s) as may be decided by the Board of Directors subject to necessary approvals.
(i) The ‘Term Loans’ referred to in ‘B (i)’ above represent foreign currency loan availed by
Reliance Industries Limited, the holding Company, for implementation of Mono Ethylene
Glycol Project. The company having taken over the project for execution, the said Loan,
which is secured against the fixed assets of Reliance Industries Limited has been taken
over by the company subject to necessary approvals.
3.
42
(ii) The Term Loans referred to in ‘B(ii)’ above are secured by first charge by way of
hypothecation of movable assets and first mortgage and charge on all the immovable
assets of the company both present and future.
(iii) The Bridge Loan referred to in ‘D’ above is secured by first charge by way of
hypothecation of movable assets ranking pari passu with the charge created by way of
hypothecation in respect of Term Loans referred to in ‘B(ii)’, and is guaranteed by
Reliance Industries Limited.
4. Deferred Payment Liabilities referred to in ‘C’ above are secured by first charge by way of
hypothecation of specific items of Machinery acquired under the Deferred Payment facility.
Term Loans and Deferred Payment Liabilities include Rs. 12.28 crores repayable within a
period of one year (Previous Year Rs. 2.91 crores).
5.
6. Debentures include Rs.0.05 crore held by Directors(Previous Year Rs.0.05 crore).
Schedule ‘D’
UNSECURED LOANS
From Reliance Industries Ltd., holding Company
From a Non-Banking Financial Company
As at
31.03.1991
Rs.
100.00
0.17
(Rs. in Crores)
As at
31.03.1990
Rs.
50.00
–
100.17
50.00
Note:
The loan from Reliance Industries Limited is free of interest. Out of this, Rs.50 crores shall be
converted into equity share capital, at par, on 27th October, 1991 in accordance with the consent
of Controller of Capital issues. The balance amount of loan of Rs.50 crores is proposed to be
converted into equity share capital, at par. subject to approval by the shareholders, on such
date(s),and as may be consented to by the Controller of Capital Issues.
SCHEDULE ‘E’
FIXED ASSETS
Nature of Assets
1.
2.
3.
4.
5.
6
Leasehold Land
Freehold Land
Buildings
Plant and Machinery
Furniture, Fixtures and
Other Equipments
Vehicles
Total
Previous Year
Rs.42249/-
Capital Work-in-Progress
Gross Block (at cost)
Depreciation
Net Block
(Rs. in Crores)
As at
01.04.1990
Rs.
2.82
––
5.46
18.11
3.03
0.73
30.15
23.01
Additions Deductions
Rs.
––
0.38
––
––
2.78
0.48
3.64
7.14
Rs.
––
––
––
––
––
––
––
––
As at
31.03.199
Rs.
2.82
0.38
5.46
18.11
Up to
31.03.1991
Rs.
––
––
0.19
17.21
As at
31.03.1991
Rs.
2.82
0.38
5.27
0.90
As at
31.03.1990
Rs.
2.82
––
5.36
8.69
5.81
1.21
33.79
30.15
0.41
0.09
17.90
9.63
5.40
1.12
15.89
20.52
2.95
0.70
20.52
873.02
418.56
Notes:
1. No amortization has been made in respect of lease premium paid for the Leasehold Land
2.
since grant of lease is for a long period.
Leasehold Land includes Rs. 1.64 crores (Previous Year Rs. 1.64 crores) in respect of
which necessary documents are yet to be executed.
3. Capital Work-in-Progress includes.
(i) Rs.65.19 crores on account of Advances against Capital Expenditure (Previous Year
Rs. 95.62 crores).
(ii) Rs.30.12 crores in respect of construction materials in stock (Previous Year Rs.36.35 crores).
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.
in respect of other assets, on straight line method at the rates prescribed by Schedule
XIV to the Companies Act, 1 956.
5.
Buildings include shares in co-operative housing societies of the face value of Rs.750
(Previous Year Rs. 750).
670.78
SCHEDULE ‘F’
SECURED LOANS
(Rs. in Crores)
For the year ended
As at
31.03.1991
As at
31.03.1990
Rs.
Rs.
Rs.
Rs.
Net Pre-operative Expenditure on Implementation
of Projects pending allocation
Amount Brought Forward
Establishment and Other Expenses
Payments to and Provisions for employees
Salary, Wages and Bonus
3.42
Contribution to Provident Fund and other funds 0.60
0.91
Staff Welfare expenses
Repairs and Maintenance
Insurance
Rent
Rates and Taxes (Previous Year Rs.18188)
Telephones, Telex and Postage
Travelling & Conveyance
C/F
1.33
0.04
2.18
0.01
1.19
3.90
8.65
93.27
35.27
4.93
1.98
1.42
0.27
0.29
0.34
0.01
1.08
––
0.88
2.33
4.64
Rs.
As at
31.03.1990
Rs.
4.64
0.04
–
0.54
0.27
2.26
0.03
0.32
3.17
0.93
–
Rs.
As at
31.03.1991
Rs.
8.65
0.06
–
0.86
0.15
16.36
1.15
2.27
3.59
2.61
–
70.35
26.20
4.72
B/F
Auditors’ Remuneration
Directors’ Fees [Rs. 25000 (Previous Year Rs.26000)]
Printing and Stationery
Advertisement
Commitment Charges and Financial Charges
Lease Rentals
Power
Registrar and Transfer Agent’s Fees
General Expenses
Excess provision of earlier year written off
(Previous Year Rs.1529)
Interest
On Debentures
On Fixed Loans
On Others (Previous Year Rs. 2248)
Depreciation
Less: Income
Interest [Tax Deducted at Source
Rs.0.01 crore (Previous Year Rs. 0.04 crore)]
Profit on Sale of Investments
Income from Units of UTI
Lease Income
Other Income
0.49
18.07
0.49
5.00
15.55
101.27
8.28
243.45
70.18
12.48
–
16.73
4.86
–
10.43
15.60
SCHEDULE ‘G’
INVESTMENTS (at cost) Unquoted
Other Investments
Government Securities
Indira Vikas Patra
Others
NIL Units (Previous Year 106123950 Units)
of Unit Trust of India (1964 Scheme)
With a Non-Banking Financial Company under
Portfolio Management Scheme
(Refer Note no. 7 of Schedule ‘M’)
39.60
203.85
47.62
93.27
As at
31.03.1991
Rs.
Rs.
As at
31.03.1990
Rs.
Rs.
0.20
–
49.25
0.20
142.99
–
Note:
During the year the Company also purchased:
(i) 19300000 Units of Unit Trust of India (1964 Scheme)
(ii) 11.5% Government of India Loan 2015
(iii) 11 .5% Government of India Loan 2008
(iv) 9%Tax-free MTNL Bonds
143.19
143.19
49.45
49.45
Rs.
25.71
39.06
67.19
5.50
SCHEDULE ‘H’
INVENTORIES
(At cost or market value whichever is lower)
(Certified and valued by the Management)
Raw materials in transit
SCHEDULE ‘I’
CASH AND BANK BALANCES
Cash on hand
Balance with Scheduled Banks
i)
ii)
iii) In Portfolio Management Schemes
(Refer Note no. 6 of Schedule ‘M’)
In Current Accounts
In Fixed Deposit Accounts
As at
31.03.1991
Rs.
Rs.
As at
31.03.1990
Rs.
Rs.
9.43
–
As at
31.03.1991
Rs.
Rs.
0.03
As at
31.03.1990
Rs.
Rs.
0.02
14.81
0.12
11.00
3.62
2.96
125.00
25.93
25.96
131.58
131.60
RELANCE PETROCHEMICALS LIMITED
(Rs. in Crores)
For the year ended
SCHEDULE ‘J’
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
Advance payment of Income-tax
Deposit with Customs
Other Deposits [Secured Rs.1.62 crores
(Previous Year Rs.1.62 crores)]
35.70
12.20
SCHEDULE ‘K’
CURRENT LIABILITIES
Acceptances
Sundry Creditors
Interest Accrued but not due on loans
Unclaimed Dividend
Other Liabilities
82.66
8.78
140.89
* includes Rs. 0.04 crore (Previous Year Rs.0.04 crore) due from officers of the Company
[Maximum Balance due at any time during the year: Rs.0.04 crore (Previous Year Rs.0.06 crore)].
As at
31.03.1991
Rs.
(Rs in lacs)
As at
31.03.1990
Rs.
17.71
–
1.65
0.51
39.24
59.11
7.64
30.11
2.27
0.51
37.26
77.79
As at
31.03.1991
Rs.
78.46
63.16
30.40
0.08
0.43
As at
31.03.1990
Rs.
25.74
22.06
26.27
0.11
1.16
172.53
75.34
As at
31.03.1991
Rs.
0.37
–
As at
31.03.1990
Rs.
0.18
0.94
0.37
1.12
SCHEDULE ‘L’
PROVISIONS
Gratuity, Superannuation and Provident Funds
Provision for Taxation
SCHEDULE ‘M’
NOTES AND CONTINGENT LIABILITIES
1.
Figures are shown in crores of rupees in accordance with the approval from the Company
Law Board, Western Region, Bombay. Figures less than Rs.50000 have been shown at
actuals in brackets. The previous year’s figures have been regrouped/recast wherever
necessary.
3.
4.
2. During the year under review, the projects continued to be in the construction stage. A
Profit and Loss Account for the year has not been prepared since there were no revenue
operations. The Company has presented a statement of ‘Net Pre-operative Expenditure on
Implementation of Projects pending allocation’.
Income arising out of deployment of funds available with the Company, has been reduced
from pre-operative expenditure pending allocation.
The Company has no Income-Tax liability and therefore, no provision for Income-Tax for
the year has been made.
Interest on unpaid calls is accounted as and when received.
5.
6. Out of placements made by the Company under Portfolio Management Scheme(s) of
Scheduled Bank(s), a sum aggregating to Rs. 11 crores (Previous Year Rs. 125 crores)
being balance as of 31st March, 1991, has been shown under ‘Balances with Scheduled
Banks’. The Company has been given to understand by the Bank(s) that the said sum(s)
has been deployed by the Bank(s) in the under-mentioned securities:
Security
1. Units of UTI (1964 Scheme)
2. Govt. of India Securities
Bills of Exchange
3.
As at
31.03.1991
Rs.
–
–
11.00
(Rs. in Crores)
As at
31.03.1990
Rs.
38.00
62.00
25.00
11.00
125.00
Income earned on placement of the said sum(s),aggregating to Rs.7.87crores, (Previous Year
Rs.12.96 crores) has been included in ‘Other Income’.
7. During the year under review, the Company has placed sums aggregating to Rs. 110 crores
with a Non-Banking Financial Company under Portfolio Management Scheme (Previous
Year Rs. NIL). As at the year end the balance under the said scheme was Rs.49.25 crores
(Previous Year Rs. NIL). The same has been disclosed under the head ‘Investments’. The
Company has been given to understand that as on 31st March, 1991, the said amount was
deployed in the under-mentioned securities:
43
RELANCE PETROCHEMICALS LIMITED
Security
1. Units of a Mutual Fund promoted by a Nationalised bank
2.
Bills of Exchange
(Rs. in Crores)
As at
31.03.1991
Rs.
0.50
48.75
49.25
Income earned on placement of the said sum(s), aggregating to Rs.5.59 crores (Previous Year
Rs. NIL) has been included in ‘Other Income’.
8. Contingent Liabilities:
a.
Estimated amount of contracts remaining to be
executed on capital account and not provided for
(net of advances)
(Rs. in Crores)
As at
31.03.1991
Rs.
205.73
As at
31.03.1990
Rs.
683.56
b. Outstanding guarantees furnished and letters of
52.35
57.48
9.
credit opened by banks
Bonds executed in favour of Custom Authorities
12.17
c.
d. Claims not acknowledged as debt
–
The Company has received Show Cause Notices from Custom Authorities in respect of
import of certain machineries and the said Authorities have claimed Rs.14.17 crores by
way of differential Customs Duty. The Company is disputing the notices. 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.
21.52
3.50
10. Auditors’ Remuneration:
(Rs. in Crores)
a.
b.
c.
Audit fees
For Tax Audit
For other matters
11. Managers’ Remuneration:
a.
b.
c.
Salaries
Contribution to Provident Fund and other funds
Perquisites (Previous Year Rs.28526)
1990-91
0.03
0.01
0.02
0.06
0.03
0.01
0.01
0.05
1989-90
0.02
0.02
–
0.04
0.02
0.01
–
0.03
12. Expenditure in Foreign Currency:
a.
Interest on Debentures held by Non-residents
on repatriation basis (gross)
Technical Know-how and Engineering Fees
b.
c. Other matters
(Rs. in Crores)
1990-91
1989-90
0.34
0.29
0.64
0.42
47.35
12.02
13. Licensed & Installed Capacity:
Licensed Capacity
(MT)
Installed Capacity
(MT)
1990-91
1989-90
1990-91
Under
100000* implementation
1989-90
Under
implementation
5000*
100000*
Mono Ethylene
Glycol (MEG)
Higher Ethylene
Glycols (MEG) (By-product)
High Density
Polyethylene (HDPE)
100000+
Poly Vinyl Chloride (PVC) 100000*
66000*
Chlorine
78000*
Caustic Soda (By-product)
Hydrogen (By-product)
1950*
* Based on Letter of Intent.
+ Since increased to 160000 MT including 110000 MT based on Letter of Intent.
100000+
100000*
66000*
78000*
1950*
“
“
“
“
“
5000*
“
“
“
“
“
“
“
14. As the Company has not commenced any manufacturing activity, the information required
under paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 has
been given only to the extent applicable.
15. Remittance in foreign currency on account of dividend:
Number of Non-resident shareholders
Amount of dividend (Rs. in crores)
Year to which dividend relates
(Rs in Crores)
16. Value of Imports on CIF Basis in respect of:
a. Raw materials
Capital goods
b.
Samples
c.
1990-91
1989-90
–
–
–
12074
0.05
1988-89
1990-91
1989-90
9.43
168.44
–
–
27.82
0.08
As per our Report of even date
For CHATURVEDI & SHAH
Chartered Accountants
For RAJENDRA & CO.
Chartered Accountants
D. Chaturvedi
Partner
R.J. Shah
Proprietor
Bombay
Dated: 28th June, 1991.
44
For and on behalf of the Board
D.H. Ambani
M.D. Ambani
A.D. Ambani
A.S. Dayal
K.K. Pai
R. Rajagopalan
Y.P. Trivedi
C. Chandrasekhar
Chairman
Directors
J.S. Bakshi
President
B.S. Jaju
Bombay
Dated: 28th June, 1991.
Company Secretary
DEVTI FABRICS LIMITED
Regd. Office: 3rd Floor, Maker Chambers IV
222 Nariman Point
Bombay 400 021
45
DEVTI FABRICS LIMITED
46
DIRECTORS’ REPORT
To The Members,
Your Directors present the Seventh Annual Report together with the Audited
Statement of Accounts for the Financial year ended 31st March, 1991.
OPERATIONS:
Your Company has incurred a loss of Rs. 20.77 lakhs during the year under review
as against the previous loss of Rs. 100.89 lakhs. 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 completed. As the full Production of Spinning Unit has now started giving
the fruits, your Company could reduce the loss from Rs. 100 Lakhs to Rs. 20 Lakhs
and has generated a cash profit of Rs. 41 lakhs. The Company is trying to reduce the
Weaving Activity in the coming year and thereby reducing the further losses in next
year. The Company is hopeful for 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 Companies Act, 1956, Shri S. Natarajan and
Shri Vinod M. Ambani retire by rotation and being eligible offer themselves for
reappointment.
AUDITORS:
Messrs. Rajendra & Company and Messrs. Chaturvedi 8 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 Repor t of Board of
Directors) Rules, 1988 are given in the Annexure 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, is not given as no employee is
drawings more than Rs. 12,000/- per month.
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: 24th June, 1991.
For and on behalf of the Board
S. Natarajan
Vinod M. Ambani
Directors
ANNEXURE 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
1. Cotton Spindle tapes of 20 Ring Frames have been replaced with
synthetic tapes thereby consumption of Electricity Energy was reduced
by 4% to 5%.
2. Re-arranging the Air compressors, centralising at one location has
reduced the consumption of electrical energy by reducing operational
and time losses.
DEVTI FABRICS LIMITED
3. Electrical energy was saved by replacing 100 Watt large light fittings to
36 Watts Fluorescent light fittings.
b. Additional investments and proposals being implemented for 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:
c.
By adopting above energy conservation measures, a sum of Rs. 90,000/-
was saved during this year.
FORM A
(Form for disclosure of particulars with respect to conservation of energy)
PART-A
A. POWER AND FUEL CONSUMPTION
1. ELECTRICITY
a. Purchased
Units
Total Amount
Rate/Unit
b. Own Generation
Current Year
1990-91
Previous Year
1989- 90
84,34,672
1,25,80,355
1.49
78,27,093
1,13,12,090
1.45
i.
Through Diesel Generator
Units
Units per Ltr. of Diesel Oil
ost/Unit
ii. Through Steam Turbine / Generator
Units
Unit per Ltr. of Fuel Oil/Gas cost/unit
4,320
2,420
2.4
––
––
2.4
––
––
2. COAL
Quantity (Tonnes)
Total cost
Average rate
3. FURNACE OIL
Quantity (Kilo Ltrs.)
Total Amount
Average rate
4. OTHERS / INTERNAL GENERATION
Quantity
Total cost
Average rate
PART - B
1905
22,41,008
1,176.38
1780
19,84,594
1,114.94
––
––
––
––
––
––
––
––
––
––
––
––
B. CONSUMPTION PER UNIT OF PRODUCTION
CURRENT YEAR
1990-91
PREVIOUS YEAR
1989-90
YARN (Kgs)
FABRICS YARN(Kgs)
(P. MTR)
FABRICS
(P. MTR)
ELECTRICITY (Units)
FURNACE OIL
COAL **
OTHERS
5.34
––
––
––
** Coal is used for steaming and heating the yarn for the purpose of sizing. It has no
link with the production.
0.41
––
––
––
0.41
––
––
––
5.27
––
––
––
FORM - B
(Form for disclosure of particulars with respect to Technology Absorption)
The Company has no specific Research and Development Depar tment, 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.
ii.
Activities relating to exports - Company is making a study to explore the
foreign market for export of Company’s products.
Foreign Exchange used and earned
NIL
...
...
47
DEVTI FABRICS LIMITED
AUDITORS REPORT
To
The Members of Devti Fabrics Limited,
We have audited the attached Balance Sheet of DEVTI FABRICS LIMITED as at
31st March, 1991 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 enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
2. Further 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, 1991; 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.
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.
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.4 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(1 B) 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(1 B) 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.
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. SHAH
Proprietor
D. CHATURVEDI
Partner
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.
Bombay
Dated: 24th June, 1991.
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. 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.
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.
48
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. 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.
15. In our opinion the Company has an internal audit system 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 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.
DEVTI FABRICS LIMITED
17. According to the records of the Company, Provident Fund and Employee State
Insurance dues have been regularly deposited with the appropriate authorities.
(c) The Company has a reasonable system of allocating manhours utilised to
the relative jobs commensurate with its size and the nature of its business.
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, 1991 for a period of more than six
months from the date they became payable.
(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.
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:
22. In respect of the 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.
For RAJENDRA & CO.
Chartered Accountants
R.J. SHAH
Proprietor
For CHATURVEDI & SHAH
Chartered Accountants
D. CHATURVEDI
Partner
(a) The Company has a reasonable system of recording receipts, issues and
consumption of material 8 stores commensurate with its size and the nature of
its business.
Bombay
Dated: 24th June, 1991.
(b) The Company does not have any significant allocation of material in respect of
the processing activities carried out on job work’ basis.
49
DEVTI FABRICS LIMITED
BALANCE SHEET AS AT 31st MARCH, 1991
Schedule
As at
As at 31.03.1991
Rs.
Rs.
(Rs. in crores)
As at
As at 31.03.1990
Rs.
Rs.
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(to-date)
Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Less: Current Liabilities and Provisions
Liabilities
Provisions
Miscellaneous expenditure
(to the extent not written off or adjusted)
Profit and Loss Account
TOTAL
Notes and Contingent Liabilities
21.01
386.27
175.00
577.06
237.76
146.24
4.10
10.65
160.99
55.48
216.47
280.35
11.45
291.80
21.01
667 43
688.44
21.01
561.27
582.28
21.01
492.43
175.00
571.32
176.75
339.32
394.57
127.13
1.05
8.42
1 36.60
112.52
249.12
251.59
1.20
252.79
(75.33)
0.08
318.21
582.28
(3.67)
0.10
297.44
688.44
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘K’
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
D. Chaturvedi
Partner
Bombay
Dated: 24th June, 1991.
50
S. Natarajan
Vinod M. Ambani
Directors
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 1991
Schedule
Rs.
Rs.
Rs.
Rs.
1990-1991
(Rs. in crores)
1989-1990
DEVTI FABRICS LIMITED
INCOME
Sales (Net)
Other Income
Variation in stock
EXPENDITURE
Purchases
Manufacturing and other expenses
Interest
Depreciation
Profit/(Loss)for the year
‘G’
‘H’
‘l’
‘J’
Add: Balance brought forward from last year Profit/(Loss)
Balance carried to Balance Sheet
Notes and Contingent Liabilities
‘K’
1004.78
291.46
41.52
63.56
1172.13
61.56
61.28
1217.30
232.57
(68.35)
1337.76
1 381 .52
164.12
1197.43
70.39
50.47
1482 41
(100.89)
(196.55)
(297.44)
1358.53
(20.77)
(297.44)
(318.21)
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
D. Chaturvedi
Partner
Bombay
Dated: 24th June, 1991.
S. Natarajan
Vinod M. Ambani
Directors
51
DEVTI FABRICS LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
NOTES:
SCHEDULE ‘A’
SHARE CAPITAL
Authorised:
(Rs In lacs)
As at
31st March, 1991
Rs.
As at
31st March, 1990
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
SCHEDULE ‘B’
SECURED LOANS:
orking Capital Loans from Bank
Working Capital Term Loan from Bank
Rupee Term Loan from Financial Institutions
Deterred payment liabilities
As at
31st March, 1991
Rs.
(Rs. in Lakhs)
As at
31st March. 1990
Rs.
107.72
70.45
205.80
2.30
386.27
120.82
113.92
251.48
6.21
492.43
1. Working Capital Loan and Working Capital Term Loan from Bank are secured against
Hypothecation of present and future stock of the 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 & Machineries purchased
under the Modernisation Scheme from the Financial Institutions referred to in 2 below and
are further guaranteed by Reliance Industries Limited, the Holding Company.
2. Rupee Term Loan from Financial Institutions are secured by an exclusive first charge on
the plant and machinery purchased under modernisation scheme
3. Deferred 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 Company modernisation scheme from the Financial Institutions referred
to in 2 above and are fur ther guaranteed by Reliance Industries Limited, the Holding
Company.
4.
The figure of secured loan include Rs. 72.68 lakhs repayable within one year.
SCHEDULE ‘C’
FIXED ASSETS
Buildings
Plant & Machinery
Electric Installation
Factory Equipments
Furniture & Fixtures
Vehicles
Advance Against Capital
Previous Year
SCHEDULE ‘D’
CURRENT ASSETS
GROSS BLOCK (AT COST)
DEPRECIATION
NET BLOCK
(Rs in lacs)
As at
1.4.90
Rs.
25.70
515.80
18.95
2.96
4.12
0.73
3.06
571.32
451.40
Additions
Deductions
Rs.
0.13
9.75
––
––
0.01
––
9.89
126.06
Rs.
––
0.11
0.96
––
_
3.06
4.13
6.14
As at
Rs.
25.83
525.44
17.99
2.96
4.13
0 73
––
577.08
571.32
Total upto
31.3.91
Rs.
3.20
228.77
4.05
0.85
0.63
0 26
––
237.76
176.75
As at
31.3.91
Rs.
22.63
296.67
13.94
2.11
3.50
0.47
––
339.32
394.57
As at
31.3.90
Rs
23.36
346.41
15.33
2 27
3.62
0.52
3.06
394.57
––
TOTAL
As at
31.3.1991
Rs.
Rs.
(Rs In lacs)
As at
31.12.1990
Rs.
Rs.
Sundry Debtors:
Over six months: Considered good
Considered doubtful
Others: Considered good
Less: Provision for doubtful debts
Cash and Bank Balances:
Cash on Hand
Balances with Scheduled Banks:
In Current Accounts
In Fixed Deposit Accounts
(Lodged with Central Excise
Authorities)
––
0.55
4.10
4.65
0.55
1.36
9.29
––
––
––
0.36
1.05
1.41
0.36
4.10
1.05
2 24
6.00
0.18
––
10.65
160.99
8.42
136.60
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
19.02
32.64
46.97
43.53
17.61
58.03
29.56
19.56
Others (includes stock of discarded
machinery Rs.2.84 lacs at Book Value)
4.08
2.37
146.24
127.13
52
SCHEDULE ‘E’
SCHEDULE ‘I’
DEVTI FABRICS LIMITED
MANUFACTURING AND OTHER EXPENSES
1990 - 1991
(Rs. in lacs)
1989 - 1990
LOANS & ADVANCES (Unsecured, considered good)
Bills 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
31.3.1991
Rs.
––
51.57
0.23
3.58
0.10
55.48
(Rs In lacs)
As at
31.3.1990
Rs.
83.25
24.93
0.21
3.07
1.06
SCHEDULE ‘F’
CURRENT LIABILITIES AND PROVISIONS
As at
31.3.1991
(Rs In lacs)
As at
31.12.1990
Rs.
Rs.
Rs.
Rs.
CURRENT LIABILITIES
Sundry creditors
Interest accrued but not due on loans
277.15
3.20
248.78
2.81
Raw Material Consumed:
Stock at commencement
Add: Purchases
Less: Sales
Less: Stock at close
Carriage inward
Stores and spare parts
Dyes and chemicals
Electric power, fuel and water
Machinery repairs
Building repairs
112.52
MANUFACTURING EXPENSES
Labour, processing and machinery hire charges
19.63
Excise duty
63.76
58.03
502.15
560.18
––
560.18
32.64
0.31
35.29
12.80
148.76
2.49
1.72
75.44
555.26
630.70
1.07
629.63
58.03
527.54
571.60
1.16
43.67
13.60
132.97
9.53
2.14
24.81
87.43
284.76
315.31
PROVISIONS
Gratuity and Superannuation funds
280.35
251 .59
PAYMENTS TO AND PROVISIONS
FOR EMPLOYEES
Salaries, wages and bonus
287.68
250.15
11.45
291.80
1.20
252.79
Contribution to Provident Fund, Gratuity
Fund, Superannuation Fund, Employees
State Insurance Scheme, Pension Scheme,
SCHEDULES FORMING PART OF THE PROFIT & LOSS ACCOUNT
Labour Welfare Fund, etc.,
Employees Welfare and Other Amenities
32.99
10.78
23.56
12.23
331.45
285.94
SCHEDULE ‘G’
OTHER INCOME
Processing charges
Profit on sale of assets (net)
Miscellaneous income
SCHEDULE ‘H’
VARIATION IN STOCK
1990-1991
279.68
2.05
9.73
291.46
(Rs. in lacs)
1989-90
220.71
1.79
10.07
232.57
( Rs. in lacs)
STOCK IN TRADE (at close)
1990 - 1991
1989 - 1990
Finished Goods
Stock-in-process
Others
STOCK IN TRADE (at commencement)
Finished goods
Stock-in-process
Others
43.53
46.97
1.24
19.56
29.56
1.10
19.56
29.56
1.10
91.74
50.22
71.71
46.54
0.32
50.22
41.52
118.57
(68.35)
SALES & DISTRIBUTION EXPENSES
Samples, Sales Promotion and
Advertisement expenses
Brokerage and Commission
Packing expenses
Freight and forwarding charges
Octroi expenses
Sales Tax
ESTABLISHMENT EXPENSES
Insurance
Rent
Rates and Taxes
Other repairs
Travelling expenses
Payment to Auditors
Directors fees
Provision for Doubtful Debts
General expenses
Charity & Donation
SCHEDULE ‘J’
INTEREST
Fixed Loans
Others (Net)
0.06
0.47
4.01
2.07
0.53
0.03
4.60
5.01
1.77
2.32
0.59
0.35
0.02
0.55
5.87
0.13
0.02
1.42
2.62
1.23
1.42
0.19
7.17
6.90
3.76
5.02
0.75
0.34
0.68
0.35
0.02
0.36
6.40
––
21.21
1,172.13
17.68
1,197.43
1990-1991
Rs.
42.79
18.77
61.56
(Rs. in lacs)
1989-1990
Rs.
52.44
17 95
70.39
53
DEVTI FABRICS LIMITED
SCHEDULE ‘K’
NOTES AND CONTINGENT LIABILITIES
12. Quantitative Information:
31.3.1991
31.3.1990
Qty
Rs. in
Qty
lacs
Rs. in
lacs
Figures of the previous year have been regrouped, wherever necessary to confirm to this
year’s figures.
(a) Opening stock
i)
Finished Stock
1.
2.
Interest on other accounts (net) is arrived at after adjusting Rs.0.43 lacs being Interest
received/receivable (Tax at source Rs. NIL lacs)
3.
Auditors’ Remuneration:
(a) Audit fees
(b) Tax audit fees
31.3.1991
Rs.
0.25
0.10
0.35
(Rs. in lacs)
31.3.1990
Rs.
0.25
0.10
0.35
4.
The company has been accounting liability 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.0.26 lacs in respect of such products 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 the loss of the Current
Financial Year.
5. 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 Companies
Act, 1956.
6.
Income and Expenditure 0.28 lacs and 0.24 lacs respectively relating to Previous Year have
been suitably accounted for in the respective heads.
7. Contingent Liabilities
Estimated amount of contracts remaining to be executed
on Capital Account and not provided for
Guarantees given by the Bank of Baroda for DPG scheme
Bonds executed in favour of Excise & Customs Authorities.
Claims against the company not acknowledged as debts
31.3.1991
(Rs. in lacs)
31 .3.1990
––
0.16
––
1.43
0.06
0.90
3.00
1.01
Yarn
Fabrics
M.T.
3
19.56
4
71.71
Mtrs. in lacs
1.06
5.15
ii)
Stock-in-process(Yarn)
iii) Others
29.56
1.10
46.54
0.32
(b) Closing stock
i)
Finished Stock
Yarn
Fabrics
M.T.
7
43.53
3
19.56
Mtrs. in lacs
2.36
1.06
ii)
Stock-in-process(Yarn)
iii) Others
46.97
1.24
29.56
1.10
(c) Purchases
Fabrics
(d) Sales
Yarn
Fabrics
Mtrs. in lacs
4.83
63.56
12.13
164.12
M.T.
48
54.27
98
137.83
Mtrs. in lacs
66.94
950.51
80.64
1079.47
(e) Raw Material Consumed:
Cotton
Fibre
Yarn
Viscose
M.T.
M.T.
M.T.
M.T.
211
225
143
42
57.18
163.60
287.76
19.00
53.19
198.98
319.43
234
259
170
––
13. Value of Raw Material
Consumed
8.
Licenced & Installed Capacity
(As certified by the Management)
Nos.
Spindles
Nos.
Looms
Licenced Capacity
31.3.90
38368
490
31.3.91
38368
490
Installed Capacity
31.3.90
31.3.91
37536
37536
490
490
Imported
Indigenous
31.3.91
31.3.90
14. Value of dyes & chemicals,
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
52
63.40
Nil
Nil
97
64.42
Nil
Nil
stores and spare
parts consumed:
Imported
Indigenous
31.3.1991
31.3.1990
Rs. in %
of total
Rs. in % of total
lacs consumption
lacs consumption
––
––
––
––
527.54
100.00
571.60
100.00
––
––
––
––
48.09
100.00
57.27
100.00
(Rs. in lacs)
15. Earnings in foreign exchange
––
––
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
D. Chaturvedi
Partner
Bombay
Dated: 24th June, 1991.
54
S. Natarajan
Vinod M. Ambani
Directors
TRISHNA INVESTMENTS & LEASINGS LIMITED
Regd. Office: 3rd Floor, Maker Chambers IV
222, Nariman Point,
Bombay 400 021
55
TRISHNA INVESTMENTS & LEASINGS LIMITED
DIRECTORS’ REPORT
DEPOSITS:
To the Members,
Your Directors present the 5th Annual Report together with the Audited
Statement of Accounts for the financial year ended on 31st March, 1991.
FINANCIAL RESULTS:
Profit (Loss) before tax
Less: Provision for taxation
Profit (Loss) after tax
Less:
(a) Transferred to General
Reserve
Proposed Dividend
(b)
49.46
319.00
Add: Provision for tax written back
Less: Balance brought forward from last year
Balance carried forward to Balance Sheet
1990-91
498.59
4.00
494.59
(Rs. in lacs)
1989-90
(821 .89)
Nil
(821.89)
368.46
126.13
0.05
(760.77)
(634.59)
Nil
(821.89)
61.12
(760.77)
INVESTMENTS:
During the year, the Company sold certain investment made in various
companies earning a profit of Rs.171.48 lacs and the company has also
received dividend income of Rs.326.40 lacs from the investments.
DIVIDEND:
Your Directors are pleased to recommend a dividend of Rs.7250/- per
Equity Share (subject to deduction of tax at source) for the financial year
ended 31st March, 1991 aggregating to Rs.3.19 crores.
COURT LITIGATION:
The Company had issued Bank Guarantee to the Financial Institution in
June 1990 amounting to Rs.9.14 crores. Consequent to the Judgment of
the Hon’ble Supreme Court in the matter, the said Bank Guarantee is no
more required. In view of this, your Directors are taking effective steps to
get the Guarantee released from the Institution for cancellation.
The Company has not accepted any deposit from the public. Hence no
information is required to be appended to this repor t 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 under Section 217(1)(e) of the Companies Act, 1956
relating to conservation of energy and technology absor ption. There was
no foreign exchange earnings or outgo during the year.
DIRECTORS:
As per the provisions of the Articles of Association, Shri V.T. Pai and Shri
Ashok Joshi, Directors of the Company retire by rotation and being eligible
offer themselves for reappointment.
AUDITORS:
The Auditors of the Company, Messrs. Rajendra & Co. and Messrs.
Chaturvedi & Shah 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
Bombay
Dated; 24th June, 1991
For and on behalf of the Board
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors
56
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, 1991 and
the Profit & Loss Account 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 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.
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.
b)
c) The Balance Sheet and Profit and Loss Account referred to in
d)
this Report are in agreement with the books of account.
In our opinion and to the best of our information and according to
the explanations given to us, the 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)
in so far as it relates to the Balance Sheet of the state of
affairs of the Company as at 31st March, 1991; and
in so far as it relates to the Profit and Loss Account of the
‘Profit’ of the Company for the period ended on that date.
ii)
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
R.J. SHAH
Proprietor
Bombay
Dated: 24th June, 1991.
D. CHATURVEDI
Panner
ANNEXURE TO AUDITORS’ REPORT
Referred to in Paragraph 1 of our Report of even date
TRISHNA INVESTMENTS & LEASINGS LIMITED
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 loan are
not prima-facie prejudicial to the interest of the Company.
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, 1 956.
5. The Company has not given any loans or advances in the nature of
loans during the period.
6.
In our opinion and 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 period 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. According to the information and explanations given to us, the
provisions of the Provident Fund Act and the 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, 1991 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 not dealt or traded in Shares, Securities,
Debentures and other investments. The Company’s investments are
held in its own name.
For RAJENDRA & CO.
Chartered Accountants
For CHATURVEDI & SHAH
Chartered Accountants
1. As the Company had no Fixed Assets during the period, clauses
4(A) (i) and (ii) of the said Order are not applicable.
R.J. SHAH
Proprietor
D. CHATURVEDI
Panner
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 not applicable.
Bombay
Dated: 24th June, 1991.
57
TRISHNA INVESTMENTS & LEASINGS LIMITED
BALANCE SHEET AS AT 31st MARCH, 1991
Schedule
Rs.
Rs.
Rs.
Rs.
1990-91
(Rs. in crores)
1989-90
SOURCES OF FUNDS:
Shareholders’ Funds
Capital
Reserves & Surplus
General Reserves
Transferred from Profit & Loss Account
Less: Adjusted against Profit & Loss Account
(as per contra)
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
Proposed Dividend
Net Current Assets
Miscellaneous Expenditure
(to the extent not written off or adjusted)
Profit & Loss Account
Less: Transferred from General
Reserve(as per contra)
TOTAL
‘A’
‘B’
‘C,
‘D’
‘E’
4946
4946
55836
223
60362
116421
138
400
31900
32438
63459
4946
44
––
44
––
––
––
1482900
1482944
1498475
1498519
1340448
1497002
107749
2146
14677
124572
197073
2063
––
199136
76077
––
(74564)
4
76077
1498519
83983
––
58513
1482944
Notes and Contingent Liabilities
‘G’
For CHATURVEDI & SHAH
Chartered Accountants
D. Chaturvedi
Partner
For and on behalf of the Board
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Proprietor
Bombay
Dated: 24th June, 1991.
58
TRISHNA INVESTMENTS & LEASINGS LIMITED
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 1991
Schedule
‘F’
INCOME
Dividend Income
(Tax deducted at Source Rs.6194 thousands,
Previous year Rs.815 thousands)
Interest received on securities
(Tax deducted at Source Rs.1045 thousands,
Previous year Rs. 772 thousands)
Profit on Sale of Investments (Net)
Commission
EXPENDITURE
Establishment & Other Expenses
Loss on sale of Investments (Net)
Profit before tax
Less: Provision for taxation
Profit after tax
Less: Transferred to General Reserve
Less: Proposed Dividend
Add/Less: 1.
Provision for tax written back
2 . Balance brought forward from last year
(Rs. in thousands)
1989-90
Rs.
1990-91
Rs.
32640
3510
2447
18263
17148
––
52235
2376
––
49859
400
49459
4946
44513
31900
12613
5
(76077)
––
752
22525
3334
101380
(82189)
––
(82189)
––
(82189)
––
(82189)
––
6112
Balance carried to Balance Sheet
(63459)
(76077)
Notes and Contingent Liabilities
‘G’
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Proprietor
Bombay
Dated: 24th June, 1991.
For CHATURVEDI & SHAH
Chartered Accountants
D. Chaturvedi
Partner
For and on behalf of the Board
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors
59
TRISHNA INVESTMENTS & LEASINGS LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE ‘D’
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.
SCHEDULE ‘B’
UNSECURED LOANS
From Holding Company
Short Term Loan from Bank
SCHEDULE ‘C’
INVESTMENT:
(A) QUOTED
Investment - At Cost
13359212 Equity Shares of Larsen & Toubro Limited
of Rs.10/- each fully paid up
(Previous year 13320355 Equity Shares of
Rs.10/- each)
Equity Shares d The Bombay Burmah
Trading Corporation Ltd. of Rs.100/- each
fully paid up.
(Previous year 175 Equity Shares of
Rs.100/- each)
Debentures Series III of Larsen & Toubro
Limited of Rs.651- each fully paid up
(Previous year 38857 Debentures of Rs.65/
each)
Debentures Series IV of Larsen & Toubro
Limited.
(Previous year 961593 Debentures of
Rs.290/- & 360185 Debentures of Rs.300/-
each)
Debentures Part B of Reliance
Petrochemicals Ltd.
(Previous year 8744 Debentures of Rs.40/-
each)
Debentures Part C of Reliance
Petrochemicals Ltd.
(Previous year 192474 Debentures of
Rs.150/- each)
(B) UNQUOTED:
26400 Equity Shares of Observer (I) Limited of
Rs.10/- each fully paid up.
(Previous year Nil)
Total Investment A + B =
Quoted Investment - Book Value
Market Value
As per our Report of even date
For RAJENDRA & CO.
Chartered Accountants
R.J. Shah
Proprietor
Bombay
Dated: 24th June, 1991.
60
1990-91
Rs.
(Rs. in thousands)
1989-90
Rs.
400
100
500
44
400
100
500
44
44
44
1990-91
Rs.
1482900
(Rs. in thousands)
1989-90
Rs.
1482900
15575
CURRENT ASSETS, LOANS AND ADVANCES
Current Asset:
Sundry Debtors
Over six months
(Considered good)
Others
(Considered good)
Cash and Bank Balances:
Cash on hand
Balance with a Scheduled Bank:
In Current Account
Loans and Advances
Advance recoverable in cash or in kind
or for value to be received
Advance payment of Tax
SCHEDULE ‘E’
CURRENT LIABILITIES - PROVISIONS
1482900
1498475
CURRENT LIABIUTIES
Sundry Creditors
Other Liabilities
PROVISIONS
For Taxation
Proposed Dividend
SCHEDULE FORMING PART OF THE
PROFIT AND LOSS ACCOUNT
SCHEDULE ‘F’
EXPENDITURE
Administrative Expenses
Financial Charges
Commission
Auditors’ Remuneration:
Audit Fees
Legal & Professional Charges
1990-91
Rs.
(Rs. in thousands)
1989-90
Rs.
1340013
1336788
100
3225
131966
352
––
––
––
––
––
(Rs. in thousands)
1990-91
Rs.
1989-90
Rs.
55369
467
107749
55836
107749
85
138
50537
9825
116421
4
2142
10989
3688
124572
1990-91
Rs.
(Rs. in thousands)
1989-90
Rs.
––
138
400
31900
32438
196080
993
2063
––
199136
1990-91
(Rs. in thousands)
1989-90
Rs.
237
80
1143
25
891
2376
Rs.
6
1326
27
10
1965
3334
SCHEDULE ‘G’
Notes forming part of the Balance Sheet and Profit and Loss Account for the year ended
on 31st March, 1991
24571
1.
Previous year figures have been regrouped and/or rearranged wherever necessary.
1340013
1497002
2. Dividend has been proposed for the year out of current year’s profit in accordance with the
legal opinion obtained by the Company in respect of the provisions of Section 205(1)(b) of
the Companies Act, 1956.
435
435
1340448
1340013
1502911
––
––
1497002
1497002
1238786
For CHATURVEDI & SHAH
Chartered Accountants
D. Chaturvedi
Partner
3.
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.
For and on behalf of the Board
F.N. Vajifdar
V.T. Pai
B.K. Bhandary
Directors
RELIANCE EUROPE LIMITED
Regd. Office: Devonshire House
146, Bishopsgate
London EC2M 4JX
United Kingdom
61
RELIANCE EUROPE LIMITED
REPORT OF THE DIRECTORS
REPORT OF THE AUDITORS TO THE MEMBERS OF
RELIANCE EUROPE LIMITED
The Directors have pleasure in submitting their First Annual Report and
the Audited Financial Statements for the period from incorporation, on 1
6th July, 1990 to 31st March, 1991.
We have audited the financial statements set out on pages four to nine in
accordance with Auditing Standards.
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The Company was incorporated as Handfall Limited and changed its
name to Reliance Europe Limited on 1 August 1990. The Company
commenced trading on 1st September 1990 and at present its principal
activity is that of marketing products manufactured by Reliance Industries
Limited
In our opinion the financial statements give a true and fair view of the
state of affairs of the Company at 31st March 1991 and of its Profit and
Source and Application of Funds for the period ended on that date and
have been properly prepared in accordance with the Companies Act 1985.
Kingston Smith
Chartered Accountants
RESULTS AND DIVIDEND
The results of the Company for the period are set out on page four and
are reported in US Dollars which is the currency in which the Company
conducts its trade. The Directors recommend that a final dividend of 0.4855
cents per share be paid for the period under review (which in total equates
to 50% of the Company’s after tax profits).
Devonshire House,
146 Bishopsgate,
London EC2M4JX.
SHARE CAPITAL
On incorporation, 2 ordinary £ 1 shares were issued at par for cash.
During the period a fur ther 2,016,998 ordinary £ 1 shares were issued,
at par for cash, to provide additional working capital for the Company.
DIRECTORS AND THEIR INTERESTS
The Directors who served the Company throughout the period together
with their interests in the shares of the Company at the beginning and
end of the period were as follows:
Ordinary Shares of £1 each
31st March 1991 At 1st September 1990
or subsequent date of
appointment
Dhirubhai Ambani
(Appointed 10.8.90)
Mukesh Ambani
(Appointed 10.8.90)
Anil Ambani
(Appointed 10.8.90)
Kenneth Ridehalgh
(Appointed 1 9.7.90)
Michael Claff
(Appointed 16.7.90;
Resigned 19.7.90)
––
––
1*
––
––
––
––
1*
––
––
*Held as nominee for Reliance Industries Limited.
AUDITORS
Kingston Smith were appointed during the period and have indicated
their willingness to continue in office and in accordance with the provisions
of the Companies Act 1985 it is recommended that they be re-appointed
Auditors to the Company for the ensuing year.
By Order of the Board
M.K. Shetty
Secretary
Devonshire House,
1 46 Bishopsgate,
London, EC2M4JX.
62
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31ST MARCH 1991
RELIANCE EUROPE LIMITED
Note
US$
1(c), 2
3
5
6
Note
7
8
9
10
TURNOVER
Cost of Sales
GROSS PROFIT
Administrative Expenses
OPERATING PROFIT
Interest Receivable and Similar Income
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Taxation
PROFIT FOR THE FINANCIAL PERIOD
Dividend
RETAINED PROFIT FOR THE FINANCIAL PERIOD
BALANCE SHEET AT 31ST MARCH 1991
CURRENT ASSETS
Stocks
Debtors
Cash at Bank and in Hand
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
NET ASSETS
CAPITAL AND RESERVES
Called Up Share Capital
Profit and Loss Account
Approved by the Board on 2.7.91
K. RIDEHALGH Ä Director
1991
9,307,250
9,075,406
231,844
220,215
11,629
23,307
34,936
15,352
19,584
9,792
9,792
1991
US$
6,821,996
2,574,865
2,608,427
12,005,288
8,062,346
3,942,942
3,933,150
9,792
3,942,942
63
RELIANCE EUROPE LIMITED
STATEMENT OF SOURCE AND APPLICATION OF FUNDS FOR THE PERIOD ENDED 31ST MARCH 1991
SOURCE OF FUNDS
Trading Operations:
Profit before Taxation
Other Sources:
Issue of Share Capital
APPLICATION OF FUNDS
Net Movement in Working Capital
(See Note Below)
CLOSING LIQUID RESOURCES
Cash at Bank
NOTE: MOVEMENT IN WORKING CAPITAL
Stock
Debtors
Creditors
Increase in Working Capital
US $
Source
––
––
8,033,938
8,033,938
1991
US$
34,936
3,933,150
(1,359,659)
2,608,427
US $
Application
6,821,996
2,571,601
––
9,393,597
1,359,659
64
RELIANCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE
PERIOD ENDED 31 ST MARCH 1991
5. TAXATION
Corporation Tax based on the results for
the period at the rate of 26.21%
US $
15,352
1. ACCOUNTING POLICIES
The taxation charge for the period has been affected by the
disallowance of certain expenditure.
(a) Accounting Basis
The financial statements have been prepared under the historical
cost convention and in accordance with applicable accounting
standards.
(b) Stocks
Stocks are stated at the lower of cost and net realisable value. Cost
includes all direct costs incurred in bringing the stocks to their present
location and condition.
6. DIVIDEND
Proposed
7. STOCKS
Goods for Resale
Goods in Transit
(c) Turnover
Turnover represents the invoiced value of goods sold net of Value
Added Tax.
8. DEBTORS
Trade Debtors
Other Debtors
(d) Deferred Taxation
Deferred Taxation is accounted for under the liability method in respect.
of the taxation effects of all timing differences which are expected to
reverse in the future, calculated at the rate at which it is estimated
that tax will be payable.
(e) Foreign currencies
Trading Account transactions denominated in foreign currencies are
translated into US Dollars at the rates of exchange ruling at the date
of the transaction. Overhead expenses incurred in Sterling have been
translated into US Dollars at an average exchange rate for the
accounting reference period.
Assets and liabilities in foreign currencies are translated into US
Dollars at rates of exchange ruling at the end of the financial period.
All exchange differences are dealt with in the Profit and Loss Account.
(f) Leasing
Rentals paid under operating leases are charged to income on a
straight line basis over the lease term.
2. TURNOVER
Turnover is attributable to the one principal activity of the Company
which arose as shown below:
Geographical Analysis:
United Kingdom
Rest of Europe
US $
2,835,393
6,471,857
3. OPERATING PROFIT
The Operating Profit is stated after charging:
Auditors’ Remuneration
Exchange Difference on Sales in period
9,307,250
US $
6,458
58,643
4. EMPLOYEE INFORMATION
The average number of employees during the year was 3. Due to the
size of the Company there is no formal classification of duties.
Their total remuneration was:
Wages and Salaries
Social Security Costs
US $
70,925
7,288
78,213
US $
9,792
US $
5,761,004
1,060,992
6,821 ,996
US $
2,566,892
7,973
2,574,865
US $
271,349
7,709,301
15,352
3,264
4,930
48,358
9,792
8,062,346
£ 3,000,000
£ 2,017,000
9. CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
Trade Creditors
Amount owed to Group Undertakings
Corporation Tax
Advance Corporation Tax on Dividend
Social Security and Other Taxes
Accruals and Deferred Income
Proposed Dividend
10. CALLED UP SHARE CAPITAL
Authorised:
3,000,000 Ordinary Shares of £ 1 each
Called up, Allotted and Fully Paid:
2,017,000 Ordinary Shares of £1 each
On the date of incorporation 2£1 ordinary shares were issued. A
further 2,016,998 1 ordinary shares were issued during the period to
provide additional working capital.
An exchange rate of US $1 .95 :£1 was used to re-state the above
Called Up, Allotted and Fully Paid shares to the balance sheet
equivalent of US $3,933, 1 50.
11. DIRECTOR’S INTERESTS
The Company has traded with Beachcroft Stanleys, Solicitors, a firm
of which Mr. K. Ridehalgh is a partner, on normal arms-length trading
terms for the provision of legal serivces. These services amounted to
US $2,030.
12. ULTIMATE PARENT COMPANY
The Company’s Ultimate Parent Company is Reliance Industries
Limited, a company incorporated in India.
The address from which the financial statements of the Holding
Company can be obtained is:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Bombay 400 021,
Post Box 1 1717,
India.
65