Reliance Industries Limited
Annual Report 1994-95
Reliance Industries Limited
Sales - Rs. 7,019 crores (US $ 2228 million)
Operating Profit (PBIDT) - Rs. 1,457 crores (US $ 463 million)
Cash Profit (PBDT) - Rs. 1,343 crores (US $ 426 million)
Net Profit - Rs. 1,065 crores (US $ 338 million)
Assets - Rs. 11,529 crores (US $ 3660 million)
2.6 million shareholders
The largest private sector enterprise in India
1
Reliance Industries Limited
Board of Directors
Dhirubhai H. Ambani
Chairman
Mukesh D. Ambani
Vice Chairman & Managing Director
Anil D. Ambani
Managing Director
Nikhil R. Meswani
Executive Director
Suresh S. Betrabet
Nominee Director- ICICI
U. Mahesh Rao
Nominee Director- GIC
Ramniklal H. Ambani
Natvarlal H. Ambani
Mansingh L. Bhakta
T Ramesh U. Pai
Yogendra P. Trivedi
Vinod M. Ambani
Secretary
Kanga & Co.
Solicitors & Advocates
Auditors
Chaturvedi & Shah
Rajendra & Co.
Bankers
Allahabad Bank
American Express Bank
Bank of America
Bank of Baroda
Canara Bank
Central Bank of India
Deutsche Bank
Hong kong Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of India
Syndicate Bank
Vijaya Bank
Registered Office
3rd Floor, Maker Chamber IV,
222, Narirman Point.
Bombay 400 021. India
Tel Nos.2831633/16-2826070
Fax No. 022 - 204 2268
2
Manufacturing Facilities at
Subsidiary Companies
1 . Petrochemicals & Fibres Complex
B-4, Industrial Area, Patalganga
Off Bombay-Pune Road
Near Panvel, Dist Raigad 410 207
Maharashtra State, India
2 . Textiles Complex
103/106, Naroda Industrial
Estate Naroda, Ahmedabad 382 330
Gujarat State, India
3 . Plastics & Petrochemicals Complex
Village Mora, Bhatha PO.
Surat Hazira Road
Surat 394 510, Gujarat State, India
1 . Devti Fabrics Limited
3rd Floor, Maker Chambers IV,
222, Nariman Point, Bombay 400 021
2 . Reliance Industrial Investments
and Holdings Limited
3rd Floor, Maker Chamber IV,
222, Nariman Point, Bombay 400 021
3 . Reliance Petroproducts Limited
201/202 Lalita Complex,
Near Vijaya Bank,
352/3 Rasala Road, Navrangpura
Ahmedabad 380 009.
Registrars & Transfer Agent
Reliance Consultancy Services Limited
56, Mogra Village Lane,
Off. Old Nagardas Road,
Andheri (East), Bombay 400 069, India
Tel. Nos.8367015 16-17-18
Fax No 022-8367019
Reliance Industries Limited
Contents
Page No.(s)
To our Family of Shareowners
Financial Highlights
Directors Report
Annexure to Directors’ Report
Auditors Report
Balance Sheet
Profit & Loss Account
Schedules forming part of Balance
Sheet and Profit & Loss Account
Notes on Accounts
Documents of
Subsidiary Companies
5
27
29
31
31
36
37
38
50
55
3
Reliance Industries Limited
Mukesh D. Ambani
Vice Chairman & Managing Director
Dhirubhai H. Ambani
Chairman
Anil D. Ambani
Managing Director
4
Reliance Industries Limited
To Our Family of Shareowners......
In terms of size, technology and performance
The year 1994-95 will be remembered as a landmark
in Indian Industry, Reliance rides the winds of
in the history of Reliance Industries Ltd. The sales
liberalisation and opportunity.
of Rs.7019 crores (US $ 2228 million), represented
an increase of 31% over the previous year. Net profit
the Gearing Ratios moving down from 0.58:1 to 0.35:1
crossed the Rs.1000 crores mark [Rs.1065 crores -
and from 20% to 16% respectively. India’s leading credit
US $ 338 million], unparalleled in the history of the
rating agency, CRISIL, has upgraded Reliance’s long
Indian Private Sector. The taxes and duties paid to
term debt rating from M+ to AAA, signifying the highest
the Government of India stood at 202% of net profit
safety and an extremely strong financial position.
(Rs.2147 crores, US $ 682 million). Earning per share
During the year under review, Reliance invested
was up by 29% at Rs.23 on an equity capital of
Rs.3263 crores (US $1036 million) for the creation of
R s. 4 5 6 c r o r e s ( U S $ 1 4 5 m i l l i o n ) . N e t w o r t h
increased from Rs. 4335
crores (US $1376 million)
t o R s . 7 1 9 3 c r o r e s ( U S
Rs . in crores
Total Income
$2283 million), an increase
of over 66%. Return on
s h a r e h o l d e r s ’
f u n d s
improved to 18.5% from
16.6% in 1993-94.
The financial position of the
8000
6000
4000
2000
0
Company became stronger
90-91 91-92
92-93
93-94 94-95
with both the Debt:Equity and
new assets as against
Rs.487 crores (US $1 55
million) during the previous
ye a r. Fur ther, Reliance
expects to invest about
Rs.3000 crores (US $ 952
million) in the next 18-24
months
period, with
substantial increase in the
manufacturing capacity
by 300% from 1.5 million
TPA to 6 million TPA .
1994-95
1994-95
Rs.(Crs)
US $ MM
Rs.(Crs)
US $ MM
Growth
(%)
Sales
Gross Profit (PBIDT)
Cash Profit (PBDT)
Net Profit (PAT)
7,019
1,457
1,343
1,065
Shareholders’ Funds (Net Worth)
7,193
Total Assets
11,529
Earning Per Share
(EPS-in Rs.)
(EPS - in cents)
Taxes/Duties paid to the Govt
Foreign Exchange Savings
Capital Expenditure (CAPEX)
23.4
2,147
3,770
3,263
2228
463
426
338
2283
3660
0.74
682
1197
1036
5,345
1,064
831
575
4,335
8,120
18.1
1,391
2,353
487
1697
338
264
183
1376
2578
0.57
442
906
155
31
37
62
85
66
42
29
54
32
570
5
Reliance Industries Limited
Reliance accelerates performance in
liberalised environment
increased equity base, compared to 10% per annum in
the pre-reforms period. The taxes and duties paid to
The Government of India initiated reforms programme in
the Government of India increased from Rs.2508 crores
1991 to liberalise the economy, paving the way for ar
(US $ 796 million) for years 1989-92 to Rs.4656 crores
intensively competitive environment. Reliance had
achieve significant growth during the pre-reforms period
and was thus poised to take full advantage of the
(US $1478 million) for years 1992-95; keeping pace
with its rapid growth. The total assets of Rs.11,529 crores
(US $ 3660 million) as on March ’95 grew at 33% in the
oppor tunities ahead. The post-
reforms years posed new challenges
Post Refor ms
Pre Reforms
in terms of increased competition and
1994-95 1992-93 CARG * % 1991-92 1989-90 CARG * %
lower
tariff
protection. New
opportunities were being created by
greater consumer awareness and
increasing purchasing power of the
Sales
7019
4106
EBDIT
1457
Cash profit
1343
881
602
322
growing middle class. The Reliance
Net profit
1065
philosophy of pursuing aggressive
EPS
23.4
13.1
30.7
28.6
49.4
81.9
33.5
2953
1841
575
356
163
7.2
424
252
9 1
5.9
26.6
16.4
18.7
34.3
10.0
growth plans in the core businesses
CEPS
29.5
24.5
9.6
15.7
16.6
-2.8*
to sustain long term profitability and
* Compounded Annual Rate of Growth
achieve market leadership, became all the more relevant
post-reforms years, from a larger base of Rs.4880 crores
in this new environment. Reliance sharpened its business
(US $ 1907 million) as on March ’92, in comparison
strategy of maximising long
term cash flows and enhancing
shareholder
value .
The
excellent financial performance
thereafter substantiates this
business strategy. The above
table shows three years of the
pre
and
post-reforms
growth.Sales have increased at
a compounded annual rate of
31% in the post-reforms years
%
90
80
70
60
50
40
30
20
10
0
-10
Pre Reforms / Post Reforms
Performance CARG %
Sales EBDIT Cas h
Profit
Pre-Reforms
EPS CEPS
Net
Profit
Post Reform s
with 26% in the pre-reforms
years [Base Rs.2411 crores
(US $ 810 million) as on March
’89]. Shareholders’ funds of
R e l i a n c e g r e w a t 5 5 % p e r
a n n u m i n t h e p o s t r e f o r m s
years as compared to a growth
rate of 22% in the pre reforms
y e a r s a n d a r e c u r r e n t l y a t
Rs.7193 crores (US $ 2283
million).
Reliance has been proactive
(1992-95) as compared to 27% in the pre reforms years (1989)
A growth rate of 82% in net profits compared to 34% in the
pre-reforms period clearly demonstrates that Reliance
has been able to successfully cope with the reduction in
customs duties from a peak level of over 200% to 50%.
in taking full advantage of the opportunities arising from
liberalisation while facing up successfully to a far more
i n t e n s i v e c o m p e t i t i o n R e l i a n c e , w h i c h i s o n t h e
threshold of rapid growth, has built a strong foundation
for the post-reforms years of the future and will be able
Shareholder value has been enhanced through a
to fulfill the aspirations of shareholders, employees,
compounded growth in EPS of 34% per annum, on an
customers and other partners.
6
Reliance Industries Limited
Review of Operations
Fibres Business
Polyester Staple Fibre (PSF)
Polyester Filament Yarn (PFY)
The fibres division has continued, till this day, to focus
on providing high quality products and an excellent
Reliance’s Polyester Staple Fibre (PSF) division has
customer ser vice. This has helped Reliance establish
consolidated its position during the year under review
its product brand ‘RECRON’ amongst all segments of
through a continued focus on customer service, supply
customers and this is reflected in-j-growing market
of high premium quality fibre, exploiting new avenues
share. The production in the industr y grew at the rate of
of growth and creation of new market segments This
has helped Reliance increase its market share and
production.
Over a five year period from 1989-90 to 1994-95
14% compounded in the last five years from 156,000
MT to 295,000 MT per annum. During the same period
Reliance’s production has increased from 66,000 MT
to 90,000 MT. Currently the Company enjoys a 30%
market share.
In response to the needs of a niche market in fully drawn
yarn, Reliance is setting up a 5000 TPA FDY plant at
P a t a l g a n g a d u r i n g t h e c u r r e n t y e a r. W i t h t h e
rationalisation of customs and excise tariffs and an
increase in the per capita income, demand for polyester
is expected to be strong till 2000 AD. However, polyester
industry in India is likely to see excess capacity in the
immediate future. With vertical integration, market
leadership and economy size plants, Reliance has
positioned itself as a low cost producer in the industry
and is thus confident of meeting any situation which
Reliance has increased its production from 45,000 MT
may arise from excess capacity.
to 90,000 MT, a compounded growth rate of 15%, while
the industr y’s production grew at the rate of 12% per
annum from 127,000 MT in 1989-90 to 220,000 MT in
1994-95. D u ring the year under revie w, Reliance
alongwith Terene Fibres India Ltd. (TFIL) - whose entire
production is available to Reliance produced over
90,000 MT which represents a growth of 23% over the
previous year As a result the Company’s market share
improved from 33% to 40%.
Reliance has taken steps to debottleneck its existing
facilities and modernise the control and automation
systems so as to maintain a position of leadership both
in quality as well as in productivity These measures
are likely to be completed during the current year. With
an eye on the potential demand. Reliance has already
taken steps to set up 160,000 TPA plant at Hazira. The
Fibre Intermediates Business
Purified Terephthalic Acid (PTA)
Reliance continues to be the largest producer of Purified
Terephthalic Acid (PTA) and Paraxylene (PX). The PX
Company’s mar ket share will increase from 40% to over
produced is captively consumed by the Company.
50% by 1997.
It produced over 257,000 MT of PTA, achieving over 100%
7
Reliance Industries Limited
The MEG plant at Hazir
8
capacity utilisation. As a result, Reliance strengthened
Reliance’s market share today stands at 56%. Reliance
Reliance Industries Limited
is setting up additional polyester facilities at Hazira and
it plans to increase the MEG capacity by adding another
plant of 120,000 TPA at the same site.
its market share in the domestic DMT/PTA production
to 58%. The industr y consumption increased from
290,000 MT in 1989
t o 5 5 0 , 0 0 0 M T i n
1994-95 Reliance’s
production grew at a
compounded rate of
1 5 % f r o m 1 2 5 , 0 0 0
M T i n 1 9 8 9 - 9 0 t o
257,000 MT in 1994-
9 5 . W i t h
t h e
c o n t
i n u e d
p r e f e r e n c e f o r t h e
PTA route in the manufacture of polyester, the demand
Polymers Business
for PTA is expected to grow in excess of the available
Polyvinyl Chloride (PVC)
production thus necessitating additional capacity.
Reliance continues to maintain its leadership position
To meet the growing demand, Reliance is already in
in the vibrant domestic PVC industry. While the industr y
the process of implementing a
w o r l d s i ze P TA p l a n t o f
350,000 T PA at Hazira This
w o u l d p r i m a r i l y m e e t t h e
needs of Reliance’s polyester
complex at Hazira In order to
meet the country’s requirement
of filament capacity of over
one million tonnes per year
and fibre capacity of over half
a million tonnes per year in
the coming years. Reliance is
8000
7000
6000
5000
4000
3000
2000
1000
0
Equity Share Capital & Net Worth
Rs. in crores
r e c o r d e d a c o m p o u n d e d
g r o w t h r a t e o f 2 7 % , f r o m
1 3 5 , 0 0 0 M T i n 1 9 8 9 - 9 0 t o
4 4 2 , 0 0 0 M T
i n 1 9 9 4 - 9 5 ,
Reliance entered this industry
in 1991-92 and registered a
much higher compounded rate
of 36%. Reliance’s production
90-91
91-92
92-93
93-94
94-95
increased to 187,000 MT, an
planning to fur ther increase its PTA capacity.
Mono Ethylene Glycol (MEG)
Reliance is the largest producer of MEG It has achieved
a capacity utilisation of nearly 100% during the year.
Much of the MEG produced at Hazira is captively
consumed by the polyester facility at Patalganga. The
i n d u s t r y c a p a c i t y w i t n e s s e d a p h e n o m e n a l 6 6 %
compounded growth over the period 1989-95 from
20,000 MT in 1989 to 250,000 MT in 1995. As a direct
result of high capacity utilisation,
increase of 10% over that of
the previous year.
Reliance’s PVC, marketed under the brand name ‘REON’,
has met with an overwhelming response not only in the
9
Reliance Industries Limited
domestic market, but also in international markets. It is
From petrochemicals to textiles, Reliance is
now popular in the Middle East, South East Asian,
uniquely positioned as perhaps the only Company
African and in the Latin American markets.
The year saw a very steep increase in international
prices of both the raw materials Ethylene and Ethylene
Di-Chloride (EDC). In fact the prices nearly doubled,
resulting in price adjustments of various products to
in the world to have a level of total integration and
value addition substantially enhancing
long-term profitability and shareholder value.
The increase in production over the previous year by
24% at 166,000 MT comprised of all required grades.
r e d u c e
t h e p r e s s u r e o n
margins.
Reliance adopted a customer
friendly marketing approach
and received good response
f o r i t s r e s i n s T h e m a r ke t
growth is slated to be in the
r e g i o n o f 1 2 % p e r a n n u m ,
e n s u r i n g
g o o d
d e m a n d
i n d i g e n o u s l y R e l i a n c e
i s
e x p a n d i n g i t s c a p a c i t y t o
1600
1400
1200
1000
800
600
400
200
0
Operating Profit & Profit After Tax (PAT)
Rs. in crores
Reliance increased its market
share from 12% in 1992-93 to
a healthy 40% in 1994-95.
T h e C o m p a n y
i n t r o d u c e d
a d d i t i o n a l
g r a d e s
a n d
c a p t u r e d
n e w m a r k e t s
r e s u l t i n g
i n
i m p o r t
substitution. Reliance markets
various grades of polyethylene
90-91
91-92
92-93
93-94
94-95
u n d e r
t h e b r a n d n a m e
‘ R E L E N E ’
( H D P E ) a n d
‘ R E C L A I R ’ ( L L D P E ) w h i c h
300,000 TPA, work on which is well under way and will
s a t i s f i e d t h e r e q u i r e m e n t s o f t h e c u s t o m e r s. T h e
be fully oper ational from next y ear. This will fur ther
Company emerged as the market leader in the woven
enhance Reliance’s competitive edge.
Polyethylene (PE)
With 55% of industry production, Reliance is now the
largest producer of High Density Polyethylene in India
in just three years While the industry saw a rapid growth
in production from 35,000 MT in 1989-90 to 310,000
MT in 1994-95, a compounded growth rate of 55%,
Reliance’s production grew from 47,000 MT in 1992-
93 to 166,000MT in 1994-95.
sack industry serving Fertilizer and Cement units.
One of the most significant developments during the
year, was the introduction of Octene LLDPE grades;
produced for the first time in the country It has been
well received by the Indian industr y, will replace imports
and lead to savings in precious foreign exchange. With
the introduction of this grade, Reliance achieved a
u n i q u e d i s t i n c t i o n o f b e i n g o n e a m o n g o n l y s i x
producers in the world of Octene LLDPE.
Chemicals Business
Linear Alkyl Benzene (LAB)
As a critical raw material for synthetic detergents, the
co nsumpti on of LA B , depends on t he i ncr eas ing
purchasing power and growing personal demands of the
people. The industry capacity has increased from 150,000
MT in 1989 to 210,000 MT in 1995. Over the same period,
consumption did not keep pace with the capacity addition
1 0
which now stands at 175,000
TPA ( 1994-95). Reliance has
achieved near 100% capacity
over the last three years and
has maintained a 37% market
share. For the period under
r eview, Reliance produced
about 80,000 MT of LAB.
Reliance markets LAB under
t h e b r and name
‘ R E L A B ’
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Reliance Industries Limited
Gross Fixed Assets & Net fixed Assets
Rs. In crores
Tri Ethylene Glycol
(TEG)
Gross Fixed
Assets
Net Fixed Assets
R e l i a n c e i s s e t t i n g u p a
production facility for TEG of
10,000 TPA which is expected
t o s t a r t f u n c t i o n i n g d u r i n g
1995-96. This will substitute
imports in the field of oil field
c h e m i c a l s a n d s p e c i a l i t y
surfactants.
90-91 91-92 92-93 93-94 94-95
which is used by all the leading domestic manufacturers
of soaps and detergents and is exported to international
Textile Business
Market Leader - ‘VIMAL'
leaders like Henkel, Unilever, Procter and Gamble etc.
Reliance contin ues to lead India’s premium suitings
Backward integration to the stage of Normal Paraffin
industr y with its largest premium brand “VIMAL”. It will
has further helped Reliance improve margins Reliance
also continue to play a pivotal role in the textile industry
believes that the demand for LAB would improve during
and will fur ther improve its present market share. The
t h e c o m i n g y e a r s a n d t o m e e t t h i s d e m a n d , t h e
Company is expanding its retail channels to strengthen
Company plans further capacity additions.
the marketing network and to deliver quality fabrics all
over the countr y.
Ethylene Oxide (EO)
Reliance continued to lead the domestic market with a
36% mar ket share. The cost reduction programme
undertaken during the year has started bringing rich
dividends.
Paraffins
R e l i a n c e l e a d s t h e P a r a f f i n m a r k e t i n I n d i a f o r
Expansion
chlor ination with a 41% market share The market for
Reliance has successfully increased the Worsted
Chlorinated Paraffin is growing, led by increasing
Spinning plant capacity from 12,500 spindles to 24,000
conversion of PVC into flexible products. The Company
intends to increase the market share.
spindles and has simultaneously enhanced the weaving
capacity by nearly 7 million sq. mtrs. of high quality
Worsted Suitings and balancing equipment in the
processing section. This, combined with other blended
s u i t i n g s , h a s h e l p e d t h e C o m p a n y m a i n t a i n i t s
leadership as the largest producer of premium suitings.
A project initiated to manufacture Polyester/ Viscose
Spun Ya r n b y i n s t a l l i n g 2 3 , 0 0 0 s p i n d l e s w a s
successfully commissioned dur ing the year. This is
again an exercise in backward integration, reducing
the dependence on spun yarn and further adding to
the profitability.
1 1
Reliance Industries Limited
The Panna and Mukta Oil & Gas fields off Bombay High
1 2
Harmony-Furnishing Fabrics
Naroda to ensure uninterrupted power and reduce
Reliance has maintained its leading edge and has been
overall costs.
Reliance Industries Limited
t h e
l a r g e s t
m a n u f a c t u r e r
o f
upmarket furnishing
f a b r i c s m a r k e t e d
u n d e r
t h e b r a n d
name “Har mony”. To
cater to the growing
d e m a n d o f h o m e
t e x t i l e s ,
C o m p a n y
t h e
h a s
increased its manufacturing
capacity by over 3 million sq. mtrs per annum. This has
been achieved by installing 10 highly sophisticated
weaving machines and upgrading the existing jacquard
machines. For intricate designing, these machines are
Further Expansion
Reliance has already spent over Rs. 200 crores (US $
63 million) and plans to enhance its existing capacities
for all its textile products. With this, the total capital
expenditure will be Rs.300 crores (US $ 95 million),
which is one of the largest investments by a single textile
Compan y.
Oil and Gas Business
As part of the economic liberalisation programme, the
Government of India (GOI) invited private sector
part ic ipat ion in t he e xplorat ion and p rod uct ion of
Petroleum, Oil & Gas. Reliance won three of the four
suppor ted by the most advanced CAD technology.
medium sized oil and gas offshore projects awarded to
the private sector in an international competitive
SlumbeRel - New Sleep Products
b i d d i n g . T h e p r o j e c t i s b e i n g i m p l e m e n t e d by a n
In line with its strategy of value addition through
u n i n c o r p o r a t e d j o i n t v e n t u r e a m o n g R e l i a n c e
integration, Reliance has diversified into marketing
Industries Ltd. (30% Working Interest), Enron Oil & Gas
o f s l e e p p r o d u c t s . U n d e r
l i c e n c e
f r o m E . l .
India Ltd (30% Working Interest) and Oil & Natural Gas
DuPont De Nemours and Co., USA, it has introduced
Corporation Limited (ONGC) (40% Working Interest).
“ S l u m b e R e l ” , D a c r o n
I
f i b r e - f i l l e d p i l l o w s .
Manufactured to DuPont quality standards, they are
made from specially engineered hollow fibres. This is
Reliance has already signed the Production Sharing
Contract. The development of the proven Panna, Mukta
and Tapti fields will give recoverable oil reserves of
145 million barrels, condensate reserves of 12 million
barrels and gas reserves of 40 billion cubic meters.
Reliance is proceeding with firm plans for developing
these fields.
This venture has provided Reliance with a foundation
for the expansion of E & P (Exploration and Production)
initiative. It has been actively evaluating opportunities
in subsequent rounds of bidding initiated by the
Government of India for the development of discovered
the first time that a scientifically developed pillow with
oil and gas fields.
unique features is released in the Indian market. This
will be followed by a range of decorative cushions,
comforters, quilts and mattresses.
Captive Power
Reliance has also successfully commissioned a combined
cycle gas-based cogeneration Captive Power Plant at
Bus ines s Mix
3 4 .1%
2 7 .8%
6 .1 %
9 .3 %
2 2 .7%
Fib re In te rm id ia te s
Te xtile s
Pla s tics
Po lye s te r
C he m i ca ls
1 3
Reliance Industries Limited
New Projects
polyester capacity being set up at Hazira is 360,000
The measures introduced in 1991 to stabilise and turn
TPA. The PTA and MEG capacities would primarily meet
around the economy helped with a real GDP growth of
4.3% and 5.3% in the years 1994 and 1995 respectively.
With fiscal deficit of only around 6% over the last three
years coupled with a favourable balance of payments
(BOP) position, the country is poised to enter a period
of rapid growth. As a precursor to the future, industrial
the feedstock needs of the Hazira polyester complex.
Purified Terephthalic Acid Project (PTA)
Reliance is setting up a world-scale PTA plant with a
capacity of 350,000 TPA at Hazira The project is now at
growth which has been above 8% in 1994 and is
an advanced stage of completion.
e x p e c t e d t o a c c e l e r a t e t o
double digits by 1996, at par
with the levels achieved in the
Asian Tiger Countries. With
the Government determined
t o c o n t r o l
i n f l a t i o n ,
t h e
benefits of liberalisation will
eventually percolate down to
all levels of our population
and result in an increase in
the purchasing power.
160
140
120
100
80
60
Book Value
In Rs.
Mono Ethylene Glycol
Project (MEG)
Implementation of this project
i s b e i n g c a r r i e d o u t o n a
priority basis keeping in view
the feedstock requirements
of the new polyester facility
90-91 91-92 92-93 93-94 94-95
at Hazira.
All critical equipment with
long-delivery schedules has
T h e c a s c a d i n g e f f e c t o f t h e r e a l G D P g r o w t h i n
been ordered and piling work is in progress. With the
developing countries immensely benefits producers of
completion of this project, Reliance will achieve self-
m a s s c o n s u m p t i o n i t e m s a n d R e l i a n c e i s w e l l
sufficiency in raw materials for polyester.
Partially Oriented Yarn Project (POY)
Construction work and equipment installation for the
country’s largest (120,000 TPA) POY plant is in an advanced
stage of completion. This will be India’s first fully
positioned to tak e advantage of this situation. The
Company is well entrenched in synthetic textiles,
p o l y e s t e r s a n d p l a s t i c s w h i c h a r e s u b s t i t u t e s f o r
c o n ventional mater ials T h e c o n s u m p t i o n o f t h e s e
products goes up with the increase in real income
growth. The capacity expansions of the late ’80s helped
Reliance to fully exploit the growing market of the early
’90s-j-The Company has already invested Rs.3263
crores (US$ 1036 millions) during the last 12 months in
fixed assets and plans to invest another Rs 3000 crores
(US$ 952 million) in the next 18 to 24 months.
New Polyester Complex
Construction work at the second polyester complex at
Hazir a is in full s wing. This is one of the w o r l d ’s
l a r g e s t e x p a n s i o n s i n v o l v i n g a f u l l y i n t e g r a t e d
manufacturing complex. New plants are being built to
manufacture PTA and MEG, which are the pr incipal
r a w m a t e r i a l s
f o r p o l ye s t e r. T h e
t o t a l n e w
1 4
Reliance Industries Limited
a u t o m a t e d p l a n t , i n c o r p o r a t i n g p r o v e n D u Po n t
NGL / Naphtha Cracker Project
technology, perfected by Reliance’s vast experience and
Representing a crucial link in the backward integration
state-of-the-art improvements
with modern computerised
c o n t r o l s a n d a u t o m a t i o n
systems.
PET Polymer Project
Reliance is installing India’s
only grass root PET bottle
g r a d e r e s i n p l a n t w i t h a n
installed capacity of 80,000
TPA This would be amongst
the 10 largest plants in the
World. It would be at least
30
25
20
15
10
5
0
c h a i n o f
t h e p e t r o c h e m i c a l b u s i n e s s
i s
t h e
EPS & CEPS
In Rs.
90-91
91-92
92-93
93-94
94-95
implementation of the NGL/
N a p h t h a C r a c k e r p r o j e c t
w h i c h i s f a s t p r o g r e s s i n g .
M e c h a n i c a l e r e c t i o n a n d
CEPS
EPS
construction activities are in
full swing. When completed
this will eliminate the imports
of Ethylene valued at over
R s . 1 2 0 0 c r o r e s ( U S $ 3 7 5
m i l l i o n ) , r e q u i r e d f o r t h e
Polymer and MEG plants.
four times larger than the existing combined capacities
of all the other plants in India The know-how for solid
state polymerisation which is the heart of the PET plant
is from SINCO plc. The modern trend is to move away
from glass bottles to much more hygienic, environment
friendly and less expensive PET bottles. Reliance
foresees tremendous growth potential for this product.
Polyester Staple Fibre (PSF)
Project Construction w o rk on the countr y ’s largest
polyester staple fibre plant is fast progressing The plant
with an installed capacity of 160,000 TPA of high tenacity
polyester staple is being built with DuPont technology
a n d m e c h a n i s e d b y G e r m a n d r a w i n g a n d b a l i n g
equipment. In this fully automated plant, computers will
Captive Power Plants (CPP) Project
Reliance is in the process of expanding the Captive
P ow e r C a p a c i t y a t H a z i r a a n d h a s a l r e a d y
commissioned successfully new Captive Power Plants
a t N a r o d a a n d Patalganga T h i s w i l l e n s u r e s e l f -
control ail processes starting from feeding of raw
sufficiency, reliability and stability of power supply and
material to the loading of final products into the trucks
optimum utilisation of steam
1 5
Reliance Industries Limited
Ship at Hazira jetty
1 6
Reliance Industries Limited
generated at low cost. It will increase the total captive
different grades of PP. An exhaustive survey of all PP
power generation at Reliance to 350 MW.
users has been completed and regular follow-up visits
Paraxylene Project-Jamnagar
the very first year of production.
Reliance has decided to build a new Paraxylene facility
To maintain its leadership position Reliance plans to
of 1.2 million TPA, a critical feedstock for PTA. This will
build an additional 350,000 TPA PP plant at Jamnagar.
are made to ensure that our products are accepted in
be the largest in the world and
w i l l r e c e i v e f e e d s t o c k f r o m
R e l i a n c e P e t r o l e u m L t d , a
C o m p a n y
p r o m o t e d b y
R e l i a n c e I n d u s t r i e s L t d . I t
proposes to use UOP Inter-
Amer icana technology.
%
20
18
16
14
12
10
Return on Net Worth
%
The plant will use Propylene
as feedstock from the Reliance
Petroleum refinery. With a PP
capacity of 350,000 T PA a t
Hazira and an additional plant
o f s a m e s i ze a t J a m n a g a r,
Reliance will be one of the
five largest world producers of
Polymer Projects
90-91
91-92
92-93
93-94
94-95
this versatile polymer in just 3
With liberalisation, there has
b e e n a s t r o n g d e m a n d
heralding an era of explosive
years’ time.
Polyethylene (PE) - Hazira
growth for all plastic products. Reliance is in the forefront
Reliance is implementing an additional 200,000 TPA
t o d e r i v e b e n e f i t s o f t h i s g r o w t h b y s u b s t a n t i a l
PE plant at Hazira in order to meet the growing demand.
expansion/implementation of new world class facilities.
The plant will use Sclair Tech Process for High Density
The new polymer projects being set up include 350,000
P o l y e t h y l e n e ( H D P E ) a n d L i n e a r L ow D e n s i t y
T PA p o l y p r o py l e n e p l a n t a t H a z i ra, 200,000 T PA
Polyethylene (LLDPE). Major ity of the piling wor k has
p o l y e t h y l e n e p l a n t a t H a z i r a, 350,000
T PA
b e e n c o m p l e t e d . T h e e n g i n e e r i n g a n d t e c h n i c a l
polypropylene plant at Jamnagar and a new 300,000
specifications for all the critical equipment with long
TPA PVC plant. With the completion of these facilities
delivery lead time have been finalised and the orders
Reliance’s polymer capacity will cross 1.7 million TPA.
have been placed.
Polypropylene (PP) - Hazira / Jamnagar
Polyvinyl Chloride (PVC)
D u r i n g t h e y e a r u n d e r r ev i ew, R e l i a n c e a c h i eve d
The global market has recorded a strong demand and
satisfactory progress in building the state-of-the-art
the Asia Pacific region is expected to see high growth
w o r ld scale 350,000 T PA PP plant at Hazira . T h e
r a t e s
f o r P V C . R e l i a n c e
i s w e l l p o s i t i o n e d ,
technology is based on UNIPOL
p r o c e s s o f U n i o n
C a r b i d e
Chemicals & Plastics Company
(USA) with John Brown Engineers
a n d C o n s t r u c t o r s L t d . ( U K ) a s
e n g i n e e r i n g
c o n t r a c t o r s A n
i m p o r t a n t l i n k i n t h e Po l y m e r
g r o u p , t h e P P p r o j e c t i s f a s t
nearing completion.
Product Application and Research
activities are underway to cater to
g e o g r a p h i c a l l y
a n d
t e c h n o l o g i c a l l y, t o m e e t t h e
surging demand in this region and
i s p l a n n i n g t o - j - s e t u p a n e w
300,000 TPA PVC plant. With the
post expansion PVC capacity of
300,000 T PA at Hazira and an
a d d i t i o n a l s i m i l a r s i z e p l a n t ,
Reliance will be among the top 10
PVC producers in the world with a
total capacity of about 600,000 TPA
1 7
Reliance Industries Limited
1 8
Reliance Industries Limited
Emerging Global Ranks
With the completion of the Phase II projects at Hazira
l
The Cracker project of Reliance will be the wor ld’s
largest multi-feed cracker with a capacity of 2.2
and the third petrochemicals complex at Jamnagar,
million TPA of various Petrochemical products.
Reliance will not only maintain its market leadership in
each of its products but will further enhance it by
l
Reliance will be the 10th largest Polyeth ylene
creating substantial capacities. With the implementation
producer in the world, increasing its production from
of the projects at the Hazira and Jamnagar complexes,
166,000 TPA to 400,000 TPA.
Reliance will emerge as a global player in a majority of
its product lines.
l
Reliance will be the 4th largest Polypropylene
producer in the world having a total capacity of
l
Reliance will be the 8th largest Polyester producer
700,000 TPA.
in the world, increasing its production from 200,000
TPA to 580,000 TPA.
l
R e l i a n c e w i l l b e
t h e 2 n d
l a r g e s t P u r i f i e d
Terephthalic Acid producer in the world, increasing
its production from 257,000 TPA to 1.6 million TPA.
l
R e l i a n c e w i l l b e t h e 4 t h l a r g e s t P a r a x y l e n e
producer in the world, increasing its production from
150,000 TPA to 1.35 million TPA.
l
Reliance will be the 10th largest Polyvinyl Chloride
producer in the world, increasing its production
from 187,000 TPA to 600,000 TPA.
The Hazira and Jamnagar complexes, when completed,
will see Reliance emerge as a major Global player in
all its products. This is tr uly an enviable achievement
for an Indian Company within a short span of 20 years.
The World’s best process technologies
converge at Reliance to drive its global scale
plants at peak performance year after year.
Technology Partners
Reliance has accessed the best of contemporary technologies from world over. Products manufactured by the Company
in India meet the same stringent quality standards as those of its technology partners anywhere in the world.
Business Groups
Technology Partners
Products
Polyester Fibre, Yarn & PET
El DuPont, USA
Fibre Intermediates
El DuPont, USA
Sinco, Italy
ICI, UK
UOP, USA
Polyester Staple Fibre (PSF)
Partially Oriented Yarn (POY)
Polyethylene Terephthalate (PET)
Purified Terephthalic Acid (PTA)
Paraxylene
ABB Lummus Crest. Netherlands Shell Process
Mono Ethylene Glycol (MEG)
Detergent Intermediates
UOP, USA
Linear Alkyl Benzene (LAB)
Polymers & Plastics
B.F. Goodrich, USA Presently Geon Company, USA
Polyvinyl Chloride (PVC)
DuPont, Canada Presently Novacor, Canada
Polyethylene Plant I
Novacor, Canada DuPont Process
Polyethylene Plant II
John Brown, UK UNIPOL Process
Polypropylene
Plastic Intermediates
Stone & Webster, USA .
Ethylene & co-products
Oil & Gas
Enron Oil & Gas, USA
Oil & Gas
1 9
Reliance Industries Limited
Exports
retains its leadership position in foreign exchange
Reliance has emerged as one of the top private sector
savings through indigenous production of polyester,
manufacturer-expor ters in India. The Company’s foreign
polymers, fibre intermediates and petrochemicals.
exchange earning through exports during the year
Foreign Exchange savings by the Company are the
1994-95 was Rs. 174 crores (US $ 55 million), a
highest in the country today. Reliance’s major thrust was
phenomenal g rowth of 190% over the last year’s expor t
always on building global size plants, accessing the
earning of Rs. 60 crores (US $ 19 million).
best technology in the world, wide product range,
prompt customer service and vertical integration.
In staple fibre exports Reliance has become a force
The Company’s operations have helped the nation save
to reckon with in international markets.
valuable foreign exchange to the tune of Rs.3770 crores
In the developed world, the Company has made a mark
over the previous year’s figure of Rs.2853 crores (US $
by consistently delivering products of outstanding quality.
906 million).
(US $ 1197 million) during the year; a growth of 32%
Forex Saving
Rs . in crores
4200
3200
2200
1200
200
90-91 91-92 92-93 93-94 94-95
Forex Earning
Rs . in crores
250
200
150
100
50
90-91 91-92 92-93 93-94 94-95
Reliance has developed new export markets for various
Taxes paid to Government
products as follows.
l
Development of new markets such as Italy, Kenya,
Malaysia, Hongkong and Brazil for marketing of
Reliance continues to be one of the highest contributors
to the exchequer in the form of various levies like Excise
‘REON’ brand PVC product .
duty and Customs duty etc. The Company contributed
Exports of premium quality staple fibre to USA, UK,
Rs.2147 crores (US $ 682 million) in the form of various
Kenya and Indonesia.
Exports of value added polyester yarn to UK, Spain,
France and Ger many.
taxes and duties in comparison with Rs.1391 crores
(US $ 442 million) paid last year, showing a growth of 54%
Exports of LAB to quality conscious customers in
Taxes & duties paid to the Goverment
l
l
l
l
Netherlands, UK, Japan and Spain.
Expor ts of premium brand ‘VIMAL’ worsted fabrics
to UK, France and Netherlands.
Foreign Exchange Savings
Majority of the products produced by Reliance would
h a v e b e e n i m p o r t e d t o I n d i a i f t h e y w e r e n o t
manufactured locally. The Company commenced local
production and today it
2 0
Rs . in crores
2500
2000
1500
1000
500
90-91 91-92 92-93 93-94 94-95
Employment
Reliance is one of the biggest job creators in the countr y.
The more we produce, the more jobs we create in
ancillaries, transport, units engaged in conversion of
goods i.e. plastic processors and handloom/powerloom
sectors. Economists say that each ton produced by
Reliance creates 10 new jobs throughout the nation -
an impressive number by any standard.
Research & Development
Reliance’s spirit of innovation and quest for knowledge
has constantly encouraged it to explore uncharted
terrains. The spirit of inquiry, research and development
h a s h e l p e d t h e C o m p a n y e x c e l i n p i o n e e r i n g
internationally recognised products.
R & D facilities of the Company are recognised by the
Department of Science and Technology, Government of
India Reliance has the most modern well equipped R & D
laboratories for all its product lines. The Company has put
Reliance Industries Limited
R & D activity is mainly focused in the field of polyester
f i l a m e n t y a r n , p o l y e s t e r s t a p l e f i b r e , p u r i f i e d
terephthalic acid and linear alkyl benzene. The stress
h a s b e e n o n p r o c e s s d e v e l o p m e n t , p r o c e s s
m o d i f i c a t i o n ,
p r o d u c t
d e v e l o p m e n t ,
e n e r g y
conservation, pollution control, import substitution and
technology upgradation.
Some of the important areas in which R & D is being
carried out by the Company are worth mentioning here:
l
Development of new and finer deniers for better
performance and improvement of fabric texture.
l
Production of octene grade LLDPE having superior
strength properties suited for liquid packaging for
the first time in India.
l
In-house process development and design for
manufacture of poly-coating chemical used in PVC
plant. Lab scale production was successful. Full
scale erection is in progress.
l
Pilot plant with non-HF alkylation catalyst for LAB
up a pilot plant in Patalganga to manufacture LAB using
production was commissioned
National Chemical Laboratory (NCL) patented eco-
l M i c r o f i l a m e n t a n d M u l t i f i l a m e n t p r o d u c t s a r e
friendly technology. This is a joint development effort
developed and commercialised.
with NCL The process promises to yield increased LAB
l
Dual finish system commissioned in PSF plant leading
production with better characteristics The present
to a saving in finish consumption by 3 kgs/ton.
technology worldwide uses hydrofluoric acid as a
l
Finishing of menswear leading to improved fabric
catalyst, which is highly corrosive. Once proven on a
hand and feel.
commercial scale, there is excellent potential for global
l
Development of new anti-static finish for upholstery
expor t of this NCL Reliance technology, besides the
fabrics
fact that by 2000 AD India itself is projected to be the
l
Development of various automotive textiles with
biggest global player in LAB
high light fastness
2 1
Reliance Industries Limited
Energy Conservation
The Patalganga facility is the first integrated Indian
Reliance is well aware of the fact that energy, like food
Petrochemicals and Fibres complex to be awarded
and water is a basic necessity of man’s very existence.
an ISO 9002 certificate.
For achieving greater energy conservation and higher
assessed during the same period.
efficiency, Reliance has used advanced technology
A t H a z i r a , i m p l e m e n t a t i o n o f I S O 9 0 0 2 Q u a l i t y
right from its inception and has built-in energy saving
M a n a g e m e n t S y s t e m i s u n d e r p r o g r e s s a n d t h e
concepts and schemes at the time of plant design.
certification by the accreditation agency is expected in
The Ministr y of Power, Govt of India awarded the First
the current year With the stringent quality measures,
Prize to RIL, Patalganga, for Energy Conservation in
the Petrochemical sector for the year 1994.
B y u s i n g n o n - c o n v e n t i o n a l e n e r g y a n d a d o p t i n g
measures for reduction of energy consumption, the
Company will be in a position to further reduce costs.
l
Due to modifications in existing machinery systems,
the Yar n Division at Naroda Unit could save an
overall 8 to 10% energy during the year 1994.
l
Co-generation plant for power generation and
s t e a m f r o m w a s t e h e a t o f G a s Tu r b i n e wa s
commissioned in a record time of less than l 2
months.
Quality
Quality is the key word at Reliance It is reflected not
only in the products but in the attitudes and operations
that contribute to the success of the Company Reliance
is committed to integ rating ‘ Total Quality’ in all its
activities. In the year under review, the Patalganga
c o m p l e x b e c a m e
t h e
f i r s t
i n t e g r a t e d
I n d i a n
Petrochemicals and Fibres complex to be aw arded
s e v e n I S O 9 0 0 2 c e r t i f i c a t e s . I n a u n i q u e a n d
exhaustive audit, 11 auditors worked 54 mandays at all
the seven plants simultaneously, a record effor t b y
an y cer tifying body These ISO cer tificates for our
processes cover largest volumes in terms of turnover
2 2
production of prime quality PVC increased to 98% and
the production of MEG reached the level of 100% on
specification.
The Te xtile Division under took impor tant steps to
improve the quality of products as well as range with a
special focus on suitings and home furnishings. As a
result of the intensive product development efforts,
many new high value range of products were introduced
during the year and distributed through the marketing
network.
Quality star ts at the design stage The design studio at
the Textile Division is considered to be the most modern
in this part of the world. It is equipped with state-of-the-
art textile CAD computers, scanners, plotters both for
printed and weaving designs.
Reliance Industries Limited
Customer Satisfaction
In the end, one human life is more important than
Reliance always tries to understand the needs of its
all the riches of the world.
customers and upgrades the quality of its products for
increased customer satisfaction. It ensures that the
customer gets the best out of its top ranking products. It
is always anticipating the needs of customers and
preparing to meet them.
l Gujarat State Safety Award for the Naroda complex
for the lowest disability injury index.
l
ATMA Safety Award (Award of Honour) from the
Ahmedabad Textile Mills Association for the Lowest
D i s a b l i n g I n j u r y I n d e x i n A u g u s t 1 9 9 4 . I t i s
The best test of customer satisfaction is through repeat
worthwhile to mention that we have been the sole
sales to existing customers and minimising the number
of lost customers. On both these benchmarks the
Company has achieved more than 97% performance.
w i n n e r o f t h i s a w a r d s i n c e 1 9 8 8 w h e n i t w a s
instituted.
Reliance’s Patalganga complex has completed more
than 20 million man-hours without losing time in injuries
and accidents.
Health & Safety
Reliance is in tune with man’s ever y need. Its main aim
is to create a better and safer environment for all It has
Environment
a clear and committed policy on Health & Safety. It keeps
itself abreast of the latest international standards and
practices in the field.
Per iodic medical check-ups are carried out at all the
Reliance believes that man is the trustee of nature. It is
our heritage and therefore it is our duty to preserve it
improve it and bequeath it to our children as a treasure.
The Company believes that prevention is better than
c u r e . T h e C o m p a n y ’s c o n c e r n f o r e n v i r o n m e n t i s
plants and offices Efforts are being made to create
reflected in its constant endeavour to eliminate pollution
awareness amongst employees about killer diseases
a n d c r e a t e a h e a l t h i e r e n v i r o n m e n t . E n v i r o n m e n t
like Cancer and AlDS.
R e l i a n c e I n d u s t r i e s L t d i s o n e o f t h e 3 0 s a f e s t
companies in the world The Company has won many
protection is an integral feature in all plant designs and
a comprehensive environment management includes
continuous monitoring of air and water pollution noise
pollution the disposal of industrial waste and the
n a t i o n a l a n d i n t e r n a t i o n a l a w a r d s f o r t h e s a f e t y
protection of local ecology
measures taken in their industrial complexes - a record
of sor ts for any Indian Company.
l
The Hazira Manufacturing Division has been awarded
l
British Safety Council - 5 Star rating for Hazira and
the Indian Merchants’ Chamber “Diamond Jubilee” Award
Patalganga sites.
l
British Safety Council - Sword of Honour for Hazira
and Patalganga sites.
l
National Safety Council USA - Award of Honour (the
highest award for safety) to Patalganga site.
l
National Safety Award to Hazira complex for the
l o n g e s t a c c i d e n t f r e e p e r i o d a w a r d e d b y t h e
Ministry of Labour, Gover nment of India.
l G u j a r a t S t a t e S a f e t y C o u n c i l S t a t e Fa c t o r y
Inspectorate Safety Award for Hazira Complex for
Best Safety Perfor mance - Petrochemicals categor y.
for outstanding contribution towards Control of Air and
2 3
Reliance Industries Limited
Water Pollution in Industr y for the y ear 1994.
Reliance is the only Company to receive this all-
India award.
l
Company has invested substantial resources for the
pretreatment of waste water at MEG and PVC
plants, leading to improved efficiency of effluent
treatment operation and reduced pollution load on
receiving bodies.
l
All sur prise sample checks done by the Pollution
Control Board were found to be well within the
quality standards.
l
Unique Oxygen dosing system in the aeration tank
to take care of effluent loads during “process upsets”
was commissioned .
World class eco-friendly clean technologies for
each plant process incorporates features like
maximum recycle, reuse and reduction of
pollutants at source. This reduces pollution and
helps to recover valuable raw materials. Effluents
are treated through physio-chemical and biological
steps and the treated water is utilized for irrigation
/ horticulture, thus conserving fresh water
Exhaustive monitoring schedules are followed for
safety, health and protection of air quality, ground
water and noise level.
Citation: Indian Merchants’ Chamber Award.
Reliance continues to ensure that the air, water and
other environmental standards are not only achieved
as per the norms but exceed prescribed norms by the
l
Continuous efforts to conserve process water
State Pollution Control Boards. Monitoring of plant and
t h r o u g h r e c y c l i n g . F i v e p e r c e n t r e d u c t i o n i n
ambient environment, as well as, of various effluents -
consumption has been achieved in 1994-95.
l
Changeover to improved
b u r n e r s fo r l o w N OX
generation.
At Reliance, responsible
care is a public commit-
ment. Because the welfare
of humanity concerns
us all.
l
I n s t a l l a t i o n o f Va p o u r
%
60
50
40
30
20
Equity Dividend
%
90-91 91-92 92-93 93-94 94-95
l i q u i d , g a s a n d s o l i d - t o
maintain a clean and safe
environment in and around
t h e
p l a n t s
i s
d o n e
continuously.
The Company has initiated a
comprehensive, internationally
r e n o w n e d
“ R e s p o n s i b l e
C a r e ” P r o g r a m m e a n d i s
committed to adhere to it.
Absor ption Chillers (VAC) thereby achieving a
Environment audits are being carried out at all the
s i g n i f i c a n t r e d u c t i o n i n C h l o r o f l u o r o C a r b o n s
plants of the company on a regular basis by recognised
(CFCs).
l
Substitution of sulphur rich fuel with cleaner fuel in
the heaters to reduce particulate matters and SO2
in gaseous effluents.
i n d e p e n d e n t a g e n c i e s l i k e N E E R I . A u d i t p r o c e s s
commences during the plant design stage. All these
efforts lead to continuous improvements, wherever
l
Integrated energy management to reduce overall
necessary to maintain some of the best environment
e n e r g y c o n s u m p t i o n l e a d i n g t o r e d u c t i o n i n
management practices.
gaseous effluent generation .
The responsibility rests on each one of us
to preserve the world for our children.
And their children to follow......
Social Responsibility and Community
Development
R e l i a n c e i s w e l l a w a r e o f i t s s o c i a l r e s p o n s i b i l i t y
a n d d e v o t e s i t s r e s o u r c e s t o w a r d s t h e c a u s e o f
Tree plantation and development of green belt in
c o m m u n i t y d e v e l o p m e n t . R e l i a n c e h a s c r e a t e d a
and around Patalganga industrial area.
f o u n d a t i o n w h i c h h a s
i n i t i a t e d c o m m u n i t y
Twenty percent of the treated effluents are used for horticulture.
d e v e l o p m e n t p r o g r a m m e m o d e l s i n r u r a l a r e a s
l
l
2 4
Reliance Industries Limited
through people’s par ticipation
development of these strategic assets. A number of
l
Community awareness programmes are organised
in nearby villages based on APELL developed by
UNEP in order to inculcate awareness amongst
development opportunities are provided within and
outside the country to ensure that our managers are
villagers on household safety electrical safety road
prepared for more challenging tasks in our emerging
safety and emergency preparedness.
complex business environment.
l
l
l
Drinking water is supplied in tankers to people in
nearby villages.
Training classes are conducted to improve various skills.
A part of the road which was severely damaged by
the flood has been reconstructed which not only
serves Reliance employees and employees of
nearby industries but also the villagers.
The Company has been helping to improve areas of
health education culture environment sports etc thus
raising the quality of life of its people through its Trust.
R e l i a n c e h a s a l s o b e e n h e l p i n g r e s t o r e I n d i a ’s
archaeological treasures in some areas. Along with
o t h e r i n d u s t r i e s f r o m p u b l i c a n d p r i v a t e s e c t o r s
Reliance has participated in a scheme of constructing
a w eir at Singanpur in Tapti. On completion of this
scheme during this year the city of Surat will meet its
increased requirement of drinking water. Industries will
receive water from the weir which is a more reliable
source than from the existing canal.
Our People
Today Reliance is truly considered an integrated society
where people from all walks of life and from every corner
of the countr y contribute to the Company’s growth. The
Company in turn nurtures and prepares them for
creating further inroads into the global village. It is fast
emerging as one of the best companies to work for in
the country Sri Harikumar Madhusudan (a workman in
Reliance today has human resource assets of around
the Yarn Division) received the Shram Bhushan award
12 500 people; 34000 of whom constitute the scientific
promoted by the Gujarat State Government comprising
and technical manpower. Ever y year we add over 450
a Shram Bhushan Certificate and a Cash Award.
young professionals who include engineers chartered
accountants management graduates and professionals
f r o m o t h e r d i s c i p l i n e s T h e av e r a g e a g e o f o u r
employees is 38 years.
The Reliance team is young in spirit, conscious of its
responsibilities and committed to creating assets that
the country can be proud of.
New Companies
Reliance Petroleum Ltd.
R e l i a n c e Pe t r o l e u m L t d . h a s a l r e a d y o b t a i n e d
Gover nment’s approval to expand the refiner y capacity
from the existing 9 million TPA to 15 million TPA When
completed this will be the largest grassroot refinery in
India and will be among the Wo r ld’s top 20 single
T h e s e m o t i v a t e d a n d w e l l t r a i n e d p e o p l e a r e t h e
stream refiner ies The products of this refinery will meet
b a c k b o n e o f o u r b u s i n e s s s u c c e s s . R e l i a n c e i s
and supplement the feedstock requirements of Reliance
investing in a big way in the training and
Industries thus adding value to the integration chain.
2 5
Reliance Industries Limited
Power Sector
The demand for power has been steadily increasing
during the last four decades. Reliance envisages a
huge potential for power generation by private sector
in view of the estimated shortage of 30,000 MW of power
by the year 2000. Reliance is the first Private Sector
Company to be selected by the Maharashtra State
Electricity Board (MSEB), for setting up a 410 MW Gas
Based Power Plant on a competitive bid basis. Similarly
Reliance has been shortlisted by the Delhi Electric
%
90
80
70
60
50
40
30
20
10
0
Compounded annual rate of growth
%
12 Years
5 Years
3 Years
Sales % Net Profit %
Supply Undertaking (DESU) for implementing 400-450
management of the resources. The compounded annual
MW Gas Turbine based Power Project at Bawana.
rate of growth (CARG) of the Company over the last 12
Reliance has also signed a MOU with Gujarat Electricity
years, 5 years and 3 years provides ample evidence of this.
Board (GEB) for setting up a 500 MW Power Plant at
Jamnagar, Gujarat, using feedstock from Reliances’s
refinery - another step in integration.
N e c e s s a r y a g r e e m e n t s w i t h t h e r e s p e c t i v e S t a t e
CARG
12 years
5 years
3 years
Sales %
Net Profit %
24.0
32.0
24.0
63.7
30.7
81.9
Electricity Boards and State Governments are being
Looking ahead
finalised and clearances are being obtained.
Reliance Assam Petrochemicals Ltd.
Reliance signed a Memorandum of Understanding with
the Government of Assam for the implementation of
When we look at the exceptional financial performance,
it is apparent that Reliance’s str ategy of ve r tical
integration, world size capacities and access to leading
technologies is paying dividends. We must serve our
the Assam Gas Cracker Project. Reliance has promoted
customers’ needs and help them succeed too. As the
a new Company called Reliance Assam Petrochemicals
demand continues to g r ow, the four fold capacity
Limited (RAPL) for this. When completed it will produce
increase in the next 2-3 years will serve us well, in terms
300,000 TPA of Ethylene, 300,000 TPA of Polyethylene
and 65,000 TPA of Oxoalcohols, based on ethylene and
propylene products from the gas cracker. The project
utilises associated gas available from the oil fields in
upper Assam. The availability of ver y competitively
priced feedstock is the major criteria for locating the
of strong cashflow and earnings, through all phases of
business cycles.
We believe that Reliance today is a Company that brings
value to customers, increases the long-term networth
of shareowners and respects the quality of life in all our
project in the State. The project is also eligible for a
locations. We look to the future with confidence and
Central subsidy besides all other benefits of industrially
thank you for shar ing that conviction with us. The future
backward areas. RAPL will also provide the group a
augurs well as the Company will scale new heights in
manufacturing base in eastern India for its polyolefins
the years to come, undoubtedly with the support and
business.
encouragement of our shareowners.
Reliance - Consistent Performer
Reliance enjoys a unique distinction among the Indian
Corporates as a very consistent performer in terms of
growth, asset creation and profitability through efficient
28.04.95
Bombay
2 6
Dhirubhai H. Ambani
Chairman
Reliance Industries Ltd.
Financial Highlights
Rs. in Crores
1994-95
1993 - 94 1992 - 93 1991 - 92 1990 - 91 1989 - 90
1985
1980
Reliance Industries Limited
* US $
Rupees
Sales
2 2 2 8
7 0 1 9
5 3 4 5
4 1 0 6
2 9 5 3
2 0 9 8
1 8 4 1
7 3 3
2 0 8
Total Income
2 2 7 5
7 1 6 6
5 4 6 1
4 1 7 4
2 9 9 5
2 1 0 5
1 8 5 6
7 3 8
2 1 0
Operating Profit
4 6 3
1 4 5 7
1 0 6 4
8 8 1
5 7 5
4 8 7
4 2 4
1 3 3
Depreciation
8 8
2 7 8
2 5 5
2 8 0
1 9 3
1 7 4
1 6 2
Profit After Tax
3 3 8
1 0 6 5
5 7 6
3 2 2
1 6 3
1 2 6
9 1
3 7
7 1
Taxes & Duties Paid
to the Govt
6 8 2
2 1 4 7
1 3 9 1
1 1 1 8
9 8 4
8 2 6
6 9 8
3 7 3
Equity Dividend %
Dividend Payout
5 5
6 3
5 5
5 1
1 9 9
1 3 8
3 5
8 5
3 0
4 8
3 0
4 6
3 0
4 6
Equity Share Capital
1 4 5
4 5 6
3 1 8
2 4 6
2 2 7
1 5 2
1 5 2
5 0
2 5
5 2
Reserves and Surplus
2 1 3 7
6 7 3 1
4 0 1 1
2 3 6 2
1 7 1 1
9 9 6
9 2 9
2 5 4
Net Worth
2 2 8 3
7 1 9 3
4 3 3 5
2 6 1 3
1 9 4 4
1 1 5 4
1 0 8 7
3 1 1
Gross Fixed Assets
2 6 6 4
8 3 9 0
5 1 3 2
4 6 4 1
4 3 1 4
2 1 8 6
1 9 9 9
7 3 6
Net Fixed Assets
2 0 9 0
6 5 8 5
3 6 0 0
3 3 6 8
3 3 3 8
1 4 8 3
1 4 6 9
6 0 7
Market Capitalisation
3 8 1 8
12027
10718
4 3 8 8
6 6 5 6
1 8 2 5
9 9 7
9 0 6
2 9
7
1 1
7 4
2 5
3
1 2
1 9
3 2
7 5
5 8
7 8
Ear ning Per Share-Rs.
Cash Earning
per Equity Share Rs.
.74+
.94+
23.4
18.1
13.1
7.2
8.3
6.9
13.8
9.3
29.5
26.1
24.5
15.7
19.7
16.6
21.1
15.0
Book Value - Rs.
5+
1 5 8
1 3 6
1 0 6
8 5
7 5
7 1
5 9
2 6
Debt: Equity Ratio
0.35:1
0.35:1
0.58:1
0.84:1
0.92:1
0.61:1
0.55:1
1.66:1
1.51:1
Number of Investors
4.3t
4 3
4 1
3 7
3 8
2 4
2 6
1 7
2.7
(In Lakhs)
Number of Employees
12500
12500
11873
11836
11935
11666
11355
9 0 6 6
6 6 4 6
* US $ in Millions
+ US $. 1 US $ = Rs. 31.5 (Reserve Bank of India rate as on 31.3.95)
+ In Millions
2 7
Reliance Industries Limited
India’s Largest Selling brands in their category
2 8
Directors’ Report
The Directors have pleasure in presenting the 21st Annual Report and the audited accounts for the financial year ended 31st March,1995.
Reliance Industries Limited
Financial Results
Gross profit before interest and depreciation
Less: Depreciation
Interest
Profit for the year
Add: Balance in Profit & Loss A/c.
Add: Investment Allowance
(utilised) Reserve written back
1994-95
1994-95
Rs. Crs.
US$ Mn*
Rs. Crs.
US$ Mn*
1457.41
278.24
114.32
1064.85
62.24
462.6
88.3
36.3
338.0
19.8
1064.26
255.19
233.58
575.49
54.40
27.75
337.9
81.0
74.2
182.7
17.3
8.8
Surplus available for Appropriation
1127.09
357.8
657.64
208.8
Appropriations:
Capital Redemption Reserve
Investment Allowance Reserve
Debenture Redemption Reserve
General Reserve
Recommended Dividend on
Preference and Equity Shares
5.50
---
30.50
800.00
200.17
1.7
---
9.7
254.0
63.5
---
6.70
30.50
419.02
139.18
Balance carried to Balance Sheet
90.92
28.9
62.24
1127.09
357.8
657.64
Dividends
---
2.1
9.7
133.0
44.2
19.8
208.8
The Directors recommend the following dividends (Subject to deduction of tax at source) for the financial year ended 31st March,1995, which
if approved at the forthcoming Annual General Meeting will be paid out of profits of the Company for the said year to all those Preference
Shareholders whose names appear on the Register of Preference Shareholders, as on 6th February, 1995 and Equity Shareholders whose
names appear on the Register of Members as on 30th June, 1995.
On Preference Shares
Dividends Rs. CrsDividend of Rs.15 per share on 5,50,000 Cumulative Redeemable
Preference Shares of Rs.100 each fully paid up.
On Equity Shares
i)
Dividend of Rs. 5.50 per Share on 31,99,45,057 Equity Shares of Rs.10 each fully paid up.
ii)
Pro-rata Dividend on 14,04,16,837 Equity Shares of Rs.10 each fully paid.
175.97
23.37
Rs. Crs
0.83
199.34
200.17
Private placement of equity with Indian Financial Institutions
During the year under review your Company made a private placement of equity with the three leading Indian Financial Institutions, Unit Trust
of India (UTI), Life Insurance Corporation of India (LIC) & General Insurance Corporation (GIC) and its subsidiaries, to part finance your
Company’s share in the Oil and Gas projects of Panna, Mukta & Tapti awarded to the RIL - Enron - ONGC Consortium by the Gover nment
of India. The private placement was completed at Rs.385 per share (US $12.2 per share). The Private Placement of Rs.945 crores (US $300
million) has added Rs.24 crores (US $7.6 million) to the Equity Capital and Rs. 921 crores (US $292.4 million) to the reserves.
Amalgamation of Reliance Polypropylene Ltd. (RPPL) and Reliance Polyethylene Ltd. (RPEL) with Reliance Industries Ltd.
In November 1994, a decision was taken to amalgamate RPPL and RPEL with your Company. The Board of Directors accepted the valuation
reports from two independent valuers, Messrs S.B.Billimoria & Co. Chartered Accountants, and Messrs Haribhakti & Co. Chartered Accountants.
The scheme of amalgamation was approved by the shareholders and creditors of all the three companies in the month of December,1994 and
was sanctioned by the Hon’ble High Court of the Judicature of Bombay in the month of January,1995.
Your Company will benefit from the two projects which are funded with equity and have a short gestation period. The amalgamation will create
synergies and help maintain your Company’s leading position in the polymer business. The amalgamation has
resulted in increase in Equity Share Capital of your Company by Rs.99 crores (US $ 31.4 million) and increase in reserves by Rs.603 crores
(US $ 191.4 million).
The commissioning of Polypropylene plant based on UNIPOL process of Union Carbide Chemicals and Plastics Company, USA and the
Polyethylene plant based on Sclair Tech process of Novacor, Canada, have been synchronized with the start-up of world’s
largest multifeed cracker project scheduled to be commissioned in 1996.
2 9
Reliance Industries Limited
Promise vs Performance (In Terms of Clause 43 of Listing Agreement)
Your Company has given following profitability projections in the Letter of Option dated 8th September, 1992 issued to the Debentureholders
- Series F for rollover of the debentures.
Particulars
Sales*
Gross Profit
Wtd.Ave. Equity
EPS (Rs.)**
1994 - 95
Projections
6,292
1,293
301
16.2
Rs. Crs.
Actual
7,019
1,457
362
29.4*
* Sales includes inter-divisional transfers.
** Based on weighted average equity share capital.
Reason
EPS has improved due to better margins and reduction in interest and depreciation charges.
Energy, Technology & Foreign Exchange
Information in accordance with the provisions of Section 217 (1 ) (e) of the Companies Act, 1956, read with Companies (Disclosures of
Particulars in the Repor t of Board of Directors) Rules, 1988 regarding conservation of energy, technology absorption and foreign
exchange earnings and outgo is given in the Annexure forming part of this report.
Subsidiary Companies
As required under Section 212 of the Companies Act, 1956, the audited statements of accounts, alongwith the report of the Board of
Directors of Devti Fabrics Limited, Reliance Industrial Investments and Holdings Limited and Reliance Petroproducts Limited and the
respective Auditors’ Report thereon for the year ended 31st March, 1995, are annexed.
Fixed Deposits
Deposits of Rs.1.29 crores due for repayment on or before 31st March, 1995 were not claimed by 2140 depositors as on that date. Of
these, deposits amounting to Rs.0.48 crore of 776 depositors have since been repaid.
Personnel
As required by the provisions of Section 21 7(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. However, as
per the provisions of Section 219(1 ) (b) (iv) of the Companies Act, 1956, the Report and Accounts is being sent to all shareholders of
the Company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary at
the Registered Office of the Company.
Directors
Shri M.L. Bhakta, Shri.N.R.Meswani and Shri.Y.P.Trivedi retire by rotation and being eligible, offer themselves for reappointment.
Industrial Relations
The Company continues its belief in preventive and predictive industrial relations and has developed each of its line supervisors to be
an Industrial Relations Manager to his team. During the period, industrial relations have been extremely cordial, and the management
thanks all the employees for their continued contribution towards the growth of the organisation.
Auditors and Auditors’ Report
Messrs Chatur vedi & Shah and Messrs Rajendra & Co. Auditors of the Company, hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received letters from them to the effect that their appointment, if made, would be within the
prescribed limits under Section 224 (1-B) of the Companies Act, 1956. Accordingly, the said auditors will be appointed as auditors of the
Company at the ensuing Annual General Meeting. The notes to the accounts referred to in the Auditors’ Report are self explanatory and,
therefore do not call for any further comments.
Acknowledgement
Your Directors would like to express their grateful appreciation for the assistance and co-operation received from the Financial Institutions
and the Banks, during the year under review.
Your Directors wish to place on record their deep sense of appreciation for the devoted services of the Executives, Staff and Workers
of the Company for its success.
For and on behalf of the Board of Directors
Bombay
Dated: 28th April, 1995
3 0
Dhirubhai H. Ambani
Chairman
Reliance Industries Limited
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
1. Reduction in boiler blow down rates.
2. Metallic fans replacement by hollow FRP blade fans for process and cooling towers.
3.
Impeller tripping for pumps in prefractionation section resulted in powersaving in LAB plant. 4 Simulation package utilised for
optimising distillation column operations in the petrochemical plants.
5. Replacement of LSHS with byß-ßproducts having higher calorific value as fuel for the boilers leading to higher efficiency and
reduction of NOX from boiler exhaust.
6. Reorientation of steam traps to save steam.
7. Detection of faulty steam traps on line by using portable electronic device and rectifying the same.
8. Recovery of ejector condensate to dirty condensate vessel.
9.
10. Ethylene terminal refrigeration system installed to utilise waste cold.
11. Reduction of polymerisation cycle time to improve production rates thereby reducing specific consumption of power.
12. Debottlenecking of steam condensate tank piping system to save steam/condensate loss.
13. Optimisation of air conditioning and humidification plants during monsoon and winter, major overhauling of chilling refrigeration
Insulation of polymeriser jacket/chilled water lines to conserve power.
compressors and air washers to get designed output of refrigeration capacity.
14. Modification of dyeing cycle timing to reduce steam consumption.
15.
16. All the steam boilers and thermopacks burners tuned to achieve best combustion and designed thermal efficiency.
Improvement in water management system.
( b ) Additional Investments and Proposals, if any, being implemented for reduction in consumption of Energy
Installation of a back pressure turbine.
Installation of advance process control system.
LAB plant prefractionation stripper side cut recovery operation for better heat integration.
Installation of air preheaters for hot oil heaters.
Steam condensate preheating by integration with process plants leading to reduced steam consumption in deaerators.
Flash steam recovery from boiler blow downs.
Installation of vapour absorption chiller utilising waste LP steam.
1.
2. Replacement of conventional shell and tube type combined feed exchanger in LAB plant by plate type exchanger.
3. Optimization of recycle paraffin pumping system.
4.
5.
6.
7.
8.
9.
10. Lube oil recovery from gas turbine oil console vent.
11. Advanced simulation package for optimising distillation column operations.
12. Usage of low pressure steam in dehydrator reboiler of MEG plant.
13. Provision of demister pad in CO2 stripper and recycle of overhead water.
14. Provision of restriction orifice in nitrogen consumption lines to minimise LP N2 consumption.
15. Changeover from trap system to condensate pot system for product flasher reboiler.
16. Gas firing system in dryer installed.
17. Plant air compressor installation to reduce power consumption by keeping spare instrument air compressor as standby.
18.
Installation of common onß-ßline gas chromatograph for four distillation columns’ top/bottom product analysis so as to minimise
utility consumption while maintaining product specification.
19.
Installation of an onß-ßline O2 and CO analyser for EDC furnace stack which will facilitate monitoring the furnace efficiency.
20. Change in steam generation pressure in incinerator from medium pressure(16 kg/cm2(g)) to intermediate pressure (7.5 kg/cm (9)).
21. Local pneumatic controller in refrigeration compressor to be brought to DCS for optimal control.
22. FRP fans for air conditioning, air cooling and cooling towers is proposed to be installed for major power saving in addition to
installation of additional air curtains for saving in electrical energy.
23. Use of flash steam in jiggers and open winches through flash vessel.
24.
Inter departmental steam and water line distribution system modifications for optimum flow and minimum pressure drop.
25. Optimisation of electrical power consumption through detailed study of motors, drives and installation of capacitors to improve
power factor.
26. Temperature controllers for stenters and jiggers.
27. Solar hot water system for guest house. (Utilisation of non conventional energy.)
(c) Impact of Measures at (a) and (b) above for reduction of Energy consumption and on the Cost of Production of Goods
1. Optimised boiler blow down would result in saving of Rs.30 lakhs p.a.
2. Replacement of aluminium blades by hollow FRP blades would lead to savings of Rs.40 lakhs p.a
3.
Steam integration through backß-ßpressure turbine would lead to saving of Rs.560 lakhs p.a.
4. Replacement of existing combined feed exchanger in LAB plant would result in saving of Rs.220 lakhs p.a. in terms of fuel only.
5.
6.
Prefactionation stripper side cut recovery operation for better heat integration will save Rs.90 Iakhs p.a.
The air preheater for dow heater would lead to savings of Rs.10 lakhs p.a.-j-î 7 Preheating of steam condensate by integration
with process plant would save low pressure steam requirement to the tune of Rs.374 lakhs p.a.
Flash steam recovery from boiler blow down would result in savings of Rs.166 lakhs p.a.
Vapour absorption chillers using waste low pressure steam would saveRs.250 lakhs p.a. in ter ms of electrical power.
8.
9.
10. Steam saving as a result of optimal distillation columns’.operation is estimated at Rs.7 lakhs p.a.
11. Fuel gas saving as result of onß-ßline O2 and CO analyser estimated at Rs.2.5 lakhs p.a.
3 1
Reliance Industries Limited
Insulation of polymeriser jacket/chilled water lines resulted in power savings of 2.8 lakh units p.a.
12. Savings due to steam generation level change in incinerator is estimated at Rs.3 lakhs p.a.
13.
14. Recovery of waste cold in ethylene terminal results in power saving to the tune of 27 lakh units p.a.
15.
Installation of new plant air compressor as substitute to the existing air compressor will result in power savings of 9.4 lakh
units p.a.
16. Debottlenecking of steam condensate tank piping system resulted in saving of about 3MT/h of LP steam and 5MT/h of
17.
condensate.
Improvement in water management system including recover,v resulted in conserving 70 M3/Hr of water and electrical
power of 50 KWh. This resulted in saving of Rs.29 lakhs p.a.
B. Technology Absorption
Form - ‘B’
Form for Disclosure of particulars with respect to
Research and Development(R & D)
1.Specific Areas in which Research and Development (R&D) is being carried out by the Company
i) Development of new and finer deniers for better performance and improve fabric texture.
ii) Development of special staple fibre with specific denier and high luster with good tensile properties.
iii)
iv) Substitution of catalysts and chemicals with new or from alter nate source without affecting quality, yield and other related
Improvement in specific consumption of catalyst, additives in petrochemicals processes.
parameters.
v ) Research and development activity is mainly focused in the field of polyester filament yarn, polyester staple fibre, purified
terephthalic acid,and linear alkyl benzene. The stress has been on process development,process modification, product
development, energy conservation, pollution control, import substitution and technology upgradation.
vi) Production of octene grade LLDPE having superior strength properties suited for liquid packaging for the first time in India.
vii) Production of UV stabilised injection moulding grades suitable for manufacturing crates.
viii) Production of oriented structure grade HDPE suited for monofilament applications.
ix) Superior additive package for improved HDPE processing.
x ) Antiß-ßfoaming agent for emulsifier and ATSC indigenised by vendor development.
xi) Finishing of menswear leading to improved fabric hand and feel.
xii) Development of worsted fabrics with speciality fibres like Angora,Mohair and Camel Hair etc.
xiii) Development of new antiß-ßstatic finish for upholstery fabrics.
xiv) Development of various automotive textiles with high light fastness.
2.
Benefits derived as a result of the above R&D
( a ) Product Development improvement
i) New deniers like ß-ß 100/54/TL/BR/FLAT, 470/68/POY, 150/68/TLBX/FLAT, 155/34/SD/POY, 310/68/SD/POY, 255/34/POY, 30/27/
TL/BR/FLAT, 50/27/TL/BR/FLAT have been developed for achieving better performance and modified texture of the fabric.
ii) Process developed for 260/68/POY for specific export requirement.
iii) Development of low denier per filament viz.68/68/SD/POY,115/108/SD/POY have been successfully completed. Performance at
texturiser/draw twister end has been found satisfactory.
iv) Modification of spinß-ßfinish application system to optimise the finish pick up.
v ) Quench system modification for better and uniform yarn properties and ultimately improving the performance of yarn runability at
users end.
vi) Reduction in frictional behaviour with respect to yarn to guide friction by introducing additional ‘O’ guide to improve quality of
polyester staple fibre.
Introduction of superheated steam chest to improve crimps per centimetre property of the staple fibre.
vii)
viii) Conversion to D.C drive on feed module for consistent fibre properties.
ix) Recovery of solids from PTA mother liquor to improve effluent characteristic and recover PTA from it.
x ) Pilot plant trials and studies to establish performance of ecoß-ßfriendly catalyst.
xi) Use of different spin finishes to improve polyester staple fibre quality so as to give improved performance at down stream
processing in textile mills. xii) Improvement of hand and feel of menswear.
xiii) Produced high value fabrics for menswear.
xiv) Wider acceptance of automotive textiles.
( b )
Import Substitution
i)
ii)
iii)
Indigenous silicon spray cans for spinnerette wiping.
Indigenous development of a new draw steam jet.
Indigenously developed cutter blades to replace imported blades. Performance of these blades found satisfactory.
3.
Future Plan of Action
Projects Proposed for the following
Increase in acid regeneration capacity to improve LAB quality.
Improvement of polymer quality by introduction of continuous polymer filter.
i) Development of fully drawn yarn for direct use in weaving or knitting.
ii)
iii) Replacement of mechanical seal .for finisher to avoid air leaks and to improve polymer quality.
iv) Development of multilobal profile filament yarn for fancy effects.
v) Modification in kerosene stripper column to improve the return kerosene quality.
vi)
vii) Recovery of high value normal pentane from low value byß-ßproduct of paraxylene.
viii) Pilot scale reactor installation to study oxidation reaction in PTA plant.
ix) Water recycle and recovery from treated effluent to be used in cooling tower.
x )
xi) Recycle of low value glycols to convert to high value glycols.
xii) DEG to TEG conversion scheme under implementation.
Introduction of specially~designed quench system for filament yarn.
3 2
Reliance Industries Limited
xiii) New EO column proposed for enhanced capacity of pure EO.
xiv) Debottlenecking of plant for increase in productivity.
x v ) Utilisation of ethylene vent from HDPE plant as feed to oxyß-ßreactor.
xvi) Use of a new catalyst oxy-III for enhancing efficiency of EDC production.
xvii) Further reduction in EDC losses in wet and dry by-products.
xviii) Optimisation of furnace cracking severity to maximise throughput while reducing undesired by-product formation by using furnace
modelling software.
xix) Using an on - line simulator-optimizer for complete plant which will maximise throughput and minimise specific consumption while
taking into account the constraints in various sections.
xx) Use of frontß-ßend catalyst, injection water chilling and other debottlenecking measures to achieve higher production levels.
xxi) Optimisation of catalyst, deactivator, alumina consumption and reduction of same by using alternate co-catalyst.
xxii) Development of more efficient grades of alumina through vendors for improved product quality.
xxiii) Development of high flow HDPE grades suited for thin - walled containers for food grade packaging.
xxiv)
Implementation of world class manufacturing strategies through Computer Integrated Manufacturing (CIM), Advanced Process
Control (APC) etc.would result in higher productivity, improved product qualities, reduced cost of production and increased overall
business efficiency.
x x v ) Development of new process to produce silk - like finish on polyester dress material fabrics.
xxvi)
xxvii)
Instrumental evaluation of menswear fabrics to improve tailor ibility.
Improvement of stability of warp knitted velours.
4.
Expenditure on R&D
( a ) Capital
Recurring
Total
( b ) Total R&D expenditure as percentage of total turnover 0.4%
Technology absorption, adaptation and innovation
Rs. Crs
1.42
27.42
28.84
Efforts in brief, made towards technology absorption adaptation and innovation and benefits derived as a result thereof
FDY for direct use at weaving and knitting.
Continuous polymer filter introduced for better polymer quality.
Fancy effects with multilobal profile filament yarn.
New finish oils for specific end uses of PFY & PSF.
Kerosene stripper column introduced to improve return stream quality.
Improvement in LAB quality through increase in acid regeneration capacity.
Installation of pilot scale reactor to study oxidation reaction in PTA plant.
Specially designed quench system to be introduced for filament yarn.
Cooling media in jackets of plant poly reactors of both the lines converted to chilled water to increase productivity.
Components of slurry stripping column changed to increase the efficiency.
DEG to TEG conversion scheme being implemented.
Low value gycols for recycle to convert to high value gycols.
(i)
(ii)
(iii)
(iv)
( v )
(vi)
(vii)
(viii)
(ix)
( x )
(xi)
(xii)
(xiii) New oxyß-ßIII catalyst used for enhancing production efficiency.
(xiv) Computer integrated manufacturing and advanced process control systems being implemented for higher productivity, improved
product qualities, cost control and increased business efficiency.
( x v ) New process being developed to produce silkß-ßlike finish on polyester dress material.
Information regarding imported technology
Product
Technology from
Mono Ethylene Glycol
Poly Vinyl Chloride
High Density
Polyethylene
Shell (Lummus Crest
B.V. Holland)
B.F. Goodrich (USA)
(Presently Geon Co., (USA)
DuPont (Canada)
(Presently Novacor, Canada)
C.
Foreign Exchange Earnings and Outgo
Year of
import
1989
1988
1989
Status of
implementation/
absorption
Full
Full
Full
1. Activities relating to Exports, initiatives to increase Exports,Developments of new Exports Market for Products and
Services and Export Plan.
The Company has significantly increased expor ts from Rs.60 crores (US $ 19 million) to Rs.174 crores (US $ 55 million)
during the year by focussing on value added quality exports.
a. Development of new markets such as Italy, Kenya, Malaysia, Hongkong,Brazil for marketing of ‘REON’ brand PVC product
b.
c.
d.
e.
Exports of premium quality staple fibre to USA, UK, Kenya, Indonesia.
Exports of value added polyester yarn to U.K., Spain, France, Germany.
Exports of LAB to quality conscious customers in Netherland, U.K. Japan,Spain.
Export of premium brand ‘VIMAL’ worsted fabrics to U.K., France,Netherland.
2.
Total Foreign Exchange used and earned.
a)
b)
c )
Total foreign exchange earned
Total savings in foreign exchange through products manufactured by the
Company and deemed exports (US $1197 million)
Sub total (a+b)
Total foreign exchange used
Rs. Crs
205.81
3770.00
3975.81
1710.82
3 3
Reliance Industries Limited
Form ‘A
’Form for disclosure of par ticulars with respect to Conservation of Energy.
April ’94 to
March’95
April ’93 to
March’94
3722.76
107.44
2.89
561.78
3.57
2.57
6306.45
3.78
1.05
---
---
---
252928.40
136.97
5.42
28493.81
19.40
6.81
192934.00
36.35
1884.31
3621.18
94.15
2.60
506.75
3.51
2.66
6487.78
3.63
1.32
---
---
---
229437.29
115.34
5.03
14693.78
8.30
5.65
190545.00
32.78
1720.52
Part ‘A’
Power & Fuel Consumption
1.
Electricity
a) Purchased Units (Lakhs)
Total Cost (Rs. in crores)
Rate/Unit (Rs.)
b) Own Generation
1 ) Through Diesel Generator
Units (Lakhs)
Units per Lts. of fuel
Cost/Unit (Rs.)
2)
Through Steam Turbing/Generator
Units (Lakhs)
Units per unit of fuel
Cost/Unit (Rs.)
2. Coal
Quantity (tonnes)
Total Cost (Rs. in crores)
Average Rate per MT (Rs.)
3.
Furnace Oil
Quantity (K. Ltrs.)
Total cost (Rs. in crores)
Average Rate per Ltr. (Rs.)
4. Diesel Oil
Quantity (K. Ltrs)
Total cost (Rs. in crores)
Rate/Unit per Lts. (Rs.)
5. Others
Gas Quantity (1000M3)
Total cost (Rs. in crores)
Rate/Unit per 1000M3 (Rs.)
Part ‘B’
Consumption per Unit of Production
FABRICS
Per 1000 Mtrs.
Current Previous
Year
Year
PFY
Per MT
Current Previous
Year
Year
PSF
Per MT
Current Previous
Year
Year
PTA
Per MT
Current Previous
Year
Year
LAB
Per MT
Current Previous
Year
Year
MEG
Per MT
Current Previous
Year
Year
PVC
Per MT
Current Previous
Year
Year
HDPE
Per MT
Current Previous
Year
Year
Electricity (KWH)
049
1010
1309
1317
Furnace Oil (Ltrs)
Coal (Kgs)
Gas (SM3)
LSHS (Kgs)
6
---
388
4
6
---
406
6
138
169
---
---
37
---
---
24
699
155
---
---
42
700
177
---
---
26
374
375
28
---
---
11
---
---
325
115
---
---
126
145
219
348
336
---
---
32
899
893
450
454
217
252
---
---
18
---
---
---
18
---
---
---
121
---
---
---
126
---
---
---
36
---
---
---
41
---
Note: The above figures indicate only the direct consumption and exclude consumption of power and fuel in the supporting utilities.
3 4
Auditors’ Report
To the Members of Reliance Industries Limited
Reliance Industries Limited
2.
We have audited the attached Balance Sheet of Reliance Industries Limited as at 31st March, 1995 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 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)
The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of account.
c)
In our opinion and to the best of our information and according to explanations given to us, the said Balance Sheet and Profit and Loss Account read
d)
together with the Significant Accounting Policies and other notes thereon give the information required by the Companies Act 1956, in the manner so
required and give a true and fair view:
in so far as it relates to Balance Sheet of the state of affairs of the Company as at 31st March, 1995; 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.
i)
ii)
Bombay
Dated: 28th April, 1995
Annexure to Auditors’ Report
Referred to in paragraph 1 of our report of even date
For Chaturvedi & Shah
Chartered Accountants
D. Chaturvedi
Partner
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information
available except in respect of certain items of furniture and fixtures. 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.
None of the fixed assets have been revalued during the year.
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, stores and spares and finished
goods having regard to the size of the operations of the Company and the same have beenß-ßjß-ßproperly dealt with in the books of account.
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 except as stated in note no. “G” of Schedule ‘N’ to accounts.
The Company has not taken any loans, secured or unsecured from companies, firms or other parties listed in the register maintained under Section 301 of the
Companies Act, 1956, or from companies under the same management within the meaning of sub section (1 B) 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 register maintained under Section 301 and/
or to the companies under the same management as defined under sub-section (1 B) of Section 370 of the Companies Act, 1956, except interest free loans
to its subsidiary companies. Attention is invited to Note No. 10 of Schedule ‘O’ to the accounts. In our opinion, having regard to the long term involvement
with the subsidiary companies and considering the explanations given to us in this regard the terms and conditions of the above are not, primaßß-ßßfacie,
prejudicial to the interests of the Company.
In respect of the loans and advances in the nature of loans given by the Company to parties other than subsidiary companies mentioned above, they are
generally repaying the principal amounts as stipulated and are also regular in the payment of interest.
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 purchases 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,
13.
raw materials and finished goods. Adequate provision has been made in the accounts for the loss arising on the items so determined.
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A of the
Companies Act,1956 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.
14.
15.
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 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,1995, for a period of more than six months from the date of becoming 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 obligation 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
21.
Provisions) Act, 1985.
In respect of trading activities, we are informed that the Company does not have damaged goods lying with it at the end of the year. Therefore, no provision
for any loss is required to be made in the accounts.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Bombay
Dated: 28th April,1995
D. Chaturvedi
Partner
R.J. Shah
Partner
3 5
Reliance Industries Limited
Balance Sheet as at 31st March, 1995
Sources of Funds
Shareholders’ Funds
Share Capital
Reserves and Surplus
Loan Funds
Unsecured Loans
Total
Application of Funds
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work-in-Progress
Investments
Current Assets, Loans and Advances
Current Assets
Interest accrued on Investments
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Schedule
‘A’
‘B’
‘C’
‘D’
‘E’
‘F’
‘G’
‘H’
Less : Current Liabilities and Provisions
‘I’
Current Liabilities
Provisions
Net Current Assets
Total
Significant Accounting Policies
Notes on Accounts
‘N’
‘O’
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
461.36
6,731.29
2,117.25
822.67
5,315.40
1,805.78
3,509.62
3,075.09
8.76
662.56
541.20
366.79
1,579.31
1,371.61
2,950.92
1,194.90
201.57
1,396.47
323.82
4,011.07
7,192.65
4,334.89
1,898.39
761.11
2,939.92
10,132.57
2,659.50
6,994.39
4,737.72
1,532.68
3,205.04
394.60
6,584.71
1,993.41
3,599.64
1 ,990.18
11.35
584.64
593.53
96.34
1,285.86
1,244.59
2,530.45
986.25
139.63
1,125.88
1,554.45
10,132.57
1,404.57
6,994.39
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D.H. Ambani
Chairman
M.D. Ambani
Vice Chairman & Managing Director
D. Chaturvedi
Partner
R.J. Shah
Partner
Bombay
Dated: 28th April, 1995
3 6
A.D. Ambani
Managing Director
N.R. Meswani
Executive Director
S.S. Betrabet
U. Mahesh Rao
R.H. Ambani
N.H. Ambani
M.L. Bhakta
T. Ramesh U. Pai
Y.P. Trivedi
Nominee Directors
Directors
V.M. Ambani
Secretary
Profit and Loss Account for the year ended 31st March, 1995
Reliance Industries Limited
1994-95
1993-94
Rs.
Rs.
Rs.
Rs.
Rs. Crs
Income
Sales
Other Income
Variation in Stock
Expenditure
Purchases
Manufacturing and Other Expenses
Depreciation
Schedule
‘J’
‘K’
`M’
Less: Pre-operative expenses of projects under commissioning
23.68
5,726.16
278.24
6,142.40
36.89
Profit for the year
Add: Balance brought forward from last year
Add: Investment Allowance (Utilised) Reserve Written Back
62.24
---
Amount available for Appropriations
Appropriations
Capital Redemption Reserve
Investment Allowance Reserve
Debenture Redemption Reserve
General Reserve
Proposed Dividend (subject to tax):
Preference Shares
Equity Shares
Balance carried to Balance Sheet
Significant Accounting Policies
Notes on Accounts
‘N’
'O'
5.50
---
30.50
800.00
0.83
199.34
7,018.78
147.40
4.18
7,170.36
6,105.51
1,064.85
62.24
1,127.09
5,345.18
116.00
25.65
5,486.83
4,911.34
575.49
82.15
657.64
53.65
4,373.44
255.19
4,915.86
4.52
54.40
27.75
---
6.70
30.50
419.02
0.83
138.35
1,036.17
90.92
595.40
62.24
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D.H. Ambani
Chairman
M.D. Ambani
Vice Chairman & Managing Director
D. Chaturvedi
Partner
R.J. Shah
Partner
Bombay
Dated: 28th April, 1995
A.D. Ambani
Managing Director
N.R. Meswani
Executive Director
S.S. Betrabet
U. Mahesh Rao
R.H. Ambani
N.H. Ambani
M.L. Bhakta
T. Ramesh U. Pai
Y.P. Trivedi
Nominee Directors
Directors
V.M. Ambani
Secretary
3 7
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule’A’
Share Capital
Authorised:
55,00,00,000
(35,00,00,000)
(30,000)
5,50,000
3,00,00,000
14,45,00,000
(4,42,00,000)
Equity Shares of Rs. 10 each
11% Cumulative Redeemable Preference
Shares of Rs. 100 each
15% Cumulative Redeemable Preference
Shares of Rs. 100 each
Preference Shares of Rs. 100 each
Unclassified Shares of Rs. 10 each
Issued: Equity
46,03,69,802
(31 ,99,52,965)
Subscribed: Equity
Equity Shares of Rs. 10 each
46,03,61,894
(31,99,45,057)
Equity Shares of Rs. 10 each fully paid up
Less: Calls in arrears - by others
Add: Shares forfeited
(Amount originally paid on 7,908 Equity
Shares Rs. 39,540)
Issued & Subscribed: Preference
5,50,000
15% Cumulative Redeemable Preference
Shares of Rs. 100 each fully paid up
(Redeemed on 1st April, 1995)
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
550.00
---
5.50
300.00
144.50
1 ,000.00
460.37
350.00
0.30
5.50
---
44.20
400.00
319.95
460.36
4.50
455.86
---
319.95
1.63
318.32
---
455.86
318.32
5.50
461.36
5.50
323.82
Of the above Equity Shares:
1.
( a )
1,56,80,100
( b ) 18,05,78,290
(8,10,02,375)
( c ) 20,31 ,22,664
Shares were allotted as Bonus Shares by capitalisation of Premium and Reserves
Shares were allotted pursuant to Schemes of Amalgamation without payments being received in cash.
Shares were allotted on conversion/surrender of Debentures, conversion of Term Loans, exercise of
(18,68,27,192) Warrants and against Global Depository Shares (GDS).
( d )
4,060
Shares (including 2,475 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’, which was amalgamated with the Company.
2. Refer Note 2(c)(vii) of Schedule C and Note 1 of Schedule D in respect of option on unissued share capital.
3 8
Schedules forming part of the Balance Sheet
Schedule ’B’
Reserves & Surplus
Capital Reserve
As per last Balance Sheet
Add: On Redemption of Debentures
Capital Redemption Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Amalgamation Reserve
As per last Balance Sheet
Add: Net Surplus resulting from amalgamation of Reliance Polyethylene
Limited (RPEL) and Reliance Polypropylene Limited (RPPL)
Less: Transferred to Share Premium Account
Share Premium Account
As per last Balance Sheet
Add:Received during the year
Acquired on Amalgamation of RPEL and RPPL
Transferred from Amalgamation Reser ve
Less: GDS Issue Expenses
Less: Calls in arrears
Debenture Redemption Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Investment Allowance Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Less: Utilised for purchase of machinery during the year and
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
Taxation Reserve
As per last Balance Sheet
General Reserve
As per last Balance Sheet
Add:Acquired on Amalgamation of RPEL and RPPL
Transferred from Profit and Loss Account
Profit and Loss Account
Reliance Industries Limited
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
0.24
0.34
0.30
5.50
674.47
244.78
919.25
919.25
2,312.62
1,266.42
325.42
919.25
4,823.71
---
4,823.71
25.31
111.25
30.50
6.70
---
6.70
6.70
294.65
6.70
301.35
---
550.00
32.49
800.00
0.58
5.80
0.24
---
0.30
---
674.47
---
674.47
---
0.24
0.30
---
674.47
1,088.25
1,253.30
---
---
2,341.55
28.93
2,312.62
11.40
4,798.40
2,301.22
80.75
30.50
92.00
6.70
98.70
92.00
230.40
92.00
322.40
27.75
130.98
---
419.02
141.75
---
301.35
10.00
1,382.49
90.92
6,731.29
111.25
6.70
294.65
10.00
550.00
62.24
4,011.07
3 9
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘C’
Secured Loans
A) Debentures
1. Convertible Debentures
2. Non-Convertible Debentures
Less Calls in arrears
B) Term Loans
1.
2.
From 8anks
a)
b) Rupee Loans
Foreign Currency Loans
From Financial Instutions
a)
b) Rupee Loans
Foreign Currency Loans
C) Working Capital Loans
From Banks
D) Deferred Payment Liabilities
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
---
1,273.04
1,273.04
6,48
17.47
142.80
1 60.27
275.43
9.36
284.79
1.13
1,220.98
1,222.11
18,61
1,266.56
1,203.50
26.53
---
26.53
515.28
11.44
526.72
445.06
553.25
405.63
---
2,117.25
134.79
685
1,898.39
Notes :
1.
( a ) Term Loans referred to in B(2) (a) to the extent of Rs 92.33 crores are secured/to be secured by mortgage of deposits of title
deeds on the properties situated in naroda, District Ahmedabad in the State of Gujarat and at Patalganga, District Raigad in the
State of Maharashtra.
( b ) Term Loans referred to in B(2)(a) to the extent of Rs 52.67 crores and term loans referred to in B(2)(b) are secured by mortgage
a deposit of the title deeds on the properties situated at Patalganga, District Raighad in the State of Maharashtra and are to be
secured by mortgage of deposit of the title deeds on the properties situated at Naroda, District Ahmedabad in the State of
Gujarat.
( c ) Term Loans referred to in B(1)(a) are secured by guarantee issued by one of the Bankers of the Company against hypothecation
of all movable assets both present and future situated at Naroda and Patalganga and B(1)(b) are secured by pledge of units.
( d ) Term Loans referred to in B(2)(a) to the event of Rs 13.16 crores are secured by an exclusive charge by way of hypothecation
of specific items of machinery (e) Term Loans referred to in B(2) (a) to the extent of Rs 117.27 crores are secured by first
charge by way of hypothecation of movable assets and first mortgage / charge on all the immovable assets of the Plastics and
Petrochemicals Division of the Company situated at Hazira, District Surat, in the State of Gujarat .
2.
( a ) Debentures referred to in A(2) to the extent of Rs 1,219.71 crores are secured/to be secured on the properties of the Company
situated at Naroda, District Ahmedabad in the State of Gujarat and at Patalganga, District Raigad in the State of Maharashtra.
( b ) Debentures referred to in A(2) to the extent of Rs 53.33 crores are secured by way of second and subsequent charge created
by legal mortgage in English form on the properties situated at Naroda, District Ahmedabad in the State of Gujarat.
( c ) Debentures referred to in A(2) consists as under: (i) 15% Debentures of Rs. 100 each aggregating Rs 269.75 crores are
redeemable at par on 31st August 1999. (ii) 13.5% Debentures of Rs 100 each aggregating Rs 53.33 crores are redeemable at
par on 10th December 1996 (iii) 14% Debentures of Rs 100 each aggregating Rs 11.50 crores are redeemable at a premium of
5% of the face value of the said debentures on 19th June, 1995 (iv) 14% Debentures of Rs.100 each aggregating Rs.82.50
crores are redeemable at a premium of 5% on the face value of Debentures between sixth and eighth year from the date of
allotment in equal instalments. The redemption will commence from March,1997 (v) 12.5% Debentures of Rs.95 each aggregating
Rs. 345.12 crores, 14%Debentures of Rs.150 each aggregating Rs. 130 67 crores and 17.5% Debentures of Rs. 100 each
aggregating Rs. 132.67 crores will be redeemed at the expiry of 10 years from the date of allotment i.e. 2002 with an option to
the Board to redeem at anyß-ßjß-ßtime after 26th February 1999. (vi) 18% Debentures of Rs.100 each aggregating Rs. 60
crores will be redeemed in 3 equal annual instalments on the expiry of sixth, seventh and eighth year from the date of allotment.
The redemption will commence from July, 1999. (vii) 14%Debentures of Rs.100 each, aggregating Rs 75 crores will be
redeemed on the expiry of sixth year from the date of allotment i.e. on 11th January, 2000.Warrants issued with the debentures
entitle the holders thereof to apply at the option of the warrant holders for six crores Equity Shares of Rs.10 each of the
Company. (viii) 14.08% Debentures of Rs.100 each, aggregating Rs.112.50 crores will be redeemed in three equal instalments,
commencing from the expiry of fifth year from the date of allotment i.e. 24th February, 2000. (ix) Debentures of Rs. 0.11 crore
held by Directors.
The Debentures referred to in Note 2(a) and Loans referred to in Notes 1(a) (b) and (c) above, are also to be secured by
mor tgage/charge on movable/immovable properties of the Company situated at Hazira, District Surat in the State of Gujarat. The
charges created/ to be created on the debentures referred to in Note 2 (a) and term loans referred to in Notes 1(a) (b) and (c)
above, rank pari passu, inter-se.
(a) Working Capital Loans from Banks referred to in C are secured by hypothecation of present and future stock of raw materials,
stockßß-ßßinßß-ßßprocess, stores and spares, book debts, outstanding monies, receivable claims, trust receipts etc.
(b) Secured Loans include, loans of Rs.118.14 crores and debentures of Rs. 11.50 crores repayable/redeemable within one year.
3.
4.
4 0
Schedules forming part of the Balance Sheet
Schedule ‘D’
Unsecured Loans
A)
B)
3.5% Euro Convertible Bonds due 1999
16% Nonß-ßConvertible Redeemable Debentures of
Rs. 16,040 each, Rs. 4,010 paid up
C) Fixed Deposit
(including Cash Certificates of Rs.0.06 crore;
Previous Year Rs. O.O9 crore)
D) Short Term Loans
Banks [includes commercial paper Rs. NIL (Previous Year Rs.NIL),
maximum amount outstanding at any time during the year
Rs. 300 crores (Previous Year Rs. 172.50 crores)]
Interestß-ßfree Loans under Salesß-ßtax Deferral Scheme
E)
Reliance Industries Limited
31st March, 1995
Rs.
Rs.
31st March, 1994
Rs.
Rs.
Rs. Crs
442.43
---
8.04
137.16
235.04
822.67
439.57
74 99
23.07
---
223.48
761.11
Notes
1.
The Bonds referred to in (A) are convertible into 1,52,49,305 Equity Shares of Rs. 10 each of the Company at the option of the
bondholders.
The Debentures referred to in (B) have been redeemed on 10th March, 1995.
Fixed Deposits include Rs. 6.75 crores repayable within one year.
2.
3.
Schedule ‘E’
Fixed Assets
Description
Goodwill
Leasehold Lands
Freehold Lands
Development Rights
Buildings
Plant & Machinery
Electrical Installations
Factory Equipments
Furniture.& Fixtures
Vehicles
Ships
Aircraft & Helicopter
Total
Previous Year
Capital Workß-in-Progress
Notes :
Gross Block
D e p r e c i a t i o n
N e t B l o c k
Rs. Crs
As At
Assets
01 . 04.94 Acquired on
Amalgamation
Rs .
Rs .
1.23
46.00
0.57
---
320.11
3,979.78
141.02
13.75
52.84
15.82
150.78
15.82
---
3.34
0.15
---
8.80
---
---
---
0.14
2.52
---
---
Additions
Deductions
As At
31.03.95
Upto
31 .03 .95
As At
31.03.95
As At
31 .03 .94
Rs .
---
4.39
0.27
38.65
28.60
441.45
1.69
18.64
17.68
10.29
2.01
15.24
Rs.
1.23
1.29
---
---
0.60
4.86
---
---
0.55
2.00
---
5.65
R s .
---
52.44
0.99
38.65
356.91
4,416.37
142.71
32.39
70.11
26.63
152.79
25.41
Rs .
---
0.95
---
O.12
40.54
1,675.43
31.98
4.70
20.63
4.63
25.09
1.71
R s .
Rs.
---
51.49
0.99
38.53
316.37
2,740.94
110.73
27.69
49.48
22.00
127.70
23.70
1.23
46.00
0.57
---
288.12
2,543.95
1 15.75
9.92
37.70
12.47
133.52
15.81
4,737.72
14.95
578.91
16.18
5,315.40
1,805.78
3,509.62
3,205.04
3,961.26
778.29
1.83
4,737.72
1,532.68
3,205.04
3,075.09
394.60
( a ) Buildings include cost of shares in Coß-ßoperative Societies Rs. 44,150 (Previous Year Rs. 1,250).
( b ) Capital Work-in-Progress includes:
(i) Rs. 195.40 crores on account of preß-ßoperative expenses (Previous Year Rs. 82.65 crores).
(ii) Rs. 148.22 crores on account of cost of construction materials at site (Previous Year Rs. 60.72 crores).
(iii) Rs. 1432.66 crores on account of advance against Capital Workß-ßinß-ßProgress (Previous Year Rs. 65.58 crores).
(iv) Rs. 77.27 crores acquired on amalgamation of RPEL and RPPL.
( c ) Goodwill has been written off against Amalgamation Reserve.
4 1
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘F’
Investments
Government and other Securities
Quoted
6.25% Government of India Loan, 1995
(Previous Year Rs. 38,766, Face Value Rs. 40,000)
Unquoted
7 Years National Savings Certificates (Face Value Rs.5,000)
(Deposited with Sales Tax Dept) (Previous Year Rs.5,000)
Post Office Time Deposit
Government of India Zero Coupon Bonds, 1999
(Previous Year; Face Value Rs.10 crores)
Trade Investments
In Equity Shares
Quoted, fully paid up
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
---
---
---
0.20
---
0.20
---
---
---
0.20
5.39
5.59
0.20
5.59
5,30,55,150
(83,31,500)
69,80,000
(---)
(2,10,00,000)
(2,10,00,000)
Quoted, partly paid up
---
(76,92,000)
---
(76,92,000)
Unquoted, fully paid up
60
(60)
5
( 5 )
165
(165)
20
(20)
11,08,500
(11,08,500)
Reliance Capital Ltd. of Rs. 10 each
443.95 *
Reliance Industrial Infrastructure Ltd. of Rs. 10 each
16.58
Reliance Polyethylene Ltd. of Rs.10 each
Reliance Polypropylene Ltd. of Rs.10 each
Reliance Polyethylene Ltd. of Rs.10 each, Rs. 5 paid up
Reliance Polypropylene Ltd. of Rs. 10 each, Rs. 5 paid up
New Piece Goods Bazar Co. Ltd. of Rs.100 each,
(Rs.17,000; Previous Year Rs.17,000)
Bombay Gujarat Art Silk Vepari Mahajan Co-operative Shops
& Warehouse Society Ltd. of Rs. 200 each,
(Rs.1,000; Previous Year Rs.1,000)
The Art Silk Co-operative Society Ltd. of Rs. 100 each,
(Rs.16,500; Previous Year Rs.16,500)
The Bombay Market Art Silk Co-operative (Shops &
Warehouses) Society Ltd. of Rs. 200 each,
(Rs. 4,000; Previous Year Rs. 4,000)
Reliance Europe Ltd. of Sterling Pound 1 each
Unquoted, partly paid up
225
(225)
73,82,781
(---)
Crimpers Industrial Co-operative Society Ltd. of Rs.100
each, Rs. 25 paid up (Rs.5,625; Previous Year Rs. 5,625)
Reliance Capital Ltd. of Rs.10 each, Rs.5 paid up
In Preferences Shares
Unquoted, fully paid up
86,00,000
(86,00,000)
6% Cumulative Redeemable Preference Shares of Reliance
Enterprises Limited of Rs. 100 each
In Debentures
Quoted, fully paid up
---
(75,00,000)
16%
(1,00,00,000)
16% Optionally Fully Convertible Debentures of
Reliance Polyethylene Ltd. of Rs. 50 each
Optionally Fully Convertible Debentures of
Reliance Polypropylene Ltd. of Rs. 50 each
---
---
460.53
---
---
---
---
---
---
---
3.93
3.93
---
21.71
21.71
86.00
86.00
---
---
---
34.84
---
21.00
21.00
76.84
34.15
34.15
68.30
---
---
---
---
3.93
3.93
---
---
---
86.00
86.00
37.50
50.00
87.50
4 2
572.17
322.57
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
In Equity Shares of Subsidiary Companies
Unquoted, fully paid up
2,10,070
(2,10 070)
(1,300)
14,75,04,400
(14,75,04,400)
Devti Fabrics Ltd. of Rs.10 each
1,300 Reliance Petroproducts Ltd. of Rs.10 each
(Rs.13,000; Previous Year Rs.13,000)
Reliance Industrial Investments and Holdings Ltd.
of Rs.10 each
Other Investments
In Equity Shares
Quoted, fully paid up
14,86,700
(---)
11,000
(---)
5,98,250
54,980
(3,798)
---
(15,000)
---
(6,25,000)
---
(1 0,000)
2,75,000
(10,00,000)
BSES Ltd. of Rs.10 each
Delta Industries Ltd. of Rs.10 each
Larsen & Toubro Ltd. of Rs.10 each
Industrial Credit and Investment Corporation of India Ltd.
of Rs.10 each
Bharat Petroleum Corporation Ltd. of Rs.10 each
Bongaigaon Refineries & Petrochemicals Ltd. of Rs.10 each
Hindustan Petroleum Corporation Ltd. of Rs.10 each
State Bank of India of Rs.10 each
Unquoted, fully paid up
---
(2 90 000)
34,42,600
---
4,80,000
(---)
1 000
(1,000)
Equity Shares of Sandoz Textiles and Trading Ltd. of
Rs.10 each
Equity Shares of Container Corporation of India Ltd.
of Rs.10 each
Equity Shares of Him Teknoforge Ltd. of Rs.10 each
Air Control & Chemical Engineering Co. Ltd. of Rs.100 each
In Debentures
Quoted, fully paid up
624
(624)
(---)
(2,550)
17%
(83,525)
12.5% Fully Convertible Debentures of Industrial Credit and
Investment Corporation of India Ltd. of Rs.450 each
14% Fully Convertible Debentures of Industrial Credit and
Investment Corporation of India Ltd. of Rs.400 each
Secured Redeemable Nonß-ßConvertible Debentures of
ITC Hotels Ltd. of Rs.250 each
Unquoted, fully paid up
---
(2,38,839)
---
(18,50,000)
16% Secured Redeemable Non-Convertible Debentures
of CESC Ltd. of Rs.100 each
17.5% Secured Redeemable Non-Convertible Debentures of
Synthetics & Chemicals Ltd. of Rs.100 each
0.21
---
147.50
32.28
0.08
14.98
0.17
---
---
---
6.30
53.81
---
25.13
1.20
0.01
26.34
0.03
---
---
0.03
In Bonds
Taxfree, quoted, fully paid up
---
(5,14,000)
9%
---
(1,40,000)
---
(50,000)
---
(1,10,000)
---
9% Secured Redeemable, Indian Railway Finance
Corporation Ltd. of Rs.1,000 each
Secured Reedemable, Power Finance Corporation Ltd.
(Previous Year: Face Value Rs. 2 crores)
9% Secured Redeemable, Neyveli Lignite Corporation Ltd.
of Rs.1,000 each
9% Secured Redeemable, National Hydroelectric Power
Corporation Ltd. of Rs.1,000 each
9% Secured Redeemable, Housing and Urban Development
Corporation Ltd. of Rs.1,000 each
9% Secured Redeemable, Rural Electrification CorporationLtd.
(Previous Year : Face Value Rs.2 crores)
---
---
---
---
---
---
---
---
---
---
Reliance Industries Limited
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
0.21
---
147.50
147.71
147.71
---
---
---
0.06
1.99
2.50
1.23
22.88
28.66
0.01
---
---
0.01
0.02
0.03
0.10
1.92
2.05
2.34
16.53
18.87
43.05
1.67
11.20
4.00
8.87
1.68
70.47
4 3
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
Taxfree , unquoted, fully paid up
9.5% India Development Bonds (Face Value
US $1,39,72,000; Previous Year US $14,65,000)
Taxable, quoted, fully paid up
13% Secured Redeemable, Hindustan Zinc Ltd. of
Rs. 1,000 each
13% Secured Redeemable, National Thermal
Power Corporation Ltd. of Rs.1,000 each
Secured Redeemable, National Hydroelectric
Power Cor poration Ltd. of Rs. 1,000 each
13% Secured Redeemable, Neyveli Lignite
Corporation Ltd. of Rs. 1,000 each
15.5% Secured Redeemable, Nuclear Power
Corporation of India Ltd. of Rs. 1,000 each
17.5% Secured Redeemable, Nuclear Power
Corporation of India Ltd. of Rs. 1,000 each
Taxable, unquoted, fully paid up
15% Unsecured, The Industrial Credit & Investment
Corpn. of India Ltd. (Previous year: Face Value Rs.5 crs.)
15% Secured, Redeemable Bonds of Steel Authority
of India Limited of Rs.1,000 each
17% Secured, Redeemable Bonds of Mahanagar
Telephone Nigam Limited of Rs.1,000 each
Unsecured Redeemable Floating Interest Rate,
State Bank of India of Rs. 1,000 each
Taxable, unquoted, partly paid up
17.5% Secured Redeemable, Sardar Sarovar Narmada
Nigam Ltd. of Rs.5,000 each, Rs.2,500 paid up
Master Plus 1991, Unit Trust o.f India of Rs. 10 each
Master Gain ’92, Unit Trust of India of Rs. 10 each
Master Share, Unit Tr ust of India of Rs. 10 each
Morgan Stanley Growth Fund of Rs. 10 each
Kothari Bluechip Fund of Rs.10 each
SBI Magnum Multiplier Plus of Rs. 10 each
GIC RISE-II of Rs.10 each
Units (1964 scheme), Unit Trust of India
of Rs. 10 each
The Alliance ’95 Fund of Rs.10 each
2,00,00,000 JM Mutual Fund (Liquid Fund) of Rs.10 each
18.98
10,00,000 Units of Unit Scheme 1995, Unit Trust of India
of Rs.100 each
Taurus The Star Share, Taurus Mutual Fund of Rs. 10 each
10.00
---
Kothari Pioneer Prima Fund of Rs.10 each
208.68
242.66
---
(5,30,000)
---
(3,40,000)
13%
(4,50,000)
---
(2,70,000)
---
(2,50,000)
---
(9,00,000)
---
1,00,000
(---)
20,000
(5,68,000)
10,000
(10,000)
---
(10,000)
In Units
Quoted
---
(6,25,000)
---
(50,00,000)
---
(2,40.000)
---
(50,00,000)
70,00,000
(70,00,000)
3,65,800
(---)
3,75,00,000
(2,50,00,000)
52,34,25,310
(28,03,74,240)
Unquoted
50,00,000
(---)
(---)
(---)
---
(1 ,00,00,000)
15,79,57,680
(10,64,72,353)
4 4
54.16
54.16
---
---
---
---
---
---
---
---
10.53
2.32
1.00
13.85
---
---
---
---
---
---
7.00
0.40
40.17
834.91
882.48
5.00
5.39
5.39
51.44
32.76
43.23
26.57
25.00
98.98
277.98
5.35
---
52.47
1.00
58.82
2.63
2.63
0.97
5.20
0.59
4.36
7.00
---
38.25
449.41
505.78
---
---
---
10.00
108.68
118.68
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
Reliance Industries Limited
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
In Certificate Of Deposits
Unquoted
The Industrial Finance Corporation of India Ltd.
(Previous Year: Face Value Rs.25 crores)
In Asset Management Scheme
With Union Bank of Switzerland
---
---
* Includes 2,57,12,100 shares having a lock-in period up to 5 years.
Aggregate Value of
Quoted Investments
Unquoted Investments
Movements during the year
(Purchased & Sold)
Government Securities
Treasur y Bills
Bonds
9% Housing & Urban Development Corporation Ltd.
13% Housing & Urban Development Corporation Ltd.
14% Housing & Urban Development Corporation Ltd.
11.5% The Industrial Credit & Investment Corporation of India Ltd.
13% The Industrial Credit & Investment Corporation of India Ltd.
13.5% The Industrial Credit & Investment Corporation of India Ltd.
15% The Industrial Credit & Investment Corporation of India Ltd.
The Industrial Development Bank of India Ltd. (Floating Rate Bonds)
13% The Industrial Development Bank of India Ltd.
9% Indian Railway Finance Corporation Ltd.
13% Mahanagar Telephone Nigam Ltd.
17% Mahanagar Telephone Nigam Ltd.
9% National Hydroelectric Power Corporation Ltd.
13% National Hydroelectric Power Corporation Ltd.
13% Neyveli Lignite Corporation Ltd.
13% Nuclear Power Cor poration of India Ltd.
17.5% Nuclear Power Corporation of India Ltd.
13% National Thermal Power Corporation Ltd.
17% National Thermal Power Corporation Ltd.
17% Power Finance Corporation Ltd.
12.5% Small Industries Development Bank of India Ltd.
Certificate of Deposits
The Industrial Development Bank of India Ltd.
The Industrial Finance Cor poration of India Ltd.
Debentures
BSES Ltd.
Reliance Filaments Ltd.
17% Synthetic & Chemicals Ltd.
Reliance Petroleum Ltd.
(Triple Option Convertible Debentures)
---
---
---
---
Book
Value
1396.85
596.56
Face Value
Rs.
1,273.33
1,993.41
Market
Value
1738.56
---
Nos.
22.41
22.41
402.55
402.55
Book
Value
1117.58
872.60
Cost
Rs.Crs
375.00
---
343.80
110000
10000
32500
---
---
1000000
---
3500
---
430000
650000
560000
40000
1050000
490000
295000
1240000
970000
100000
250000
10000
1000
1000
1000
1.00 *
50.00 *
1000
6.50
100000
150.00 *
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
55.50 *
9.25 *
70
100
100
50
4098750
30000000
150000
196200
9.19
0.99
3.50
0.99
50.00
100.00
6.87
35.89
150.00
39.17
66.55
64.17
3.39
105.62
48.49
30.10
148.59
98.43
12.01
28.96
1.00
49.97
8.49
86.76
339.35
1.38
0.19
1,514.31
1,990.18
Market
Value
1387.96
---
4 5
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
Shares
State Bank of India Ltd.
Delta Industries Ltd.
Global Trust Bank Ltd.
Padmini Polymers Ltd.
Indian Petrochemicals Corporation Ltd.
BSES Ltd.
Larsen & Toubro Ltd.
Reliance Capital Ltd.
Ashoka Mills Ltd.
Mutual Fund Units
CRB Arihant Mangal
GIC Fortune ’94
LIC Dhansamridhi
Units’64
UTI Master Growth 1993
UTI Grand Master 1993
* Represents Rs. in crores
Schedule ‘G’
Current Assets
Interest accrued on Investments
Inventories
(Cer tified and Valued by the Management)
Stores. spares, dyes, chemicals, etc.
Raw Materials
Stock-in-Process
Finished Goods
Sundry Debtors (Unsecured)
Over six months
Considered good
Considered doubtful
Less: Provision for doubtful debts
Others, considered good
Cash and Bank Balances
Cash on hand
Balance with Scheduled Banks
In Current Accounts
In Fixed Deposit Accounts
In Asset Management Scheme with a
Non Scheduled Bank
Face Value
Rs.
Nos.
Cost
Rs.Crs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
579500
50400
34500
100000
1377000
2292700
5956850
500000
4190
20000000
5000100
10000000
601896400
2299500
34700
12.59
0.38
0.03
4.85
25.14
51.58
174.71
8.00
0.04
20.00
5.00
10.00
1033.99
3.13
0.05 *
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
8.76
11.35
168.48
222.17
48.42
223.49
83.67
6.66
90.33
6.66
83.67
457.53
0.38
139.93
2.41
142.72
224.07 *
173.13
143.78
41.65
226.08
662.56
584.64
82.47
6.66
89.13
6.66
82.47
511.06
541.20
593.53
0.25
18.84
3.68
22.77
73.57
366.79
1,579.31
96.34
1,285.86
* With Union Bank of Switzerland (Maximum amount outstanding at any time
during the year Rs 224.07 crores).
4 6
Schedules forming part of the Balance Sheet
Schedule ‘H’
Loans and Advances
Unsecured - (Considered Good)
Loans to subsidiary companies
Advances recoverable in cash or in kind or for value to be received
Deposits
Balance with Customs, Central Excise Authorities, etc.
Reliance Industries Limited
As at
31st March, 1995
Rs.
Rs.
Rs. Crs
As at
31st March, 1994
Rs.
Rs.
592.64
568.95 *
125.18
84.84
1,371.61
322.09
837.49
69.89
15.12
1,244.59
Includes Rs. 0.22 crore from Officers (Maximum amount outstanding at any time during the year Rs. 0.22 crore).
Schedule ‘I’
Current Liabilities and Provisions
Current Liabilities
Sundry Creditors
Unclaimed Dividends
Excess Debentures Application monies refundable/adjustable
Interest accrued but not due on loans
1,118.23 *
10.74
3.07
62.86
940.01
0.03
0.35
45.86
Provisions
Provision for Wealth Tax (includes acquired on
amalgamation of RPEL and RPPL)
Proposed Dividend
1,194.90
986.25
1.40
200.17
0.45
139.18
201.57
1,396.47
139.63
1,125.88
* Includes for capital expenditure Rs. 286.34 crores (Previous Year Rs. 26.82 crores) and
Acceptances of Rs. 91.31 crores (Previous Year Rs. 3.40 crores).
Schedules forming part of the Profit and Loss Account
Schedule ‘J’
Other Income
Export Incentives
Dividends:
From Subsidiaries
From Others
[Tax Deducted at Source Rs.7.37 crores (Previous Year Rs.9.58 crores)]
Profit on Sale of Investments (net)
Profit on Sale of Assets (net)
Miscellaneous Income
Rs.
4.79
79.20
1994-1995
Rs.
0.27
83.99
56.05
0.24
6.85
147.40
Rs. Crs
1993-1994
Rs.
Rs.
0.01
3 39
35.15
38.54
70.29
---
7.16
116.00
4 7
Reliance Industries Limited
Schedules forming part of the Profit and Loss Account
Schedule ‘K’
Variation In Stock
Stock-ln-Trade (at close)
Finished goods
Stock-in-process
Stock-ln-Trade (at commencement)
Finished goods
Stock-in-ßprocess
Schedule ‘L’
Manufacturing 8 Other Expenses
Raw Materials Consumed
Stock at commencement
Add: Purchases
Less:Stock at close
Inter-Divisional Transfers
Manufacturing Expenses
Stores and Spare Parts
Dyes and 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 and Bonus
Contribution to Provident Fund, Gratuity Fund,
Superannuation Fund, Employees’ State Insurance Scheme,
Pension Scheme, Labour Welfare Fund etc.
Employees’ Welfare and other amenities
Sales & Distribution Expenses
Samples, Sales Promotion and Advertisement Expenses
Brokerage and Commission
Packing Expenses
Warehousing Charges
Freight and Forwarding Charges
Octroi Expenses
Sales Tax
Establishment Expenses
Insurance
Rent
Rates and Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
General Expenses
Wealth Tax
Charity & Donations
Loss on Sale of Assets (Net)
Provision for Doubtful Debts
Schedule ‘M’
Interest
Debentures
Fixed Loans
Others (Net)
4 8
1994-1995
1993-1994
Rs.
Rs.
Rs.
Rs.
Rs. Crs
223.49
48.42
226.08
41.65
143.78
1,275.93
1,419.71
222.17
107.72
137.01
289.59
14.18
10.84
92.96
1,517.13
142.97
95.22
12.37
29.22
27.39
57.56
67.26
2.92
48.52
4.33
7.38
27.53
15.23
29.66
12.65
22.05
0.72
120.81
0.60
4.17
---
---
226.08
41.652
271.91
267.73
210.64
31.44
267.73
4.18
242.08
25.65
1,197.54
1,630.63
1,062.25
1,167.20
122.96
1,083.07
1,206.03
143.78
105.04
126.73
236.23
17.83
5.19
36.43
1,090.78
80.23
2,312.40
1,698.46
75.53
8.83
22.00
21.55
37.90
58.21
1.78
13.04
6.00
37.70
30.87
12.72
0.65
8.02
8.91
0.63
95.37
0.20
3.60
0.02
2.00
106.36
176.18
162.99
4.373.44
158.29
141.26
(65.97)
233.58
136.81
215.36
233.42
5,726.16
183.26
21.24
(90.18)
114.32
Reliance Industries Limited
Significant Accounting Policies
Schedule ‘N’
Significant Accounting Policies
A. Basis of Preparation of Financial Statements
a)
b)
The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted
accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.
The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure
on accrual basis.
B. Fixed Assets and Depreciation
a)
Fixed Assets are stated at cost, net of Modvat, less accumulated depreciation. All costs, including financing costs till
commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange
rate variations relating to borrowings attributable to the fixed assets are capitalised.
b) Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to
the Companies Act, 1956 except, depreciation on incremental cost arising on account of translation of foreign currency
liabilities for acquisition of fixed assets, which has been amortised over the residual life of the respective assets and depreciation
on development rights which has been provided in proportion of oil production achieved.
c ) During the year, the Company has amor tised the premium on leasehold lands over the remaining life of the lease, hence
depreciation for the year is higher by Rs. 0.49 crore.
C. Foreign Exchange Transactions
a)
b)
Transactions denominated in foreign currencies are nor mally recorded at the exchange rate prevailing at the time of the
transaction.
Foreign currency transactions remaining unsettled at the end of the year are translated at contracted rates, when covered by
foreign exchange contracts and at year end rates in all other cases. Gains and losses on foreign exchange transactions/
translations other than those relating to fixed assets and investments are recognised to the respective accounts in the Profit
and Loss Account. Gain or loss on translation of long term liabilities incurred to acquire fixed assets is treated as an adjustment
to the carrying cost of such fixed assets.
D.
Investments
Investments are stated at cost.
E.
Inventories
Inventories are valued at cost except for finished goods and byß-ßproducts. Finished goods are valued at lower of cost or market
value and byß-ßproducts are valued at net realisable value.
F.
Sales
Sales include, inter-divisional transfers, sales during trial-run and are net of discounts.
G. Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods
lying in bonded warehouses. Although, in the past, such provision was not made in the accounts, the change in accounting
treatment is consistent with the guidelines issued by the Institute of Chartered Accountants of India and has no impact on the profits
for the year and net current assets of the Company.
H. Employee Retirement Benefits
Company’s contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account. Gratuity is charged
to Profit and Loss Account on the basis of actuarial valuation.
I.
Research and Development Expenses
Expenditure relating to capital items is debited to fixed assets and depreciated at applicable rates. Revenue expenditure is charged
to Profit and Loss Account of the year in which they are incurred.
J.
Leases
Lease rentals are expensed with reference to lease terms and other considerations, except for rentals pertaining to the period up
to the date of commissioning of the assets which are capitalised.
K. Accounting for Oil and Gas Activity
Assets and Liabilities as well as income and expenditure in respect of the joint venture with Oil and Natural Gas Commission Ltd.
and Enron Oil and Gas Ltd. are accounted, on the basis of available information, on line by line basis with similar items in the
Company’s financial statements, according to the participating interest of the Company.
L.
Issue Expenses
Issue Expenses pertaining to the projects are capitalised.
4 9
Reliance Industries Limited
Notes on Accounts
Schedule ‘O’
Notes on Accounts
1.
( a ) The previous year’s figures have been reworked, regrouped and reclassfied wherever necessary.
2.
3.
4.
5.
6.
( b ) Figures have been presented in ‘crores’ of rupees with two decimals in accordance with the approval received from the
Company Law Board. Figures less than Rs 50,000 have been shown at actuals in brackets.
As in the past, sales include interß-ßdivisional transfers of Rs 1630.63 crores (Previous Year Rs 1167.20 crores)
( a )
In ter ms a Schemes of Amalgamation and Orders passed by the Hon’ble Bombay High Cour t, Reliance Polyethylene
Limited (RPEL) and Reliance Polypropylene Limited (RPPL) have been amalgamated with the Company with effect from 1st
January, 1995 Pursuant to the said Scheme, the Company has taken over all the assets, liabilities and obligations of both
the amalgating companies.
( b ) Pursuant to above 9,95,75,915 Equity Shares of Rs. 10/ß-ß each are to be issued to the shareholders of RPEL and RPPLwithout
payment being received in cash.
( c ) The excess of value of the assets (including calls in arrears) over liabilities of RPEL and RPPL as appearing in the books of
account of those two amalgamating companies over the paid-up value of the shares of the Company issued to the shareholders
of those two companies has been accounted as under : The amount standing to the credit of Share Premium and General
Reserve in the books of RPEL and RPPL as on 31st December 1994 has been credited to the respective accounts in the books
of the Company and the balance has been transferred to Amalgamation Reserve.
Interest - Others (net) is arrived at after deducting interest received/receivable of Rs 165.19 crores (Previous Year Rs 94.33)
crores L Tax Deducted at Source of As 9 88 crores (Previous Year Rs 8 28 crores).
A sum of Rs 0.14 crore (net) included in ‘Manufacturing and Other Expenses’ represents net prior period adjustments
( a ) Auditors’ Remuneration :
Audit Fees
Tax Audit Fees
i)
ii)
iii) For Certification and Consultation in finance and tax matters
iv) Expenses reimbursed
Rs. Crs
1994-95
1993-94
0.45
0.14
0.08
0.05
0.72
0.36
0.09
0.16
0.02
0.63
( b ) Cost AuditorAudit Fees Rs 0.02 crore (Previous Year Rs 0 02 crore).
7.
( 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 has been paid to the Directors. Fixed monthly
remuneration has been paid to the Directors as per Schedule XIII to the Companies Act 1956.
( b ) Directors’ Remuneration.
Salaries
i)
ii) Contribution to Provident Fund and Superannuation Fund
iii) Provision for Gratuity (as per Actuarial Valuation)
(Previous Year Rs 37,400)
iv) Perquisites
Rs. Crs
1994-95
1993-94
0.35
0.02
0.06
0.03
0.46
0.12
0.02
---
0.02
0.16
8.
The Incomeß-ßtax assessments of the Company have been completed up to Assessment Year 1992-93. The total demandraised
by the Income-Tax Department up to the said Assessment Year is Rs 160 66 crores which is disputed. Based on the decisions of
the Appellate Orders and the inter pretations of other relevant provisions, the Company has been legallyadvised that the Taxation
Reserve created in the past would be adequate enough to meet the Liabilities, if any, in respect of disputed matters which are
pending in appeals.
The Company has been advised that no provision for taxation is necessary for the current financial year in view of various
unabsorbed past reliefs.
5 0
Notes on Accounts
Schedule ‘O’ (Contd)
9.
Preß-ßOperative Expenses
(in respect of Projects up to 31st March, 1995, to be capitalised)
Pre-operative expenditure of projects under commissioning,
transfered from Profit and Loss Account
Net pre-operative expenditure of RPEL and RPPL
Lease Expenses
Insurance
Travelling Expenses
General Expenses
Interest
Depreciation
Debenture Issue Expenses
Less: Income
Income from funds placed under Portfolio Management Scheme
Other Income
Capitalised by allocating to Buildings and Plant & Machinery
Reliance Industries Limited
Rs Crs
Total up to
31st March,
1995
Total up to
31st March,
1994
41.41
31.20
4.56
0.27
3.15
37.67
114.52
13.10
8.00
4.52
---
16.30
1.27
3.49
64.18
26.34
17.43
8.00
253.88
141.53
0.03
0.02
58.43
195.40
0.03
0.03
58.82
82.65
10. The Company has an investment of Rs 0.21 crore in the Share Capital loan of Rs 6 76 crores and receivables on account of sale
of goods of Rs. 1.96 crores from Devti Fabrics Ltd (DFL), a wholly owned subsidiary company and furnished guarantees to Banks
of Rs 3 00 crores on behalf of DFL. The losses of DFL exceeds its paidß-ßup Capital and Reserves as on 31st March, 1995 In view
of the long term involvement of the Company in the said Company, no provision has been made in the accounts for the probable loss
that may arise.
11. The Department of Company Affairs Government of India vide its Order No 46/34/95-CL-III dated 30-03-1995 & issued under
Section 211(4) of the Companies Act, 1956 has exempted the Company from publication of certain information in the Profit and Loss
Account under paras 3(i)(a) 3(ii)(a) and 3(ii)(b) of Schedule Vl to the Companies Act, 1956
12. Contingent Liabilities
( a ) Estimated amount of contracts remaining to be executed
on capital accounts and not provided for
( b ) Outstanding guarantees furnished to Banks and Financial
Institutions including in respect of Letters of Credit
opened by Bankers
( c ) Guarantees to Banks and Financial Institutions against
credit facilities extended to third parties
( d ) Liability in respect of bills discounted with Banks
( e ) Uncalled liability on partly paid Shares/Debentures
(f) Claims against the Company/disputed liabilities not
acknowledged as debts
Rs Crs
As at
31st March,
1995
As at
31st March,
1994
706.73
1,047.18
1342.09
483.24
14.27
14.27
15.60
37.71
120.60
42.00
10.19
38.81
5 1
Reliance Industries Limited
Notes on Accounts
13. Licensed and Installed Capacity
Licensed Capacity
Installed Capacity
UNIT
1994-95
1993-94
1994-95
1993-94
( a ) Polyester Filament Yarn/Polyester Chips
( b ) Polyester Staple Fibre/Polyester Chips
( c ) Manß-ßmade Fibre spun yarn on
worsted system (Spindles)
( d ) Man-made Fibre on cotton system (Spindles)
( e )
(i) Man-made Fabrics (Looms)
(ii) Knitting M/c
(f) Purified Terephthalic Acid
( g ) Linear Alkyl Benzene
( h )
(i) Ethylene
(ii) Propylene
(iii) Butadiene & Other C4s
(iv) Benzene
( v ) Toluene
(vi) Xylene
(i) Mono Ethylene Glycol
(ii) Ethylene Oxide
(iii) Higher Ethylene Glycol (By-product)
(i) Ethylene Oxide
(ii) Ethylene Glycol (Non-Fibre)
(iii) Carbon Dioxide
(i)
(j)
( k ) High/Linear Low Density Polyethylene
(Swing Plant)
(I) Poly Vinyl Chloride
(m) (i) Chlorine
(ii) Caustic Soda (By product)
(iii) Hydrogen (By Product)
(i) Paraxylene
(ii) Benzene (By Product)
(i) Mono Ethylene Glycol
(ii) Higher Ethylene Glycol (By Product)
(i) Mono Ethylene Glycol
(ii) Ethylene Oxide
(iii) Higher Ethylene Glycol (By Product)
(i) Ethylene
(ii) Propylene
(iii) Butadiene & Other C4s
(i) Paraxylene
(ii) Benzene
( n )
( o )
( p )
( q )
( r )
M.T.
M.T.
Nos.
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.
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.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
750,000
365,000
225,000
235,000
197,000
165,000
100,000
10,000
12,500
100,000
18,000
30,000
N.A.
N.A.
396,000
468,000
11,700
600,000
24,000
100,000
12,500
200,000
25,000
25,000
800,000
390,000
240,000
800,000
32,000
N.A.
N.A.
32,300+
45,000
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
750,000
365,000
225,000
235,000
197,000
165,000
100,000
10,000
12,500
100,000
18,000
30,000
N.A.
N.A.
198,000
234,000
5,850
---
---
---
---
---
---
---
---
---
---
---
---
24,094
23,040
712
28
200,000
80,000
U.l.
U.l.
U.l.
U.l.
U.l.
U.l.
60,000
10,000
5,000
---
---
---
160,000
135,000
U.l.
U.l.
U.l.
---
---
---
---
---
---
---
---
---
---
---
---
25,125+
45,000
12,494
---
450
20
200,000
80,000
U.l.
U.l.
U.l.
---
---
---
60,000
10,000
5,000
---
---
---
160,000
100,000
U.l.
U.l.
U.l.
---
---
---
---
---
---
---
---
---
---
---
---
N.A. ß-ß Delicensed vide Notification No.477 (E) Dated 27th July, 1991.
+ Based on average Denier of 40. Installed Capacities are based on Certificate of the Management.
U.l. - Under implementation.
14. Production of Finished Products Meant For Sale
Fabrics
Polyester Filament Yarn
Polyester Staple Fibres
PTA
LAB
Ethylene Glycol
PVC M .T. 186597 170304 PE
Crude Oil
Unit
Mtrs. in Lacs
M.T.
M.T.
M.T.
M.T.
M.T.
M .T.
M.T.
1994-95
474.95
94380
92556
86335
80508
54811
166250
43719
993-94
448.76
93397
76484
106380
77004
62972
132496
---
15. Value of Imports on C.l.F. basis in respect of
( a ) Raw Materials
( b ) Dyes and Chemicals, Catalysts, Stores and Spare parts
( c ) Capital goods
5 2
Rs.Crs
1994-95
1993-94
808.58
67.80
386.30
553.18
57.31
121.20
Notes on Accounts
16. Expenditure in Foreign Currency on Account of
Interest in rupees on foreign currency loans
Interest on Debentures held by Non-residents on repatriation basis (Gross)
Technical Knowß-ßhow & Engineering Fees
FCCB expenses and other matters
Reliance Industries Limited
Rs.Crs
1994-95
1993-94
54.38
2.64
318.62
53.97
64.36
9.02
30.51
50.41
17. Value of raw materials consumed
Imported
Indigenous
18. Value of dyes, chemicals, catalysts,
stores and spare parts consumed
Imported
Indigenous
19. Earnings in Foreign Exchange
Export of goods on FOB basis
Interest
Others
20. Remittance in Foreign Currency
on Account of Dividend
1993-94
% of total
Consumption
Rs.in %
Crores
885.76
311.78
1.197.54
83.08
161.65
244.73
1994-95
of total
Consumption
73.96
26.04
100.00
33.95
66.05
100.00
Rs.in
Crores
676.43
385.82
1,062.25
107.96
123.81
231.77
63.68
36.32
100.00
46.58
53.42
100.00
Rs.Crs
1993-94
59.91
16.91
0.29
Rs.Crs
1993-94
1994-95
174.45
24.62
6.74
1994-95
The Company has paid dividend in respect of shares held by
Non-residents on repatriation basis. This interalia includes
portfolio investment and direct investment, where the amount
is also credited to Nonß-ßResident 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
( b ) Number of Equity Shares held by them
( c )
(i) Amount of dividend paid (Gross)
Tax deducted at source: Rs.2.51 crores
(Previous Year: Rs.1.20 crores)
(ii) Year to which dividend relates
19,726
5,95,82,568
18.53
21,481
2,72,11,983
8.53
1993-94
1992-93
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D.H. Ambani
Chairman
M.D. Ambani
Vice Chairman & Managing Director
D. Chaturvedi
Partner
R.J. Shah
Partner
Bombay
Dated: 28th April, 1995
A.D. Ambani
Managing Director
N.R. Meswani
Executive Director
S.S. Betrabet
U. Mahesh Rao
R.H. Ambani
N.H. Ambani
M.L. Bhakta
T. Ramesh U. Pai
Y.P. Trivedi
Nominee Directors
Directors
V.M. Ambani
Secretary
5 3
Reliance Industries Limited
Statement pursuant to Section 212 of the Companies Act, 1956, relating to Company’s Interest in the
Subsidiary Companies
Name of Subsidiary Company
Devti Fabrics Ltd.
Reliance Industrial
Investments
and Holdings Ltd.
Reliance
Petroproducts
Limited
1.
The financial year of the Subsidiary
Companies ended on
31st March, 1995
31st March, 1995
31st March, 1995
2. Date from which they become subsidiary
30th September, 1985
30th December, 1988
11th Februar y, 1992
companies
3.
a. Number of shares held by Reliance
Industries Limited with its nominees
in the subsidiaries at the end of the
financial year of the subsidiary
companies
b.
Extent of interest of holding company
at the end of the financial year of
the subsidiary companies
4.
The net aggregate amount of the subsidiary
companies Profit/(Loss) so far as it concerns
the members of the holding Company.
a. Not dealt with in the holding Company’s
accounts.
i)
ii)
For the financial year ended
31st March, 1995
For the previous financial years
of the subsidiary companies since
they became the holding Company’s
subsidiaries.
b. Dealt with in the holding Company’s
accounts:
2,10,070 Equity Shares
of the face value of
Rs.10 each
fully paid-up
14,75,04,400 Equity
Shares of the face
value of Rs. 10 each
fully paid-up
1,300 Equity Shares
of the face
value of Rs. 10 each
fully paid-up
100%
100%
100%
Rs.78.03 Lakhs
Rs.587.16 Lakhs
Rs.20,626
(Rs.834.13 Lakhs)
Rs.172.31 Lakhs
(Rs.30,682)
i)
ii)
For the financial year ended
31st March, 1995
For the previous financial years
of the subsidiary companies
since they became the holding
Company’s subsidiaries.
Nil
Nil
Nil
Nil
Nil
Nil
For and on behalf of the Board
D.H. Ambani
Chairman
M.D. Ambani
Vice Chairman & Managing Director
A.D. Ambani
Managing Director
N.R. Meswani
Executive Director
S.S. Betrabet
U. Mahesh Rao
R.H. Ambani
N.H. Ambani
M.L. Bhakta
T. Ramesh U. Pai
Y.P. Trivedi
Nominee Directors
Directors
V.M. Ambani
Secretary
Bombay
Dated: 28th April, 1995
5 4
Reliance Industries Limited
Devti Fabrics Limited
Regd. Office :
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Bombay - 400 021.
5 5
Reliance Industries Limited
5 6
Reliance Industries Limited
Directors’ Report
To the Members,
Your Directors present the Eleventh Annual Repor t together with the Audited Statement of Accounts for the Financial Year ended
31st March, 1995.
Operations
The Company has earned a profit of Rs.78.03 lacs during the year under review as against loss of Rs.13.69 lacs in the previous
year. Sales decreased to Rs.314.42 lacs as against Rs.1176.13 lacs for the previous year.
Dividend
In view of the carried forward losses, your Directors have not recommended any Dividend for the Financial Year under review.
Directors
As per the provisions of the Companies Act, 1956, Shri V.M. Ambani and Shri N.M.Sanghvi retire by rotation and being eligible offer
themselves for re-appointment.
During the year Shri H.N.Arora resigned from the Board. The Board acknowledges the suppor t and guidance provided by Shri
H.N. Arora to the Company during his tenure as Director.
Auditors
M/s. Rajendra & Co. and M/s. Chaturvedi & Shah, Chartered Accountants, retire at the ensuing Annual General Meeting and are
recommended for re-appointment. The Auditors have, Under Section 224(1 -B) of the Companies Act,1956, fur nished a certificate
of their eligibility for re-appointment.
Deposits
The Company has not accepted any deposits from the Public. Hence, no information is required to be appended to this report.
Conser vation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo
The particulars as prescribed under Sub-section(e) of Section 217(1) of the Companies Act, 1956, read with Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules,1988 are given in the Annexure which forms part of the
Directors’ Report.
Personnel
Information as per Section 217(2A) of the Companies Act,1956, read with the Companies (Particulars of Employees) Rules,1975,
is not given as no employee is drawing more than Rs.25,000/- 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.
Bombay
Directors
Dated: 25th April, 1995
For and on behalf of the Board
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
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
The Company continued the energy conservation measures undertaken in the past, and tried to explore possibility of further
energy conservation measures.
Form - A
(Form for disclosure of particulars with respect to Conservation of Energy)
Part - A
A .
Power and Fuel Consumption
1 . Electricity
a . PurchasedUnits
Total Amount (Rs)
Rate/Unit (Rs)
b . Own Generation
i.
ii.
Through Diesel Generator
Units
Units per Ltr. of Diesel
Cost/Unit (Rs)
Through Steam Turbine/Generator
Units
Unit per Ltr. of Fuel Oil/Gas cost/unit
2 . Coal
Quantity(Tonnes)
Total Cost (Rs)
Average Rate (Rs)
Current Year
1994-95
24,18,600
72,28,609
2.99
– –
– –
– –
– –
– –
352
7,16,290
2,034.91
Previous Year
1993-943.
61,95,240
1,63,06,926
2.63
– –
– –
– –
– –
– –
393
5,96,112
1,516.82
5 7
Reliance Industries Limited
3 .
Furnace Oil
Quantity (Kilo Ltrs.)
Total Amount
Average Rate
4 . Others/lnternal Generation
Quantity
Total Cost
Average Rate
Part- B
B . Consumption per Unit of Production
Current Year
1994-95
Previous Year
1993-943.
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
Current Year
1994 - 95
Previous Year
1993 - 94
Yarn
(Kgs)
Fabrics
( P.M TR)
Yar n
(Kgs)
Fabrics
( P.MTR)
Electricity (Units)
Furnace Oil
Coal **
Othe rs
** Coal is used for steaming and heating the yarn for the purpose of sizing. It has no link with the production.
8.63
– –
– –
– –
5.46
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
Form - B
(Form for disclosure of particulars with respect to Technology Absorption)
The Company has no specific Research and Development Department. Hence information to be given in Form - B are not relevant
for the Company. However, the Company has a quality control depar tment to check the quality of the products manufactured.
C . Foreign Exchange Earning and Outgo
i.
Foreign Exchange used and earned
Nil
Auditors’ Report
To
The Members of Devti Fabrics Limited,
We have audited the attached Balance Sheet of DEVTI FABRICS LIMITED as at 31st March,1995 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 Manufactur ing and Other Companies (Auditor’s Report) Order,1988, issued by the Company Law Board
in terms of Section 227(4A) of the Companies Act,1956, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2 .
Further to our comments in the Annexure referred to in Paragraph 1 above, we state that:
( a ) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purpose 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 ) Although the Company had incurred substantial losses in the past resulting in the erosion of its net worth, the accounts
of the Company are prepared on going concern basis. 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 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,1995
(ii)
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.
Bombay
Dated: 25th April,1995
H. P. Chatur vedi
Partner
R.J. Shah
Partner
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
5 8
Reliance Industries Limited
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 explanations 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.
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 .
7 .
8 .
9 .
10.
11.
In our opinion and 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.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 same basis as in the preceding year.
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.
The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act,1956 or to companies under the same management within the meaning of
Section 370(1B) of the Companies Act,1956.
In respect of loans and advances in the nature of loans given by the Company, the parties have generally repaid the principal
amounts as stipulated and have also been 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 with regard to purchases of stores, raw materials 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 or
materials and sale of goods materials and services made in pursuance of contracts or arrangement entered in the register
maintained under Section 301 and aggregating during the year to Rs.50,000/- or more in respect of each party.
12. As explained to us, the Company has a regular procedure for the determination of unserviceable or damaged stores, raw
materials and finished goods. Adequate provision has been made in the accounts for the loss arising on the items so determined.
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 by us.
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,
customs duty, sales tax and excise duty were outstanding as on 31st March,1995 for a period of more than six months from the
date they became payable.
19. According to the information and explanations given to us, no personal expenses of employees or Directors have been charged
to revenue account other than those payable under contractual obligations or in accordance with generally accepted business
practice.
20. According to the information and explanations given to us and in our opinion the Company has become a sick industrial Company
within the meaning of clause (O) of Sub-section(1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act,1985.
21.
In respect of the service activities of the Company:
(a) The Company has a reasonable system of recording receipts, issues and consumption of material and stores commensurate
with its size and the nature of its business.
(b) The Company does not have any specific system of allocation of material in respect of the processing activities carried out
on ‘job work’ basis.
(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.
(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.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Bombay
Dated: 25th April,1995
H . P . C h a t u r v e d i
Partner
R . J . S h a h
Partner
5 9
Reliance Industries Limited
Balance Sheet as at 31st March, 1995
Schedule
1994 - 95
(Rs. in Lacs)
1993 - 94
Rs.
Rs.
Rs.
Rs.
Sources of Funds:
S h a r e h o l d e r s ’ F u n d s
Share Capital
Loan Funds
Secured Loans
Unsecured Loans (From Holding Company)
Total
Application of Funds:
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
‘ A ’
`B’
‘C’
`D’
‘ E ’
Less:
Current Liabilities and Provisions
‘F’
Current Liabilities
Provisions
Miscellaneous Expenditure
(to the extent not written off or adjusted)
Profit & Loss Account
Total
Notes on Accounts
‘ K ’
2 1 . 0 1
21.0
––
6 7 6 . 0 0
157.91
676.00
6 7 6 . 0 0
6 9 7 . 0 1
833.91
854.9
2 2 6 . 5 0
1 6 0 . 7 0
4 0 . 9 7
1 3 . 0 9
2 9 . 1 5
8 3 . 2 1
1 7 . 2 1
1 0 0 . 4 2
2 2 5 . 3 1
––
2 2 5 . 3 1
559.44
401.55
6 5 . 8 0
157.89
74.74
48.73
8.30
131.77
22.86
154.63
285.26
6.49
291.75
( 1 2 4 . 8 9 )
––
7 5 6 . 1 0
6 9 7 . 0 1
(137.12)
0.02
834.13
854.92
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
Directors
H.P. Chaturvedi
Partner
Bombay
Dated: 25th April, 1995
6 0
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
Profit and Loss Account for the year ended 31st March, 1995
Schedule
1994 - 95
(Rs. in Lacs)
1993 - 94
Rs.
Rs.
Rs.
Rs.
Reliance Industries Limited
I n c o m
Sales (Net)
Other Income
Variation in Stock
E x p e n d i t u r e
Manufacturing and Other Expenses
Interest
Depreciation
‘ G ’
‘ H ’
‘ I ’
‘J’
Profit/(Loss) for the year
Add: Balance brought forward from last year
Balance carried to Balance Sheet
Notes on Accounts
‘ K ’
3 1 4 . 4 2
4 6 6 . 3 0
( 1 3 . 7 1 )
6 4 8 . 8 1
1 0 . 6 6
2 9 . 5 1
1176.13
75.47
(57.78)
7 6 7 . 0 1
11 93.82
1125.13
23.26
59.12
6 8 8 . 9 8
7 8 . 0 3
( 8 3 4 . 1 3 )
( 7 5 6 . 1 0 )
1207.51
(13.69)
(820.44)
(834.13)
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Directors
H.P. Chaturvedi
Partner
Bombay
Dated: 25th April, 1995
R.J. Shah
Partner
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
6 1
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘A’
S h a r e C a p i t a l
Authorised:
As at
31st March,1995
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
2,50,000
Equity Shares of Rs. 10/- each
Issued & Subscribed:
2,10,070
Equity Shares of Rs. 10/- each fully paid-up
(Held by Reliance Industries Limited, the Holding Company)
2 5 . 0 0
2 1 . 0 1
2 1 . 0 1
25.00
21.01
21.01
Schedule ‘B’
S e c u r e d L o a n s
Working Capital Loan from a Bank
Term Loans from Financial Institutions
As at
31st March,1995
Rs.
––
––
––
(Rs. in Lacs)
As at
31st March, 1994
Rs.
89.15
68.76
1 57.91
N o t e :
Working Capital Loans from a scheduled Bank are secured against Hypothecation of present and future stock of the materials,
stock-in-process, finished goods, book debts, movable machineries including all stock and spare parts belonging to the Company at
Sidhpur in the State of Gujarat, and are further guaranteed by Reliance Industries Limited, the Holding Company.
Schedule ‘C’
Fixed Assets
Description
Buildings
Plant & Machinery
Electric Installation
Factory Equipment
Furniture & Fixture
Vehicles
Previous Year
Schedule ‘D’
As at
1.4.94
Rs.
27.48
504.58
17.99
2.97
4.30
2.12
559.44
560.51
Gross Block (At Cost)
Depreciation
Net Block
(Rs. in Lacs)
Additions
Deductions
Rs.
––
––
––
––
––
––
0.00
0.34
As at
3 1 . 3 . 9 5
R s .
Total
up to
31.3.95
Rs.
As at
3 1 . 3 . 9 5
R s .
As at
31.3.94
Rs.
2 7 . 4 8
6.86
2 0 . 6 2
21.54
Rs.
––
329.99
1 7 4 . 5 9
144.77
2 9 . 8 2
117.83
0.76
0.08
––
2.11
1 7 . 2 3
2 . 8 9
4 . 3 0
0 . 0 1
6.16
1.41
1.50
0.00
1 1 . 0 7
12.13
1 . 4 8
2 . 8 0
0 . 0 1
1.67
3.04
1.68
332.94
2 2 6 . 5 0
1 60.70
6 5 . 8 0
157.89
1.41
5 5 9 . 4 4
401.55
1 5 7 . 8 9
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
Current Assets
Inventories (at cost or market value whicheve
is lower except otherwise stated)
Stores, spares, dyes & chemicals
Raw materials
Stock-in-process
Finished goods
Others
6 2
8 . 1 9
1 . 9 2
7 . 7 5
2 3 . 0 0
0 . 1 1
16.06
14.11
15.78
27.79
1.00
Carried Forward ------------------
4 0 . 9 7
74.74
Schedules forming part of the Balance Sheet
Schedule ‘D’ (Contd)
Brought forward
As at
31st March,1995
Rs.
Rs.
4 0 . 9 7
Sundry Debtors (Unsecured)
Over six Months:
Considered doubtful
Others: Considered good
Less: Provision for doubtful debts
C a s h a n d B a n k b a l a n c e s
Cash on hand
Balance with Scheduled Banks:
In Current Accounts
In Fixed Deposit Accounts
Schedule ‘E’
L o a n s a n d A d v a n c e s
(Unsecured, Considered Good)
Advances recoverable in cash or in kind or for value to be received
Deposits
Prepaid expenses
Balance with Customs, Central Excise Authorities, etc.
Schedule ‘F’ (Contd)
Current Liabilities & Provisions
Current Liabilities
Sundry Creditors
Interest accrued but not due on loans
Provisions
Gratuity, Superannuation and Provident Funds
Schedules forming part Of the Profit and Loss Account
Schedule ‘G’
O t h e r I n c o m e
Processing charges
Profit on sale of assets
Miscellaneous Income
Excess provision for expenses no longer required
Reliance Industries Limited
(Rs. in
Lacs)
As at
31st March, 1994
Rs.
Rs.
74.74
7.82
48.73
56.55
7.82
––
1 3 . 0 9
1 3 . 0 9
––
1 . 4 9
2 6 . 7 6
0 . 9 0
1 3 . 0 9
48.73
1.13
3.75
3.42
2 9 . 1 5
8 3 . 2 1
8.30
131.77
As at
31st March,1995
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
3 . 5 7
1 2 . 8 2
0 . 5 3
0 . 2 9
1 7 . 2 1
6.09
12.82
0.58
3.37
22.86
As at
31st March,1995
Rs.
Rs.
(Rs. in
Lacs)
As at
31st March, 1994
Rs.
Rs.
2 2 5 . 2 6
0 . 0 5
284.41
0.85
2 2 5 . 3 1
––
2 2 5 . 3 1
1994 - 95
Rs.
1 8 . 7 5
4 3 4 . 4 1
8 . 7 3
4 . 4 1
4 6 6 . 3 0
285.26
6.49
291.75
(Rs. in Lacs)
1993 - 94
Rs.
58.10
2.10
15.03
0.24
75.47
6 3
Reliance Industries Limited
Schedules forming part of the Profit and Loss Account
Schedule ‘H’
V a r i a t i o n i n S t o c k
Stock-in-Trade (at close)
Finished goods
Stock-in-process
Others
Stock-in-Trade (at commencement)
Finished goods
Stock-in-process
Others
Schedule ‘I’
1994 - 95
(Rs. in Lacs)
1993 - 94
Rs.
Rs.
Rs.
Rs.
2 3 . 0 0
7 . 7 5
0 . 1 1
2 7 . 7 9
1 5 . 7 8
1 . 0 0
3 0 . 8 6
4 4 . 5 7
( 1 3 . 7 1 )
27.79
15.78
1.00
72.60
28.87
0.88
44.57
102.35
(57.78)
1994 - 95
(Rs. in Lacs)
1993 - 94
M a n u f a c t u r i n g a n d o t h e r E x p e n s e s
Rs.
Rs.
Rs.
Rs.
Raw material consumed
Stock at commencement
Add: Purchases
Less: Stock at close
M a n u f a c t u r i n g E x p e n s e s
Carriage inward
Stores and spare parts
Dyes & Chemicals
Electric Power, fuel and water
Machinery repairs
Labour, Processing and machinery hire charges
Payment to and Provisions for employees
Salaries, Wages and Bonus
Contribution to Provident Fund, Gratuity Fund, Superannuation Fund,
Employees’ State Insurance Scheme, Pension Scheme, Labour
Welfare Fund etc.
Employees’ Welfare and other amenities
Retrenchment Compensation
Sales and 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
General Expenses
Provision for Doubtful debts
S c h e d u l e ‘ J ’
Interest
Fixed Loans
Others (Net)
6 4
1 4 . 1 1
1 7 8 . 6 8
1 9 2 . 7 9
1 . 9 2
0 . 0 6
5 . 4 2
0 . 1 1
7 9 . 6 7
0 . 1 1
2 . 2 9
1 9 5 . 2 7
6 1 . 2 3
1 8 . 3 3
5 4 . 7 9
0 . 0 5
3 . 0 3
6 . 0 2
2 . 6 3
––
1 3 . 7 5
3 . 5 9
1 . 1 0
0 . 5 4
0 . 4 4
0 . 2 5
0 . 3 5
8 . 9 1
––
1 9 0 . 8 7
87.66
3 2 9 . 6 2
633.12
214.50
203.27
64.78
582.45
647.23
14.11
0.26
31.10
0.32
169.06
0.76
13.00
167.14
16.13
12.22
7.78
0.01
9.62
21.98
4.77
0.10
10.75
2 5 . 4 8
47.23
3.40
5.00
0 75
1.07
0.44
0 35
8.73
7.27
27.01
1125.13
Rs. Lacs
1993 - 94
Rs.
11.53
11.73
23.26
1 5 . 1 8
6 4 8 . 8 1
1994 - 95
Rs.
5 . 8 6
4 . 8 0
1 0 . 6 6
Reliance Industries Limited
Schedule ‘K’
N o t e s o n A c c o u n t s
1 . Significant Accounting Policies
A . Basis of preparation of Financial Statements
i)
ii)
The Financial Statements have been prepared under the Historical Cost Convention in accordance with the generally
accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.
The same are prepared on a going concern basis.
The Company follows mercantile system of accounting and recognises significant items of income and expenditure on
accrual basis.
B . Fixed Assets and Depreciation
i)
ii)
Fixed assets are stated at acquisition cost less accumulated depreciation.
Depreciation on fixed assets is provided under the straight line method at the rates and in the manner prescribed by
Schedule XIV to the Companies Act, 1956.
C .
I n v e n t o r i e s
i)
ii)
Raw Materials, Stores, Spares, Dyes & Chemicals are valued at cost.
Stock-in-process is valued at cost including related overheads.
iii) Finished Goods are valued at cost or market value, whichever is lower. Costs includes cost of production and expenses
incurred in putting the inventories in their present location and condition.
D . S a l e s
Sales is net of excise & sales tax collected from customers.
E . E m p l o y e e / R e t i r e m e n t B e n e f i t s
i)
Company’s contributions to Provident Fund, Superannuation Fund and other funds for the year are charged to Profit
and Loss Account.
ii) Gratuity is charged to Profit and Loss Account on the basis of actuarial valuation.
2 .
Figures of the previous year have been regrouped/rearranged wherever necessary.
3 . Auditors’ Remuneration:
(a) Audit fees
(b) Tax audit fees
1994 - 95
Rs.
0 . 2 5
0 . 1 0
0 . 3 5
Rs. Lacs
1993 - 94
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.4.09 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 profits for the year.
5 . Contingent Liabilities
Claims against the Company not acknowledged as debts
6 .
Licensed & Installed Capacity
As at
3 1 s t M a r c h ,
1 9 9 5
1 . 5 0
Rs. Lacs
As at
31st March,
1994
6.10
Licensed Capacity
Installed Capacity
31.3.95
31.3.94
31.3.95
31.3.94
Spindles
N.A.
N.A.
11816
23336
7 . Production of finished products meant for sale
Blended Yarn
8 . Value of imports on CIF basis
9 . Expenditure in-foreign currency
Unit
M.T.
1 9 9 4 - 1 9 9 5
1993-1994
2 4 3
––
––
973
––
––
6 5
Reliance Industries Limited
S c h e d u l e ‘ K ’ ( C o n t d )
10. Quantitative Information
a) Opening stock
i)
Finished Stock
Yarn
ii)
Stock in process (Yarn)
iii) Others
b) Closing stock
i)
ii)
Finished stock (Yarn)
Stock in process (Yarn)
iii) Others
c ) Sales
Yarn
1176.13
d) Raw Material Consumed
Cotton
Fibre
Viscose
11. Value of Raw Material Consumed
Unit
Quantity
1994 - 95
1993 - 94
Rs.
Lacs
Quantity
Rs.
L a c s
M.T.
2 6
2 7 . 7 9
1 5 . 7 8
1 . 0 0
6 9
28.87
M.T.
1 8
2 3 . 0 0
2 6
7 . 7 5
0 . 1 1
72.60
0.88
27.79
15.78
1.00
M.T.
2 5 1
3 1 4 . 4 2
1016
M.T.
M.T.
M.T.
1 0 4
1 4 2
3 2
5 5 . 2 3
1 1 9 . 3 6
1 6 . 2 8
206
517
319
67.75
377.57
187.80
Rs.
Lacs
1994 - 95
% of total
Consumption
1993 - 94
Rs.
% of total
L a c s Consumption
Indigenous
1 9 0 . 8 7
1 0 0 . 0 0
633.12
100.00
12. Value of stores, spare parts
dyes & chemicals
Rs.
Lacs
1994 - 95
% of total
Consumption
1993 - 94
Rs.
% of total
L a c s Consumption
Indigenous
5 . 5 3
1 0 0 . 0 0
31.42
100.00
13. Earnings in foreign exchange
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
Directors
H.P. Chaturvedi
Partner
Bombay
Dated: 25th April, 1995
6 6
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
Reliance Industries Limited
Reliance Industrial Investments and Holdings Limited
Regd. Office
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Bombay - 400 021.
6 7
Reliance Industries Limited
Directors’ Report
To the Members,
Your Directors present the Ninth Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 1995.
F i n a n c i a l R e s u l t s
Profit before tax
Less: Provision for taxation
Profit after tax
Less: Short provision of tax for the earlier year
Add: Balance in Profit & Loss Account
Less: a. Transfer to General Reserve
b. Proposed Dividend
Balance carried forward to Balance Sheet
1994 - 95
6 4 7 . 1 6
6 0 . 0 0
5 8 7 . 1 6
4 . 0 1
5 8 3 . 1 5
1 7 2 . 3 1
7 5 5 . 4 6
6 0 5 . 7 7
1 4 9 . 6 9
Rs. Lacs
1993 - 94
879.03
152.00
727.03
3.34
723.69
0.72
724.41
552.10
172.31
72.70
479.40
6 0 . 0 0
5 4 5 . 7 7
I n c o m e
During the year, the Company received dividend income of Rs.535.37 lacs from investments.
D i v i d e n d
Your Directors are pleased to recommend a dividend of Re.0.37 per share on 14,75,04,400 Equity Shares of Rs.10/- each (subject
to deduction of tax at source) for the financial year ended 31st March, 1995 aggregating to Rs. 545.77 lacs.
D i r e c t o r s
Shri Sandeep Junnarkar was appointed as an Additional Director of the Company on 5.10.1994. He holds office of Director up to the
date of the ensuing Annual General Meeting and is eligible for re-appointment. Shri Satish Seth retires by rotation and being eligible
offers himself for re appointment
Shri Manoj H. Modi resigned from the Board of Directors of the Company on 5.10.1994 The Directors record their appreciation for the
valuable services rendered by Shri Manoj H. Modi during his tenure as Director.
P e r s o n n e l
The Company has not paid any remuneration attracting the provisions of Companies (Particulars of Employees) Rules, 1975 read with
Section 217(2A) 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 absorption. There was no foreign exchange earnings or outgo during
the year.
D e p o s i t s
The Company has not accepted any deposit from the public. Hence, no information is required to be appended to this report in terms
of Non-Banking Financial Companies (Reserve Bank) Directions, 1977.
Auditors
The Auditors of the Company, M/s. Rajendra & Co. and M/s. 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 reappointment, if made, would be within the prescribed limits under Section 224(1-B) of the Companies Act, 1956.
For and on behalf of the Board Alok Agarwal Satish Seth Directors Bombay Dated: 25th April, 1995 Sandeep Junnarkar -
Bombay
Dated: 25th April, 1995
6 8
For and on behalf of the Board
Alok Agarwal
Satish Seth
Directors
Sandeep Junnarkar
Reliance Industries Limited
Auditors’ Report
T o
The Members of Reliance Industrial Investments and Holdings Limited,
We have audited the attached Balance Sheet of RELIANCE INDUSTRIAL INVESTMENTS AND HOLDINGS LIMITED as at 31st
March, 1995, 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 purpose 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,1995 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.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Bombay
Dated: 25th April,1995
R a j e s h D . C h a t u r v e d i
Partner
R . J . S h a h
Partner
Annexure to Auditors’ Report
Referred to in Paragraph 1 of our Report of even date
1 . As the Company had no Fixed Assets during the year, Clauses 4(A)(i) and (ii) of the said Order are not applicable.
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.
3 .
4 .
5 .
6 .
The Company had received an interest free unsecured loan from the holding Company. It has not taken any other loan, secured
or unsecured, from companies, firms and 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.
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 the loans and advances in the nature of loans given by the Company, parties are generally repaying the principal
amounts as stipulated and are also regular in the payment of interest.
In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from
the public.
7 .
In our opinion the Company has an internal audit system commensurate with its size and the nature of its business.
8 . According to the information and explanations given to us, the provisions of the Employees’ Provident Fund and Miscellaneous
Provisions Act,1952 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,1995 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. Adequate documents and records are maintained by the Company for the loans and advances granted 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.
In our opinion, the Company has maintained proper records and made timely entries in respect of investments dealt in or traded
by the Company. The Company’s investments are held in its own name, save and except, those in the process of being
transferred in its name.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Bombay
Dated: 25th April,1995
R a j e s h D . C h a t u r v e d i
Partner
R . J . S h a h
Partner
6 9
Reliance Industries Limited
Balance Sheet as at 31st March, 1995
Sources of Fun ds
S h a r e h o l d e r s ’ F u n d s
Capital
Reserves & Surplus
General Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Profit and Loss Account
Loan Funds
Unsecured Loans
(From Holding Company)
Total
Application of Funds
Investments ‘ B ’
Current Assets, Loans and Advances
Current Assets
Sundry Debtors
Cash and Bank Balances
`C’
Loans and Advances
Less:
Current Liabilities and Provisions
‘ D ’
Current Liabilities
Provisions
Schedule
1994 - 95
(Rs. in Lacs)
1993 - 94
Rs.
Rs.
Rs.
Rs.
‘ A ’
1 4 7 5 0 . 4 4
14750.44
2 6 5 . 1 6
192.46
6 0 . 0 0
3 2 5 . 1 6
1 4 9 . 6 9
72.70
265.16
172.31
4 7 4 . 8 5
437.47
2 8 1 3 0 . 3 5
4 3 3 5 5 . 6 4
31533.00
46720.91
4 2 4 4 2 . 6 4
42310.98
––
1 1 9 4 . 1 6
1 1 9 4 . 1 6
3 3 1 . 2 9
1 5 2 5 . 4 5
5 . 6 4
6 0 6 . 8 1
6 1 2 . 4 5
1835.26
2982.87
4818.13
256.21
5074.34
31.97
632.44
664.41
Net Current Assets
Total
9 1 3 . 0 0
4 3 3 5 5 . 6 4
4409.93
46720.91
Notes on Accounts
‘F’
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Alok Agarwal
Rajesh D. Chaturvedi
Partner
R.J. Shah
Partner
Satish Seth
Directors
Sandeep Junnarkar
Bombay
Dated: 25th April, 1995
7 0
Profit and Loss Account for the Year ended 31st March, 1995
Schedule
1994 - 95
(Rs. in Lacs)
1993 - 94
Rs.
Rs.
Rs.
Rs.
Reliance Industries Limited
I n c o m e
Dividend Income
(Tax deducted at source Rs.132.32 lacs
Previous year Rs.118.22 lacs)
Interest Received
(Tax deducted at source Rs.NIL previous year Rs.32.88 lacs)
Commission & Brokerage
Profit on Sale of Investments (Net)
5 3 5 . 3 7
478.13
7 4 . 7 3
3 . 8 1
3 8 . 3 2
6 5 2 . 2 3
162.59
––
317.33
958.05
E x p e n d i t u r e
Establishment & Other Expenses
‘ E ’
5 . 0 7
79.02
Profit before tax
879.03
Less: Provision for taxation
Profit after tax
Less: Short provision of tax for the earlier year
Add: Balance brought forward from last year
Amount available for appropriation
Appropriations
General Reserve
Proposed Dividend
(Subject to Tax)
B a l a n c e c a r r i e d t o B a l a n c e S h e e t
Notes on Accounts
‘F’
6 4 7 . 1 6
72.70
479.40
6 0 . 0 0
5 8 7 . 1 6
4 . 0 1
5 8 3 . 1 5
1 7 2 . 3 1
7 5 5 . 4 6
6 0 5 . 7 7
1 4 9 . 6 9
152.00
727.03
3.34
723.69
0.72
724.41
552.10
172.31
6 0 . 0 0
5 4 5 . 7 7
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Alok Agarwal
Rajesh D. Chaturvedi
Partner
R.J. Shah
Partner
Bombay
Dated: 25th April, 1995
Satish Seth
Directors
Sandeep Junnarkar
7 1
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘C’
31st March, 1994
S h a r e C a p i t a l
Authorised
149990000
10000
Equity Shares of Rs.10/- each
11 % Non-Cumulative Redeemable
Preference Shares of Rs.10/- each
Issued & Subscribed
147504400
Equity Shares of Rs.10/- each
fully paid up (held by Reliance Industries Limited,
the holding Company)
S c h e d u l e ‘ B ’
(Rs. Lacs)
Investments (Valued, Verified & Certified by Management)
( A ) Q u o t e d
Equity Shares - Fully Paid-up
13067712
Larsen & Toubro Ltd. of Rs.10/- each
882370
Kothari Sugars and Chemicals Ltd. of Rs.10/- each
* 95796000
Reliance Petroleum Ltd. of Rs.10/- each
17800
Nirma Ltd. of Rs.10/- each
34500 Global Trust Bank Ltd. of Rs.10/- each
(––)
De b ent ur es - Par tly Paid-up
––
(235400)
16% Secured Optionally fully Convertible Debentures
of Reliance Polypropylene Ltd. of Rs.50/- each
––
(183600)
16 % Secured Optionally fully Convertible Debentures
of Reliance Polyetheylene Ltd. of Rs.50/- each
As at
Rs.
1 4 9 9 9 . 0 0
1 . 0 0
1 5 0 0 0 . 0 0
(Rs. in Lacs)
As at
31st March,1995
Rs.
14999.00
1.00
15000.00
1 4 7 5 0 . 4 4
14750.44
1 4 7 5 0 . 4 4
14750.44
As at
3 1 s t M a r c h , 1 9 9 5
R s .
As at
31st March,1994
Rs.
1 3 1 3 9 . 7 2
3 3 7 . 3 0
9 5 7 9 . 6 0
1 9 . 5 8
3 . 4 5
––
––
13139.72
337.30
9579.60
19.58
––
40.02
31.21
* 95796000
Secured Tripal Option Convertible Debentures
(TOCDS) of Reliance Petroleum Ltd. of Rs.50/- each
9 5 7 9 . 6 0
9579.60
(B) Unquoted
Equity Shares - Fully Paid-up
22900 Observer (India) Ltd. of Rs.10/- each
(26400)
(C ) S har e Application Money
Pending Adjustment towards
Shares/TOCDS of Reliance Petroleum Ltd.
HDFC Bank Ltd.
2000000 Equity Shares of Rs.10/- each
Quoted Investments - Book Value
Market Value
3 . 7 9
4.35
9 5 7 9 . 6 0
9579.60
2 0 0 . 0 0
4 2 4 4 2 . 6 4
3 2 6 5 9 . 2 5
8 6 7 8 0 . 1 0
––
42310.98
32707.45
59316.65
*The Company’s investment in Reliance Petroleum Ltd. is towards promoters contribution . This is subject to lock in period of five
years from the date of commercial production, that is till 30th June, 2001.
7 2
Schedules forming part of the Balance Sheet
Schedule ‘C’
Current Assets, Loans and Advances
Current Assets
Sundry Debtors
(Unsecured, considered good subject to confirmation)
Over six months
Others
Cash and Bank Balances:
Cash on hand
Balance with a Scheduled Bank:
In Current Account
In Fixed Deposit Account
Loans and Advances
Advances recoverable in cash or in kind or for value
to be received
Deposit
Advance Payment of Taxes
# Utilised to acquire stockinvest instrument.
Schedule ‘D’
Current Liabilities and Provisions
Current Liabilities
Sundry Creditors
Other Liabilities
Provisions
For Taxation
Proposed Dividend
Reliance Industries Limited
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
––
––
0 . 0 7
1 1 9 4 . 0 9
––
3 5 . 6 7
1 0 0 . 0 0
1 9 5 . 6 2
36.05
1799.21
––
1835.26
0.01
375.18
2607.68
#--------------
1 1 9 4 . 1 6
2982.87
41.81
––
214.40
3 3 1 . 2 9
1 5 2 5 . 4 5
256.21
5074.34
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
––
5 . 6 4
6 1 . 0 4
5 4 5 . 7 7
2.46
29.51
5 . 6 4
31.97
153.04
479.40
6 0 6 . 8 1
6 1 2 . 4 5
632.44
664.41
7 3
Reliance Industries Limited
Schedule Forming part of the Profit & Loss Account
Schedule ‘E’
Establishment & other Expenses
Salary, Wages and Bonus
Legal & Professional Charges
Filing Fees
Miscellaneous Expenses:
Interest Tax
Brokerage Paid
Other Administrative Expenses
Auditors’ Remuneration:
Audit Fees
Tax Audit Fees
S c h e d u l e ‘ F ’
N o t e s o n A c c o u n t s
1 . Basis of Preparation of Financial Statements
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
––
0 . 0 6
2 . 2 2
1 . 0 0
0 - 5 0
1 . 2 8
––
0 . 0 1
2 . 2 8
1 . 5 0
5 . 0 7
0.75
1.24
75.01
0.52
1.50
79.02
0.05
––
0.47
1.00
0.50
a)
The financial statements have been prepared under the historical cost convention, in accordance with the generally
accepted accounting principles and the provisions of the Companies Act,1956 as adopted consistently by the Company.
b)
Investments are stated at cost.
2 . Previous year’s figures have been regrouped and/or rearranged wherever necessary.
3 . Contingent Liabilities
As at
3 1 s t M a r c h , 1 9 9 5
R s . L a c s
Uncalled liabilities on partly paid shares/debentures
2 8 7 3 8 . 8 0
As at
31st March,1994
Rs. Lacs
28843.55
4 . As the Company is not a manufacturing company, information required under paragraphs 3 and 4 of Schedule Vl of the
Companies Act,1956 is not given.
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Alok Agarwal
Rajesh D. Chaturvedi
Partner
R.J. Shah
Partner
Satish Seth
Directors
Sandeep Junnarkar
Bombay
Dated: 25th April, 1995
7 4
Reliance Petroproducts Limited
Regd. Office:
201/202, Lalita Complex,
Near Vijaya Bank,
352/3, Rasala Road,
Navrangpura,
Ahmedabad 380 009.
Reliance Industries Limited
7 5
Reliance Industries Limited
Directors’ Report
To the Members
Your Directors present the Fifth Annual Report together with the Audited Statement of Accounts for the Financial Year ended 31st
March, 1995.
F i n a n c i a l R e s u l t s
The Company made a profit of Rs.0.21 lac during the year under review as against loss of Rs.0.12 lac for the previous year.
D i v i d e n d
In view of the accumulated losses of previous years, the Board of Directors has not recommended any dividend for the financial year
under review.
D i r e c t o r s
As per the provisions of the Companies Act, 1956, Shri J.S. Bakshi retires by rotation and being eligible offers himself for re-
appointment.
D e p o s i t
The Company has not accepted any deposit from the public. Hence, no information is required to be appended to this report.
P e r s o n n e l
The Company has not paid any remuneration attracting the provisions of the Companies (Particulars of Employees) Rules, 1975 read
with Section 21 7(2A) 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
As no manufacturing activities have commenced till the date of this report, no information is required to be disclosed in respect of
conservation of energy, technology absorption and foreign exchange earnings and outgo.
Auditors
The Auditors of the Company, M/s. Rajendra & Co. and M/s. Chaturvedi & Shah, hold office until the conclusion of the ensuing
Annual General Meeting and are recommended for reappointment. The Company has received certificate from the Auditors to the
effect that their reappointment, if made, would be within the prescribed limits under Section 224(1-B) of the Companies Act,1956
Bombay
Dated: 25th April, 1995
For and on behalf of the Board
J . S . B a k s h i
K . K . S e t h
Directors
7 6
Reliance Industries Limited
Auditors’ Report
T o
The Members of Reliance Petroproducts Limited
We have audited the attached Balance Sheet of Reliance Petroproducts Limited as at 31st March,1995 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 purpose of our audit.
b)
c )
d)
In our opinions proper books of account as required by law have been kept by the Company so far as appears from our
examination of such books.
The Balance Sheet and Profit and Loss Account referred to in 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)
ii)
in so far as it relates to the Balance Sheet of the state of affairs of the Company as at 31st March 1995, 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.
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Bombay
Dated: 25th April,1995
D e v a n a n d C h a t u r v e d i
Partner
R . J . S h a h
Partner
Annexure to Auditors’ Report
Referred to in Paragraph 1 of our Report of even date
1 . As the Company had no Fixed Assets during the year, clauses 4(A)(i) and (ii) of the said Order are not applicable.
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.
3 .
4 .
5 .
6 .
The Company has received 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.
The Company has not granted any loan, 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-j-(1 B) of Section 370 of the Companies Act,1956.
In respect of loans and advances in the nature of loans given by the Company, free of interest, parties are generally repaying the
principal amounts as stipulated.
In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits as
defined under Section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,1975 during the
year.
7 . According to the information and explanations given to us and in our opinion, internal audit is not required statutorily.
8 . According to the information and explanations given to us, the provisions of the Employees’ Provident Fund and Miscellaneous
Provisions Act,1952, 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,1995 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.
Bombay
Dated: 25th April,1995
D e v a n a n d C h a t u r v e d i
Partner
R . J . S h a h
Partner
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
7 7
Reliance Industries Limited
Balance Sheet as at 31st March, 1995
Schedule
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
Sources of Funds
S h a r e h o l d e r s ’ F u n d s
Share Capital
Loan Funds
Unsecured Loans
‘ A ’
0 . 1 3
3 0 4 5 7 . 6 0
(From Holding Company)
Totalgggggggggggggggg
3 0 4 5 7 . 7 3
Application of Funds
Current Assets, Loans and Advances
‘ B ’
Cash and Bank Balances
Loans & Advances
Less: Current Liabilities and Provisions
‘C’
Liabilities
Provisions
M i s c e l l a n e o u s E x p e n d i t u r e
(To the extent not written off or adjusted)
Profit and Loss Account
0 . 8 0
3 0 4 5 7 . 0 4
3 0 4 5 7 . 8 4
0 . 1 0
0 . 1 4
0 . 2 4
0.08
––
0.08
0.20
––
0.20
3 0 4 5 7 . 6 0
0 . 0 3
0 . 1 0
Notes on Accounts:
‘ D ’
Totalaaaaaaaaa
3 0 4 5 7 . 7 3
0.13
0.10
0.23
(0.12)
0.04
0.31
0.23
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Devanand Chaturvedi
Partner
R.J. Shah
Partner
J.S. Bakshi
K.K. Sheth
Directors
Bombay
Dated: 25th April, 1995
7 8
Reliance Industries Limited
Profit and Loss Account for the year ended 31st March, 1995
Schedule
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
I n c o m e
Commission
E x p e n d i t u r e
Audit Fees
General Expenses
Miscellaneous Expenditure written off
Profit before tax/(Loss)
Less: Provision for taxation
Profit after tax/(Loss)
Add: Balance brought forward from the last year
Balance carried to Balance Sheet
Notes on Accounts:
‘ D ’
0 . 4 6
––
0 . 4 6
––
0 . 1 0
––
0 . 0 1
0.10
0.01
0.01
0 . 1 1
0 . 3 5
0 . 1 4
0 . 2 1
( 0 . 3 1 )
( 0 . 1 0 )
0.12
(0.12)
––
(0.12)
(0.19)
(0 31)
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Devanand Chaturvedi
Partner
R.J. Shah
Partner
Bombay
Dated: 25th April, 1995
J.S. Bakshi
K.K. Sheth
Directors
7 9
Reliance Industries Limited
Schedules forming part of the Balance Sheet
Schedule ‘A’
S h a r e C a p i t a l
Authorised:
50,000
Equity Shares of Rs.10/- each
Issued & Subscribed:
1,300
Equity Shares of Rs.10/- each fully paid up
(held by Reliance Industries Limited, the Holding Company)
Schedule ‘B’
Current Assets
C a s h a n d B a n k B a l a n c e s
Balance with a Scheduled Bank
In Current Account
Loans and Advances
Unsecured - (Considered Good)
As at
31st March,1995
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
5 . 0 0
0 . 1 3
0 . 1 3
5.00
0.13
0.13
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
0 . 8 0
0.08
Advances recoverable in cash or in kind or
for value to be received
Deposits
2 8 9 5 5 . 0 0
1 5 0 2 . 0 4
––
––
Schedule ‘C’
Current Liabilities and Provisions
Current Liabilities
Sundry Creditors
Provisions
Provision for taxation
S c h e d u l e ‘ D ’
N o t e s o n A c c o u n t s
3 0 4 5 7 . 0 4
3 0 4 5 7 . 8 4
––
0.08
As at
31st March,1995
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1994
Rs.
Rs.
0 . 1 0
0 . 1 4
0.20
––
0 . 2 4
0 . 2 4
0.20
0.20
1) As no Manufacturing and/or Trading activities were carried out during the year, information required under paragraphs 3 and 4
ofSchedule Vl of the Companies Act, 1956 are not applicable.
2)
Figures of the previous year have been regrouped/rearranged wherever necessary.
3) Basis of Preparation of Financial Statements:
a)
b)
The financial statements have been prepared under the historical cost conventions, in accordance with the generally
accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.
The Company follows mercantile system of accounting and recognises significant items of income and expenditure on
accrual basis.
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Devanand Chaturvedi
Partner
R.J. Shah
Partner
Bombay
Dated: 25th April, 1995
8 0
J.S. Bakshi
K.K. Sheth
Directors
Reliance Industries Limited
8 1
Reliance
Industries Limited
Where growth is a way of life
Reliance Industries Ltd. Maker Chambers IV, Nariman Point, Bombay - 400 021. Fax 022-2042268
Reliance Industries. Ltd. Meridien Commercial Tower, 5th Floor, Windsor Place, Janpath, New Delhi 110 001. Fax: 011 -3714295
Reliance Europe Ltd. Bastion House, London Wall, London EC 2Y 5 DN. Fax: 44-171-600-1757