Reliance Industries Limited
Annual Report 1995-96
92
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Sales - Rs. 7,786 crores (US$ 2,267 million)
Operating Profit (EBDIT) - Rs.1,752 crores (US$ 510 million)
Cash Profit (EBDT) - Rs.1,642 crores (US$ 478 million)
Net Profit - Rs.1,305 crores (US$ 380 million)
Total Assets - Rs.15,038 crores (US$ 4,378 million)
Over 2.6 million shareholders
Compounded Annual Net Profit growth over 5 years - 60%
Compounded Annual Earnings Per Share growth over 5 years - 28%
India’s largest shareholder family
India’s largest private sector enterprise
Board of Directors
Dhirubhai H. Ambani
Chairman
Mukesh D. Ambani
Vice Chairman & Managing Director
Anil D. Ambani
Managing Director
Nikhil R. Meswani
Executive Director
Hital R. Meswani
Executive Director
Suresh S. Betrabet
Nominee Director - ICICI
Yashwant D. Patil
Nominee Director - GIC
Ramniklal H. Ambani
Natvarlal H. Ambani
Mansingh L. Bhakta
T. Ramesh U. Pai
Yogendra P. Trivedi
Vinod M. Ambani
Secretary
Solicitors & Advocates
Kanga & Co.
Auditors
Chaturvedi & Shah
Rajendra & Co.
Bankers
ABN AMRO Bank
Allahabad Bank
Amer ican Express Bank
Bank of America
Bank of Baroda
Canara Bank
Central Bank of India
Citi Bank N.A.
Deutsche Bank
HDFC Bank Ltd.
Hongkong Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of India
Syndicate Bank
Vijaya Bank
Registered Office
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai 400 021, India.
Tel. Nos. 2831633/2816,2826070
Fax No. 022-2042268
E-Mail: investor@ril.com
Internet: http://www.ril.com
Manufacturing Facilities
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 P.O.,
Surat-Hazira Road,
Surat 394 510, Gujarat State, India.
Subsidiary Companies
1. Devti Fabrics Limited
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021, India.
2. Reliance Industrial Investments and
Holdings Limited
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021, India.
Registrars & Transfer Agent
Reliance Consultancy Services Limited
56, Mogra Village Lane,
Off. Old Nagardas Road, Andheri (East),
Mumbai 400 069, India.
Tel. Nos. 8367015/16/17/18
Fax No. 022-8367019
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Contents
Letter to Shareholders
Investor Care
Consistent Performance
Business Mix
Financial Highlights
Key Indicators
India’s Largest Selling Brands
Marketing Network
Markets
Review of Operations
Fibres Business
Fibre Intermediates Business
Polymers Business
Chemicals Business
Textiles Business
Oil & Gas Business
Projects and Expansions
Hazira Petrochemicals Complex
Jamnagar Petrochemicals Complex
Environment, Health & Safety
Quality
Research and Development
Energy Conservation
Foreign Exchange Savings & Taxes Paid
Employment
Social Responsibility & Community Development
New Growth Areas
Reliance Petroleum
Reliance Telecom
Product Flow Chart
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
Cash Flow Statement
Documents of Subsidiary Companies
Listing & Investor Relations Information
Page No.
5
7
8
9
10
11
12
14
15
16
17
18
19
20
21
22
26
28
30
31
32
33
34
35
36
37
39
41
43
46
48
49
50
62
67
68
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Dhirubhai H. Ambani
Chairman
Mukesh D. Ambani
Vice Chair man & Managing Director
Anil D. Ambani
Managing Director
4
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Letter to Shareholders
Financial Performance
rate a company higher than the country in which
I am pleased to repor t to the shareholders of
the company is domiciled. The leading Indian
Reliance Industries Limited that the company has
rating agency, Credit Rating and Info rmation
posted excellent results for the financial year ended
Services India Limited (CRISIL), S & P’s Indian
March 31,1996. Some of the key numbers are as shown in
associate, assigned Reliance’s long term credit
the table below:
Sales
“AAA” rating,designating “Highest Safety”.
Rs. 7,786 crores
US$ 2,267 million
+ 11 %
T h e s e r a t i n g s e n a bl e d R e l i a n c e t o ra i s e
U S $ 3 0 0 m i l l i o n ( R s. 1 , 0 3 0 c r o r e s ) i n t h e
Operating Profit
Rs. 1,752 crores
US$ 510 million
+ 8 %
Cash Profit
Net Profit
Taxes paid
Rs. 1,642 crores
US$ 478 million
Rs. 1,305 crores
US$ 380 million
Rs. 2,234 crores
US$ 650 million
+ 22 %
+ 23 %
i n t e r n a t i o n a l d e b t m a r ke t i n t wo l a n d m a r k
transactions in 1995. Reliance became the first
I n d i a n p r i va t e s e c t o r c o m p a ny
t o
r a i s e
US$ 150 million (Rs. 515 crores) as a 7 year
+ 4 %
syndicated bullet loan at a floating rate of LIBOR
Earnings per share Rs. 27.9
+ 19 %
plus 1%, and to issue 10 year bonds of US$ 150 million
US 81 cents
(Rs. 515 crores) in the US mar ket, without any
Net Worth
Rs. 8,405 crores
US$ 2,447 million
+ 17 %
guarantee or security from banks, financial institutions
or the government.
Landmark Transactions
These transactions assisted Reliance in reducing
During the year, Reliance became the first private
the overall cost of capital at a time when money
sector company in India to be rated by international
market conditions in India were stringent. These
credit rating agencies. Three US based international
transactions were also consistent with the conservative
rating agencies, i.e. Standard and Poor’s (S&P),
financial policy adopted by the company.
M o o d y ’s and T h e N a t i o n a l A s s o c i a t i o n o f
T h e i nve s t m e n t gr a d e ra t i n g s o b t a i n e d f r o m
Insurance Commissioners (NAIC) rated Reliance during
international rating agencies continue to provide
the year. S & P rated Reliance “BB+, Stable Outlook,
c o m fo r t
t o
l e n d e r s v i s - a - v i s R e l i a n c e ’s
constrained by the Sovereign Ceiling”, Moody’s rated
creditwor thiness.
“Baa3, Investment Grade, constrained by the
Capital Expenditure
So ve r e i g n C e i l i n g ” a n d N A I C rated “ N A I C 2 ,
Reliance continues to enhance the long term net
I nve s t m e n t G r a d e ” , i n t h e b a ck g r o u n d t h a t
worth of shareholders, through its basic strategy of
international rating agencies generally do not
creating productive assets. In less than 20 years,
In less than 20 years, Reliance has created a world-class asset base of over Rs.15,000 crores (US$ 4,367 million).
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
5
Letter to Shareholders
Reliance has created a world-class asset base
Reliance believes that its chosen strategies will
which is stated in the balance sheet at ove r
continue to reward shareholders, in the challenging
Rs. 15,000 crores (US$ 4,367 million). Significant
environment likely to emerge for Indian industry
additions w ere made to the asset base during
in the years ahead. Reliance will:
1995-96, with capital expenditure for the year
l avail opportunities in a growing domestic market;
standing at Rs. 2,984 crores (US$ 869 million).
l remain technologically world-class;
Cumulative capital expenditure for the past two years
l maintain leading market positions;
amounts to Rs. 6,242 crores (US$ 1,817 million),
l maintain global cost competitiveness;
among the highest in Indian industry. Several plants
l build production capacity ahead of demand where a
of global scale, capable of delivering world-class
potential for strong demand growth is evident;
quality and value, are being commissioned in the
l focus on conservative financial management.
current year.
Quality
Maximisation of shareholder value by customer value
enhancement will be the key driving force. Reliance
Following last year’s ISO cer tification of the
will continue to create and enhance value for
Patalganga manu facturing complex, Reliance
customers by producing quality products which can
r e c e i ve d I S O 9 0 0 2 c e r t i f i c a t i o n f o r a l l i t s
be benchmarked against international standards
manufacturing as well as utility plants at the Hazira
Reliance views the future with great optimism and
complex. The ISO standard assures customers of an
is confident of
further enhancing
its role
efficient and reliable quality management system.
as a unique value creator
for all
its
Putting customers first is the underlying philosophy
stakeholders.
at work behind efforts at quality improvement
Growth and Outlook
Reliance will emerge as a petrochemicals company of
truly global size and scale upon completion of the
current expansion at Hazira. For the future, while
remaining focussed on its core petrochemicals
bu s i n e s s , R e l i a n c e i s a l s o p u r s u i n g ex c i t i n g
opportunities in the other fast growing infrastructural
sectors of Oil & Gas, Power and Telecom.
May 27,1996
Dhirubhai H. Ambani
Chairman
Reliance Industries Limited
Maximisation of shareholder value by customer value enhancement
will continue to be the driving force for Reliance.
6
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Investor Care
Reliance is pr ivileged to enjoy the
t o a d d r e s s
t h e n e e d s o f
i t s
suppor t of over 2.6 million domestic
shareholders. During the year, a new
and inter national investors, the largest
Investor Relations Centre was opened
shareholder family in the Indian
in a c e n t r a l l o c a t i o n i n M u m b a i
cor porate sector. An overwhelming
(a complete list of such centres
In the future, Reliance is committed to
being among the first to opt into a
depositor y based mechanism as
s o o n a s
t h e s a m e b e c o m e s
operational, as it is the introduction
of paper-less trading alone that can
major ity of these investors are
appears on the inside back cover of
provide a lasting solution to the
individual and small shareholders,
this Annual Report).
shor tcomings of the existing system.
who together own almost 40% of the
company’s equity.
Reliance will maintain an emphasis
I t i s a m a t t e r o f g r e a t p r i d e t o
on timely resolution of investors’
Reliance has always taken the lead in
queries and the strengthening of an
reaching out to its investors . The
active investor grievance mechanism,
compan y oper ates 15
Investor
to reinforce the strong bonds between
R e l i a n c e t h a t t h e c o m p o u n d e d
a n nu a l i s e d r a t e o f r e t u r n o n a n
investment made in its shares in 1977
is currently over 25%. Reliance will
persevere with its effor ts to maximise
Relations Centres across the countr y
the company and its shareholders.
shareholders’ wealth at all times.
Our Shareholders
19%
26%
12%
3%
Promoters
Banks
Indian Financial Ins titutions
40%
Public
International Investors
Reliance is privileg ed to enjoy the suppor t of over 2.6 million domestic and international Investors.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
7
R e l i a n c e
h a s
d e m o n s t r a t e d
consistent perfor mance in growth
and profitability over the years. This
i s c l e a r l y
i n d i c a t e d b y
t h e
compounded annual rate of growth
unique perfor mance.
( C A R G ) i n s a l e s a n d n e t p r o f i t
Consistent Performance
over the last 12, 5 and 3 y ears.
CARG %
Efficient management of resources
12 years 5 years
3 years
has largely been responsible for this
Sales
Net Profit
24
29
30
60
24
60
Performance in the Post
T h e t i m e - s p a n f r o m 1 9 9 1 - 9 2 t o
has demonstrated that it has the
Reforms-Liberalisation Era
1995-96 is histor ically significant as
resources to meet the challenges of
Reliance has performed significantly
for the first time since independence,
c o m p e t i t i o n . A s s e t s, s a l e s a n d
better in the period after economic
Indian industr y was forced to face
p r o f i t s d u r i n g t h e p o s t r e fo r m s
reforms started in India in July, 1991.
international competition. Reliance
period have grown faster.
Post Reforms Performance
1991-92
1995-96
CARG
Rs. in crs
US$ in million
Rs. in crs
US$ in million
Net Worth
Sales
EBDIT
Cash Profit
Net Profit
EPS
CEPS
1,944
2,953
585
356
163
Rs. 7
Rs. 16
566
860
170
104
48
21 cents
46 cents
8,405
7,786
1,752
1,642
1,305
Rs. 28
Rs. 35
2,447
2,267
510
478
380
81 cents
US$ 1.02
%
44
27
32
47
68
40
22
Reliance has demonstrated consistent performance in growth and
profitability over the years, even in the post reforms era.
8
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Business Mix
Business Mix
9% 1%
33%
24%
5%
28%
Polyes ter
Textiles
Chemicals
Fibre Intermidiates
Plas tics
Oil & Gas
Distribution of Income
4%
1%
4%
3%
2%
16%
19%
51%
Manufacturing Expens es
Excis e Duty
Em ployee Cos t
Sales Expenses
Adm inis trative Expens es
Interest
Depreciation
Profit
R e l i a n c e I n d u s t r i e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
9
9
Financial Highlights
1995-’96
’94-’95 ’93-’94 ’92-’93 ’91 -’92 ’90-’91 ’89-’90
1985
1980
Rs. in crores
US $
millions
Rs. in
crores
Sales
2,267
7,786
7,019
5,345
4,106
2,953
2,098
1,841
733
208
Total Income
2,346
8,058
7,331
5,555
4,222
3,005
2,106
1,857
744
212
Earnings Before Depreciation,
Interest & Tax (EBDIT)
Depreciation
Profit After Tax
Taxes Paid to the Govt.
Equity Dividend %
Dividend Payout
Equity Share Capital
510
98
380
650
60
80
133
1,752
1,622
1,159
929
337
278
255
1,305
1,065
576
280
322
2,234
2,147
1,391
1,118
60
276
458
55
199
456
51
138
318
35
85
585
193
163
984
30
48
488
174
126
826
30
46
246
227
152
Reserves and Surplus
2,255
7,747
6,731
4,011
2,362
1,711
996
425
162
91
698
30
46
152
929
Net Worth
2,447
8,405
7,193
4,335
2,613
1,944
1,154
1,087
Gross Fixed Assets
3,311
11,374
8,390
5,132
4,641
4,314
2,186
1,999
139
37
71
373
50
25
52
254
311
736
Net Fixed Assets
2,688
9,233
6,585
3,600
3,368
3,338
1,483
1,469
607
31
7
11
74
25
3
12
19
32
75
58
Total Assets
4,378
15,038 11,529
8,121
6,083
4,880
2,712
2,553
1,046
153
Market Capitalisation
2,848
9,783
12,027 10,718
4,388
6,656
1,826
997
906
78
Number of Employees
----
14,255 12,560 11,873 11,944
11,940 11,666
11,355
9,066
6,646
1 US$ = Rs. 34 35 (Exchange rate as on 31 3.1996)
Rs. In Crores
8000
Total Income
Rs. in crores
Profits
6000
4000
2000
0
2000
1600
1200
800
400
0
91-92
92-93
93-94
94-95
95-96
91-92 92-93 93-94 94-95 95-96
PAT
EBDIT
Net Worth
Rs. in crores
8000
6000
4000
2000
0
91-
92
92-
93
93-
94
94-
95
95-
96
10
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Key Indicators
1995-’96
’94 ’95 ’93-’94 ’92-’93
’91-’92 ’90-’91
’89-’90
1985
1980
Figures in Rupees
US $
Rs.
Earnings Per Share-EPS
Cash Earnings Per Share-CEPS
Book Value
Debt: Equity Ratio
Operating Profit Margin %
Net Profit Margin %
Return on Net Worth %*
0.81
1.02
5.2
----
----
----
----
US$ = Rs.34.35 (Exchange rate as on 31.3.1996)
Excluding CWIP
27.9
23.4
18.1
13.1
7.2
8.3
6.9
13.8
9.3
35.2
29.5
26.1
24.5
15.7
19.7
16.6
21.1
15.0
179
158
136
106
85
75
71
59
26
0.49:1
0.35:1
0.58:1
0.84:1
0.92:1
0.61:1
0.55:1
1.66:1
1.15:1
22.5
23.1
21.7
22.6
19.8
23.3
23.1
19.0
14.9
16.8
15.2
10.8
7.8
5.5
6.0
25.3
23.7
18.2
20.7
17.1
12.2
4.9
9.0
9.7
5.3
30.6
40.0
R s . in crores
Assets
CEPS & EPS
Rs. in crores
Book Value
12000
8000
4000
0
Rs. in crores
40
30
20
10
0
95-
96
200
160
120
80
40
0
91-
92
92-
93
93-
94
Gross Fixed Assets
94-
95
Net Fixed Assets
91-92 92-93 93-94 94-95 95-96
91-92 92-93 93-94 94-95 95-96
EPS
CEPS
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
11
India’s Largest Selling Brands
Business
Beand
Product
Market Share
No. of Other
(% Share in
Production)
Players in
the Industry
Polyester
Recron
Texturised Yarn
38
29
51
42
38
55
49
10
23
2
6
2
3
4
Twisted/Dyed Yarn
Polyester Staple Fibre (PSF)
Polyester Filament Yarn (PFY)
Polymers Relene High Density
Polyethylene (HDPE)
Reclair
Linear Low Density
Polyethylene (LLDPE)
Reon
Polyvinyl Chloride (PVC)
Chemicals
Relab
Linear Alkyl Benzene (LAB)
Fibre
Intermediates
Purified Terephthalic Acid (PTA)
Mono Ethylene Glycol (MEG)
Textiles
Vimal
Suitings, Shirtings, Dress material,
Sarees
Harmony
Fur nishing fabrics, Day cur tains,
Automotive upholstery
SlumbeRel
Fibre filled pillows and sleep
products
Oil & Gas
Cr ude Oil & Natural Gas
(Note: Given the highly fragmented structure of the textiles industr y, the market share in case of Textiles - Vimal, Harmony, SlumbeRel is
difficult to work out. However, the share of these brands in the market controlled by top 5 premium brands is around 36%)
12
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
India’s Largest Selling Brands
Nearest
Brand Logo
End Uses
Technology Partner
Competitor’s
Market Share
13
8
35
21
38
30
27
Apparels, Home textiles,
E.l. DuPont, USA
Industrial sewing threads,
Automotive
Packaging - woven sacks,
Novacor, Canada
films, containers;
(earlier DuPont, Canada)
Household - luggage,
bathware, kitchenware;
Industrial - crates, pallets,
gas pipes, ropes;
Agriculture - water pipes
Packaging - films, squeeze
bottles;
Household - lid and caps,
water tanks;
Industrial - storage
containers, liners, cable
sheathing;
Agriculture - drip irrigation
Pipes & fittings, profiles,
Geon Company, USA
films & sheets, bottles,
(earlier B.F. Goodrich, USA)
containers, wire & cables
Detergents
UOP, USA
Raw material - polyester
ICI, UK
Raw material - polyester
ABB Lummus Crest, Netherlands
(Shell Process)
Apparels
Fur nishings, home textiles
Sleep products
E.l. DuPont, USA
Refining Power, Fertilizers
and Petrochemicals
Enron Oil & Gas, USA
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
13
Marketing Network
The extensive marketing network consists of over 500 distributors,
2,500 showrooms and 34,000 retail outlets. The customer base includes 25,000
industrial customers in addition to the retail markets throughout India.
14
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Markets
Domestic and International
India’s largest selling brands in their
and Polyester chips to China.
Reliance has one of the largest
categories.
mar keting networ ks in the Indian
Reliance intends to maintain its
i n d u s t r y, c o ve r i n g o ve r 5 0 0
focus on development of domestic
d i s t r i b u t o r s ,
a n d
3 4 , 0 0 0
markets, but will tap expor t markets
independently owned retail outlets
as oppor tunities arise . Effor ts are
for its branded textiles. Reliance’s
now focussed on expor t of PVC to
b r a n d s a r e a l l m a r k e t l e a d e r s.
Australia, Philippines, and Thailand;
The customer base includes over
W orsted Ya r n
t o
t h e U n i t e d
2 5 , 0 0 0 i n d u s t r i a l c u s t o m e r s i n
K i n g d o m ; D i E t hy l e n e G l y c o l
Reliance has won the ‘Top Expor ter
of Plastic Raw Material’ award from
the Plastics and Linoleum Expor t
Promotion Council for the second
consecutive year.
Another highlight of the year was a
3 0 0 % i n c r e a s e i n t h e ex p o r t o f
premium brand ‘Vimal’ fabr ics.
addition to retail mar kets all over
(DEG), Tr i Ethylene Glycol (TEG)
Global cost competitiveness and
I n d i a . T h i s ex t e n s i v e r e a c h h a s
and Te x t i l e s t o S o u t h A f r i c a ,
c u s t o m e r fo c u s a r e t h e k e y t o
e n a b l e d R e l i a n c e
t o c r e a t e
C h i n a , a n d
t h e N e t h e r l a n d s
success in expor t promotion.
Reliance intends to maintain its focus on development of domestic markets
but will tap expor t markets as opportunities arise.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
15
Review of Operations
Fibres Business
i t s s h a r e
i n
t o t a l d o m e s t i c
per annu m b y 1997-98. Wo r k a t
Polyester Staple Fibre (PSF)
p r o d u c t i o n
t o 3 8 % . R e l i a n c e
Hazira is fast nearing completion
Reliance’s polyester staple fibre
maintained production dur ing the
division has fur ther consolidated its
year at about 90,000 MT, inspite of
position in the domestic mar ke t
the shut down taken at Patalganga
t h r o u g h s p e c i a l e m p h a s i s o n
and Terene Fibres India Ltd (TFIL) -
improving operational efficiencies.
whose total capacity is dedicated to
I n n o v a t i ve p r o m o t i o n a l e f f o r t s
Reliance - for debottlenecking and
helped in g r owth of the existing
modernisation. TFIL’s plant at Thane
mar ket and development of new
has been modernised to world-class
and pre-commissioning activities
a r e u n d e r w a y t o ex p a n d P S F
capacity by commissioning two new
plants of 80,000 tonnes per annum
e a c h .
T h r e e m a n u f a c t u r i n g
complexes will ensure uninterrupted
supply of the widest PSF product
m a r k e t
s e g m e n t s ,
t h e r e b y
standards. This plant is now also
range in the countr y.
s u b s t a n t i a l l y
i n c r e a s i n g
t h e
producing high quality Dope Dyed
customer base. Consistent quality
Blac k PSF which has been we l l
a n d t o p c l a s s c u s t o m e r s e r v i c e
received by customers in India and
helped in establishing Reliance even
overseas. Reliance, along with TFIL,
more fir mly as the most “Preferred
w i l l b e i n c r e a s i n g c a p a c i t y t o
Supplier” and resulted in increasing
260,000 tonnes
P S F
38%
62%
Reliance's share in domestic
production
Other production
Polyester Filament Yarn (PFY)
I n l i n e w i t h t h e l a t e s t g l o b a l
trends, Reliance has successfully
d eveloped Micro Filament Ya r n s
and commercially marketed these in
s u b s t a n t i a l q u a n t i t i e s . R e l i a n c e
h a s a l r e a d y c o m p l e t e d a 5 , 0 0 0
tonnes per annum Fully Drawn Yar n
(FDY) plant at Patalganga. Reliance
has also commissioned a 60,000
tonnes per annum POY facility at
Hazira this year. Another 60,000
tonnes per annum POY facility is at
an advanced stage of completion.
Reliance is poised to substantially increase its market share in the fibres business
due to the advantages of vertical integration, market leadership and world scale plants.
16
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Review of Operations
The company’s production increased
largest producer of Paraxylene (PX).
As captive consumption of MEG will
17% from 90,000 MT to 105,000 MT,
The entire production of Paraxylene
be increasing consequent upon new
accounting for 29% of the industry
production of 360,000 MT. There is
likely to be excess supply in the near
future owing to the commissioning
i s c a p t i v e l y c o n s u m e d b y t h e
polyester capacities being added by
Company. Reliance produced about
250,000 MT of PTA, accounting for
55% of total industr y production of
PTA/DMT. The industr y continued to
Reliance, a second MEG plant of
120,000 tonnes per annum is being
implemented at Hazira.
of new capacities in the industr y. On
p r e fe r t h e P TA r o u t e f o r t h e
the other hand, reduction in customs
manufacture of Polyester. Reliance
and excise duties is expected to lead
i s a l r e a d y i n t h e p r o c e s s o f
MEG
to stronger demand g rowth in the
domestic mar ket. Reliance believes
it will enjoy a significant competitive
a d v a n t a g e , b e i n g a l o w c o s t ,
implementing a world size PTA plant
of 350,000 tonnes per annum at
Hazir a . It is now adding another
3 5 0 , 0 0 0 t o n n e s p e r a n n u m P TA
capacity at Hazira. Reliance will be
integ rated and quality producer.
one of the largest PTA producers in
51%
49%
PF Y
capacity additions.
Other production
the wor ld on completion of these
Reliance's share in domestic production
29%
P T A
71%
Reliance's share in
domestic production
Other production
R e l i a n c e
i s
t h u s p o i s e d
t o
substantially increase its mar k e t
share in the fibres business owing
t o t h e a d v a n t a g e s o f ve r t i c a l
integration, market leadership and
world scale plants .
Fibre Intermediates Business
Purified Terephthalic Acid (PTA)
45%
55%
Reliance's share in domestic
production
Other production
Mono Ethylene Glycol (MEG)
Reliance continues to be the largest
producer of MEG in India accounting
for 49% (95,000 MT) of domestic
production. It achieved near 100%
Reliance continues to be the only
capacity utilisation dur ing the year .
producer of Pur ified Terephthalic
Most of the MEG produced at its
Acid (PTA) in the countr y and the
Hazira plant is captively consumed.
Reliance will be one of the largest PTA producers in the world on completion of planned capacity additions.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
17
Review of Operations
Polymers Business
Polyvinyl Chloride (PVC)
leading supplier of PE to the woven
Most of the key grades of our HDPE
sac k sector which caters to the
and LLDPE have substituted impor ts
Reliance has maintained its premier
packaging requirements of fer tilisers,
and saved scarce foreign exchange
p o s i t i o n
i n
t h e P V C m a r k e t ,
cement and other bulk materials.
for the country.
accounting for 42% (187,000 MT) of
Reliance serviced more than 4,000
domestic production.
T h e c o m m i t m e n t t o q u a l i t y a n d
service is reflected in the confidence
which many processors have shown
b y
a c c e s s i n g
t h e i r
e n t i r e
requirement from .Reliance. Effor ts
are being made to fur ther strengthen
t h e m a r ke t i n g n e t w o r k . Process
customers and consolidated its
dominant presence in the Indian
market. Development of Speciality Film
grades of Octene LLDPE was further
stepped up for capturing new end-use
segments like milk sachets, edible oil
packaging, cosmetic and dental care
i m p r o v e m e n t a n d c o s t c u t t i n g
product packaging. Reliance is one
e x e r c i s e s h av e c o n t r i b u t e d t o
of the six producers of this grade in
improved performance.
the world.
Polyethylene (PE)
Reliance is the largest producer of
linear polyethylenes in India with a
51% share (192,000 MT) in domestic
production.
The company introduced additional
grades and captured new markets
which were earlier dependant only
on impor ted material. Reliance is the
Reliance is the largest producer of linear polyethylenes
in India with a 51% share in domestic production.
18
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Review of Operations
Chemicals Business
Paraffins
Linear Alkyl Benz ene (LAB)
Reliance’s LAB is used by all the
l e a d i n g
d o m e s t i c
d e t e r g e n t
R e l i a n c e s t a ye d o n t o p o f t h e
domestic par affins mar ket with a
40% share in domestic production.
It intends to increase its capacity to
c a p a c i t y o f 1 0 , 0 0 0 t o n n e s p e r
annum. This will enable Reliance to
a d d va l u e t o D i e t hy l e n e G l y c o l
(DEG), which is a by product from
man ufacturers. The company also
s u b s t i t u t e i m p o r t s a n d i m p r o v e
i t s M o n o e t h y l e n e G l y c o l ( M E G )
exports to multinational companies
m a r k e t s h a r e . T h e m a r k e t f o r
plant. TEG is an impor t substitute
like Unilever and Procter & Gamble.
paraffins is growing with increased
usage of PVC.
Tri Ethylene Glycol (TEG)
used in oil exploration, lubr icants
and speciality applications. Reliance
Reliance has commissioned a new
h a s a l r e a d y i n i t i a t e d e x p o r t s o f
TEG manufactur ing facility with a
TE G to ot her count r ie s in Asia.
R e l i a n c e ’s s h a r e
i n d o m e s t i c
p r o d u c t i o n
i n c r e a s e d
t o 3 8 %
(76,000 MT) with the introduction of
special prices for detergent expor ters.
R e l i a n c e h a s t a k e n s t e p s f o r
capacity addition and it plans to
d e b o t t l e n e c k L A B c a p a c i t y t o
100,000 tonnes per annum, making
it India’s largest LAB facility. Further
increase in capacity is also being
planned to meet future demand.
Ethylene Oxide (EO)
R e l i a n c e c o n t i n u e s t o l e a d t h e
market with a 31% share in domestic
p r o d u c t i o n . E t hy l e n e O x i d e i s a
versatile chemical used in speciality
consumer products like shampoos,
f a c e c r e a m s ,
t o i l e t r i e s a n d
detergents.
Reliance has taken steps for capacity addition and plans to debottleneck LAB capacity to 100,000 tonnes per annum,
making it India’s largest LAB facility.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
19
Review of Operations
Textiles Business
Vimal
beams and fabrics. It is also the first
the most advanced computer aided
company in India to acquire woven
technology were well received in the
‘VIMAL’ is the market leader in the
velour machines for the manufacture
premium suitings segment with the
l a r g e s t s a l e s a n d d i s t r i b u t i o n
network. Reliance has continued to
i n c r e a s e i t s r e t a i l o u t l e t s a n d
e x c l u s i ve s h o w r o o m s. I t s e x o t i c
of a wide range of pile fabrics with
bigger designs. The Naroda textiles
complex is the only textiles facility
in the countr y to become self-reliant
range of premium woollen fabr ics
in power through captive generation.
has been well received by country’s
Harmony
market.
SlumbeRel
T h e S l u m b e R e l ra n g e o f s l e e p
p r o d u c t s i s d o i n g we l l . D a c r o n
f i b r e f i l l e d p i l l ow s h a v e b e e n
welcomed for their super ior quality.
Customer or iented products lik e
top retailers.
R e l i a n c e i s t h e f i r s t i n I n d i a t o
i m p r o v e
i t s p r i n t i n g
f a c i l i t i e s
b y adding wa r p tr ansfer pr inting
f a c i l i t i e s .
I t
n o w
h a s
t h e
The Har mon y r ange of premium
super fine premium suitings, war p
fur nishing fabrics continues to lead
printed furnishing fabrics, decorative
the market. Ten exclusive Harmony
cushions and kiddies pillows have
boutiques were opened dur ing the
b e e n i n t r o d u c e d i n t h e m a r ke t .
f l e x i b i l i t y t o p r i n t o n w a r p e d
year. Home textiles designed using
‘VIMAL’ is the market leader in the premium suitings segment
with the largest sales and distribution network.
20
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Review of Operations
Oil and Gas Business
Reliance has an unincor por ated
joint venture with Enron and ONGC
to develop Panna, Mukta and Tapti
fields . The development of these
fields is expected to yield 145 million
T h e
j o i n t ve n t u r e h a s m a d e
facilities and associated pipelines,
significant progress in implementation
for the Panna, Mukta and Tapti fields.
o f t h e d e v e l o p m e n t p l a n s. T h e
Fabrication of platforms is
state-of-the-ar t 3D surveys (using
proceeding at a fast pace at different
multiple cable and multiple source
sites. Installation of three platfor ms
configuration) of South Tapti and
in Tapti and one platform in Panna
Panna fields were executed for the
has been completed. Orders for
barrels of cr ude oil, 40 billion cubic
first time in India. Fir m orders have
hiring of drilling rigs have been
meters of gas and 12 million barrels
been placed for six well plafforms,
placed and drilling of wells in Tapti
of condensate.
c e n t r a l o i l a n d g a s p r o c e s s i n g
has commenced.
The joint venture among Reliance, Enron and ONGC has made significant progress in implementation
of the development plans of the Panna, Mukta and Tapti fields.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
21
Projects & Expansions
Hazira Petrochemicals Complex
fully automated polyester staple
New Polyester Complex
S u b s t a n t i a l p r o g r e s s i n p r o j e c t
implementation has been made at
the new polyester complex at Hazira.
T h e p r o j e c t s i n t h e p o l y e s t e r
complex are: polyester staple fibre
p r o j e c t o f 1 6 0 , 0 0 0 t o n n e s p e r
ann um; polyester ya r n project of
120,000 tonnes per annum; and PET
polymer project of 80,000 tonnes per
ann um. This highly advanced ar id
integrated polyester complex will
have a capacity of 360,000 tonnes
per annum.
In addition, the fibre intermediates
projects in the complex will be: two
Pur ified Terephthalic Acid (PTA )
p r o j e c t s o f 3 5 0 , 0 0 0 t o n n e s p e r
annum each; and a Mono Ethylene
Glycol (MEG) project of 120,000
tonnes per annum. Polyester Staple
Fibre (PSF - 2)Reliance is setting up
f i b r e p l a n t w i t h E . l . D u Po n t
technology. Major civil and structural
f a b r i c a t i o n wo r k
h a s
b e e n
completed. Erection of all major
equipment has been completed. The
pre-commissioning activities are
u n d e r w a y. R e l i a n c e ex p e c t s t o
commission the plant by the end of
t h e t h i r d q u a r t e r o f 1 9 9 6 . O n
completion of PSF, POY and PET
e x p a n s i o n s a t H a z i r a , t h e t o t a l
polyester capacity will increase from
about 200,000 tonnes per annum to
600,000 tonnes per annum, making
i t t h e e i g h t h l a r g e s t p o l y e s t e r
producer in the world.
Polyester Yarn (POY - 2)
R e l i a n c e
h a s
s u c c e s s f u l l y
All major civil and fabrication wor k
has been completed for the remaining
t wo polymer iser lines of 30,000
tonnes per annum each. Erection of
major equipment is completed and
the lines are nearing mechanical
c o m p l e t i o n . P r e - c o m m i s s i o n i n g
activities are in progress. Reliance
expects to commission these two
lines in phases by the third quar ter
of this year.
PET Polymer
commissioned two polymer iser lines
Substantial progress has been made
of 30,000 tonnes per annum each,
in construction and erection during
using E.l. DuPont technology, in the
t h e y e a r . P r e - c o m m i s s i o n i n g
countr y’s largest (120,000 tonnes
activities are nearing completion.
per annum) POY plant. The fully
The PET bottle grade resin plant of
t h e c o u n t r y ’s l a r g e s t ( 1 6 0 , 0 0 0
automated commissioned lines are
80,000 tonnes per annum will be one
t o n n e s
p e r
a n n u m )
operating well.
of the largest plants in the world.
Technological assistance is being
provided by SINCO Engineering,
Italy. Reliance sees tremendous
growth potential for PET bottles in
the rapidly growing aerated drinks,
mineral water and other bottling
s e g m e n t s. P E T
i s hy g i e n i c ,
e n v i r o n m e n t
f r i e n d l y a n d
t h e
preferred packaging mater ial fo r
these segments. Reliance expects to
commission its PET plant by the
end of the third quar ter of 1996.
Reliance has successfully commissioned two polymeriser lines of 30,000 tonnes per annum each using E.l. DuPont
technology in the country’s largest (120,000 tonnes per annum) POY plant.
22
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
23
Projects & Expansions
Purified
Te r e p h t h a l i c A c i d
PTA plant at Hazira. The basic and
p r e p a ra t i o n , b a s i c a n d d e t a i l e d
(PTA-2)
d e t a i l e d e n g i n e e r i n g i s a l r e a d y
engineering and procurement have
The project for setting up a PTA plant
completed. All major plant equipment
been completed and the project is
of 350,000 tonnes per annum at
h a v e b e e n o r d e r e d . O n
i t s
H a z i r a , w i t h I C I t e c h n o l o g y, i s
completion, Reliance will be one of
now nearing mechanical completion.
The pre-commissioning activities
the largest PTA producers in the world.
have also started. The jetty ter minal,
nearing mechanical completion. All
major equipment such as reactors
and silos have been erected and
i n s u l a t i o n w o r k h a s s t a r t e d .
C o n s t r u c t i o n o f a l l e l e c t r i c a l
installations and control room has
been completed. Precommissioning
a c t i v i t i e s
a r e
i n
p r o g r e s s.
Substantial progress has been made
i n t h e i m p l e m e n t a t i o n s o a s t o
f a c i l i t a t e t h e c o m p l e t i o n o f t h e
project by the last quar ter of 1996.
Purified
Terephthalic
Acid
(PTA - 3)
R e l i a n c e h a s d e c i d e d t o s e t u p
another PTA plant of 350,000 tonnes
Mono Ethylene Glycol (MEG - 2)
The MEG plant of 120,000 tonnes
per annum, using technology from
ABB Lumm us Crest, Netherlands
( S h e l l
P r o c e s s )
i s
u n d e r
construction. This project has made
substantial progress during the year.
M a j o r c i v i l w o r k i n c l u d i n g t h e
substation and control room has
been completed. Major items of
equipment have been received at
the site and the erection wor k is
progressing. The plant is expected
to be c ommi ssi oned by the l as t
per annum with ICI technology, in
quar ter of 1996.
o r d e r t o m e e t i t s p r o j e c t e d r aw
Cracker Substantial progress has been
material requirement as well as the
made in this major project. The technology
g r o w i n g m a r k e t d e m a n d . T h i s
used in the cracker is licensed from
tank farm, SBM system (Single Buoy
Mooring) and utilities have already
b e e n c o m m i s s i o n e d . A l m o s t a l l
e q u i p m e n t s u c h a s
f u r n a c e s ,
columns, pressure vessels, heat
exchangers and pumps have been
erected. All utilities required for the
commissioning activities alongwith
the raw material storage facilities
are ready.
The cracker will have a capacity of
approximately 750,000 tonnes per
a n num of ethylene and 365,000
t o n n e p e r a n nu m o f p r o p y l e n e .
Reliance’s cra cker is the wo rld’s
largest gr ass-root single stream
multi-feed cracker and is expected
plant would be similar to the first
Stone and W e b s t e r, U S A . S i t e
to be commissioned by end 1996.
Reliance’s cracker is the world’s largest grass-root single stream multi-feed cracker
and Is expected to be commissioned by end 1996.
24
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Projects & Expansions
Projects & ExpansionsSuccessful
user fr iendliness. New products are
completion of the cracker project will
being developed, using the unique
b e a n
i m p o r t a n t
l i n k
i n
t h e
proper ties of polymers which are
integration strategy as it will provide
thus capturing a bigger share of a
two basic raw materials i.e. ethylene
p r o p y l e n e .
a n d
Captive Power Plants (CPPs)
Reliance is expanding its captive
power capacity, in order to cater to
the increasing power requirement of
t h e p e t r o c h e m i c a l s c o m p l e x a t
H a z i r a . O n c o m p l e t i o n o f t h e
e x p a n s i o n s , R e l i a n c e w i l l h a ve
a c c e s s
t o
r e l i a b l e a n d c o s t
competitive power of over 350 MW
for its continuous process plants.
This will ensure self-sufficiency and
stability of power supply and will
a l s o o p t i m a l l y u t i l i s e t h e s t e a m
g e n e r a t e d . W o r k i s p r o gr e s s i n g
satisfactorily so that the CPPs start
growing market. Reliance is in the
forefront to derive benefits of the
growth by substantial expansion and
implementation of new world-class
facilities. The new polymer projects
b e i n g s e t u p i n c l u d e a 3 5 0 , 0 0 0
tonnes per annum PP plant and a
200,000 tonnes per annum PE plant
at Hazira.
Polypropylene (PP -1)
Reliance is building a state-of-the-
a r t 3 5 0 , 0 0 0 t o n n e s p e r a n n u m
polypropylene plant at Hazira using
t h e U N I P O L p r o c e s s o f U n i o n
Carbide Chemicals and Plastics
C o m p a n y, U S A . A l m o s t a l l
equipment have been erected and
concurrently with the other facilities.
t h e p r o j e c t
i s m e c h a n i c a l l y
Polymers Complex
c o m p l e t e . P r e - c o m m i s s i o n i n g
The use of polymers is g r owing
activities are in the final stages .
rapidly among all end-user segments
Other infrastructure such as product
owing to their cost effectiveness and
warehouse, bagging, and propylene
a n d
L i n e a r
L o w
D e n s i t y
Polyethylene (LLDPE), as required,
to cater to the growing market needs.
All civil wo r k including electrical
substation and control room has
been completed. Delivery, erection
and construction of equipment has
commenced. Reliance expects to
complete the project by the end of
this year. Effor ts will be made to
synchronise the commissioning of
this plant with the cr a cker star t
u p . W i t h t h e c o m p l e t i o n o f t h i s
s e c o n d P E p l a n t , t h e t o t a l P E
capacity will increase to 400,000
tonnes per annum, making Reliance
one of the top 10 PE producers in
the wor ld.
Polyvinyl Chloride (PVC -1)
r e c e i v i n g
f a c i l i t y h a s b e e n
The PVC capacity at the existing
c o m p l e t e d . T h e p l a n t i s a t a n
plant at Hazira, based on technology
advanced stage of completion and
f r o m G E O N , U S A ,
i s b e i n g
is expected to go on stream by the
expanded to 300,000 tonnes per
third quar ter of 1996.
Polyethylene (PE - 2)
annum in two phases: first by 90,000
t o n n e s p e r a n n u m , t a k i n g t h e
Work is progressing at the 200,000
c a p a c i t y t o 2 7 0 , 0 0 0 t o n n e s p e r
tonnes per annum PE plant at Hazira,
annum and then by another 30,000
which uses the Sclair Tech Process.
tonnes per annum. The facility of
The plant will manufacture both High
270,000 tonnes per annum will be
D e n s i t y P o l y e t hy l e n e
( H D P E )
oper ational by the end of 1996.
On completion of the expansions, Reliance will have access to reliable and
cost competitive power of over 350 MW for its continuous process plants.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
25
Projects & Expansions
Jamnagar Petrochemicals
Fibre Intermediates
Polymers
Paraxylene (PX- 2 and PX-3)
Polypropylene (PP- 2)
Reliance has decided to build two
To cater to the growing demand for
Complex
Reliance Industr ies Limited has
i d e n t i f i e d J a m n a g a r a s i t s n e x t
growth centre for future expansions
in the petrochemicals business. The
Jamnagar petrochemicals complex
is to be located adjacent to the
Reliance Petroleum refiner y. This
will facilitate the integration between
t h e p o w e r, p e t r o c h e m i c a l s a n d
refining businesses of the Reliance
new paraxylene facilities of 400,000
t o n n e s p e r a n n u m e a c h , a t
J a m n a g a r, w i t h U O P
I n t e r
Amer icana technology. Basic and
detailed engineering studies have
been completed. Reliance is also
reviewing a plan to set up a fur ther
PX facility of 400,000 tonnes per
annum. This will be the largest such
Group. Reliance Industr ies initially
facility in the wo r ld and will get
proposes to set up paraxylene and
n a p h t h a a s f e e d s t o ck f r o m t h e
polypropylene plants at Jamnagar.
proposed refiner y. Reliance’s PX
The feedstock i.e. naphtha required
capacity will be 1.35 million tonnes
p o l y p r o py l e n e , R e l i a n c e
i s
proposing to build an additional
350,000 tonnes per annum plant
utilising its locational advantage.
The technology licensor is John
Brown, UK (UNIPOL Process). The
plant will use propylene from the
proposed refinery as the feedstock.
The total PP capacity will increase
to over 700,000 tonnes per ann um
with the setting up of the second
plant of 350,000 tonnes per annum,
f o r t h e p a r a x y l e n e p l a n t , a n d
per annum on completion of these
making Reliance the four th largest
p r o p y l e n e
r e q u i r e d
fo r
t h e
projects. With this, Reliance will be
PP producer in the world.
polypropylene plant will be obtained
amongst the top four par axylene
from Reliance Petroleum’s refiner y.
producers in the wor ld.
The total PP capacity will increase to over 700,000 tonnes per annum with the setting up of the second plant of
350,000 tonnes per annum, making Reliance the fourth largest PP producer in the world.
26
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
27
Environment, Health & Safety
R e l i a n c e m a i n t a i n s t h e h i g h e s t
p r ovided b y licensors, including
availed of the maximum rebate
standards of quality in the areas of
plant operations and maintenance
on water cess for the fourth
e n v i r o n m e n t , h e a l t h a n d s a fe t y.
procedures. Reliance has invested
successive year. All samples
heavily in the latest and the best
from stack, treated effluent and
pollution control and environment
storm water drain, collected by
preservation technologies to keep
GPCB from the Hazira complex,
the water and air in areas close to
were found nor mal and safe.
i t s p l a n t s , a b s o l u t e l y f r e e f r o m
l The Naroda textiles complex has
Environment
Reliance is sensitive to the impact
its operations have on the environment,
and all possible steps are taken to
maintain the highest standards in
t h i s
r e g a r d . R e l i a n c e h a s a
c o m p r e h e n s i v e e n v i r o n m e n t a l
management policy cove r ing air,
water, and noise pollution, disposal
of gaseous, liquid and solid wastes
and local ecology. Environmental
har mful effluents. Reliance has won
m a n y a w a r d s f o r i t s e f fo r t s i n
pollution control and preservation of
the environment:
l T h e H a z i r a c o m p l ex h a s
b e e n h o n o u r e d w i t h
t h e
Federation of Gujarat Industries
protection is one of the impor tant
A wa r d
f or
“ E n v i r o n m e n t &
criteria for selection of new technology,
Pollution Control” for 1995. The
p l a n t a n d e q u i p m e n t . T h i s i s
t h e
a c h i e ve d p a r t l y
t h r o u g h
inclusion of inbuilt control equipment
and pollution monitor ing in the plant
d e s i g n a n d p a r t l y t h r o u g h a n
H a z i r a c o m p l e x h a s a l s o
r e c e i ve d t h e G o l d e n J u b i l e e
M e m o r ial
Tr u s t Aw a r d
f o r
o u t s t a n d i n g p o l l u t i o n c o n t r o l
programme during 1994-95, from
emphasis on control procedures and
the Southern Gujarat Chamber of
p o l l u t i o n m a n a g e m e n t a s a n
C o m m e r c e
&
I n d u s t r y.
i n t e g r a l p a r t o f
t h e
t r a i n i n g
l The Hazira complex facilities have
commissioned a supplementar y
Effluent Treatment Plant (ETP).
With this, the Naroda textiles
complex today has the largest
area dedicated and the highest
investment committed for ETP
activities in the entire Indian
textile industry.
Health and
S a fe t y I n a d d i t i o n t o t h e n o r m a l
medical facilities being provided
t o t h e e m p l oy e e s, t h e c o m p a n y
h a s a l s o t a ke n s t e p s t o e n s u r e
p r e v e n t i ve c a r e . R e l i a n c e h a s
sought to construct plants and adopt
s a f e t y m o n i t o r i n g a n d a u d i t
p r o c e d u r e s w h i c h c o n fo r m t o
international standards. Extensive
s a f e t y a u d i t s a n d h a z a r d o u s
o p e ra t i o n s s t u d i e s h a ve b e e n
c a r r i e d o u t i n r e l a t i o n t o a l l
significant aspects of Reliance’s
operations . Reliance has alway s
ensured an absolutely safe wor king
environment for all its employees,
a n d h a s k e p t u p w i t h
l a t e s t
international trends, standards and
practices. Reliance’s effor ts in this
area have been widely regarded and
acknowledged by various fora and
associations.
The Hazira complex has been honoured with the Federation of Gujarat Industries Award
for “Environment & Pollution Control” for 1995.
28
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Environment, Health & Safety
Dur ing the year, Reliance has won
S a f e t y o f N a t i o n a l S a fe t y
As in the past, Reliance accepted
major awards for safe practices:
Council, India.
l The Award of Honour for the year
l Reliance’s Hazira complex has
1994 for Reliance’s Patalganga
won many safety awards
complex is the highest award of
including the Safety Award-1992,
saf ety of The National Safety
5 STAR Award-1994, and Sword
Council of USA. The National
of Honour-1994, all from the
S a f e t y C o u n c i l o f U S A a l s o
British Safety Council of UK .
o n l y
t h e m e r i t c e r t i f i c a t e ,
foregoing the shield in favour of
the next best competitor, in order
to encourage and enthuse other
m e m b e r s . T h i s g e s t u r e wa s
highly appreciated by ATMA, and
awarded “Second Place” for 1994
l
In December, 1995, Reliance
was even noted in the Award of
t o R e l i a n c e ’s P a t a l g a n g a
received an award for achieving
Honour-1994 certificate.
c o m p l e x , a m o n g s t wo r l d w i d e
the lowest disability index during
chemical companies in the group.
the year 1994 for its Naroda
l Reliance’s Patalganga complex
textiles plant, among all member
w a s a w arded
the
“ S a fe t y
mills of the Ahmedabad Textile
Award” for the longest accident
Mills Association (ATMA).
free spell for the year 1994, by
Reliance has won this award every
Reliance has sought to create safety
a w a r e n e s s n o t o n l y a m o n g i t s
employees but also its customers.
Reliance arranged safety audits, and
c o n d u c t e d s a fe t y
t r a i n i n g
fo r
t h e C o u n c i l o f
I n d u s t r i a l
year since its inception in 1988.
customers and transporters.
Reliance’s efforts in the area of Environment, Health & Safety have been widely regarded and acknowledged
by various fora and associations.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
29
Quality
At Reliance, the focus on Quality
plants as well as central power
control and qual it y assu r a n c e
is not only on the final product -
plants and utilities.
it covers all aspects of operations,
l The Patalganga comple x wa s
including processes and people .
conferred the ‘Golden Peacock
Major achievements in 1995-96 are:
National Quality Award 1995’.
l R e l i a n c e h a s p u t
t h e
I S O
l Quality management systems for
p r o g r a m m e
i n p l a c e a f t e r
t h e s ev e n o p e r a t i o n a l u n i t s
r i g o r o u s
t r a i n i n g
a n d
c e r t i f i e d by Bureau Ve r i t a s
documentation. The ISO 9002
Q u a l i t y
I n t e r n a t i o n a l
i n
cer tification was received for all
S e p t e m b e r, 1 9 9 4 , c o n t i n u e
its manufacturing plants (MEG,
effectively, as demonstrated in
PVC, VCM and HDPE) as well as
the agency’s surveillance audits
central power and utility plants at
d u r i n g M a r c h , 1 9 9 5 a n d
t h e H a z i r a p e t r o c h e m i c a l s
September, 1995.
practices. New machines and test
methods were added to analyse
the samples so that the material
delivered to the customer is of
the highest standard.
l The Patalganga complex uses
modern technologies like tracer
a p p l i c a t i o n s a n d n u c l e o n i c
control systems for improvement
o f q u a l i t y o f p r o c e s s e s a n d
products. In chemicals, special
effor ts were made to check the
fitness of empty tankers before
loading.
complex in December, 1995. With
l PE product quality achie ve d
this, both Hazira and Patalganga
during the year was 98.3% prime
l The POY division has substantially
i m p r o ve d
t h e
q u a l i t y
o f
petrochemical complexes have
against 95% achieved last year.
p a c k a g i n g , w h i c h h a s n o w
achieved ISO 9002 certification
l
In polymers, several new grades
e l i m i n a t e d t h e p o s s i b i l i t y o f
f o r a l l
t h e i r m a n u fa c t u r i n g
were established with best quality
p r o d u c t d a m a g e i n t r a n s i t .
Both petrochemical complexes of Reliance, Hazira and Patalganga, have achieved ISO 9002 cer tification for all their
manufacturing plants as well as central power plants and utilities.
30
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Reliance’s entrepreneurial drive has
a l w a y s b e e n t h e i n s p i ra t i o n fo r
developing new products and new
applications for existing products
Most moder n facilities are used by
Reliance for research activities The
thr ust of the research effor ts has
been towards process development,
process modification and product
development PFY, PSF, PE, PVC,
Research Development
major achievements of the research
efforts are:
l C a t a l y s t
r e g e n e r a t i o n a n d
l Oil and water repellent worsted
suitings with Teflon coating were
d e ve l o p e d
f o r
i n t e r n a t i o n a l
modification with impregnation of
acceptance;
a d d i t i o n a l m e t a l w a s d o n e
l F i r e
r e t a r d a n t a u t o m o t i v e
successfully for the project of
textiles/ upholstery fabrics were
Non-HF alkylation catalyst to
developed;
improve LAB quality;
l New variations in the Fully Drawn
Yar n segment were developed
and successfully commercialised
l New deniers in POY w e r e
s u c c e s s f u l l y d e ve l o p e d
fo r
achieving better perf o r mance
and modified texture of fabric;
l A new fabr ic evaluation technique
w a s a d o p t e d i n N a r o d a t o
improve tailorability and fabric
P TA and LAB continue to be the
during the year;
f o c u s o f
t h e
r e s e a r c h a n d
l Stretch fabrics using polyurethane
de velopment effor ts Some of the
filament were developed;
perfor mance.
PFV,PSF.PE,PVC, PTA and LAB continue to be the focus of research and development efforts.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
31
Energy Conservation
At Reliance, energy conser vation is
first prize to Reliance - Patalganga
e n a bl e d
t h e s t e a m
t u r b i n e
r e g a r d e d a s a m a j o r f a c t o r i n
f o r e n e r g y c o n s e r v a t i o n i n t h e
g e n e r a t o r t o r u n u n d e r c o -
enhancing cost competitiveness .
petrochemical sector, for the second
generation mode;
E n e r g y
c o n s e r va t i o n
a n d
optimisation is achieved from the
design stage of the plants itself and
is then maintained and improved in
t h e n o r m a l p l a n t o p e r a t i o n s .
C o n t i n u o u s u p d a t i n g o f e n e r g y
conser vation effor ts is achieved by
frequent energy audits at operating
levels.
T h e c o m m i t m e n t o f R e l i a n c e
c o n s e c u t i v e
ye a r
i n
1 9 9 5 .
S o m e o f t h e o t h e r s i g n i f i c a n t
achiev ements of Reliance in the
area of energy conservation are:
l
Impro ved utilisation of steam
generation potential in the HRSG
( H e a t
R e c o v e r y
S t e a m
Generators) using the exhaust
h e a t f r o m g a s t u r b i n e s m o r e
t o w a r d s e n e r g y c o n s e r v a t i o n i s
efficiently, resulted in reduction in
l Optimisation of condenser blow
down rates in PVC and PE plants;
l
Lube oil recover y system from
gas turbine lube oil console vent
was set up;
l C o o l i n g t o w e r s i n t h e M E G
complex were modified which
resulted in power savings;
l Water recycling scheme is under
implementation to conser ve and
r e c y c l e w a t e r i n t h e F i b r e s
r e f l e c t e d i n t h e f a c t t h a t t h e
t h e a v e r a g e c a p t i ve p o w e r
complex;
M i n i s t r y o f Pow e r , G ov e r n m e n t
generation cost;
l New steamlines and aircur tains
o f
I n d i a ,
a w a r d e d
t h e
l
Installation of gas turbine with HRSG
were added in the plants.
The Ministry of Power, Government of India, awarded the first prize to Reliance - Patalganga for energy conservation
in the petrochemical sector for the second consecutive year in 1995.
32
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Foreign Exchange Savings & Taxes Paid
Foreign Exchange Savings
Reliance r anks among the top
Reliance contributed Rs.2,234 crores
Reliance’s products are pr imarily
companies in India. During 1995-96,
(US$ 650 million) in the form of various
import substitutes. In other words, if
a saving of Rs . 2,783 crores
taxes as against Rs. 2,147 crores (US$
Reliance does not produce them,
( US$ 810 million) was achieved.
similar quantities of these products
Taxes Paid
would have to be imported. Reliance
In the pr ivate sector, Reliance is
assists the country towards achieving
amongst the top three tax payers, to
self-sufficiency in petrochemical and
various government agencies. The
petroleum products, thereby saving
main forms of taxes paid by Reliance
precious foreign exchange, through
are excise duty and customs duty. In
625 million) last year. It is noteworthy
that the absolute amounts of revenue
generated for the gover nment through
Reliance’s operations have increased
even though the rates of customs and
excise duties have been brought down.
production of polyester, polymers, fibre
fact, in terms of proportion, these taxes
The total amount of contr i bution
intermediates and petrochemicals.
form one of the highest elements of
continues to be as high as almost twice
In terms of foreign exchange saved,
Reliance’s cost structure.
the Profit After Tax.
Taxes Paid - Increasing
Rs. in crores
contribution to India
2500
2000
1500
1000
500
0
91-92
92-93
93-94
94-95
95-96
In the private sector, Reliance is amongst the top three tax payers, to various government agencies.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
33
Employment
Reliance has over 14,000 employees.
Reliance additionally creates over a
This makes Reliance one of the
A major ity of the human resources
required to handle incremental volume
for the Hazira expansion have been
recruited. Expatriates, too, have been
recr uited
in
the
areas
of
Man u factur ing,
Technical
Training,
Info r mation Systems,
million jobs through the product
biggest
job creators
in
India.
markets that it develops. This includes
Employment with Reliance off ers
jobs created
in ancillar y and
better job satisfaction through training
downstream units, as well as indirect
and wor ld-class exposure. This is one
employment generated in ter ms of
reason why Reliance contin ues to
transpor tation ser vices , marketing
enjoy the status of a preferred
Information Technology and Logistics.
outlets , godowns and depots .
employer.
Reliance creates over a million jobs through the product markets that it develops.
34
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Social Responsibility & Community Development
Reliance’s commitment towards
The activities which ha ve been
upgradation of Zilla Parishad Schools
community development is reflected in
initiated under the auspices of the
at the level of primary education in
the resources directed to wards
programme are:
fulfilling social responsibility. Reliance
has
launched
a Community
D evelopment Project which
is
focussed on providing ser vices and
facilities to people in villages around
the man u factur ing facilities. The
l Promotion of savings groups
l Medical check up camps;
l Establishment of mahila mandals;
l Health and hygiene awareness
projects;
l Sewing classes for women;
l Establishment of nurseries;
objective of this programme is to meet
l Sponsoring of a 6 monthly course-
the ob ligations of a conscious
for hospital and community health
cor porate citizen and to dev elop
workers;
goodwill among the people in the
neighbouring areas. Cooperation and
participation of the people are solicited
for the development of their villages.
The ultimate objective is to create a
more sustainab le model of rur al
l
Launching of Mobile dispensaries;
l Establishment of a dispensary at
Mora village near the Hazira Complex;
l Trade familiarisation scheme for
Raigad District which covers the
Patalganga Complex;
l
Launched hospital and community
health worker training course;
l Provided facilities to supply water
to industries located at Hazira and
Surat City;
l Made arrangements for supply of
water to Mora village residents;
l Assisted the village authorities in
the expansion of schools at Mora
village;
l Constructed the main arterial road
for the Mora village;
boys who have passed Standard 10.
l Contributed to the Mora village in
In addition to the above, the other
the Gokul Gram Scheme;
noteworthy efforts are:
l Reliance is also getting ready to
d evelopment which will help the
l Reliance jointly with UNICEF has
launch free medical services for the
villages to be more self-reliant.
launched a programme for the
villages near the plant sites.
Reliance’s commitment to community development is reflected in the resources directed towards
fulfilling social responsibility.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
35
New Growth Areas
Reliance Petroleum
sourcing and operations management
single stream grass-root refiner y.
The proposed 15 million tonnes
will prove to be an advantage in the
The capital cost of the refinery is one
per ann um refiner y of Reliance
refinery project implementation.
Petroleum Limited will be an important
Reliance Group has already
link in the integration chain of Reliance.
contributed Rs. 561 crores (US$ 163
Over 20% of the refinery’s output is
million) over the past three years to
expected to be consumed by Reliance
Reliance Petroleum as promoters’
Industries. The value of the feed stocks
contribution. Reliance Group is to
to be provided to Reliance Industries
contribute a further Rs. 713 crores
by Reliance Petroleum is expected to
(US$ 208 million). The total cost of the
be about Rs. 2,000 crores (US$ 582
refinery is expected to be Rs. 8,694
million) per ann um. The exper tise
crores (US$ 2531 million) as
of the lowest compared to other new
Indian and international refineries.
Bechtel,
the w o rld
reno wned
engineering construction company,
has the single point responsibility for
technology, engineering, procurement,
construction management and project
management services for the refiner y
project. Bechtel has engaged UOP
(USA), the world leaders in refiner y
technologies for providing the basic
gained by Reliance Industries in the areas
appraised by the IDBI. Reliance
engineer ing and licensing for this
of project management, engineering,
Petroleum’s
refiner y will be
project.
the
w o r ld’s
largest
Reliance Petroleum’s refinery will be the world’s largest single stream grass-root refinery.
The capital cost of the refinery is one of the lowest compared to other new Indian and international refineries.
36
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
New Growth Areas
Reliance Telecom
System in 1984. NYNEX is a leading
The combined license fee for 10 years
telecommunications investor in Asia.
for the cellular circles is Rs. 337 crores
Reliance Telecom proposes to build
(US$ 98 million). These circles have
moder n mobile telecommunications
32.5% of India’s population and 12.9%
networks in each of its licensed circles,
of the nation’s telephone lines. The
providing the full spectrum of GSM
license fee for providing basic services
ser vices to both residential and
in the Gujarat circle is Rs. 3,396 crores
business subscribers.
(US$ 989 million) over 15 years.
Reliance Industr ies Limited has
entered
into a
joint v enture
arrangement with NYNEX, USA, to
form Reliance Telecom Private Limited,
with a view to enter into the telecom
sector in India which has been opened
up for private sector par ticipation.
Tenders for licenses to operate basic
and cellular telephone services were
invited. The telecom sector in India, as
is the case all over the world, is likely
to experience phenomenal growth.
Sensing a great opportunity, Reliance
decided to par ticipate in this growth.
Reliance Telecom bid f or these
licenses in June,1995.
Reliance Telecom was a warded
licenses for operating cellular services
in Assam, Bihar, Himachal Pradesh,
Madhya Pradesh, Nor th-East, Orissa
and West Bengal circles.Six circles out
of the seven are geog r aphically
contiguous. Reliance Telecom is the
only licensee in West Bengal and
Assam circles. These licenses are
initially valid for 10 years extendable
in multiples of 5 years thereafter.
Reliance is the sole successful bidder
in Gujarat circle for the basic telecom
ser vices.
NYNEX, USA, is one of the Regional
Bell Operating Companies, created
with the div estiture of the Bell
Reliance Telecom has been awarded licenses for operating cellular services in Assam, Bihar, Himachal Pradesh, Madhya
Pradesh, North-East, Orissa and West Bengal circles. lt is the sole successful basic services bidder in Gujarat circle.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
37
Hazira Jetty, Terminal and Lighterage Ship
Reliance is the world’s largest and most experienced lighterage operatorfor
cryogenic products being handled at upto -1020C.
38
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Product Flow Chart
Oil & Gas Production
Planned Jamnagar Complex
Refining
Fuel Oil
Naphtha /Ngl
Kerosene
Haxira Complex
P P
Propylene
Ethylene
Butene-1
VCM
PCV
EDC
D E G
Pataiganga Complex
123456789012345
123456789012345
123456789012345
Acetic Acid
123456789012345
E O
MEG
TEG
HDPE/LLDPE
PX(1)
PTA (2)
PET(3)
Polyester
Chips
N P
LAB
12345678901234
12345678901234
12345678901234
Wool, Viscose,
Silk, Linen
12345678901234
PFY(2)
PSF(2)
Naroda Complex
Texur ised/Twisted
Dyed Yar n
Spun Yarn
Existing Products
Currently Purchased-Planned
Future Products/Projects
123
123
123
Purchased Raw Materials
Fabrics
Abbreviation
DEG ...........
DMT ...........
EDC ...........
EG .............
EO .............
HDPE ........
LAB ...........
Full Name
Di-ethylene glycol
Di-methyl-terephthalate
Ethylene di-chloride
Ethylene glycol
Ethylene oxide
High density polyethylene
Linear alkyl benzene
(1) Manufacture also planned at Jamnagar complex
(2) Plant also under construction at Hazira complex
(3) Manufacture planned at Hazira complex
Abbreviation
LLDPE .........
MEG ............
NGL .............
NP ................
PET ..............
PFY ..............
PP ................
Full Name
Linear low density polyethylene
Mono-ethylene glycol
Natural gas liquid
Normal paraffin
Polyethylene terephthalate
Polyester filament yarn
Polypropylene
Abbreviation
PSF ...........
PTA ...........
PVC ..........
PX ............
TEG ..........
VCM .........
Full Name
Polyester staple fibre
Purified terephthalic acid
Polyvinyl chloride
Paraxylene
Tri-ethylene glycol
Vinyl chloride monomer
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
39
Directors’ Report
The Directors have pleasure in presenting the 22nd Annual Repor t and the audited accounts for the financial year ended 31st
March, 1996.
Financial Results
Gross profit before interest
and depreciation
Less:
Interest
Depreciation
Profit for the year
Add: Balance in Profit & Loss A/c.
Surplus Available for Appropriation
Appropriations:
Capital Redemption Reser ve
Debenture Redemption Reser ve
General Reser ve
Inter im Dividend paid on
Preference Shares
Recommended Dividend on:
Preference Shares
Equity Shares
Balance carr ied to Balance Sheet
* 1 US $ = Rs. 34.35 (Exchange rate as on 31.3.96)
Dividends
The Directors have recommended dividend (subject to deduction
of tax at source) for the financial year ended 31st March, 1996,
which if approved at the for thcoming Annual General Meeting
will be paid out of profits of the Company for the said year to all
those Equity Shareholders whose names appear on the Register
of Members as on 22nd June, 1996. The Directors have also
recommended dividend on 14% Redeemable Preference Shares
of Rs. 100 each. This dividend has been fully adjusted against
the interim dividend paid by the Company during the financial
year ended 31st March, 1996.
On Preference Shares
(Rs. in Crores)
Dividend of Rs. 14 per share
on 2,00,00,000
Redeemable Preference Shares of
Rs. 100 each fully paid up
On Equity Shares
Dividend of Rs. 6.00 per Share
on 46,03,69,802 Equity Shares of Rs. 10 each
fully paid up
28.00
276.22
304.22
Promise Vs. Performance (In Terms of Clause 43 of Listing
Agreement)
1995-96
1994-95
Rs. Crs.
US$ Mn*
Rs. Crs.
US$ Mn*
1751.91
110.13
336.51
1305.27
90.92
1396.19
----
231.30
800.00
28.00
----
276.22
60.67
510.02
32.06
97.97
379.99
26.47
406.46
----
67.34
232.90
8.15
----
80.41
17.66
1622.60
279.51
278.24
1064.85
62.24
1127.09
5.50
30.50
800.00
----
0.83
199.34
90.92
472.37
81.37
81.00
310.00
18.12
328.12
1.60
8.88
232.90
----
0.24
58.03
26.47
1396.19
406.46
1127.09
328.12
(Rs. in Crores)
1995-96
Particulars
Projections
Actual
Sales*
Gross Profit
Wtd. Ave. Equity
EPS (Rs)**
7,488
1,651
301
21.1
7,786
1,752
457
27.9
* Includes inter-divisional transfers.
** Based on weighted average equity.
Reason
EPS has improved due to better margins and reduction in interest
and depreciation charges.
Duplicate share cer tificates/Replacement of shares.
In both the above cases, as per the legal advice received by the
Company, the actions taken by the Registrars, were not in
contravention of any provision of law. Neither of the issues have
occasioned any loss to any investor or to the Company.
If any inadvertent technical lapses have been committed by the
Registrars, the reason for the same is attr ibutable to their
handling of huge volumes of transactions. The Registrars are in
the process of enhancing the effectiveness of their systems and
procedures to obviate recurrence of such situations.
Investments
The Company has given following profitability projections in the
Letter of Option dated 8th September, 1992 issued to the
Debentureholders - Ser ies F for rollover of the debentures.
The Company has invested Rs.631 crores in Reliance Industrial
Investments & Holdings Limited which in turn has an investment
to the extent of Rs. 299 crores in Reliance Petroleum Limited,
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
41
Rs. 359 crores in Larsen & Toubro Limited, and Rs. 113 crores
in BSES Limited.
D i r e c t o rs
During the year the Company conver ted Rs. 100 crores out of
i t s l o a n o f R s . 3 0 4 c r o r e s , i n t o d e b e n t u r e s o f R e l i a n c e
Petroproducts Limited. This is meant to promote downstream
projects in the Polyester and Petrochemicals areas.
Energy, Technology & Foreign Exchange
Shri H.R. Meswani, was appointed as an Additional Director
o n 3 r d Au g u s t , 1 9 9 5 , d e s i g n a t e d a s E xe c u t i ve D i r e c t o r. H e
h o l d s o f f i c e u n t i l t h e c o n c l u s i o n o f t h i s A n n u a l G e n e ral
M e e t i n g a n d i s e l i g i ble fo r a p p o i n t m e n t . T h e C o m p a ny h a s
r e c e i ve d f r o m s o m e o f i t s m e m b e r s a n o t i c e u n d e r S e c t i o n
257 of the Companies Act,1956, proposing his appointment
a s a D i r e c t o r, s u b j e c t t o r e t i r e m e n t by r o t a t i o n .
Information in accordance with the provisions of Section 217 (1)
( e ) o f t h e C o m p a n i e s A c t , 1 9 5 6 , r e a d w i t h C o m p a n i e s
(Disclosures of Particulars in the Repor t of Board of Directors)
Rules , 1988 regarding conser vation of energy, technology
absorption and foreign exchange ear nings and outgo is given in
the Annexure for ming part of this repor t.
D u r i n g t h e y e a r S h r i U. M a h e s h R a o , N o m i n e e D i r e c t o r o f
Gener al Insurance Cor poration resigned and Shr i Yashwant
D. P a t i l w a s a p p o i n t e d a s N o m i n e e D i r e c t o r o f t h e
C o r p o ra t i o n o n 1 5 t h M a r c h , 1 9 9 6 . T h e B o a r d p l a c e s o n
r e c o r d i t s a p p r e c i a t i o n fo r t h e va l u a b l e g u i d a n c e r e c e i ve d
f r o m S h r i U. M a h e s h R a o d u r i n g h i s t e nu r e a s D i r e c t o r.
Subsidiary Companies
As required under Section 212 of the Companies Act, 1956, the
audited statements of accounts, alongwith the report of the Board
of the Directors of Devti Fabrics Limited and Reliance Industrial
Investments and Holdings Limited and the respective Auditors’
Repor t thereon for the y ear ended 31 st March,1996, are
annexed.
During the year Reliance Petroproducts Limited, ceased to be a
subsidiar y of the Company. Reliance Global Trading Limited,
which became a subsidiar y of the Company during the year, also
ceased to be a subsidiary of the Company.
Fixed Deposits
The Company has not accepted /renewed any deposits during
the year. Deposits of Rs. 0.60 crore due for repayment on or
before 31 st March,1996 were not claimed by 1010 depositors
as on that date. Of these, deposits amounting to Rs. 0.03 crore
of 57 depositors have since been repaid.
Personnel
A s r e q u i r e d b y t h e p r ov i s i o n s o f S e c t i o n 2 1 7 ( 2 A ) o f t h e
Companies Act, 1956, read with Companies (Par ticulars of
Employees) Rules, 1975 as amended, the names and other
par ticulars of the employees are set out in the Annexure to the
Directors’ Repor t. However, as per the provisions of Section
219(1)(b)(iv) of the Companies Act, 1956, the Repor t and the
Accounts is being sent to all shareholders of the Company
excluding the aforesaid information. Any shareholder interested
in obtaining such par ticulars may write to the secretar y at the
Registered Office of the Company.
S h r i T. R . U. Pa i , S h r i D. H . A m b a n i a n d S h r i R . H . A m b a n i ,
r e t i r e by r o t a t i o n a n d b e i n g e l i g i b l e o f fe r t h e m s e l ves f o r
r e a p p o i n t m e n t
Au d i t o rs a n d Au d i t o rs ’ R e p o r t
M e s s r s C h a t u r ve d i & S h a h a n d M e s s r s R a j e n d r a & C o.
Au d i t o r s o f t h e C o m p a ny h o l d o f f i c e u n t i l t h e c o n c l u s i o n
o f t h e e n s u i n g A n nu a l G e n e r a l M e e t i n g . T h e C o m p a ny l a s
r e c e i v e d l e t t e r s f r o m t h e m t o t h e e f f e c t t h a t t h e i r
appointment, if made , would be within the prescr ibed limits
u n d e r S e c t i o n 2 2 4 ( 1 - B ) o f t h e C o m p a n i e s A c t , 1 9 5 6 .
Accordingly, the said auditors will be appointed as auditors
o f t h e C o m p a ny a t t h e e n s u i n g A n n u a l G e n e ra l M e e t i n g .
T h e n o t e s t o t h e a c c o u n t s r e fe r r e d t o i n t h e Au d i t o r s ’
R e p o r t a r e s e l f ex p l a n a t o r y a n d , t h e r e fo r e d o n o t c a l l fo r
a ny fur t h e r c o m m e n t s.
Ack n ow l e d g e m e n t
Yo u r D i r e c t o r s w o u l d l i k e t o e x p r e s s t h e i r g r a t e f u l
a p p r e c i a t i o n fo r t h e a s s i s t a n c e a n d c o - o p e ra t i o n r e c e i ve d
f r o m t h e F i n a n c i a l I n s t i t u t i o n s a n d t h e B a n k s, dur i n g t h e
ye a r u n d e r r ev i ew.
Yo u r D i r e c t o r s w i s h t o p l a c e o n r e c o r d t h e i r d e e p s e n s e o f
a p p r e c i a t i o n fo r t h e d evo t e d s e r v i c e s o f t h e E xe c u t i ve s,
s t a f f a n d W o rk e r s o f t h e C o m p a ny fo r i t s s u c c e s s .
Fo r a n d o n b e h a l f o f t h e B o a r d o f t h e D i r e c t o r s
M u m b a i
D a t e d : 2 7 t h M ay, 1 9 9 6
D h i r u b h a i H . A m b a n i
C h a i r man
42
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Annexure to Directors’ Report
Particulars required under the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988
A. Conservation of Energy
(a) Energy Conservation Measures Taken:
1.
2.
3.
Installation of Gas Turbine with HRSG to enable to run STG
under co-generation mode.
Installation of APH for hot oil heaters.
Simulation package utilised for optimising distillation column
operation in petrochemical plants.
Flash steam venting reduction through soft water spray.
4.
5. Reduction in boiler blow down frequency.
6. Waste LP steam utilisation in vapour absor ption chiller.
7.
8.
Installation of separate inverters for quench blower motors.
Improved utilisation of steam generation potential in the Heat
Recover y steam generators utilising the exhaust heat from
gas turbines.
9. Optimisation of cooling water consumption in va rious
condensers and coolers.
10. Usage of low pressure steam in dehydrator column reboiler.
11. Provision of demister pad in CO 2 stripper to minimise carry
over.
12. Provision of restriction orifice in Nitrogen consumption lines
to minimise LP Nitrogen consumption.
13. Replaced fan blades of one cooling tower from solid GRP
to hollow FRP to reduce power consumption.
14. Va r i a bl e s p e e d d r iv e i n c e n t r i f u g e t o r e d u c e p o we r
consumption and improve capacity.
15. Reduction of HB condenser and LB condenser blow down
rates.
16. Replacement of aluminium fans with FRP fans for air
conditioning, air cooling and cooling towers to reduce power
consumption .
Installation of air cur tains for air conditioned plants to reduce
the power consumption.
Installation of new main steamline to reduce the line losses.
18.
19. Solar hot w ater system for guest house (Utilisation of
17.
20.
nonconventional energy).
Installation of new capacitors to improve power factor from
0.91 to 0.93.
(b) A dditional Investments and Proposals, it any, being
implemented for reduction in consumption of energy:
Installation of back pressure turbine.
1.
2. Replacement of conventional shell and tube type combined
feed exchanger in LAB plant by plate type exchanger.
3. Optimisation of recycle paraffin pumping system.
4.
5.
6.
Installation of advance process control system.
Prefractionation stripper side cut recover y.
Steam condensate preheating by integration with process
plants leading to reduced steam consumption in deaerators.
Installation of vapour absor ption chiller utilising waste LP
steam.
Advanced simulation package for optimising distillation
column operation.
7.
8.
9. Heat integration of column bottom in LAB plant.
10. Automatic blow down controls for steam boilers in fibre
division.
11. Doub le extr action cum condensing steam turbine with
alternator is being installed to augment power generation
capacity.
12. Flash steam from blow down of HRSGs will be used in
Deaerators.
13. Change over from trap system to condensate pot system
for Concentrator-l reboiler.
14. Replace second cooling tower fan blades by hollow FRR.
15. Better chilled water chemical treatment to minimise fouling
and corrosion and thereby improve heat transfer rates to
achieve lower energy consumption.
16. Modify steam traps network in dr yer heaters to reduce steam
17.
consumption.
Installation of modified centr ifuge to reduce moisture in wet
cake thereby reducing steam requirement in dryer.
Installation of injection water chilling system to improve
higher productivity and reduced energy consumption.
19. Provision of pumping trap for reslurry water heater to recover
18.
steam condensate.
(c) Impact of measures at (a) & (b) above for reduction of
energy consumption and on the cost of production of
goods:
Air preheater for hot oil heater would lead to savings of Rs.10
lakhs p.a.
1.
2. Steam integration through back pressure turbine would lead
to saving of Rs. 560 lakhs p.a.
3. Replacement of combined feed exchanger with plate type
heat exchanger would result in saving of Rs. 220 lakhs p.a.
in terms of fuel only.
4. Optimisation of recycle paraffin pumping system would lead
5.
6.
7.
to saving of Rs.10 lakhs p.a.
Prefractionation stripper side cut recover y operation for
better heat integration will save Rs. 90 lakhs p.a.
Preheating of steam condensate by integration with process
plants would save low pressure steam requirement to the
tune of Rs. 374 lakhs p.a.
Vapour absorption chiller using waste low pressure steam
in fibre division resulted in saving of Rs. 100 lakhs p.a. in
ter ms of electrical power.
8. Replacement by FRP blades would result in saving of Rs.
21 lakhs p.a.
9. Heat integration of extract column bottom LAB plant would
result in saving of Rs. 19 lakhs p.a.
10. Advance process control system would result in saving of
approximately Rs. 82 lakhs p.a.
11. Automatic blow down control system for steam boilers in
fibre division would result in savings of Rs. 59 lakhs p.a.
12. Cooling water flow reduction by 1000 M 3/hr.
13. Steam consumption reduction by 3 MT/hr.
14. DM water consumption reduction by 4 MT/hr.
15. LP Nitrogen consumption reduction by 75 NM 3/hr.
16. Power saving due to replacement of fan blades by 20% i.e.
10 KW.
17. Recover y of 3 MT/hr of steam condensate.
B. Technology Absorption
Form - ‘B’
Form for disclosure of par ticulars 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:
Research and Development activity is mainly focussed in
the field of Polyester filament yar n, Polyester staple fibre,
Purified terephthalic acid and Linear alkyl benzene. The
stress has been on process development, process
modification, product development, energy conser vation,
pollution control, impor t substitution and technology
upgradation.
Improvement in specific consumption of catalysts and
additives in petrochemical processes.
Substitution of catalysts and chemicals without affecting
quality, yield and other related parameters.
Development of new and finer filament deniers for better
perfor mance and improved fabric texture.
Development of special staple fibre with specific denier
and high lustre with improved tensile proper ties.
Installation of Pilot Plant for alkylation using non-HF
catalyst.
Trials with alter nate co-catalyst for polymerisation.
Development of extrusion coating grade.
Superior additive package to improve LLDPE film quality.
Development of stretch worsted fabric using elasthane
type filament as one of the components.
Development of oil, water and stain repellent worsted
suiting using oleophobic compound as finishing agent.
Instrumental revaluation of menswear fabric to improve
fabric tailorability and perfor mance during wear.
Development of new process to produce silk-like finish
on 100% polyester dress materials.
Improvement of the stability of war p knitted fabrics.
Dev e l o p m e n t o f f i r e r e t a r d a n t a u t o m o t i ve t ex t i l e /
upholstery fabrics.
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
43
Benefits derived as a result of the above R&D:
Product Development Improvement:
Pilot plant tr ials to develop eco-friendly catalyst fo r
alkylation produced encouraging results.
2.0 Denier Polyester staple fibre successfully developed
in trilobal cross- section.
Reduction in spin-finish consumption has been achieved
for production of Polyester staple fibre.
Improvement in down stream processing in textile mill has
been achieved by using different type of spin-finishes.
New Deniers like - 230/216/POY, 135/34/POY, 140/34/POY,
1 0 0 / 3 4 / P OY, 1 1 5 / 3 4 / P OY h a ve b e e n d ev e l o p e d
s u c c e s s f u l l y fo r a c h i ev i n g b e t t e r p e r fo r m a n c e a n d
modified texture of fabric.
Development of FDY products like - 75/108, 50/48, 70/
72, 50/36, 70136 for direct use in war ping and weaving.
115/1 08/POY - micro denier developed for domestic
mar ket.
Sp in- fini sh application system mod ified to a chieve
optimum oil pick up on yarn.
Development of design for inter mingling air jets to improve
interlacement in FOY & SDY to improve textur ising and
warping performance.
Development of new process parameters to produce the
co mmod ity products based on changes in p roc ess
conditions.
Par tial recover y of unconver ted Ethylene back to system
o n a c o n s i s t e n t t r i a l s u c c e s s f u l l y c o n d u c t e d a n d
estab lished. Fur ther tr ials / modification in system
hardware to carr y forward the effor ts to total recycle
underway.
Development of extrusion coating grade. xiii) Superior
additive package for improved LLDPE film quality.
Development of high value worsted suitings, sport and
leisure wear fabrics.
Produced menswear for up-market requirement.
New fabric evaluation technique to improve tailorability
and fabric performance.
I m p r ov e m e n t o f fe e l a n d f i n i s h o f p o l ye s t e r d r e s s
mater ials.
Impor t Substitutlon
Silicon r ubber gaskets developed indigenously.
Spin-pack consumables developed.
Ceramic pin guides indigenously developed.
Indigenisation of a number of engineer ing spares and
accessor ies in polyester and petrochemical areas yielded
a net saving of Rs. 274 lakhs in the year 1995-96.
Future Plan of Action: Projects Proposed for the following:
Installation of continuous polymer filter in polycondensation
for improved filteration.
Booster pump installation for polymer pumping.
Replacement of gland packing by mechanical seal to
reduce degradation of polymer.
Development of multi-lobal profil filament yar n for fancy
effects.
Automation of product handling system.
Winder upgradation for better yield and quality.
H i g h p u r i t y N i t r o g e n g e n e r a t i o n u s i n g m e m b ra n e
technology.
Pentane recover y from PX plant stream.
Model dev elopment for molecular sieve adsor ption
phenomenon.
Modification of annealer steam condensate in drawing
process.
Recycle of treated effluent for the purpose of makeup.
Ethyl chloride dosing system.
Use of front-end catalyst and other debottlenec king
measures to achieve higher production levels.
Commercial production with alter nate co-catalyst for
polymerisation.
Development of more efficient alumina grade.
Development of high flow HDPE and LLDPE grades.
xv)
xvi)
xvii) Development of MDPE grade suited for wire insulation
application.
xviii) Faster decoking of EDC cracking fur naces by having
higher decoking temperature.
Use of a new catalyst Oxy-VIII for enhancing efficiency
of EDC in production.
Optimisation of furnace cr acking severity to maximise
throughput while reducing undesired by-product formation.
2.
(a)
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiv)
xv)
xvi)
xvii)
(b)
i)
ii)
iii)
iv)
3.
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xix)
xx)
44
xxi)
xxii)
Efforts to recover chlorine value of VCM plant dr y by-
product by recycling the effluent of incinerated waste to
Oxy-reactor.
A s a p a r t o f i m p l e m e n t a t i o n p r o c e s s o f C o m p u t e r
Integ rated Man u factur ing (CIM), Advanced Process
Control (APC) system is being installed in PP project,
MEG / VCM / HDPE plants to improve productivity, product
qualities, reduce cost of production and increase overall
bu s i n e s s e f f i c i e n c y. A l s o, va r i o u s s t a t e - o f - t h e - a r t
simulation systems are acquired for plant performance
monitor ing, technical ser vices, accounting ser vices,
technical training, etc.
xxiii) Development of machine washable wool and wool blended
worsted fabrics.
xxiv) Development of Flax blended yar n on worsted system for
manufacturing menswear with classic linen like feel.
xxv) Control of hairiness on polyester-viscose blended yar n
for improved weaveability and fabric properties.
xxvi) Study the effects of length distr ibution of var ious animal
fibres other than wool on the quality of worsted yar ns and
fabrics.
xxvii) Development of 100% wool single yarn weft suitable for
(i)
(ii)
( b )
(iii)
1.0%
4.
( a )
Rs. Crs.
50.53
24.56
75.09
weaving of high speed shuttleless looms.
Expenditure on R&D
Capital
Recurring
Total
Total R & D expenditure as
percentage of turnover
Technology absorption, adaptation and innovation:
Efforts in brief, made towards technology absorption, adaptation
and innovation and benefits derived as a result thereof:
Development of eco-fr iendly catalyst for alkylation
reactions.
Development of 2.5 Denier PSF in trilobal cross-section
profile.
Appreciable reduction in finish consumption has been
achieved for PSF production.
New POY Deniers developed to suit market requirements.
(v) Micro denier for POY developed.
Variety of denier developed for fully drawn yar n (FDY) for
direct use in war ping and weaving.
(vii)
Pre and post treatment for effluent recycle scheme.
(viii) Model simulation for adsor ption type of processes.
(ix)
(x)
DEG to TEG conversion facility commissioned.
Successfully implemented glycol product drumming
facility.
Next gener ation EO reactor catalyst used and plant
operation stabilised.
Installation of additional slurr y str ipping column to
i n c r e a s e p r o d u c t i o n ra t e, r e d u c e o f f - s p e c i f i c a t i o n
generation and improve plant-up time.
Foreign Exchange Ear nings and Outgo
1.
(xi)
(xii)
C.
(vi)
(iv)
Activities relating to Exports, initiatives to Increase
Expor ts, Development of new Export Markets for
Products and Services and Export Plan.The Company
has maintained its focus on development of domestic
market while seeking expor t markets as opportunities
arise. During the year, the Company had exports worth
Rs. 80 crores (US $ 23 million). The Company won
the ‘Top expor ter of Plastic Raw Material’ award from
the Plastics and Linoleum Expor t Promotion Council
for the second consecutive year.
a. Development of new markets such as Singapore,
Sri Lanka, Thailand, Australia for marketing of
‘REON’ brand PVC product.
Expor ts of premium quality staple fibre to USA.
Expor ts of value added polyester yar n to Japan,
Greece, Morocco.
Expor ts of LAB to quality conscious customers
in Japan, Saudi Arabia.e. Expor ts of premium
brand ‘VIMAL’ worsted fabr ics to USA, Italy,
Spain.
b.
c.
d.
2.
Total Foreign Exchange used and earned Rs. Crs.
126.08
a)
2783.00
b)
Total Foreign exchange ear ned
Total savings in foreign exchange
through products manufactured by
the Company and deemed expor ts
(US $ 810 million)
Sub Total (a+b)
Total foreign exchange used
c)
2909.08
3062.82
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Form ‘A’
Form for disclosure of particulars with respect to Conser vation of Energy
Part ‘A’
Power & Fuel Consumption
1.
Electricity
a) Purchased Units (Lakhs)
Total Cost (Rs. in crores)
Rate/Unit (Rs.)
b) Own Generation
1)
2)
Through Diesel Generator
Units (Lakhs)
Units per unit of fuel
Cost/Unit (Rs.)
Through Steam Turbine/Generator
Units (Lakhs)
Units per unit of Fuel
Cost/Unit (Rs.)
2.
Furnace Oil
Quantity (K. Ltrs.)
Total Cost (Rs. in crores)
Average Rate per Ltr. (Rs.)
3. Diesel Oil
Quantity (K. Ltrs.)
Total Cost (Rs. in crores)
Rate/Unit per Ltr. (Rs.)
4. Others
Gas
Quantity (1000 M3)
Total Cost (Rs. in crores)
Rate/Unit per 1000M 3 (Rs.) 2,099.31
231,258.67
Par t ‘B’
Consumption per Unit of Production
April, 95 to
March, 96
April, 94 to
March, 95
1,647.93
58.42
3.55
531.80
3.57
2.31
8,411.95
3.50
1.25
3,722.76
107.44
2.89
561.78
3.57
2.57
6,306.45
3.78
1.05
253,297.55
117.58
4.64
230,920.82
107.80
4.67
77,867.16
56.72
7.28
65,289.26
46.10
7.06
192,934.00
48.55
1,884.31
36.35
Fabrics
PFY
Per 1000 Mtrs
Per MT
PSF
Per MT
PTA
Per MT
LAB
Per MT
MEG
Per MT
PVC
Per MT
HOPE
Per MT
C u r r e n tP r e v i o u sC u r r e n tP r e v i o u sC u r r e n tP r e v i o u sC u r r e n tP r e v i o u sC u r r e n tP r e v i o u sC u r r e n tP r e v i o u sC u r r e n tP r e v i o u s C u r -
r e n t
P r e v i o u s
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Y e a r
Electricity (KWH)
1199
1049
1318
1309
Furnace Oil (Ltrs.)
6
6
16
138
693
18
699
155
371
134
374
28
320
84
325
115
840
899
497
450
207
217
Gas
(SM 3)
LSHS (Kgs)
3 7 1
3 8 8
1 1
1 8
1 0 8
1 2 1
3 3
3 6
3
4
157
37
179
42
20
126
249
219
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
45
Auditors’ Report
To the Members of Reliance Industries Limited
We have audited the attached Balance Sheet of Reliance Industries Limited as at 31st March,1996 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
ter ms of Section 227 (4A) of the Companies Act,1956 we give in the Annexure hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2.
Fur ther 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
pur poses of our audit.
b)
c)
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.
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 infor mation and according to explanations given to us, the said Balance Sheet and Profit
and Loss Account read 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:
i)
ii)
in so far as it relates to Balance Sheet, of the state of affairs of the Company as at 31 st March,1996 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.
Mumbai :
Dated 27th May,1996
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
D. Chaturvedi
Par tner
R.J. Shah
Partner
46
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Annexure to Auditor’s Report
Referred to in paragraph 1 of our repor t of even date
1.
The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets
on the basis of infor mation available except in respect of cer tain items of furniture and fixtures. According to the infor mation and
explanations given to us most of the fixed assets were physically ver ified by the management during the year and no material
discrepancies were noticed on such verification as compared to the available records. In our opinion, the frequency of such
verification is reasonable having regard to the size of the Company and the nature of its assets.
2. None of the fixed assets have been revalued during the year.
3.
4.
5.
6.
7.
8.
9.
10.
11.
As explained to us, the stock of stores, spare par ts, raw materials and finished goods have been physically verified by the
management at reasonable inter vals dur ing the year. In our opinion, the frequency of such ver ification 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 been properly
dealt with in the books of account.
The valuation of stocks is fair and proper and is in accordance with the nor mally accepted accounting principles and is on the
same basis as in the preceding year.
The Company has not taken any loans, secured or unsecured from companies, fir ms 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 subsection (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 subsidiar y companies and advance towards promoters
contr ibution. Attention is invited to Note No. 8 of Schedule ‘O’ to the accounts. In our opinion, having regard to the long term
involvement with the companies and the explanations given to us in this regard, the terms and conditions of the above are not,
pr ima-facie, prejudicial to the interests of the Company.
In respect of the loans and advances in the nature of loans given by the Company to par ties other than subsidiary companies
and advance towards promoters contr ibution as 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 mater ials 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 of 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 par ty.
12. According to the infor mation and explanations given to us, the Company has a regular procedure for the deter mination of
unserviceable or damaged stores, raw mater ials and finished goods. Adequate provision has been made in the accounts for the
loss ar ising on the items so determined.
13.
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of
Section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the Public.
14.
In our opinion reasonable records have been maintained by the Company for the sale and disposal of realisable by-products and
scrap wherever significant.
15.
In our opinion the inter nal audit system of the Company is commensurate with its size and the nature of its business.
16. The Centr al Government has prescribed maintenance of Cost Records under Section 209(1)(d) of the Companies Act, 1956, in
respect of cer tain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company
in this connection and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained.
We have not, however, made a detailed examination of the same.
17. According to the record of the Company, Provident Fund and Employees’ State Insurance dues have been regular ly deposited
with the appropr iate authorities.
18. According to information and explanation 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, 1996 for a period of more than six months from
the date of becoming payable.
19. According to the infor mation 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
Industr ial Companies (Special Provisions) Act, 1985.
21.
In respect of trading activities, we are infor med 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.
Mumbai :
Dated: 27th May, 1996
For Chatur vedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
D. Chaturvedi
Partner
R.J. Shah
Partner
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
47
Balance Sheet as at 31st March, 1996
Schedule
As at
31st March,1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
Sources of Funds
Shareholders’ Funds
Share Capital
- Equity ‘A’
- Preference
Reserves and Surplus
Loan Funds
Secured Loans ‘C’
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
Sundr y Debtors
Cash and Bank Balances
Loans and Advances
Less: Current Liabilities and Provisions
Current Liabilities
Provisions
Net Current Assets
Total
Significant Accounting Policies
Notes on Accounts
‘A’
‘B’
‘D’
‘E’
‘F’
‘G’
‘H’
‘I’
‘N’
‘O’
458.23
200.00
7,747.07
3,422.54
1,298.91
6,885.50
2,141.34
4,744.16
4,488.71
34.00
759.61
330.56
1,555.31
2,679.48
1,173.12
3,852.60
1,629.61
282.02
1,911.63
455.86
5.50
6,731.29
8,405.30
7,192.65
2,117.25
822.87
4,721.45
13,126.75
2,939.92
10,132.57
5,315.40
1,805.78
3,509.62
3,075.09
9,232.87
1,952.91
6,584.71
1,993.41
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
1,940.97
13,126.75
1,554.45
10,132.57
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
D. Chaturvedi
Par tner
R.J. Shah
Par tner
Mumbai
Dated: 27th May, 1996
D.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.S. Betrabet
Y.D. Patil
R.H. Ambani
N.H Ambani
M.L Bhakta
T. Ramesh U. Pai
Y.R Trivedi
}
}
}
Chairman
Vice Chairman &
Managing Director
Managing Director
Executive Directors
Nominee Directors
Directors
V.M. Ambani
Secretar y
48
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Profit and Loss Account for the year ended 31st March, 1996
Schedule
Rs.
Rs.
Rs.
Rs.
1995-96
(Rs. in crores)
1994-95
‘J’
‘K’
‘L’
‘M’
Income
Sales
Other Income
Variation in Stock
Expenditure
Purchases
Manufactur ing and Other Expenses
Interest
Depreciation
Less: Pre-operative expenses of projects
under commissioning
Profit for the year
Add: Balance brought forward from last year
Amount Available For Appropriations
Appropriations
Capital Redemption Reser ve
Debenture Redemption Reser ve
General Reser ve
Inter im Dividend Paid on Preference Shares (subject to tax)
Proposed Dividend (subject to tax)
Preference Shares
Equity Shares
Balance Carried to Balance Sheet
Significant Accounting Policies
Notes on Accounts
‘N’
‘O’
7,018.78
312.59
4.42
7,335.79
6,270.94
1,064.85
62.24
1,127.09
7,786.34
271.85
152.52
8,21 0.71
6,905.44
1,305.27
90.92
1,396.19
18.71
6,461.08
110.13
336.51
6,926.43
20.99
----
231.30
800.00
28.00
----
276.22
23.68
5,726.40
279.51
278.24
6,307.83
36.89
5.50
30.50
800.00
----
0.83
199.34
1,335.52
60.67
1,036.17
90.92
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
D. Chaturvedi
Par tner
R.J. Shah
Par tner
D.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.S. Betrabet
Y.D. Patil
R.H. Ambani
N.H Ambani
M.L Bhakta
T. Ramesh U. Pai
Y.R Trivedi
}
}
}
Chairman
Vice Chairman &
Managing Director
Managing Director
Executive Directors
Nominee Directors
Directors
Mumbai
Dated: 27th May, 1996
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
49
V.M. Ambani
Secretar y
Schedules forming part of the Balance Sheet
Schedule ‘A’
Share Capital
Author ised:
55,00,00,000
5,50,000
3,00,00,000
14,45,00,000
Equity Shares of Rs. 10 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
Equity Shares of Rs. 10 each
As at
31st March,1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
550.00
5.50
300.00
144.50
1,000.00
460.37
550.00
5.50
300.00
144.50
1,000.00
460.37
Subscribed: Equity
46,03,69,802
(46,03,61 ,894)
Equity Shares of Rs. 10 each fully paid up
460.37
Less: Calls in arrears - by others
Add: Shares forfeited
(Previous Year, amount originally paid on
7908 Equity Shares Rs. 39,540)
2.14
458.23
----
460.36
4.50
455.86
----
Issued & Subscribed: Preference
----
(5,50,000)
2,00,00,000
15% Cumulative Redeemable Preference
Shares of Rs. 100 each fully paid up
(Redeemed on 1st Apr il, 1995)
14% Cumulative Redeemable Preference
Shares of Rs. 100 each fully paid up
(Redeemable at par on 29th March, 1997)
458.23
455.86
----
200.00
658.23
5.50
----
461.36
Of the above Equity Shares:
1.
(a)
1,56,80,100
(b) 18,05,78,290
(c) 20,31,30,572
(20,31,22,664)
4,060
(d)
Shares were allotted as Bonus Shares by capitalisation of Premium and Reser ves.
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
Warrants, against Global Depositor y Shares (GDS) and reissue of forfeited equity shares.
Shares (including 2,475 Shares by way of Bonus Shares by Capitalisation of Share Premium and Reserves)
are re ser ved for allotment to some of the Shareholders/pur ported transferees of shares of erstwhile, ‘The
Sidhpur Mills Company Limited’, which was amalgamated with the Company.
2. Refer Note 1 (d)(vi) of Schedule C and Note to Schedule D in respect of option on unissued share capital.
50
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Balance Sheet
Schedule ‘B’
Reser ves & Surplus
Capital Reser ve
As per last Balance Sheet
Add: On redemption of Debentures
Profit on reissue of Forfeited Shares (Rs. 39,540)
Capital Redemption Reser ve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Amalgamation Reser ve
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 Reserve
On Reissue of Forfeited Shares
Less: Calls in arrears
Debenture Redemption Reser ve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Investment Allowance Reserve
As per last Balance Sheet
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 Reser ve
Taxation Reserve
As per last Balance Sheet
General Reser ve
As per last Balance Sheet
Add: Acquired on Amalgamation of RPEL & RPPL
Transferred from Profit and Loss Account
Profit and Loss Account
As at
31st March,1996
Rs.
Rs.
2.45
5.80
0.58
1.87
5.80
----
----
----
----
----
(Rs. in crores)
As at
31st March, 1995
Rs.
0.58
5.80
Rs.
0.24
0.34
----
0.30
5.50
674.47
244.78
919.25
919.25
4,823.71
----
----
----
0.04
4,823.75
12.49
141.75
231.30
----
----
301.35
----
1,382.49
----
800.00
----
----
2,312.62
1,266.42
325.42
919.25
----
4,823.71
25.31
4,811.26
4,798.40
111.25
30.50
373.05
141.75
6.70
6.70
----
----
294.65
6.70
550.00
32.49
800.00
301.35
10.00
2,182.49
60.67
7,747.07
301.35
10.00
1,382.49
90.92
6,731.29
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
51
Schedules forming part of the Balance Sheet
Schedule ‘C’
Reserves & Surplus
A) Debentures
1. Non-Convertible Debentures
Less: Calls in arrears
2. Advance Subscription on Debentures
B) Term Loans
1.
2.
From Banks
a)
b) Rupee Loans
Foreign Currency Loans
From Financial Institutions
Foreign Currency Loans
a)
b) Rupee Loans
C) Working Capital Loans
From Banks
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
1,780.95
52.43
1,728.52
83.00
529.39
77.80
607.19
395.01
16.94
411.95
1,273.04
6.48
1,266.56
----
1,811.52
1,266.56
17.47
142.80
160.27
275.43
9.36
284.79
1,019.14
591.88
3,422.54
445.06
405.63
2, 1 7.25
Notes
1.
(a) Debentures referred to in A(1) to the extent of Rs.1217.62 crores are secured/to be secured by way of legal/equitable
mor tgage on the proper ties situated at Naroda, District Ahmedabad and Hazira, District Surat in the State of Gujarat and at
Patalganga, District Raigad in the State of Maharashtra and Ships of the Company.
( b ) Debentures referred to in A(1) to the extent of Rs.53.33 crores are secured by way of second and subservient charge,
created by legal mor tgage in English for m on the properties situated at Naroda, District Ahmedabad in the State of Gujarat.
(c) Debentures referred to in A(1 ) to the extent of Rs.510.00 crores and advance subscription referred to in A (2) are secured
by legal mortgage in English form on the properties situated at Hazira, District Surat, in the State of Gujarat and at Patalganga,
Distr ict Raigad in the State of Maharashtra.
(d) Debentures referred to in A(1) consist of: (i) 13 .5% Debentures of Rs. 100 each aggregating Rs. 53.33 crores which are
redeemable at par on the 10th December, 1996. (ii) 15% Debentures of Rs. 100 each aggregating Rs. 266.55 crores which
are redeemable at par on 31 st August, 1999. (iii) 14% Debentures of Rs. 100 each aggregating Rs.82.50 crores which are
redeemable at a premium of 5% on the face value of the Debentures on the expir y of seven years from the respective dates
of allotment or at the option of the Board to redeem the Debentures in three equal instalments at the end of sixth, seventh
and eighth year from the respective dates of allotment commencing from March, 1997. (iv) 12.5% Debentures of Rs.95
each aggregating Rs. 342.87 crores, 14% Debentures of Rs.150 each aggregating Rs. 125.78 crores and 17.5% Debentures
of Rs 100 each aggregating Rs.264.92 crores, all of which are redeemable at par on the expiry of 10 years from the date
of allotment i.e. 2002 with an option to the Board to redeem at any time after 26th February, 1999. (v) 18% Debentures
of Rs.100 each aggregating Rs.60 crores which are redeemable at par in three equal instalments on the expiry of sixth,
seventh and eighth year from the date of allotment; the redemption will commence from July, 1999. (vi) 14% Debentures of
Rs.50 each aggregating Rs.75 crores which are redeemable at par on the expiry of sixth year from the date of allotment i.e.
11th Januar y, 2000. Warrants issued with the debentures entitle the holders thereof to apply at the option of the warrantholders
for six crore equity shares of Rs. 10 each of the Company. (vii) 16.5% Debentures of Rs. 100 each, aggregating Rs 285
crores which are redeemable at par on the expiry of seven years from the respective dates of allotment, commencing from
September, 2002. (viii) 14 08% Debentures of Rs. 100 each, aggregating Rs.308.00 crores (including advance subscr iption)
which are redeemable at par in three equal instalments, commencing from the expir y of fifth year from the respective dates
of allotment commencing from February, 2000. (ix) Debentures aggregating Rs.0.11 crore are held by Directors.
(a) Term Loans referred to in B(1 ) (a), to the extent of Rs. 515.25 crores are secured on the proper ties situated at Hazira,
Distr ict Surat in the State of Gujarat and at Patalganga, District Raigad in the State of Maharashtra and Ships of the
Company and Term Loan referred to in B(2)(a) above to the extent of Rs.226.34 crores are to be secured on the properties
situated at Hazira, Distr ict Surat in the State of Gujarat and at Patalganga, District Raigad in the State of Maharashtra.
(b) Term Loan referred to in B(2) (a) to the extent of Rs. 159 55 crores and Ter m Loan referred to in B(2)(b) above, to the extent
of Rs.7.28 crores are secured/to be secured on the properties situate at Naroda, District Ahmedabad and Hazira, District
Surat in the State of Gujarat, at Patalganga, District Raigad in the State of Maharashtra and Ships of the Company.
(c) Term Loans referred to in B(2)(a) to the extent of Rs.9.12 crores are secured by an exclusive charge by way of hypothecation
of specific items of machiner y ÜjÜŒ(d) Ter m Loans referred to in B(1 ) (a) to the extent of Rs.1.65 crores are secured by
guarantee issued by one of the Bankers of the Company against hypothecation of specific items of plant and machiner y.
(e) Term Loans referred to in B(1) (a) to the extent of Rs.12.49 crores are secured by guarantee issued by one of the Bankers
to the Company against hypothecation of all movable assets both present and future situated at Naroda and Patalganga.
(f) The Ter m Loans referred to in B(1 )(b) are secured by pledge of units of Unit Trust of India.
(g) The Term Loans referred to in B(2)(b) above to the extent of Rs.9 66 crores are secured/to be secured only on the dwelling
units constr ucted/to be constructed for the employees of the Company.
The charges created/to be created on the debentures referred to in Note 1 (a) and Note 1 (c) and term loans referred to in Notes
2(a) and (b) above, shall rank par i 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,
stock-in-process, stores and spares, book debts, outstanding monies, receivable claims, trust receipts etc.
(b) Secured Loans, include loans of Rs. 158.25 crores and Debentures of Rs. 78.33 crores repayable/redeemable within one year.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
2.
3.
4.
52
Schedules forming part of the Balance Sheet
Schedule ‘D’
Unsecured Loans
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
A)
i)
ii)
3.5% Euro Conver tible Bonds due 1999
8.125% Euro Bonds due 2005
B) Fixed Deposit
C) Shor t Ter m Loans
Banks
i)
ii) Others
D)
Interest-free Loans under Sales-tax Deferral Scheme
480.92
515.25
----
----
67.00
235.74
1,298.91
442.43
----
8.04
137.16
235.04
822.67
----
Note:
The Bonds referred to in (A) (i) are conver tible into 1,52,49,305 Equity Shares of Rs. 10 each of the Company at the option
of the bondholders.
Schedule ‘E’
Fixed Assets
Description
Leasehold Land
Freehold Land
Development Rights
Buildings
Plant & Machi nery
Electrical Installation
Factory Equipments
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopter
Jetties
Total
Previous Year
Capital Work-in-Progress
Notes:
Gross Block
Depreciation
Net Block
(Rs. in crores)
Additions
Rs.
Deductions
Rs.
Upto
01-04-95
Rs.
For the
Year
Rs.
Deduc----
tions
Rs.
Upto
31-03-96
Rs.
As At
31 -03-96
Rs.
As At
31-03-95
Rs.
As At
01-04-95
Rs.
52.36
1.09
38.66
334.45
2.05
2.22
----
92.87
4,429.98
1,166.05
142.75
52.44
31.19
26.63
152.63
25.41
27.82
5,315.40
4,737.72
88.47
36.21
7.61
10.26
18.75
----
148.50
1,572.99
593.86
As At
31-03-96
Rs.
54.41
3.31
38.65
427.32
0.95
----
0.12
38.34
5,595.98
1,681.66
231.22
88.53
38.77
34.20
171.38
25.41
176.32
31.99
9.33
8.99
4.61
25.09
1.71
2.99
----
----
--------
0.05
----
0.12
0.03
2.69
----
----
----
0.35
----
1.23
14.33
284.85
8.41
4.90
2.71
2.87
8.51
1.42
6.93
2.89
16.18
6,885.50
5,315.40
1,805.78
1,532.68
336.51
278.24
-
----
----
-
0.04
----
0.03
0.01
0.87
-
----
----
0.95
5.14
1.30
----
1.35
52.67
53.11
3.31
37.30
51 40
1.09
38.52
374.65
296.11
1, 966.47
3,629.51
2,748.35
40.40
14.20
11.69
6.61
33.60
3.13
9.92
2,141.34
1,805.78
190.82
110.76
74.33
27.08
27.59
137.78
22.28
166.40
4,744.16
3,509.62
4,488.71
43.11
22.19
22.02
127.54
23.70
24.83
3.509.62
3,075.09
a)
Leasehold Land include Rs.0.11 Crore in respect of which lease-deeds are pending execution.
b) Buildings include cost of shares in Co-operative Societies Rs.0.01 crore (Previous Year Rs. 44,150).
c) Capital Work-in-Progress includes
(i) Rs.395.67 Crores on account of pre-operative expenses. (Previous Year Rs. 195.40 Crores).
(ii) Rs.236.82 Crores on account of cost of construction materials at site. (Previous Year Rs. 148.22 Crores)
(iii) Rs.307.59 Crores on account of advance against Capital Work-in-Progress. (Previous Year Rs. 1432.66 Crores).
d) Additions include Rs.20.41 Crores on account of exchange difference. (Previous Year Rs. 11.14 Crores).
e)
The Ownership of Jetties vests with Gujarat Maritime Board. However, under an agreement with Gujarat Maritime Board, the
Company has been per mitted to use the same at a concessional rate.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
53
Schedules forming part of the Balance Sheet
Schedule ‘F’
Investments
A. Long Term Investments
Government and other Securities
Unquoted
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
7 Years National Savings Cer tificates (Face Value Rs.5,000)
(Deposited with Sales Tax Dept)(Previous Year Rs.5,000)
Post Office Time Deposit
Indira Vikas Patra
(Rs.15,000; Previous year Rs.15,000)
Kisan Vikas Patra (Deposited with Sales Tax Dept)
(Rs.20,000; Previous year Rs.20,000)
Vikas Cash Cer tificate (Deposited with Sales Tax Dept)
(Rs.2,000; Previous year Rs.2,000)
----
0.20
----
----
----
0.20
Trade Investments
In Equity Shares
Quoted, fully paid up
6,05,80,969 Reliance Capital Ltd. of Rs. 10 each
486.55
*
(5,30,55,150)
69,80,000 Reliance Industrial Infrastructure Ltd. of Rs. 10 each
(69,80,000)
Unquoted, fully paid up
16.58
503.13
60 New Piece Goods Bazar Co. Ltd. of Rs.100 each
(60)
(Rs.17,000; Previous year Rs.17,000)
5 Bombay Gujarat Art Silk Vepari Mahajan Co-operative Shops
(5) & Warehouse Society Ltd. of Rs.200 each
(Rs.1,000; Previous year Rs.1,000)
165 The Ar t Silk Co-operative Society Ltd. of Rs.100 each
(165)
(Rs.16,500;Previous Year Rs.16,500)
20 The Bombay Mar ket Ar t Silk Co-operative (Shops &
(20) Warehouses) Society Ltd., of Rs.200 each,
(Rs.4,000; Previous Year Rs.4,000)
15 Pandesara Industrial Co-operative Society Ltd. of
(15) Rs.100 each (Rs.1,500; Previous year Rs.1,500)
11,08,500 Reliance Europe Ltd. of Sterling
(11,08,500) Pound 1 each
650 Reliance Petroproducts Private Ltd. of Rs.10 each @
(1,300)
(Rs.6,500; Previous year Rs.13,000)
800 Reliance Global Trading Private Ltd. of Rs.10 each @
(-)
(Rs.8,000; Previous year Rs. Nil)
Unquoted, partly paid up
225 Crimpers Industr ial Co-operative Society Ltd. of Rs. 100
(225) each Rs. 25 paid up (Rs.5,625; Previous Year Rs. 5,625)
1,000 Reliance Petroproducts Pr ivate Ltd. of Rs. 2.50 each
(-)
(Rs.2,500; Previous year Rs. Nil)
1,250 Reliance Global Trading Pr ivate Ltd. of Rs. 2.50 each
(Rs.3,125; Previous year Rs. Nil)
(-)
---- Reliance Capital Limited, of Rs.10 each
(73,82,781) Rs. 5 Paid up
In Preference Shares
Unquoted, fully paid up
86,00,000
6% Cumulative Redeemable Preference
(86,00,000) Shares of Reliance Enterprises Limited, of Rs. 100 each
----
----
----
----
----
3.93
----
----
3.93
----
----
----
----
----
86.00
86.00
----
0.20
----
----
----
0.20
0.20
0.20
443.95
16.58
460.53
----
----
----
----
----
3.93
----
----
3.93
----
----
----
21.71
21.71
86.00
86 00
54
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
Investments
In Debentures
Unquoted, fully paid up
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
1,00,00,000 Zero Coupon Optionally Convertible Unsecured Debentures
(-)
of Reliance Petroproducts Private Limited of Rs.100 each
100.00
In Equity Shares of subsidiary companies
Unquoted, fully paid up
2,10,070 Devti Fabrics Ltd. of Rs.10 each
(2,10,070)
14,75,04,400 Reliance Industr ial Investments and Holdings Ltd.
(14,75,04,400)
of Rs.10 each
In Debentures of subsidiary companies
Unquoted, fully paid up
12,62,903 Zero Coupon Optionally Conver tible Unsecured
(-) Debentures of Reliance Industrial Investments
and Holdings Ltd. of Rs.5,000 each
Other Investments
In Equity Shares
Quoted, fully paid up
15,51,600 BSES Ltd. of Rs.10 each
(14,86,700)
27,57,800
(5,98,250)
Larsen & Toubro Ltd. of Rs.10 each
Unquoted, fully paid up
1,000 Air Control & Chemical Engineer ing Co. Ltd.
(1,000) of Rs.100 each
100.00
0.21
147.50
147.71
631.45
631.45
33.73
69.53
103.26
0.01
0.01
Total (A)
103.27
1,575.69
B. Current Investments
Other Investments
In Equity Shares
Quoted, fully paid up
11,000 Delta Industr ies Ltd of Rs. 10 each
(11,000)
80 The Industr ial Credit & Investment Cor poration
(54,980)
3,91,960 Indian Petrochemicals Cor poration Ltd.
of India Ltd. of Rs.10 each (Rs.1,491)
(-) of Rs.10each
2,54,700 Industr ial Development Bank of India Ltd.
(-) of Rs.10 each
---- State Bank of India of Rs.10 each
(2,75,000)
Unquoted, fully paid up
4,80,000 Him Teknoforge Limited of Rs.10 each
(4,80,000)
22,500 Equity Shares of Container Cor poration of India Ltd.
(34,42,600) of Rs.10 each
0.08
----
6.44
3.40
----
9.92
1.20
0.16
1.36
----
----
693.06
572.17
0.21
147.50
147.71
----
----
779.16
147.71
47.27
767.35
32.28
14.98
47.26
0.01
0.01
0.08
0.17
----
----
6.30
6.55
1.20
25.13
26.33
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
55
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
Investments
In Debentures
Quoted, fully paid up
624
12.5% Fully Conver tible Debentures of ICICI Ltd.
(624) of Rs. 450 each
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
In Bonds
Taxfree, unquoted, fully paid up
9.50% India Development Bonds (Face Value US$ NIL)
(Previous year US$1,39,72,000)
Taxable , unquoted, fully paid up
13% Unsecured, Redeemable, Industrial Development
Bank of India Omni Bonds Series 2 in the form of
Promissor y Note
(Face value Rs.2 crores;Previous year Rs. Nil)
50,000 13% Secured, Redeemable Bonds of Nuclear Power
(-) Corporation of India Ltd. of Rs.1,000 each
----
15% Secured, Redeemable, Non-cumulative Bonds of
(1,00,000) Steel Authority of India Ltd. of Rs.1,000 each
1,10,000 15.5% Secured, Redeemable, (2nd issue) Privately placed
(-) Bonds of Nuclear Power Corporation of India Ltd. of
0.03
0.03
----
----
1.92
4.73
----
Rs.1,000 each
17% Secured, Redeemable, 6th Issue, pr ivately placed
----
10.29
(20,000) Bonds of Mahanagar Telephone Nigam Ltd. of
Rs.1,000 each
----
3,04,500 17.5% Secured, Redeemable, Non-cumulative Bonds of
(-) Nuclear Power Corporation of India Ltd. of Rs.1,000 each 30.75
5,000 Unsecured, Redeemable, Floating Interest Rate Bonds of
(-) Punjab National Bank of Rs.10,000 each
---- Unsecured, Redeemable, Floating Interest Rate Bonds of
(10,000) State Bank of India of Rs.1,000 each
17% Secured, Redeemable Bonds of Power Finance
Corporation (Face value Rs.17 crores; Previous
year Rs.Nil)
In Units
Quoted
---- Kothari Bluechip Fund of Rs.10 each
(70,00,000)
22,60,100 SBI Magnum Multiplier Plus 1993 units
(3,65,800)
of Rs. 10 each
---- GIC RISE-II of Rs.10 each
(3,75,00,000)
11,40,85,600 Units (1964 scheme), Unit Tr ust of India
(52,34,25,310)
of Rs.10 each
50,00,000 Reliance Capital Growth Fund of Rs.10 each
(-)
Unquoted
50,00,000 The Alliance ’95 Fund Units of Rs.10 each
(50,00,000)
----
(2,00,00,000)
JM Mutual Fund (Liquid Fund) of Rs.10 each
3,00,000 Units of Unit Scheme 1995, Unit Trust of India
(10.00,000)
9,05,37,771 Kothari Pioneer Prima Fund Units of Rs.10 each
of Rs.100 each
(15,79,57,680)
1,50,00,000 Reliance Vision Fund of Rs.10 each
(-)
4.83
----
17.22
69.74
----
2.26
----
173.97
5.00
181.23
4.85
----
3.00
92.09
15.00
114.94
0-03
0.03
54.16
54.16
----
----
10.53
----
2.32
----
----
1.00
----
13.85
7.00
0.40
40.17
834.91
----
882.48
5.00
18.98
10 00
208.68
----
242.66
Total Investments (A) + (B)
Total (B)
377.22
1,952.91
1,226.06
1,993.41
* Includes 2,57,12,100 shares having a lock-in period upto October 1999.
@ Ceased to be a Subsidiar y Company during the year.
56
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Balance Sheet
Schedule ‘F’ (Contd.)
Investments
Aggregate Value of
Quoted Investments
Unquoted Investments
Movements during the year
(Purchased & Sold)
Government Securities
14% Central Government Stock, 2005
14% Maharashtra State Development Loan, 2005
Bonds
9% Coal India Limited
13% Industrial Development Bank of India
9.25% National Hydroelectr ic Power Corporation Limited
13% National Hydroelectric Power Cor poration Limited
15% Steel Authority of India Limited
Shares
Padmini Polymers Ltd.
Indian Petrochemicals Cor poration Ltd.
Larsen & Toubro Ltd.
Industr ial Development Bank of India
Reliance Global Trading Private Ltd.
Reliance Global Trading Private Ltd.
Reliance Petroproducts Pr ivate Ltd.
Mutual Fund Units
Units’64
SBI Magnum Multiplier Plus ’93
‘Represents Rupees in Crores
As at
31st March, 1996
Rs.
Rs.
Book
Value
Rs.
797.56
1155.35
Market
Value
Rs.
785.52
----
(Rs. in crores)
As at
31st March, 1995
Rs.
Book
Value
Rs.
1396.85
596.56
Rs.
Mar ket
Value
Rs.
1738.56
----
Face Value
Rs.
Nos.
Cost
Rs. in crores
3.00*
5.00*
1000.00
158.00
1000.00
*
1000.00
1000.00
50000
50000
1010000
130000
10.00
10.00
10.00
10.00
10.00
2.50
2.50
200000
310040
4
1440000
800
1250
1000
* 2.21
5.00
4.45
155.01
4.45
96.59
12.83
34.80
6.05
59.14
0.50
5.27
19.22
0.00
0.00
0.00
10.00
10.00
84400000
43510300
149.37
43.54
13% Industrial Credit & Investment Corporation of India Limited
9.5% India Development Bonds
39.00
US$ 19,10,000
*
17.5% Nuclear Power Corporation of India Ltd.
1000.00
585500
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
57
186.75
148.19
41.43
383.24
54.79
4.58
59.37
4.58
54.79
275.77
0.50
130.48
2.96
1,421.37
*
Schedules forming part of the Balance Sheet
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 Banks
In Current Accounts with Scheduled Banks
In Fixed Deposit Accounts
With Scheduled Bank
With Others
*
Represents deposits of
a) Rs.1318.32 Crores with Union Bank of Switzerland (Previous Year
Rs.224.07 Crores)(Maximum amount outstanding at any time during
the year Rs.1318.32 Crores.)
b) Rs.103.05 Crores with Industrial Development Bank of India
(Previous Year Rs. Nil)(Maximum amount outstanding at any time
during the year Rs.103.05 Crores.)
Schedule ‘H ‘
Loans and Advances
Unsecured - (Considered Good)
Loans to subsidiar y companies
Advances recoverable in cash or in kind or for value to be received
Deposits
Balance with Customs, Central Excise Authorities, etc.
As at
31st March, 1996
Rs.
Rs.
34.00
(Rs. in crores)
As at
31st March, 1995
Rs.
8.76
Rs.
168.48
221.93
48.42
223.73
759.61
662.56
83.67
6.66
90.33
6.66
83.67
457.53
330.56
541.20
0.38
139.93
2.41
224.07
1 ,555.31
2,679.48
366.79
1,579.31
13.43
675.25
257.21
227.23
1,173.12
592.64
568.95
125.18
84.84
1,371.61
Notes:
Advances include:
(a) Rs.0.23 Crore to Officers (Maximum amount outstanding at any
time during the year Rs. 0.23 Crore)
(b) Rs. 200.00 Crores to Reliance Petroleum Limited, a Company under
the same management, towards promoters’ contribution.
(Previous Year Rs. Nil)
58
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Balance Sheet
Schedule ‘I’
Current Liabilities Provisions
Current Liabilities
Sundry Creditors
Unclaimed Dividends
Excess Debenture Application monies refundable/adjustable
Interest accrued but not due on loans
Provisions
Provision for Wealth Tax
Provision for Leave Encashment
Proposed Dividend (subject to tax)
*includes for capital expenditure Rs.643.36 Crores (Previous year
Rs.286.34 Crores) and acceptances of Rs.209.22 Crores
(Previous year Rs.91.31Crores)
(Rs. in crores)
As at
31st March, 1996
Rs.
Rs.
As at
31st March, 1995
Rs.
Rs.
*
1,514.54
9.54
3.14
102.39
2.40
3.40
276.22
1,118.23
10.74
3.07
62.86
1,629.61
1,194.90
1.40
----
200.17
282.02
1,911.63
201.57
1,396.47
Schedules forming part of the Profit and Loss Account
Schedule ‘J’
Other Income
Expor t Incentives
Dividends:
From Subsidiaries
From Long Ter m Investments
From Current Investments
[Tax Deducted at source Rs. 26.19 Crores; (Previous Year Rs. 7.37 Crores)]
Interest Received
From Current Investments
From Others
[Tax Deducted at source Rs.t3.03 Crores; (Previous year Rs.9.88 Crores)]
Profit on Sale of Current Investments (net)
Profit on Sale of Assets (net)
Miscellaneous Income
Schedule ‘K’
Variation in Stock
Stock-in-trade (at close)
Finished goods
Stock-in-process
Stock-in-trade (at commencement)
Finished goods
Stock-in-process
1995-96
Rs.
Rs.
----
12.24
18.34
80.66
16.91
96.33
383.24
41.43
223.73
48.42
111.24
113.24
25.77
0.03
21.57
271.85
424.67
272.15
152.52
Rs.
4.79
2.13
77.07
70.71
94.48
223.73
48.42
226.08
41.65
(Rs. in crores)
1994-95
Rs.
0.27
83.99
165.19
56.05
0.24
6.85
312.59
272.15
267.73
4.42
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
59
Schedules forming part of the Profit and Loss Account
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 Spares
Dyes and Chemicals
Electr ic Power, Fuel and Water
Machiner y Repairs
Building Repairs
Labour, Processing and Machinery hire Charges
Excise Duty
Lease Rent
Exchange Differences
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 Adver tisement 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
Schedule ‘M’
Interest
Debentures
Fixed Loans
Others
(Rs. in crores)
1995-1996
Rs.
Rs.
1994-1995
Rs.
Rs.
221.93
1,197.19
1,419.12
148.19
107.09
166.23
315.89
45.10
24.46
126.48
1,507.83
97.45
19.05
134.40
18.28
37.75
40.76
51.46
79.08
3.65
38.80
5.69
13.77
36.29
21.62
21.81
17.13
32.44
1.21
161.41
1.00
4.34
1,203.87
1,630.63
1,270.93
2,059.68
143.78
1,282.02
1,425.80
221.93
107.42
136.68
289.59
14.18
10.84
92.96
1,517.13
142.97
1.97
2,409.58
2,313.74
190.43
95.22
12.37
29.68
27.39
57.56
67.26
2.92
48.59
4.33
7.38
137.27
233.21
215.43
27.53
15.23
29.66
12.65
22.05
0.72
112.85
0.60
4.17
297.25
6,461.08
73.90
30.13
6.10
110.13
225.46
5,726.40
183.26
21.24
75.01
279.51
60
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Significant Accounting Policies
Schedule ‘N’
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 pr inciples 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 accr ual 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; depreciation
on Development Rights has been provided in propor tion of oil production achieved; Premium on leasehold land is amor tised
over the period of lease; and cost of Jetty is amortised over the period of agreement so however that the aggregate
depreciation provided to date is not less than the aggregate rebate availed by the Company.
C. Foreign Currency Transactions
a)
Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the
transaction.
b) Monetar y items denominated in foreign currencies at the year end and not covered by forward exchange contracts are
translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of
transaction as increased or decreased by the propor tionate difference between the forward rate and exchange rate on the
date of transaction, such difference having been recognised over the life of the contract.
c) Non monetar y foreign currency items are carried at cost.
d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit
or loss account except in cases where they relate to the acquisition of fixed assets in which case they are adjusted to the
carr ying cost of such assets.
D.
Investments
a)
Long ter m investments and unquoted current investments are carried at cost. Current investments are carr ied at the lower
of cost and quoted/fair value, computed categor y wise.
b) Cost is arrived at by applying specific identification method.
E.
Inventories
Inventor ies are valued at cost except for finished goods and by-products. Finished goods are valued at lower of cost or market
value and byproducts 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.
H. Employee Retirement Benefits
Company’s contr ibutions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account. Gratuity and
Leave encashment benefit at the time of retirement are 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 ter ms and other considerations, except for rentals pertaining to the period
upto 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 Unincorporated joint venture with Oil and Natural Gas
Corporation Ltd. and Enron Oil and Gas India 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 per taining to the projects are capitalised.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
61
Notes on Accounts
Schedule ‘O’
1 .
2.
3.
4.
( a ) The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessar y.
( b ) Figures have been presented in ‘crores’ of r upees 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 past, sales include Inter divisional transfers of Rs. 2059.68 crores (Previous Year Rs. 1630.63 crores).
A sum of Rs.6.29 crores (net) (Previous Year Rs. 0.14 crore) included in ‘Manufacturing and Other Expenses’ represents net
pr ior period adjustments.
(a) Auditors’ Remuneration:
(Rs.in crores)
i)
Audit Fees
Tax Audit Fees
ii)
iii) For Cer tification and Consultation in finance and tax matters
iv) Expenses reimbursed
(b) Cost Auditor :
Audit Fees Rs. 0.03 crore (Previous Year Rs. 0.02 crore)
1995-96
0.62
0.18
0.35
0.06
1.21
1994-95
0.45
0.14
0.08
0.05
0.72
5.
(a) The Company has been advised that the computation of net profits for the purpose of Directors’ rem uneration 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 XlIl to the Companies Act, 1956.
(b) Directors’ Remuneration:
Salaries
i)
ii) Contribution to Provident Fund and Superannuation Fund
iii) Provision for Gratuity
iv) Perquisites
1995-96
0.79
0.11
0.09
0.37
1.36
(Rs.in crores)
1994-95
0.35
0.02
0.06
0.03
0.46
6.
7.
The income-tax assessments of the Company have been completed upto Assessment Year 1993-94. The total demand raised by
the Income-Tax Depar tment upto the said Assessment Year is Rs. 176.52 crores which is disputed. Based on the decisions of
the Appellate Orders and the interpretations of other relevant provisions, the Company has been legally advised that the demand
is likely to be either deleted or substantially reduced and hence the Taxation Reserve created in the past would be adequate
enough to meet the liabilities, if any.
The Company has been advised that no provision for taxation is necessary for the current financial year in view of admissible
reliefs under Income Tax Act.
Pre-Operative Expenses
(Rs. in crores)
(in respect of Projects upto 31st March 1996, to be capitalised).
Opening Balance
Add:
Preoperative expenditure transferred from Profit and Loss Account
Lease Expenses
General Expenses
Interest
Issue Expenses
Less: Capitalised during the year
Closing Balance
1995-96
195.40
1994-95
82.65
20.99
51.75
-
235.83
11.97
36.89
4.47
0.06
101.99
27.77
320.54
515.94
120.27
395.67
171.18
253.83
58.43
195.40
8.
9.
The Company has an investment of Rs.0.21 crore in the Share Capital, loan of Rs.13.43 crores and receivables on account of
sale of goods of Rs. 0.20 crore from Devti Fabrics Ltd., (DFL), a wholly owned subsidiar y company. The losses of DFL exceed its
paid-up Capital and Reser ves as on 31st March,1996. 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 ar ise.
The Department of Company Affairs, Government of India vide its Order dated 13th May,1996 issued under Section 211 (4) of
the Companies Act,1956 has exempted the Company from publication of cer tain infor mation in the Profit and Loss Account
under paras 3 (i) (a), 3 (ii)(a) and 3 (ii) (b) of Part II of Schedule Vl to the Companies Act, 1956.
10. Fixed assets taken on lease amount to Rs.378 24 crores. Future obligations towards lease rentals under the lease agreements
as on 31st March,1996 amount to Rs.171.53 crores.
11.
(a)
In view of the Accounting Standard on “Accounting for the Effects of Changes in Foreign Exchange Rates” (AS-11) issued
by the Institute of Chartered Accountants of India, being mandatory with effect from 1st April 1995, foreign currency
transactions are translated as per the accounting policy referred to in Item C (b) of Schedule ‘N’. Consequent to the
change, profit for the year is higher by Rs. 5.79 crores.
(b)
In view of the Accounting Standard referred to in (a) above the expense on account of exchange difference on outstanding
forward exchange contracts to be recognised in the Profit and Loss Account of subsequent accounting periods aggregate
to Rs. 3.50 crores.
62
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Notes on Accounts
Schedule ‘O’ (Contd.)
12. Hither to, depreciation on Jetty was provided under straight line method at the rate and in the manner prescr ibed in Schedule
XIV to the Companies Act, 1956. The basis of depreciation has now been changed retrospectively from the date of constr uction
of Jetty on the basis indicated in Item B(b) of Schedule N. Consequent to the change there is an additional depreciation charge
for previous years of Rs.1.46 crores which is included in the depreciation for the year.
13.
In view of the Accounting Standard on “Accounting for Retirement Benefits in the Financial Statement of Employers” (AS-15)
issued by the Institute of Chartered Accountants of India, being mandator y with effect from 1 st April, 1995 the Company has
made provision for leave encashment benefit on retirement aggregating to Rs. 3.40 crores.
As at
31st March,1996
(Rs.in crores).
As at
31st March,1995
14. Contingent Liabilities
(a) Estimated amount of contracts remaining to be executed
on capital accounts and not provided for
(b) Outstanding guar antees furnished to Banks and Financial
Institutions including in respect of Letters of Credit
(c) Guarantees to Banks and Financial Institutions against
credit facilities extended to third par ties 221.61 14.27
(d) Liability in respect of bills discounted with Banks
(e) Uncalled liability on par tly paid Shares/Debentures
(Rs. 33,750) .
(f) Claims against the Company/disputed liabilities not
acknowledged as debts
1889.98
1725.10
81.33
----
47.27
15. Licensed and Installed Capacity
Licensed Capacity
Installed Capacity
(a) Polyester Filament Yar n/Polyester Chips
(b) Polyester Staple Fibre/Polyester Chips
(c) Man-made 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 Terepthalic Acid
(g) Linear Alkyl Benzene
Ethylene
(h)
(i)
(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)
(ii) Ethylene Glycol (Non-Fibre)
(iii) Carbon Dioxide
Ethylene Oxide
(k) High/Linear Low Density Polyethylene (Swing Plant)
(I) Poly Vinyl Chloride
(m) Polyster Filament Yarn
(n)
Paraxylene
(i) Chlorine
(ii) Caustic Soda (By Product)
(iii) Hydrogen (By Product)
(i)
(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) Mono Ethylene Glycol
(ii) Ethylene Oxide
(iii) Higher Ethylene Glycol (By-Product)
(i)
(ii) Propylene
(iii) Butadiene & Other C4s
(i) Naphtha
(ii) LPG
(iii) KeroseneM.T.
(iv) Diesel
Ethylene
(u) LDPE.
(v)
(i) Chlorine
(ii) Caustic Soda
(iii) Hydrogen
(i)
(j)
(o)
(p)
(q)
(r)
(s)
(t)
Unit
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.
M.T.
M.T.
M.T.
M.T.
180,000
M.T.
M.T.
M.T.
M.T.
M.T.
1995-96
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.
N.A.
396,000
468,000
11 700
1,400,000
56,000
100,000
12,500
100,000
10,000
12,500
200,000
25,000
25,000
800,000
390,000
240,000
720,000
110,000
----
360,000
150,000
708,000
800,000
20,160
1994-95
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.
N.A.
396,000
468,000
11,700
1,400,000
56,000
100,000
12,500
----
----
----
200,000
25,000
25,000
800,000
390,000
240,000
----
----
----
----
----
----
----
----
+
1995-96
32,300
75,000
24,094
23,040
714
28
200,000
80,000
U.l.
U.l.
U.l.
U.l.
U.l.
U.l.
80,000
10,000
12,500
----
----
----
160,000
135,000
60,000
U.l.
U.l.
U.l.
----
----
U.l.
U.l.
U.l.
U.l.
U.l.
----
----
----
----
----
----
----
----
----
----
----
----
----
----
N.A. - 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.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
+
706.73
1342.09
115.49
15.60
37.71
994-95
32,300
45,000
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.
U.l.
----
----
U.l.
U.l.
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
----
63
Notes on Accounts
Schedule ‘O’ (Contd.)
16. Production of Finished Products Meant for Sale
Fabrics
Polyester Filament Yar n
Polyester Staple Fibres
PTA
LAB
Ethylene Glycol
PVC
PE
Crude Oil
Unit
Mtrs. in Lacs
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
1995-96
492.44
104,522
93,046
65,726
75,826
52,924
186,511
191,324
181,103
1994-95
474.95
94,380
92,556
86,335
80,508
54,811
186,597
166,250
43,719
17. Value of Imports on C.l.F. basis in respect of
(a) Raw Materials
(b) Stores and Spares, Dyes and Chemicals
(c) Capital goods
18. 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 Know-how & Engineering Fees
Euro Bond & other expenses
19. Value of Raw Materials Consumed
Impor ted
Indigenous
20. Value of Dyes, Chemicals, Catalysts,
Stores and Spares Consumed
Impor ted
Indigenous
21. Earnings in Foreign Exchange
Expor t of goods on FOB basis
Interest
Others
22. Remittance in Foreign Currency
on Account of Dividend
(Rs.in crores)
1994-95
808.58
67.80
386.30
54.38
2.64
318.62
53.97
1994-95
% of total
Consumption
73.32
26.68
1995-96
709.72
89.28
1,274.57
72.19
1.42
755.15
126.38
Rs.in
Crores
882.72
321.15
1995-96
Rs.in
% of total
Crores Consumption
81.62
1037.36
18.38
233.57
1,270.93
100.00
1,203.87
100.00
119.37
153.95
43.67
56.33
82.45
161.65
33.77
66.23
273.32
100.00
244.10
100.00
(Rs. in crores)
1995-96
1994-95
79.88
46.21
0.00
174.45
24.62
6.74
The Company has paid dividend in respect of shares held by Non-Residents
on repatriation basis. This inter-alia includes por tfolio investment and direct
investment, where the amount is also credited to Non-Resident External Account
(NRE A/c). The exact amount of dividend remitted in foreign currency cannot be
ascer tained. The total amount remittable in this respect is given herein below:
(a) Number of Non-resident share holders
(b) Number of Equity Shares held by them
(c)
(i) Amount of dividend paid (Gross)
Tax deducted at source: Rs.4.39 crs (Previous Year : Rs.2.51 crs.)
(ii) Year to which dividend relates
27,444
7,45,42,742
34.11
19,726
5,95,82,568
18.53
1994-95
1993-94
64
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Notes on Accounts
Schedule ‘O’ (Contd.)
23. Balance Sheet Abstract and Company’s General Business Profile
I .
Registration Details
Registration
Balance Sheet Date
N o .
31-03-96
II. Capital Raised during the year (Amount Rs. in crores)
19786
State Code
1 1
Public Issue
Nil
Bonus Issue
Nil
Rights Issue
Nil
Private Placement
200.00
III. Position of Mobilisation and Deployment of Funds (Amount Rs. in crores)
Total Liabilities
13,126.75
Sources of Funds
Paid-up Capital
658.23
Secured Loans
3,422.54
Application of Funds
Net Fixed Assets
9,232.87
Net Current Assets
1,940.97
Accumulated Losses
Nil
IV. Performance of Company (Amount Rs. in crores)
Tu rno ve r
7,786.34
Profit Before Tax
1,305.27
Earning per share
Rs.27.89
Total Assets
13,126.75
Reserves & Surplus
7,747.07
Unsecured Loans
1,298.91
Investments
1,952.91
Misc. Expenditure
Nil
Total Expenditure
6,905.44
Profit After Tax
1,305.27
Dividend
Rs. 6.00 per share
V. Generic Names of Three Principal Products of Company (as per monetary ter ms)
Item Code No (ITC Code)
Product Description
Item Code No (ITC Code)
Product Description
Item Code No (ITC Code)
Product Description
29172.00
Purified Terephthalic Acid (PTA)
540242.00
Polyester Filament Yarn (PFY)
390120.00
Polyethylene (PE)
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
D. Chaturvedi
Partner
R.J. Shah
Partner
D.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.S. Betrabet
Y.D. Patil
R.H. Ambani
N.H Ambani
M.L Bhakta
T. Ramesh U. Pai
Y.R Trivedi
}
}
}
Chairman
Vice Chairman &
Managing Director
Managing Director
Executive Directors
Nominee Directors
Directors
Mumbai
Dated: 27th May, 1996
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
65
V.M. Ambani
Secretar y
Statement pursuant to Section 212 of the Companies Act, 1956, relating to Company’s interest in subsidiary Companies.
Name of Subsidiar y Company
Devti Fabrics Ltd.
Reliance Industrial
Investments
and Holdings Ltd.
1.
The financial year of the Subsidiar y
Companies ended on
31st March, 1996
31st March, 1996
2. Date from which they become subsidiar y
30th September, 1985
30th December, 1988
companies
3.
a. Number of shares held by Reliance
Industr ies Limited with its nominees
in the subsidiar ies at the end of the
financial year of the subsidiary
fully paid-up companies.
b.
Extent of interest of holding company
at the end of the financial year of
the subsidiar y companies.
4.
The net aggregate amount of the subsidiar y
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 1996
For the previous financial years
of the subsidiar y companies since
they became the holding Company’s
subsidiaries
b. Dealt with in holding company’s accounts:
i)
ii)
For the financial year ended
31st March, 1996
For the previous financial years of
the subsidiar y Companies since they
became the holding Company’s
subsidiaries
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
100 %
100 %
(Rs. 646.70 Lakhs)
Rs. 0.57 Lakh
(Rs. 756.10 Lakhs)
Rs. 149.69 Lakhs
NIL
NIL
NIL
NIL
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
D. Chaturvedi
Par tner
R.J. Shah
Par tner
Mumbai
Dated: 27th May, 1996
D.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.S. Betrabet
Y.D. Patil
R.H. Ambani
N.H Ambani
M.L Bhakta
T. Ramesh U. Pai
Y.R Trivedi
}
}
}
Chairman
Vice Chairman &
Managing Director
Managing Director
Executive Directors
Nominee Directors
Directors
V.M. Ambani
Secretar y
66
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Cash Flow Statement Annexed to the Balance Sheet
for the Period April 1995 - March 1996
1995-1996
Rs.
Rs.
(Rs. in crores)
1994-1995
Rs.
Rs.
A. Cash Flow from Operating Activities
Net Profit after tax as per P & L Account
Adjusted for
Net Prior Year Expenses
Net Profit before tax and extraordinar y items
Adjusted for
Depreciation
Effects of exchange rate change
Profit on Sale of Investments/Dividend Income
Interest/Other Income
Interest Expenses
Operating Profit before working Capital Changes
Adjusted for
Trade & Other Receivables
Inventories
Tr ade Payables
Cash generated from operations
Interest Paid
Cash Flow before extraordinary items
Net Pr ior Year Expenses
Net Cash from Operating Activities
B. Cash Flow from Investing Activities
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments
Sale of Investments
Movement in Loans
Interest Income
Dividend Income
Net Cash used in Investing Activities
C. Cash Flow from Financing Activities
Proceeds from issue of Share Capital (Net)
Increase in Cash & Bank Balance on Amalgamation
Proceeds from Long Ter m Borrowings
Repayment of Long Ter m Borrowings
Short term loans
Dividends Paid
Effects of exchange rate change
Net Cash used in Financing Activities
Net increase in Cash and Cash Equivalents (A+B+C)
Opening Balance of Cash and Cash Equivalents
Closing Balance of Cash and Cash Equivalents
Mumbai
Dated: 27th May,1996
Auditors’ Report
278.24
1.97
(140.04)
(165.43)
279.51
208.54
(77.92)
(131.86)
336.51
13.71
(137.01)
(113.27)
110.13
42.50
(97.05)
44.18
1,305.27
6.29
1,311.56
210.07
1,521.63
(10.37)
1,511.26
(308.89)
1,202.37
(6.29)
1,196.08
(2,384.73)
1.96
(1,509.18)
1,575.45
439.70
74.98
85.05
(1,716.77)
209.75
0.00
1,754.24
(209.43)
156.89
(229.35)
27.11
1,709.21
1,188.52
366.79
1,555.31
1,064.85
0.14
1,064.99
254.25
1,319.24
(1.24)
1,318.00
(382.82)
935.18
(0.14)
935.04
(2,605.08)
11.27
(4,721.33)
4,787.16
31.15
157.89
76.62
(2,262.32)
1,328.65
48.12
296.26
(333.81)
393.55
(133.07)
(1.97)
1,597.73
270.45
96.34
366.79
For and on behalf of the Board
A. D. Ambani
Managing Director
We have ver ified the attached Cash Flow Statement of Reliance Industries Limited., derived from audited financial statements and
the books and records maintained by the Company for the Years ended 31 st March,1996 and 31 st March,1995 and found the same
in agreement therewith.
For Chaturvedi & Shah
Char tered Accountants
D. Chaturvedi
Par tner
Mumbai
Dated 27th May,1996.
For Rajendra & Co.
Char tered Accountants
R. J. Shah
Par tner
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
67
Directors’ Report
To the Members,
Directors
Shri Alok Agarwal retires by rotation and being eligible offers
himself for re-appointment.
Your Directors present the 10th Annual Report together with the
Audited Statement of Accounts for the year ended 31st March, 1996.
Personnel
Financial Results
Profit before tax
Less: Provision for taxation
Profit after tax
Less: Shor t provision of tax
for the earlier year
Add: Balance in Profit & Loss
Account -
Less: a.
Transfer to
(Rs. in lacs)
The Company has not paid any remuneration attracting the
provisions of Companies (Par ticulars of Employees) Rules,1975
read with Section 217(2A) of the Companies Act,1956. Hence,
no information is required to be appended to this repor t in this
1995-96
685.28
6.00
679.28
0.19
679.09
149.69
828.78
1994-95
regard.
647.16
60.00
587.16
4.01
583.15
172.31
755.46
Conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo
Being an investment Company, there are no particulars fur nished
in this repor t 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 ear nings
or outgo during the year.
Deposits
General Reserve
70.00
b.
c.
Interim Dividend
678.52
Proposed Dividend
----
60.00
----
545.77
748.52
605.77
The Company has not accepted any deposit from the public.
Hence, no information is required to be appended to this repor t
in ter ms of Non-Banking Financial Companies (Reserve Bank)
Directions,1977.
Balance carried forward to
Auditors
Balance Sheet
80.26
149.69
Income
During the year, the Company has received dividend income of Rs.
672.05 lacs from investments.
Dividend
The Directors had approved payment of an interim dividend of Re.
0.46 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, 1996, aggregating to Rs.678.52 lacs. This dividend will
be fully adjusted against final dividend to be declared at the ensuing
Ann ual General Meeting for the financial year ended 31st
March,1996.
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. 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.
For and on behalf of the Board
Alok Agarwal
S. Seth
Sandeep Junnarkar
}
Directors
Mumbai
Dated: 6th May, 1996
68
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Auditors’ Report
To,
The Members of Reliance Industrial Investments and Holdings
Limited. We have audited the attached Balance Sheet of Reliance
Industr ial Investments and Holdings Limited as at 31st March,
1996 and the Profit and Loss Account of the Company for the
year ended on that date annexed thereto and repor t that:
1.
As required by the Manufactur ing and Other Companies
(Auditors’ Repor t) Order,1988 issued by the Company Law
Board in ter ms 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.
Fur ther to our comments in the Annexure referred to in
paragraph 1 above, we repor t that:
(a) We have obtained ail the infor mation and explanations
which to the best of our knowledge and belief were
necessar y 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 Repor t are in agreement with the
books of account.
Annexure to the Auditors’ Report
Referred to in Paragraph 1 of our Repor t of even date
As the Company had no Fixed Assets during the year,
Clauses 4(A)(i) and (ii) of the said Order are not applicable.
(d)
i)
ii)
In our opinion and to the best of our info rmation and
according to the explanations given to us, the said Balance
Sheet and Profit and Loss Account read together with the
n o t e s t h e r e o n , g i ve t h e i n f o r m a t i o n r e q u i r e d by t h e
Companies Act,1956, in the manner so required and give a
true and fair view:
in so far as it relates to the Balance Sheet of the state of
affairs of the Company as at 31st March, 1996 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
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
Rajesh D. Chaturvedi
Partner
Mumbai
Dated: 6th May,1996
R.J. Shah
Partner
9.
According to the information and explanations given to us,
no undisputed amounts payable in respect of Income-Tax,
WealthTax, Sales-Tax, Excise Duty and Customs Duty were
outstanding as at 31 st March,1996 for a period of more
than six months from the date they became payable.
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.
10.
In o ur opinion and accord ing to the info r m at i on a nd
ex p l a n a t i o n s g i ve n t o u s , n o p e r s o n a l ex p e n s e s o f
employees or Directors have been charged to revenue
account.
The Company has received interest free unsecured loans
from the holding Company. It has not taken any other loans,
secured or unsecured, from companies, fir ms and other
par ties as listed in the register maintained under Section
301 of the Companies Act, 1956, or from companies under
the same management within the meaning of Section
370(1B) of the Companies Act, 1956. The ter ms and
conditions of the above loan are not, in our opinion, prima-
facie prejudicial to the interests of the Company.
The Company has not g ranted any loans, secured or
unsecured to companies, fir ms, 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, par ties are generally regular both in
repaying the pr incipal amounts and payment of interest
whenever stipulated.
In our opi nion and according to the info r m ation and
explanations given to us, the Company has not accepted
any deposits from the public.
In our opinion the Company has an inter nal audit system
commensurate with its size and the nature of its business.
According to the infor mation and explanations given to us,
the provisions of the Employees’ Provident Fund and
Miscellaneous Pro visions Act, 1952 and the Employees’
State Insurance Act, 1948 are not applicable to the Company.
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
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
Rajesh D. Chaturvedi
Partner Partner
Mumbai
Dated: 6th May, 1996
R.J. Shah
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
69
1.
2.
3.
4.
5.
6.
7.
8.
Balance Sheet as at 31 st March, 1996
Sources of Funds:
Shareholders’ Funds
Capital
Reser ves and Sur plus
Loan Funds
Unsecured Loans
Total
Application of Funds:
Investments
Current Assets, Loans and Advances
Current Assets
Sundr y Debtors
Cash and Bank Balances
Loans and Advances
‘A’
‘B’
‘C’
‘D’
‘E’
Less: Current Liabilities and Provisions
‘F’
Current Liabilities
Provisions
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
14750.44
475.42
14750.44
474.85
15225.86
63145.15
78371.01
15225.29
28130.35
43355.64
78042.69
42442.64
3.98
14.56
18.54
382.61
401.15
5.79
67.04
72.83
----
1194.16
1194.16
331.29
1525.45
5.64
606.81
612.45
Net Current Assets
Total
328.32
78371.01
913.00
43355.64
Notes on Accounts
‘I’
As per our Repor t of even date
For and on behalf of the Board
For Chatur vedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Par tner
Mumbai
Dated: 6th May,1996
R.J. Shah
Par tner
V.M. Ambani
N.M. Sanghavi Directors
J.B. Dholaki
70
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Profit and Loss Account for the year ended 31st March, 1996
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
Income
Income on Investments
Interest received
(Tax deducted at source Rs. 0.03 lac,
previous year Rs. Nil)
Commission & Brokerage
Schedule
‘G’
Expenditure
Establishment & Other Expenses
`H’
Profit before tax
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 Reser ve
Inter im Dividend paid (subject to tax)
Proposed Dividend (subject to tax)
70.00
678.52
----
Balance carried to Balance Sheet
Notes on Accounts
‘I’
683.07
6.01
----
689.08
3.80
685.28
6.00
679.28
0.19
679.09
149.69
828.78
748.52
80.26
60.00
----
545.77
573.69
74.73
3.81
652.23
5.07
647.16
60.00
587.16
4.01
583.15
172.31
755.46
605.77
149.69
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Par tner
Mumbai
Dated: 6th May,1996
R.J. Shah
Par tner
V.M. Ambani
N.M. Sanghavi Directors
J.B. Dholaki
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
71
Schedules forming part of the Balance Sheet
Schedule ‘A’
Share Capital
Authorised:
149990000 Equity Shares of Rs.10/- each
10000 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)
Note :Refer Note of Schedule ‘C’ in respect of option on
unissued share capital.
Schedule ‘B’
Reserves and Surplus
General Reser ves
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Profit and Loss Account
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
14999.00
1.00
15000.00
14750.44
14750.44
14999.00
1.00
15000.00
14750.44
14750.44
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
325.16
70.00
265.16
60.00
395.16
80.26
475.42
325.16
149.69
474.85
Schedule ‘C’
Unsecured Loans
a. Unsecured loans (from holding Company)
b. Zero Coupon Convertible Unsecured Redeemable
Debentures of Rs. 5000/- each
As at
31st March, 1996
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
Rs.
----
63145.15
*
63145.15
28130.35
----
2 8 1 3 0 . 3 5
*
The Company may give at its option a three months notice to the Debentureholders to opt to convert the Debentures into Equity
Shares at par any time after the expiry of 15 years, from the respective dates of allotment of such Debentures. In the event of the
option not being granted by the Company or debentureholders not exercising their option to convert, the Debentures will be
redeemed at par on the expiry of 25 years Commencing from the said dates of allotment.
72
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Balance Sheet
Schedule ‘D’
Investments (Valued, Verified & Certified by Management)
(A) Long Term Investments
Quoted:
Equity Shares - Fully paid-up
As at
31st March, 1996
Rs.
(Rs. in crores)
As at
31st March, 1995
Rs.
18940162 Larsen & Toubro Ltd. of Rs. 10/- each
29948.67
13139.72
(13067712)
882370 Kothari Sugars and Chemicals Ltd. of Rs.10/- each
#95796000 Reliance Petroleum Ltd. of Rs.10/- each
6839078 BSES Ltd. of Rs.10/- each
(-)
337.30
9579.60
11284.48
Equity Shares - Partly paid-up
#95796000 Reliance Petroleum Ltd. of Rs.10/- each,
4789.80
(-) Rs.5/- paid-up
Debentures - Partly paid-up
337.30
9579.60
----
----
#95796000 Secured Triple Option Conver tible Debentures
14369.40
9579.60
(TOCDs) of Reliance Petroleum Ltd. of Rs. 40/- each,
Rs.15/- paid-up
Unquoted:
Equity Shares - fully paid-up
22900 Obser ver (India) Ltd. of Rs.10/- each
1700 Far vision Securities Private Ltd.
(-) of Rs. 100/- each
Calls in Advance
3.79
9.35
Pending Adjustment towards Shares/TOCDS of Reliance
Petroleum Ltd., being promoter’s contribution
7184.70
Total (A)
77507.09
( B) Current Investments
Quoted:
Equity Shares - Fully paid-up
1250 Maneklal Harilal Mills and Industries
(-) Ltd. of Rs.10/- each
37200 HDFC Bank Ltd. of Rs. 10/- each
(-) Nir ma Ltd. of Rs.10/- each
(17800)
---- Global Trust Bank Ltd. of Rs.10/- each
(34500)
Debentures - Partly paid-up
1250 14% Par tly Conver tible Debentures of
(-) Maneklal Harilal Mills and Industries Ltd.
Of Rs. 37.50 each. Rs.25/- paid-up
1250 14% Non-Conver tible Debentures of
(-) Maneklal Har ilal Mills and Industries Ltd.
Of Rs. 45/- each, Rs. 22.50 paid-up
Unquoted-Fully Paid-up:
Bonds - Taxable
40000 13% Secured Redeemable, National Hydroelectr ic
(-) Power Corporation Ltd. of Rs.1000/- each
16000 15.5% Secured Redeemable, Nuclear Power
(-) Corporation of India Ltd. of Rs. 1000/- each
Carried Forward
0.47
3.72
----
----
0.31
0.28
378.85
151.97
535.60
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
3.79
----
9579.60
42219.61
----
----
19.58
3.45
----
----
----
----
23.03
73
Schedules forming part of the Balance Sheet
Schedule ‘D’ (Contd.)
Brought Forward
Share Application Money:
HDFC Bank Ltd.
2000000 Equity Shares of Rs. 10/- each
Total (B)
Total (A+B)
As at
31st March,1996
(Rs. in Lacs)
As at
31st March, 1995
Rs.
535.60
––
535.60
78042.69
Rs.
23.03
200.00
223.03
42442.64
#
The Company’s investment in Reliance Petroleum Ltd. is towards promoters’ contr ibution. This is subject to lock in period of five
years from the date of commercial production. The Company has also given an undertaking to Financial Institutions not to
dispose of the said holding, till the loans granted by them to Reliance Petroleum Ltd. is outstanding.
Aggregate Value of
Quoted Investments
Unquoted Investments
Schedule ‘E’
Current Assets, Loans and Advances
Unsecured - (Considered Good)
Current Assets
Sundr y Debtors (subject to confir mation)
Over six months
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
Schedule ‘F’
Current Liabilities and Provisions
Current Liabilities
Other Liabilities
Provisions
For Taxation
Proposed Dividend (Subject to tax)
As at 31st March,1996
Book Value Market Value
Rs.
Rs.
As at 31st March,1995
Book Value Mar ket Value
Rs.
Rs.
88162.36
70314.03
7728.66
78042.69
86780.10
32659.25
9783.39
42442.64
As at
31st March,1996
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
0.04
4.52
10.00
59.59
–
323.02
3.98
–
0 07
1194.09
––
14.56
1194.16
35.67
100.00
195.62
382.61
401.15
331.29
1525.45
As at
31st March,1996
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
5.79
5.64
67.04
––
61.04
545.77
67.04
72.83
606.81
612 45
74
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Profit & Loss Account
Schedule `G’
1995-96
(Rs. in Lacs)
1994-95
Rs.
Rs.
Rs.
Rs.
Income on Investments
Dividend
From Long Ter m Investments
From Current Investments
(Tax deducted at source Rs. 166.16 lacs,
previous year Rs.132.32 lacs)
Interest
From Current Investments
(Tax deducted at source Rs. 6.14 lacs,
previous year Rs. Nil)
Profit/Loss on Sale of Investments (Net)
From Long Ter m investments
From Current Investments
Schedule `H’
Establishment & Other Expenses
Salar y, Wages and Bonus
Legal & Professional charges
Filing Fees
Miscellaneous Expenses
Brokerage paid
Other Administrative Expenses
Auditors’ Remuneration
Audit Fees
Tax Audit Fees
Schedule ‘I’
Notes on Accounts
672.05
––
535.36
0.01
672.05
535.37
32.79
––
(129.31)
107.54
12.85
25.47
(21.77)
683.07
1995-96
Rs.
Rs.
Rs.
0.03
0.26
1.00
0.50
1.85
0.15
0.01
0.29
1.50
3.80
0.06
2.22
1.00
0.50
38.32
573.69
(Rs. in Lacs)
1994-95
Rs.
1.28
––
0.01
2.28
1.50
5.07
1.
Significant Accounting Policies:
a) Basis of Preparation of Financial Statements
The financial statements have been prepared under the histor ical cost convention, in accordance with the generally accepted
accounting pr inciples and the provisions of the Companies Act,1956 as adopted consistently by the Company.
b)
Investments
i)
Long term investments and unquoted current investments are carried at cost. Current investments are carried at the
lower of cost and quoted/fair value, computed category wise.
ii) Cost is arr ived at by applying specific identification method.
2.
The previous year’s figures have been rewor ked, regrouped, rearranged and reclassified wherever necessary.
As at
31 st March,1996
(Rs. in Lacs)
As at
31 st March,1995
(Rs. in Lacs)
3. Contingent Liabilities
Uncalled liabilities on par tly paid shares/debentures
21554.54
28738.80
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.
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
75
Schedule ‘I’ (Contd.)
5.
Additional infor mation as required under Par t IV of Schedule Vl to the Companies Act,1956.
Balance Sheet Abstract and Company’s General Business Profile:
1. Registration Details:
Registration No.
State Code
Balance Sheet Date
41081
11
31st March, 1996
2. Capital raised during the year:
(Rs. in Lacs)
Public Issue
Rights Issue
Bonus Issue
Private Placement
3.
Position of Mobilisation and Deployment of Funds:
Total Liabilities
Total Assets
Sources of Funds:
Paid up Capital
Reser ves & Sur plus
Secured Loans
Unsecured Loans
Application of Funds:
Net Fixed Assets
Investments
Net Current Assets
Miscellaneous Expenditure
Accumulated Losses
––
––
––
––
(Rs. in Lacs)
78371.01
78371.01
14750.44
475.42
––
63145.15
78042.69
328.32
––
––
4.
Performance of Company:
(Rs. in Lacs)
Turnover/Income
Total Expenditure
Profit before Extraordinar y item and taxation
Profit/(Loss) before tax
Profit/(Loss) after tax
Earnings per Share (Rs.)
Dividend Rate
5. Generic Names of principal products, services of the Company:
Item Code No.
Product Descr iption
689.08
3.80
685.28
685.09
679.09
0.46
4.60 %
N.A.
N.A.
As per our Repor t of even date
For and on behalf of the Board
For Chatur vedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Par tner
Mumbai
Dated: 6th May,1996
R.J. Shah
Par tner
76
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Alok Agarwal
S. Seth
Directors
Sandeep Junnarkar
Directors’ Report
To the Members,
Your Directors present the 12th Annual Report together with
the Audited Statement of Accounts for the Financial year ended
31 st March, 1996
Operations
The Company had announced voluntar y retirement scheme as
a p p r o ve d b y T h e C h i e f C o m m i s s i o n e r o f I n c o m e - Ta x ,
Maharashtra, and it has received overwhelming response.
The Company has incurred a loss of Rs.646.70 Lacs during
the year under review as against profit of Rs.78.03 Lacs in the
previous year.
Dividend
In view of the carried forward losses, your Directors have not
recommended any dividend for the financial year under review.
S e c t i o n 2 1 7 ( 1 ) o f t h e C o m p a n i e s A c t , 1 9 5 6 , r e a d w i t h
Companies (Disclosure of Par ticulars in the Repor t of Board
of Directors) Rules, 1988 are given in the Annexure which forms
part of the Directors’ Report.
Deposits
The Company has not accepted any deposits from the Public.
Hence, no infor mation is required to be appended to this report.
Auditors
The Auditors of the Company, M/s. Rajendra & Co. and M/s.
Chatur vedi & Shah 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.
Directors
Appreciation
Shri. J.B. Dholakia retires by rotation and being eligible offers
himself for re-appointment.
Personnel
The Company has not paid any remuneration attracting the
provisions of Companies (Par ticulars 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 repor t
in this regard.
Conser vation of Ener gy, Tec hnology Absorption and
Foreign Exchange Earnings and Outgo
T h e p a r t i c u l a r s a s p r e s c r i b e d u n d e r S u b - s e c t i o n ( e ) o f
Your Directors wish to place on record their appreciation of the
devoted services rendered by the Executives, Staff and Workers
of the Company.
For and on behalf of the Board
V.M. Ambani
N. M. Sanghavi
J. B. Dholakia
Directors
Mumbai
Dated: 6th May, 1996.
Annexure to Directors’ Repor t
Par ticulars required under the Companies (Disclosure of Particulars in the Repor t of Board of Directors) Rules, 1988.
A. Conservation of Energy
The Company continued the energy conser vation measures under taken in the past, and tried to explore possibility of fur ther
energy conser vation measures.
(For m for disclosure of particulars with respect to conser vation of energy)
FORM - A
Par t - A
A. Power and Fuel Consumption
1 995-96
1994-95
1.
Electr icity
a.
Purchased
Units
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)
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
3,31,410
16,59,766
4.96
24,18,600
72,28,609
2.99
––
––
––
––
––
152
3,76,327
2,475.84
––
––
––
––
––
352
7,16,290
2,034.91
77
3.
Furnace Oil
Quantity (Kilo Ltrs.)
Total Amount
verage rate
4. Others/lnternal Generation
Quantity
Total Cost
Average Rate
Par t- B
B. Consumption per unit of Production
Electr icity (Units)
Furnace Oil
Coal **
Others
1995-96
–
1994-95
_
_
_
_
_
_
_
_
_
_
_
1995-96
1994 - 95
Yarn
(Kgs)
57.79
––
––
––
Fabrics
(RMtr.)
––
––
––
––
Yarn
(Kgs)
8.63
––
––
––
Fabrics
(RMtr.)
––
––
––
––
** Coal is used for steaming and heating the yarn for the pur pose of sizing. It has no link with the production.
FORM - B
(For m for disclosure of particulars with respect to Technology Absor ption)
The Company has no specific Research and Development Department. Hence infor mation to be given in For m - 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 Earnings and Outgo
i.
Activities relating to exports - Company is making a study to explore the foreign mar ket for export of Company’s products.
ii.
Foreign Exchange used and ear ned
..
..
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, 1996 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 Repor t) order, 1988, issued by the Company Law
Board in terms of Section 227 (4A) of the Companies Act,
1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2.
Fur ther 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
necessar y for the pur pose 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 and also for the year resulting in
the erosion of its net wo r th, the accounts of the
Company are prepared on going concer n basis.
Subject to the above, in our opinion and to the best of
our infor mation 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, 1996.
in so far as it relates to the Profit and Loss Account
of the ‘loss’ of the Company for the year ended on
that date. For Chaturvedi & Shah For Rajendra & Co.
Char tered Accountants Chartered Accountants H.P.
Chatur vedi R.J. Shah Partner PartnerMumbai Dated:
6th May, 1996.
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chatur vedi
Partner
Mumbai
Dated: 6th May, 1996.
R.J. Shah
Partner
78
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Annexure to Auditors’ Report
Referred to in Paragraph 1 of our Repor t of even date
1.
The Company has maintained proper records showing full
par ticulars including quantitative details and situation of
fixed assets. We are informed that most of the assets have
been physically verified by the management dur ing 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.
4.
5.
6.
7.
8.
9.
10.
11.
According to the information and explanations given to us,
the stocks of finished goods, stores, spare parts and raw
mater ials have been physically verified by the Management
dur ing the year. In our opinion, the frequency of such
verification is reasonable.
In our opinion, the procedures of physical ver ification 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 and the same
have been properly dealt with in the books of account.
In our opinion and on the basis of our examination of stock
and other records the valuation of stocks is fair and proper
a n d i s i n a c c o r d a n c e w i t h t h e n o r m a l l y a c c e p t e d
accounting pr inciples 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 loans,
secured or unsecured, from companies, fir ms or other
par ties as listed in the register maintained under Section
301 of the Companies Act, 1956, or from companies under
the same management within the meaning of Section
370(1B) of the Companies Act,1956. The ter ms and
conditions of the above loan are not, in our opinion, prima-
facie prejudicial to the interests of the Company.
The Compan y has not gr anted any loans, secured or
unsecured to companies, firms or other par ties listed in
t h e r e g i s t e r m a i n t a i n e d u n d e r S e c t i o n 3 0 1 o f t h e
Companies Act,1956 or to companies under the same
management within the meaning of Section 370(1 B) of
the Companies Act,1956.
In respect of loans and advances in the nature of loans
given by the Company, the par ties 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 info rmation 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 and sale of goods.
In our opinion and according to the info rmation and
explanations given to us, there are no transactions of
purchase of goods or materials and sale of goods materials
a n d s e r v i c e s m a d e i n p u r s u a n c e o f c o n t r a c t s o r
arrangement entered in the register maintained under
Section 301 and aggregating during the year to Rs.50,000/
- or more in respect of each par ty.
12. As explained to us, the Company has a regular procedure
for the determination of unser viceable or damaged stores,
raw materials and finished goods. Adequate provision has
been made in the accounts for the loss arising on the items
so deter mined.
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 infor mation 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 31 st March,1996 for a period of more
than six months from the date they became payable.
19. According to the infor mation 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
industr ial Company within the meaning of clause (O) of
s u b - s e c t i o n ( 1 ) o f S e c t i o n 3 o f t h e S i c k I n d u s t r i a l
Companies (Special Provisions)Act, 1985.
21.
In respect of trading activities, we are informed that the
Company does not have damaged goods lying with it at
the end of the year. Therefore, no provision for any loss is
required to be made in the accounts.
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Partner
Mumbai
Dated: 6th May, 1996.
R.J. Shah
Partner
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
79
Balance Sheer as at 31st March, 1996
Schedule
Rs.
Rs.
Rs.
Rs.
1995-96
(Rs. in Lacs)
1994-95
Sources Of Funds:
Shareholders’ Funds
Share Capital
Loan Funds
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
Sundr y Debtors
Cash and Bank Balances
Loans and Advances
‘A’
‘B’
‘C’
‘D’
Less: Current Liabilities and Provisions
‘E’
Current Liabilities
Profit and Loss Account
Notes on Accounts
Total
‘J’
21.01
1342.84
1363.85
21.01
676.00
697.01
225.61
171.03
226.50
160.70
54.58
65.80
9.32
–
11.19
20.51
13.67
34.18
127.71
127.71
40.97
13.09
29.15
83.21
17.21
100.42
225.31
225.31
(93.53)
(124.89)
1402.80
1363.85
756.10
697.01
As per our Repor t of even date
For and on behalf of the Board
For Chatur vedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Par tner
Mumbai
Dated: 6th May,1996
R.J. Shah
Par tner
80
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
V.M. Ambani
N.M. Sanghavi
Directors
J.B. Dholaki
Profit and Loss Account for the year ended 31st March, 1996
Schedule
Rs.
Rs.
Rs.
Rs.
1995-96
(Rs. in Lacs)
1994-95
Income
Sales (Net)
Other Income
Variation in Stock
Expenditure
Purchases
Manufactur ing and Other Expenses
Interest
Depreciation
‘F’
‘G’
‘H’
‘I’
Profit/(Loss) for the year
Add: Balance brought forward from last year
Balance carried to Balance Sheet
Notes on Accounts
‘J’
122.10
2.75
(30.86)
83.54
646.63
–
10.52
314.42
467.34
(13.71)
93.99
768.05
–
648.81
11.70
29.51
740.69
(646.70)
(756.10)
(1402.80)
690.02
78.03
(834.13)
(756.10)
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Par tner
Mumbai
Dated: 6th May,1996
R.J. Shah
Par tner
V.M. Ambani
N.M. Sanghavi
Directors
J.B. Dholaki
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
81
Schedules forming part of the Balance Sheet
Schedule ‘A’
Share Capital
Authorised:
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 Industr ies Limited, the Holding Company
As at
31st March,1996
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
Rs.
25.00
21.01
21.01
25.00
21.01
21.01
(Rs. in Lacs)
Gross Block
Depreciation
NetBlock
Addi- Deduc- As at
tions 31.3.96
tions
As at For the Wr itten
Back
year
1.4.95
As at
31.3.96
As at
31.3.96
As at
31.3.95
–
–
–
–
–
–
–
–
–
27.48
6.85
0.92
– 174.59
144.77
8.69
–
17.23
6.16
0.58
–
–
–
7.77
19.71
20.62
153.46
21.13
29.82
6.74
10.49
11.07
0.03
2.86
1.41
0.15
0.02
1.54
1.32
0.86
3.44
1.50
0.18
0.17
1.51
1.93
–
0.01
0.01
–
–
0.01
–
1.48
2.80
0.01
0.89 225.61
160.70
10.52
0.19
171.03
54.58
65.80
332.94 226.50
401.55
29.51
270.36
160.70
65.80
As at
1.4.95
27.48
174.59
17.23
2.89
4.30
0.01
226.50
559.44
Schedule ‘B’
Fixed Assets
DESCRIPTION
Buildings
Plant & Machiner y
Electr ic Installation
Factor y Equipment
Furniture & Fixture
Vehicles
Total
Previous Year
Schedule ‘C’
Current Assets
Inventories (at cost or market value whichever
is lower except otherwise stated)
Stores, spares, dyes & chemicals
Raw materials
Stock-in-process
Finished goods
Others
Sundry Debtors (Unsecured)
Others: Considered good
Cash and Bank Balances
Cash on hand
Balance with Scheduled Banks:
In Current Accounts
In Fixed Deposit Account
As at
31st March,1996
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
Rs.
7.40
1.92
–
–
–
–
10.29
0.90
8.19
1.92
7.75
23.00
0.11
1.49
26.76
0.90
9.32
–
11.19
20.51
40.97
13.09
29.15
83.21
82
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedules forming part of the Balance Sheet
Schedule ‘D’
Loans and Advances
(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 ‘E’
Current Liabilities & Provisions
Current Liabilities
Sundr y Creditors
Other Liabilities
Interest accr ued but not due on loans
Schedules forming part of the Profift and Loss Account
Schedule ‘F’
Other Income
Processing charges
Profit on sale of assets
Interest received
Miscellaneous Income
Excess provision for expenses no longer required
As at
31st March,1996
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
----
13.67
----
----
13.67
3.57
12.82
0.53
0.29
17.21
As at
31st March,1996
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
84.54
43.17
––
127.71
1995-96
Rs.
––
––
0.17
2.58
––
2.75
4.51
220.75
0.05
225.31
(Rs. in Lacs)
1994-95
Rs.
18.75
434.41
1.04
8.73
4.41
467.34
Schedule ‘E’
Variation in Stock
Stock-in-Trade (at close)
Finished goods
Stock-in-process
Others
Stock-in-Trade (at commencement)
Finished goods
Stock-in-process
Others
As at
1995-96
(Rs. in Lacs)
As at
1994-95
Rs.
Rs.
Rs.
Rs.
––
––
––
23.00
7.75
0.11
––
30.86
(30.86)
23.00
7.75
0.11
27.79
15.78
1.00
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
30.86
44.57
(13.71)
83
Schedules forming part of the Profit and Loss Account
Schedule ‘H’
Reserves & Surplus
Manufacturing and Other Expenses
Raw Materials Consumed
Stock at commencement
Add: Purchases
Less: Stock at close
Manufacturing Expenses
Carriage inward
Stores and spare par ts
Dyes & Chemicals
Electr ic Power, fuel and water
Machiner y repairs
Labour, Processing and machinery hire charges
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
Retrenchment NRS Compensation
Ex-Gratia Wages
Sales and Distribution Expenses
Samples, Sales Promotion and Adver tisement Expenses
Brokerage and Commission
Packing Expenses
Freight and forwarding charges
Sales Tax
Establishment Expenses
Insurance
Rent
Rates and taxes
Other repairs
Travelling expenses
Payment to Auditors
General Expenses
Loss on sale of assets (Net)
Schedule ‘I’
Interest
Fixed Loans
Others
As at
31st March,1996
Rs.
Rs.
(Rs. in Lacs)
As at
31st March, 1995
Rs.
Rs.
1.92
----
1.92
1.92
----
1.25
----
20.45
----
----
14.11
178.68
192.79
1.92
----
190.87
0.06
5.42
0.11
79.67
0.11
2.29
21.70
87.66
113.50
195.27
43.73
8.07
367.42
79.50
0.31
0.20
0.16
----
0.39
2.01
----
1.18
0.33
0.30
0.35
6.93
0.55
61.23
18.33
54.79
----
612.22
329.62
0.05
3.03
6.02
2.63
13.75
1.06
25.48
3.59
1.10
0.54
0.44
0.25
0.35
8.91
----
11.65
646.63
1995-96
Rs.
----
----
----
15.18
648.81
1994-95
Rs.
5.86
5.84
11.70
84
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
Schedule ‘J’
Notes On Accounts
1.
Significant Accounting Policies
A. Basis of preparation of Financial Statements
i)
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 concer n basis.
ii)
The Company follows mercantile system of accounting and recognises significant items of income and expenditure on
accrual basis.
B. Fixed Assets and Depreciation
i)
Fixed assets are stated at acquisition cost less accumulated depreciation.
ii) 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. Inventories
i)
Raw Materials, Stores, Spares, Dyes & Chemicals are valued at cost.
ii)
Stock-in-process is valued at cost including related overheads.
iii) Finished Goods are valued at cost or market value, whichever is lower. Cost includes cost of production and expenses
incurred in putting the inventories in their present location and condition.
D. Sales
Sales is net of excise & sales tax collected from customers.
E. Employee/Retirement Benefits
i)
Company’s contr ibutions 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 and any shortfall is charged in the
year of payment to employees.
2.
The previous year’s figures have been rewor ked, regrouped, rearranged and reclassified wherever necessary.
3.
Auditors’ Remuneration
(a) Audit fees
(b) Tax audit fees
4. Contingent Liabilities
1995-96
(Rs. in Lacs)
1994-95
0.25
0.10
0.35
As at
0.25
0.10
0.35
(Rs in Lacs)
As at
31st March,
31st March,
1996
1995
Claims against the Company not acknowledged as debts
3.88
1.50
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
85
Schedule ‘J’ (Contd.)
5.
Licenced & Installed Capacity
(As cer tified by the Management)
Licenced Capacity
Installed Capacity
31.3.96
31.3.95
31.3.96
31.3.95
Spindles (Nos.)
6.
Production of finished products meant for sale
Blended Yar n
N.A.
UNIT
M.T.
7.
Value of imports on CIF basis
8.
Expenditure in foreign currency
N.A.
11816
11816
1995-1996
8
----
----
1994-1995
243
----
----
9. Quantitative Information
1995-1996
1994-1995
a) Opening Stock
Finished Stock (Yar n)
Stock in process(Yar n)
i)
ii)
iii) Others
b) Closing Stock
Finished Stock (Yar n)
Stock in process (Yarn)
i)
ii)
iii) Others
c)
Purchases
Fabrics
d) Sales
Yar n
Fabrics
e) Raw Material Consumed
Cotton
Fibre
Viscose
UNIT
Quantity
M.T.
18
M.T.
----
Quantity
26
18
Rs.in
Lacs
23.00
7.75
0.11
----
----
----
Rs.in
Lacs
27.79
5.78
1.00
23.00
7.75
0.11
Mtrs.in lacs
2.16
83.54
----
----
M.T.
Mtrs.in lacs
M.T.
M.T.
M.T.
26
2.16
----
----
----
34.38
87.72
----
----
----
251
----
104
142
32
314.42
----
55.23
119.36
16.28
10. Value of Raw Material Consumed
1995-1996
1994-1995
Indigenous
Rs.in %
of total
Lacs Consumption
----
----
Rs.in
Lacs
190.87
%of total
Consumption
100.00
11. Value of stores, spare parts
1995-1996
1994-1995
dyes & chemicals
Indigenous
Rs.in %
of total
Lacs Consumption
100.00
1.25
Rs.in
Lacs
5.53
%of total
Consumption
100.00
12. Earnings in foreign exchange
----
----
86
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
13. Additional infor mation as required under Par t IV of Schedule Vl to the Compaines Act, 1956.
Balance Sheet Abstract and Company’s General Business Profile:
1. Registration Details:
Registration No.
State Code
Balance Sheet Date
2. Capital raised during the year:
Public Issue
Rights Issue
Bonus Issue
Pr ivate Placement
3.
Position of mobilisation and deployment of funds:
Total Liabilities
Total Assets
Source of Funds:
Paid up Capital
Reser ves & Surplus
Secured Loans
Unsecured Loans
Application of Funds:
Net Fixed Assets
Investments
Net Current Assets
Miscellaneous Expenditure
Accum ulated Losses
4.
Performance of Company:
Turnover
Total Expenditure
Profit/(Loss) before tax
Profit/(Loss) after tax
Earnings per Share (Rs)
Dividend Rate
5. Generic Names of principal products, services of the Company:
Item Code No.
Product Descr iption
31593
11
31st March, 1996
(Rs. in lacs)
-
-
-
-
(Rs. in lacs)
1363.85
1363.85
21.01
-
-
1342.84
54.58
-
(93.52)
-
1402.79
(Rs. in lacs)
122.10
740.69
(646.70)
(646.70)
-
-
550953.00
Blended Yar n
As per our Repor t of even date
For and on behalf of the Board
For Chaturvedi & Shah
Char tered Accountants
For Rajendra & Co.
Char tered Accountants
H.P. Chaturvedi
Par tner
Mumbai
Dated: 6th May,1996
R.J. Shah
Par tner
V.M. Ambani
N.M. Sanghavi
Directors
J.B. Dholaki
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6
87
Reliance Industries Limited’s
Equity Shares are listed
on the stock exchanges in the following cities:
• Mumbai • Ahmedabad • Bangalore • Calcutta • New Delhi
• Madras • Cochin • Kanpur • Pune
as also with
The National Stock Exchange (NSE).
Symbol in Mumbai Stock Exchange is ‘RIL 325’
Symbol in National Stock Exchange is ‘RELIANCE EQ’
Global Depository Shares
are listed on the Luxembourg Stock Exchange
and traded on PORTAL System (NASDAQ, USA)
and SEAQ System (London Stock Exchange).
Symbol on SEAQ System is ‘RlDGq.LT’
Euro-Convertible Bonds
are listed on the Luxembourg Stock Exchange
and are traded on PORTAL System (NASDAQ, USA).
Your Local Investor Relations Centres
Telephone
Fax
Ahmedabad
(079)-657 8470/8021
(079)-6578070
Bangalore
Baroda
(080)-2259491
(080)-2254621
(0265)-329394
(0265)-329394
Calcutta (033)-266664 (033)-268580
Hyderabad
Jaipur
Jamnagar
Kanpur
Lucknow
Madras
Mumbai
(Andheri)
(City)
(040)-231561
(040)-231562
(0141)-318351
(0141)-319902
(0288)-75104
(0288)-555102
(0512)-210341
(0512)-210341
(0522)-271548/280329
(0522)-280288
(044)-8268292/8268425
(044)-8268426
(022)-8367015/16/
8350514/8214542
(022)-2004090/91 /208/
1428/78
(022)-8367019
(022)-2088165
New Delhi
(011)-6196551/7343
(011)-6886490
Pune
Rajkot
Surat
London
New York
(0212)-656978
(0212)-643885
(0281)-222137
(0281)-228159
(0261)-425062
(0261)-425062
0044(171)-600 5300
0044(171)-600 1757
001 (212)-688 5744
001 (212)-688 5213
Reliance
Industries Limited
Where growth is a way of life
Reliance Industries Ltd. Maker Chambers IV Nariman Point, Mumbai 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
90
R e l i a n c e I n d u s t ri e s L i m i t e d 2 2 n d A n n u a l R e p o r t 1 9 9 5 - 9 6