GROWTH IS LIFE !
RELIANCE INDUSTRIES LIMITED
Annual Report
1997-98
35(cid:223) (cid:224)
GROWTH IS LIFE !
What did Reliance
achieve in 1997-98?
Sales - Rs. 13,404 crores
(US $ 3,394 million)
Operating Profit (EBDIT) - Rs. 2,887 crores
(US $ 731 million)
Cash Profit (EBDT) - Rs. 2,383 crores
(US $ 603 million)
Net Profit - Rs. 1,653 crores
(US $ 418 million)
Compounded Annual Net Profit
growth over 5 years - 39%
Compounded Annual Earnings Per Share
growth over 5 years - 22%
What did the growth
in 1997-98 do for Reliance?
Resulted in Total Assets - Rs. 24,388 crores
(US $ 6,175 million)
Enhanced shareowner value for
2.2 million shareowners
India(cid:146)s largest private sector enterprise
1(cid:223) (cid:224)
GROWTH IS LIFE !
Page Contents
5
6
8
Performance Highlights
Chairman(cid:146)s Communication
Management Discussion and Analysis
Overall Review
Business Review
Polyester
Fibre Intermediates
Polymers
Polymers Intermediates
Chemicals
Textiles
Oil and Gas
Jamnagar Petrochemicals Complex
Value Creating Investments
Reliance Petroleum
Power
Telecom
Directors(cid:146) Report
Annexure to Directors(cid:146) Report
Auditors(cid:146) Report
International Accountants(cid:146) Report
Balance Sheet
Profit and Loss Account
Schedules Forming Part of
Balance Sheet and Profit & Loss Account
Cash Flow Statement
Reconciliation of Profit with
US GAAP
International Accounting Standards
21
23
29
32
34
35
36
61
63
66
Value Creation
Market Value Added (MVA)
Total Shareholders(cid:146) Return (TSR)
Documents of Subsidiary Companies
Investor Information
Company Information
67
93
96
These documents are subject to the approval of the shareholders at the ensuing Annual General Meeting.
4(cid:223) (cid:224)
GROWTH IS LIFE !
How has Reliance fared over the years ?
How has Reliance fared over the years ?
C o n s i s t e n t a n d r o b u s t g r o w t h
1997-98
(cid:146)96-97 (cid:146)95-96 (cid:146)94-95 (cid:146)93-94 (cid:146)92-93 (cid:146)91-92 (cid:146)90-91 (cid:146)89-90 1985
(Rs. in crores)
$ Mn
733
744
139
37
71
50
25
52
254
311
736
607
Sales
3,394 13,404 8,730 7,786 7,019 5,345 4,106 2,953 2,098 1,841
Total Income
3,479 13,740 9,020 8,058 7,331 5,555 4,222 3,005 2,106 1,857
Earnings Before Depreciation,
Interest and Tax (EBDIT)
731
2,887 1,948 1,752 1,622 1,159
Depreciation
Profit After Tax
169
667
410
337
278
418
1,653 1,323 1,305 1,065
255
576
929
280
322
Taxes paid to the Government
765
3,021 2,490 2,234 2,147 1,391 1,118
Equity Dividend %
Dividend Payout
Equity Share Capital
35
83
35*
327
236
932*
65
299
458
60
276
458
55
199
456
51
138
318
35
85
245
152
Reserves and Surplus
2,750 10,863 8,013 7,747 6,731 4,011 2,362 1,711
575
193
163
984
30
48
487
174
126
826
30
46
152
996
425
162
91
30
46
152
929
698
373
Net Worth
3,034 11,983 8,471 8,405 7,193 4,335 2,613 1,944 1,154 1,087
Gross Fixed Assets
5,043 19,918 14,665 11,374 8,390 5,132 4,641 4,314 2,186 1,999
Net Fixed Assets
3,791 14,973 11,173 9,233 6,585 3,600 3,368 3,338 1,483 1,469
Total Assets
6,175 24,388 19,536 15,038 11,529 8,121 6,083 4,880 2,712 2,553 1,046
Market Capitalisation
4,182 16,518 14,395 9,783 12,027 10,718 4,388 6,656 1,825
997
906
Number of Employees
17,375 16,778 14,255 12,560 11,873 11,944 11,940 11,666 11,355 9,066
1US$ = Rs. 39.495 (Exchange rate as on 31.3.1998)
K e y
i n d i c a t o r s
1997-98 (cid:146)96-97 (cid:146)95-96 (cid:146)94-95 (cid:146)93-94 (cid:146)92-93 (cid:146)91-92 (cid:146)90-91 (cid:146)89-90 1985
US$
Earnings Per Share - Rs.
0.45 17.6* 28.7
27.9
23.4
18.1
13.1
10.7
8.3
6.9
13.8
Cash Earning Per Share - Rs. 0.63 24.7* 37.6
35.2
29.5
26.1
24.5
23.4
19.7
16.6 21.1
Sales Per Share - Rs.
3.63 143.6* 189.6 169.9 153.9 168.1 166.9 194.1 138.0 121.1 141.0
Book Value Per Share - Rs.
3.25 128.3* 184.0 179.0 158.0 136.0 106.0 127.8
75.0
71.0 59.0
Debt : Equity Ratio
0.68:1 0.68:1 0.83:1 0.49:1 0.35:1 0.58:1 0.84:1 0.92:1 0.61:1 0.55:1 1.66:1
EBDIT/ Sales %
21.5
21.5 22.3
22.5
23.1
21.7
22.6
19.5
23.2
23.1 19.0
Net Profit Margin %
12.3
12.3 15.2
16.8
15.2
10.8
7.8
5.5
6.0
4.9
9.7
RONW %
21.2 21.2** 22.3
25.3
23.7
18.2
20.7
17.1
12.2
9.0
30.6
1 US$ = Rs. 39.495 (Exchange rate as on 31.3.1998)
* After bonus issue of 1:1
** Excluding CWIP and revaluation
5(cid:223) (cid:224)
GROWTH IS LIFE !
(cid:145)20 Years to Cherish(cid:146)
(cid:145)20 Years to Cherish(cid:146)
C h a i r m a n (cid:146) s
c o m m u n i c a t i o n
Twenty years have passed since we made our first
offering to the Indian public, with a public issue of
equity shares floated at par. We were a small company
then (cid:150) barely known outside the circle of our
influence. Our sales were Rs. 67 crores (US $ 8
million), our assets Rs. 33 crores (US $ 4 million)
and our net worth just Rs. 10 crores (US $ 1
million). Our entire market capitalisation at that time
was Rs. 10 crores (US $ 1 million).
Twenty years later, we are happy to say, we are India(cid:146)s
leading private sector company (cid:150) in terms of sales,
assets, net worth and gross, operational and net
profits. We are one of the world(cid:146)s most integrated
producers of petrochemicals.
Our asset base has increased to Rs.
24,388 crores (US $ 6,175 million)
during the period. Our shareholder base
was 58,000 shareholders then; it is 2.2
million now. Market capitalisation has
gone up to nearly Rs. 16,500 crores (US
$ 4,200 million).
We are extremely happy that those who
reposed faith and trust in us, supported
us in those early days, and stayed with us
through the good times and the tough
times, have shared in our prosperity in
equal measure.
Industries
The Qualitative Story
Reliance
registered 54%
growth in turnover at Rs. 13,404 crores
(US $ 3,394 million), and 25% growth in net profit
at Rs. 1,653 crores (US $ 418 million) this year. If
the numerical side of the Reliance story gives you
pleasure, look at the qualitative side as well.
We are the largest Indian producers in most of what
we make. We are bursting into the ranks of the top
ten (and top five selectively) of the world(cid:146)s largest
producers in all our products (cid:150) and we are doing all
this at margins which are attractive and which
provide for robust growth.
It is the way we have achieved this that makes the
Reliance growth story impressive. Customs tariffs
have dropped sharply in the last few years (cid:150) from 185
per cent for polyester yarn/fibre in 1991-92 to a
mere 30 per cent in 1997-98. Reliance has had to
compete with declining
the
imported material.
We have done so most spiritedly and aggressively:
Reliance continues to hold the largest market share
landed prices of
In 20 years:
From Rs. 10
crores to Rs.
16,500 crores.
From US $ 1
million to US
$ 4,200
million.
.......20 years
to cherish!
for these items in India. Reliance has successfully
demonstrated that its growth has come not from
licenses and protection but hard work and strategic
thinking.
What is particularly heartwarming is that Reliance is
a genuine and dynamic Indian success story in the
global markets. Our growth has come with home-
grown talent. Besides, we did this in markets which
didn(cid:146)t seem to exist when we went into production.
Each time we set up a greenfield capacity or
expanded in a big way, the general opinion seemed to
be that we were taking a huge risk. But with our
global size we were able to price more competitively.
When added to a high service standard, we delivered
value to the customer.
As we
actually
foresaw, Reliance
expanded the size of the market faster
than it would otherwise have been.
Reliance triggered faster consumption
in India and helped reduce the vast gap
compared with the global consumption
average of all our products. Our huge
belief in the strength and potential of
Indian market was vindicated
the
through the sustained and rapid growth
of our company.
Returns for the Investor
While the business of asset building,
market creation and profit generation
was taking place, we never lost sight of
one fact : that providing returns to the shareholder
had to be our first and most sacred responsibility.
The investors who applied in our public issue in 1977
have earned a 30% return on their investment till the
end of the last financial year. Since we made products
essentially for domestic consumption, it was a
satisfying case of the Indian shareholders funding
projects to service Indian customers; an instance of
Indian shareholders pooling their resources to build
assets for the nation.
What makes me proud
A number of things make me proud when I look
back. Figuring high on the list is the successful
commissioning and stabilisation of our operations at
Hazira - our first major step into the global
petrochemicals industry.
Hazira was a dramatic step forward. A number of
industry experts who have visited the complex feel
6(cid:223) (cid:224)
GROWTH IS LIFE !
that this is easily one of the most integrated
petrochemicals complexes in the world. In addition
to the integration, this is what we did right:
(cid:149) We absorbed various technologies successfully.
(cid:149) Each of the plants
is functioning at high
operating rates.
(cid:149) The efficiencies that we have reached can be
compared with the best companies the world
over.
(cid:149) Our cost of production is among the lowest in
the world.
To cap all this, we have already expanded capacities
from 1.5 million tonnes to 6 million tonnes per
annum. The commissioning of the Jamnagar complex
will take our capacity to 9 million tonnes per annum.
History in Jamnagar
Reliance Petroleum is setting up the world(cid:146)s largest
grassroots refinery in Jamnagar. The project revolves
around the Four P(cid:146)s: petrochemicals, plastics, power
and port. The refinery will help the Reliance group
capture greater value by integrating further towards
its primary raw material (cid:150) crude.
The crude will be refined by Reliance Petroleum (cid:150) in
which Reliance Industries and a
fully owned
subsidiary presently hold 39% of the equity. More
than 30% of the output of the refinery will be
captively consumed by the group.
The petroleum coke from the refining operation will
provide the feedstock for generating power. The port
will facilitate year-round movement of crude. When
it is fully operational, the Jamnagar complex will
emerge as a high point on the global energy map.
Outlook
Growth
is Life! We see India as a country
characterised by huge and deficit markets. We see
India as a land of opportunities for our people to
build globally competitive assets for the nation. We
see India as a reservoir of tremendous intellectual and
human capital, with its people impatient for growth
and change.
We are committed to the long term growth of our
country and our countrymen. It is our vision that
India will one day, and soon, rank among the leading
economic superpowers of the world. Reliance will
endeavour to be there in the forefront of all this
growth and development.
Shareholder Value
This brings me to Reliance(cid:146)s driving aim. We will
endeavour to add to the wealth of our shareowners.
By earning and reporting growth in our profits
through business cycles. By ensuring adequate
communication that will enable people to better
understand the real strengths of our company.
We don(cid:146)t just want you to register some income
through dividends on your holdings. Our goal is
overall shareholder value enhancement. All this
growth at Reliance will still not be good enough if it
does not translate into real prosperity for our family
of Reliance shareowners.
We are committed to making this happen. We are
committed to making you wealthy shareowners of
our company!
Dhirubhai H. Ambani
Chairman
7(cid:223) (cid:224)
GROWTH IS LIFE !
Management Discussion and Analysis
Management Discussion and Analysis
O v e r a l l R e v i e w
Reliance reported another year of satisfactory
performance, in an extremely challenging scenario
for the global petrochemicals industry, especially in
the context of the Asian economic crisis.
For the year ended 31st March, 1998, sales grew
by 54% from Rs. 8,730 crores (US $ 2,431 million)
to Rs. 13,404 crores (US $ 3,394 million). Sales
volume growth of 91% was achieved during the
period,
successful
commissioning of all new plants at the Hazira
Petrochemical complex.
result
the
of
as
a
Strong volume growth
During the period under review, production volume
increased nearly three times from 1.8 million tonnes
to 5.2 million tonnes. Lower product selling prices
resulted in strong domestic demand growth. Almost
the entire volume was sold in the domestic market,
in almost all
thereby enhancing market share
products.
During the period under review, the company
successfully commissioned a new 200,000 tonnes per
annum polyethylene plant, a new 120,000 tonnes per
annum mono ethylene glycol (MEG) plant, a 30,000
tonnes per annum polyester fibre fill (FF) plant and a
new 350,000 tonnes per annum purified terephthalic
acid (PTA) plant.
In addition, the capacity of the multifeed cracker
was increased from 500,000 tonnes per annum
tonnes per annum of ethylene.
to 750,000
facilities
Overall, seventeen new world-class
different
been
have
technologies
the past
2-3 years.
commissioned, with
in each case, over
The highest levels of safety standards have been
maintained during commissioning and production.
All technologies have been absorbed with ease, and
plants have reached rated capacities within a short
time. High product quality has been ensured,
resulting in consumer acceptance, both in India and
abroad.
With the commissioning of the multifeed cracker,
the company has eliminated its major risk of
procurement and logistics related to ethylene
the
and propylene, used
manufacture of polymers and fibre intermediates.
The company has entered into term contracts for
petrochemical naphtha (cid:150) the key feedstock for its
multifeed cracker, assuring quality and quantity for
optimum operations.
feedstocks
in
as
Domestic demand growth
The domestic demand for the polyester industry
(PFY and PSF) crossed one million tonnes per
annum, registering growth of around 29% over
1996-97. The domestic prices of both polyester
staple fibre and polyester filament yarn continued to
remain lower than cotton prices for the second year
in a row, leading to a further shift in consumption in
favour of polyester. The demand for PTA and MEG
tracked polyester demand, resulting in growth of
over 30%.
The domestic industry demand for all the three
polymers (PE, PP, PVC) increased from 1.54
million tonnes per annum to 1.81 million tonnes
per annum, recording growth of 18%. The
domestic demand for both PP and PE combined
recorded a growth of over 20%, while demand for
PVC grew by 10%. Substantially lower PP prices
led to a surge in domestic demand by over 38%.
As almost 30% of PP and PE applications overlap,
lower prices of PP led to a shift in domestic demand
from PE to PP.
implemented
The Oil and Gas business, being
through an unincorporated joint venture between
Reliance, Enron and ONGC to develop Panna,
Mukta and Tapti Oil and Gas fields, made substantial
progress in the implementation of development
plans. The production of Oil for the year 1997-98
was 141,000 tonnes while the Gas production from
Tapti fields, which commenced in June 1997, was
11,500 BBTU.
Stable operating margin
Operating margin remained stable at 19%. Operating
profit, before other income, increased by 54% to
Rs. 2,551 crores (US $ 646 million). Operating
margin stability was achieved despite
lower
international prices, primarily as a result of the
commissioning of the cracker, substantially lower
raw material prices in the second half of 1997-98,
and an enhanced focus on cost reduction and
productivity.
Other income, which primarily includes interest and
dividend income, increased by 16% to Rs. 336 crores
(US $ 85 million), owing to higher interest income
derived from larger cash balances and investments.
Interest expense increased from Rs. 170 crores (US $
47 million) to Rs. 504 crores (US $ 128 million) on
lower
increased borrowings
account of
and
8(cid:223) (cid:224)
GROWTH IS LIFE !
capitalisation of interest for projects, as a result of
commissioning of new plants at
the Hazira
Petrochemicals complex. Savings in interest costs
were however achieved by prepayment of high
cost debt, and greater control over working
capital management.
Depreciation increased from Rs. 410 crores (US
$ 114 million) to Rs. 667 crores (US $ 169 million),
as a result of commissioning of the new plants at the
Hazira Petrochemicals complex. During the year
under review, the company revalued plant and
machinery at its Patalganga and Naroda complex as
at 1st April, 1997. Consequently, there
is an
additional charge for depreciation during the year of
Rs. 793 crores (US $ 201 million) relating to
revalued assets, which has been withdrawn from
General Reserve.
Capital
the year was
Rs. 2,482 crores (US $ 629 million), which
for the
included the expenditure
primarily
Jamnagar Petrochemicals complex.
Profit before tax increased by 25% to Rs. 1,716 crores
(US $ 434 million) reflecting volume growth,
backward integration through commissioning of the
multifeed cracker,
improved
productivity. The gains were partially offset by lower
international prices, higher interest and depreciation
charge relating to commissioning of new plants at
the Hazira Petrochemicals complex.
expenditure during
lower costs, and
Profit after tax increased by 25% from Rs. 1,323
crores (US $ 368 million) to Rs. 1,653 crores (US
$ 418 million).
Resources and Liquidity
The company funds its long term and project related
financing requirements
from a combination of
internally generated cash flows and external sources.
During this year, Reliance refinanced its US $ 150
million syndicated loan, and obtained the tightest
pricing for any Indian private sector company.
Reliance issued sterling notes for 150 million which
were largely placed with institutional investors in the
UK. Reliance is the only Indian issuer so far to access
this pool of capital.
Reliance also made a US $ 150 million private
to European banks and
placement of notes
institutional investors. Since 1995, Reliance has
issued over US $ 1.3 billion of debt securities in the
international capital markets. These securities are
currently assigned an investment grade (cid:147)Baa3(cid:148) rating
by Moody(cid:146)s, a (cid:147)BB +(cid:148) rating, with stable outlook, by
Standard & Poor and an investment grade (cid:147)2(cid:148) rating
by NAIC.
Reliance demonstrated its financial flexibility during
the year, by successfully tapping the domestic debt
markets, when international markets remained closed
to most issuers from emerging markets on account of
the Asian economic crisis.
During the year, Reliance privately placed debentures
of Rs. 1,087 crores to finance ongoing capital
expenditure. Reliance raised nearly Rs. 188 crores
(US $ 47 million) by issue of preference shares, the
largest issue of preference share capital from any
private sector company in India. During the year,
Reliance made an early redemption of three series of
public debentures, aggregating to Rs. 656 crores.
The rating of the company(cid:146)s long term debt from
CRISIL was maintained and reaffirmed at AAA, the
agency(cid:146)s highest rating.
The company meets its working capital requirements
through committed rupee credit lines provided by a
consortium of Indian and foreign banks. These
credit lines are fixed annually and reviewed on a
quarterly basis.
To provide an alternative source of working capital,
Reliance has established a rupee commercial paper
program. Its commercial paper is rated at P1 + by
CRISIL, the highest credit rating that can be
assigned to this instrument. As at March 31, 1998,
Reliance had no commercial paper outstanding. The
peak outstandings during the financial year were,
however, Rs. 690 crores (US $ 175 million).
Investments as at March 31, 1998 were Rs. 4,282
crores (US $ 1,084 million) of which
liquid
investments were Rs. 2,701 crores (US $ 684
million). Cash and bank balances as at March 31,
1998 were Rs. 2,134 crores (US $ 540 million).
investments and
Foreign currency denominated
balances were US $ 1,258 million (Rs. 4,697 crores),
which afford the company a substantial hedge against
translation risk on its long term debt.
During the year, Reliance(cid:146)s total exports were Rs.
366 crores (US $ 93 million) as compared to Rs. 107
crores (US $ 30 million) in the previous year. Its
revenues from sale of crude oil and gas, which are US
dollar denominated, were Rs. 204 crores (US $ 52
million).
revenues
comfortably exceed annual debt servicing of foreign
currency debt.
The company is exposed to increased costs from
devaluation of the Rupee because of its foreign
currency loans as well as its imported feedstocks,
mainly naphtha, PX and EDC. The company believes
that the adverse effect of any devaluation of the
Rupee on the company(cid:146)s results is unlikely to be
significant because the prices for its products in the
Indian market are effectively priced by reference to
the Rupee price of imported products.
and oil/gas
export
Its
management
Reliance
transactions such as interest rate swaps and currency
undertakes
liability
9(cid:223) (cid:224)
GROWTH IS LIFE !
swaps to reduce overall cost of debt and diversify its
liability mix. These transactions are entirely for
hedging purposes.
strategy was
Asian Economic Crisis
Reliance(cid:146)s business
convincingly
vindicated during the year, in the aftermath of the
currency crisis which swept the entire Asia Pacific
region. Steep depreciation was witnessed in this
period in the value of all major currencies in the
region. Domestic demand growth in those countries
suffered a setback, as a sharp economic backlash was
witnessed after years of rapid growth.
Producers in affected countries resorted to panic
liquidation of inventories, in a desperate bid to
acquire liquidity to service dollar denominated debt.
Petrochemical producers in the region had typically
used high gearing and sourced dollar debt to fund
their projects (cid:150) the value of this debt in local currency
terms multiplied overnight (cid:150) sending shock waves
through the region(cid:146)s financial, currency and stock
markets.
Commodity markets were subjected to significant
product pricing pressures. Tariff protection levels in
levels. In this
India also remained at reduced
challenging environment, Reliance maintained its
leading market share
its products, and
prevented imports from gaining a foothold in the
Indian markets.
Capitalising on its dominant position in the huge and
growing domestic market, Reliance more than
matched overseas suppliers at every step (cid:150) not just in
terms of quality and price, but in technical and
marketing
support, and providing customised
solutions for individual customers.
Reliance(cid:146)s deep understanding of the local markets,
relationships with
long-term
and
customers, ensured that temporarily heightened
volatility in the markets did not lead to any loss of
business. Reliance derived 97% of its revenues from
the booming Indian market, while producers in other
countries struggled to find markets.
With the de-stocking phase over, most petrochemical
producers in the South-East Asian region began
facing acute working capital problems. High
dependence on imported feedstocks for many units
worsened their situation. Credit for raw material
supplies was often not available, as available liquidity
simply dried up and access to foreign sources of
capital was cut off. Operating rates necessarily
dropped significantly.
its excellent
in all
In this difficult period, when a number of South-East
Asian manufacturers defaulted on debt obligations
and were compelled to curtail production, Reliance
demonstrated its global competitiveness by setting
up major new facilities and operating its plants at full
capacity.
in 1997-98,
Interestingly, even as customs duties have dropped in
India over the last few years, and Asian currencies
weakened substantially
imports of
petrochemical products into India have shown a
declining trend.
In the medium and long-term perspective, the
currency turmoil has led to a more disciplined
approach
creation.
regional
Political and economic risk perceptions of investing
in the South-East Asia region have
increased
dramatically. The flow of long-term capital in the
form of equity, external commercial borrowings,
suppliers(cid:146) credit and buyers(cid:146) credit has also dropped
sharply.
capacity
towards
A number of cracker projects with proposed
downstream facilities have been shelved, put on hold
or delayed, as international and domestic lenders
have become more discerning.
Business Review
Polyester Business
Polyester Filament Yarn (PFY)
Reliance is the 6th largest producer of PFY in the
world, with a total capacity of 220,000 tonnes per
annum. Reliance operated at nearly 100% capacity
utilisation in 1997-98, producing 217,000 tonnes
of PFY. This represents an increase of 32% over
1996-97 production.
Reliance maintained its market leadership, with a
market share of 33%.
The introduction of sophisticated manufacturing
processes and product handling facilities at Hazira
improved the quality of PFY produced by Reliance.
Aided by excellence in service standards, Reliance
emerged as the supplier of choice among quality
consumers and hi-tech manufacturing units in India.
During the year, Reliance also emerged as an
important and regular supplier of PFY in the
international market for sophisticated texturising
machines (cid:150) a step towards becoming a player in the
global PFY market.
The domestic PFY industry registered impressive
growth in 1997-98, recording a 29% increase in
consumption (cid:150) riding on the back of robust growth
of over 26% in the previous year. Domestic demand
increased from 460,000 tonnes to 595,000 tonnes
over the period.
Demand growth was spurred by a further significant
decline in PFY prices during the year. This was the
result of lower international prices, the reduction in
import tariff from 45% in 1996-97 to 35% in
10(cid:223) (cid:224)
1997-98, and the cut in excise duty from 46% in
1996-97 to 34.5% in 1997-98.
PSF requirements, either partially or exclusively, from
Reliance.
GROWTH IS LIFE !
This decline in PFY prices coincided with a rise in
cotton prices. With PFY becoming cheaper than
cotton and other fibres, a strong substitution effect
was fuelled, leading to newer applications.
Reliance(cid:146)s foresight that polyester consumption in
India will grow exponentially
is paying rich
dividends, justifying the substantial expansion of the
polyester business over the years.
Reliance(cid:146)s unique position as a fully integrated PFY
producer enabled it to successfully face the challenges
witnessed in the second half of the financial year,
when product prices remained under pressure. The
last quarter of 1997-98 has seen a recovery in PFY
prices, which has continued into the current year.
Based on prevailing trends, Reliance visualises a
stable margin environment for its PFY business, with
continuing strong demand growth.
Polyester Staple Fibre (PSF)
Reliance is the 5th largest producer of PSF in the
world, with an installed capacity of 270,000 tonnes
per year.
Reliance produced 232,000 tonnes of PSF
in
1997-98, an increase of 72% over the production of
135,000 tonnes of 1996-97. Domestic demand for
PSF registered significant improvement of 28% from
332,000 tonnes in 1996-97 to 426,000 tonnes in
1997-98. Demand growth was triggered by the
strong substitution effect, arising from cheaper PSF
prices relative to cotton and other alternates.
The major achievement of an otherwise challenging
year was the increase in Reliance(cid:146)s market share in
PSF from 41% in the previous year to 54% in 1997-
98. Reliance achieved significant market penetration
in new markets within the country during the year.
individual users
Intensive marketing and technical support efforts
led to
pro-actively directed at
breakthroughs
customers.
Reliance(cid:146)s unique capabilities of producing a wide
range encompassing 9 different grades of PSF at 3
different manufacturing locations helped it to offer
complete solutions to customers.
capturing new
in
Just-in-time supplies by Reliance enabled customers
to significantly reduce their inventory levels from an
average of 15 days to under 7 days, leading to
reduced interest costs for them.
A major strength of Reliance(cid:146)s PSF business has been
the strong bonding with customers, which has
ensured that over 75% of customers have remained
with the company for more than 3 years. Creation of
such relationships has also resulted in more than 80%
of the spinning mills in the country sourcing their
is
integration, and
Reliance, with its dominant capacities, significant
vertical
leading market share
position,
ideally positioned to capture new
opportunities arising from the likely restructuring of
the domestic PSF industry. The compounded annual
demand growth rate of around 20% witnessed in the
industry over the past decade is expected to be
maintained in the future.
Polyester Fibrefill (PFF)
Reliance commissioned a plant to manufacture
30,000 tonnes per annum of polyester fibrefill with
DuPont technology. PFF is used for filling/non-
woven end usages like pillows, quilts, cushions,
sleeping bags, mattresses and furniture cushions.
PFF, being lighter and cleaner, gives better shape
retention compared to traditional filling materials
like cotton, cotton waste, synthetics waste, and coir.
Reliance is actively setting up a distribution channel
to reach fibrefill to consumers in India through retail
outlets. It is also working towards developing a
regular market for exports to the US and Europe.
Poly Ethylene Terepthalate (PET)
Reliance introduced a new product in the market in
the previous year (cid:150) Bottle Grade PET chips. The raw
materials used in the manufacture of PET chips are
PTA and MEG. In that context, PET chips are similar
to polyester in chemical composition.
Reliance commissioned an 80,000 tonne bottle grade
the Hazira Manufacturing
PET chip plant at
Complex. Reliance(cid:146)s PET chips, marketed under the
brand name (cid:145)RELPET(cid:146), soon met with international
acceptance due to their high quality. Reliance has
moved swiftly to capture a leading market share of
28% in less than six months.
PET is an internationally accepted popular material
used in packaging articles such as bottles. The per
capita consumption of PET in India is quite low at
0.02 kg, compared to 0.11 kg for China and 4.5 kg
for USA.
The PET market in India is in its nascent stages and
will be going through a boom in expansion in the
next 2-3 years. International majors such as Coca
Cola, Pepsi, Cadbury Schweppes and Nestle are
having major plans for their products, of which PET
is an
integral packaging material. Reliance(cid:146)s
contribution will be specifically oriented to the
growth of this market.
Reliance(cid:146)s key competitive advantages which will
provide it with the edge to succeed in the PET
business are:
(cid:149) World scale plants + World-class Technology
11(cid:223) (cid:224)
GROWTH IS LIFE !
(cid:149) Wider product-mix than competitors
(cid:149) Backward integration to feedstocks
(cid:149) Customer support through:
(cid:149) Product application & research
(cid:149) Entrepreneur development program
(cid:149) Wide distribution network
Fibre Intermediates Business
Purified Terephthalic Acid (PTA)
Reliance manufactured 684,000 tonnes of PTA
during 1997-98, registering 153% growth over
production of 270,000 tonnes in 1996-97 (cid:150) an
achievement unparalleled
the global petro-
chemicals industry.
in
Reliance commissioned a new 350,000 tonnes per
year PTA manufacturing facility at Hazira in 1997-
98, based on ICI, UK technology. Reliance(cid:146)s total
PTA production will be close to one million tonnes
per year, placing it among the top 5 global producers
of PTA. The new plant achieved rated capacity
utilisation soon after commissioning.
Reliance is presently the only Indian manufacturer of
PTA. The total domestic consumption is around one
million tonnes. Towards the end of 1997-98,
Reliance held 78% market share. PTA is the preferred
and more economical raw material for manufacturing
polyester.
Reliance captively consumes around 440,000 tonnes
of PTA in the manufacture of polyester yarn and
fibre. Captive production and consumption of PTA
leads to value addition, margin enhancement and
cost competitiveness in Reliance(cid:146)s polyester business,
besides ensuring uninterrupted production.
in 1997-98
PTA prices tended downwards
in
response to Asia-Pacific pricing pressures. The drop
in Reliance(cid:146)s PTA prices was
substantially
compensated by the steep decline in price of the
principal feedstock, paraxylene (PX). The major
portion of PX consumed by Reliance is presently
being imported.
The Asia-Pacific crisis prompted producers in the Far
East to resort to unfair competition, dumping their
output into India at unreasonably low prices. In
response to this, the Indian government imposed an
anti-dumping import duty ranging from Rs. 463 per
tonne to Rs. 3,375 per tonne of imported material
from November 1997 onwards. Imports of PTA into
India have been gradually declining and are currently
less than 15,000 tonnes per month.
The outlook for PTA remains healthy, as domestic
demand growth for the user industry (cid:150) polyester (cid:150) is
expected to remain buoyant in the coming years.
Reliance is expected to maintain its competitiveness
in PTA production, on account of economies of scale
arising from its significant capacity build-up.
Mono Ethylene Glycol (MEG)
Reliance achieved the distinction of becoming the
10th largest producer of MEG in the world during
1997-98, with total capacity rising to 340,000
tonnes per year. A new MEG plant was commissioned
at Hazira during the year, based on the Shell process,
with an installed capacity of 120,000 tonnes per year.
The new plant achieved higher than rated capacity,
within a few days of commissioning.
Reliance(cid:146)s production of MEG increased to 279,000
tonnes in 1997-98 (cid:150) registering 154% growth over
production of 110,000 tonnes in 1996-97. Domestic
demand rose 34% to 412,000 tonnes during the year.
Reliance(cid:146)s market share in MEG is now close to 78%.
MEG is an intermediate, along with PTA, in the
manufacture of polyesters (cid:150) fibres, films and PET.
Around 60% of Reliance(cid:146)s annual MEG production is
expected to be consumed in-house. The balance will
cater to the increasing domestic demand from the
rapidly growing polyester industry.
The Asia-Pacific crisis, and substantial new capacity
additions in the third quarter of the year 1997,
resulted in declining MEG prices. Despite this, MEG
imports remained at barely 4,000 tonnes per month (cid:150)
a testimony to Reliance(cid:146)s competitiveness, efficient
customer service and realistic pricing policies.
Captive availability of the major raw material,
ethylene, from the naphtha cracker at Hazira ensured
uninterrupted production of MEG, in addition to
bringing about cost reduction and significant margin
improvement.
Demand for MEG in the domestic market has been
growing at an annual compounded rate of over 20%.
Strong demand growth in the polyester business is
expected to ensure a continuing healthy outlook for
MEG.
Polymers Business
Polyethylene (PE)
Reliance commissioned its second PE plant with an
installed capacity of 200,000 tonnes per year at
Hazira during 1997-98. Reliance(cid:146)s total capacity of
400,000 tonnes per year makes it the 10th largest
swing manufacturing PE capacity in the world.
Reliance(cid:146)s plants have the flexibility to produce High
Density Polyethylene (HDPE) and Linear Low
Density Polyethylene (LLDPE), switching to either
in response to changes in demand.
Reliance produced 318,000
in
1997-98, an increase of 93% from 165,000 tonnes in
the previous year. The market share increased to 60%
tonnes of PE
12(cid:223) (cid:224)
GROWTH IS LIFE !
from 45% last year. A significant milestone was
achieved
in March 1998, with cumulative PE
production crossing a million tonnes.
The major raw material for PE, ethylene, is sourced
from Reliance(cid:146)s cracker at Hazira. Captive supply of
ethylene insulates the company from volatility in
international prices, leads to efficiencies in logistics,
and helps reduce costs and improve margins.
Polyethylene is used in the manufacture of packaging
materials, water storage tanks, milk crates, and a
variety of household products.
Domestic demand in 1997-98 stood at 665,000
tonnes. Per capita consumption of PE in India is
among the lowest in the globe. Compared to an
Asian average of 3.6 kg per year, and the US average
of 14.7 kg per year, India consumes only 0.7 kg per
year of PE. Reliance is well poised to exploit this
untapped potential through its world scale capacities,
deep reach in the market arising from its countrywide
marketing and distribution network, and sustained
market development efforts.
In the short term, domestic demand growth in PE in
1997-98 was out-paced by the 38% growth in PP
consumption, arising from sharply reduced PP prices.
Approximately 30% of PE and PP markets tend to
overlap. However, new product applications and
substitution opportunities are expected to increase in
the coming years (cid:150) providing a continuing impetus to
PE demand growth.
Polypropylene (PP)
Reliance(cid:146)s PP plant completed its first full year of
in 1997-98. The company produced
working
357,000 tonnes of PP, increasing its market share to
71% in 1997-98. This represented an increase of
297% over production of 90,000 tonnes in the
random
previous year. Three new grades of
copolymer, impact copolymer and fibre filament
were introduced during the year.
The number of customers more than doubled from
800 to 2,100. Reliance demonstrated a high degree
of flexibility in suitably modifying PP grades to meet
the exacting requirements of individual customers.
Reliance will be commissioning a new 400,000
tonnes per year PP plant at its Jamnagar complex in
the year 1999. This will place Reliance among the
top 5 producers of PP in the world.
PP is used in the production of everyday-use articles
such as packaging materials, hosiery garments,
and
moulded
medical appliances. During the year, domestic PP
consumption
to
595,000 tonnes.
articles, kitchenware,
impressive 38%
increased an
furniture
Per capita consumption of PP in India at 0.7 kg per
year is still extremely low compared to the rest of
Asia/Far East at 3.5 kg per year, Europe at 8 kg per
year, and the US at 8.3 kg per year.
in
(plastics
agriculture),
Areas such as packaging (flexible and rigid),
plasticulture
infra-
structure (power/telecom/cables/pipes), household
(durables/housewares) hold considerable potential.
Comprehensive developmental efforts have also been
initiated to substitute other natural products like
wood, metal, jute and paper in various applications.
The existing PP plant at Hazira enjoys complete
linkage for its basic raw material, propylene, from the
naphtha cracker. The new PP facility at Jamnagar will
obtain propylene from Reliance Petroleum(cid:146)s refinery
located at the same complex.
PP prices were affected during the year by the Asia-
Pacific crisis and the build-up of capacity in the
region. However, reduced prices led to booming
demand
in volumes.
significant growth
Reliance(cid:146)s integrated operations and global scale
plants are expected to steer the company through a
challenging environment.
and
Polyvinyl Chloride (PVC)
Reliance produced 270,000 tonnes of PVC in 1997-
98, registering growth of 42% over production of
190,000 tonnes in 1996-97. A major achievement
during the year was the crossing of the one million
tonne mark in cumulative PVC production since start
up in December 1991.
and
The year witnessed optimisation
fuller
exploitation of existing facilities to achieve higher
levels of productivity. Reliance(cid:146)s competitive capital
costs and operating cost positions gave it leadership
in the domestic market. Reliance(cid:146)s share of the
domestic market increased from 38% in 1996-97 to
42% in 1997-98. Higher volumes compensated for
the declining trend in product prices.
Domestic demand for PVC was 554,000 tonnes
during 1997-98. PVC is a versatile polymer and has a
variety of applications : pipes, sheets, films, footwear,
wires and cables. The substitution of traditional
materials with PVC has (cid:150) and will (cid:150) lead to the
development of new applications, driving demand
further in the coming years.
PVC holds a unique position in the plastics spectrum
on account of its unique features, and is headed for
robust long term growth. PVC fittings are the most
widely accepted medium of water, sewage and other
liquid handling systems in the advanced countries.
as
exist
Major opportunities
substitution of traditional materials like asbestos, and
GI/CI fittings.
areas
such
in
Per capita consumption of PVC in India is among the
lowest in the globe. Compared to a Chinese average
of 2.32 kg per year, and the US average of 17.8 kg
13(cid:223) (cid:224)
GROWTH IS LIFE !
per year, India consumes only 0.63 kg per year of
PVC. In the backdrop of this vast potential, the
growth trend in PVC consumption is expected to
firm up in coming years.
Polymer Intermediates Business
Cracker - Ethylene and Propylene
The financial year under review was the first full year
of working for the world(cid:146)s largest grassroot multi-
feed cracker set up by Reliance at Hazira. This is the
first cracker to be commissioned during the last 20
years in India, and is also the only world-scale
ethylene producing plant
in India. An added
distinction the cracker has given Reliance is the
largest naphtha cracking capacity in Asia.
The successful stabilisation of the cracker within
the first few months of operations represented one
of the major highlights at Hazira in 1997-98.
Demonstrating
its unique project engineering
capacity
strengths, Reliance debottlenecked
of the cracker from 500,000 tonnes per year
to 750,000 tonnes per year in the first half of 1997-
98 itself.
The cracker produced 626,000 tonnes of ethylene
and 309,000 tonnes of propylene during the year.
This represented 89 per cent capacity utilisation for
the cracker.
The polymer, polyester and textiles businesses of
Reliance are now fully integrated from naphtha to
fabrics and plastics. The cracker has eliminated
Reliance(cid:146)s exposure to the international market for
procurement of basic feedstocks like ethylene and
propylene, and contributed significantly to stability
of margins.
The cracker can use a variety of feedstocks, including
naphtha, natural gas liquids and other petroleum
for
feedstocks. The naphtha
is
transhipped at Reliance(cid:146)s
single-buoy mooring
(SBM) currently operational off the coast of Hazira.
This is then transferred to the complex via pipelines.
cracker
the
The propylene and ethylene produced is used for
the manufacture of PP, PE, PVC and MEG at the
Hazira complex. Benzene and xylenes produced in
the cracker are used for manufacturing LAB and
paraxylene at the Patalganga complex.
Cracker - Other Products
In addition to ethylene and propylene, the cracker
also produces aromatics like benzene, toluene, mixed
xylene and carbon black feed stock (CBFS).
Benzene
In 1997-98, Reliance produced 130,000 tonnes of
benzene, and swiftly attained market leadership with
a market share of 37% which is more than double the
nearest competitor(cid:146)s market share.
Domestic demand grew by 16% during 1997-98 and
it is expected that this growth will accelerate in the
coming years.
Benzene, like ethylene and propylene, is a building
block in the petrochemicals industry. It is used in the
like
manufacture of major
styrene, phenol, caprolactum, linear alkyl benzene
(LAB), nitro-benzene,
chloro-benzene, maleic
anhydride and aniline.
industrial chemicals
Toluene
Reliance manufactured 10,500 tonnes of toluene in
1997-98, making it the largest producer of toluene in
the country.
Regular and large supplies of toluene have helped
the downstream
industry grow faster. Demand
growth was 20% in 1997-98, and is expected to
grow at a healthy pace in the coming years.
The company produces ultra-pure toluene which is
suitable for the manufacture of toluene di-isocyanate.
The other applications include nitro toluene, chloro
toluene and solvents for bulk drugs.
Mix Xylene
Reliance is the only producer of this product in India.
Reliance produced 70,000 tonnes of mix xylene for
1997-98. The isomer grade was consumed captively
for the production of paraxylene at Patalganga while
the solvent grade was used by the paints, pesticides
and oil-field chemical industries.
Carbon Black Feed Stock
Carbon Black Feed Stock (CBFS) is used primarily
for the manufacture of carbon black, a critical raw
material for the tyre industry. Reliance manufactured
77,500 tonnes of CBFS during 1997-98. The output
from Reliance helped in bridging the gap between
demand and supply, leading to a substantial decline
in the quantum of imports during the year.
Chemicals Business
Linear Alkyl Benzene (LAB)
Linear Alkyl Benzene is used in the manufacture of
detergents. Against its installed capacity of 100,000
tonnes, Reliance produced 95,000 tonnes of LAB in
1997-98. This represented a market share of 37%.
The market share of the nearest competitor was 34%.
The total domestic consumption for LAB is around
227,000 tonnes.
Paraffins
Reliance produced 93,500 tonnes of paraffins in
1997-98, accounting for a 48 per cent market share.
With the growth in the PVC market, the demand for
paraffins is rising.
14(cid:223) (cid:224)
GROWTH IS LIFE !
Ethylene Oxide (EO)
Ethylene Oxide is a versatile chemical used in
the manufacture of cosmetics, pharmaceuticals,
toiletries, oil
refineries and
automobiles. The company produced 18,300 tonnes
of EO in 1997-98, accounting for a 37% market
share.
chemicals,
filled
Tri Ethylene Glycol (TEG)
TEG is used in oil exploration, lubricants, speciality
chemicals
and polyester production. Reliance
manufactures TEG by adding value to di-ethylene
glycol (DEG) which is a by-product from the
production of MEG.
In 1997-98 Reliance
manufactured 11,400 tonnes of TEG accounting for
100 per cent share of the domestic market. Nearly
3,500 tonnes of TEG was exported in 1997-98.
is
largest
India(cid:146)s
synthetic
Textiles Business
textile
Reliance
manufacturer. The textiles complex at the site is one
of the largest and most modern synthetic textiles
mills in Asia. The complex houses activities like
spinning, weaving, crimping, texturing and dyeing of
yarn, warp knitting, fabric designing, printing and
processing. Naroda also accommodates one of the
largest design studios in Asia.
The textiles are sold under the brand name of
VIMAL, HARMONY and SlumbeRel. These
products are marketed
through a distribution
network of independent wholesale dealers, as well as
franchised retail outlets, which sell Reliance(cid:146)s fabrics
exclusively, and many independently owned retail
outlets throughout India.
Reliance(cid:146)s fabric output is noted for its design,
quality and upmarket appeal.
Vimal
VIMAL is India(cid:146)s largest selling brand of premium
textiles. VIMAL derives its competitive edge from
the huge range that it is able to offer customers.
VIMAL retains its novelty element by introducing
fresh and latest collections at regular intervals. This
has been made possible by Reliance(cid:146)s continuous
investment in the best machines and sophisticated
technology to upgrade the production and design
process.
It is the conscious effort of the textiles unit to
manufacture better quality and increase the variety
available to the upper segment of the market. This is
aimed at increasing the margins available through
value addition.
Harmony
HARMONY is the largest selling brand of premium
furnishing fabrics. HARMONY offers a broad range
of the latest in ethnic and international designs.
It also makes flat jacquards, new generation velours,
transfer prints, dyed
automotive
velours, jacquards, printed drapes and laced net
curtains.
coordinates,
One of the activities to promote the HARMONY
collection was an art show hosted by Reliance in
Mumbai. The entire HARMONY collection was
displayed in the art show. The collection met with an
enthusiastic response from all sections of society.
Oil and Gas
Reliance has invested in the oil and gas business,
through an unincorporated joint venture with Enron
and ONGC to develop the Panna, Mukta and Tapti
oil fields. The joint venture has made substantial
progress in the implementation of development
plans. The fields are currently producing crude oil as
well as natural gas.
The total capital expenditure
incurred by the
consortium till date is around Rs. 2,000 crores. The
preliminary results of reservoir studies for assessing
the future production potential from these fields
have been very encouraging and significant levels of
reserve addition are envisaged.
The production of oil from the Panna-Mukta oil field
is currently around 18,000 barrels a day. This is
expected to increase to 30,000 barrels a day by the
end of 1998. Further drilling of wells is under
progress. Panna Mukta are currently producing 1.2
million cubic meters of gas per day and this is
expected to reach a level of 2.2 million cubic meters
per day by 1999-2000.
Gas production from Tapti field commenced from
June 1997, and is currently around 5 million cubic
meters of gas per day.
volumes
could
standard
the Tapti consortium participants,
Enron Oil and Gas, the joint venture partner
and Operator, has recently presented a proposal
to
seeking
approval of a new development plan for the Tapti
gas fields. EOG estimates incremental Tapti natural
approach
gas
approximately
17 million
cubic metres per day
(MMSCMD) during the year 2000 if the new
development plan is approved. This would take the
total gas production at Tapti to approximately 22
MMSCMD. These new volumes would be in addition
to current Tapti deliveries. This would make the
joint venture a very large natural gas producer with a
significant market share.
Exposure to this business brings several advantages to
Reliance. Revenues
are
from
denominated in US dollars and provide a hedge
the business
15(cid:223) (cid:224)
GROWTH IS LIFE !
against depreciation of the Indian currency. The
project also enjoys several tax benefits.
Jamnagar Petrochemicals Complex -
The next big leap
Reliance Industries is investing around Rs 5,000
crores (US $ 1,250 million) in building two world-
scale plants at the site of the Jamnagar refinery. A
new petrochemical
three
paraxylene plants with an aggregate annual capacity
of 1.4 million tonnes and a polypropylene plant of
400,000 tonnes per annum is expected to go on-
stream in the year 1999. Reliance is expected to
emerge as one of the top 5 PP manufacturers in the
world and also the world(cid:146)s second largest producer of
paraxylene, upon completion of the project.
comprising
complex
plants will
raise Reliance(cid:146)s
These
current
manufacturing capacities by another 50% to 9.3
million tonnes per year. With this, Reliance would
have raised its annual capacity over five times (cid:150) from
1.8 million tonnes to 9.3 million tonnes.
The Jamnagar complex will be the first world-scale
manufacturing complex to have a fully integrated
petroleum refinery, petrochemicals complex, power
plant and a port with related infrastructure.
Value-Creating Investments
significant
is making
investments
Reliance Petroleum
Reliance
in
Reliance Petroleum Ltd., a separately listed company,
setting up the world(cid:146)s largest grassroots refinery
project at Jamnagar, Gujarat. During the year,
Reliance, as promoter of Reliance Petroleum, along
with associates, has announced an investment of Rs.
2,400 crores (US $ 608 million) in equity linked
instruments of Reliance Petroleum, spread over a
period of 3 years.
its
Reliance, along with
subsidiary, Reliance
Industrial Investments and Holdings Ltd. (RIIHL),
are presently holding instruments entitling them, at
their option, to approximately 39% of the paid up
equity capital of Reliance Petroleum on a fully
diluted basis. Reliance and RIIHL have expressed
their willingness to increase their holding up to a
maximum of 50% of fully diluted equity capital of
Reliance Petroleum.
Reliance Petroleum
setting up a globally
competitive, 18 million tonnes per annum refinery,
with the highest degree of complexity among all
refineries in India. Reliance Petroleum will have
approximately 20% of the country(cid:146)s refining capacity
upon commissioning in the second half of 1999.
is
The investment in Reliance Petroleum is extremely
16(cid:223) (cid:224)
situation
attractive in view of the low levels of per capita
consumption of energy in India, and the looming
of
vis-a-vis
deficit
petroleum products. It is estimated that the country
will have to double its existing refining capacity of
around 70 million tonnes per annum in the next 10
years to match consumption growth.
demand-supply
Investment prospects in refining and marketing must
be viewed in the light of the emerging deregulation
in the industry, in which the phased dismantling of
the administered pricing mechanism (APM) has been
notified by the government. Over the last few
decades, the existing refiners have lagged far behind
complexity,
in
industry
flexibility and safety. The oligopolistic
competitive
structure
pressures.
A
Petroleum emerges from:
remained unexposed
competitive edge
for Reliance
efficiencies,
technology,
sustainable
scale,
to
Scale and technology
Integration
(cid:149)
(cid:149)
(cid:149) Procurement, logistics and marketing
(cid:149) Financing
(cid:149)
(cid:149) Management vision, and entrepreneurial ability.
Intellectual Capital
Reliance Petroleum is confident of creating a strong
competitive edge for the following reasons:
Scale and technology
It is the largest grassroots refinery in the world.
(cid:149)
(cid:149)
It is the largest, state-of-the-art refinery in India.
(cid:149) The plant will have a lower capital and operating
cost per tonne.
(cid:149) The sophistication of the plant will enable deep
conversion.
(cid:149) The plant will retain the flexibility to process
different types of crude.
(cid:149) The plant will meet
environment standards.
the
stringent US
(cid:149) The gross refining margins will be higher than
in
the domestic and regional peer group
deregulated scenario.
Integration
(cid:149) The
integration
refinery with
petrochemicals and power will improve the
Nelson(cid:146)s complexity Index from 9.9 to 13.8.
the
of
(cid:149) Group companies will consume a third of the
production.
Procurement and logistics
(cid:149)
It is located within attractive proximity to the
major crude markets in the Middle East leading
logistics
to
savings
freight
easier
and
GROWTH IS LIFE !
management.
(cid:149) The location is port-based with an adequate draft
for large vessels.
(cid:149) Forecasts have indicated an easy crude availability
from the Middle East for the coming years.
Financing
(cid:149) The management has preferred to finance the
project conservatively with a low gearing.
(cid:149) The debt maturity has been spread over 10 years.
(cid:149) Reliance Petroleum already has an investor base
of more than 5 million.
(cid:149) The company has accessed
foreign capital
through a US $ 100 million convertible bond
loan
and a US $ 300 million syndicated
(oversubscribed three times).
Highlights of Progress at Jamnagar
(cid:149) The foundations for the major equipment to
be
completed. The
equipment, which came in towards the end of
1997-98, is in the process of being erected on the
foundations.
installed have been
(cid:149) The jetty to service the Jamnagar project was
completed in a record six months to facilitate the
inflow of project material. The jetty is now
capable of handling all inward consignments of
equipment including the ones weighing over
1,200 tonnes.
(cid:149) The pipe fabrication shop at Jamnagar is one of
the world(cid:146)s largest fabrication facility at a single
facility has been
location. The
equipped with the latest computer-controlled
machines to meet the critical and exacting
requirements of the refinery and petrochemical
complex.
fabrication
(cid:149) The
structural
shop, which
is
fabrication
fabricating the structures for the project, has
gone on-stream. The shop is equipped with the
latest computer-controlled machines and is one
of the biggest of its kind in Asia.
(cid:149) The Field Design facility has been equipped with
the latest CAD software for design review.
Around 500 engineers are working to meet the
the
ongoing
complex.
requirements of
engineering
(cid:149) Nearly 85,000 workers were mobilised to ensure
that the construction work was carried out day
and night. Most major contractors in India have
mobilised their machinery, supervisory staff and
workers to complete the construction work for
the project. This makes the Jamnagar project one
ever
the
of
undertaken.
construction
largest
efforts
(cid:149) A world record 150,000 cubic metres of
concreting was achieved in January 1998.
Power
A sum of around US $ 1.35 billion will be invested in
three power projects over the coming years. The
current status of power projects being promoted by
the Reliance group is as follows:
1. Patalganga : 410 MW
2. Bawana
: 421 MW
Jamnagar
: 500 MW
3.
(cid:149) The implementation of power projects will be
done by stand-alone power producing companies
on a project recourse basis.
(cid:149) The plants will supply power to the state
electricity grid under pre-negotiated power
purchase agreements.
(cid:149) The naphtha
linkage and
techno-economic
the Patalganga project were
for
clearance
accorded during 1997-98. The power purchase
agreement (PPA) has been signed
for the
Jamnagar project.
(cid:149) The power project at Jamnagar is synergic with
the refinery business. The output from the
refinery (cid:150) naphtha and pet-coke (cid:150) will be utilised
as feedstock for the power project.
Reliance(cid:146)s entry into the power business provides a
strategic fit for the following reasons :
(cid:149)
It has a ready feedstock availability.
(cid:149) Power generation provides a link in the overall
integration strategy.
(cid:149) The group has prior experience in captive power
generation and in-house skills for planning and
executing large projects.
(cid:149) The group has the strength to raise adequate
financial resources.
(cid:149) The power generation business provides
attractive returns.
(cid:149) The characteristics of the venture represent an
annuity business.
It is estimated that 80,000 MW of generating
capacity, entailing an investment of US $ 80 billion,
will have to be added in the next 10 years to ensure
that existing deficits do not widen. Deregulation
in the distribution of power as and when it is
announced is expected to provide further growth
opportunities.
Reliance Telecom
Reliance Telecom is undertaking two projects (cid:150) the
cellular services business in seven circles and the basic
services project in Gujarat.
17(cid:223) (cid:224)
GROWTH IS LIFE !
Cellular services project highlights
(cid:149) Reliance Telecom won seven of the 19 circles
opened up by the government.
(cid:149) The seven circles which Reliance has been
awarded cover 13 states, nearly a third of India(cid:146)s
population, and 36 per cent of India(cid:146)s land mass.
The license fees committed by Reliance Telecom
is the lowest on a per POP basis amongst
comparable circles.
(cid:149) Since the states are in close proximity to each
other, Reliance enjoys a low capital cost.
(cid:149) The tele-density in these regions is among the
lowest in India.
(cid:149) The equipment and service contracts have been
awarded.
(cid:149) The project has registered the lowest capital cost
for any cellular investment in India and is also
cost competitive in a global context.
(cid:149) The project has already commenced services
since end 1997 in over 20 cities.
Basic services project highlights
(cid:149) Reliance won the basic services bid in Gujarat.
(cid:149) Reliance has had to pay a low license fee per
POP: this is less than half paid in Maharashtra.
(cid:149) Gujarat is an attractive market: a state with a high
industrial growth, a high per capita income but a
low existing telephone penetration.
(cid:149) Currently, the DoT network comprises of 1.16
million lines with a waiting list of around
300,000.
(cid:149) Reliance plans to deploy a combination of
wireless and wireline access networks integrated
with state of art digital equipment. The wireless
network will enable it to install telephone lines
quickly. A fibre optic backbone to retain
flexibility for future growth is being planned.
(cid:149) Reliance will provide advanced value added
services such as virtual phone networks, prepaid
cards and toll free calling to its customers.
Forward-looking statement
Looking forward to 1998-99, Reliance Industries
expects to see continuing volume growth in its
business. A number of projects were commissioned
during the course of the financial year under review,
and the full impact of these projects will be reflected
in 1988-99 in the form of higher sales.
The product pricing scenario has been extremely
volatile in the second half of the year under review, in
view of the pressures arising from the Asian economic
crisis. There has been a price recovery in some
products towards the end of the year. Future
developments in the affected Asian economies will
hold the key to the future direction of commodity
prices.
improving
Reliance will continue
productivity, operational
cost
and
reduction in the endeavour to impart stability to
operating margins.
its focus on
efficiencies
Disclaimer
The information contained in this section is the best
of information available with and market perception
of Reliance Industries. None of the information
provided has been done with a view to solicit
investment into the Reliance stock or any industrial
motive in mind. While every care has been taken to
ensure the veracity of information and figures, we
their
would advise caution
investment/disinvestment
the
information provided.
to readers basing
on
decisions
20(cid:223) (cid:224)
GROWTH IS LIFE !
Directors(cid:146) Report
Directors(cid:146) Report
The Directors have pleasure in presenting the 24th Annual Report and the audited accounts for the financial year
ended 31st March, 1998.
Financial Results
Gross profit before interest and depreciation
Less :
Interest
Depreciation
Less: Transfer from General Reserve
1,460.27
792.95
Profit before Tax
Less : Provision for Taxation
Profit after Tax
Add : Taxation for earlier years
Balance in Profit & Loss Account
Investment Allowance (Utilised)
Reserve Written Back
1997-98
Rs. Crs. US$ Mn*
730.86
127.50
2,886.54
503.55
667.32
168.96
1,715.67
63.00
1,652.67
(85.67)
662.79
434.40
15.95
418.45
(21.69)
167.82
1,352.33
942.19
1996-97
Rs. Crs. US$ Mn
542.34
47.32
1,947.81
169.97
410.14
114.20
1,367.70
45.00
1,322.70
(cid:150)
60.67
380.82
12.53
368.29
(cid:150)
16.89
36.00
9.11
26.65
7.42
Surplus Available for Appropriation
2,265.79
573.69
1,410.02
392.60
Appropriations:
Capital Redemption Reserve
Debenture Redemption Reserve
General Reserve
Dividends paid on :
Preference Shares
(cid:150)
Equity Shares
Tax on dividend :
For 1996-97
For 1997-98
(cid:150)
64.47
752.65
(cid:150)
16.32
190.57
200.00
97.99
150.00
55.69
27.28
4.18
10.33
2.62
/ / / / / / / / / / / / / (cid:150)
326.81
82.75
299.24
83.32
29.92
33.72
7.58
8.54
(cid:150)
(cid:150)
(cid:150)
(cid:150)
Balance carried to Balance Sheet
1,047.89
265.31
662.79
222.13
2,265.79
573.69
1,410.02
392.60
* 1 US $ = Rs. 39.495 (Exchange rate as on 31-3-98)
Dividends
The Directors have recommended a dividend of
Rs. 3.50 per Equity
share on 93,37,49,403
Equity shares of Rs. 10 each, for the financial
year ended 31st March, 1998, which if approved
at the forthcoming Annual General Meeting will
be paid to all those Equity Shareholders whose
names appear on the Register of Members as
on 23rd May, 1998.
The Directors have also recommended dividend
on 10% 1,27,45,000 Redeemable Preference
Shares of Rs. 100 each, 10.5% 10,50,000
Redeemable Preference Shares of Rs. 100 each
and 10.5% 50,00,000 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, 1998.
two
International Offerings
pioneering
completed
The Company
transactions in the international capital markets by
issue of unsecured notes. It placed £ 150 million
with institutional investors in UK through a ten year
offering. This is the first sterling bond issue from
an Indian issuer and is an important step in investor
diversification for the Company. The issue was
rated by the international rating agencies, Moody(cid:146)s
Investor Services and Standard & Poors at (cid:147)Baa3(cid:148)
and (cid:147)BB+(cid:148) respectively. The Company also issued
US $ 150 million of 30 year notes on a private
placement basis to European insurance companies
and other long term investors. This marks the first
such private placement from India and reflects
of
the
international investors. The Company has so far
raised US $ 1.314 billion by way of loans, bonds and
recognition
confidence
name,
and
21(cid:223) (cid:224)
GROWTH IS LIFE !
notes with maturities from 7 to 100 years and tapped
a variety of markets.
Bonus Shares
The Shareholders of the Company at the Extra
Ordinary General Meeting held on 16th October,
1997, approved an issue of Bonus Shares in the ratio
of One Equity Share of Rs. 10 each for every equity
share held to all the shareholders of the Company as
on 29th November, 1997. The Company has
therefore, issued and allotted 46,60,90,452 Equity
Shares as Bonus Shares.
Allotment of Shares on Conversion of Bonds
The Company in the year 1993 had issued 3.5%
Convertible Bonds (FCCB) aggregating US $ 140
million in the international market. During the year
ended 31st March, 1998, holders of 11,944 Bonds
aggregating to US $ 59,720,000 have opted for
conversion and accordingly
the Company has
allotted 72,89,149 equity shares.
Energy, Technology & Foreign Exchange
Information in accordance with the provisions of
Section 217(1)(e) of the Companies Act, 1956, read
with Companies (Disclosures of Particulars in the
Report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and
foreign exchange earnings and outgo is given in the
Annexure forming part of this report.
Subsidiary Companies
As required under Section 212 of the Companies Act,
1956, the audited statements of accounts, along with
the report of the Board of the Directors of Devti
Fabrics Limited and Reliance Industrial Investments
& Holdings Limited and the respective Auditors(cid:146)
Report thereon for the year ended 31st March, 1998,
are annexed.
Fixed Deposits
The Company has not accepted/ renewed any
deposits during the year. Deposits of Rs. 0.38 crore
due for repayment on or before 31st March, 1998
were not claimed by 638 depositors as on that date.
Of these, deposits amounting to Rs. 15,000 of 2
depositors have since been repaid.
Personnel
As required by the provisions of Section 217(2A) of
the Companies Act, 1956, read with Companies
(Particulars of Employees) Rules, 1975 as amended,
the names and other particulars of the employees are
set out in the Annexure to the Directors(cid:146) Report.
However, as per
the provisions of Section
219(1)(b)(iv) of the Companies Act, 1956, the
Report and the Accounts is being sent to all
shareholders of the Company excluding the aforesaid
information. Any shareholder interested in obtaining
such particulars may write to the Secretary at the
Registered Office of the Company.
Directors
During
the year Shri S. Venkitaramanan was
appointed as Nominee Director of The Industrial
Credit and Investment Corporation of India Limited
(ICICI) on the Board in place of Shri B.V. Bhargava.
The Board places on record its appreciation for the
valuable guidance received from Shri B.V. Bhargava
during his tenure as Director.
Shri A. N. Poddar has also been appointed as
Nominee Director of General Insurance Corporation
(GIC) on the Board in place of Shri M.V. Purohit.
The Board places on record its appreciation for the
valuable guidance received from Shri M.V. Purohit
during his tenure as Director.
Shri Natvarlal H. Ambani, a Director of the
Company passed away on 1st March, 1998. He was
associated with the company since its initial years and
was indeed a crucial pillar for the company during its
formative years which were also the years when the
company was under constant pressure to deliver on
the high expectations of the Shareholders of the
Company. With profound grief, the Directors put
invaluable services rendered by
on record the
Late Shri N.H. Ambani during his tenure as Director.
Shri T. Ramesh U. Pai, Shri Yogendra P. Trivedi and
Shri Ramniklal H. Ambani, retire by rotation and
being eligible offer themselves for reappointment.
Auditors and Auditors(cid:146) Report
Messrs. Chaturvedi & Shah and Messrs. Rajendra &
Co. Auditors of the Company hold office until the
conclusion of the ensuing Annual General Meeting.
The Company has received letters from them to the
effect that their appointment, if made, would be
within the prescribed limits under Section 224(1-B)
of the Companies Act, 1956. Accordingly, the said
auditors will be appointed as auditors of the
Company at the ensuing Annual General Meeting.
The notes to the accounts referred to in the Auditors
Report are self explanatory and, therefore do not call
for any further comments.
International Accountants
The report submitted by M/s. Touche Ross & Co.
member of Deloitte Touche Tohmatsu International,
appointed as International Accountants of
the
Company, for the year under review to the Board of
Directors, is circulated with this report for the
information of members.
Acknowledgment
Your Directors would like to express their grateful
appreciation for the assistance and co-operation
received from the Financial Institutions and the
Banks, during the year under review.
Your Directors wish to place on record their deep
sense of appreciation for the devoted services of the
Executives, Staff and Workers of the Company for its
success.
For and on behalf of the Board of the Directors
Mumbai
Dated: 27th April, 1998
Dhirubhai H. Ambani
Chairman
22(cid:223) (cid:224)
GROWTH IS LIFE !
Annexure to Directors(cid:146) Report
Annexure to Directors(cid:146) Report
PARTICULARS REQUIRED UNDER THE
OF
COMPANIES
PARTICULARS IN THE REPORT OF BOARD
OF DIRECTORS) RULES, 1988
(DISCLOSURES
A. Conservation of Energy
(a) Energy Conservation Measures Taken : -
20. Optimisation of fuel gas consumption in two
furnaces in VCM plant.
21. Improved condensate recovery system in PVC
plant with minor modifications.
22. Introduction of basket type strainers in waste
water area.
1. Replacement of conventional shell and tube type
combined feed exchanger in LAB plant by plate
type exchanger.
23. Replacement of Process cooling water fan blades
of GRP with hollow FRP blades in MEG plant.
24. HP steam substituted by LP vent steam in
2. Steam condensate preheating by integration with
steam
leading
process plants
consumption in deaerators.
Installation of advance process control system.
reduced
to
3.
dehydrator in MEG-II.
25. Rich absorbent pump operation optimised in
MEG plant and one of the two pumps isolated.
26. Utilisation of low pressure fuel gas from naphtha
4. Heat integration of Extract column bottom in
cracker in the HRSGs of CPP.
LAB plant.
5. Automatic blowdown controls for steam boilers
in fibre division.
6. Simulation package utilised
for optimising
distillation column operation in petrochemical
plants.
Improved utilisation of
steam generation
potential in the Heat Recovery steam generators
utilising the exhaust heat from gas turbines.
7.
8. Optimisation of cooling water consumption in
various condensers and coolers.
9. Replacement of existing Air Dryer by Heat of
Compression type.
10. Low Pressure Plant Air Integration between
Utilities and Energy Centre.
11. Medium Pressure Steam Integration between
Utilities and Energy Centre.
12. Replacement of lower efficiency Dow Vaporisers.
13. Additional generation of ELP steam from the
PTA Reactor off Gas for usage in Process.
14. Augmenting quench water tower operation to
conserve heat in the circuit in naphtha cracker.
27. 7 Nos. Aluminum Fans of Cooling Towers
replaced by FRP Fans. This shall generate a
Power Saving of 60000 Units/year.
28. HSD fired imported super heater of Arioli M/c.
has been replaced by Indigenous NG fired super
heater.
29. Replacement of inverted type steam traps by flat
in
type, thereby saving of thermal energy
Processing Unit 1.
30. Replaced old programmers by completely auto-
operated programmers
cycle
resulting into over 60 % of saving in water
consumption in the suiting processing.
complete
for
31. PC based data process logging system installed
for Jet Dyeing Machine in Suiting Process House
leading to 40% of savings in water consumption.
32. Old Copper and Aluminum chokes were replaced
by new
Jet
department thereby saving 25 % electrical energy
in lighting.
in Water
electronic
chokes
(b) Additional Investments and proposals, if any,
in
reduction
for
being
Consumption of Energy :
implemented
15. Optimisation of quench oil tower operation in
1.
Installation of back pressure turbine.
naphtha cracker.
2. Optimisation of
recycle paraffin pumping
16. Optimisation of plant operating parameters in
system.
aromatics plant.
17. Reduction of cooling water circulation
in
aromatics plant.
18. Reduction of cooling water circulation
in
Polyethylene plant.
19. Reduction
of
nitrogen
consumption
in
Polyethylene plant.
3. Prefractionation stripper side cut recovery.
4. Advanced simulation package for optimising
distillation column operation.
5. Optimisation of LAB (FE),
feed Kerosene
Preheat train.
6. Condensate heater in quench water circuit in
naphtha cracker.
23(cid:223) (cid:224)
GROWTH IS LIFE !
7. Superheating of dilution steam
in naphtha
cracker.
8. Condensate and flash steam recovery from boiler
blow-down in naphtha cracker.
9. Additional quench oil reboilers for enhancing
heat recovery from quench oil circuit in naphtha
cracker.
10. Utilisation of SCO vent gases for condensate
and
polishing
neutralisation in naphtha cracker.
agitation
effluent
unit
11. Hot quench water by pass across quench water
coolers to reduce pressure drop in the quench
water circuit in naphtha cracker.
12. Heat recovery scheme to recover 35 TPH steam
from condensing vapours in PTA plant.
13. Electrical motors(cid:146) efficiency audit.
14. Scheme for recovering 2.5 MMkCal/h low grade
heat by condensing column vapours and use the
same for meeting refrigeration requirements.
15. Provision of variable frequency drive in reactor
feed pump in PE-II plant.
16. Reduction of load of Dowtherm vaporisers by
reducing heat losses in the Dowtherm loop in PE
plant.
17. Condensate recovery from slurry heater in PE
plant.
18. Heat recovery from VCM column bottoms in
VCM plant to conserve steam and cooling water.
19. Utilisation of excess LP steam in the deaerators.
20. Replacement of solid GRP fans with hollow FRP
fans in utility cooling towers.
21. Firing C9 liquid fuel generated from naphtha
cracker in heat recovery steam generators.
22. Change V-Belt Pulley Drive to Flat Belt Pulley
Drive to save power.
23. Cooling water system ON/ OFF control for
operating equipment to save electric power.
24. Infrared thermography for energy conservation.
25. Installation of more numbers of Capacitors to
improve Power Factor.
(c) Impact of Measures at (a) and (b) above for
Reduction of Energy Consumption and on the
Cost of Production of Goods :
1. Replacement of combined feed exchanger with
plate type heat exchanger has resulted in saving
of Rs.220 lacs p.a. in terms of fuel.
2. Steam integration through back pressure turbine
3. Prefractionation
would lead to saving of Rs.560 lacs p.a.
side cut
recovery
operation for better heat integration will save
Rs.90 lacs p.a.
stripper
4. Preheating of steam condensate by integration
with process plants has saved low pressure steam
requirement to the tune of Rs.374 lacs p.a.
5. Heat integration of extract column bottom in
LAB plant resulted in saving of Rs.19 lacs p.a.
6. Advance process control system resulted in saving
of approximately Rs.82 lacs p.a.
7. Automatic blowdown control system for steam
boilers in fibre division resulted in savings of
Rs.59 lacs p.a.
8. Power Savings of Rs.15 lacs p.a. is expected by
replacement of new Air Dryer system.
9. Saving of fuel to the extent of Rs.116 lacs shall be
achieved by optimisation of LAB (FE) feed
Kerosene preheat train.
10. Fuel equivalent of Rs.881 lacs has been achieved
by additional generation of ELP steam from the
PTA reactor off gas, for usage in Process.
11. Augmenting quench water
tower operation
results in savings of Rs.100 lacs p.a.
12. Optimisation of quench oil tower operation
results in heat recovery equivalent to Rs.280 lacs
p.a.
13. Optimisation of plant operating parameters in
aromatics plant results in energy savings (both
steam and power) equivalent to Rs.95 lacs p.a.
14. Introduction of basket type strainers in PVC
plant results in annual saving of Rs.25 lacs p.a.
15. Utilisation of low pressure vent steam in MEG
plant results in reduction in steam consumption
equivalent to Rs.120 lacs p.a.
16. Utilisation of low pressure fuel gas from cracker
in CPP results in significant gain of Rs.1200 lacs
p.a.
17. Condensate heater in quench water circuit results
in energy saving equivalent to Rs.300 lacs p.a.
18. Superheating of dilution steam results in energy
savings equivalent to Rs.48 lacs p.a.
19. Condensate and flash steam recovery from boiler
blow down of cracker results in energy savings
equivalent to Rs.40 lacs p.a.
20. Additional quench oil reboilers to recover low
grade heat results in energy savings equivalent to
Rs.900 lacs p.a.
21. Utilisation of vent gases for condensate polishing
unit effluent neutralisation results in power
savings equivalent of Rs.3 lacs p.a.
22. Hot quench water by pass across quench water
coolers results in power savings equivalent to
Rs.5 lacs p.a.
23. Scheme to recover 35 tph steam in PTA plant
results in savings of Rs.1400 lacs p.a.
24(cid:223) (cid:224)
GROWTH IS LIFE !
24. Scheme
to recover 2.5 Gcal/h heat
from
aromatics plant results in steam saving equivalent
to Rs.73 lacs p.a.
25. Provision of variable frequency drive for reactor
feed pump in PE-II plant results in reduced
power consumption equivalent to Rs.20 lacs p.a.
26. Reducing the load of Dowtherm vaporisers
results in fuel saving equivalent to Rs.50 lacs p.a.
27. Heat recovery from VCM column bottoms
results in energy savings equivalent to Rs.68 lacs
p.a.
28. Replacement of solid GRP fans with hollow FRP
fans in utility cooling towers results in saving of
Rs.16 lacs p.a.
B. Technology Absorption :
FORM - (cid:145)B(cid:146)
Form for Disclosure of Particulars with respect to :
Research and Development (R&D)
1. Specific Areas
for
studies
in which Research
and
Development (R&D) is being carried out by the
Company :
1. Kinetic
acid
decarboxylation in presence and absence of
p-xylene and its oxidation intermediates.
2. Study of removal of Y-colour impurities in
crude terephthalic acid by further oxidation.
3. Radio-isotope tracer experiments in p-xylene
oxidation reactor to estimate residence time
and deat volume in the reactor.
acetic
12. Improved formulation package dosage and
incorporation of co-monomers for PP (film
grade) used for garment packaging.
13. PP (Raffia grade) developed for usage in
tapes, fabrics and mono-filaments.
14. PP ( Impact co-polymer grades) developed
for use in (cid:147)Batteries and Locomotive Parts(cid:148)
and for (cid:145)Luggage (cid:145) industry.
15. Usage of special chemical for emulsion
breaking
Cracker
in NGL-Naphtha
production process, resulting in enhanced
plant efficiency.
16. Development of Wool Dyeing technique to
reduce time in dyeing cycle of wool resulting
less energy
into reduced wool damage,
consumption and
retention of natural
properties of wool.
17. Development of dimensionally stable shrink-
resist machine washable wool and wool
blended Worsted Fabrics.
18. Modified bi-stretch polyester/ wool blended
fabrics meant for sports and leisure-wear
having appropriate steam stability.
19. Production of all wool worsted fabrics having
milled finish.
20. Development of high-twisted crepe fabric for
up-market requirement.
21. Production of high light-fast woven jacquard
automobile
fabrics
seat
manufacturers of international repute.
cover
for
4. Conversion of REMAX, a heavier by-product
in p-xylene manufacturing process to more
valuable benzene - toluene - xylene (BTX)
mixture.
Implementation of advanced process control
for MEG plant, EO recovery, purification,
Glycol evaporation & purification sections.
6. Faster decoking of EDC furnaces by having
5.
higher decoking temperature.
7. New Oxy-8 catalyst along with the old Oxy-4
catalyst for enhancing ethylene efficiency of
reactor/ EDC production.
9.
film grade PVC
8. New generation emulsifying agent used for
for
flexible pipe and
improving porosity and morphology.
Improved secondary emulsifying agent used
for rigid Pipe and Calendering, Wires and
Cables and other electrical applications.
10. Alteration of appropriate additives in PE
(film extrusion grades) achieving processing
speed and thermal stability.
11. Change of reactor mode for PE (injection
improved
moulding grade) resulting
product quality.
in
22. Production of all wool light weight, fine
from single weft yarn
worsted
resulting into softer feel, finish and better
formability.
fabrics
2. Benefits derived as a result of the above R&D :
a. Product Development/ Improvement :-
1. Optimisation of process parameters to
achieve improved consumption of Acetic
acid in oxidation of p-xylene to PTA.
2.
Introduction of a recovery process to
recover acetic acid and reducing the load
on effluent treatment.
3. Use of simulation techniques to develop
models for MOLEX and PAREX to
achieve optimisation of Zone ratios and
hence utilities consumption.
4.
Improvements
in on-stream days by
using alternate equipment in existing Px-
facility.
5. Optimisation of process parameters to
establish enhanced throughput in the Px-
adsorption section.
6. Pilot plant trials in eco friendly non-HF
25(cid:223) (cid:224)
GROWTH IS LIFE !
catalyst for LAB process have given
encouraging data.
7. Process modification in Back-end section
to enhance throughputs and optimise
yields.
8. New Deniers like 126/136/POY, 80/
235/68/
235/108/POY,
68/POY,
POY have been successfully developed
for achieving better performance and
texture of fabric.
9. Development of FDY products like 50/
48, 70/36, 70/72, 75/108, 50/72
BRT, 100/72 and 145/72 for special
use.
10. Low
shrinkage FDY produced and
commercialised.
11. Modification of oil application system to
improve finish pick-up.
12. 3.0 Denier trilobal tow produced for
indigenous dyes for furnishing fabrics.
8. Substituted UV-absorber
from
an
indigenous source.
3. Future Plan of Action :
1. Pentane recovery from p-xylene plant stream.
Installation of pilot - plant to conduct trials
2.
with catalyst developed for conversion of
REMAX to BTX.
3. Develop impeller and sparger design for
in p-xylene oxidation
increasing transfer
reactor.
4. Catalyst recovery from PTA residue and
incinerator ash.
5. Optically brightened staple fibre product
under development.
6. Addition of (cid:147)Define Unit(cid:148) in LAB process to
reduce diolefins.
New PVC Grades :
specific application.
(cid:149) For Powder Coating Applications, tailored
13. Improved dyeing process of natural wool
fibres with minimum damage and better
retention of natural properties.
K57 grade.
(cid:149) For Electrical cable sector, manufacture of K65
grade.
14. Developed high performance machine
(cid:149) For special Rainware applications, introduction
washable worsted fabrics.
of another K72 grade.
15. Improved bi-stretch fabrics for sports
and leisurewear.
16. Produced milled finish & high-twisted
crepe all wool worsted fabrics for up-
market requirement.
17. Wider acceptability of high light-fast
woven jacquard fabrics as auto textiles.
18. Produced superfine all wool fabrics for
international market.
b.
Import substitution : -
1.
IHI HP Compressor Gear Box internals
developed indigenously.
2. Gas Turbine 1 Naphtha filtration skid
3.
developed indigenously.
Impeller for GA - 701 sundyne pump
developed indigenously.
4. Rotary joint for PSF draw machine
developed indigenously.
5. PTA
6.
seal
brush
developed
drier
indigenously.
Indigenisation
of
engineering spares and accessories in
polyester and petrochemical area yielded
a net saving of Rs.200 lakhs in the 1997-
98.
number
of
a
(cid:149) For
high
impact
standardised receipe for K74 grade .
New PE Grades :
product applications,
1. MDPE Insulation grade.
2. LLDPE Base Resin for cable Jacketing
3. LLDPE high flow grade
4. Relene, Monofilament grade
5. UV stabilised LLDPE Rotomoulding grades
Expenditure on R&D :
a. Capital
Recurring
Total
b. Total R&D expenditure
Rs. Crs.
(cid:150)
38.96
38.96
as percentage of turnover.
0.29%
Technology absorption, adaption and innovation:
Efforts
technology
absorption, adaption and innovation and benefits
derived as a result thereof :
in brief, made
towards
1. Development of Catalyst for convertion of
REMAX to BTX.
2. Development of 0.8 denier Polyester Staple
Fibre.
3. Development of optically brightened stapled
fibre product.
7. Substituted imported Disperse Dyes with
4. Development of new FDY/ SDY products.
26(cid:223) (cid:224)
Information regarding imported technology
GROWTH IS LIFE !
Product
Technology from
Year of import
Ethylene & Cracker Products Stone & Webster Engineering
Purified Terephthalic Acid
Corp. (USA)
John Brown Engineers, UK
(ICI PLC,UK)
Mono Ethylene Glycol
Shell (Lummus Crest B.V. Holland)
PVC Expansion
Polypropylene
Polyethylene Terephthalate
Geon Co., U.S.A.
John Brown Engineers, UK
(Shell/ Union Carbide)
Sinco Engineering Italy
High Density Polyethylene
Novacor, Canada
1992
1994
1996
1994
1994
1994
1995
Status of
implementation/
absorption
Full
Full
Full
Full
Full
Full
Full
C. Foreign Exchange Earnings and Outgo
2. Total Foreign exchange used and earned
1. Activities relating to Exports,
initiatives to
increase Exports, Development of new Export
Markets for Products and Services and Export
Plan
The Company has maintained its focus as usual
on development of domestic market while
seeking export markets as opportunities arise in
most of its products. During the year, the
Company had exports worth Rs. 321.27 crores
(US$ 86.3 million)
a. Total Foreign Exchange earned
b. Total savings in foreign
exchange through products
manufactured by the Division
and deemed exports
(US$ 2,464.58 million)
Sub total (a + b)
c. Total Foreign exchange used
Rs. Crs.
565.92
9,174.88
9,740.80
5,176.69
27(cid:223) (cid:224)
Form (cid:145)A(cid:146)
Form for disclosure of particulars with respect to Conservation of Energy
GROWTH IS LIFE !
Part (cid:145)A(cid:146)
Power & Fuel Consumption
1. Electricity
a) Purchased Units (Lakhs)
Total Cost (Rs. in crores) (Note)
Rate/ Unit (Rs.)
b) Own Generation
1) Through Diesel Generator
Units (Lakhs)
Units per unit of fuel
Cost/ Unit (Rs.)
2) 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)
Average Rate per Ltr. (Rs.)
4. Others
Gas
Quantity (1000 M3)
Total Cost (Rs. in crores)
Average Rate per 1000M3 (Rs.)
Note: Excluding demand charges.
Part (cid:145)B(cid:146)
Consumption per Unit of Production
April, 97 to
March, 98
April, 96 to
March, 97
801.79
32.13
4.01
200.82
3.63
2.18
20,576.97
4.39
1.03
113,501.40
67.24
5.92
77,906.14
69.28
8.89
896.95
32.38
3.61
374.09
3.54
1.98
12,410.66
3.52
1.45
365,376.82
205.59
5.63
116,200.54
100.80
8.67
412,568.94
241,598.10
111.83
2,710.63
50.52
2,091.16
Fabrics
Per 1000 Mtrs.
Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous
Year
CRACKER
Per MT
PTA
Per MT
LAB
Per MT
MEG
Per MT
PSF
Per MT
PET
Per MT
FF
Per MT
PP
Per MT
PVC
Per MT
HDPE
Per MT
PFY
Per MT
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Electricity (KWH)
Furmace Oil (Ltrs)
Gas (SM3)
LSHS (Kgs)
1258
1229
1293
1224
10
3
31
16
726
24
653
26
416
12
377
95
324
126
314
45
849
869
481
474
267
238
373
430
1359
173
3
222
1429
1348
12
12
76
112
45
35
28
140
22
130
53
145
255
10
1
1
169
65
Note : The above figures indicate only the direct consumption and exclude consumption of power and fuel in the supporting Utilities.
28(cid:223) (cid:224)
GROWTH IS LIFE !
Auditors(cid:146) Report
Auditors(cid:146) Report
To the Members,
RELIANCE INDUSTRIES LIMITED
We have audited the attached Balance Sheet of
RELIANCE INDUSTRIES LIMITED as at 31st
March 1998 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(cid:146) Report) Order, 1988
issued by the Company Law Board in terms of
Section 227 (4A) of the Companies Act 1956, we
give in the Annexure hereto a statement on the
matters specified in paragraph 4 and 5 of the said
Order.
2. Further to our comments in the Annexure
referred to in paragraph 1 above, we state that :
a) We have obtained all the information and
explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
b)
In our opinion, proper books of account, as
required by law, have been kept by the
from our
Company, so
examination of such books.
far as appears
c) The Balance Sheet and Profit and Loss
Account referred to in this report are in
agreement with the books of account.
d)
In our opinion and to the best of our
information and according to 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) in so far as it relates to Balance Sheet, of
the state of affairs of the Company as at
31st March, 1998 and
(ii) in so far as it relates to the Profit and
Loss Account, of the Profit of the
Company for the year ended on that
date.
For Chaturvedi & Shah
Chartered Accountants
D. Chaturvedi
Partner
Mumbai
Dated : 27th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
29(cid:223) (cid:224)
GROWTH IS LIFE !
Annexure to Auditors(cid:146) Report
Annexure to Auditors(cid:146) Report
R e f e r r e d t o i n p a r a g r a p h 1 o f o u r r e p o r t o f e v e n d a t e
1. The Company has maintained proper records
showing full particulars including quantitative
details and situation of fixed assets on the basis of
information available, except in respect of certain
items of furniture and fixtures, which is being
updated. According to the
information and
explanations given to us, the fixed assets have
been physically verified by the management
during the year in a phased periodical manner
which in our opinion is reasonable, having regard
to the size of the Company and nature of the
assets. No material discrepancies were noticed on
such verification .
2. During the year, the company has revalued Plant
and Machinery located at Naroda and Patalganga
as at 1-4-97 based on the replacement cost of
those assets as per approved valuers report.
3. As explained to us, the stock of stores, spare
parts, raw materials and finished goods have been
physically verified by
the management at
reasonable intervals during the year. In our
opinion, the frequency of such verification is
reasonable having regard to the size of the
Company and the nature of its business.
In our opinion and according to the information
and explanations given to us, the procedures of
physical verification of stocks followed by the
management are reasonable and adequate in
relation to the size of the Company and the
nature of its business.
4.
5. As explained to us, there were no material
discrepancies noticed on physical verification of
the stocks of raw materials, stores and spares and
finished goods, having regard to the size of the
operations of the Company.
6. The valuation of stocks is fair and proper and is in
accordance with
accepted
the
accounting principles and is on the same basis as
in the preceding year.
normally
7. The Company has not taken any loans, secured
or unsecured from companies, firms or other
parties listed in the register maintained under
Section 301 of the Companies Act, 1956, or
from Companies under the same management as
defined under sub section (1B) of Section 370 of
the Companies Act, 1956.
8. The Company has not granted any loans, secured
or unsecured, to companies, firms or other
parties listed in the register maintained under
30(cid:223) (cid:224)
loans to
interest free
Section 301 and/ or to the companies under the
same management as defined under sub-section
(1B) of Section 370 of the Companies Act, 1956,
except
its subsidiary
companies and advance
towards promoters
contribution. Attention is invited to Note No.9
of Schedule (cid:145)O(cid:146) to the accounts. In our opinion,
having regard to the long term involvement with
these
the
and
explanations given to us in this regard, the terms
and conditions of the above are not, prima-facie,
prejudical to the interests of the Company.
considering
companies
9.
In respect of the loans and advances in the nature
of loans given by the Company to parties, other
than to the companies mentioned in para 8
above, they are generally repaying the principal
amounts as stipulated/ rescheduled and are also
generally regular in the payment of interest,
wherever stipulated.
10. In our opinion and according to the information
and explanations given to us, there are adequate
internal control procedures commensurate with
the size of the Company and the nature of its
business for the purchase of stores, raw materials
including components, plant and machinery,
equipment and other assets and for the sale of
goods.
11. In our opinion and according to the information
and explanations given to us, there are no
transactions of purchases of goods and materials
and sale of goods, materials and services made in
pursuance of contracts or arrangements entered
in the register maintained under Section 301 of
the Companies Act, 1956 and aggregating
during the year to Rs.50,000 (Rupees Fifty
Thousand only) or more in respect of any party.
12. According to the information and explanations
given to us, the company has a regular procedure
for
the determination of unserviceable or
damaged stores, raw materials and finished
goods. Adequate provision has been made in the
accounts for the loss arising on the items so
determined.
13. The Company has not accepted any deposits
from the public.
14. In our opinion reasonable records have been
maintained by the Company for the sale and
disposal of realizable by-products and scrap,
wherever significant.
GROWTH IS LIFE !
15. In our opinion the internal audit system of the
Company is commensurate with its size and the
nature of its business.
16. The Central Government has prescribed
maintenance of Cost Records under Section 209
(1)(d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company.
We have broadly reviewed the accounts and
records of the Company in this connection and
are of the opinion that, prima
facie, the
prescribed accounts and records have been made
and maintained. We have not, however, made a
detailed examination of the same.
17. According to the records of the Company,
Provident Fund and Employees State Insurance
dues have been regularly deposited with the
appropriate authorities.
18. According to information and 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, 1998 for a period of more than six
months from the date of becoming payable.
19. According to the information and explanations
given to us and on the basis of records examined
by us, no personal expenses of employees or
Directors have been charged to Revenue Account
other than those payable under contractual
obligation or
in accordance with generally
accepted business practice.
20. The Company is not a sick industrial company
within the meaning of clause (o) of sub section
(1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
21. In relation to trading activities of the company,
we are informed that there are no damaged
goods.
For Chaturvedi & Shah
Chartered Accountants
D. Chaturvedi
Partner
Mumbai
Dated : 27th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
31(cid:223) (cid:224)
GROWTH IS LIFE !
International Accountants(cid:146) Report
International Accountants(cid:146) Report
To the Board of Directors of
RELIANCE INDUSTRIES LIMITED
We have audited the attached Balance Sheet of
RELIANCE INDUSTRIES LIMITED as at 31st
March 1998 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(cid:146) Report) Order, 1988
issued by the Company Law Board in terms of
Section 227 (4A) of the Companies Act 1956, we
give in the Annexure hereto a statement on the
matters specified in paragraph 4 and 5 of the said
Order.
2. Further to our comments in the Annexure
referred to in paragraph 1 above, we state that :
a) We have obtained all the information and
explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
b)
In our opinion, proper books of account, as
Mumbai
Dated : 27th April, 1998
required by law, have been kept by the
from our
Company, so
examination of such books.
far as appears
c) The Balance Sheet and Profit and Loss
Account referred to in this report are in
agreement with the books of account.
d)
In our opinion and to the best of our
information and according to 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) in so far as it relates to Balance Sheet, of
the state of affairs of the Company as at
31st March, 1998 and
(ii) in so far as it relates to the Profit and
Loss Account, of the Profit of the
Company for the year ended on that
date.
For Touche Ross & Co.
Chartered Accountants
(P. R. Barpande)
Partner
Annexure to Report
Annexure to Report
R e f e r r e d t o i n p a r a g r a p h 1 o f o u r r e p o r t o f e v e n d a t e
1. The Company has maintained proper records
showing full particulars including quantitative
details and situation of fixed assets on the basis of
information available, except in respect of certain
items of furniture and fixtures, which is being
information and
updated. According to the
explanations given to us, the fixed assets have
been physically verified by the management
during the year in a phased periodical manner
which in our opinion is reasonable, having regard
to the size of the Company and nature of the
assets. No material discrepancies were noticed on
such verification .
2. During the year, the company has revalued Plant
and Machinery located at Naroda and Patalganga
as at 1-4-97 based on the replacement cost of
those assets as per approved valuers report.
3. As explained to us, the stock of stores, spare
parts, raw materials and finished goods have been
physically verified by
the management at
reasonable intervals during the year. In our
opinion, the frequency of such verification is
reasonable having regard to the size of the
Company and the nature of its business.
In our opinion and according to the information
and explanations given to us, the procedures of
physical verification of stocks followed by the
management are reasonable and adequate in
relation to the size of the Company and the
nature of its business.
4.
5. As explained to us, there were no material
discrepancies noticed on physical verification of
32(cid:223) (cid:224)
GROWTH IS LIFE !
the stocks of raw materials, stores and spares and
finished goods, having regard to the size of the
operations of the Company.
6. The valuation of stocks is fair and proper and is in
accordance with
accepted
the
accounting principles and is on the same basis as
in the preceding year.
normally
7. The Company has not taken any loans, secured
or unsecured from companies, firms or other
parties listed in the register maintained under
Section 301 of the Companies Act, 1956, or
from Companies under the same management as
defined under sub section (1B) of Section 370 of
the Companies Act, 1956.
loans to
interest free
8. The Company has not granted any loans, secured
or unsecured, to companies, firms or other
parties listed in the register maintained under
Section 301 and/ or to the companies under the
same management as defined under sub-section
(1B) of Section 370 of the Companies Act, 1956,
its subsidiary
except
companies and advance
towards promoters
contribution. Attention is invited to Note No.9
of Schedule (cid:145)O(cid:146) to the accounts. In our opinion,
having regard to the long term involvement with
the
and
these
explanations given to us in this regard, the terms
and conditions of the above are not, prima-facie,
prejudical to the interests of the Company.
In respect of the loans and advances in the nature
of loans given by the Company to parties, other
than to the companies mentioned in para 8
above, they are generally repaying the principal
amounts as stipulated/ rescheduled and are also
generally regular in the payment of interest,
wherever stipulated.
considering
companies
9.
10. In our opinion and according to the information
and explanations given to us, there are adequate
internal control procedures commensurate with
the size of the Company and the nature of its
business for the purchase of stores, raw materials
including components, plant and machinery,
equipment and other assets and for the sale of
goods.
11. In our opinion and according to the information
and explanations given to us, there are no
transactions of purchases of goods and materials
and sale of goods, materials and services made in
pursuance of contracts or arrangements entered
in the register maintained under Section 301 of
the Companies Act, 1956 and aggregating
during the year to Rs.50,000 (Rupees Fifty
Mumbai
Dated : 27th April, 1998
Thousand only) or more in respect of any party.
12. According to the information and explanations
given to us, the company has a regular procedure
for
the determination of unserviceable or
damaged stores, raw materials and finished
goods. Adequate provision has been made in the
accounts for the loss arising on the items so
determined.
13. The Company has not accepted any deposits
from the public.
14. In our opinion reasonable records have been
maintained by the Company for the sale and
disposal of realizable by-products and scrap,
wherever significant.
15. In our opinion the internal audit system of the
Company is commensurate with its size and the
nature of its business.
16. The Central Government has prescribed
maintenance of Cost Records under Section 209
(1)(d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company.
We have broadly reviewed the accounts and
records of the Company in this connection and
are of the opinion that, prima
facie, the
prescribed accounts and records have been made
and maintained. We have not, however, made a
detailed examination of the same.
17. According to the records of the Company,
Provident Fund and Employees State Insurance
dues have been regularly deposited with the
appropriate authorities.
18. According to information and 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, 1998 for a period of more than six
months from the date of becoming payable.
19. According to the information and explanations
given to us and on the basis of records examined
by us, no personal expenses of employees or
Directors have been charged to Revenue Account
other than those payable under contractual
in accordance with generally
obligation or
accepted business practice.
20. The Company is not a sick industrial company
within the meaning of clause (o) of sub section
(1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
21. In relation to trading activities of the company,
we are informed that there are no damaged
goods.
For Touche Ross & Co.
Chartered Accountants
(P. R. Barpande)
Partner
33(cid:223) (cid:224)
GROWTH IS LIFE !
Balance Sheet as at 31st March, 1998
Balance Sheet as at 31st March, 1998
SOURCES OF FUNDS
Shareholders(cid:146) Funds
Share Capital - Equity
Share Capital - Preference
Reserves and Surplus
Advance Against Future Receivables
[Refer Note 11, Schedule (cid:145)O(cid:146)]
Loan Funds
Secured Loans
Unsecured Loans
TOTAL
APPLICATION OF FUNDS
Fixed Assets
Gross Block
Less:Depreciation
Net Block
Capital Work-in-Progress
Investments
Current Assets, Loans and Advances
Current Assets
Interest Accrued on Investments
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Less: Current Liabilities and Provisions
Current Liabilities
Provisions
Net Current Assets
TOTAL
Significant Accounting Policies
Notes on Accounts
Schedule
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
(cid:145)A(cid:146)
(cid:145)A(cid:146)
(cid:145)B(cid:146)
931.90
187.95
10,862.75
458.45
_
8,012.49
11,982.60
300.00
8,470.94
(cid:150)
(cid:145) C (cid:146)
(cid:145) D (cid:146)
2,736.78
5,510.55
4,246.76
3,378.72
8,247.33
20,529.93
7,625.48
16,096.42
17,848.33
4,944.47
12,903.86
2,069.43
21.07
1,343.96
642.72
2,133.51
4,141.26
991.05
5,132.31
3,382.01
475.99
3,858.00
(cid:145)E(cid:146)
(cid:145) F (cid:146)
(cid:145)G(cid:146)
(cid:145)H(cid:146)
(cid:145)I(cid:146)
(cid:145)N(cid:146)
(cid:145)O(cid:146)
10,955.92
3,491.20
7,464.72
3,708.63
14,973.29
4,282.33
11,173.35
4,455.68
60.33
1,085.36
601.42
863.75
2,610.86
1,296.25
3,907.11
3,087.49
352.23
3,439.72
1,274.31
20,529.93
467.39
16,096.42
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D. Chaturvedi
Partner
R.J. Shah
Partner
Mumbai
Dated: 27th April, 1998
34(cid:223) (cid:224)
Executive Directors
Chairman
Managing Director
D.H. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.Venkitaramanan Nominee Director
R.H. Ambani
T.Ramesh U. Pai
Y.P. Trivedi
V.M. Ambani
}
}
Directors
Secretary
8,730.33
289.60
(95.27)
8,924.66
15.23
6,961.62
169.97
410.14
7,556.96
1,367.70
45.00
1,322.70
(cid:150)
60.67
26.65
1,410.02
Profit and Loss Account for the year ended 31st March, 1998
Profit and Loss Account for the year ended 31st March, 1998
GROWTH IS LIFE !
Schedule
1997-98
(Rs. in crores)
1996-97
Rs.
Rs.
Rs.
Rs.
INCOME
Sales
Other Income
Variation in Stock
EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest
Depreciation
Less : Transferred from General Reserve
[Refer Note 3, Schedule O]
(cid:145) J (cid:146)
(cid:145)K(cid:146)
(cid:145) L(cid:146)
(cid:145) M (cid:146)
13,403.78
335.60
368.28
14,107.66
14.19
11,206.93
503.55
1,460.27
792.95
1,352.33
942.19
667.32
12,391.99
1,715.67
63.00
1,652.67
(85.67)
662.79
36.00
2,265.79
Profit Before Tax
Provision for Taxation
Profit for the year
Add:
Taxation for earlier years
Balance brought forward from last year
Investment Allowance (Utilised) Reserve Written Back
Amount Available For Appropriations
APPROPRIATIONS
Capital Redemption Reserve
Debenture Redemption Reserve
General Reserve
Interim Dividend on Preference Shares
Proposed Dividend on Equity Shares
Tax on Dividend
[including for previous year Rs. 29.92 crores]
Balance Carried to Balance Sheet
Significant Accounting Policies
Notes on Accounts
(cid:145)N(cid:146)
(cid:145)O(cid:146)
(cid:150)
64.47
752.65
10.33
326.81
63.64
200.00
97.99
150.00
_
299.24
_
1,217.90
1,047.89
747.23
662.79
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D. Chaturvedi
Partner
R.J. Shah
Partner
Mumbai
Dated: 27th April, 1998
35(cid:223) (cid:224)
Executive Directors
Chairman
Managing Director
D.H. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.Venkitaramanan Nominee Director
R.H. Ambani
T.Ramesh U. Pai
Y.P. Trivedi
V.M. Ambani
}
}
Directors
Secretary
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)A(cid:146)
SHARE CAPITAL
Authorised:
120,00,00,000 Equity Shares of Rs. 10 each
(55,00,00,000)
(cid:150)
15% Cumulative Redeemable
(5,50,000) Preference Shares of Rs. 100 each
10,00,00,000 Preference Shares of Rs. 100 each
(3,00,00,000)
(cid:150)
Unclassified Shares of Rs. 10 each
(14,45,00,000)
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
1,200.00
(cid:150)
1,000.00
(cid:150)
550.00
5.50
300.00
144.50
2,200.00
1,000.00
Issued, Subscribed and Paid up:
Equity
93,37,49,403 Equity Shares of Rs. 10 each fully
(46,03,69,802) paid up
Less: Calls in arrears - by others
933.75
1.85
460.37
1.92
931.90
458.45
Preference
1,27,45,000 10% Cumulative Redeemable
((cid:150)) Preference Shares of Rs. 100 each
fully paid-up (Redeemable at par
on 15th September, 2000)
127.45
10,50,000 10.5% Cumulative Redeemable
((cid:150)) Preference Shares of Rs. 100 each
fully paid-up (Redeemable at par
on 15th September, 2002)
50,00,000 10.5% Cumulative Redeemable
((cid:150)) Preference Shares of Rs. 100 each
fully paid-up (Redeemable at par
on 17th September, 2002)
10.50
50.00
(cid:150)
(cid:150)
(cid:150)
187.95
1,119.85
(cid:150)
458.45
Of the above Equity Shares:
1. (a) 48,17,70,552
(1,56,80,100)
(b) 18,05,78,290
Shares were allotted as Bonus Shares by capitalisation of Premium and Reserves.
Shares were allotted pursuant to Schemes of Amalgamation without payments being
received in cash.
(c) 21,04,19,721
Shares were allotted on conversion/surrender of Debentures and Bonds, conversion of
(20,31,30,572) Term Loans, exercise of Warrants, against Global Depository Shares (GDS) and reissue of
forfeited equity shares.
2. Refer to Note 1(e)(iv) of Schedule (cid:145)C(cid:146) and Note 1 to Schedule (cid:145)D(cid:146) in respect of option on unissued share
capital.
36(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)B(cid:146)
RESERVES & SURPLUS
Revaluation Reserve
On Revaluation of Fixed Assets
[Refer Note 3, Schedule (cid:145)O(cid:146)]
Capital Reserves
As per last Balance Sheet
Add: On Redemption of Debentures
On Assignment of Interest Free Sales Tax Loan
Less: Adjusted on Sales Tax Assessment
Capital Redemption Reserve
As per last Balance Sheet
Add : Transferred from Profit and Loss Account
Less : Capitalised on Issue of Bonus Shares
Share Premium Account
As per last Balance Sheet
Add : Received during the year
Less : Capitalised on Issue of Bonus Shares
Issue Expenses
Less: Calls in arrears - by others
Debenture Redemption Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Investment Allowance (Utilised) Reserve
As per last Balance Sheet
Less : Transferred to Profit and Loss Account to
the extent no longer required
Taxation Reserve
As per last Balance Sheet
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
2,771.06
(cid:150)
185.26
0.01
(cid:150)
185.27
2.03
205.80
(cid:150)
205.80
205.80
4,823.75
180.05
5,003.80
260.29
6.42
4,737.09
10.74
471.04
64.47
274.70
36.00
2.45
0.43
182.38
185.26
(cid:150)
183.24
185.26
5.80
200.00
205.80
(cid:150)
(cid:150)
205.80
4,823.75
(cid:150)
4,823.75
(cid:150)
(cid:150)
4,823.75
11.15
4726.35
4,812.60
373.05
97.99
535.51
471.04
301.35
26.65
238.70
10.00
274.70
10.00
37(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)B(cid:146) (Contd.)
RESERVES & SURPLUS
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
General Reserve
As per last Balance Sheet
Less: Transferred to Profit and Loss Account
[Refer Note 3, Schedule (cid:145)O(cid:146)]
Add : Transferred from Profit and Loss Account
1,390.30
792.95
597.35
752.65
2,182.49
942.19
1,240.30
150.00
Profit and Loss Account
SCHEDULE (cid:145)C(cid:146)
SECURED LOANS
A) DEBENTURES
1,350.00
1,047.89
10,862.75
1,390.30
662.79
8,012.49
Non-Convertible Debentures
Less: Calls in arrears - by others
2,413.54
0.68
2,012.98
2.32
2,412.86
2,010.66
B) TERM LOANS
1. From Banks
a) Foreign Currency Loans
b) Rupee Loans
2. From Financial Institutions
a) Foreign Currency Loans
b) Rupee Loans
C) WORKING CAPITAL LOANS
From Banks
0.53
200.00
200.53
38.15
19.26
57.41
710.48
240.00
950.48
841.23
18.47
859.70
257.94
65.98
2,736.78
1,810.18
425.92
4,246.76
Notes
1.
(a) Debentures referred to in A to the extent of Rs. 729.04 crores are secured by way of legal/equitable mortgage
on the properties 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 to the extent of Rs. 1,342.50 crores are secured/to be secured by legal mortgage
in English form on the properties situated at Hazira, District Surat, in the state of Gujarat and at Patalganga,
District Raigad, in the State of Maharashtra.
(c) Debentures referred to in A to the extent of Rs. 180 crores are secured/to be secured by legal mortgage in
English form on the properties situated at Patalganga, District Raigad in the State of Maharashtra and on the
properties situated at Jamnagar, in the State of Gujarat.
(d) Debentures referred to in A to the extent of Rs. 162 crores are secured by way of second and subservient charge,
created by legal mortgage in English form on the properties situated at Patalganga, District Raigad in the State
of Maharashtra.
38(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)C(cid:146) (Contd.)
(e) Debentures referred to in A consists of (i) 14% Debentures of Rs. 100 each aggregating Rs. 27.50 crores which
are redeemable at a premium of 5% on the face value of the Debentures, at the end of the eighth year from the
respective dates of allotment commencing from March, 1999. (ii) 12.5 % Debentures of Rs. 95 each aggregating
Rs. 341.54 crores are redeemable at par on the expiry of 10 years from the date of allotment i.e. 26th February,
2002 with an option to the Board to redeem at any time after 26th February, 1999. (iii) 18 % Debentures of
Rs. 100 each aggregating Rs. 60 crores which are redeemable at par in three equal installments on the expiry
of sixth, seventh and eighth year from the date of allotment; the redemption will commence from July 1999.
(iv) 14 % Debentures of Rs. 50 each aggregating Rs. 300 crores which are redeemable at par on the expiry of
sixth year from the date of allotment i.e. 12th January, 2000. Warrant issued with the debentures entitle the
holders thereof to apply at the option of the warrantholders for 12,00,00,000 Equity Shares of Rs. 10 each
of the Company. (v) 16.50 % 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 September, 2002. (vi)
14.08 % Debentures of Rs. 100 each aggregating Rs. 312.50 crores which are redeemable at par in three equal
annual installments, commencing from the expiry of fifth year from the respective dates of allotment; commencing
February 2000. (vii) 14.50 % Debentures of Rs. 10,00,000 each, aggregating Rs. 112 crores which are redeemable
at par on the expiry of fifth year from the date of allotment; i.e. 19th May, 2002. (viii) 13.50 % Debentures
of Rs. 1,00,00,000 each, aggregating Rs. 50 crores which are redeemable at par in three installments on the
expiry of the fifth, sixth and seventh year from the date of allotment; the redemption to commence from 15th
September, 2002. (ix) 13.50 % Debentures of Rs. 1,00,00,000 each aggregating Rs. 100 crores which are
redeemable at par on the expiry of the tenth year from the date of allotment; i.e. on 28th November, 2007.
(x) 12.25 % Debentures of Rs. 1,00,00,000 each aggregating Rs. 325 crore which are redeemable at par in
three equal installments on the expiry of fifth, sixth and seventh year from the date of allotment; the redemption
will commence from January, 2003. (xi) 12.50 % Debentures of Rs. 1,00,00,000 each aggregating Rs. 110
crores which are redeemable at par on the expiry of seventh year from the date of allotment i.e. January, 2005.
(xii) 13.75 % Debentures of Rs. 1,00,00,000 each aggregating Rs. 110 crores which are redeemable at par on
the expiry of the tenth year from the respective date(s) of allotment i.e. January, 2008. (xiii) 13.75 % Debenture
of Rs. 1,00,00,000 each aggregating Rs. 80 crores which are redeemable at par on the expiry of the tenth year
from the respective date(s) of allotment i.e. January, 2008. (xiv) 14.75 % Debentures of Rs. 1,00,00,000 each
aggregating Rs. 200 crores which are redeemable at par in three equal annual installments, commencing from
the expiry of eighth year from the respective dates of allotment; redemption will commence from February,
2006. (xv) Debentures aggregating Rs. 0.03 crores are held by Directors.
2.
(a) Term Loans referred to in B(1) (b) above, to the extent of Rs. 200 crores are secured/to be secured on the
properties situated at Jamnagar, in the State of Gujarat and at Patalganga, District Raigad in the State of
Maharashtra.
(b) Term Loans referred to in B(2) (a) above, to the extent of Rs. 37.14 crores are secured/to be secured on the
properties situated 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 Loan referred to in B(2) (a) above, to the extent of Rs. 1.01 crores are secured by an exclusive charge
by way of hypothecation of specific items of machinery.
(d) Term Loans referred to in B(1) (a) above, to the extent of Rs. 0.53 crores are secured by guarantee issued by
one of the Bankers to the company against hypothecation of specific items of plant and machinery.
(e) Term Loans referred to in B(2) (b) above, to the extent of Rs. 19.26 crores are secured/to be secured only on
the dwelling units constructed/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 1(b) and Term Loans referred
to in Note 2(b) above, shall rank pari passu, inter-se and charges created / to be created on the Debentures
referred to in Note 1(c) and Term Loans referred to in Note 2(a) above, shall rank pari passu, inter-se.
(a) Working Capital Loans from Banks referred to in C above 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. excluding current assets of unincorporated joint venture.
(b) Secured Loans include loans of Rs. 21.37 crores and Debentures of Rs. 27.50 crores repayable/redeemable
3.
4.
within one year.
39(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)D(cid:146)
UNSECURED LOANS
A)
Convertible Bonds Due 1999
3.5%
i)
8.125% Bonds Due 2005
ii)
iii)
9.375% Notes Due 2026
iv) 10.375% Notes Due 2016
v) 10.5%
Notes Due 2046
8.25% Notes Due 2027
vi)
vii) 10.25% Notes Due 2097
7.625% Notes Due 2027
viii)
ix)
8.75% Notes Due 2007
x) Syndicated Loan Due 2002
B) Short Term Loans
i) Banks
ii) Others
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
315.79
592.43
394.95
394.95
394.95
845.19
394.95
592.43
992.48
592.43
(cid:150)
(cid:150)
5,510.55
502.81
538.73
359.15
359.15
359.15
768.58
359.15
(cid:150)
(cid:150)
(cid:150)
80.00
52.00
3,378.72
Note :
1. The Bonds referred to in A(i) are convertible into 1,74,88,775 Equity Shares of Rs. 10 each of the
Company at the option of the bondholders.
2. Short Term Loans from banks represents Commercial Paper of Rs. Nil. (Previous year Rs. 80 crores.)
(Maximum amount outstanding at anytime during the year Rs. 690 crores).
40(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)E(cid:146)
FIXED ASSETS
Description
As At
Additions Deduc-
As At
Gross Block
Leasehold Land
Freehold Land
Development Rights/
Producing Properties
Buildings
1-4-97
Rs.
54.41
4.78
46.65
541.17
Rs.
(cid:150)
7.37
551.75
515.25
tions
Rs.
31-3-98
Rs.
(cid:150)
(cid:150)
(cid:150)
(cid:150)
54.41
12.15
598.40
1,056.42
Upto
1-4-97
Rs.
1.76
(cid:150)
1.72
64.22
Plant & Machinery
9,342.70
*5,604.33
5.11 14,941.92
3,261.62
*1,365.64
Electrical Installation
Factory Equipments
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopter
Jetties
Total
337.68
148.49
51.78
47.84
174.15
25.41
180.86
103.41
62.72
11.01
25.78
1.20
21.29
(cid:150)
(cid:150)
0.56
0.25
5.78
(cid:150)
(cid:150)
(cid:150)
441.09
210.65
62.54
67.84
175.35
46.70
180.86
52.55
18.64
14.96
9.85
42.85
4.55
18.48
17.84
8.53
5.71
5.65
9.54
1.65
8.63
10,955.92
6,904.11
11.70 17,848.33
3,491.20
1,460.27
Previous Year
6,885.50
4,081.02
10.60 10,955.92
2,141.34
1,352.33
Capital Work-in-Progress
Depreciation
For the Deduc-
Year
Rs.
0.46
(cid:150)
18.15
18.47
(Rs. in crores)
Net Block
As At
As At
31-3-98
Rs.
31-3-97
Rs.
52.19
12.15
52.65
4.78
Upto
31-3-98
Rs.
2.22
(cid:150)
19.87
82.69
578.53
973.73
37.17
476.95
4,622.52
10,319.40
6,088.84
70.39
27.03
20.63
13.42
52.39
6.20
27.11
370.70
183.62
41.91
54.42
122.96
40.50
153.75
285.13
129.85
36.82
37.99
131.30
20.86
162.38
4,944.47
12,903.86
7,464.72
3,491.20
7,464.72
2,069.43
3,708.63
tions
Rs.
(cid:150)
(cid:150)
(cid:150)
(cid:150)
4.74
(cid:150)
0.14
0.04
2.08
(cid:150)
(cid:150)
(cid:150)
7.00
2.47
NOTES :
a) Leasehold Land includes Rs. 0.11 crore in respects of which lease-deeds are pending execution.
b) Buildings includes cost of shares in co-operative societies Rs. 0.01 crore ( Previous year Rs.0.01 crore).
c) Capital Work-in-Progress includes :
(i) Rs. 189.86 crores on account of pre-operative expenses (Previous year Rs. 302.04 crores).
(ii) Rs. 35.96 crores on account of cost of construction materials at site (Previous year Rs. 252.98 crores).
(iii) Rs. 76.47 crores on account of advance against Capital Expenditure (Previous year Rs. 464.34 crores).
d) Additions and Capital Work-in-Progress include Rs. 349.37 crores on account of exchange difference (net).
(Previous year Rs. 119.20 crores).
e) The Ownership of Jetties vests with Gujarat Maritime Board. However, under an agreement with Gujarat
Maritime Board, the company has been permitted to use the same at a concessional rate.
* Refer to Note 3, Schedule (cid:145)O(cid:146).
41(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)F(cid:146)
INVESTMENTS
A. LONG TERM INVESTMENTS
Government and other securities
Unquoted
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
7 Years National Savings Certificates
(Deposited with Sales Tax Dept) (Face
Value Rs.5,000; Previous year Rs.5,000)
Post Office Time Deposit
Indira Vikas Patra (Previous year Rs.15,000)
Kisan Vikas Patra
(Deposited with Sales Tax Dept.)
(Rs.20,000; Previous year Rs.20,000)
Trade Investments
In Equity Shares
Quoted, fully paid up
6,05,79,809 Reliance Capital Ltd. of Rs. 10 each
(6,05,80,969)
69,80,000 Reliance Industrial Infrastructure Ltd. of
(69,80,000) Rs. 10 each
Unquoted, fully paid up
60 New Piece Goods Bazar Co. Ltd. of
(60) Rs. 100 each
(Rs.17,000; Previous year Rs.17,000)
5 Bombay Gujarat Art Silk Vepari Mahajan
(5) Co-operative Shop & Warehouse Society
Ltd. of Rs.200 each
(Rs. 1,000; Previous year Rs.1,000)
165 The Art Silk Co-operative Society Ltd.of
(165) Rs. 100 each
(Rs.16,500; Previous year Rs.16,500)
20 The Bombay Market Art Silk Co-operative
(20) (Shops & Warehouses) Society Ltd., of Rs.200
each, (Rs. 4,000; Previous year Rs.4,000)
15 Pandesara Industrial Co-operative Society
(15) Ltd. of 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
300 Reliance Petroproducts Private Ltd. of
(300) Rs.10 each
(Rs.3,000; Previous year Rs.3,000)
800 Reliance Global Trading Private Ltd. of
(800) Rs.10 each
(Rs.8,000; Previous year Rs. 8,000)
12,800 Reliance Telecom Ltd. of Rs. 10 each
( - )
42(cid:223) (cid:224)
(cid:150)
0.20
0.52
(cid:150)
0.72
486.54 *
16.58
503.12
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
3.93
(cid:150)
(cid:150)
0.01
3.94
(cid:150)
0.20
(cid:150)
(cid:150)
0.20
0.72
0.20
486.56
16.58
503.14
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
3.93
(cid:150)
(cid:150)
(cid:150)
3.93
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)F(cid:146) (Contd.)
INVESTMENTS
Unquoted, partly paid up
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
225 Crimpers Industrial Co-operative Society
(225) Ltd. of Rs. 100 each Rs. 25 paid up
(Rs.5,625; Previous year Rs. 5,625)
1,000 Reliance Petroproducts Private Ltd. of
(1,000) Rs. 10 each Rs. 2.50 paid up
(Rs.2,500; Previous year Rs. 2,500)
1,250 Reliance Global Trading Private Ltd. of
(1,250) Rs. 10 each Rs. 2.50 paid up
(Rs.3,125; Previous year Rs. 3,125)
In Preference Shares
Unquoted, fully paid up
86,00,000 6% Cumulative Redeemable Preference
(86,00,000) Shares of Reliance Enterprises Ltd. of
Rs. 100 each
32,00,000 14% Cumulative Redeemable Preference
((cid:150))
Shares of Reliance Ports & Terminals Ltd.
of Rs. 100 each
(cid:150)
(cid:150)
(cid:150)
(cid:150)
86.00
32.00
118.00
In Debentures
Unquoted, partly paid up
2,23,52,830 14% Optionally Fully Convertible
((cid:150))
Debentures of Reliance Petroleum Ltd.
of Rs 770 each, Rs 38.50 paid up
86.06
[company under the same management]
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 Industrial Investments and
(14,75,04,400) Holdings Ltd. of Rs.10 each
0.21
147.50
147.71
In Debentures of Subsidiary Companies
Unquoted, fully paid up
8,83,143 Zero Coupon Optionally Convertible
(8,83,843) Unsecured Debentures of Reliance
Industrial Investments and Holdings Ltd.
of Rs.5,000 each
441.58
2,79,90,000 6.25 % Unsecured Convertible Debentures
(2,79,90,000) of Reliance Industrial Investments and
Holdings Ltd. of Rs. 100 each
279.90 @
721.48
(cid:150)
(cid:150)
(cid:150)
(cid:150)
86.00
(cid:150)
86.00
(cid:150)
711.12
593.07
0.21
147.50
147.71
441.93
279.90
721.83
869.19
869.54
43(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)F(cid:146) (Contd.)
INVESTMENTS
Other Investments
In Equity Shares
Quoted, fully paid up
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
15,51,574 BSES Ltd. of Rs. 10 each
(15,51,599)
17,82,602 Larsen & Toubro Ltd. of Rs. 10 each
(17,82,637)
Unquoted, fully paid up
1,000 Air Control & Chemical Engineering
(1,000) Co. Ltd. of Rs. 100 each
TOTAL (A)
B. CURRENT INVESTMENTS
Other Investments
In Equity Shares
Quoted, fully paid up
80 ICICI Ltd. of Rs.10 each
(80) (Rs.1,491; Previous year Rs. 1,491)
120 Indian Petrochemicals Corporation Ltd.
(120) of Rs.10 each (Rs. 15,360; Previous year
Rs. 15,360)
100 Container Corporation of India Ltd.
(100) of Rs.10 each
(Rs. 7,187.40; Previous year Rs. 7,187.40)
Unquoted, fully paid up
4,80,000 HIM Teknoforge Ltd. of Rs.10 each
(4,80,000)
In Debentures
Quoted, fully paid up
624 12.5% Fully convertible Debentures of
(624) ICICI Ltd.of Rs. 450 each
33.73
43.37
77.10
0.01
(cid:150)
(cid:150)
(cid:150)
(cid:150)
1.20
0.03
44(cid:223) (cid:224)
33.73
43.37
77.10
0.01
77.11
1,658.14
77.11
1,539.92
(cid:150)
(cid:150)
(cid:150)
(cid:150)
1.20
0.03
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)F(cid:146) (Contd.)
INVESTMENTS
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
In Bonds
Taxable, unquoted, fully paid up
8 14% Sardar Sarovar Nigam Ltd. Bonds of
((cid:150)) Rs. 1,000 each
(cid:150) Unsecured Redeemable Industrial Finance
(200) Corporation Ltd. Growing Income
Scheme Bonds of Rs.5,000 each
In Units
Quoted
3,06,400 SBI Magnum Multiplier Plus 1993
(4,70,100) of Rs. 10 each
85,600 Unit Trust of India (1964 Scheme)
(85,600) of Rs.10 each
50,00,000 Reliance Growth Fund of Rs.10 each
(50,00,000)
Unquoted
14,28,262 Kothari Pioneer Prima Fund of Rs.10 each
(1,47,82,770)
1,06,42,017 Reliance Vision Fund of Rs.10 each
(1,50,00,000)
10,000 Reliance Liquid Fund of Rs. 10 each
((cid:150))
0.04
(cid:150)
0.04
0.31
0.13
5.00
5.44
1.43
10.64
0.01
12.08
(cid:150)
0.10
0.10
0.48
0.13
5.00
5.61
14.78
15.00
(cid:150)
29.78
In Investment Management Account
(cid:150) With Union Bank Of Switzerland
(cid:150) With Credit Suisse
1,777.73
827.67 #
2,605.40
1,935.64
943.40
2,879.04
TOTAL (B)
TOTAL INVESTMENTS (A) + (B)
2,624.19
4,282.33
2,915.76
4,455.68
45(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)F(cid:146) (Contd.)
INVESTMENTS
AGGREGATE VALUE OF
Quoted Investments
Unquoted Investments
Movements during the year
Purchased & Sold
Bonds
17% Sardar Sarovar Nigam Ltd.
14% Sardar Sarovar Nigam Ltd.
13.5% Syndicate Bank
13.5% Reliance Telecom Ltd.
Mutual Fund Units
Reliance Income Fund
Certificate of Deposit
ABN Amro Bank
Commerze Bank
As at
31st March, 1998
(Rs. in crores)
As at
31st March, 1997
Book
Value
Rs.
Market
Value
Rs.
Book
Value
Rs.
Market
Value
Rs.
585.69
3,696.64
Face Value
Rs.
491.12
(cid:150)
585.88
3,869.80
429.81
(cid:150)
Nos.
Cost
Rs. in crores
1,000
50,000
1,00,000
1,000
3,000
62
500
9,00,000
0.30
0.31
5.00
90.00
10 98,07,43,859
986.50
4,00,00,000
5,00,00,000
3.94
4.92
* Includes 3,57,14,300 shares having a lock-in period up to January, 2000.
# Includes Rs. 336.78 crores being balance of unutilised monies raised by issue, on or after
13th September, 1996.
@ Interest rate revised from 8% to 6.25% with effect from 1st April, 1997.
46(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)G(cid:146)
CURRENT ASSETS
INTEREST ACCRUED ON INVESTMENTS
INVENTORIES
(Certified 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 Banks
With Others
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
21.07
60.33
464.66
187.32
54.78
637.20
90.13
21.35
111.48
21.35
90.13
552.59
0.56
40.56
0.80
2,091.59 *
348.72
412.94
50.74
272.96
1,343.96
1,085.36
114.60
8.50
123.10
8.50
114.60
486.82
642.72
601.42
0.57
115.99
0.97
746.22
2,133.51
4,141.26
863.75
2,610.86
* Represents deposits of
a) Rs. 648.29 crores with Union Bank of Switzerland
(Previous year Rs. 565.27 crores) (Maximum amount
outstanding at anytime during the year Rs. 648.29
crores.)
b) Rs. 1,443.30 crores with Credit Suisse (Previous year
Rs.1.37 crores) (Maximum amount outstanding at
anytime during the year Rs. 1,443.30 crores).
c) Rs. Nil with Bankers Trust Company (Previous year
Rs.179.58 crores) (Maximum amount outstanding at
anytime during the year Rs. 179.58 crores).
Includes Rs. 587.19 crores being balance of unutilised
monies raised by issue, on or after 13th September,
1996.
d)
47(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules forming part of the Balance Sheet
Schedules forming part of the Balance Sheet
SCHEDULE (cid:145)H(cid:146)
LOANS AND ADVANCES
UNSECURED - (CONSIDERED GOOD)
Loans to subsidiary companies
Advances recoverable in cash or in kind or for
value to be received
Deposits
Balance with Customs, Central Excise Authorities, etc.
As at
31st March, 1998
Rs.
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
Rs.
13.33
763.41
75.98
138.33
991.05
13.43
731.74
213.89
337.19
1,296.25
NOTES :
Advances includes :
(i) Rs. 0.21 crore
to Officers (Maximum amount
outstanding at any time during the year Rs. 0.21 crore)
(ii) Rs. 120.00 crores to Reliance Petroleum Limited, a
Company under
towards
advance against promoters(cid:146) contribution. (Previous
year Rs. 15.37 crores) (Maximum amount outstanding
anytime during the year Rs. 306.75 crores)
same management
the
(iii) Rs. 51.96 crores towards Preference Shares/Debenture
Application money pending allotment. (Previous year
Rs. 164.67 crores)
SCHEDULE (cid:145)I(cid:146)
CURRENT LIABILITIES AND 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
Provision for Income Tax
Proposed Dividend
Tax on Dividend
*
Includes for capital expenditure Rs. 610.05 crores.
(Previous year Rs. 1,063.84 crores) and acceptances of
Rs. 95.45 crores (Previous year Rs. 537.68 crores)
48(cid:223) (cid:224)
3,190.49 *
12.89
3.10
175.53
2.73
5.77
108.00
326.81
32.68
2,923.91
12.19
3.13
148.26
3,382.01
3,087.49
3.40
4.59
45.00
299.24
(cid:150)
475.99
3,858.00
352.23
3,439.72
Schedules forming part of the Profit and Loss Account
Schedules forming part of the Profit and Loss Account
GROWTH IS LIFE !
SCHEDULE (cid:145)J(cid:146)
OTHER INCOME
Export Incentives
Dividends :
From Subsidiaries
From Current Investments
From Long Term Investments
[Tax Deducted at source Rs. 34,240;
(Previous year Rs. 8.07 crores)]
Interest Received :
From Current Investments
From Long Term Investments
From Others
[Tax Deducted at source Rs. 9.23 crores;
(Previous year Rs.9.78 crores)]
Profit on Sale of Current Investments (net)
Profit on Sale of Long Term Investments (net)
Profit on Sale of Assets
Miscellaneous Income
SCHEDULE (cid:145)K(cid:146)
VARIATION IN STOCKS
STOCK-IN-TRADE (at close)
Finished goods
Stock-in-process
STOCK-IN-TRADE (at commencement)
Finished goods
Stock-in-process
Rs.
(cid:150)
0.07
20.48
244.03
17.50
27.40
1997-98
Rs.
0.34
(Rs. in crores)
1996-97
Rs.
0.04
Rs.
11.80
1.14
19.67
20.55
32.61
131.60
8.41
42.25
288.93
9.38
(cid:150)
0.46
15.94
335.60
182.26
41.61
2.94
0.16
29.98
289.60
637.20
54.78
272.96
50.74
272.96
50.74
691.98
323.70
383.24
35.73
323.70
368.28
418.97
(95.27)
49(cid:223) (cid:224)
Schedules forming part of the Profit and Loss Account
Schedules forming part of the Profit and Loss Account
GROWTH IS LIFE !
SCHEDULE (cid:145)L(cid:146)
MANUFACTURING AND OTHER EXPENSES
RAW MATERIALS CONSUMED
INTER-DIVISIONAL TRANSFERS
MANUFACTURING EXPENSES
Rs.
1997-98
Rs.
3,646.43
3,684.60
Rs.
(Rs. in crores)
1996-97
Rs.
1,932.19
2,288.68
Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Machinery Repairs
Building Repairs
Labour, Processing and Machinery hire Charges
Excise Duty
Lease Rent
Exchange Differences (Net)
639.58
301.69
56.21
21.85
118.33
1,893.13
54.33
(27.49)
357.62
323.71
30.13
20.37
111.89
1,283.85
70.38
(29.18)
3057.63
2,168.77
229.06
169.20
PAYMENTS TO AND PROVISIONS
FOR EMPLOYEES
Salaries, Wages and Bonus
Contribution to Provident Fund, Gratuity Fund,
Superannuation Fund, Employee(cid:146)s State Insurance
Scheme, Pension Scheme, Labour Welfare Fund etc.
Employee(cid:146)s Welfare and other amenities
25.75
55.05
SALES & DISTRIBUTION EXPENSES
Samples, Sales Promotion and Advertisement Expenses
Brokerage and Commision
Warehousing and Distribution Expenses
Sales Tax
55.27
70.75
109.14
0.04
ESTABLISHMENT EXPENSES
Insurance
Rent
Rates and Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Professional Fees
Loss on Sale of Discarded Assets
General Expenses
Wealth Tax
Charity & Donations
44.58
31.31
35.30
22.80
46.86
1.90
88.00
2.15
119.88
2.50
10.30
Less : Pre-operative Expenses of Projects Under Commissioning (net)
SCHEDULE (cid:145)M(cid:146)
INTEREST
Debentures
Fixed Loans
Others
50(cid:223) (cid:224)
309.86
235.20
405.58
11,339.30
132.37
11,206.93
426.85
73.74
2.96
503.55
18.78
50.15
25.20
50.50
50.30
5.87
31.27
26.25
24.73
20.38
27.37
1.74
76.18
1.71
78.45
1.00
1.52
238.13
131.87
290.60
7,050.24
88.62
6,961.62
114.63
23.44
31.90
169.97
GROWTH IS LIFE !
Significant Accounting Policies
Significant Accounting Policies
SCHEDULE (cid:145)N(cid:146)
A. Basis of Preparation of Financial Statements
a) The financial statements have been prepared under the historical cost convention in accordance with the
generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted
consistently by the company, except for certain fixed assets which are revalued.
b) The company generally follows mercantile system of accounting and recognises significant items of
income and expenditure on accrual basis.
B. Fixed Assets
Fixed Assets are stated at cost, net of Modvat and includes amounts added on revaluation, 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.
C. Depreciation
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: on petrochemical, polyester and captive power plants
which have commenced commercial production before 01-04-95, depreciation has been provided on written
down value method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956;
on additions, or extensions forming an integral part of existing plants, including incremental cost arising on
account of translation of foreign currency liabilities for acquisition of fixed assets, depreciation has been
provided, as aforesaid over the residual life of the respective plants; on development rights and producing
properties, depreciation has been provided in proportion of Oil and Gas Production achieved; Premium on
leasehold land is amortised over the period of lease; cost of jetty has been 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; on revalued assets the depreciation has been charged as aforesaid over the residual life
of the assets.
D. Foreign Currency Transactions
a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at
the time of the transaction.
b) Monetary 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 proportionate 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-monetary 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 and Loss Account except in cases where they relate to the acquisition of fixed
assets in which case they are adjusted to the carrying cost of such assets.
E. Investments
a) Current investments are carried at the lower of cost and quoted/fair value, computed category wise.
Long Term Investments are stated at cost. Provision for diminution in the value of long term investments
is made only if, such a decline is other than temporary in the opinion of the management.
b) Cost is arrived at by applying specific identification method.
F. Inventories
Inventories are valued at cost except for finished goods and by-products. Finished goods are valued at lower
of cost or market value and by-products are valued at net realisable value.
G. Sales
Sales include inter-divisional transfers, sales during trial run and are net of discounts.
51(cid:223) (cid:224)
GROWTH IS LIFE !
Significant Accounting Policies
Significant Accounting Policies
SCHEDULE (cid:145)N(cid:146) (Contd.)
H. 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.
I. Employee Retirement Benefits
Company(cid:146)s contributions 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.
J. 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.
K. Leases
Lease rentals are expensed with reference to lease terms and other considerations, except for rentals
pertaining to the period upto the date of commissioning of the assets which are capitalised.
L. Accounting for Oil and Gas Activity
Assets and liabilities as well as income and expenditure in respect of the Unincorporated joint venture with
ONGC 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(cid:146)s financial statements, according to the participating interest of
the company.
M. Issue Expenses
Issue Expenses pertaining to the projects are capitalised.
52(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)O(cid:146)
1.
(a) The previous year(cid:146)s figures have been reworked, regrouped, rearranged and/or reclassified wherever
necessary.
(b) Figures have been presented in (cid:145)crores(cid:146) of rupees with two decimals in accordance with the approval
received from the Company Law Board. Figures less than Rs. 50,000 have been shown at actuals in
brackets.
2. Sales include Inter-divisional transfers of Rs. 3,684.60 crores (Previous Year Rs. 2,288.68 crores).
3. The Company has, based on a valuation made by approved valuers, revalued as at 1-4-97 the Plant and
Machinery located at Patalganga and Naroda. The resultant appreciation aggregating to Rs. 2,771.06 crores
has been added to the Gross Block of the Fixed Assets and credited to Revaluation Reserve. Consequent to
the revaluation there is an additional charge for depreciation of Rs. 792.95 crores and an equivalent amount
has been withdrawn from General Reserve which is credited to the Profit and Loss Account.
4. 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. 2.24 crores.(Previous year
Rs. 0.18 crore).
5.
(a) Auditors(cid:146) Remuneration :
i) Audit Fees
ii) Tax Audit Fees
iii) For Certification and Consultation in finance and tax matters
iv) Expenses reimbursed
(b) Cost Audit Fees :
6. Managerial Remuneration :
Salaries
i)
ii) Contribution to Provident Fund and Superannuation Fund
iii) Provision for Gratuity
iv) Perquisites
v) Commission
1997-98
0.90
0.20
0.70
0.10
1.90
0.02
(Rs.in crores)
1996-97
0.75
0.20
0.70
0.09
1.74
0.01
1997-98
(Rs.in crores)
1996-97
2.22
0.30
0.06
0.78
2.57
5.93
1.07
0.17
0.32
0.41
(cid:150)
1.97
53(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)O(cid:146) (Contd.)
Computation of net profit in accordance with Section 198 read with Section 309(5) of the Companies Act, 1956.
Profit before taxation
Add: Depreciation as per accounts
Provision for Doubtful Debts
Loss on Sale of Assets
Managerial Remuneration
Less: Depreciation under Section 350 of the Companies Act, 1956
Profit on Sale of Assets
Profit on Sale of Investments
Net profit for the year
Commission to the whole-time directors @ 0.25% of the above
Restricted in accordance with the resolution of shareholders
(Rs. in crores)
1997-98
1,715.67
667.32
12.85
2.15
5.57
2,403.56
1,280.70
0.46
9.38
1,113.02
2.78
2.57
7. A sum of Rs. 1.14 crores (net credit) (Previous year Rs. 3.57 crore net credit) is adjusted to General Expenses
representing Net Prior Period Items.
8. The income-tax assessments of the Company have been completed up to Assessment Year 1995-96. The total
demand raised by the Income-Tax Department upto the said Assessment Year is Rs. 349.53 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, in
respect of disputed matters which are pending in appeals.
Provision for Taxation for the current year has been made after taking into consideration benefits admissible
under the provisions of the Income Tax Act, 1961.
9. The Company has an investment of Rs.0.21 crore in the Share Capital, loan of Rs.13.03 crores in Devti
Fabrics Ltd., (DFL), a wholly-owned subsidiary company. The losses of DFL exceed its paid-up Capital and
Reserves as on 31st March, 1998. In view of the long term involvement of the company in the said company,
no provision has been made in the accounts for the probable loss that may arise.
10. Fixed Assets taken on lease amount to Rs. 399.92 crores. (Previous year Rs. 379.58 crores). Future
obligations towards lease rentals under the lease agreements as on 31st March, 1998 amount to Rs. 126.87
crores. (Previous year Rs. 180.27 crores).
11. The company has agreed to assign a portion of receivables in respect of future sales from its Oil & Gas
operations. Pending this assignment an advance of Rs. 300 crores has been received from the proposed
assignees which is shown as (cid:145)Advance Against Future Receivables(cid:146) in the Balance Sheet.
54(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)O(cid:146) (Contd.)
12. PRE-OPERATIVE EXPENSES
(In respect of Projects up to 31st March 1998, to be capitalised.)
(Rs. in crores)
Opening Balance
Add: Pre-operative expenditure transferred from
Profit and Loss account
Lease Expenses and Hire Charges
Interest
Issue Expenses
Less : Capitalised during the year
Closing Balance
13. CONTINGENT LIABILITIES
Rs.
132.37
20.57
254.29
21.64
1997-98
Rs.
302.04
428.87
730.91
541.05
189.86
Rs.
88.62
18.12
394.80
27.17
1996-97
Rs.
395.67
528.71
924.38
622.34
302.04
As at
31st March, 1998
Rs.
(Rs. in crores)
As at
31st March, 1997
Rs.
(a) Estimated amount of contracts remaining to be executed
on capital accounts and not provided for
1,725.56
1387.05
(b) Outstanding guarantees 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 parties
(d) Liability in respect of bills discounted with Banks
(e) Uncalled liability on partly paid Shares/Debentures
(Previous year Rs. 33,750)
(f) Claims against the company/disputed liabilities not
acknowledged as debts
(g) Sales tax deferral liability assigned
1,001.61
1438.54
1,385.98
65.30
1,635.11
155.87
235.56
1222.65
29.86
(cid:150)
47.70
238.14
14. The Department of Company Affairs, Government of India vide its Order No. 46/49/98-CL.III dated 17th
April, 1998 issued under section 211 (4) of the Companies Act, 1956, has exempted the company from
publication of certain information in the Profit and Loss Account under paras 3 (i) (a), 3 (ii) (a) and 3 (ii) (b)
of Part II, Schedule VI to the Companies Act, 1956.
55(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)O(cid:146) (Contd.)
15. LICENSED AND INSTALLED CAPACITY
(a) (i) Ethylene
(ii) Propylene
(iii) Benzene
(iv) Butadiene and Other C4s
(v) Toluene
(vi) Xylene
(b) Purified Terepthalic Acid
(c) Polypropylene
(d) Poly Vinyl Chloride
(e) Polyester Staple Fibre/Polyester Chips
(f) High/Linear Low Density Polyethylene
(Swing Plant)
(g) Polyester Filament Yarn/Polyester Chips
(h) (i) Mono Ethylene Glycol
(ii) Higher Ethylene Glycol
(iii) Ethylene Oxide
(i) Linear Alkyl Benzene
(j) Man-made Fibre spun yarn on worsted
system (Spindles)
(k) Man-made Fibre on cotton system (Spindles)
(l)
(i) Man-made Fabrics (Looms)
(ii) Knitting M/c
(m) (i) Chlorine
(ii) Caustic Soda
(iii) Hydrogen
(n)Paraxylene
(o) (i) Naphtha
(ii) LPG
(iii) Kerosene
(iv)
Diesel
(p) LDPE
(q) Poly Ethylene Terephthalate
(r) Polyester Staple Fibre Fill
Licensed Capacity
UNIT
1997-98
1996-97
Installed Capacity
1996-97
1997-98
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.
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.
1,550,000 1,550,000
755,000
291,000
465,000
197,000
165,000
755,000
291,000
465,000
197,000
165,000
750,000
365,000
235,000
225,000
197,000
165,000
750,000
365,000
235,000
225,000
197,000
165,000
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
975,000
550,000
360,000
270,000
360,000
270,000
235,000
235,000
N.A.
N.A.
320,000
160,000
N.A.
600,000
75,000
75,000
N.A.
N.A.
500,000
62,500
75,000
N.A.
152,300 + 152,300 +
300,000
37,500
50,000
80,000
200,000
12,500
10,000
80,000
N.A.
N.A.
N.A.
N.A.
24,094
24,094
23,040
23,040
N.A.
N.A.
N.A.
N.A.
708,800 1,104,000
800,000 1,268,000
31,860
1,400,000 1,400,000
20,160
720,000
110,000
180,000
360,000
720,000
110,000
180,000
360,000
150,000
150,000
602
28
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
N.A.
N.A.
N.A.
N.A.
80,000
30,000
714
28
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
N.A. - Delicensed vide Notification No. 477 (E) Dated 27th July, 1991.
+ Includes 32,300 M.T. based on average Denier of 40.
56(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)O(cid:146) (Contd.)
16. PRODUCTION OF FINISHED PRODUCTS MEANT FOR SALE
Fabrics
Polyester Filament Yarn
Polyester Staple Fibres
PET
PTA
LAB
Ethylene Glycol
PVC
PE
PP
Crude Oil
Gas
Normal Paraffin
Fibre Fill
Ethylene
Propylene
Benzene
Xylene
Toluene
UNIT
1997-98
1996-97
Mtrs. in Lacs
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
BBTU
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
401.84
2,20,573
2,41,522
18,839
2,16,833
94,908
1,59,770
2,70,067
3,16,377
3,56,788
1,40,906
11,493
18,800
7,447
43,006
1,102
1,00,456
18,773
6,510
433.62
1,46,145
1,31,296
(cid:150)
20,076
86,089
45,031
1,89,596
1,65,277
88,664
1,48,187
(cid:150)
20,087
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
17. VALUE OF IMPORTS ON C.I.F. BASIS IN RESPECT OF
Raw Materials
Stores and Spares, Dyes and Chemicals
Capital goods
18. EXPENDITURE IN FOREIGN CURRENCY ON ACCOUNT OF
Interest on foreign currency loans
Interest on Debentures held by Non-residents on repatriation basis (Gross)
Technical Know-how & Engineering Fees
Oil and Gas Activity
Other Matters
(Rs. in crores)
1996-97
Rs.
1997-98
Rs.
2,726.58
224.08
1,307.51
1,606.54
139.89
986.75
413.96
1.11
104.39
211.74
115.81
223.42
1.55
251.21
329.46
116.32
57(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)O(cid:146) (Contd.)
19. VALUE OF RAW MATERIALS CONSUMED
Imported
Indigenous
20. VALUE OF STORES, CHEMICALS AND
PACKING MATERIALS CONSUMED
Imported
Indigenous
21. EARNINGS IN FOREIGN EXCHANGE
1997-98
1996-97
Rs. in
% of total
crores Consumption
Rs. in
% of total
crores Consumption
3,176.16
470.27
3,646.43
87.10 1,586.98
345.21
12.90
82.13
17.87
100.00 1,932.19
100.00
1997-98
1996-97
Rs. in
% of total
crores Consumption
Rs. in
% of total
crores Consumption
219.49
420.09
639.58
34.32
65.68
102.29
255.33
28.60
71.40
100.00
357.62
100.00
Export of goods on FOB basis
Interest
22. EXPENDITURE ON RESEARCH & DEVELOPMENT
Total Revenue Expenditure including amortisation of
deferred costs and Unamortised Deferred Research and
Development Expenditure
23. REMITTANCE IN FOREIGN CURRENCY
ON ACCOUNT OF DIVIDEND
The Company has paid dividend in respect of shares held by
Non-Residents on repatriation basis. This inter-alia includes
portfolio investment and direct investment, where the amount
is also credited to Non-Resident External Account (NRE A/c).
The exact amount of dividend remitted in foreign currency
cannot be ascertained. The total amount remittable in this
respect is given herein below :
(a) Number of Non-resident shareholders
(b) Number of Equity Shares held by them
1997-98
Rs.
321.27
244.65
(Rs. in crores)
1996-97
Rs.
66.62
130.16
38.96
17.69
19,006
20,404
11,00,13,404 10,16,20,914
(c) (i) Amount of dividend paid (Gross) (Rs. in crores)
71.51
60.97
Tax deducted at source: Rs. Nil.(Previous year Rs.8.81 crores.)
(ii) Year to which dividend relates
1996-97
1995-96
58(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
24. BALANCE SHEET ABSTRACT AND COMPANY(cid:146)S GENERAL BUSINESS PROFILE
I Registration Details
Registration No. :
Balance sheet Date:
1 1 - 1 9 7 8 6
3 1 - 0 3 - 9 8
State Code:
II. Capital Raised during the year (Amount Rs.Crores)
1 1
Public Issue :
Bonus Issue :
Conversion of Bonds :
N I L
4 6 6 . 0 9
7 . 2 9
Rights Issue :
Private Placement :
N I L
1 8 7 . 9 5
III.Position of Mobilisation and Deployment of Funds (Amount Rs. crores)
2 4 3 8 7 . 9 3
Total Assets :
Total Liabilities :
Sources of Funds
2 4 3 8 7 . 9 3
Paid-up Capital :
Advance Against
Future Receivables:
Secured Loans :
1 1 1 9 . 8 5
Reserves & Surplus :
1 0 8 6 2 . 7 5
3 0 0 . 0 0
2 7 3 6 . 7 8
Unsecured Loans :
5 5 1 0 . 5 5
Application of Funds
Net Fixed Assets :
Net Current Assets:
1 4 9 7 3 . 2 9
1 2 7 4 . 3 1
IV. Performance of Company (Amount Rs.crores)
1 3 4 0 3 . 7 8
1 7 1 5 . 6 7
1 7 . 6 0
V. Generic Names of Three Principal Products of Company (as per monetary terms)
Turnover :
Profit Before Tax :
Earnings per share in Rs.
Total Expenditure :
Profit After Tax :
Dividend : Rs. per share
Investments :
4 2 8 2 . 3 3
1 2 3 9 1 . 9 9
1 6 5 2 . 6 7
3 . 5 0
Item Code No. (ITC Code) :
2 9 1 7 2 . 0 0
Product Description :
P U R I F I E D
Item Code No. (ITC Code) :
5 4 0 2 4 2 . 0 0
Product Description :
P O L Y E S T E R
Item Code No. (ITC Code) :
3 9 0 1 2 0 . 0 0
Product Description :
P O L Y E T H Y L E N E
( P E )
T E R E P H T H A L I C
A C I D
( P T A )
F I L A M E N T
Y A R N
( P F Y )
As per our Report of even date
For and on behalf of the Board
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D. Chaturvedi
Partner
R.J. Shah
Partner
Mumbai
Dated: 27th April, 1998
59(cid:223) (cid:224)
Executive Directors
Chairman
Managing Director
D.H. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
S.Venkitaramanan Nominee Director
R.H. Ambani
T.Ramesh U. Pai
Y.P. Trivedi
V.M. Ambani
}
}
Directors
Secretary
GROWTH IS LIFE !
Statement Pursuant to Section 212 of the Companies Act, 1956,
Statement Pursuant to Section 212 of the Companies Act, 1956,
relating to Company(cid:146)s Interest in Subsidiary Companies.
relating to Company(cid:146)s Interest in Subsidiary Companies.
Name of Subsidiary Company
Devti Fabrics Ltd.
Reliance Industrial
Investments and
Holdings Ltd.
1. The financial year of the Subsidiary
31st March, 1998
31st March, 1998
Companies ended on
2. Date from which they become subsidiary
30th September, 1985
30th December, 1988
companies
3. a. Number of shares held by Reliance
Industries Ltd. with its nominees
in the subsidiaries at the end of the
financial year of the subsidiary companies.
b. Extent of interest of holding company
at the end of the financial year of the
subsidiary companies.
4. The net aggregate amount of the
subsidiary companies Profit/(Loss) so
far as it concerns the members of the
holding Company.
a. Not dealt with in the holding
Company(cid:146)s accounts.
i) For the financial year ended
31st March 1998
2,10,070 Equity Shares
of the face value of
Rs.10 each fully paid-up
100 %
14,75,04,400 Equity
Shares of the face
value of Rs.10 each
fully paid-up
100 %
Rs. 96.66 Lakhs
(Rs. 16.07 Lakhs)
ii) For the previous financial years
(Rs. 1293.83 Lakhs)
Rs. 55.26 Lakhs
of the subsidiary companies since they
became the holding Company(cid:146)s
subsidiaries.
b. Dealt with in holding company(cid:146)s
accounts:
i) For the financial year ended
31st March, 1998
ii) For the previous financial years of
the subsidiary Companies since they
became the holding Company(cid:146)s
subsidiaries
NIL
NIL
NIL
Rs.2,673.89 lakhs
As per our Report of even date
As per our Report of even date
For and on behalf of the Board
For and on behalf of the Board
For Chaturvedi & Shah
For Chaturvedi & Shah
Chartered Accountants
Chartered Accountants
For Rajendra & Co.
For Rajendra & Co.
Chartered Accountants
Chartered Accountants
D. Chaturvedi
D. Chaturvedi
Partner
Partner
R.J. Shah
R.J. Shah
Partner
Partner
Mumbai
Mumbai
Dated: 27th April, 1998
Dated: 27th April, 1998
60(cid:223) (cid:224)
Executive Directors
Executive Directors
Chairman
Chairman
Managing Director
Managing Director
D.H. Ambani
D.H. Ambani
A.D. Ambani
A.D. Ambani
N.R. Meswani
N.R. Meswani
H.R. Meswani
H.R. Meswani
S.Venkitaramanan Nominee Director
S.Venkitaramanan Nominee Director
R.H. Ambani
R.H. Ambani
T.Ramesh U. Pai
T.Ramesh U. Pai
Y.P. Trivedi
Y.P. Trivedi
V.M. Ambani
V.M. Ambani
}
}
}
}
Directors
Directors
Secretary
Secretary
GROWTH IS LIFE !
Cash Flow Statement Annexed to the Balance Sheet for the
Cash Flow Statement Annexed to the Balance Sheet for the
period April 1997-March 1998
period April 1997-March 1998
A: CASHFLOW FROM OPERATING ACTIVITIES :
Net Profit after tax as per P & L Account
Adjusted for :
1997-98
Rs. in crores
1996-97
Rs.
Rs.
Rs.
Rs.
1,652.67
1,322.70
(3.57)
45.00
3.91
1.55
1,352.33
(942.19)
(48.07)
(77.16)
(182.26)
169.97
(339.89)
(325.74)
988.86
Net Prior Year Adjustments
Tax Provision
Provision for Doubtful Debts
Loss on Sale of Discarded Assets
Depreciation
Transferred from General Reserve
Adjusted on Sales Tax Assessment
Effects of Exchange Rate Change
Profit on Sale of Investments/Dividend Income
Interest/Other Income
Interest Expenses
(1.14)
63.00
12.85
1.69
1,460.27
(792.95)
(2.03)
(34.46)
(29.92)
(288.93)
503.55
Operating Profit before Working Capital Changes
Adjusted for :
Trade & Other Receivables
Inventories
Trade Payables
312.99
(258.59)
713.12
Cash Generated from Operations
Interest Paid
Net Prior Year Adjustments
Taxes Paid
Net Cash From Operating Activities
B: CASHFLOW FROM INVESTING ACTIVITIES :
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments
Sale of Investments
Movement in Investment Management Account
Movement in Loan
Interest Income
Dividend Income
Net Cash Used in Investing Activities
891.93
2,544.60
767.52
3,312.12
(737.54)
1.14
(100.67)
2,475.05
(2,324.77)
3.00
(1,209.58)
1,118.68
273.64
(93.92)
317.27
20.54
(1,895.14)
319.51
1,642.21
323.23
1,965.44
(521.25)
3.57
(30.00)
1,417.76
(2,407.74)
6.57
(516.49)
772.64
(2,879.04)
209.60
146.16
24.54
(4,643.76)
61
(cid:223) (cid:224)
GROWTH IS LIFE !
Cash Flow Statement Annexed to the Balance Sheet for the
Cash Flow Statement Annexed to the Balance Sheet for the
period April 1997-March 1998
period April 1997-March 1998
1997-98
Rs. in crores
1996-97
Rs.
Rs.
Rs.
Rs.
C: CASHFLOW FROM FINANCING ACTIVITIES :
Proceeds from Issue of Share Capital (net)
Advance Against Future Receivables
Redemption of Preference Share Capital
Proceeds from Long Term Borrowings
Repayment of Long Term Borrowings
Short Term Loans
Dividends Paid
Effects of exchange rate change
Net Cash used in Financing Activities
Net Increase in Cash & Cash Equivalents (A+B+C)
Opening Bal of Cash & Cash Equivalents
Closing Bal of Cash & Cash Equivalents
182.01
300.00
(cid:150)
3,488.26
(2,757.87)
(431.83)
(339.83)
249.11
689.85
1,269.76
863.75
2,133.51
1.56
(cid:150)
(200.00)
3,446.34
(358.37)
(152.43)
(273.59)
70.93
2,534.44
(691.56)
1,555.31
863.75
Mumbai
Dated: 27th April, 1998
For and on behalf of the Board
A.D. Ambani
Managing Director
Auditors Report
We have verified the attached Cash Flow Statement of Reliance Industries Ltd., derived from audited financial
statements and the books and records maintained by the Company for the year ended 31st March, 1998 and 31st
March, 1997 and found the same in agreement therewith.
For Chaturvedi & Shah
Chartered Accountants
D. Chaturvedi
Partner
Mumbai
Dated: 27th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
62
(cid:223) (cid:224)
GROWTH IS LIFE !
Reconciliation of Profit determined under Indian GAAP
Reconciliation of Profit determined under Indian GAAP
to Net Income in accordance with US GAAP and
to Net Income in accordance with US GAAP and
International Accounting Standards (IAS)
International Accounting Standards (IAS)
The following reconciliation between accounting principles generally accepted in India ((cid:147)Indian GAAP(cid:148)),
accounting principles generally accepted in the United States ((cid:147)US GAAP(cid:148)) and International Accounting
Standards ((cid:147)IAS(cid:148)) has been provided as additional disclosure to assist readers who may be unfamiliar with Indian
GAAP.
It may, however be noted that 97% of the revenue of the Company are earned in India and therefore the accounts
should be read as per Indian GAAP.
Reconciliation of Profit determined under Indian GAAP with Net Income according to US GAAP
Year ended 31st March, 1998
Profit after tax determined under Indian GAAP
Adjustments to conform with US GAAP
Share in Income of Affiliates
Consolidation of Subsidiaries
Leases
Indirect Preoperative Expenses
Foreign Currency
Depreciation
Deferred Income Tax
Issue Expenses
Consolidated Net Income in accordance with US GAAP
1 US $ = Rs. 39.495 (Exchange rate as on 31.03.98)
Notes
Rs.
(Crores)
US $
(Millions)
1
2
3
4
5
6
7
8
1653
42
53
16
(50)
(55)
40
(117)
(10)
1572
419
11
13
4
(13)
(14)
10
(30)
(2)
398
Notes to Reconciliation of Profit determined under Indian GAAP with Net Income according to
US GAAP.
1. Share in Income of Affiliates
Under Indian GAAP, investments in affiliates, where RIL generally owns 20% to 50%, are carried at cost.
Income from such affiliates is recognised to the extent dividends are declared.
Under US GAAP, investments in unconsolidated affiliates are accounted for using the equity method,
whereby the investment is carried at RIL(cid:146)s related share of the net assets of such affiliates. RIL records as
income its share of the net earnings, determined in accordance with US GAAP, of such affiliates.
2. Consolidation of Subsidiaries
US GAAP requires the preparation of consolidated financial statements, whereas Indian GAAP has no such
requirement. Accordingly, under US GAAP, net income includes the earnings of subsidiaries, determined in
accordance with US GAAP. The earnings of RIL(cid:146)s subsidiaries are higher under US GAAP as they include
gains on the valuation of certain investments which are marked to market.
3. Leases
Under Indian GAAP, no distinction is made between an operating and a capital lease. Under US GAAP, leases
are classified into operating or capital, based on the underlying characteristics of the lease. Capital leases are
accounted for as though the company had entered into an obligation and invested in an asset, resulting in the
charge to operations being the aggregate of depreciation on the asset and interest on the outstanding
obligation. For leases under Indian GAAP, the charge to operations consists of the lease rental. Adjustment
has been made for reversal of lease rental and the revenue charge of depreciation and interest for capital leases.
4. Indirect Preoperative Expenses
Under Indian GAAP indirect preoperative expenses incurred during construction are capitalised. Under US
GAAP, such indirect costs must be expensed as incurred.
63(cid:223) (cid:224)
GROWTH IS LIFE !
5. Foreign Currency
Under Indian GAAP, gains or losses arising from the conversion of foreign currency denominated liabilities
that have been undertaken for the acquisition of fixed assets, is capitalised as a part of the cost of fixed assets
and amortised over the remaining useful life of such assets. Under US GAAP, such gains or losses, as well as
the unrealised gain or loss on certain foreign currency denominated investments are required to be included
in the determination of net income.
6. Depreciation
Depreciation has been adjusted to take account of the adjustments to fixed assets for indirect preoperative
expenses and foreign currencies.
7. Deferred Income Tax
The provision for taxation under Indian GAAP is based on the estimated tax currently payable and no
provision is required to be made for deferred income taxes for the future tax effects of past transactions. US
GAAP requires that a provision for such deferred income taxes be made.
8. Issue Expenses
Under Indian GAAP issue expenses are capitalised or charged to share premium. Under US GAAP, debt issue
cost are amortised over the life of the debt. Bonus share issue expenses are charged to revenue.
Reconciliation of Profit determined under Indian GAAP with Net Income according to IAS
Year ended 31st March, 1998
Profit after tax determined under Indian GAAP
Adjustments to conform with IAS
Share in Income of Affiliates
Consolidation of Subsidiaries
Leases
Indirect Preoperative Expenses
Foreign Currency
Depreciation
Deferred Income Tax
Issue Expenses
Consolidated Net Income in accordance with IAS
1 US $ = Rs. 39.495 (Exchange rate as on 31.03.98)
Notes
Rs.
(Crores)
US $
(Millions)
1
2
3
4
5
6
7
8
1653
32
(7)
16
(50)
(55)
40
(117)
(7)
1505
419
9
(2)
4
(13)
(14)
10
(30)
(2)
381
Notes to Reconciliation of Profit determined under Indian GAAP with Net Income according to
IAS.
1. Share in Income of Affiliates
Under Indian GAAP, investments in affiliates, where RIL generally owns 20% to 50%, are carried at cost.
Income from such affiliates is recognised to the extent dividends are declared.
Under IAS, investments in unconsolidated affiliates are accounted for using the equity method, whereby the
investment is carried at RIL(cid:146)s related share of the net assets of such affiliates. RIL records as income its share
of the net earnings, determined in accordance with IAS, of such affiliates.
2. Consolidation of Subsidiaries
IAS requires the preparation of consolidated financial statements, whereas Indian GAAP has no such
requirement. Accordingly, under IAS, net income includes the earnings of subsidiaries, determined in
accordance with IAS.
3. Leases
Under Indian GAAP, no distinction is made between an operating and a capital lease. Under IAS, leases are
classified into operating or capital. Capital leases are accounted for as though the company had entered into
an obligation and invested in an asset, resulting in the charge to operations being the aggregate of
depreciation on the asset and interest on the outstanding obligation. For leases under Indian GAAP, the
64(cid:223) (cid:224)
GROWTH IS LIFE !
charge to operations consists of the lease rental. Adjustment has been made for reversal of lease rental and the
revenue charge of depreciation and interest for capital leases.
4. Indirect Preoperative Expenses
Under Indian GAAP indirect preoperative expenses incurred during construction are capitalised. Under IAS,
such indirect costs must be expensed as incurred.
5. Foreign Currency
Under Indian GAAP, gains or losses arising from the conversion of foreign currency denominated liabilities
that have been undertaken for the acquisition of fixed assets, is capitalised as a part of the cost of fixed assets
and amortised over the remaining useful life of such assets. Under IAS, such gains or losses, as well as the
unrealised gain or loss on certain foreign currency denominated investments are required to be included in
the determination of net income.
6. Depreciation
Depreciation has been adjusted to take account of the adjustments to fixed assets for indirect preoperative
expenses and foreign currencies. Effect of revaluation has not been considered in IAS.
7. Deferred Income Tax
The provision for taxation under Indian GAAP is based on the estimated tax currently payable and no
provision is required to be made for deferred income taxes for the future tax effects of past transactions. IAS
requires that a provision for such deferred income taxes be made.
8. Issue Expenses
Under Indian GAAP issue expenses are capitalised or charged to share premium. Under IAS, bonus share
issue expenses are charged to revenue.
INTERNATIONAL ACCOUNTANTS(cid:146) REPORT
To The Board of Directors
Reliance Industries Limited
We have audited the accompanying reconciliations of (1) Profit After Tax determined under accounting
principles generally accepted in India ((cid:147)Indian GAAP(cid:148)) to Consolidated Net Income in accordance with
accounting principles generally accepted in the United States ((cid:147)US(cid:160)GAAP(cid:148)), and (2) profit determined under
Indian GAAP to Consolidated Net Income in accordance with International Accounting Standards ((cid:147)IAS(cid:148))
((cid:147)the Reconciliations(cid:148)) for the year ended 31st March 1998 for Reliance Industries Limited ((cid:147)Reliance(cid:148)). These
Reconciliations are the responsibility of Reliance(cid:146)s management. Our responsibility is to express an opinion on
the Reconciliations based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the Reconciliations are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the Reconciliations. An audit also includes assessing the accounting principles used, as well as
evaluating the overall Reconciliation presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the Reconciliations referred to above present fairly, in all material respects, the adjustments
required to restate Profit After Tax as determined under Indian GAAP to Consolidated Net Income in accordance
with US GAAP and IAS, respectively.
For Touche Ross & Co.
Chartered Accountants
P.R. Barpande
Partner
Mumbai
27th April 1998
65(cid:223) (cid:224)
GROWTH IS LIFE !
Value Creation
Value Creation
In the annual report for the year 1997-98, the Company has incorporated two value added parameters to measure
the creation of value for shareholders which is the basic tenet of corporate governance.
MARKET VALUE ADDED (MVA)
The most reliable measure of management(cid:146)s long run success in adding value is something known as Market Value
Added. (MVA). The aim of corporate management is to maximise the amount by which the company(cid:146)s market
value exceeds the capital supplied by the company(cid:146)s investors.
MVA is a far more revealing figure than a simple rise in market capitalisation (a measure of size rather than
success), because the latter fails to consider the money investors put up.
MVA = Current market value of debt and equity - Economic book value
Economic book value = Share capital + Free reserves + Debt
Year ended March 31,
Current market value of debt and equity
Less : Economic book value
MARKET VALUE ADDED
1996
21,471
12,470
9,001
1997
26,703
15,540
11,163
Rs. Crores
1998
32,645
17,395
15,250
TOTAL SHAREHOLDERS(cid:146) RETURN (TSR)
Total Shareholders(cid:146) Return represents the change in capital value of a company over a one year period, plus
dividends, expressed as a gain or loss percentage of the beginning capital value.
Total Shareholders(cid:146) Return = Incremental gain(Loss)/ Beginning capital value
Year ended March 31,
Closing capital value
Less : Beginning capital value
Add : Dividend
Incremental Gain/ (Loss)
TOTAL SHAREHOLDERS(cid:146) RETURN (%)
1996
9,576
12,027
(2,451)
276
(2,175)
(18%)
1997
11,820
9,576
2,244
299
2,543
27%
Rs. Crores
1998
16,518
11,820
4,698
327
5,025
43%
The increase in MVA and TSR clearly displays strong upward trend in shareholders(cid:146) value which is in line with our
commitment. It also mirrors the growth on account of successful implementation of Hazira Complex.
66(cid:223) (cid:224)
GROWTH IS LIFE !
DEVTI FABRICS LIMITED
Devti Fabrics Limited
78(cid:223) (cid:224)
GROWTH IS LIFE !
Directors(cid:146) Report
Directors(cid:146) Report
To the Members,
Your Director present the 14th Annual Report
together with the Audited Statement of Accounts for
the Financial year ended 31st March, 1998.
Operations
The Company has earned profit of Rs. 96.66 lacs
during the year under review as against Rs. 108.97
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.
Directors
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 (Particulars
of Employees) Rules, 1975 read with Section
217 (2A) of the Companies Act, 1956. Hence, no
information is required to be appended to this report
in this regard.
Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo
Particulars required to be furnished in this report
under Section 217 (1) (e) of the Companies Act,
1956, relating
to conservation of energy and
technology absorption are not applicable for the year
under review, and hence not furnished. There was no
foreign exchange earnings or outgo during the year.
Deposits
The Company has not accepted any deposits from
the Public. Hence, no information is required to be
appended to this report.
Auditors
the conclusion of
The Auditors of the Company, M/s. Chaturvedi
& Shah and M/s. Rajendra & Co. hold office
the ensuing Annual
until
received
General Meeting. The Company has
their
letters
from
appointment,
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.
them
if made, would be within
the effect
that
to
For and on behalf of the Board
}
Directors
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
Mumbai
Dated : 25th April, 1998
Devti Fabrics Limited
67(cid:223) (cid:224)
GROWTH IS LIFE !
Auditors(cid:146) Report
Auditors(cid:146) Report
To
The Members of Devti Fabrics Limited
We have audited the attached Balance Sheet of
DEVTI FABRICS LIMITED as at 31st March, 1998
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 (Auditor(cid:146)s Report) order, 1988,
issued by the Company Law Board in terms of
Section 227 (4A) of the Companies Act, 1956,
we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the
said order.
2. Further to our comments
in the Annexure
referred to in Paragraph 1 above, we state that:
(a) We have obtained all the information and
explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion proper books of account as
required by law have been kept by the
from our
Company, so
far as appears
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
to
the above,
incurred
the Company had
substantial losses in the past resulting in the
erosion of its net worth, the accounts of the
Company are prepared on going concern
basis. Subject
in our
opinion and to the best of our information
and according to the explanations given
to us, the said Balance Sheet and Profit
together with
and Loss Account
the notes thereon, give the
information
required by the Companies Act, 1956, in
the manner so required and give a true and
fair view :
read
(i) in so far as it relates to the Balance Sheet
of the state of affairs of the company as at
31st March, 1998 and
(ii) in so far as it relates to the Profit and
(cid:145)profit(cid:146) of the
the year ended on
Loss Account of the
Company
that date.
for
For Chaturvedi & Shah
Chartered Accountants
H.P. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
Devti Fabrics Limited
68(cid:223) (cid:224)
GROWTH IS LIFE !
Annexure to Auditors(cid:146) Report
Annexure to Auditors(cid:146) Report
R e f e r r e d t o i n P a r a g r a p h 1 o f o u r R e p o r t o f e v e n d a t e
1. The Company has maintained proper records
showing full particulars including quantitative
details and situation of fixed assets. We are
informed that most of the assets have been
physically verified by the management during the
year and that no material discrepancies were
noticed on such verification. In our opinion, the
frequency of
is
reasonable having regard to the size of the
Company and the nature of its assets.
such physical verification
2. None of the fixed assets have been revalued
during the year.
3. According to the information and explanations
given to us, the stocks of stores, spare parts and
raw materials have been physically verified by the
Management at the end of the year. In our
opinion, the frequency of such verification is
reasonable.
4.
of
In our opinion, the procedures of physical
verification
the
Management are reasonable and adequate in
relation to the size of the Company and the
nature of its business.
followed
stocks
by
5. As explained to us, there were no material
discrepancies noticed on physical verification of
the stocks.
6.
In our opinion and on the basis of our
examination of stock and other records the
valuation of stocks is fair and proper and is in
accordance with
accepted
the
accounting principles and is on same basis as in
the preceding year.
normally
7. The Company has
interest
taken an
companies,
in
from
as
under
free
unsecured
loan from the holding Company.
It has not taken any other
loans, secured
or unsecured,
firms or
listed
other parties
register
maintained
Section
the
of
Companies Act, 1956, or
from companies
the
under
meaning of Section 370 (1B) of the Companies
terms and conditions of
Act, 1956. The
the above
in our opinion,
prima-facie prejudicial to the interests of the
Company.
same management within
loan are not,
301
the
the
8. The Company has not granted any loans, secured
or unsecured to companies, firms or other parties
listed in the register maintained under Section
301 of the Companies Act, 1956 or to companies
under the same management within the meaning
of Section 370 (1B) of the Companies Act, 1956.
9. The Company has not given any
loans or
advances in the nature of loans.
10. In our opinion and according to the information
and explanations given to us, there are adequate
internal control procedures commensurate with
the size of the Company and the nature of its
business with regard to purchase and sale of
goods.
to us,
11. In our opinion and according to the information
and explanations given
there are
no transactions of purchase of goods or materials
and sale of goods materials and services made in
pursuance of contracts or arrangement entered in
the register maintained under Section 301 and
aggregating during the year to Rs. 50,000 or
more in respect of each party.
12. As explained to us, in the opinion of the
management the raw materials and spares are not
damaged or unserviceable
and hence no
provision is made for the same.
13. The Company has not accepted any deposit from
the public.
14. As there was no manufacturing activity during
the year the question of by products or realisable
scrap does not arise.
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. Since there
is no manufacturing
activity during the year we have no comments to
offer on the said clause.
17. We have been
informed that provisions of
Provident Fund and Employees(cid:146) State Insurance
are not applicable to the Company for the year.
18. According to the information and explanations
given to us, no undisputed amounts payable in
respect of Income-Tax, Wealth-Tax, Customs
Duty, Sales Tax
and Excise Duty were
outstanding as on 31st March, 1998 for a period
of more than six months from the date they
became payable.
Devti Fabrics Limited
69(cid:223) (cid:224)
GROWTH IS LIFE !
19. According to the information and explanations
given to us, no personal expenses of Directors
have been charged to revenue account.
20. According to the information and explanations
given to us and in our opinion the Company has
become a Sick Industrial Company within the
meaning of clause (O) of sub-section (1) of
Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
21. In respect of trading activities, we are informed
that the company does not have damaged goods
lying with it at the end of the year. Therefore, no
provision for any loss is required to be made in
the accounts.
For Chaturvedi & Shah
Chartered Accountants
H.P. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
Devti Fabrics Limited
70(cid:223) (cid:224)
GROWTH IS LIFE !
Balance Sheet as at 31st March, 1998
Balance Sheet as at 31st March, 1998
SOURCES OF FUNDS:
Shareholders(cid:146) Funds
Share Capital
Loan Funds
Unsecured Loans
(From Holding Company)
APPLICATION OF FUNDS:
TOTAL
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Less: Current Liabilities and
Provisions
Current Liabilities
Net Current Assets
Profit and Loss Account
TOTAL
Schedule
As at
31st March, 1998
Rs.
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
Rs.
(cid:145)A (cid:146)
21.01
21.01
(cid:145) B (cid:146)
(cid:145) C (cid:146)
(cid:145) D (cid:146)
(cid:145) E (cid:146)
30.93
11.51
3.87
99.70
5.80
109.37
13.75
123.12
15.91
15.91
1,302.79
1,323.80
1,342.84
1,363.85
225.61
181.14
19.42
44.47
9.32
226.36
13.69
249.37
21.43
270.80
245.25
245.25
107.21
1,197.17
1,323.80
25.55
1,293.83
1,363.85
Notes on Accounts
(cid:145) H (cid:146)
As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
H.P. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
R.J. Shah
Partner
Devti Fabrics Limited
71(cid:223) (cid:224)
For and on behalf of the Board
}
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
Directors
Profit and Loss Account for the year ended 31st March, 1998
Profit and Loss Account for the year ended 31st March, 1998
GROWTH IS LIFE !
INCOME
Sales
Other Income
EXPENDITURE
Schedule
1997-98
(Rs. in lacs)
1996-97
Rs.
Rs.
Rs.
Rs.
1,057.11
30.74
(cid:145) F (cid:146)
1,071.74
10.76
1,087.85
1,082.50
Purchases
Manufacturing and Other Expenses
(cid:145) G (cid:146)
Depreciation
981.20
7.37
2.62
949.45
13.97
10.11
Profit for the year
Add: Balance brought forward from last year
Balance carried to Balance Sheet
Notes on Accounts
(cid:145) H (cid:146)
991.19
96.66
(1,293.83)
(1,197.17)
973.53
108.97
(1,402.80)
(1,293.83)
As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
H.P. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
R.J. Shah
Partner
Devti Fabrics Limited
72(cid:223) (cid:224)
For and on behalf of the Board
}
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
Directors
GROWTH IS LIFE !
Schedules Forming Part of the Balance Sheet
Schedules Forming Part of the Balance Sheet
SCHEDULE (cid:145)A(cid:146)
SHARE CAPITAL
Authorised:
As at
31st March, 1998
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
2,50,000 Equity Shares of Rs. 10 each
25.00
Issued, Subscribed & Paid up:
2,10,070 Equity Shares of Rs. 10 each fully paid up
21.01
(Held by Reliance Industries Limited,
the Holding Company)
25.00
21.01
21.01
21.01
SCHEDULE (cid:145)B(cid:146)
FIXED ASSETS
Description
Gross Block
Depreciation
(Rs. in lacs)
Net Block
As at Additions Deduc-
tions
Rs.
1.4.97
Rs.
Rs.
As at
31.3.98
Rs.
Up to
1.4.97
Rs.
For the
year
Rs.
Deduc-
tions
Rs.
Up to
As at
31.3.98 31.3.98
Rs.
Rs.
As at
31.3.97
Rs.
Buildings
27.48
(cid:150)
(cid:150)
27.48
8.69
0.92
(cid:150)
9.61
17.87
18.79
Plant & Machinery
174.59
36.90
211.49
161.75
1.15
162.90
Electric Installation
17.23
Factory Equipment
Furniture & Fixture
Vehicles
Total
2.86
3.44
0.01
(cid:150)
(cid:150)
(cid:150)
7.31
1.68
(cid:150)
(cid:150)
3.44
1.70
0.01
0.01
17.23
2.86
(cid:150)
(cid:150)
(cid:150)
(cid:150)
0.29
0.07
0.19
(cid:150)
7.60
1.75
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
1.89
1.55
0.01
(cid:150)
12.84
9.92
1.18
1.74
(cid:150)
225.61
36.90
231.58
30.93
181.14
2.62
172.25
11.51
19.42
44.47
Previous Year
225.61
(cid:150)
(cid:150)
225.61
171.03
10.11
(cid:150)
181.14
44.47
Devti Fabrics Limited
73(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules Forming Part of the Balance Sheet
Schedules Forming Part of the Balance Sheet
SCHEDULE (cid:145)C(cid:146)
CURRENT ASSETS
Inventories
(as verified, valued and certified by the management)
Stores, spares, dyes & chemicals
Raw materials
Sundry Debtors (Unsecured, considered good)*
Over Six months
Others
Cash and Bank Balances
Balance with Scheduled Banks:
In Current Accounts
As at
31st March, 1998
Rs.
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
Rs.
1.95
1.92
56.77
42.93
7.40
1.92
3.87
9.32
(cid:150)
226.36
99.70
226.36
5.80
109.37
13.69
249.37
* Includes Rs. 33.22 lacs due from Reliance Petroleum Ltd., a Company under the same management.
SCHEDULE (cid:145)D(cid:146)
LOANS AND ADVANCES
(Unsecured, considered good)
Advances recoverable in cash or in kind
or for value to be received
Deposits
SCHEDULE (cid:145)E(cid:146)
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundry Creditors
Other Liabilities
As at
31st March, 1998
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
0.08
13.67
13.75
0.32
15.59
15.91
6.31
15.12
21.43
228.93
16.32
245.25
Devti Fabrics Limited
74(cid:223) (cid:224)
Schedules Forming Part of the Profit and Loss Account
Schedules Forming Part of the Profit and Loss Account
GROWTH IS LIFE !
SCHEDULE (cid:145)F(cid:146)
OTHER INCOME
Interest received
Miscellaneous Income
Profit on sale of fixed assets, stores and spare parts
Excess provision for expenses no longer required
1997-98
Rs.
(cid:150)
(cid:150)
27.61
3.13
30.74
SCHEDULE (cid:145)G(cid:146)
MANUFACTURING AND OTHER EXPENSES
1997-98
Raw Materials Consumed
Stock at commencement
Add: Purchases
Less: Stock at close
Manufacturing Expenses
Electric Power, fuel and water
Payment to and Provisions for Employees
Retrenchment/Voluntary Retirement Scheme
Compensation
Establishment Expenses
Insurance
Rates and taxes
Other repairs
Payment to Auditors
General Expenses
Rs.
1.92
(cid:150)
1.92
1.92
0.88
0.07
(cid:150)
0.35
0.55
Rs.
(cid:150)
5.52
(cid:150)
1.85
7.37
(Rs. in lacs)
1996-97
Rs.
0.09
4.37
(cid:150)
6.30
10.76
(Rs. in lacs)
1996-97
Rs.
(cid:150)
7.68
3.88
2.41
13.97
Rs.
1.92
(cid:150)
1.92
1.92
0.28
0.48
0.71
0.35
0.59
Devti Fabrics Limited
75(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)H(cid:146)
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 concern 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
Raw Materials, Stores, Spares, Dyes & Chemicals are valued at cost.
2. The previous year(cid:146)s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.
3. Auditors(cid:146) Remuneration:
(a) Audit fees
(b) Tax audit fees
4. Contingent Liabilities
5. Licensed & Installed Capacity
(As certified by the Management)
Spindles (Nos.)
6. Production of finished products
meant for sale
7. Value of imports on CIF basis
8. Expenditure in foreign currency
9. Quantitative Information
a) Opening stock
b) Closing stock
c) Purchases
Fabrics
d) Sales
Fabrics
e) Raw Material Consumed
1997-98
0.25
0.10
0.35
(Rs. in lacs)
1996-97
0.25
0.10
0.35
As at
31st March,
(Rs. in lacs)
As at
31st March,
1998
(cid:150)
1997
(cid:150)
Licensed Capacity
31.3.98
31.3.97
Installed Capacity
31.3.98
31.3.97
N.A.
N.A.
NIL
11,816
1997-98
1996-97
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
1997-98
1996-97
UNIT Quantity Rs. in lacs
Quantity
Rs. in lacs
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
Mtrs/lacs 25.67
981.20
24.07
949.45
Mtrs/lacs 25.67
1,057.11
(cid:150)
24.07
1,071.74
(cid:150)
Devti Fabrics Limited
76(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)H(cid:146) (Contd.)
10. Value of Raw Material Consumed
11. Value of stores, spare parts
dyes & chemicals
12. Earnings in foreign exchange
1997-98
Rs. in lacs % of total
Consumption
1996-97
Rs. in lacs
% of total
Consumption
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
13. Additional information as required under Part IV of Schedule VI to the Compaines Act, 1956.
Balance Sheet Abstract and Company(cid:146)s General Business Profile:
1. Registration Details:
Registration No.
1 1 - 3 1 5 9 3
State Code
Balance Sheet Date
3 1 - 0 3 - 9 8
2. Capital raised during the year: (Rs. in lacs)
Public Issue
Bonus Issue
N I L Rights Issue
N I L
Private Placement
3. Position of mobilisation and deployment of funds: (Rs. in lacs)
1 1
N I L
N I L
Total Liabilities
Source of Funds:
Paid-up Capital
Secured Loans
Application of Funds:
1 3 2 3 . 8 0
Total Assets
1 3 2 3 . 8 0
2 1 . 0 1 Reserves & Surplus
N I L
N I L Unsecured Loans
1 3 0 2 . 7 9
Net Fixed Assets
Net Current Assets
Accumulated Losses
1 9 . 4 2
Investments
1 0 7 . 2 1 Miscellaneous
Expenditure
1 1 9 7 . 1 7
4. Performance of Company: (Rs. in lacs)
Turnover
Profit before tax
1 0 8 7 . 8 5
Total Expenditure
9 6 . 6 6
Profit after tax
Earnings per Share (Rs)
4 6 . 0 1 Dividend Rate (%)
5. Generic names of principal products, services of the Company:
Item Code No.
5 5 1 5 1 1 . 0 0
Product Description
F A B R I C S
N I L
N I L
9 9 1 . 1 9
9 6 . 6 6
N I L
As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
H.P. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
R.J. Shah
Partner
Devti Fabrics Limited
77(cid:223) (cid:224)
For and on behalf of the Board
}
V.M. Ambani
N.M. Sanghavi
J.B. Dholakia
Directors
GROWTH IS LIFE !
RELIANCE INDUSTRIAL
INVESTMENTS AND HOLDINGS
LIMITED
Reliance Industrial Investments and Holdings Limited
93(cid:223) (cid:224)
GROWTH IS LIFE !
Directors(cid:146) Report
Directors(cid:146) Report
To the Members,
Your Directors present the 12th Annual Report together with the Audited Statement of Accounts for the year
ended 31st March, 1998.
Financial results
Profit before tax
Less : Provision for taxation
Profit after tax
Less : Taxes for earlier years
Add : Balance in Profit and Loss Account
Less :
Interim Dividend
Balance carried forward to Balance sheet
1997-98
53.66
(cid:150)
53.66
69.73
(16.07)
55.26
39.19
(cid:150)
39.19
(Rs. in lacs)
1996-97
1,324.10
175.00
1,149.10
(5.94)
1,155.04
80.26
1,235.30
1,180.04
55.26
Income
During the year, the Company has received dividend
income of Rs. 1,002.04 lacs from investments.
Dividend
The Directors have not recommended dividend on
Equity shares for the financial year ended 31st
March, 1998
Directors
Shri. S. Seth retires by rotation and being eligible
offers himself for re-appointment.
Personnel
The Company has not paid any remuneration
attracting the provisions of Companies (Particulars
of Employees) Rules, 1975 read with Section 217
(2A) of the Companies Act, 1956. Hence, no
information is required to be appended to this
report in this regard.
Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and outgo
investment company,
there are no
Being an
particulars furnished in this report as required under
Section 217 (1) (e) of the Companies Act, 1956,
relating to conservation of energy and technology
absorption. There was no foreign exchange earnings
or outgo during the year.
(Reserve
Non-Banking Financial Companies
Bank) Directions
for
The Company has made an application
registration under Section 45IA of the Reserve Bank
of India Act, 1934, to carry on the business as a
Non-Banking Financial Institution.
Deposits
The Company has not accepted any public deposit
during the year. Hence, no information is required
to be appended to this report in terms of Non-
Reliance Industrial Investments and Holdings Limited
80(cid:223) (cid:224)
GROWTH IS LIFE !
Banking Financial Companies Acceptance of Public
Deposits (Reserve Bank) Directions, 1998.
Auditors
The Auditors of the Company, M/s. Chaturvedi &
Shah and M/s. Rajendra & Co. 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
}
Directors
Alok Agarwal
S. Seth
Sandeep Junnarkar
Mumbai
Dated : 25th April, 1998
Reliance Industrial Investments and Holdings Limited
81(cid:223) (cid:224)
GROWTH IS LIFE !
Auditors(cid:146) Report
Auditors(cid:146) Report
To,
The Members of Reliance Industrial Investments and
Holdings Limited.
We have audited the attached Balance Sheet of
RELIANCE INDUSTRIAL INVESTMENTS AND
HOLDINGS LIMITED as at 31st March, 1998, 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(cid:146) Report) Order, 1988
issued by the Company Law Board in terms of
Section 227 (4A) of the Companies Act, 1956,
we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the
said order.
2. Further to our comments
in the Annexure
referred to in paragraph 1 above, we report that:
(a) We have obtained all the information and
explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion proper books of account as
required by law have been kept by the
Company, so
from our
examination of such books.
far as appears
(c) The Balance
Sheet
and
Loss Account referred to in this Report
are
books
of account.
agreement with
and Profit
the
in
and
according
(d) In our opinion and to the best of our
information
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 :
to
i)
ii)
in so far as it relates to the Balance Sheet
of the state of affairs of the Company as
at 31st March, 1998 and
in so far as it relates to the Profit and
Loss Account of the
(cid:145)Profit(cid:146) of the
Company for the year ended on that
date.
For Chaturvedi & Shah
Chartered Accountants
Rajesh D. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
Reliance Industrial Investments and Holdings Limited
82(cid:223) (cid:224)
GROWTH IS LIFE !
Annexure to Auditors(cid:146) Report
Annexure to Auditors(cid:146) Report
R e f e r r e d t o i n P a r a g r a p h 1 o f o u r R e p o r t o f e v e n d a t e
1. As the Company had no Fixed Assets during the
year, Clauses 4(A)(i) and (ii) of the said Order are
not applicable.
2. Since the Company has not commenced any
manufacturing and/or trading activity,
items
(iii), (iv), (v), (vi), (x), (xi), (xii),(xiv) and (xvi) of
the Clause A of paragraph 4 of the aforesaid
Order are not applicable.
3. The Company has received unsecured loans from
the holding Company. It has not taken any other
loan, secured or unsecured, from companies,
firms and other parties as listed in the register
maintained under Section 301 of the Companies
Act, 1956, or from companies under the same
management within the meaning of Section
370(1B) of the Companies Act, 1956. The terms
and conditions of such loans are not, in our
opinion, prima-facie prejudicial to the interests
of the Company.
4. The Company has not granted any loans, secured
or unsecured to companies, firms, or other
parties listed in the register maintained under
Section 301 of the Companies Act, 1956. The
Company has granted a loan to a Company,
which was under the same management within
the meaning of Section 370 (1B) of the
Companies Act, 1956 and which has since been
received. The rate of interest and other terms and
conditions of the said loan were not, in our
opinion, prima-facie prejudicial to the interest of
the Company.
In respect of the loans and advances in the nature
of
is
loans given by the Company, there
repayment of principal amounts and payment of
interest wherever stipulated.
5.
6.
In our opinion and according to the information
and explanations given to us, the Company has
not accepted any deposits from the public.
7.
In our opinion the Company has an internal
audit system commensurate with its size and the
nature of its business.
8. According to the information and explanations
given to us, the provisions of the Employees(cid:146)
Provident Fund and Miscellaneous Provisions
Act, 1952 and the Employees(cid:146) State Insurance
Act, 1948 are not applicable to the Company.
9. According to the information and explanations
given to us, no undisputed amounts payable
in respect of Income-Tax, Wealth-Tax, Sales-Tax,
Excise Duty and Customs Duty were outstanding
as at 31st March, 1998 for a period of more
than six months from the date they became
payable.
10. In our opinion and according to the information
and explanations given to us, no personal
expenses of employees or Directors have been
charged to revenue account.
11. The Company is not a Sick Industrial Company
within the meaning of clause (O) of sub-section
(1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
12. Adequate documents and records are maintained
by the Company for the loans and advances
granted on the basis of security by way of pledge
of shares, debentures and other securities.
13. According to the information and explanations
given to us, the provisions of any special
statute applicable to Chit Fund, Nidhi or
Mutual Benefit Society are not applicable to the
Company.
investments dealt
14. In our opinion, the Company has maintained
proper records and made timely entries in respect
of
in or traded by the
Company. The Company(cid:146)s investments are held
in its own name, save and except, those in the
process of being transferred in its name or which
have been lent under stock lending scheme.
For Chaturvedi & Shah
Chartered Accountants
Rajesh D. Chaturvedi
Partner
Mumbai
Dated : 25th April, 1998
For Rajendra & Co.
Chartered Accountants
R.J. Shah
Partner
Reliance Industrial Investments and Holdings Limited
83(cid:223) (cid:224)
GROWTH IS LIFE !
Balance Sheet as at 31st March, 1998
Balance Sheet as at 31st March, 1998
SOURCES OF FUNDS:
Shareholders(cid:146) Funds
Capital
Reserves and Surplus
Loan Funds
Unsecured Loans
TOTAL
APPLICATION OF FUNDS:
Investments
Current Assets, Loans and Advances
Current Assets
Sundry Debtors
Cash and bank balances
Loans and Advances
Less: Current Liabilities and Provisions
(cid:145) F (cid:146)
Current Liabilities
Provisions
Schedule
As at
31st March, 1998
Rs.
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
Rs.
(cid:145)A (cid:146)
(cid:145) B (cid:146)
14,750.44
434.35
14,750.44
450.42
15,184.79
72,177.15
87,361.94
15,200.86
72,182.15
87,383.01
128,223.15
87,100.28
(cid:145) C (cid:146)
(cid:145) D (cid:146)
(cid:145) E (cid:146)
(cid:150)
22.32
22.32
398.22
420.54
41,106.75
175.00
41,281.75
3.98
43.42
47.40
426.24
473.64
15.87
175.04
190.91
Net Current Assets
TOTAL
(40,861.21)
87,361.94
282.73
87,383.01
Notes on Accounts
(cid:145) I (cid:146)
As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Rajesh D. Chaturvedi
Partner
R.J. Shah
Partner
Mumbai
Dated : 25th April, 1998
For and on behalf of the Board
Alok Agarwal
S. Seth
Sandeep Junnarkar
}
Directors
Reliance Industrial Investments and Holdings Limited
84(cid:223) (cid:224)
Profit and Loss Account for the year ended 31st March, 1998
Profit and Loss Account for the year ended 31st March, 1998
GROWTH IS LIFE !
Schedule
1997-98
(Rs. in lacs)
1996-97
Rs.
Rs.
Rs.
Rs.
INCOME
Income on Investments
(cid:145) G (cid:146)
1,002.59
Interest received
[Tax Deducted at source Rs. 0.81 lacs,
previous year Rs. 0.54 lacs]
4.04
1,931.47
32.58
Income from Stock Lending
813.02
1,200.00
EXPENDITURE
Establishment & Other Expenses
(cid:145) H (cid:146)
Premium on redemption of debentures
Provision for diminution in market value
of investments
Interest
Debentures
Others
Profit before tax
Less: Provision for taxation
Profit after tax
Less: Taxes for earlier years
Add: Balance brought forward from last year
Amount available for appropriation
Appropriations:
Interim Dividend Paid (subject to tax)
Balance carried to Balance Sheet
Notes on Accounts
(cid:145) I (cid:146)
As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Rajesh D. Chaturvedi
Partner
R.J. Shah
Partner
Mumbai
Dated : 25th April, 1998
1,819.65
3,164.05
14.24
1.75
0.62
1,749.38
(cid:150)
9.52
947.65
(cid:150)
840.37
42.41
1,765.99
53.66
(cid:150)
53.66
69.73
(16.07)
55.26
39.19
(cid:150)
39.19
1,839.95
1,324.10
175.00
1,149.10
(5.94)
1,155.04
80.26
1,235.30
1,180.04
55.26
For and on behalf of the Board
Alok Agarwal
S. Seth
Sandeep Junnarkar
}
Directors
Reliance Industrial Investments and Holdings Limited
85(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules Forming Part of the Balance Sheet
Schedules Forming Part of the Balance Sheet
SCHEDULE (cid:145)A(cid:146)
SHARE CAPITAL
Authorised:
149990000 Equity Shares of Rs. 10 each.
10000 11% Non-Cumulative Redeemable
Preference Shares of Rs. 10 each
Issued, Subscribed & Paid up:
147504400 Equity Shares of Rs. 10 each fully paid up
(Held by Reliance Industries Limited,
the Holding Company)
As at
(Rs. in lacs)
As at
31st March, 1998
Rs.
31st March, 1997
Rs.
14,999.00
1.00
15,000.00
14,999.00
1.00
15,000.00
14,750.44
14,750.44
14,750.44
14,750.44
Note: Refer Note of Schedule (cid:145)C(cid:146) in respect of option on unissued share capital.
SCHEDULE (cid:145)B(cid:146)
RESERVES AND SURPLUS
General Reserves:
As per last Balance Sheet
Profit and Loss Account
SCHEDULE (cid:145)C(cid:146)
UNSECURED LOANS
A. Zero Coupon Convertible Unsecured
Redeemable Debentures of Rs. 5,000 each
Less: Redeemed
B. 6.25% Fully-Convertible Unsecured Debentures of
Rs.100 each.
C. Loan from Holding Company
395.16
39.19
434.35
395.16
55.26
450.42
(Rs. in lacs)
As at
31st March, 1998
Rs.
44,192.15
Rs.
As at
31st March, 1997
Rs.
Rs.
63,145.15
35.00
18,953.00
44,157.15
27,990.00
30.00
72,177.15
44,192.15
27,990.00
-
72,182.15
NOTE:
a.
In respect of Debentures referred to in A above, the Company may give at its option a three months notice to the
Debentureholders to opt for conversion of the Debentures into Equity Shares at par at any time after the expiry of 15 years,
from the respective dates of allotment of such Debentures. The debentures are redeemable at a premium of 5% of the face
value of the debentures. In the event of the option not being granted by the Company or debentureholders not exercising
their option to convert it may redeem the said debentures in part or in full at any time during the tenure of the said
debentures but not later than 25 years commencing from the respective dates of allotment. Premium payable on
debentures redeemed during any financial year will become due at the end of the said financial year.
b. Debentures referred to in B above are fully convertible into equity shares of the Company at prevailing Book value at
any time after the expiry of 15 years but not later than 20 years from the respective date of allotments. As per revised
terms of the said debentures interest rate has been reduced from 8.00% p.a. to 6.25% p.a. w.e.f. 01.04.1997 with the
consent of the debentureholders for the remaining tenure of the Debenture.
Reliance Industrial Investments and Holdings Limited
86(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules Forming Part of the Balance Sheet
Schedules Forming Part of the Balance Sheet
SCHEDULE (cid:145)D(cid:146)
INVESTMENTS
Investments : (Valued, Verified & Certified by Management)
(A) Long Term Investments
Quoted:
As at
31st March, 1998
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
#
*
#
*
Equity Shares - Fully paid-up
13163772 Larsen & Toubro Ltd. of Rs.10 each
(13164062)
13,415.30
13,415.59
882370 Kothari Sugars and Chemicals Ltd.
337.30
337.30
of Rs.10 each
191592000 Reliance Petroleum Ltd. of Rs.10 each
6839078 BSES Ltd. of Rs. 10 each
19,159.20
11,288.58
19,159.20
11,288.58
Debentures - Fully paid-up
95796000 Secured Triple Option Convertible
Debentures (TOCDs) of Reliance
Petroleum Ltd. of Rs. 40 each.
Unquoted:
Equity Shares - Fully paid-up
22900 Observer (India) Ltd. of Rs. 10 each
1700 Farvision Securities Private Ltd. of
Rs. 100 each
3500 Neha Real Estates Private Limited of
(-) Rs. 10 each
1150 Reliance Aromatics & Petrochemicals
(-) Pvt. Ltd. of Rs. 10 each
1200 Reliance Energy & Project Development
(-) Pvt. Ltd. of Rs. 10 each
50 Reliance Telecom Ltd. of Rs. 10 each
(-)
Debentures - Fully paid-up
4806897 Reliance Petroleum Ltd.
(-) Unsecured Fully-Convertible Non Interest
bearing Debentures of Rs. 950 each.
Debenture Application Money
Reliance Petroleum Ltd.
4806897 Unsecured Fully-Convertible
Non Interest bearing Debentures of
Rs. 950 each, Rs. 95 paid-up.
38,318.40
38,318.40
3.79
9.35
24.57
0.11
0.12
0.01
45,665.52
3.79
9.35
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
(cid:150)
4,566.55
TOTAL (A)
128,222.2 5
87,098.76
Reliance Industrial Investments and Holdings Limited
87(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules Forming Part of the Balance Sheet
Schedules Forming Part of the Balance Sheet
SCHEDULE (cid:145)D(cid:146) (Contd.)
(B) Current Investments
As at
31st March, 1998
Quoted:
Equity Shares - Fully paid-up
2500 M H Mills and Industries Ltd. of Rs. 10 each
200 HDFC Bank Ltd. of Rs. 10 each
Debentures - Fully Paid-up
1250 14% Non-Convertible Debentures of
M H Mills and Industries Ltd. of Rs. 45 each.
Less: Provision for diminution in the value of investments
TOTAL (B)
Rs.
0.94
0.02
0.56
1.52
0.62
0.90
(Rs. in lacs)
As at
31st March, 1997
Rs.
0.94
0.02
0.56
1.52
-
1.52
TOTAL (A+B)
128,223.15
87,100.28
* The Company(cid:146)s investment in Reliance Petroleum Ltd., a Company under the same management is towards
promoters(cid:146) contribution. 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 off the said
holdings, till the loans granted by them to Reliance Petroleum Ltd. are outstanding.
# Refer Note no. 3 of Schedule (cid:145)I(cid:146).
AGGREGATE VALUE OF
Quoted Investments
Unquoted Investments
As at
31st March, 1998
Book
Value
Rs.
Market
Value
Rs.
As at
31st March, 1997
Market
Value
Rs.
Book
Value
Rs.
82,519.68
45,703.47
128,223.15
129,782.03
82,520.59 100,659.03
4,579.69
87,100.28
Reliance Industrial Investments and Holdings Limited
88(cid:223) (cid:224)
GROWTH IS LIFE !
Schedules Forming Part of the Balance Sheet
Schedules Forming Part of the Balance Sheet
SCHEDULE (cid:145)E(cid:146)
CURRENT ASSETS, LOANS AND ADVANCES
As at
31st March, 1998
Rs.
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
Rs.
Current Assets:
Sundry Debtors (Unsecured, considered good,
subject to confirmation)
Over six months
Cash and Bank Balances:
Cash on hand
Balance with a Scheduled Bank:
In Current Account
Loans and Advances
Advances recoverable in cash or in
kind or for value to be received
Advance Payment of Taxes
SCHEDULE (cid:145)F(cid:146)
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Other Liabilities
Provisions
For Taxation
0.01
22.31
42.44
355.78
(cid:150)
3.98
0.01
43.41
22.32
43.42
121.94
304.30
398.22
420.54
426.24
473.64
As at
31st March, 1998
Rs.
(Rs. in lacs)
As at
31st March, 1997
Rs.
41,106.75
175.00
41,281.75
15.87
175.04
190.91
Reliance Industrial Investments and Holdings Limited
89(cid:223) (cid:224)
Schedules Forming Part of the Profit and Loss Account
Schedules Forming Part of the Profit and Loss Account
GROWTH IS LIFE !
SCHEDULE (cid:145)G(cid:146)
INCOME ON INVESTMENTS
1997-98
(Rs. in lacs)
1996-97
Dividend
From Long Term Investments
[Tax Deducted at Source Rs. NIL,
previous year Rs. 285.38 lacs]
Interest
From Current Investments
[Tax Deducted at Source Rs. 0.03 lacs,
previous year Rs. 0.01 lacs]
Profit on Sale of Investments (Net)
From Long Term Investments
From Current Investments
SCHEDULE (cid:145)H(cid:146)
ESTABLISHMENT & OTHER EXPENSES
Salary, Wages and Bonus
Legal & Professional charges
Filing Fees
Custodian fees
Bad Debts
Miscellaneous expenses
Brokerage paid
Other Administrative Expenses
Auditors(cid:146) Remuneration
Audit Fees
Tax Audit Fees
Rs.
Rs.
Rs.
Rs.
1,002.04
1,219.84
0.15
45.55
0.40
(cid:150)
595.29
70.79
0.40
1,002.59
666.08
1,931.47
2.91
0.50
0.01
5.26
3.98
0.08
1.50
14.24
0.07
0.56
1.00
0.50
1.92
0.20
0.01
5.26
(cid:150)
0.63
1.50
9.52
(cid:150)
0.08
1.00
0.50
Reliance Industrial Investments and Holdings Limited
90(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)I(cid:146)
1. Significant accounting policies:-
a) Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention, in accordance with the
generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Investments
i) Long term investments are carried at cost and provision for diminution in value is made only if such
decline is other than temporary in the managements opinion. Current investments are carried at the
lower of cost and quoted/fair value, computed category wise.
ii) Cost is arrived at by applying specific identification method.
c) Stock Lending
In respect of stock lending activity, income is accounted for on accrual basis. Non-refundable fee received
against stock lending facility is treated as income in the year of receipt.
2. The previous year(cid:146)s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.
3. The Company has entered into an agreement for Stock lending facility with an approved intermediary,
whereby the Company has agreed to lend 60,00,000 Equity shares of Larsen and Toubro Ltd. and BSES Ltd.
each. As at the end of the year, 31,27,000 Larsen & Toubro Ltd. Equity shares have been lent under stock
lending scheme.
4. No provision is made for premium on redemption of debentures since the amount so payable is uncertain.
The premium paid will therefore be accounted for in the year of redemption.
5. Dividend income is after adjusting irrecoverable dividend of earlier years of Rs. 8.49 lacs.
6. As the Company is not a manufacturing company, information required under paragraphs 3 and 4 of
Schedule VI of the Companies Act, 1956 is not given.
Reliance Industrial Investments and Holdings Limited
91(cid:223) (cid:224)
GROWTH IS LIFE !
Notes on Accounts
Notes on Accounts
SCHEDULE (cid:145)I(cid:146) (Contd.)
7 Additional information as required under Part IV of Schedule VI to the Companies Act, 1956:
Balance Sheet Abstract and Company(cid:146)s General Business Profile:
1. Registration Details:
Registration No.
1 1 - 4 1 0 8 1
State Code
1 1
Balance Sheet Date
3 1 - 0 3 - 9 8
2. Capital raised during the year:
(Rs. in lacs)
Public Issue
Bonus Issue
N I L Rights Issue
N I L
Private Placement
N I L
N I L
3. Position of mobilisation and deployment of funds:
(Rs. in lacs)
Total Liabilities
8 7 3 6 1 . 9 4
Total Assets
8 7 3 6 1 . 9 4
Source of Funds:
Paid-up Capital
1 4 7 5 0 . 4 4 Reserves & Surplus
4 3 4 . 3 5
Secured Loans
N I L Unsecured Loans
7 2 1 7 7 . 1 5
Application of Funds:
Net Fixed Assets
N I L
Investments
1 2 8 2 2 3 . 1 5
Net Current Assets
Accumulated Losses
(4 0 8 6 1 . 2 1) Miscellaneous
Expenditure
N I L
N I L
4. Performance of Company:
(Rs. in lacs)
Turnover/Income
1 8 1 9 . 6 5
Total Expenditure
1 7 6 5 . 9 9
Profit before extraordinary
item and taxation
5 3 . 6 6
Profit before tax
Profit after tax
5 3 . 6 6 Dividend Rate(%)
5 3 . 6 6
N I L
Earnings per Share (Rs)
0 . 0 4
5. Generic names of principal products, services of the Company:
Item Code No.
Product Description
N A
N A
As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
Rajesh D. Chaturvedi
Partner
R.J. Shah
Partner
Mumbai
Dated : 25th April, 1998
For and on behalf of the Board
Alok Agarwal
S. Seth
Sandeep Junnarkar
}
Directors
Reliance Industrial Investments and Holdings Limited
92(cid:223) (cid:224)
GROWTH IS LIFE !
Calendar
Audited annual results
Annual general meeting
First quarter results
Second quarter results
Third quarter results
Second fortnight June
: End April
:
: Third week July
: Third week October
: Third week January
Reliance Industries Limited(cid:146)s
Equity Shares are listed
on the stock exchanges in the following cities :
(cid:149) Mumbai (cid:149) Ahmedabad (cid:149) Bangalore (cid:149) Calcutta (cid:149) New Delhi (cid:149) Chennai (cid:149) Cochin (cid:149) Kanpur (cid:149) Pune
as also with
The National Stock Exchange (NSE)
u
Trading Symbol Bombay Stock Exchange
Trading Symbol Bombay Stock Exchange (Demat Segment)
Trading Symbol National Stock Exchange
Trading Symbol National Stock Exchange (Demat Segment)
:
:
:
:
(cid:145)RIL 325(cid:146)
(cid:145)RILDM500325(cid:146)
(cid:145)RELIANCE EQ(cid:146)
(cid:145)RELIANCEAE(cid:146) (For T+5 settlement)
and (cid:145)RELIANCEBE(cid:146) (For T+1 settlement)
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 (cid:145)RIDGq.LT(cid:146)
Euro-convertible Bonds
are listed on the Luxembourg Stock Exchange and are traded on PORTAL System (NASDAQ, USA).
u
Toll Free Number for Investors in Delhi : 1600157777
Voice Mail Number for Investors in Mumbai : 9729044
u
List of Investor Service Centres of Karvy Consultants Ltd.
CITY
STD CODE
TEL. NO.
FAX
CITY
STD CODE
TEL. NO.
FAX
Agra
Ahmedabad
Ahmedabad
Allahabad
Alwar
Ambala
Amritsar
Asansole
Bangalore
Bangalore
Bangalore
Baroda
Bellary
Bhadravathi
Bhopal
Bhubaneshwar
Calcutta
Chandigarh
Chennai
Chennai
Chikmanglur
Cochin
Coimbatore
Dhanbad
Erode
Goa
Gulbarga
Guwahati
Gwalior
Hubli
Hyderabad
Indore
Jabalpur
Jaipur
Jammu
(0562)
(079)
(079)
(0532)
(0144)
(0171)
(0183)
(0341)
(080)
(080)
(080)
(0265)
(08392)
(081826)
(0755)
(0674)
(033)
(0172)
(044)
(044)
(08262)
(0484)
(0422)
(0326)
(0424)
(0832)
(08472)
(0361)
(0751)
(0836)
(040)
(0731)
(0761)
(0141)
(0191)
352368 / 351625
6420422 / 6563527
6563528
6578070 / 6578021
400588
22752
530891
220370 / 229473
204968 / 200169
6621184 / 6621192
6621193 / 6621496
5253249 / 5362930
3314678 / 3314680
361514 / 363207
76073 / 78358
78199
554165
500909 / 503777
4644891 / 4647231
705543 / 603864
8283658 / 8258034
8258034 / 8268292
30524 / 21703
310884 / 322152
211928 / 210283
205930 / 305966
206191
221671
226150 / 228470
27635
543322 / 515251
512084
321524
372086 / 374409
243324
432837
312009
363321 / 375039
547246
(0562)
(079)
352368
6565551
(079)
(0532)
(0171)
(0183)
(080)
(0265)
(08392)
(0755)
(033)
(044)
(044)
(08262)
(0484)
(0422)
(0326)
(0832)
(08472)
(0836)
(040)
(0141)
6578070
400988
(cid:151)(cid:151)
442929
229473
(cid:151)(cid:151)
6621169
5257926
(cid:151)(cid:151)
363207
77592
(cid:151)(cid:151)
555732
501657
4644866
(cid:151)(cid:151)
8273181
8268426
30524
323104
211928
303021
(cid:151)(cid:151)
223742
26794
(cid:151)(cid:151)
(cid:151)(cid:151)
372086
236602
(cid:151)(cid:151)
(cid:151)(cid:151)
364660
(cid:151)(cid:151)
Jamnagar
Jamshedpur
Jodhpur
Kanpur
Kolhapur
Lucknow
Ludhiana
Madurai
Mumbai
(0288)
(0657)
(0291)
(0512)
(0231)
(0522)
(0161)
(0452)
(022)
72573
432064
627918 / 641533
357672
651716 / 650548
230273
24862 / 426112
537948
2677307 / 2676283
2676278
Mumbai
(022) Voice Mail
Mumbai
Mangalore
Mysore
Nagpur
(022)
(0824)
(0821)
(0712)
New Delhi
(011)
Patna
Pondicherry
Pune
Rajahmundry
Rajkot
Ranchi
Rourkela
Salem
Shillong
Shimoga
Solapur
Sirsi
Surat
Tanjore
Varanasi
Vijayawada
Visakhapatnam
(0612)
(0413)
(0212)
(0883)
(0281)
(0651)
(0661)
(0427)
(0364)
(08182)
(0217)
(08384)
(0261)
(04362)
(0542)
(0866)
(0891)
9729044
6367226 / 6322266
2004090 / 2004091
492302
510781
537531 / 538132
533428
Toll Free
1600157777
5154978 / 5154940
673699 / 671500
30291 /
323291
444318
223733
203166
506116 / 505388
419515 / 415898
230085 / 230118
225147 / 226636
78199
311027
75319
425062
23406
323930
436965
575202 / 573143
(0288)
(0657)
(0231)
(0522)
(0161)
(0452)
550513
423061
(cid:151)(cid:151)
(cid:151)(cid:151)
652108
230552
406154(PP)
537948
2671237
6310882
2004094
(cid:151)(cid:151)
(cid:151)(cid:151)
538133
5105993
672688
30291
323292
65318
232229
201979
522692
419515
(cid:151)(cid:151)
78199
612219
75319
425062
(0612)
(0413)
(0212)
(0883)
(0281)
(0651)
(0661)
(0427)
(0364)
(08182)
(0217)
(08384)
(0261)
(04362) (cid:151)(cid:151)
(0542) (cid:151)(cid:151)
(0866)
(0891)
436241
550328
93(cid:223) (cid:224)
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
S. Venkitaramanan
Nominee Director - ICICI
A. N. Poddar
Nominee Director - GIC
Ramniklal H. Ambani
Mansingh L. Bhakta
T. Ramesh U. Pai
Yogendra P. Trivedi
Secretary
Vinod M. Ambani
Solicitors & Advocates
Kanga & Co.
Auditors
Chaturvedi & Shah
Member - Summit International Associates Inc.
Rajendra & Co.
International Accountants
Touche Ross & Co.
Member - Deloitte, Touche and
Tohmatsu International (DTTI)
Bankers
ABN AMRO Bank
Allahabad Bank
American Express Bank
Bank of America
Bank of Baroda
Canara Bank
Central Bank of India
Citibank 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
GROWTH IS LIFE !
Registered Office:
3rd Floor, Maker Chambers IV,
222, Nariman Point
Mumbai 400 021, India.
Tel. Nos. 91-22-2831633/16-2826070
Fax No. 91-22-2042268
E-Mail: investor@ril.com
Internet: http://www.ril.com
Manufacturing facilities at:
lllll Patalganga Complex
B-4, Industrial Area, Patalganga
Off Mumbai-Pune Road
Near Panvel, Dist. Raigad 410 207
Maharashtra State, India.
lllll Naroda Complex
103/106, Naroda Industrial Estate
Naroda, Ahmedabad 382 330
Gujarat State, India.
lllll Hazira Complex
Village Mora, Bhatha P.O.
Surat-Hazira Road
Surat 394 510, Gujarat State, India.
lllll
Jamnagar Complex
Taluka Lalpar
P.O. Digvijay Gram, Dist. Jamnagar
Gujarat 361 140
Subsidiary Companies
lllll Devti Fabrics Limited
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021. India
lllll Reliance Industrial Investments and
Holdings Ltd.
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021. India
Registrars & Transfer Agent
Karvy Consultants Limited
lllll
46, Avenue 4, Street No.1, Banjara Hills
Hyderabad - 500 034, India.
Tel. Nos. 91-40-3320251/3320751/3312454
Fax No. 91-40-3311968
E-Mail: reliance@indl.vsnl.net.in
lllll 7, Andheri Industrial Estate
Off Veera Desai Road
Andheri (West), Mumbai(cid:160)400(cid:160)053, India.
Tel. Nos. 91-22-6267226/6269044/6271802
Fax No. 91-22-6290882
96(cid:223) (cid:224)