Reliance Industries Limited Annual Report 2000

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FY2000 Annual Report · Reliance Industries Limited

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GROWTH IS L IFE

Reliance’s Achievements
in 1999-2000

Sales - Rs. 20,301 crores

(US $ 4,654 million)

Gross Profit - Rs. 4,746 crores

(US $ 1,088 million)

Cash Profit - Rs. 3,738 crores

(US $ 857 million)

Net Profit - Rs. 2,403 crores

(US $ 551 million)

Compounded Annual Net Profit

growth over 5 years - 18%

Compounded Annual Earnings Per Share

growth over 5 years - 14%

Total Assets - Rs. 29,369 crores

(US $ 6,733 million)

India’s largest private sector enterprise

Reliance Industries Limited

Page

Contents

GROWTH IS L IFE

100

101

102

105

107

109

Performance Highlights

Company Information

Notice

Chairman's Communication

Financial Highlights

Reliance Brands

Product Flow Chart

Management Discussion and Analysis

Reliance Petroleum

Reliance Telecom

Reliance Power

Human Resource Development

Quality

Research and Development

Health, Safety and Environment

Energy Conservation

Community Development

Forex Savings, Taxes Paid and Exports

Corporate Governance

Awards - Recognition of Excellence

Directors’ Report

Annexure to Directors’ Report

Auditors’ Report

Annexure to Auditors’ Report

International Accountants’ Report

Balance Sheet

Profit and Loss Account

Schedules Forming Part of

Balance Sheet and Profit and Loss Account

Cash Flow Statement

Reconciliation of Profit with US GAAP

Financial Ratios

Documents of Subsidiary Companies

Investor Guide

Share Buyback - Frequently Asked Questions

Nomination Facilities

Dematerialisation of Securities

Shareholders’ Information

Nomination Request Form

Electronic Clearing Service (ECS) Mandate Format

Proxy Form and Attendance Slip

Reliance Industries Limited

Board of Directors
Dhirubhai H. Ambani
Chairman
Mukesh D. Ambani
Vice Chairman & Managing Director
Anil D. Ambani
Managing Director
Nikhil R. Meswani
Executive Director
Hital R. Meswani
Executive Director
H.S. Kohli
Executive Director
S. Venkitaramanan
Nominee Director - ICICI
U. Mahesh Rao
Nominee Director - GIC
Ramniklal H. Ambani
Mansingh L. Bhakta
T. Ramesh U. Pai
Yogendra P. Trivedi

Secretaries

Vinod M. Ambani

Rohit C. Shah

Solicitors & Advocates

Kanga & Co.

Auditors

Chaturvedi & Shah

Member - Summit International Associates Inc.

Rajendra & Co.

International Accountants

Deloitte Haskins & Sells

Member - Deloitte, Touche and

Tohmatsu International (DTTI)

Bankers
ABN AMRO Bank
Allahabad Bank
ANZ Grindlays Bank
Bank of America
Bank of Baroda
Bank of India
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
Standard Chartered Bank
Syndicate Bank
Union Bank of India
Vijaya Bank

GROWTH IS L IFE

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:

•

Patalganga Complex

B-4, Industrial Area, Patalganga

Off Bombay-Pune Road

Near Panvel, Dist. Raigad 410 207

Maharashtra State, India.

•

Naroda Complex

103/106, Naroda Industrial Estate

Naroda, Ahmedabad 382 330

Gujarat State, India.

•

Hazira Complex

Village Mora, Bhatha P.O.

Surat-Hazira Road

Surat 394 510, Gujarat State, India.

•

Jamnagar Complex

Village Motikhavdi

P.O. Digvijay Gram, Dist. Jamnagar

Gujarat 361 140. India

Subsidiary Companies

•

Devti Fabrics Limited

3rd Floor, Maker Chambers IV,

222, Nariman Point, Mumbai 400 021. India

Reliance Industrial Investments and

Holdings Ltd.

3rd Floor, Maker Chambers IV,

222, Nariman Point, Mumbai 400 021. India

•

Reliance Ventures Limited

Shree Ram Mills Premises, Ground Floor

G.K. Marg, Worli, Mumbai 400 013. India

Registrars & Transfer Agent

•

Karvy Consultants Limited

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

1103, Raheja Centre
Free Press Journal Road
Nariman Point, Mumbai 400 021, India.
Tel. Nos. 91-22-2822052 / 2855587 / 2875208
Fax No. 91-22-2852215

Reliance Industries Limited

GROWTH IS L IFE

Notice

Notice is hereby given that the Twenty Sixth Annual General
Meeting of the Members of RELIANCE INDUSTRIES LIMITED
will be held on Tuesday, the 13th day of June, 2000, at 11.00 a.m.
at Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020 to
transact the following business:

Ordinary Business:
1. To consider and adopt the Balance Sheet as at 31st March,
2000, Profit and Loss Account for the year ended on that date
and the Reports of the Board of Directors and Auditors
thereon.

2. To note payment of dividend on shares.
3. To appoint a Director in place of Shri Ramnikbhai H. Ambani,
who retires by rotation and being eligible, offers himself for re-
appointment.

4. To appoint a Director in place of Shri T.R.U. Pai, who retires by
rotation and being eligible, offers himself for re-appointment.
5. To appoint a Director in place of Shri Nikhil R. Meswani, who
retires by rotation and being eligible, offers himself for re-
appointment.

6 To appoint M/s. Chaturvedi & Shah, Chartered Accountants
and M/s. Rajendra & Co., Chartered Accountants as Joint
Auditors, who shall hold office from the conclusion of this
Annual General Meeting until the conclusion of the next
Annual General Meeting and to fix their remuneration.

Special Business
7. To consider and if thought fit, to pass, with or without
resolution as a Special

following

the

in accordance with

modification(s),
Resolution:
"RESOLVED THAT
the provisions
contained in the Articles of Association and Sections 79A, 81
and all other applicable provisions of the Companies Act,
1956 ("the Act") and the provisions contained in the Securities
and Exchange Board of India (Employee Stock Option
Scheme
and Employee Stock Purchase Scheme)
Guidelines,1999 ("the Guidelines") (including any statutory
modification(s) or re-enactment of the Act or the Guidelines,
for the time being in force) and subject to such other
approvals, permissions and sanctions as may be necessary
and subject to such conditions and modifications as may be
prescribed or
imposed while granting such approvals,
permissions and sanctions which may be agreed to by the
Board of Directors of the Company (hereinafter referred to as
"the Board" which term shall be deemed to include any
Committee including ESOP Compensation Committee which
the Board may constitute to exercise its powers, including the
powers conferred by this resolution), consent of the Company
be and is hereby accorded to the Board to create, offer, issue
and allot at any time to or for the benefit of such person(s) who
are in permanent employment of the Company, including
Directors of the Company, whether working in India or out of
India under a Scheme titled "Employee Stock Option
Plan"(hereinafter referred to as the "ESOP" or "Scheme" or
"Plan") such number of equity shares and/or equity linked
instruments (including Options), equity shares issued through
American Depository Receipt("ADRs") and/or Global
Depository Receipts("GDRs") and/or any other instruments or
securities (hereinafter collectively referred to as "Securities")
of the Company which could give rise to the issue of equity
shares not exceeding 5% of the issued Equity Share Capital
of the Company on 31st March, 2000, at such price, in one or
more tranches and on such terms and conditions as may be
fixed or determined by the Board in accordance with the
Guidelines or other provisions of the law as may be prevailing
at that time;
RESOLVED FURTHER THAT the said Securities may be
allotted directly to such employees/directors or in accordance
with a Scheme framed in that behalf through a trust which may
be setup in any permissible manner and that the scheme may
also envisage for providing any financial assistance to the
trust to enable the employee/trust to acquire, purchase or

subscribe to the securities of the Company;
RESOLVED FURTHER THAT the new Equity Shares to be
issued and allotted by the Company in the manner aforesaid
shall rank pari passu in all respects with the then existing
Equity Shares of the Company; except that they shall be
entitled for dividend on pro-rata basis from the date of
allotment till the end of the relevant financial year in which the
new Equity Shares are allotted;
RESOLVED FURTHER THAT for the purpose of giving effect
to any creation, offer, issue, allotment or listing of Securities,
the Board be and is hereby authorised on behalf of the
Company to evolve, decide upon and bring in to effect the
Scheme and make any modifications, changes, variations,
alterations or revisions in the said Scheme from time to time
or to suspend, withdraw or revive the Scheme from time to
time as may be specified by any statutory authority and to do
all such acts, deeds, matters and things as it may in its
absolute discretion deem fit or necessary or desirable for such
purpose and with power on behalf of the Company to settle
any questions, difficulties, or doubts that may arise in this
regard without requiring the Board to secure any further
consent or approval of the members of the Company.”

8. To consider and if thought fit, to pass with or without
resolution as a Special

following

the

in accordance with

modification(s),
Resolution:
"RESOLVED THAT
the provisions
contained in the Articles of Association and Sections 79A, 81
and all other applicable provisions of the Companies Act,
1956 ("the Act") and the provisions contained in the Securities
and Exchange Board of India (Employee Stock Option
Scheme
and Employee Stock Purchase Scheme)
Guidelines,1999 ("the Guidelines") (including any statutory
modification(s) or re-enactment of the Act or the Guidelines,
for the time being in force) and subject to such other
approvals, permissions and sanctions as may be necessary
and subject to such conditions and modifications as may be
prescribed or
imposed while granting such approvals,
permissions and sanctions which may be agreed to by the
Board of Directors of the Company (hereinafter referred to as
"the Board" which term shall be deemed to include any
Committee including ESOP Compensation Committee which
the Board may constitute to exercise its powers, including the
powers conferred by this resolution) consent of the Company
be and is hereby accorded to the Board to extend the benefits
of Employees Stock Option Plan proposed in the resolution
under Item no. 7 in this Notice to the eligible employees/
directors of the holding/subsidiary companies, and/or to such
other persons, as may from time to time be allowed under
prevailing laws, rules and regulations, and/or amendments
thereto from time to time, on such terms and conditions as
may be decided by the Board.
RESOLVED FURTHER THAT for the purpose of giving effect
to any creation, offer, issue, allotment or listing of Securities,
the Board be and is hereby authorised on behalf of the
Company to evolve, decide upon and bring in to effect the
Scheme and make any modifications, changes, variations,
alterations or revisions in the said Scheme from time to time
or to suspend, withdraw or revive the Scheme from time to
time as may be specified by any statutory authority and to do
all such acts, deeds, matters and things as it may in its
absolute discretion deem fit or necessary or desirable for such
purpose and with power on behalf of the Company to settle
any questions, difficulties, or doubts that may arise in this
regard without requiring the Board to secure any further
consent or approval of the members of the Company.”

the

following

9. To consider and if thought fit, to pass, with or without
resolution as a Special

modification(s),
Resolution:
"RESOLVED THAT
the provisions
contained in the Articles of Association and Sections 77A ,
77B and all other applicable provisions, if any, of the
Companies Act, 1956 (the Act) and the provisions contained

in accordance with

Reliance Industries Limited

GROWTH IS L IFE

the Act and

in the Securities and Exchange Board of India (Buy-back of
Securities) Regulations, 1998
("Buy-back Regulations")
(including any statutory modification(s) or re-enactment of the
Act or Buy-back Regulations, for the time being in force) and
subject to such other approvals, permissions and sanctions
as may be necessary and subject to such conditions and
modifications as may be prescribed or imposed while granting
such approvals, permissions and sanctions which may be
agreed to by the Board of Directors of the Company
(hereinafter referred to as the Board which term shall be
deemed to include any Committee which the Board may
constitute to exercise its powers, including the powers
conferred by this resolution), the consent of the Company be
and is hereby accorded to the Board to purchase its own fully
paid equity shares of Rs.10 each for an amount not exceeding
Rs. 1,100 crores, upto a maximum price of Rs 303 per share
(hereinafter referred to as "Buy-back") ;
RESOLVED FURTHER THAT the Company may implement
the Buy-back in one or more tranche/tranches, from out of its
free reserves and/or the securities premium account and/or
the proceeds of an earlier issue of shares other than equity
shares made specifically for Buy-back purposes, and that the
Buy-back may be made through the methodology of open
market purchases in the stock exchanges, in such manner as
may be prescribed under
the Buy-back
Regulations, and on such terms and conditions as the Board
may in its absolute discretion deem fit;
RESOLVED FURTHER THAT nothing contained hereinabove
shall confer any right on the part of any Shareholder to offer,
or any obligation on the part of the Company or the Board to
Buy-back, any shares, and/or impair any power of the
Company or the Board to terminate any process in relation to
such Buy-back, if so permissible by law;
RESOLVED FURTHER THAT the Board of Directors of the
Company (including any Committee thereof) be and is hereby
authorised to do all such acts, deeds, matters and things as
may, in its absolute discretion, deem necessary expedient
usual or proper including the appointment of Merchant
Advertisement
Bankers, Brokers, Solicitors, Registrars,
Agency, Compliance Officer, Investors Service Centre and
other Advisors , Consultants or Representative , incidental to
the implementation of the scheme of Buy-back as also to
prefer all applications to the appropriate authorities, parties
and the institutions for their requisite approvals as also to
initiate all necessary actions for preparation and issue of
public announcement and filing of public announcement with
SEBI/Stock Exchange(s), filing of declaration of solvency
certificate and filing of certificate for extinguishment and
physical destruction of certificates, and all other documents
required to be filed in the above connection and to settle all
such questions or difficulties whatsoever which may arise in
the Buy-back and take all such steps and decisions in this
regard;
the Board of Directors
RESOLVED FURTHER THAT
(including any Committee
is hereby
authorised to sub-delegate all or any of the authorities
conferred as above to any Director(s)/Officer(s)/Authorised
Representative(s) of the Company to give effect to the
aforesaid
to accept any change(s) or
modification(s) as may be suggested by the appropriate
authorities or Advisors."

thereof) be and

resolution or

10. To consider and if thought fit, to pass, with or without
modification(s), the following resolution as an Ordinary
Resolution:
"RESOLVED THAT in accordance with the provisions of
Sections 198, 269 and 309 read with Schedule XIII and all
other applicable provisions of the Companies Act, 1956
(including any statutory modification(s) or re-enactment
thereof, for the time being in force), the consent of the
Company be and is hereby accorded to the re-appointment of
Shri Hital R. Meswani, as a Whole time Director, designated
as Executive Director of the Company, for a period of 5 (five)
years with effect from 4th August, 2000, on the terms and
conditions including remuneration as are set out in the
agreement to be entered into between the Company and Shri
Hital R. Meswani, a draft whereof is placed before this meeting
which agreement is hereby specifically sanctioned with liberty

to the Board of Directors (hereinafter referred to as "the
Board" which term shall be deemed to include any Committee
which the Board may constitute to exercise its powers,
including the powers conferred by this resolution) to alter and
vary the terms and conditions of the said appointment and/or
remuneration and/or agreement so as not to exceed the limits
specified in Schedule XIII to the Companies Act, 1956
including any statutory modification or re-enactment thereof,
for the time being in force or any amendments and/or
modifications that may hereafter be made thereto by the
Central Government in that behalf from time to time, or any
amendments thereto as may be agreed to between the Board
and Shri Hital R. Meswani;
RESOLVED FURTHER THAT where in any financial year
closing after 31st March, 2000, the Company has no profits or
its profits are inadequate, the Company do pay to Shri Hital R.
Meswani, remuneration by way of salary, perquisites and
allowances not exceeding the ceiling limit specified under
Section II of Part II of Schedule XIII to the Companies Act,
1956;
RESOLVED FURTHER THAT the Board be and is hereby
authorised to take all such steps as may be necessary, proper
or expedient to give effect to this resolution."

in accordance with

11. To consider and if thought fit, to pass, with or without
modification(s), the following resolution as an Ordinary
Resolution:
"RESOLVED THAT Shri H.S.Kohli, who was appointed as an
Additional Director of the Company pursuant to section 260 of
the Companies, Act 1956 and holds office upto the date of this
Annual General Meeting and in respect of whom the Company
has received a notice under section 257 of the Companies,
Act 1956, in writing, proposing his candidature for the office of
director, be and is hereby appointed as a Director of the
Company subject to retirement by rotation under the Articles
of Association of the Company;
RESOLVED FURTHER THAT
the
provisions of Sections 198, 269 and 309 read with Schedule
XIII and all other applicable provisions of the Companies Act,
1956 (including any statutory modification(s) or re-enactment
thereof, for the time being in force), the consent of the
Company be and is hereby accorded to the appointment of
Shri H.S.Kohli, as a Whole time Director, designated as
Executive Director of the Company, for a period of 5 (five)
years with effect from 1st April, 2000, on the terms and
conditions including remuneration as are set out in the
agreement to be entered into between the Company and Shri
H. S. Kohli, a draft whereof is placed before this meeting which
agreement is hereby specifically sanctioned with liberty to the
Board of Directors (hereinafter referred to as "the Board"
which term shall be deemed to include any Committee which
the Board may constitute to exercise its powers, including the
powers conferred by this resolution) to alter and vary the
terms and conditions of
the said appointment and/or
remuneration and/or agreement so as not to exceed the limits
specified in Schedule XIII to the Companies Act, 1956
including any statutory modification(s) or re-enactment
thereof, for the time being in force or any amendments and/or
modification(s) that may hereafter be made thereto by the
Central Government in that behalf from time to time, or any
amendments thereto as may be agreed to between the Board
and Shri H.S.Kohli;
RESOLVED FURTHER THAT where in any financial year
closing after 31st March, 2000, the Company has no profits or
its profits are inadequate, the Company do pay to Shri
H.S.Kohli, remuneration by way of salary, perquisites and
allowances not exceeding the ceiling limit specified under
Section II of Part II of Schedule XIII to the Companies Act,
1956;
RESOLVED FURTHER THAT the Board be and is hereby
authorised to take all such steps as may be necessary, proper
or expedient to give effect to this resolution."

the

12. To consider and, if thought fit, to pass, with or without
resolution as a Special

modification(s),
Resolution:
"RESOLVED THAT in accordance with the provisions of
Sections 198, 309 and 310 read with Schedule XIII to the
Companies Act, 1956 and all other applicable provisions, if

following

Reliance Industries Limited

GROWTH IS L IFE

for

initialled

any, of the said Act, including any statutory modification(s) or
re-enactment thereof for the time being in force and in partial
modification of the Ordinary/Special Resolutions previously
passed at general meetings, from time to time, of the
Company, the Company hereby approves the enhancement in
the salary, perquisites, allowances and commission payable
to Shri Dhirubhai H. Ambani, Chairman, Shri Mukesh D.
Ambani, Vice Chairman and Managing Director, Shri Anil D.
Ambani, Managing Director and Shri Nikhil R. Meswani,
Executive Director, with effect from 1st April, 2000, for the
remainder of the tenure of their respective terms as set out in
the respective draft Agreements submitted to this meeting
and
identification, which
the purpose of
Agreements are hereby specifically approved, with absolute
discretion to the Board of Directors (hereinafter referred to as
"the Board" which term shall be deemed to include any
Committee which the Board may constitute to exercise its
powers conferred by this resolution) to alter and vary the
terms and conditions in the said Agreements as the Board of
Directors/ committee may in its absolute discretion consider
necessary and as may be agreed to by the respective
directors;
RESOLVED FURTHER THAT where in any financial year
closing after 31st March, 2000, the Company has no profits or
its profits are inadequate, the Company do pay to Shri
Dhirubhai H. Ambani, Shri Mukesh D. Ambani, Shri Anil D.
Ambani, and Shri Nikhil R. Meswani, remuneration by way of
salary, perquisites and allowances not exceeding the ceiling
limit specified under Section II of Part II of Schedule XIII to the
Companies Act, 1956;
RESOLVED FURTHER THAT the Board be and is hereby
authorised to take all such steps as may be necessary, proper
or expedient to give effect to this resolution."

the

13. To consider and, if thought fit, to pass, with or without
resolution as a Special

following

modification(s),
Resolution:
"RESOLVED THAT pursuant to Sections 258, 259 and all
other applicable provisions, if any, of the Companies Act,1956
and subject to approval of the Central Government, the
number of directors of the Company for the time being in the
office be increased from twelve to fourteen :
RESOLVED FURTHER THAT pursuant to Section 31 and all
other applicable provisions, if any, of the Companies Act,
1956, Article No. 128 of the Articles of Association of the
Company shall stand deleted and the following Article shall
stand substituted in its place and stead as new Article 128
with effect from the date of Central Government's approval in
accordance with the provision of the Companies Act,1956;

ARTICLE 128 :-
Unless otherwise determined by the Company in General
Meeting, the number of Directors shall not be less than 3
(Three) and shall not be more than 14 (Fourteen).'
RESOLVED FURTHER THAT the Board be and is hereby
authorised to take all such steps as may be necessary, proper
or expedient to give effect to this resolution."

By Order of the Board of Directors

Rohit C. Shah
Vice President and Company Secretary

Place: Mumbai
Dated: 5th May, 2000

NOTES:
1. A member entitled to attend and vote is entitled to appoint a
proxy to attend and vote instead of himself and the proxy need
not be a member. The instrument appointing proxy should,
however, be deposited at the Registered office of the
Company not
the
commencement of the meeting.

forty eight hours before

than

less

2. Members/Proxies should bring the Attendance Slip duly filled

in for attending the meeting.

3. All documents referred to in the accompanying Notice are
open for inspection at the Registered Office of the Company
during office hours on all working days, except Saturdays, and

holidays, between 11.00 a.m. and 1.00 p.m. upto the date of
the Annual General Meeting.

4. The Board of Directors in their meeting held on 30th March,
2000 have declared payment of interim dividend of Rs 4 per
Equity Share for the year 1999-2000. At the Board meeting
held on 18th April, 2000 the Board has decided to treat the
interim dividend as final dividend. Accordingly, shareholders
would note the payment of interim dividend made on the
shares of the Company.(Refer item No. 2 of the Notice)

5. The Company has already notified closure of Register of
Members and the Transfer Books from Tuesday, 25th April,
2000 to Saturday, 29th April, 2000 (both the days inclusive) for
payment of interim dividend on equity shares. The Company
will dispatch the dividend warrants from16th May, 2000
onwards. In respect of shares held in Electronic form, the
dividend will be paid on the basis of beneficial ownership as
per details furnished by the Depositories for this purpose.
regard

to
Accounts are requested to write to the Company at an early
date so as to enable the management to keep the information
ready.

6. Shareholders seeking any

information with

7. The Company has already transferred, all unclaimed dividend
declared upto the financial year ended 31st March, 1996 to
the General Revenue Account of the Central Government as
required by the Companies Unpaid Dividend (Transfer to the
General Revenue Account of the Central Government) Rules,
1978. Those Shareholders who have so far not claimed or
collected their dividend upto the aforesaid financial year may
claim their dividend from the Registrar of Companies,
Maharashtra, Hakoba Compound, 2nd Floor, Kalachowki,
Mumbai 400 033.

8. Pursuant to the provision of section 205A of the Companies
Act,1956, as amended, dividend for the financial year ended
31st March, 1997 and thereafter, which remain unpaid or
unclaimed for a period of 7 years will be transferred to the
Investor Education and Protection Fund of the Central
Government. Shareholders who have not encashed the
dividend warrant(s) so far for the financial year ended 31st
March 1997 or any subsequent financial years are requested
to make their claim to the office of the Registrar and Transfer
Agents M/s Karvy Consultants Limited. It may also be noted
that once the unclaimed dividend is transferred to the Central
Government, as above, no claim shall lie in respect thereof.

9. Shareholders are requested to bring their copy of Annual

Report to the Meeting.

10. Appointment/Reappointment of Directors

At the ensuing Annual General Meeting, Shri R.H. Ambani,
Shri T.R.U. Pai and Shri N.R. Meswani retire by rotation and
being eligible offer themselves for reappointment. Shri H.R.
Meswani and Shri H.S. Kohli are being appointed as
Wholetime Directors for a period of 5 years. The information
or details to be provided for the aforesaid directors under
Corporate Governance code are as under:
(a) Shri Ramnikbhai H. Ambani, aged 75 years, has been one
of the foremost Director of the Company since 11th
January, 1977. He is the elder brother of Shri Dhirubhai H.
Ambani and has been instrumental in chartering the
growth of
initial years of
operations from its factory at Naroda, in Ahmedabad. He
set up and operated the textile plant of the Company at
Naroda, Ahmedabad and was responsible in establishing
the Reliance Brand name "VIMAL" in the textile market in
the country. He is also a Director in the following
Companies
Investments
Corporation Ltd., Yashraj Investments and Leasing Co.
Pvt Ltd., Anjali Threads Pvt Ltd., Anjali Fiscal Pvt Ltd.,
Action Exports Pvt Ltd., Tirupati Fabrics Ltd. and Sintex
Industries Ltd.

the Company during

viz: Gujarat

Industrial

its

(b) Shri T Ramesh U Pai, aged 75 years, hails from a family of
Bankers and is a Director of the Company since 6th July,
1979. He has vast experience in banking and finance and
has also set up many educational institutions. He is also a
Director in the following Companies viz: Manipal Home
Finance Ltd., Canara Steel Ltd., Manipal Power Co. Ltd.,
Manipal Holdings Ltd., Kurlon Ltd., Manipal Telephone &
Telecommunications Ltd., Manipal Pharmaceuticals Ltd.,
Manipal Control Data Electronics Commerce Ltd.,

Reliance Industries Limited

GROWTH IS L IFE

Lingapur Estates Ltd., Pushya Industrial Gases Ltd.,
Andhra Sugars Ltd., Sealy Kurlon Ltd., Dupont Kurlon
Ltd., Manipal Gold Co. Ltd. and Maharashtra Apex
Corporation Limited.

responsible

(c) Shri Nikhil R. Meswani, aged 34 years, is a Director of the
Company since 26th June,1986. He has a bachelor's
degree in Chemical Engineering from Bombay University.
He
fibre
intermediates, polymers and petrochemicals and indirect
taxation. Shri Meswani is a Director of Reliance Petroleum
Limited. He is also a member of the Indian Chemical
Manufacturers Association (ICMA) and Young Presidents
Association (YPO).

for marketing of

fibres,

(d) Shri Hital R. Meswani, aged 31 years, is a Director of the
Company since 4th August,1995. He is a B.Sc. in
Chemical Engineering from School of Engineering &
Applied Sciences - University of Pennsylvania and a
B.B.A from Wharton Business School, University of
Pennsylvania USA. He is responsible for setting up
manufacturing facilities at Hazira and Jamnagar. He is
also a Director of Reliance Petroleum Limited and a
member of American Alumni Association (AAO) and
Young Entrepreneurs' Association
is
associated with various industry organisations like the
Confederation of Indian Industries (CII) and The All India
Association of Industries (AIAI). He is the brother of Shri
Nikhil R. Meswani.

(YEO). He

and

operation

(e) Shri H. S. Kohli, aged 65 years, an M.S (Chem), has wide
experience
of
implementing
Petrochemical complex. Since 1991 he is working at the
Companys' Hazira Complex. Keeping in view his expertise
in the field of petrochemicals, the Board of Directors at its
meeting held on 30th March, 2000, appointed him as a
the Company designated as
Wholetime Director of
'Executive Director' for a period of five years with effect
from 1st April, 2000, subject
the approval of
shareholders at the Annual General Meeting. He is also a
Director in Reliance Assam Petrochemicals Limited.

Explanatory Statement under Section 173(2) of the
Companies Act, 1956
The Explanatory Statement for Item Nos. 7 to 13 of the
accompanying Notice set out hereinabove is as under:

Item No. 7.
The exponential growth of the Company over the past 2 decades
has, in large measure, been possible owing to the wholehearted
support, commitment and team work of its personnel. The
Company has been desirous of finding means to allow its
personnel to participate in its growth, through an appropriate
mechanism.
Stock Options have long been recognised internationally, as an
effective instrument, to align the interest of employees with those
of the Company, and its shareholders, provide an opportunity to
employees to share in the growth of the Company, and create long
term wealth in the hands of the employees.
Stock Options create a common sense of ownership between the
Company and its employees, paving the way for a unified
approach
the common objective of enhancing overall
shareholder value.
linked
Stock Options provide
rewards to employees, and serve as an important means, to
attract, retain and motivate the best available talent for the
Company.
From the Company's perspective, Stock Options also provide an
opportunity to optimise personnel costs, by allowing for an
retain,
additional, market-driven, mechanism
compensate and reward employees.
The Company had obtained the approval of its shareholders, as
far back as in 1993, for the introduction of an Employee Stock
Option Plan (ESOP). However, then prevailing regulations did not
permit an efficient mechanism to implement the ESOP.
The Securities and Exchange Board of India (SEBI), has now
introduced a comprehensive, and internationally comparable, set
of regulations last year, known as the SEBI (Employee Stock

tax-efficient, performance

to attract,

for

Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999.
The new Regulations have removed the constraints imposed by
the earlier laws, and have provided a conducive environment for
the implementation of an Employee Stock Option Plan.
The Company proposes to introduce the following two Stock
Option schemes for the benefit of permanent employees of the
Company, its Directors, and such other persons/entities as may
be prescribed by SEBI from time to time, and in accordance with
the provisions of prevailing regulations. The Stock Option
schemes will also cover any issuance of ADRs/GDRs/other
securities by the Company, as may be allowed from time to time
under prevailing regulations.
SCHEME A
Stock Options: Under this scheme, employees will be given an
option to acquire a certain number of shares of the face value of
Rs. 10 each, at the price as mentioned hereinafter.
SCHEME B
Stock Appreciation Rights (SAR) is a means for cashless
exercise of options. SAR entitles the employee to receive the
difference between the price computed for the purpose of grant,
and the price computed for the purpose of exercise, in the form of
shares of the Company. The number of shares received by the
employee is arrived at by dividing the total appreciation in value,
as calculated above, by the market price of the shares on the date
of exercise.
Applicable to both the Schemes.
The Company will constitute an ESOP Compensation Committee,
which will be a Committee of the Board of Directors, and will
consist of a majority of independent Directors, for administration
and superintendence of the ESOP.
The ESOP Compensation Committee will formulate the detailed
terms and conditions of the ESOP.
The ESOP Compensation Committee will, specify, inter alia, the
following:
•

quantum of options to be granted to any employee, and in
aggregate
conditions under which options vested in employees may
lapse
time period within which an employee may exercise vested
options in the event of temination or resignation
rights of an employee to exercise all the vested options at one
time or at various points of time within the exercise period
procedure for making a fair and reasonable adjustment to the
number of options and to the exercise period, in case of rights
issues, bonus issues, other corporate actions, or otherwise
procedure and mechanism for cashless exercise of options
lock-in period for the shares issued pursuant to exercise of the
options
any other related or incidental matters.

•
The following is the explanatory statement which sets out the
various disclosures as required by Clause 6 of the Securities &
Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 (hereinafter
referred to as the ESOP Guidelines).
The salient features of the ESOP are as under:-
(a) The total number of options to be granted

•

•
•

(b)

The total number of Options/SARs that may, in the aggregate,
be issued, under both the schemes:
Upto 5% of the issued equity share capital of the Company as
of 31st March, 2000 i.e. 5% of 105,37,57,027 equity shares.
Identification of classes of employees entitled to
participate in the ESOP
Persons who are "employees" of the Company, including
Directors, as defined in the ESOP Guidelines (including any
statutory modification(s) or re-enactment of the Act or the
Guidelines, for the time being in force), and as may be
decided by the ESOP Compensation Committee, from time to
time.
Under the prevailing regulations, an employee who is a
promoter or belongs to the promoter group will not be eligible
to participate in the ESOP.

Reliance Industries Limited

GROWTH IS L IFE

Employees will be granted Stock Option/Stock Appreciation
Rights based on performance, and such other parameters as
may be decided by the ESOP Compensation Committee, in its
discretion, from time to time.
The options granted to an employee will not be transferable to
any person and shall not be pledged, hypothecated,
mortgaged or otherwise alienated in any other manner.

Vesting of options may commence after a period of 1 year
from the date of grant, and may extend upto 5 years from the
date of grant. The vesting may occur in tranches, subject to
the terms and conditions of vesting, as may be stipulated by
the ESOP Compensation Committee, in its discretion, and
which will include performance appraisal of the employee.

(d) Exercise Price or Pricing Formula

The exercise price for the purposes of the grant of options will
be computed at a discount of 10% on the average of the
weekly high and low of the closing prices for the Company's
equity shares, quoted on the Bombay Stock Exchange, during
the 26 weeks preceding the date of grant of the options.

(e) Exercise Period and the process of Exercise

The exercise period may commence from the date of vesting,
and will expire not later than 7 years from the date of grant of
options, or such other period as may be decided by the ESOP
Compensation Committee, from time to time.
The Options will be exercisable by the Employees by a written
application to the Company to exercise the Options/SARs, in
such manner, and on execution of such documents, as may be
prescribed by the ESOP Compensation Committee from time
to time.
The options will lapse if not exercised within the specified
exercise period.

(f) Appraisal Process for determining the eligibility of

employees to ESOP
The appraisal process for determining the eligibility of the
employee will be specified by the ESOP Compensation
Committee, and will be based on criteria such as the seniority
of the employee, length of service, performance record, merit
of
the
employee, and/or any such other criteria that may be
determined by the ESOP Compensation Committee at its sole
discretion.

future potential contribution by

the employee,

(g) Maximum number of options/SARs to be issued per

employee and in aggregate
The maximum number of Options/SARs granted per
employee will not exceed 5,00,000 shares (i.e approx. 0.05%
of the issued and outstanding equity shares of the Company
as on 31st March, 2000). The aggregate of all such grants
shall not exceed 5% of the issued and outstanding equity
shares of the Company as on 31st March, 2000.

The Company will conform to the accounting policies specified in
Clause 13.1 of the SEBI (Employees Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999, and/or
such other guidelines as may be applicable, from time to time.
As the Scheme will entail further shares to be offered to persons
other than existing shareholders of the Company, consent of the
members is sought pursuant to the provisions of Section 81(1A)
and all other applicable provisions, if any, of the Act, and as per
the requirement of clause 6 of the Guidelines.
None of the Directors of the Company is, in any way, concerned or
interested in the resolution, except to the extent of the securities
that may be offered to them under the Schemes.
Your Directors, therefore, recommend the resolution to be passed
as a Special Resolution by the members.

Item No. 8.
As per the SEBI Guidelines, a separate resolution is required to
be passed if the benefits of ESOP are to be extended to
employees of the subsidiary or holding company. This separate
Resolution
those
employees, and/or such other persons as may be permitted from
time to time, under prevailing laws, rules and regulations, and/or

is being proposed accordingly,

to cover

amendments thereto from time to time. This may be read with
explanatory statement for Item No. 7.
None of the Directors is interested in this resolution. Your
Directors commend the resolution for your approval.

Item No. 9.
The following is the explanatory statement which sets out the
various disclosures as required under sub-section (3) of Section
77A of the Companies Act, 1956 (the Act) and Regulation 5 (1)
read with Schedule I attached to Securities and Exchange Board
of India (Buy-back of Securities) Regulations, 1998 ("Buy-back
Regulations"):
1. The Board of Directors of the Company in its meeting held on
12th April, 2000 has approved the proposal for Buy-back of its
own fully paid up equity shares of Rs.10 each (hereinafter
referred to as " Buy-back") in accordance with the provisions
contained in the Articles of Association, Section 77A ,77B and
all other applicable provisions of the Act, and the provisions
contained in the Buy-back Regulations.

2. The share Buy-back programme

is being proposed

in
pursuance of the Company's desire to maximise returns to
investors, and enhance overall shareholder value, by
returning cash to shareholders, in a tax efficient and investor
friendly, manner. This will be done without, in any manner,
compromising on the pursuit of high growth opportunities by
the Company.

3. The implementation of the share Buy-back programme will
also be in accordance with the statement made by the
Chairman of the Company, Shri Dhirubhai H. Ambani, at the
Annual General Meeting, held on June 24, 1999 that the
Company will utilise a suitable portion of its cash flows for
implementation of a share Buy-back programme, within the
parameters of the overall framework for capital allocation for
various objectives, such as capital expenditure for ongoing
maintenance and expansion / debottlenecking, reduction of
debt, enhanced distribution to shareholders by way of
dividends and share Buy-back, etc.

4. The share price of

the Company has consistently
outperformed the benchmark index, the BSE Sensex, and
delivered superior returns to domestic and international
investors, across all timeframes, spanning 10 years, 5 years,
3 years, 2 years, 1 year, and calendar year-to date, as at the
date of this notice. The details are as follows:

% Change in

Period

Year to Date
Year-on-Year
2 years
3 years
5 years
10 years

RIL share
Price

+ 34%
+ 129%
+ 74%
+ 122%
+ 160%
+ 929%

Sensex

-17%
+32%
+13%
+25%
+ 47%
+505%

RIL relative
to Sensex

+ 50
+97
+60
+97
+113
+424

5. Nonetheless, the Board shares the perception of a very large
number of international and domestic investors and analysts
that the Company's share continues to remain undervalued.
This under-valuation is best reflected by the fact that the
share is generally traded at a discount to the broad market
multiples, despite the Company's consistent track record of
consistent all round operational and financial performance
and growth.

6. The implementation of a share Buy-back programme will send
a strong and positive signal to the markets on this perceived
under-valuation of the Company's share. The share Buy-back
is expected to reduce floating stock, enhance long term price
performance, and contribute to an increase in the Company's
overall market capitalisation. The achievement of higher all-
round valuations for the Company's share will, in the long
term, facilitate the use of the share as a currency for
acquisitions, in the domestic and international context.

7. The implementation of the share Buy-back programme is also
expected to enable the Company to manage volatility in its
share price, and attract longer term investors to hold the

Reliance Industries Limited

GROWTH IS L IFE

share. The volatility of the Company's share vis-a-vis the
benchmark index, the Sensex, as measured by its beta, has
already declined from a high of around 2 a few years back, to
the 1.1 - 1.3 price range in recent years. The share Buy-back
is expected to lead to a further reduction of this volatility.
8. The reduction in beta will, in turn, lead to a lowering of the cost
of equity, and Weighted Average Cost of Capital (WACC), for
the Company, further enhancing its global competitiveness.
9. The share Buy-back programme is expected to contribute to
further
ratios, and overall
enhancement of shareholder value. The share Buy-back is
also expected to provide the Company with a powerful tool in
its endeavour to neutralize the impact of speculative forces,
and to protect the interests of its millions of long term
investors. The Company will judiciously deploy the resources
available for the share Buy-back, in a manner designed to
maximize overall shareholder value.

improvement

financial

10. Buy-back regulations require the Company to specify the
maximum amount proposed to be utilised for a share Buy-
back programme. The Board of your Company has proposed a
maximum limit of Rs. 1,100 crores for the share Buy-back
programme. This represents 9.93% of the aggregate of the
paid up share capital and free reserves of the Company,
against the maximum available 25% limit. This also represents
the largest ever share Buy-back announced in India.

11. This amount will be financed out of the Company's free
reserves and/or out of the securities premium account and/or
the proceeds of an earlier issue of shares other than equity
shares made specifically for Buy-back purposes. The funds
for Buy-back will be available from current surpluses, and/or
by liquidation of cash balances and financial investments,
and/or out of internal accruals of the Company.

12. Buy-back regulations also require the Company to specify the
maximum price at which shares may be bought back under
the share Buy-back. The Board of the Company has proposed
a maximum price of Rs. 303 per share, for the share Buy-back.
This represents a 22% premium to the average of the trading
price range of the Company's share for the preceding 52
weeks before the date of the Board Meeting at which the
proposal for Buy-back was approved i.e. April 12, 2000, and a
52% premium to a recent low of Rs. 199 recorded on March
14, 2000.

13. The price of Rs. 303 per share also represents the share
market price prevailing at the time of notification to the stock
exchanges of the Company's intention to implement a share
Buy-back programme. Internationally, there is no requirement
to specify a maximum Buy-back price, and share Buy-backs
are generally conducted at or around the market price
prevailing at the time of announcement of the share Buy-back.
14. The Company proposes to implement the share Buy-back
through the methodology of open market purchases in the
Stock Exchanges,
the
procedures, as may be prescribed, from time to time, under
the Act, and the Buy-back Regulations, and as may be
the Board of Directors (including any
determined by
Committee thereof) of the Company and on such terms and
conditions, as may be permitted in law, from time to time.
There will be no negotiated deals, spot transactions, or any
private arrangements, in the implementation of the share Buy-
back.

the manner, and

following

15. The promoters, and/or persons in control, of the Company,
and/or their associates, and/or persons acting in concert with
them, will not offer their shares to the Company under the
share Buy-back.

16. As per the provisions of the Act, the special resolution passed
by the shareholders approving the share Buy-back will be
valid for a maximum period of twelve months from the date of
passing of the special resolution (or such extended period as
may be permitted under the Act or the Regulations or by the
appropriate authorities). The Company proposes to complete
the buy back on or before 12th June, 2001.

17. In accordance with the regulatory provisions, the shares
bought back by the Company will compulsorily be cancelled,
and will not be held for re-issuance.

18. The Company's total debt:equity ratio, after the share Buy-

back, will be well below the maximum limit of 2:1 specified in
law.

19. In accordance with the provisions of the Act, the Company will
not be entitled to make a fresh offering of equity shares for a
period of 2 years from the date of completion of this share
Buy-back programme except in cases/circumstances referred
to in sub section (8) of section 77A of the Act.

20. The Company has not made any equity fresh offering for the
past nearly 6 years. This will mean that the Company will not
be making any equity offering for a total period of 8 years
since the year 1994, while maintaining its consistent track
record of growth, operational and financial performance, and
also preserving a conservative gearing profile, with a
debt:equity ratio of 0.82:1. During the previous six years, the
Company's net worth has increased from Rs. 4,335 crores in
March, 1994, to Rs. 13,983 crores in March 2,000 and the
Total Assets have increased from Rs. 8,121 crores in March,
1994 to Rs. 29,369 crores in March, 2000.

21. In this entire period, RIL has completed its major capital
expenditure programmes at Hazira and Jamnagar. This has
raised RIL's capacities from less than 1 million tonnes per
annum (tpa) to nearly 10 million tpa, and placed RIL amongst
the top 5 global producers in almost all its major products.
22. The restriction on issuance of fresh equity as above, also
extends to international offerings. The announcement of the
Buy-back programme confirms
that, as per existing
regulations, RIL will not be making any international equity
offering in the international markets in the aforesaid period,
and intends to only launch an Exchange programme for its
existing GDRs to be converted into US SEC registered, NYSE
listed ADRs, at an appropriate time.

23. The share Buy-back programme will be implemented after the
approval of the shareholders, subject to completion of
necessary formalities as prescribed in law.

24. (a) The aggregate shareholding of the promoters of the
Company, and/or persons who are in control of the
Company, and/or persons acting in concert with them, as
defined under the SEBI (Substantial Acquisition of Shares
and Takeovers), Regulations 1997, as on the date of the
notice convening the general meeting is 40.39 crores
Equity Shares of Rs.10 each, constituting 38.33 % of the
issued and paid up equity share capital of the Company.
(b) Some of the Promoters, and/or persons in control of the
Company, and/or persons acting in concert with them,
have purchased 32,825 Equity Shares of Rs. 10 each, in
a transaction at a rate of Rs. 241.36 per share on 24th
March, 2000, during the period of six months preceding
12th April 2000, being the date of the meeting of the Board
of Directors at which the Buy-back was approved.
25. The Company confirms that there are no defaults subsisting in
repayment of deposits,
redemption of debentures or
preference shares or repayment of term loans to any financial
institutions or banks.

26. The Board of Directors of the Company confirms that it has
made the necessary and full inquiry into the affairs and
prospects of the Company and the Board of Directors have
formed the opinion that:
(a) immediately following the date on which the general
meeting is convened, there will be no grounds on which
the Company could be found unable to pay its debts;
(b) as regards its prospects for the year immediately following
the date of the general meeting, having regard to their
intention with respect
the
Company's business during that year and to the amount
and character of the financial resources which will in the
view of the Board of Directors be available to the
Company during that year, the Company will be able to
meet its liabilities as and when they fall due and will not be
rendered insolvent within a period of one year from the
date of this Annual General Meeting; and

the management of

(c) in forming their opinion for the above purposes, the Board
of Directors have taken into account the liabilities, as if the
Company were being wound up under the provisions of
the Companies Act, 1956 (including prospective and
contingent liabilities).

Reliance Industries Limited

GROWTH IS L IFE

27. The text of the Report dated 5th May, 2000 received from
Messers. Chaturvedi and Shah and Rajendra and Company,
the Statutory Joint Auditors of the Company addressed to the
Board of Directors of the Company is reproduced below:
"In connection with the proposal of Reliance Industries
Limited (the "Company") to Buy-back its shares and in
pursuance of the provisions of Section 77A and 77B of the
Companies Act, 1956 and the SEBI (Buy-back of Securities)
Regulations, 1998, we have examined the audited financial
statements of the Company for the year ended 31st March,
2000 and the relevant records, ratios, analysis, reports and
according to the information and explanations given to us and
on the basis of such verification of records as we considered
appropriate, we report that :-
We have enquired into the Company's state of affairs.
In our opinion, the amount of maximum permissible capital
payment, being Rs. 1,100 crores which is 9.93% of the total
paid-up capital and free reserves of the Company, for the
shares
in
accordance with section 77A(2)(c) of the Companies Act,
1956.
The Board of Directors in their meeting on 12th April, 2000,
have formed their opinion, as specified in clause(x) of
Schedule 1 of Securities and Exchange Board of India (Buy
Back of Securities) Regulations, 1998, on reasonable grounds
and that the Company will not, having regard to its state of
affairs, be rendered insolvent within a period of 1 year from
the date of Annual General Meeting of the members of the
Company proposed to be held on 13th June, 2000".

is properly determined

to be bought back,

28. All the material documents referred to in the Explanatory
Statement such as Memorandum and Articles of Association,
relevant Board resolution for Buy-back of shares and the
Auditors' Report on their enquiry into the state of affairs of the
Company will be made available for inspection at the
Registered Office of the Company on all working dates,
except Saturdays and holidays, between 11.00 a.m. and
1.p.m. upto the date of Annual General Meeting.

29. As the proposal for Buy-back of Equity Shares will be in the
interests of the Company, the Directors recommend the
passing of the resolution as set out in the notice.

30. None of the Directors of the Company is, in anyway,
concerned or interested in the resolution, save and except to
the extent that, in like manner as for all other shareholders,
their percentage holding in the post Buy-back equity share
capital will proportionately stand enhanced as a result of the
share Buy-back.

Item No. 10.
Shri Hital R Meswani, is having wide experience in setting up and
running large size Petrochemical complexes. The present terms of
office of Shri Hital R. Meswani expires on 3rd August, 2000.
Keeping in view his expertise in the field of petrochemicals, the
Board of Directors at its meeting held on 30th March, 2000,
approved his re-appointment as a Wholetime Director of the
Company designated as 'Executive Director' for a period of five
years with effect from 4th August, 2000, subject to the approval of
shareholders at the Annual General Meeting. Shri Hital R.
Meswani fulfills the eligibility criteria set out under Part I of
Schedule XIII to the Companies Act,1956
The remuneration payable to Shri Hital R. Meswani has been
determined by the Remuneration committee constituted by the
Board of Directors.
The Agreement proposed to be entered into by the Company with
Shri Hital R. Meswani, in respect of his appointment, interalia,
contains the following terms and conditions;
Salary
Perquisites & Allowances
He shall be entitled
like
accommodation (furnished or otherwise) or house rent allowance
in lieu thereof; house maintenance allowance together with
reimbursement of expenses/or allowances for utilisation of gas,
electricity, water, furnishing and repairs; medical reimbursement;
leave
including
family
dependants; club
insurance and such other
perquisites and/or allowances, upto the amounts specified above,

: Rs. 1,25,000 per month
: Rs. 2,00,000 per month

to perquisites and allowances

for self and his

travel concession

fees, medical

subject to overall ceiling of remuneration stipulated in Sections
198 and 309 of the Companies Act, 1956. The said perquisites
and allowances shall be evaluated, wherever applicable, as per
the Income Tax Act, 1961 or any rules thereunder (including any
statutory modification(s) or re-enactment thereof, for the time
being in force). However, Company's contribution to Provident
Fund, Superannuation or Annuity Fund, to the extent these singly
or together are not taxable under the Income Tax Act, and gratuity
payable and encashment of leave at the end of the tenure, as per
the rules of the Company, shall not be included in the computation
of limits for the remuneration or perquisites aforesaid.
In addition to the salary, perquisites and allowances as above, the
Executive Director shall also be entitled to receive commission in
the manner as set out in the Explanatory statement under Item
No 12 to this Notice.
The terms and conditions set out for re-appointment and payment
of remuneration herein and/or in the Agreement may be altered
and varied from time to time by the Board of Directors of the
Company as it may, at its discretion deem fit so as not to exceed
the limits specified in Schedule XIII to the Companies Act, 1956
(including any statutory modification(s) or re-enactment thereof,
for the time being in force) or any amendments made thereto.
The Agreement may be terminated by either party (Company or
the Wholetime Director) by giving the other three months prior
notice of termination in writing.
The draft Agreement to be entered into between the Company and
Shri Hital R. Meswani is available for inspection at the Registered
Office of the Company on any working day excluding Saturdays
and holidays, upto the date of the ensuing Annual General
Meeting between 11.00 a.m. and 1.00 p.m.
Your Directors commend the resolution for your approval.
The above may also be treated as an abstract of the draft
agreement proposed to be entered into between the Company
and Shri Hital R. Meswani pursuant to Section 302 of the
Companies Act, 1956.
Shri Hital R. Meswani is deemed to be concerned or interested in
the resolution as it pertains to his re-appointment and/or
R.
remuneration payable to him. Further, Shri
Meswani may also be deemed to be interested in the resolution
pertaining to the re-appointment of and/or remuneration payable
to Shri Hital R. Meswani, as they are related to each other. Save
and except the above, none of the other Directors of the Company
are, in any way, concerned or interested in the said resolution.

Nikhil

Item No. 11.
Shri H.S.Kohli was appointed by the Board of Directors as an
Additional Director of the Company at its meeting held on 30th
March, 2000, with effect from 1st April, 2000. Pursuant to Section
260 of the Companies Act, 1956, Shri H.S.Kohli will hold office as
Additional Director upto the date of the ensuing Annual General
Meeting. The Company has received a notice in writing from a
member proposing the candidature of Shri H.S.Kohli for the office
of Director of the Company under the provisions of Section 257 of
the Companies Act, 1956.
Shri H.S.Kohli, a M.S (Chem), is having wide experience in
implementing and operation of Petrochemical complex. Since
1991 he is working in the Company at its Hazira Complex.
Keeping in view his expertise in the field of petrochemicals, the
Board of Directors at its meeting held on 30th March, 2000,
appointed him as a Wholetime Director of
the Company
designated as 'Executive Director' for a period of five years with
effect from 1st April, 2000, subject to the approval of shareholders
at the Annual General Meeting. Shri H.S.Kohli fulfills the eligibility
criteria set out under Part I of Schedule XIII to the Companies
Act,1956
The remuneration payable to Shri H.S.Kohli has been determined
by the Remuneration committee constituted by the Board of
Directors.
The draft Agreement to be entered into by the Company with Shri
H.S.Kohli, in respect of his appointment, interalia, contains the
following terms and conditions:
Salary
Perquisites and Allowances
He shall be entitled
like
accommodation (furnished or otherwise) or house rent allowance

Rs.80,000 per month
Rs.50,000 per month

to perquisites and allowances

:
:

Reliance Industries Limited

GROWTH IS L IFE

fees, medical

travel concession

for self and his

in lieu thereof; house maintenance allowance together with
reimbursement of expenses/or allowances for utilisation of gas,
electricity, water, furnishing and repairs; medical reimbursement;
leave
including
family
dependants; club
insurance and such other
perquisites and/or allowances, upto the amounts specified above,
subject to overall ceiling of remuneration stipulated in Sections
198 and 309 of the Companies Act, 1956. The said perquisites
and allowances shall be evaluated, wherever applicable, as per
the Income Tax Act, 1961 or any rules thereunder (including any
statutory modification(s) or re-enactment thereof, for the time
being in force). However, Company's contribution to Provident
Fund, Superannuation or Annuity Fund, to the extent these singly
or together are not taxable under the Income Tax Act, and gratuity
payable and encashment of leave at the end of the tenure, as per
the rules of the Company, shall not be included in the computation
of limits for the remuneration or perquisites aforesaid.
Shri H.S. Kohli, shall also be eligible to an annual increment of 5%
on the last drawn salary and perquisites during his tenure as
wholetime Director.
The terms and conditions as set out in the draft agreement may be
altered and varied from time to time by the Board of Directors of
the Company as it may, at its discretion deem fit, so as not to
exceed the limits specified in Schedule XIII to the Companies Act,
1956 or any amendments made thereto.
The Agreement may be terminated by either party (Company or
the Wholetime Director) by giving the other three months prior
notice of termination in writing.
The above may be treated as an abstract of the draft agreement
proposed to be entered into between the Company and Shri
H.S.Kohli, pursuant to Section 302 of the Companies Act, 1956.
The draft Agreement to be entered into between the Company and
Shri H.S.Kohli, is available for inspection by the Members of the
Company at the registered office of the Company on any working
day excluding Saturdays and holidays, upto the date of the
ensuing Annual General Meeting between 11.00 a.m. and 1.00
p.m.
Your Directors commend the resolution for your approval.
Shri H.S.Kohli is deemed to be concerned or interested in the
resolution as it pertain to his appointment and remuneration
payable to him. None of the other Directors of the Company is, in
any way, concerned or interested in the said resolution.

Item No. 12.
The terms of appointment and remuneration payable to Shri
Dhirubhai H. Ambani, Chairman, Shri Mukesh D. Ambani, Vice
Chairman and Managing Director and Shri Anil D. Ambani,
Managing Director, Shri Nikhil R. Meswani Executive Director,
was approved at the Annual General Meeting of the Company
held on 24th June, 1999. Their term expires on 28th February,
2004, 18th April, 2004, 30th April 2004 and 30th June, 2004
respectively. The shareholders at their meeting held on 24th
June,1999 have given their consent to the effect that the overall
remuneration payable by way of salary, perquisites, allowances
and commission to the aforesaid Directors and Shri Hital R.
Meswani Executive director of the Company shall not exceed in
the aggregate 0.75% of the net profits of the Company computed
under Section 349 of the Companies Act, 1956.
Subject to shareholders' approval, the Remuneration committee
of Directors has, with effect from 1st April, 2000 resolved to
increase the overall remuneration payable by way of salary,
perquisites, allowances and commission to Shri Dhirubhai H.
Ambani, Chairman, Shri Mukesh D. Ambani, Vice Chairman and
Managing Director and Shri Anil D. Ambani, Managing Director,
Shri Nikhil R. Meswani and Shri Hital R. Meswani Executive
Directors of the Company to 1% of the net profits of the Company
computed under Section 349 of the Companies Act, 1956. The
commission will be paid to the aforesaid Directors, in proportion to
their respective salary (excluding perquisites and allowances)
after the annual accounts have been adopted by the shareholders.
The committee has further proposed to enhance the salary,
perquisites and allowances payable to all the Wholetime
Directors as under;
Shri Dhirubhai H. Ambani, Chairman, be paid a salary of Rs.
6,25,000 per month and Perquisites and Allowances of Rs.
4,50,000 per month. Shri Mukesh D. Ambani, Vice Chairman &

Managing Director be paid a salary of Rs. 5,00,000 per month and
Perquisites and Allowances of Rs. 4,00,000 per month. Shri Anil D.
Ambani, Managing Director, be paid a salary of Rs. 5,00,000 per
month and Perquisites and Allowances of Rs. 4,00,000 per month.
Shri Nikhil R. Meswani, Executive Director, be paid a salary of Rs.
1,25,000 per month and Perquisites and Allowances of Rs.
2,00,000 per month.
The Board is entitled to revise the salary, perquisites and
allowances and commission payable to all or any of the aforesaid
Directors of the Company, at any time such that the overall
remuneration payable to them shall not exceed 1% of the net
profits of the Company as computed under Section 349 of the
Companies Act, 1956 ( including any statutory modification(s) or
re-enactment thereof for the time being in force ) or any
amendment made thereto.
The draft supplementary Agreements to be entered into between
the Company and each of Shri Dhirubhai H. Ambani, Shri Mukesh
D. Ambani, Shri Anil D. Ambani and Shri Nikhil R. Meswani
respectively are available for inspection at the Registered Office
of the Company on any working day excluding Saturdays and
holidays upto the date of the ensuing Annual General Meeting
between 11.00 a.m. and 1.00 p.m.
Shri Anil D. Ambani is also the Managing Director of Reliance
Petroleum Limited (RP), a Group Company. He does not draw any
remuneration from RP and has been appointed as Managing
Director without any remuneration by the shareholders of RP.
Your Directors commend the resolution for your approval.
The above may also be treated as an abstract of the terms of
contract/agreement between the Company and Shri Dhirubhai H.
Ambani, Shri Mukesh D. Ambani, Shri Anil D. Ambani and Shri
Nikhil R. Meswani respectively pursuant to Section 302 of the
Companies Act, 1956.
Shri Dhirubhai H. Ambani, Shri Mukesh D. Ambani, Shri Anil D.
Ambani and Shri Nikhil R. Meswani are interested in the resolution
as it pertains to remuneration payable to each of them. Further,
Shri Dhirubhai H. Ambani, Shri Mukesh D. Ambani and Shri Anil D.
Ambani may be also deemed to be concerned interested in the
resolution pertaining to the remuneration payable to each other, as
they are related to one another. Further, Shri Hital R. Meswani and
Shri Nikhil R. Meswani may also be deemed to be concerned or
interested
the payment of
remuneration to each other as they are inter se related. Shri R. H.
Ambani, Director of the Company, being related to Shri Dhirubhai
H. Ambani may be deemed to be concerned or interested in the
resolution pertaining
to Shri
Dhirubhai H. Ambani. Save and except the above, none of the
other Directors of the Company is, in any way, concerned or
interested in the resolution.

the remuneration payable

the resolution pertaining

Item No. 13.
With a view to complying with the mandatory requirements
stipulated in the Corporate Governance Code it is necessary to
increase the representation of non executive Director on the
Board of the Company, thus requiring the Company to increase the
total number of Directors for the time being in the office, from
twelve to fourteen.
In terms of Section 259 of the Companies Act, 1956, the aforesaid
proposal requires approval of the Central Government besides
obtaining approval of the shareholders by passing a Special
Resolution.
Consequently Article 128 of the Articles of Association of the
Company is sought to be amended in the manner set out in the
resolution.
Your Directors commend the resolution for your approval.
None of the Directors of the Company is, in any way, concerned
or interested in the said resolution.

By Order of the Board of Directors

Rohit C. Shah
Vice President and Company Secretary

Place: Mumbai
Dated: 5th May, 2000

Reliance Industries Limited

GROWTH IS L IFE

Chairman’s Communication

My dear fellow Reliance shareowners

You will be delighted to learn that Reliance Industries has once again maintained its leadership position in the entire
Indian private sector. We have reported another year of record, all-round operational and financial performance.

Reliance Industries has achieved a rare distinction this year. We have become the first private sector company in
India, to cross the milestone of Rs. 20,000 crores (US$ 4.6 billion) in annual sales.

Our gross profit this year (earnings before interest, depreciation and tax) has crossed a new threshold. We have
become the first private sector company in India to break the billion dollar barrier. Gross profit has increased 43% to
Rs. 4,746 crores (US$ 1,088 million).

Our net profit, too, has set another record. We have become the first Indian private sector company to cross the half
a billion dollar mark, at Rs. 2,403 crores (US$ 551 million).

Our production volumes this year have touched record nearly 9 million tonnes.

These numbers all stand testimony to the demonstrated international scale, and global competitiveness, of our
operations. I Invite all of you to join me in saluting the young Reliance team, of over 15,000 world class, fully committed
people, who have made all this possible.
Operational Highlights
This year, we have completed our Rs. 25,000 crore (nearly US$ 6 billion) integrated Jamnagar complex, in a record
period of less than 3 years. The Jamnagar complex houses:
-
-
-

the world's largest grassroot refinery project with capacity of 27 million tonnes per annum;
the world's largest paraxylene project, with capacity of 1.4 million tonnes per annum;
the world's largest polypropylene project, with capacity of 600,000 tonnes per annum;

together with the country's largest all weather port, power plants, and all related infrastructure.

The completion of the Jamnagar complex, in this record time frame, is another proud moment in the evolution of
Reliance, and stands in reaffirmation of our philosophy - Growth is Life !

The completion of the Jamnagar complex will further strengthen our market leadership, increase the degree of vertical
integration, and enhance our global competitiveness.

During the year, in line with our announced objective of participating in consolidation of domestic industry, we have
completed acquisition of control over an additional 75,000 tonnes of domestic polyester capacity. This will further
enhance our leading market share in the polyester business.

We have been awarded a total of 14 offshore oil and gas exploration blocks by the Government of India. Our total
acreage for exploration now exceeds 1,00,000 square kilometers, off the country's West and East coast.

This makes Reliance Industries the leading E&P (oil and gas exploration and production) player in the private sector
in India.
Our Strengths
Reliance has invested over Rs. 35,000 crores (over US$ 8 billion) in the past decade, for completion of its various
manufacturing complexes at Jamnagar, Hazira and Patalganga.

We have achieved this, while adopting a most conservative financial stance, ensuring that our gearing remains low.
Our gross debt:equity ratio stands at just 0.82:1.

All these investments, in creation of world class, and globally competitive assets, have catapulted Reliance to the
ranks of the world's largest, most integrated, highly profitable, and fastest growing, energy and petrochemicals
companies.

These investments, together with our extensive nationwide marketing and distribution network, and emphasis on
providing total customer satisfaction, form the bedrock of our leading market shares in all our products, in India's
large, and fast growing, home market.

The creation of world class assets, here in India, has also enabled us to consistently increase our presence in global
export markets. Our export revenues have multiplied more than 20 times in the past 4 years to Rs. 1,811 crores (US$
415 million).

Importantly, the unique hands-on experience of setting up world class assets in India, on this scale and magnitude,
has given birth to a rare combination of engineering, project implementation, technology absorption, and operational,
skills, capabilities and talents, within our people.

This pool of intellectual capital, is a unique strength resident within Reliance. It cannot be measured, or quantified. Yet,
it is this 'intangible' advantage which is giving us the driving confidence to pursue the diverse growth opportunities for
the future.
The Opportunity
Reliance's growth has been driven by the economic transformation of the country since the early 1990s.

In the early 1990s, Reliance's profits were less than Rs. 400 crores (around US$ 100 million). This year, net profit has
touched Rs. 2,403 crores (US$ 551 million).

Reliance Industries Limited

GROWTH IS L IFE

We have been able to successfully deploy Reliance's entrepreneurial abilities, to seize the opportunities thrown up by
economic liberalisation.

Demand growth for our products has benefitted from the rapidly growing consumption of basic goods and services in
the country. Our products have application in the fastest growing areas of the economy, such as, agriculture, the
household sector, clothing, automobiles, consumer goods and electronics, food and beverages, computers, and
telecom.

We have experienced compounded, double-digit, growth rates for demand of our products over the past decade. With
Indian per capita consumption still remaining far below levels for other similar economies, we expect demand to
maintain its growth momentum, providing a good market for all our products.

We are also increasing our focus on production of speciality grades of our existing products, in the endeavour to move
further up the value chain, and differentiate ourselves from other producers.

We will naturally be embracing all new and appropriate technologies, and the Internet, for improving productivity and
efficiency, achieving cost reduction, and enhancing our ability to deliver a superior value proposition to all our
customers and suppliers, and other constituents.

As we step into the 21st century, we are keenly conscious of the emerging opportunities in several new sectors,
particularly, related to telecom and the Internet.

Our foray into cellular and basic telecom services, through Reliance Telecom, was a recognition of these new
opportunities. We have gathered valuable industry knowledge and expertise, through these operations in Reliance
Telecom. We will endeavour to expand our presence in this sector, through appropriate investments in the future.
Shareholder Value Enhancement
Last year, I had acknowledged the concern expressed by some shareholders about the performance of the Reliance
share price in the previous year, even though the under-performance of stocks from the global chemicals industry, had
been a world-wide phenomenon.

I had also stated to you that we were committed to taking all necessary, and responsible steps to ensure that
Reliance's true fundamentals, and intrinsic worth, were more appropriately reflected in the marketplace.

I am delighted to report that in the last year our market capitalisation has gone up nearly 3 times, increasing by over
Rs. 20,000 crores (over US$ 4.5 billion), from Rs. 12,000 crores (US$ 2.7 billion) to over Rs. 33,000 crores (over US$
7.5 billion), and making Reliance one of the most valuable companies in India.

Our recently announced stock buyback programme of Rs. 1,100 crores (over US$ 250 million), the largest ever in
India, demonstrates our confidence in future growth prospects, and reflects our perception on continued
undervaluation of the Reliance Industries stock.

We will endeavour to judiciously deploy our resources to implement the stock buyback programme, as a measure to
return cash to shareholders in a tax efficient, and investor friendly, manner, and to reduce excessive volatility in our
share price.

The allocation of Rs. 1,100 crores (over US$ 250 million) for the stock buyback programme, represents only 30% of
the cash profits of Rs. 3,738 crores (US$ 857 million) for the year.

This will still leave substantial resources with the company, for deployment in the high growth opportunities of the
future.

We are committed to utilisation of our future cash flows in line with the capital allocation framework enunciated at our
Annual General Meeting in June 1999, to pursue the twin objectives of maintaining our growth momentum, and
simultaneously delivering strong returns to investors and enhancing overall shareholder value.

You will be happy to learn that Reliance Industries is already one of the handful of petrochemicals companies in the
world, generating Return on Equity (ROE) of over 20%.

Our message to all our people for this year is to consistently endeavour to deliver higher earnings growth, and further
improve our performance on all relevant financial benchmarks, such as Return on Capital Employed (ROCE) and
ROE.

You, as our shareowners of Reliance Industries, may also now look forward to returns beginning to flow in, from the
significant investments we have made in Reliance Petroleum Ltd. (RPL), as Reliance holds nearly 50% of RPL's equity
share capital.

In conclusion, I would like to say that the completion of the Jamnagar complex is a significant event - yet, it is just one
more milestone in Reliance's unending pursuit of profitable growth opportunities.

The future holds great promise, and it will be our consistent endeavour, as always, to deliver superior, all-round
performance, thereby maximising overall shareholder value, and bringing increased prosperity to all of you, my dear
fellow Reliance shareowners.

Reliance Industries Limited

Dhirubhai H. Ambani
Chairman

GROWTH IS L IFE

Financial Highlights

Consistent and robust growth

1999-2000

1998-99

97-98

’96-97

’95-96

’94-95

’93-94

’92-93

’91-92

1985

$ Mn

(Rs. in crores)

Sales

Total Income

Earnings Before Depreciation,

4,654

20,301

14,553

13,404

8,730

7,786

7,019

5,345

4,106

2,953

4,812

20,988

15,161

13,740

9,020

8,058

7,331

5,555

4,222

3,005

Interest and Tax (EBDIT)

1,088

4,746

3,318

2,887

1,948

1,752

1,622

1,159

Depreciation

Profit After Tax

Taxes paid to the Government

Equity Dividend %

Dividend Payout

293

551

853

Equity Share Capital

242

1,053

1,278

855

667

410

337

278

2,403

1,704

1,653

1,323

1,305

1,065

255

576

3,719

2,893

3,021

2,490

2,234

2,147

1,391

1,118

385

37.5

350

933

327

932

299

458

276

458

199

456

138

318

929

280

322

575

193

163

984

245

152

Reserves and Surplus

2,897

12,636

11,183

10,863

8,013

7,747

6,731

4,011

2,362

1,711

Net Worth

3,206

13,983

12,369

11,983

8,471

8,405

7,193

4,335

2,613

1,944

Gross Fixed Assets

5,654

24,662

22,088

19,918

14,665

11,374

8,390

5,132

4,641

4,314

Net Fixed Assets

Total Assets

Market Capitalisation

Number of Employees

3,542

15,448

15,396

14,973

11,173

9,233

6,585

3,600

3,368

3,338

6,733

29,369

28,156

24,388

19,536

15,038

11,529

8,121

6,083

4,880

1,046

7,645

33,346

12,176

16,518

14,395

9,783

12,027

10,718

4,388

6,656

906

–

15,912

16,640

17,375

16,778

14,255

12,560

11,873

11,944

11,940

9,066

733

744

139

373

254

311

736

607

Key indicators

1999-2000

1998-99

97-98

’96-97

’95-96

’94-95

’93-94

’92-93

’91-92

1985

Earnings Per Share - Rs.

Cash Earning Per Share - Rs.

0.50

0.80

22.4

34.6

Sales Per Share - Rs.

4.42

192.7

Book Value Per Share - Rs.

2.98

129.9

18.0

27.1

155.9

129.8

17.6

24.7

143.6

128.3

14.4

18.8

94.8

92.0

14.0

17.6

85.0

89.5

11.7

14.8

77.0

79.0

9.05

13.05

84.05

68.0

6.55

12.25

83.45

53.0

5.4

11.7

97.1

63.9

6.9

10.6

70.5

29.5

Debt : Equity Ratio

0.82:1

0.86:1

0.68:1

0.83:1

0.49:1

0.35:1

0.58:1

0.84:1

0.92:1

1.66:1

EBDIT/ Sales %

Net Profit Margin %

RONW % *

1US$ = Rs. 43.62 (Exchange rate as on 31.3.2000)

All references to $ are to US Dollars

23.4

11.8

23.4

11.8

21.8

22.8

11.7

19.0

21.5

12.3

21.6

22.3

15.2

22.3

22.5

16.8

25.3

23.1

15.2

23.5

21.7

10.8

18.2

22.6

7.8

20.7

19.5

5.5

17.1

19.0

9.7

30.5

Per share figures upto 1996-97 have been recast to adjust for 1:1 bonus issue in 1997-98.

* Adjusted for CWIP and revaluation

Reliance Industries Limited

GROWTH IS L IFE

India’s Largest Selling Brands

Product

Brand Logo

End Uses

Technology Partner

Business
/Brand

Polyesters

Recron

Texturised Yarn

Twisted/Dyed Yarn

Polyester Staple Fibre (PSF)

Polyester Filament Yarn (PFY)

Polyester Fibre Fill (PFF)

Relpet

Polyethylene Terephthalate (PET)

Polymers

Relene

High Density

Polyethylene (HDPE)

Reclair

Linear Low Density

Polyethylene (LLDPE)

Repol

Polypropylene (PP)

Reon

Polyvinyl Chloride (PVC)

Chemicals

Relab

Linear Alkyl Benzene (LAB)

Fibre

Paraxylene (PX)

Intermediates

Purified Terephthalic Acid (PTA)

Mono Ethylene Glycol (MEG)

Textiles
Vimal

Harmony

Suitings, Shirtings, Dress material,
Sarees
Furnishing fabrics, Day curtains
Automotive upholstery

Apparels, Home textiles
Industrial sewing threads,
Automotive Upholstery
Sleep Product : Pillows, Cushions,
Toys, Quilts, Mattresses

Packaging-water, soft drinks,
beverages, confectionary

Packaging-woven sacks,
films, containers,
Household-luggage
Industrial crates, pallets,
gas pipes, ropes,
Agriculture-water pipes

Packaging-films,
squeeze bottles.
Household-lid and caps,
water tanks, Industrial-storage
containers, liners,
cable sheathing.
Agriculture-drip irrigation

Packaging-Woven sacks,
TQ and BOPP films, containers,
strappings Household-Bathware,
Kitchenware, Furniture,
Industrial-Dashboard, bumpers,
grills, fender,
other plastic components

Pipes and fittings, profiles,
films and sheets, bottles
containers, wire and cables

E.I. DuPont, USA

E.I. DuPont, USA/Sinco, Italy

Novacor, Canada
(earlier DuPont, Canada)

Unipol

Geon Company, USA
(earlier B.F. Goodrich, USA)

Detergents

UOP, USA

ICI, UK/Du Pont

ABB Lummus Crest, Netherlands
(Shell Process)

Raw material-PTA

Raw material-Polyester

Apparels

Furnishings, home textiles

SlumbeRel

Fibre filled pillows and sleep products

Sleep products

E.I. DuPont, USA

RueRel

Suitings

Reancé

Readymade Garments

Oil and Gas

Crude Oil and Natural Gas

Refining, Power, Fertilizers
and Petrochemicals

Enron Oil and Gas, USA

Reliance Industries Limited

GROWTH IS L IFE

Product Flow Chart

Abbreviation
DEG
DMT
EDC
EO
HDPE
LAB
LLDPE

Full Name
Di-ethylene glycol
Di-methyl-terephthalate
Ethylene di-chloride
Ethylene oxide
High density polyethylene
Linear alkyl benzene
Linear low density polyethylene

Abbreviation
MEG
NGL
NP
PET
PFY
PP
PSF

Full Name
Mono-ethylene glycol
Natural gas liquid
Normal paraffin
Polyethylene terephthalate
Polyester filament yarn
Polypropylene
Polyester staple fibre

Abbreviation
PTA
PVC
PX
TEG
VCM

Full Name
Purified terephthalic acid
Polyvinyl chloride
Paraxylene
Tri-ethylene glycol
Vinyl chloride monomer

(1) Plant also operational at Jamnagar Complex (2) Plant also under operation at Hazira complex (3) Plant operational at Hazira Complex.

Reliance Industries Limited

GROWTH IS L IFE

Management Discussion and Analysis

Forward-Looking Statements

This report contains forward-looking statements which may be
identified by their use of words like "plans," "expects," "will,"
"anticipates," "believes," "intends," "projects," "estimates" or other
words of similar meaning. All statements that address
expectations or projections about the future, including but not
limited to statements about the company's strategy for growth,
product development, market position, expenditures, and financial
results, are forward-looking statements.
Forward-looking statements are based on certain assumptions
and expectations of future events. The company cannot guarantee
that these assumptions and expectations are accurate or will be
realised. The company's actual results, performance or
achievements, could thus differ materially from those projected in
any such forward-looking statements. The company assumes no
responsibility to publicly amend, modify or revise any forward
looking statements, on the basis of any subsequent
developments, information or events.

Overall Review

Reliance Industries has maintained its leadership position in the
Indian private sector, in terms of total revenues, profits, assets
and net worth, for the year 1999-2000.
Several new records have been set this year.
Reliance has become the first company in the private sector in
India to report sales exceeding Rs. 20,000 crores ($ 4.6 billion).
Reliance has also become the first private sector company in
India to report gross profit exceeding $ 1 billion - Rs. 4,746 crores
($ 1,088 million) - and net profit exceeding half a billion dollars -
Rs. 2,403 crores ($ 551 million).
Total Assets have increased to nearly Rs. 30,000 crores ($ 6.7
billion).
Reliance has completed
integrated petrochemicals
its new
complex at Jamnagar, ahead of schedule, and within the
estimated capital outlay of Rs. 5,500 crores ($ 1.3 billion).
The Jamnagar complex houses the world's largest 1.4 million
tonnes per annum paraxylene plant, and 6,00,000 tonnes per
annum polypropylene plant.
The new facilities have increased Reliance's total capacity by
50%, from 6 million tonnes per annum to over 9 million tonnes per
the degree of vertical
annum, and significantly enhanced
integration.
Reliance is now ranked amongst the top 10 producers globally, in
almost all its products.
Reliance's sales have remained largely directed at the vast home
market in India - over 90% of production has been sold within
India, enabling Reliance to maintain its leading market shares in
all its products.
Reflecting the global competitiveness of Reliance's operations,
exports (including deemed exports) this year have increased
164% to Rs. 1,811 crores ($ 415 million).
Earnings Per Share (EPS) have increased to Rs. 22.4 ($ 0.50),
and Cash Earnings Per Share to Rs. 34.6 ($ 0.80), on the fully
diluted equity share capital of Rs. 1,054 crores ($ 242 million).
The broader environment was more positive this year, with Asian
economies rebounding, and reporting positive GDP growth,
accompanied by generally low inflation and stable foreign
exchange rates.
The Indian environment, too, remained positive, with GDP growth
above 5%, inflation maintained at low, single-digit levels, and
stability in the value of the Indian rupee.
The major challenge Reliance had to face this year was of dealing
with a steep increase in the prices of major feedstocks, and
significant volatility in the prices of all major products. Reliance

successfully met this challenge, reporting superior all-round
operational and financial performance.
Reliance has been awarded a total of 14 offshore oil and gas
exploration blocks by the Government of India. Reliance's total
acreage for oil and gas exploration now exceeds 1,00,000 square
kilometers, off the country's west and east coast. This includes
both, deep water and shallow blocks.
This has made Reliance Industries the leading E&P (oil and gas
exploration and production) player in the private sector in India.

Review of Operations

Reliance has once again set new production records during the
year, with production volumes surpassing all targets, and scaling
a record 8.92 million tonnes - an increase of 26% over the
previous year.
The business mix has remained largely unchanged, with polyester
and polyester intermediates contributing 45%, polymers and
polymers intermediates 36%, chemicals 16%, oil and gas 2% and
textiles 1%.
During the year, Reliance has acquired control over the polyester
manufacturing facilities of Raymond Synthetics Ltd., having
capacity of 75,000 tonnes per annum.
Reliance has acquired control over aggregate polyester capacity
of 1,40,000 tonnes per annum in the last 2 years. This has
contributed to deeper market penetration, increase in Reliance's
market share in the polyester business, expansion of the product
range, and a higher degree of integration for the company's
production of polyester intermediates.
Continued demand growth, and expansion of the domestic
markets, has ensured that over 90% of Reliance's sales revenues
were derived from domestic sales.
Reliance's major products find wide application in diverse and fast
growing areas, including agriculture, household sector, clothing,
automobiles, consumer goods, electronics, food and beverages,
computers and telecom.
Substitution of alternative materials, and new product
applications, have remained the key drivers for demand growth.
Reliance has significantly increased its production of speciality
grades of its various products, in the polyester and polymers
businesses. This has contributed to differentiation of Reliance
from other commodity producers, enabled entry into new markets,
and enhanced the overall value proposition for customers.
During the year, Reliance's production of speciality grades ranged
from 10% to 40% of the volumes in the respective product groups.
Reliance's extensive marketing and distribution network,
international product quality, product development efforts, strong
customer bonding, and competitive pricing approach, have
ensured that imports into the country for Reliance's products have
remained at marginal levels.

Financial Review

Sales increased nearly 40% to Rs. 20,301 crores ($ 4,654 million)
for the year ended March 31, 2000. Sales volume growth
contributed 22%, and the increase in average product selling
prices contributed the balance nearly 18%.
Sales included inter-divisional transfers of Rs. 4,454 crores ($
1,021 million). Net external sales for the year were up 54%.
Export revenues (including deemed exports) increased 164% to
Rs. 1,811 crores ($ 415 million). This included Rs. 333 crores ($ 76
million)
towards merchant exports, representing exports of
petroleum products under long term arrangements with Reliance
Petroleum Ltd. (RPL).
Gross profit (earnings before interest, depreciation and taxes) for
the year increased 43% to Rs. 4,746 crores ($ 1,088 million).

Reliance Industries Limited

GROWTH IS L IFE

The operating profit, excluding other income, was Rs. 4,059
crores ($ 931 million).
The operating margin improved from 18.6% to 20%, as a result of
strong volume growth, higher product prices mitigating higher
operational costs, gains from productivity, cost control and
operational efficiencies, higher degree of integration and value
addition, and rationalisation of customs duties.
Other income increased 13% to Rs. 687 crores ($ 158 million),
mainly as a result of higher yields on cash balances and
investments. Other income was largely comprised of interest and
dividends.
Interest expense increased 38% to Rs. 1,008 crores ($ 231
million), and depreciation increased 50% to Rs. 1,278 crores ($
293 million), consequent upon capitalisation of new assets, and a
change in the method of charging depreciation.
The increase in interest expenses is after setting off the impact of
considerable interest savings achieved during the year, by
refinancing higher cost borrowings, to take advantage of the
declining interest rate environment in the domestic capital
markets.
Interest expense capitalised has come down from Rs. 363 crores
($ 86 million) to Rs. 268 crores ($ 61 million).
The corporate tax liability for the year was Rs. 57 crores ($ 13
million), as a result of the imposition of a Minimum Alternative Tax
(MAT).
Net profit was up 41% at Rs. 2,403 crores ($ 551 million).
Capital expenditure during the year was nearly Rs. 2,500 crores ($
573 million), primarily on completion of the new Jamnagar
integrated petrochemicals complex.

Resources & Liquidity

Reliance continues to maintain its conservative financial profile,
as reflected in both, its domestic and international ratings.
The ratings of the company's long term debt were reaffirmed at
"AAA" from CRISIL, the highest rating awarded by the agency.
The company's international debt carries ratings of "BB" (positive
outlook) from S&P, and Ba2 (positive outlook) from Moody's, the
latter constrained by the sovereign ceiling.
Reliance's gross debt equity ratio, including (long term and short
term debt) as at March 31, 2000 is a conservative 0.82:1. This is
even after the completion of capital expenditure of nearly Rs.
16,000 crores (nearly $ 4 billion) by Reliance over the past 5
years, in its integrated petrochemical complexes at Hazira and
Jamnagar.
Reliance's fully diluted equity share capital now stands at Rs.
1,054 crores
($ 241 million). There are no outstanding
instruments, convertible into equity.
The company's equity position was strengthened by the exercise
of outstanding warrants, which were converted into common
share as per the terms of the original offering, thereby adding Rs.
900 crores ($ 206 million) to net worth.
The Company's net gearing as at March 31, 2000 was 38.6%,
even as total assets increased to nearly Rs. 30,000 crores ($ 6.7
billion) during the year.
Cash and bank balances as at March 31, 2000 were Rs. 1,082
crores
Foreign currency denominated
investments and balances, as of the same date, were Rs. 2,125
crores ($ 487 million).
The company remitted approximately $ 800 million (nearly Rs.
3,500 crores) during the year from its foreign currency balances
retained offshore. This was in line with the company's overall
foreign exchange risk management policies, in the backdrop of
rapidly growing export revenues.
The combination of cash balances and
foreign currency
denominated investments afford the company a substantial hedge
against translation risk on its long term debt, as well as adequate
standby liquidity.
The company's exports, and foreign exchange denominated oil
and gas revenues, now represent a multiple of its annual debt

($ 248 million).

service requirements vis-à-vis foreign currency debt, providing
more than adequate coverage.
The company's exposure to direct increase in feedstock costs
from devaluation of the rupee has also reduced, as it is presently
importing only ethylene dichloride (EDC). With the commissioning
of the refinery complex of Reliance Petroleum, the company is
presently buying its principal feedstock i.e. naphtha domestically.
Reliance funds its long term and project related financing
requirements from a combination of internally generated cash
flows and external sources.
Reliance has issued over $ 1.3 billion of debt securities in the
international capital markets since 1995, with maturities ranging
from 7 years to 100 years. The average final maturity of the
company's foreign exchange debt is 22 years.
During the year, Reliance demonstrated its financial flexibility and
innovativeness by successfully exercising call options on its
existing higher cost rupee debt, and refinancing the same by
issuing debt paper in the domestic market, to take advantage of
the declining interest rate environment.
Reliance repaid and exercised call options on domestic debt
aggregating to Rs. 2,134 crores ($ 489 million), and issued a
combination of fixed rate, floating rate and discounted securities
aggregating to Rs. 1,522 crores ($ 349 million), with significant
interest cost savings.
During the year, Reliance prepaid Rs. 1,000 crores ($ 229 million),
nearly 6 years ahead of the average maturity period on its oil &
gas securitisation transaction, which had been completed in the
previous year.
The exercise of the call option has contributed to significant
interest cost savings, even as the execution of the securitisation
transaction has enhanced Reliance's financial flexibility, by
establishing a standby source of liquidity for potentially more than
Rs. 2,500 crores (nearly $ 600 million).
Reliance meets
through
committed rupee credit lines, provided by a consortium of Indian
and foreign banks. The credit lines are fixed annually, and
reviewed on a quarterly basis. In addition, Reliance issues short
term debt in the form of commercial paper and unsecured bonds.
Reliance has established a rupee commercial paper program, to
provide an alternative source of working capital. Reliance's
commercial paper is rated at P1+by CRISIL, the highest credit
rating which may be assigned to this instrument. As at March 31,
2000, Reliance had no commercial paper outstanding. The peak
outstanding amount during the year was Rs. 595 crores ($ 136
million).
Reliance has significantly enhanced its pre-shipment export
financing programme, owing to the substantial increase in
exports. The year end outstandings were in excess of Rs. 570
crores ($ 131 million).
The combination of
significantly reduce the average cost of its short term debt.
Reliance also undertakes liability management transactions, such
as interest rate swaps and currency swaps, on an ongoing basis,
to reduce its overall cost of debt and diversify its liability mix.
Reliance's cash flows, at current year's levels, for less than 2
years, are adequate to extinguish its entire net debt.

the above has enabled Reliance

its working capital

requirements

Share Buyback Programme

Reliance has recently announced a share buyback programme for
Rs. 1,100 crores (over $ 250 million) - the largest ever share
buyback in India.
The objectives of the share buyback programme are to utilise a
portion of cash flows to return cash to shareholders in a tax
efficient, and investor friendly manner, while retaining adequate
resources for the pursuit of attractive growth opportunities.
The allocation of an amount of Rs. 1,100 crores (over $ 250
million) for the share buyback, against the maximum available
amount of nearly Rs. 3,000 crores, reflects this balanced
approach towards utilisation of cash flows.
The share buyback is also intended to contribute towards
improvement in Return on Equity (ROE), lower share price

Reliance Industries Limited

GROWTH IS L IFE

volatility - leading to a lower beta, reduction in weighted average
cost of capital (WACC), and enhanced global competitiveness.
The share buyback is proposed to be implemented at a maximum
price of Rs. 303 per share, representing a premium of 22% to the
average trading price range of the Reliance share for the 52
weeks preceding the date of the Board of Directors meeting for
the share buyback.
Reliance will judiciously deploy its resources within the specified
price level, to contribute to maximisation of overall shareholder
value.
Reliance has proposed to employ the transparent 'open market'
purchases methodology for the share buyback programme.
As per prevailing regulations, Reliance will not be entitled to make
a fresh offer of equity shares for a period of 2 years from the date
of completion of the share buyback programme.

Opportunities

Reliance's growth over the past 2 decades has been sustained by
the double digit growth rates witnessed in the domestic polyester
and polymers markets.
Despite the sustained growth over the past many years, India's
consumption of these products, at current levels, still remains
very low on a per capita basis. China, for instance, consumes
almost 3 times the polyester India does, and 4 times the polymers
India consumes.
Compared to global per capita levels of consumption, the Indian
numbers are even more modest. This reflects the significant
potential for continued demand growth in Reliance's major
products in the future.
Demand growth will continue to be driven by substitution of
alternative materials, and new product applications.
Two significant government policy announcements recently made,
have the promise of considerably further enhancing the demand
for polymers in the country.
In the Union Budget for 2000-01, the excise duties on polymers
have been cut from 24% to 16%. This has, for the first time,
brought the excise duties on these polymers at par with
alternative packaging materials, such as aluminium and glass.
This is likely to lead to a greater substitution of these traditional
packaging materials by polymers, as consumer choice will be
driven solely by product attributes, and not by artificial duty-based
cost considerations. At the same time, lower end prices of
polymers to customers will provide an additional impetus to
demand.
In another major initiative, the government has relaxed the
provisions of the Jute Packaging Material Act (JPMA) 1987, in
March, 2000. The JPMA provided that 100% of foodgrains and
sugar were to be packed in jute bags only, while a minimum 20%
of urea had to be packed in jute bags.
With the recent relaxation, this limit for packaging of foodgrains
and sugar has been reduced from 100% to 90%, and likewise, for
urea, from 20% to 15%.
This has the effect of opening up a completely new market for
polymers, as the packing of foodgrains and sugar stands opened
to polymers for the first time in decades. This is likely to add
significantly to domestic demand for these products.
With
integration of operations,
demonstrated global competitiveness, leading domestic market
shares, strong customer relationships, and extensive marketing
and distribution network, Reliance is ideally positioned to benefit
from the growing home markets for polyester and polymers.
Reliance has already announced plans to enhance its market
leadership, through an appropriate mix of acquisitions, greenfield
expansions, and debottlenecking of capacities, in these sectors.
Reliance also intends to capture the high growth opportunity in
exploration and production (E&P) of oil and gas in the country.
India is hugely deficit in both, crude oil and natural gas, and the
Government has offered several incentives to attract the private
sector players into this area.

international scale and

its

Reliance's total exploration acreage for oil and gas exceeds
1,00,000 sq. kms., and it is now the country's leading E&P player
in the private sector. Reliance will invest in this sector over the
next few years, to capture this growth opportunity.
Reliance is pursuing significant opportunities in the emerging
growth areas of power, telecom, and refining and marketing
(R&M) of petroleum products, which have only recently been
opened up to private sector participation. There is tremendous
demand potential for products and services in these sectors in
India.
Reliance's demonstrated project
implementation strengths,
technology absorption skills, sound financial position, strong
investor franchise, and financial engineering capabilities, position
the company ideally to sponsor these infrastructural projects.
The attractive growth opportunities in these new areas are being
pursued through separate companies promoted by Reliance,
namely, Reliance Power, Reliance Telecom and Reliance
Petroleum.

Challenges
As in the past, Reliance has to contend with the threat of
increased competition from overseas petrochemicals players,
mainly from the Middle East and the Asia Pacific region.
Reliance's business strategies are designed to combat these
perceived threats. Reliance has successfully followed a strategy
of pre-emptively building world class, and globally competitive,
capacities in the country, ahead of domestic demand.
its
Reliance has consistently delivered superior value
customers. This,
together with Reliance's strong customer
franchise, and extensive marketing and distribution network, has
enabled the company to successfully compete against the threat
of exports to India from the largest petrochemicals producers in
Asia, and the Middle East.
Reliance's continued domestic market leadership, even after the
opening up of the Indian market to imports, and the steep decline
in import duties, over the past several years, reflects the global
competitiveness of its operations, and its unique position of
strength in the Indian market.
To counter the threat of increased competition, Reliance has also
adopted a strategy of consciously moving up the value chain, with
a higher proportion of speciality grades in its output. This will
differentiate Reliance from commodity producers, contribute to
expansion into new markets, enhance margins, and deliver
superior overall value to its customers.

Outlook
Reliance operated all its production capacities at full rates, to
clock a record production volume of 8.9 million tonnes during
1999-2000.
Reliance is targeting to further increase its production to over 9
million tonnes during the year 2000-01. This partly represents the
impact of full operation of the new PP and PX capacities at the
Jamnagar complex, brought on stream during 1999-2000, and a
further increase in overall production efficiencies across all
manufacturing facilities.
RIL has already announced plans for doubling its polyester
capacities through a mix of acquisitions, debottlenecking and
fresh capacity creation, increase of PTA and MEG capacity in line
with polyester expansions, debottlenecking of its cracker from
750,000 tonnes per annum to 1 million tonnes per annum of
ethylene, and debottlenecking of PE capacities.
The additional capacities will be implemented at around 50% of
the current replacement costs of comparable assets. This will
ensure lower capital intensity and attractive returns through
business cycles. New capacity creation will also have an
increased focus on speciality products.
Reliance will endeavour to maintain, and enhance, its leadership
position
the polyester and polymers business, while
simultaneously pursuing attractive new growth opportunities in oil
and gas, power, telecom, and refining and marketing of petroleum
products.

Reliance Industries Limited

GROWTH IS L IFE

Risks and Concerns

Reliance derives over 90% of its revenues from the Indian
markets, and is potentially exposed to any risk of a significant
shock to the Indian economy. A major shock to the economy can
adversely impact demand for a large range of articles of basic
consumption, indirectly affecting the growth in demand for
Reliance's products.
Past experience indicates this to be a low area of concern, as
Reliance's products have continued to grow at double digit rates
during the last five years, at a time, when demand for many basic
goods, commodities, and other economy sensitive products,
suffered a setback owing to a slowdown in certain sectors of the
economy.
Reliance has also managed its market risk, with rapid growth in
export revenues over the past 4 years. Reliance's international
quality products are widely accepted, by leading customers in
developed markets, providing a measure of market diversification.
The petrochemicals industry is essentially global in nature, with
unhindered and relatively low cost movement of goods in the
international markets. A significant demand slowdown in the
global markets, or a major setback to the global economy, may
also adversely impact the demand and supply dynamics in the
global petrochemicals industry, of which Reliance is an integral
part.
Reliance is relatively insulated from this risk, owing to the strong
and rapidly growing domestic markets for its products, and its
ability to maintain its market leadership position in these markets.
All petrochemicals producers globally have to manage their
exposure to the lead and lag trends in the prices of feedstocks and
end products.
The prices of the basic building blocks, intermediates, and end
products along
the petrochemicals chain, generally move
together, which means large price declines and increases
normally tend to flow through the chain. In a shorter term
perspective, owing
to considerations of demand, product
inventories and other factors, the price movements may not be
synchronised, giving rise to lead and lag trends.
As a result, volatility in margins may be experienced by
petrochemicals producers in the interim periods, when the
feedstock prices and end product prices move out of
synchronisation. This is more representative of times of significant
volatility in prices, or abnormal demand and supply situations, in
some of the feedstock and product markets.
Reliance is relatively less exposed to this risk than most
petrochemicals producers, owing to its strategy of building a high
degree of vertical integration into its operations.
Reliance has progressively reduced feedstock supply risks to the
minimum, by adopting the vertical integration strategy, and
reducing its exposure to relatively less liquid feedstock markets.
After the commissioning of Reliance Petroleum Ltd. (RPL),
Reliance has the ability to source its entire naphtha requirement
from RPL, thereby removing the feedstock supply and quality
risks earlier faced by the company.
Reliance's products are subject to certain levels of import tariffs.
There is a risk of pressure on margins in the event of any steep
decline in import tariffs.
Import tariffs have already been substantially reduced from levels
of over 100% in the early 1990s, to the present levels of 5% to
35% for most of Reliance's products. Reliance also adopts
competitive pricing policies. This provides for reasonable pricing
flexibility, in the event of any decline in import tariffs.
A general decline in import tariffs will benefit Reliance on its
imports of capital equipment, catalysts, stores and spares, etc.
Based on past trends, it is also expected that in the medium to
longer term, the impact of any further decline in import tariffs will
be offset by the annual depreciation in the value of the Indian
rupee, as the benchmark landed price of imports would broadly
remain unchanged.
Reliance's global competitiveness, and superior capital and
operating cost position, will also enable the company to maintain

foreign exchange risk

its market leadership, in the event of any decline in import tariffs.
Reliance has raised foreign currency denominated external
commercial borrowings for $ 1.3 billion. Any adverse movement in
the value of the Indian rupee will increase the company's liability
on this acount in rupee terms.
Reliance has adopted conservative
management policies, in this regard.
The combination of cash balances, and
foreign currency
denominated investments, maintained by the company affords
significant foreign exchange risk cover.
The company's rapidly growing export revenues, and foreign
exchange denominated oil and gas revenues, provide more than
adequate cover for the external debt service requirements every
year.
The outlook for the Indian rupee is also now considered to be
relatively stable. Historically, the Indian rupee has depreciated at
an annual rate of around 5% over the past few decades.
In recent times, there has been a greater degree of stability. The
country's official foreign exchange reserves have climbed to a
record level of over $ 37 billion. For the year ended March 31,
2000, the Indian rupee has depreciated by less than 3% per
annum.
Reliance operates a large number of complex manufacturing
facilities, spread across 4 locations, having a significant degree of
technologies, and
vertical
manned by over 15,000 personnel.
Reliance manages potential operational risks by adopting leading
edge technologies, world class manufacturing practices, modern
HRD
(Human Resource Development) policies, and an
appropriate HSE (Health, Safety and Environment) framework.
Reliance has further insured its assets and operations against a
wide range of risks, as part of its overall risk management
strategies.
Reliance continues to follow suitable strategies to positively
modify its risk profile by eliminating and significantly reducing key
business risks, and developing and implementing strategies to
achieve the maximum possible degree of insulation from broad
macroeconomic risks.

integration, employing different

Adequacy of Internal Controls

Reliance has a proper and adequate system of internal controls to
ensure that all assets are safeguarded, and protected against loss
from unauthorised use or disposition, and that transactions are
authorised, recorded, and reported correctly.
The internal controls system is supplemented by an extensive
programme of internal audits, review by management, and
documented policies, guidelines and procedures. The internal
control system is designed to ensure that the financial and other
records are reliable, for preparing financial statements and other
data, and for maintaining accountability of assets.
The company's business ethics policy is an integral part of the
internal control system. This policy sets forth management's
commitment
the highest ethical
standards and in conformity with applicable laws. The business
ethics policy also requires that the documents supporting all
transactions clearly describe their true nature and that all
transactions be properly reported and classified in the financial
records.
The adequacy of internal controls is reviewed by the Audit
Committee of the Board of Directors.

to conduct business with

Business Review

Industry Structure and Developments

Reliance Industries is the leading producer of polyester, polyester
intermediates, and polymers, in the country. Reliance has
significantly enhanced its production capacities in the last
decade, and is presently ranked among the ten largest producers
in the world, in all its major products.

Reliance Industries Limited

GROWTH IS L IFE

Polyester (POY, PSF, and PET)

Reliance is the 4th largest producer of polyester filament yarn
(PFY), and 5th largest producer of polyester staple fibre (PSF) in
the world.
Within the country, Reliance is the largest among over 40
polyester producers. Reliance leads the industry, with a market
share of approximately 47%.
There is a significant gap in capacities and market shares,
between Reliance and the second player in each product
category.
Total production by the industry was up 5%, at 1.4 million tonnes
in the year 1999-2000. Demand growth during the year was 7%.
The Indian polyester industry is completely fragmented, with the
large majority of the producers lacking economies of scale, and
integration. Reliance is the only fully integrated producer, with
captive supplies of all key raw materials, namely, paraxylene (PX),
purified terephthalic acid (PTA) and mono ethylene glycol (MEG).
Reliance is also presently the only profitable producer in the
polyester business in India, as structural and other weaknesses
have led to chronic losses for almost all other producers.
In keeping with the global trend towards consolidation, the Indian
polyester industry is undergoing a phase of restructuring.
Reliance has been playing a leading role in this process, and has
acquired control over capacities aggregating more than 1,40,000
tonnes per annum, from several polyester producers over the last
few years.
RIL's focus is on creating long term value through these
arrangements, by leveraging its technological expertise, captive
availability of
raw materials, nation-wide marketing and
distribution network, strong customer relationships, and healthy
financial position.
Reliance has also announced, in June, 1999, its intention to
double its total polyester capacity, in phases over the next three
years, through a combination of acquisitions, fresh capacity
creation, and debottlenecking of existing capacities.
This will enable the company to participate in the growth of the
polyester sector in the domestic markets, and enhance its market
leadership, as well as strengthening its overall competitive
position.
No other polyester producer in the country has announced plans
for any significant capacity expansions in the near term.
Reliance also operates a unique 30,000 tonnes per annum
polyester fibrefill plant, for manufacturing "hollow fibres" specially
designed for filling and non-woven applications.
Polyester intermediates (PX, PTA, MEG)
Reliance is the 3rd largest paraxylene (PX), and 6th largest PTA,
producer in the world.
Within India, Reliance was the only producer of PX and PTA
during the year, and the largest among 5 producers of MEG.
Reliance's aggregate market share in the polyester intermediates
business was 87%. Total production by the industry was up 40%,
at nearly 2.5 million tonnes in the year 1999-2000.
During the year, RIL commissioned the world's largest 1.4 million
tonnes per annum PX plant at its new petrochemicals complex at
Jamnagar. This has eliminated Reliance's dependence on imports
of PX for consumption in its PTA plants, besides leaving a surplus
for external sales.
RIL has announced plans to increase its PTA and MEG capacities
further, in line with the announced increases in its polyester
capacities, to maintain the overall level of integration in its
operations.
A second player has entered the PTA market in the country after
the close of the financial year, with capacity of 3,50,000 tonnes
per annum.
Polymers (PP, PE and PVC)
Reliance is the 6th largest polypropylene (PP) producer, and 10th
largest polyethylene (PE) producer (based on swing capacities) in
the world.

the

the country, Reliance

Within
largest producer of
polypropylene (PP), polyethylene (PE) and polyvinyl chloride
(PVC).
There were 2 producers of PP, 4 for PE, and 6 for PVC in the
country. RIL's market share in these products is 56%.
Total domestic output of these products was up 27%, at 2.3 million
tonnes, during the year. Demand growth during the year was 7%.
Reliance completed its 6,00,000 tonnes per annum PP plant
during the year, at its new, integrated petrochemicals complex at
Jamnagar. This has taken Reliance's total PP capacity to a million
tonnes per annum.
A new producer has entered the industry, after the close of the
financial year, with PP capacity of 2,10,000 tonnes per annum,
and PE capacity of 4,20,000 tonnes per annum. It is expected that
a significant portion of the new capacity will be directed towards
export markets.
Reliance has announced plans to debottleneck its PE capacities,
as the same can be accomplished at marginal costs, significantly
lower than replacement cost of new capacity. No other new
capacities have been announced in PP, PE and PVC by any of the
other players.
During 1999-2000, the Government of India (GOI), initiated the
process for disinvesting part of its stake, and handing over
management control, in Indian Petrochemicals Corporation Ltd.
(IPCL) to a private sector company. IPCL is the second largest
petrochemicals producer in the country. The process is currently
underway.
Product-wise Performance - Polyester and Polymers
During the year, Reliance produced 6,58,000 tonnes of polyester
products - PFY, PSF and PET. This represented an increase of
11% over the previous year, and surpassed the industry growth
rate of 5%.
PFY production was up 14% at 2,67,000 tonnes, PSF up 19% at
3,17,000 tonnes, and PET up 10% at 74,000 tonnes.
Reliance's production of polyester intermediates (PX, PTA and
MEG) during the year, was up 45% at 2.18 million tonnes,
surpassing the industry's growth rate of 40%.
Reliance's PX production was up 300% at 6,63,000 tonnes, PTA
production crossed the million tonne mark for the first time,
increasing 17% to 1,150,000 tonnes, and MEG production rose
4% to 3,70,000 tonnes.
Reliance's production of polymers (PP, PE and PVC) during the
year stood at 1.3 million tonnes, reflecting an increase of 27%.
Reliance produced 6,33,000 tonnes of PP, 3,84,000 tonnes of PE,
and 2,87,000 tons of PVC.
Cracker Products - Ethylene and Propylene
Reliance's cracker is the world's largest grassroots multi-feed
cracker, and the largest operating naphtha cracker in Asia, with
capacity of 7,50,000 tonnes per annum of ethylene.
Apart
there are 4 other petrochemicals
manufacturers in India, operating crackers for the production of
ethylene, propylene and other co-products.
During the year, Reliance's cracker at the integrated Hazira
petrochemicals complex produced 7,76,000 tonnes of ethylene,
representing growth of 6% over 7,33,000 tonnes produced in the
previous year. Propylene production touched 3,82,000 tonnes
during 1999-2000, representing 2% growth over the previous year.
More than 90% of ethylene produced by the cracker is consumed
by Reliance's own PE, PVC, and MEG plants, situated within the
Hazira petrochemicals complex. The entire propylene produced
from the cracker is consumed by the PP plant within the Hazira
complex.
The switchover from imported naphtha feedstock for the cracker,
to naphtha from Reliance Petroleum's refinery, was achieved this
year in a smooth and well coordinated manner.
Cracker - Other Products
Reliance increased benzene production by 37% during the year,
to 212,000 tonnes. This contributed to an increase in Reliance's
market share to 47%. Part of the benzene is consumed captively
for the production of LAB at Reliance's Patalganga complex.

from Reliance,

Reliance Industries Limited

GROWTH IS L IFE

The increase in production was partly owing to the completion of
the aromatics complex at Jamnagar, with capacity to produce 1.4
million tonnes per annum of PX, leading to production of benzene
as a co-product.
Benzene, like ethylene and propylene, is a basic building block in
the petrochemicals industry, and is used in manufacturing major
industrial chemicals like styrene, phenol, caprolactum (key raw
material for nylon), LAB, and aniline.
Production of toluene declined marginally during the year to
58,000 tonnes from 61,000 tonnes last year, owing to differences
in the composition of naphtha feed for the cracker. Domestic
demand increased 14% during the year. Reliance's market share
is 40%.
Reliance produces ultra pure toluene suitable for the manufacture
of toluene di-isocynate, benzoic acid, and chloro toluene.
Reliance markets commercial butane as Liquefied Petroleum Gas
(LPG) under the parallel marketing scheme of the Government of
India. Reliance is the only private sector producer in India offering
this product. Bulk LPG movement from the Hazira cracker was
over 1,50,000 tonnes during the year.
In just two years of operation, 11% of the bulk LPG demand of the
industrial customers and 70% of the bulk LPG demand of the
private bottlers, is being met by Reliance.
Glass ceramics, automotive and textile processing industries are
the major bulk industrial users of this product.
Private bottlers have benefited greatly from Reliance's entry in the
market, as they are now able to reduce their dependence on much
costlier imports.
Packaged LPG - Reliance Gas
Based on the availability of Commercial Butane from the Hazira
cracker, Reliance Petroleum has entered the market for Packed
LPG for the domestic sector, under the Parallel Marketing
Scheme of the Government of India.
Reliance has already developed a customer base of over 400,000
retail customers for its packaged gas in the states of Maharashtra,
Gujarat, Madhya Pradesh, and Rajasthan.
Over 2 million tonnes of LPG will become available for direct
marketing from Reliance Petroleum's Jamnagar refinery, upon
decontrol of the marketing of controlled refined products in the
year 2002.
The marketing experience gained from the present marketing
efforts in LPG is expected to help Reliance, as a group, expand its
leadership in this sector.
Chemicals
Reliance produced 1,12,000 tonnes of LAB during the year. This
represents a 12% growth over the previous year. Reliance leads
the domestic market with a 34% market share. The current
domestic market of LAB is around 2,70,000 tonnes.
LAB is used as an intermediate in the production of detergents.
Reliance continues to be the most competitive producer, and a
preferred supplier in the domestic market, owing to its large
economies of scale, backward integration, locational advantage,
superior product quality, and strong customer focus.
Reliance produced 1,16,000 tonnes of normal paraffin during the
year, representing 10% growth over last year's production of
105,000 tonnes. Most of the production was consumed captively
for the production of LAB.
Oil and Gas
Reliance's oil and gas interests form an operating division of
Reliance Industries.
Reliance holds a 30% interest in an unincorporated Joint Venture
with Enron and ONGC, to develop proven oil and gas fields at
Panna, Mukta and Tapti. Enron has a 30% share, and ONGC the
balance 40% share. The oil and gas production from the Panna-
Mukta and Tapti fields is presently being sold to Indian Oil
Corporation (IOC) and Gas Authority of India Ltd. (GAIL), as
nominees of the Government.

Reliance has been awarded 12 new, offshore oil and gas
exploration blocks during this year, in a consortium with Niko

Resources, Canada. The new blocks cover a wide range of
geological settings, spanning shallow and deep waters. Reliance
has a 90% stake in the consortium, and Niko has 10%.

Together with the 2 blocks awarded from the earlier rounds,
Reliance now has 14 blocks, with a total oil and gas exploration
acreage exceeding 1,00,000 sq. kms., off the West and East coast
of India.

These blocks have been awarded through a process of open,
competitive, international bidding, under the Government's New
Exploration Licensing Policy (NELP). The NELP provides for
several attractive fiscal, tax and other benefits.

Reliance will deploy state-of-the-art technology for the project,
covering all activities, such as seismic studies, processing and
interpretation of data, and drilling.

The Panna and Mukta fields are currently producing over 25,000
barrels of crude oil, and 2.5 million cubic meters of gas per day.
Total oil production has increased by 10% to 8.71 million barrels in
1999-00, from 7.93 million barrels in the previous year, while gas
production has registered 34% volume growth at 854 million cubic
meters.

An expanded plan for development is under consideration by the
JV. This envisages crude oil production of 30,000 barrels per day,
and gas production of 3 million cubic meters per day.

Estimates of recoverable reserves from the Panna - Mukta fields
have increased by 28% from 210 million barrels of oil and oil
equivalent gas (MMBOE) to 269 MMBOE for the expanded
development plan. The bulk of the increase has come from
estimated gas reserves, which have gone up by 84%. The Joint
Venture has plans to drill an additional three exploration wells, to
probe the leads and establish the upside reserves.

The Tapti field has maintained production at 5.7 million cubic
meters of gas per day. Estimates for inplace reserves from Tapti
field have been revised upwards, by about 200% from 1.7 Trillion
Cubic Feet of Gas Equivalent (TCFE) to 3.7 TCFE, based upon
the results of drilling and 3D seismic interpretation. The new
revised plan of development is at an advanced stage of
discussions amongst the JV partners.
Textiles

The Indian textiles industry is highly fragmented. Reliance is
India's largest synthetic textiles manufacturer. Reliance's textiles
complex at Naroda, Ahmedabad, is one of Asia's largest and most
modern textile mills. The complex also houses one of the largest
and most modern design studios in Asia.

Reliance's textile products are sold under the brand names of
Vimal, Harmony, Reance, Ruerel, Micro, and Slumberel. Vimal,
Reliance's flagship brand, is India's largest selling brand of
premium textiles.

Reliance's premium product quality ensures a ready export
market for its textile products. Reliance's premium textile products
have found acceptance even in the most demanding markets in
the developed economies of the West.

The exports thrust was intensified during the previous year. A
considerable breakthrough was made in markets like Europe, the
US, Far East and West Asia. During the past 4 years, textiles
exports have more than doubled to Rs. 76 crores ($ 17 million).

Many manufacturers in developed countries are exiting the textile
business or relocating their textile manufacturing facilities owing
to regulatory issues and expensive labour. This presents an
excellent opportunity for manufacturers from countries like India,
with a well developed industry and rich tradition.

During the year, a fillip was given to increase the reach of
Reliance's products by augmenting the existing retail network,
through owned as well as franchisee show rooms. The textile
division's retail marketing services cell is actively involved in
setting high performance standards for services in retail outlets.

Several new flagship stores and boutiques have been opened or
identified for opening this year, in order to extend the reach of the
company's nationwide marketing and distribution network.

Reliance Industries Limited

GROWTH IS L IFE

This included 49 prestige shops and 22 prestige boutiques for the
HARMONY range, India's largest selling brand for premium
furnishing fabrics.
The annual HARMONY art show, hosted in April 2000 in Mumbai,

has met with its usual enthusiastic response.
Among other significant developments, Reliance obtained ISO
9001 and 14001 certification during the year for all its textile
operations.

Reliance Petroleum

Reliance Industries, together with its wholly owned subsidiary,
Reliance Industrial Investments and Holdings Ltd. (RIIHL), holds
nearly 50% of the equity share capital of Reliance Petroleum Ltd.
(RPL), which is itself a separately listed and publicly traded
company.

RPL's market capitalisation as on March 31, 2000 was nearly Rs.
26,000 crores ($ 6 billion).

RPL has completed its 27 million tonnes per annum (540,000
barrels per day) refinery - the world's largest grassroots refinery -
at Jamnagar in Gujarat, ahead of schedule, and within the
budgeted costs.

RPL's refinery has been set up at a globally competitive project
cost of approx. Rs. 14,250 crores ($ 3.4 billion). The refinery's
capital cost per tonne is around 30% to 50% lower than the per
tonne capital cost of other refineries recently set up in the Asian
region, by leading international oil companies.

RPL's refinery is among the most technically complex refineries in
the world. This enables RPL to produce a higher value-added
product mix, and enhances its overall competitiveness and
profitability.

The refinery has been built adhering to the highest international
standards of safety and environment protection, and has the
technical capability
international
specifications, even beyond the Euro II norms.

to deliver products of

This is among the few refineries in India which are capable of
producing gasoline with less than 1% benzene content, and diesel
with less than 0.05% sulphur content.

Based on full operating rates and commercial production, RPL is
likely to achieve a turnover of over Rs. 25,000 crores (nearly
$ 5.7 billion) per annum, placing it among the top five companies
in India on all major financial parameters.

RPL's refinery accounts for over 25% of the country's refining
capacity, and fulfills a major national priority, by substantially
reducing the country's dependence on petroleum product imports,
thereby providing a higher level of energy security and conserving
valuable foreign exchange.

The domestic consumption of all petroleum products for the year
1999-2000 is expected to be 95.22 million tonnes, indicating
growth of 5.1% over the previous year. The demand for diesel,
which accounts for 41% of the total consumption, is estimated to
have increased by 5% over the previous year. The demand for
LPG and Naphtha has also grown at a brisk pace.

The total crude oil processed in all Indian refineries in 1999-2000
is estimated to be 86 million tonnes. This is 25.5% higher than
68.54 million tons processed during 1998-99. The completion of
RPL's refinery has significantly altered the petroleum products
demand supply situation in India. The net product import
requirement, which was as high as 17.4 million tonnes in 1998-99,
has come down to an estimated 8.6 million tonnes of net imports
for the year 1999-2000.

RPL has an agreement with the major public sector oil companies,
IOC, HPCL and BPCL, for off-take of its controlled products,
namely, LPG, gasoline, aviation fuel, kerosene and diesel.
Marketing of the controlled products is with these oil companies,
during the transition period up to the year 2002. The Oil
Co-ordination Committee determines the price realisation for
RPL's production of controlled products, based on the principle of
import parity pricing.

Reliance group companies consume approximately 25% - 30% of
the total production of decontrolled products from RPL's refinery.
These include, mainly, naphtha, reformate, propylene, kerosene
and coke. Some of the decontrolled products like sulphur and a
part of naphtha and coke are sold directly in the market.

Reliance Telecom

Reliance Telecom Ltd. (RTL), is a separate, unlisted company,
from the Reliance group.

Reliance Telecom has two operating divisions, Reliance Mobile
and Reliance Basic. Reliance Mobile provides cellular telephony
services in thirteen states, namely, Madhya Pradesh, Bihar,
Orissa, West Bengal, Sikkim, Assam, Meghalaya, Nagaland,
Arunachal Pradesh, Manipur, Mizoram, Tripura and Himachal
Pradesh.

Reliance Basic holds the license to provide fixed line telecom
services in the state of Gujarat.

The territories under Reliance Telecom cover over 350 million
people, nearly a third of India's population, and approximately 36
per cent of India's geographical area. The tele-density in these
territories is amongst the lowest in India.

The license fees committed by Reliance Telecom, under the
original bidding process, were the lowest on a relative basis,
among comparable circles. Under the New Telecom Policy
announced by the Government this year, Reliance Telecom has
now opted to move from the fixed licence fees regime, to the
revenue sharing model.

Reliance Telecom's licences will thereby be extended, from 10
years to 20 years for the cellular services, and from 15 years to
20 years for the basic services.

12 of the 13 states (except HP) under Reliance Telecom are
contiguous to each other, leading to lower capital costs for the
project. The project has been set up at the lowest capital cost for
any cellular investment in India, and is also cost competitive in a
global context.

The state of Gujarat, where Reliance Telecom hold the basic
services license, is considered to be one of the most attractive
markets in India, with a high rate of industrial growth, high per
capita income and low existing telephone penetration.

Reliance Mobile has covered 36 locations in the first phase of its
cellular roll-out implementation programme. The subscriber base
has increased by 135% to reach 70,000. The average revenues
per customer are comparable with numbers for the metro areas in
India.

Reliance Mobile is maintaining its focus on delivering the highest
levels of customer satisfaction, and has established an extensive
network of customer care centres in all its cities, with ready
access to a centralised database.

Reliance Basic has commenced fixed line telecom services in the
state of Gujarat in March 2000.

Reliance Industries Limited

GROWTH IS L IFE

Reliance Power

Reliance Power intends pursuing attractive opportunities in the
power sector, with the objective of achieving aggregate capacity
of over 10,000 MW in the next 10 years.
Reliance is pursuing power projects holding significant potential
for feedstock linkages, thereby enhancing the value addition
across a broader spectrum of the energy chain.
Reliance already has substantial experience in power generation,
having implemented power plants at all its manufacturing sites.
The aggregate power generation capacity,
for captive
consumption, at the various manufacturing locations at Naroda,
Patalganga, Hazira, and Jamnagar, is over 800 MW.
Reliance Power has recently agreed with Southern Energy Asia-
Pacific Limited, formerly Consolidated Electric Power Asia Limited
(CEPA), to jointly develop the 3,960 MW coal based thermal
power project at Hirma, in the state of Orissa, India. Reliance and
CEPA have signed a Joint Development Agreement to develop the
project with equal interest.
This will be one of the largest independent power projects ever
undertaken in the country. Coal mines in the Ib Valley will be
tapped to provide more than 19 million tonnes per annum of fuel.
State of the art power generators will deliver electricity to the east,
north and west of the country, along a power grid involving 3,300
km of transmission lines.
Electricity will be sold to the Power Trading Corporation, which in
turn will sell it to power deficit areas, such as Madhya Pradesh
and Gujarat in the west, and Rajasthan, Punjab and Haryana in
the north.

The Ministry of Power and Power Trading Corporation are
reviewing the Power Purchase Agreement and payment security
structure. Tariff approval from the Central Electricity Regulatory
Commission is awaited.
Reliance Power
independently actively pursuing several
Independent Power projects (IPP) projects, and is currently
developing several projects with an aggregate capacity of around
1,900 MW.
An amended Power Purchase Agreement (PPA) has been signed
for the 447 MW Patalganga, Maharashtra project. Financial
closure is likely to be achieved during this year.
The Techno-Economic clearance for the 500 MW Jamnagar,
Gujarat project has been received from the Central Electricity
Authority (CEA) during the year. This project, too, is expected to
achieve financial closure during this year.
The PPA for the 500 MW Jayamkondam, Tamilnadu project was
concluded last year, and activities to obtain various clearances
have been initiated. The project is expected to move towards
financial closure next year.
During the year, Reliance has been awarded a 375 MW lignite
based project at Ghogha, Gujarat. Developmental activities have
been commenced.
Reliance Power will also explore opportunities in the power
transmission and distribution business, as and when the trend
towards deregulation and privatisation of this sector gathers
momentum.

Human Resources Development (HRD)

Reliance has always recognised its people as its key resource.
The people of Reliance have been the driving force behind its
success, its all-round performance, and its exponential growth. A
few of the important accomplishments of the HRD function this
year are described below.

Reliance as a Learning Organisation

individuals,

learning by

is a necessity

Today in Reliance, learning is a continuous process. There is a
recognition that individual, divisional and organisational growth is
achieved through continuous learning, mastering change, and
maintaining the competitive edge.
Reliance recognises that training and development, as well as
for
continuous
organisational survival, growth and renewal, in the rapidly
changing business environment.
Reliance believes that training can be a competitive differentiator.
Learning at Reliance is linked to organisation strategy and
individual goals.
At Reliance, specialist training courses are available across the
entire knowledge-skill-value spectrum. Some of the highlights of
our learning initiatives are captured below.
Management Programme for Reliance Engineers
(MPRE)
Reliance, in association with the Indian Institute of Management,
Bangalore, has created a customised 18-week management
course for engineers working in the company. This year, the fifth
such batch successfully completed the course.
The MPRE course provides knowledge, skills, techniques, and
managerial insights to engineers, based on the content and
business framework relevant and specific to the needs of
Reliance. So far, the course was focussed on Operations
Management. Last year, participants were trained to excel in
techno-commercial skills, oriented towards different facets of
commercial management. On completion of the programme,
participants were placed on a new career path in the commercial/
business function.

Training Matrices
The key to creating a cutting-edge organisation depends upon its
ability to transform itself into a learning organisation. Reliance
started from the fundamentals, determining what to learn and how
to learn, at all levels of management. Consequently, the concept
of knowledge, skill, and ability (KSA) matrices was born, which
helped to evolve the following :
· KSA required to do the present job
· KSA required to do the present job better
· KSA required to prepare for the next job
As a starting point, KSA matrices were prepared for all managerial
positions. These helped individuals to determine the gaps in terms
of "current" and "required" KSAs. These, in turn, led to the
concept of Individual Needs Assessment (INAs). INAs are
uncovered, based on the gaps between current and required
KSAs for every manager. INAs are classified as -
· functional
· cross-functional
· soft skill based
· conceptual
These also form the basis for career progression. While functional
skills are a must for growth at lower levels, it is the existence of the
other three skills that ensure advancement at higher levels.
Working out INAs is a continuous process at Reliance. There are a
large number of training modules that are being used to augment
the KSA gaps that have been identified. Most of the training is
conducted at our state-of-the-art learning centres at the sites.
Site Learning Centres
Our Learning Centres at Patalganga, Hazira, Jamnagar, and
Thane coordinate and implement the plant-wise training efforts.
They act as the fountainhead of all training activities at the
location, including coordination of the annual INA exercise,
development of training programmes in consultation with line/
staff management, publishing of training calendars, developing
the content,
faculty, organising and conducting
the programmes, feedback and evaluation, etc.

identifying

Reliance Industries Limited

GROWTH IS L IFE

Reliance believes in self selection for the training process. Much
of the self-study material is available through the intranet.
Trainees are able to register online, and credit is accorded to
trainees for spending time online. Reliance Gyan Mandir is a
learning portal that provides industry specific data, public
documents provided by process
to
Reliance libraries at sites.
Plant Training Teams
Plants and departments have constituted training teams headed
by plant/department heads, plant training coordinators (PTCs)
and section training coordinators. The role of the PTC is as
follows :
·

training & development of

licensors, and access

for

additional responsibility
everyone in the plant
updating current KSA matrices
updating training manuals and modules
coordinating annual INA process
publishing Plant Training Calendars
updating individual training records & feedback

·
·
·
·
·

Human Resource Support Systems (HRSS)
"Information is Power"
In order to provide an online HR information system, a virtual
Human Resource ERP model was evolved and developed in-
house, and is being implemented. This is a dynamic, interactive
and online HR Support & Information System, which operates in
real-time. It will be a treasure trove of information when fully
operational.
Phase I consists of modules on recruitment, joining, confirmation,
deputation, transfer, separation, etc. This has eliminated the
traditional Personal Administration systems such as timekeeping,
leave administration, etc. Phase II consists of Performance
Appraisal, Potential Appraisal, Training, etc.

Performance Management Systems
New Performance Appraisal System
A new appraisal system has been implemented for the year 1999-
2000. The classic objectives of performance appraisal systems
are twofold -
·

rewarding employee merit and contribution

development through identification of training needs and
implementation

In order to do away with the subjectivity in performance appraisal,
Reliance, in a unique endeavour, has evolved a two-tiered
integrated performance management system. The first tier of this
system
is based on Key Result Areas (KRAs) linked by
measurable parameters to Plant, Departmental and Functional
objectives. For each employee, an individual performance matrix
has been evolved with credit and debit points linked to pre-set,
quantified
through a
computerised Individual Performance Diary. This tier focuses on
rewards.

targets. Progress

tracked online

The second tier consists of assessment of a set of carefully
evolved and defined, cadre-based key managerial dimensions.
The focus of this tier is on development, through assessment of
gaps in behaviour.

This Appraisal system reflects synergies
in organisational
performance, that are created largely due to joint efforts and
teamwork across departments, function and levels. At the same
time, the system also encourages individual excellence and value
addition through projects, assignments, and tasks aimed at
tapping every individual's full potential.

Mapping of Individual Career Paths

A systemic exercise of developing individual career paths, in sync
with KSA matrices and key managerial dimensions, has been
undertaken for middle and senior level managers.

The process involves mapping of career paths with actual
jobs and roles defined with time frames for realising the
potential, at different career points. Interventions include job
rotation,
for augmenting
identified gaps vis-a-vis what is required for progressing to the
higher job.

training, and special assignments

Cross-functional exposure is a prerequisite for progression
beyond certain levels, particularly for occupying senior level jobs
in General/ Operations management. Career progression by way
of promotion / upgradation is a systemic process, undertaken
centrally to ensure consistency and uniformity across the entire
organisation.

Quality

The Quality Policy of Reliance speaks unequivocally of "Total
Customer satisfaction in terms of Quality and Services for the
entire range of our Products".
Reliance's increasing exports, and consistent success in selling
more than 90% of its products in the domestic markets, despite
the opening up of Indian markets to imports, and steep lowering of
import tariffs, demonstrate the international quality of Reliance's
products.
There is a constant reference to customers' satisfaction in all
activities undertaken by all Reliance employees. Proactive efforts
are carried out
requirements.
Subsequent efforts are directed not only towards satisfying the
customers, but delighting them.
Customers' complaints, however small, are resolved at the
earliest by a uniquely designed quality assurance procedure
under ISO 9000. To ensure promptness in carrying out remedial
actions, the communications are built in on-line systems. The field
staff under Technical Services is the first point of contact with
customers, however big or small.
Reliance has commissioned automated product handling systems
at its manufacturing complexes to ensure that manual handling of
products is avoided and mix-ups/handling damage to products are
prevented. All relevant information, including process data, is

to determine customers'

to Reliance

made available on the Intranet leading to faster decision making
and improved quality of products.
Advanced Process Control systems at all plants, and the use of
instruments at sophisticated Quality
advanced analytical
Assurance laboratories, form the key elements of the Quality
drive.
Reliance's Hazira manufacturing complex bagged the prestigious
Golden Peacock National Quality Award instituted by the "Institute
of Directors". The award was received at the 10th World Congress
on Total Quality held at Mumbai during January 2000. The award
was given
its outstanding
performance in the field of Total Quality Improvements.
In the quest towards Total Quality, Reliance reached a landmark
when all its plants and four service departments were awarded the
ISO-9002 certificates. Realising that excellence is a moving
target, Reliance has decided to initiate Total Quality Management
movement at Hazira, and take planned action for its successful
implementation at all levels. The basic objective is to involve
people at various levels for continuous improvement to attain
excellence in everything that is done in the complex.
Nine business areas at the Hazira Manufacturing Complex have
received ISO-9002 certification this year making a total of 16 such
Certified areas in Hazira. The areas which received their

recognition of

Reliance Industries Limited

GROWTH IS L IFE

certificates this year are PET, PSF, Cracker, Aromatics, PTA, PP,
CES, QA/QC and Personnel, Administration and Human
Resource Development.
At the Jamnagar Manufacturing Complex, a state of the art central
laboratory with satellite labs at PP, Aromatics and MTF has been
set-up to provide valuable support for monitoring the quality of
products. The state of the art equipment in these laboratories
include gas chromotographs, spectro photo meter, IC Engines

index/ RON/ MON, and on-line analyzers

for Cetane
sulfur, moisture, H2S.
The Jamnagar Complex also has state of the art computer
programmes like Laboratory Information Management System
that has an interface with DCS. These advanced systems provide
all laboratory results and analysis reports to ensure that the
overall quality standards are maintained.

for

Research and Development (R&D)

Reliance's ability to deliver value to its customers through its
products and processes is a key competitive strength that
differentiates it from other domestic and international producers
competing in the Indian market.
Value is delivered by making available the largest range of product
grades, providing world class quality products at extremely
competitive rates, customising products and processes to satisfy
the specific needs of the local markets and customers, and
assisting the customers in serving their target markets in an
effective manner.
Research and Development (R&D) efforts at Reliance revolve
around new product development, quality improvements, and
introduction of new applications.
The R&D activities at Reliance take place at different levels in the
R&D departments of the respective plants, the Product Research
the Reliance
and Application Centre (PARC) at Mumbai,
Technology Centre at Mumbai, and
technical
the
through
collaborations with several leading research institutes in India.
At present Reliance Technology Centre at Mumbai is focussed on
product and process innovations with polymeric materials and
fibres. Separate R&D groups, in the form of modules are being
established for focussing R&D in different areas.
Reliance has recently entered into a long term Research Alliance
Agreement with National Chemical Laboratories (NCL), Pune
effective from August 1, 1999 to July, 2004. The agreement
covers all petrochemicals/ chemicals related research and
analytical initiatives.
As part of strategic planning, a full scale R&D centre set up at
Hazira, has launched an extensive R&D program towards
development of polyolefin catalysts. The approval of the Centre
by the Department of Science and Technology is under progress.
Some of the important projects on hand at the Reliance
Technology Centre are:
1.

-
-

Speciality Fibres/Filaments based on polyesters (PET, PBT,
PTT, blends & alloys, etc.) and Polyolefins (PP, HDPE, etc.):
-
-
-

Easy/ "Ecofriendly" Dyeable Polyester
"Spiral Crimp Hollow" for high filling power/resilience
PET/PP bicomponent S/P fibres and filaments for
thermal insulation fabrics (replacing wool and acrylic)
COPET/PET or HDPE/PET bicomponent S/C fibres for
thermally bonded non-fabrics
Flame retardant polyester
"High Bulk" POY
technology
"Self-texturizing" POY
Low pill polyester

-
-
Speciality Polymer Resins & Compounds based on
polyesters and polyolefins:
-

Slow crystallizing PET for extruded sheet applications
(replacing glass)
"Dyeable PP"
Blends & alloys

"asymmetric quench"

through

-
-

3. Novel process

technology, based on "oligomer" melt
compounding, for dope dyed (black) polyester staple fibres.
initiatives, several developmental
Besides

the above

activities have been undertaken by the sites, by sponsoring
research oriented projects, which are detailed below:
1.

PTA waste water quality improvement: RIL has entered
into an agreement with the M. S. University, Baroda to
carry out research on biodegradability of PTA and
paratoulic acid present
in PTA plant effluent by
anaerobic route.

2. Recovery of metals and chemicals from PTA plant
effluent: RIL has entered into an agreement with UDCT,
Mumbai, to carry out research on recovery of metals,
mainly cobalt and other organic acids, in their usable
form from PTA plant effluent. This will be a path-breaking
step, as RIL will achieve "zero discharge" status on
liquid effluent front. The products recovered represent
cost saving potential of Rs. 3 crores per annum.
Kinetic reaction model of oxidation reactor: RIL and
UDCT, Mumbai, are jointly developing real time kinetic
model for the PTA oxidation reactor. It will predict the
performance of reaction and hence the quality of product
on line. This will result in high degree of product quality
and consistency, in addition to an improvement in the
reactor yields.
Value addition to the dry by-product: Efforts to minimize
the iron pickup in the dry by-product generated in the
VCM plant and removal of iron from the dry by-product
are underway on a semi-commercial scale. If this project
is successful, there will be potential to utilise this dry by-
product as a
technological
breakthrough for disposal of this byproduct.

fuel. This will be a

5. High Performance Coating Chemicals: In the PVC plant
new alternative polymeriser coating has been
commercially implemented in low K-value grades to
improve the product quality specially with respect to film
defects.

6. New Catalyst Recipe: Triple catalyst system has been
successfully tried in pipe grade of PVC to improve the
polymeriser productivity by reducing the reaction time.

7. New Generation Alternative Emulsifier: A new
generation alternative emulsifier was
tried and
implemented in all the grades of PVC, in place of
conventional primary emulsifier,
reduce PVC
to
operating cost and COD of the effluent.

include grades

8. New grades in PP: 8 new polypropylene grades have
been successfully launched and accepted well in the
Indian market. These
for battery
fibres, rigid packing,
containers, automotive parts,
extrusion coating raffia fabrics and furniture mouldings.
9. Development of high flow LLD grades: Reliance has
developed the toughest high flow LLD grades in PE for
master batch application for the first time in India. These
grades have found high degree of acceptability in the
Indian market in a short time.
Besides this, the Product Application and Research
Centre (PARC) at Mumbai has
taken up several
developmental tasks on its hands. These include:
1. Sacks made out of PP for food grain and sugar

packaging

2. Material and technology development programs on
customer driven projects: bumper/ dashboard

Reliance Industries Limited

GROWTH IS L IFE

compounds/glass fibre reinforced PP/wood flour
and
filled
PP/
valcanisates/
flushed
pouches/ refrigerator liners

thermoplastic
laminates

for nitrogen

elastomers

fibres and

filaments: PP

PP
colouration of PP fibres/ low shrink PP fibres
Agri-films: Green house films/ mulch films from
polyethylene

for geotextiles/

3. Retrotable pouches from PP/ preservation films for

fruits and vegetables

6. Development of cling, twist wrap, films from Repol

and Relene on cast lines

Health, Safety and Environment

(HSE) policy

Reliance is committed to ensuring the health and safety of every
person at its various locations, and protecting and nurturing the
environment.
Reliance's Health, Safety and Environment
prescribes the following :
·
·
·

Protection of the Health and Safety of people
Protection of the environment.
Use of materials and energy efficiently, to achieve maximum
productivity
Adoption of the best HSE practices of global industry
Managing HSE aspects as a critical business activity
Promoting safety culture among all the employees
Ensuring commitment from contractors to manage HSE in
line with the company's policy

·
·
·
·

Health

related activities at

Reliance accords a very high priority to the provision of adequate
medical services at all its locations, and places emphasis on the
prevention of work related health hazards.
Senior health specialists, fully supported by qualified doctors and
trained paramedical staff are available at all plant locations.
There is a continuing emphasis on upgradation of health
standards, through improvement in production processes.
Health
the Patalganga Manufacturing
Complex this year, included Health Awareness Campaigns
conducted to address common health concerns like heart
diseases and back ache prevention. A unique hospitalization
scheme was also launched. This scheme allows employees and
their dependents to get treated in any of the 33 hospitals around
Mumbai without any immediate cash outflow. This has provided
emotional and financial security to the employees.
Activities at the Hazira Manufacturing Complex, in the area of
Health included a 100% compliance of medical check-ups. Health
audit, and a comparative study of interdepartmental health status,
were also conducted, and based on the same, health ranking of
the various departments was completed.
Handy pocket size laminated health cards giving all the relevant
details of health check-up and investigation reports were issued to
all employees at
to ensure better Health
Management. A physiotherapy unit fully equipped with Short wave
Diathermy, Digital Ultra Sound, Electric Stimulator, Infra Red /
Ultra Violet Lamp, Computerised Interferential Therapy, and
various exercise equipment for treatment and early rehabilitation
of employees suffering from muscle skeletal disorders, was
established during the year.
At the new Jamnagar Manufacturing Complex, an active Health
department has been set up for the overall benefit of all
employees. A fully equipped Occupational Health & Family
Welfare Centre (OHC) has been established at Jamnagar. The
centre is equipped with state of the art equipment to provide the
highest standards of health care to all personnel at the complex.
Annual medical check-up for all employees, and pre-employment
examinations, are carried out in the centre, in addition to routine
and emergency medical care for all the residents of the township.
Medical services rendered by the OHC also include organisation
of regular programmes of polio vaccination, eye and ENT camps,
and malarial immunisation programs. All medical investigations at

the Complex

the centre are computerised to facilitate analysis of the history of
patients.
The Naroda complex, too, houses a full-fledged health centre,
with facilities for emergency and routine health care.

Safety

Reliance's Safety policy states - "the safety of persons overrides
all production targets."
All plants are designed with the safety element foremost in mind.
The following steps to promote safety have been initiated at all of
Reliance's manufacturing complexes:
-

for

A ready reckoner pertaining to all issues on health, safety
and environment issues has been drafted. This includes
details on safe working practices, and clearly defined
procedures
inspection, operation and emergency
shutdown of plants.
A Central Safety Committee represented by management
and union members has been constituted.
A crisis and emergency management procedure document
has been drafted, preparing the plants for all kinds of
disasters.
Accidents, and near-misses, within the industry have been
documented, and preventive measures spelt out.
Special training for security personnel has been imparted to
enable them to handle emergency situations.
Incentives have been provided, for improving the safety and
productivity.

the villages surrounding

Under the Responsible Care Initiative, the Hazira Manufacturing
regularly organises community safety awareness
Complex
programs
the complex. This
in
comprehensive community awareness program is developed for
explaining to the citizens, about in-built safety measures taken to
avoid any contingency, and how the technical staff is always
geared up to combat any emergency that may arise. Trained HSE
staff also visit villages, even during the evening hours, to educate
the people, and to increase awareness on Home Safety, Traffic
Safety, First Aid Training, Environment Awareness, etc. Video
films and leaflets on the subject are also distributed.
An offsite emergency plan rehearsal was conducted this year at
the Hazira Manufacturing Complex under the guidance of the local
administration. This rehearsal was organised as per the Off Site
Emergency Plan of the Surat District. All Government agencies
such as the Police Department, RTO, GPCB, Subdivisional
District Magistrate, Factories Inspectorate, etc. participated in the
rehearsal. Medical services and fire fighting Services of the
neighbouring
the Surat Municipal
Corporation, participated in the rehearsal. The Sarpanches (local
leaders) of nearby village Gram Panchayats of Bhatlai, Vansva,
Junagam and Suvali, and senior officials of neighbouring
industries, witnessed the rehearsal and expressed their deep
sense of satisfaction at the high level of preparedness.
The National Safety Council of India, a nationally reputed
institution, conducted a Safety Audit of the Hazira manufacturing
complex during October 1999. The safety audit was carried out to
verify the status of Occupational Health and Safety in the
operating plants, and to ensure the efficacy of all systems and
procedures, work standards, safety practices, maintenance
practices, statutory compliance, emergency preparedness, and
employee safety awareness.

industries, and also

Reliance Industries Limited

GROWTH IS L IFE

The Jamnagar manufacturing complex also remained committed
to maintaining the highest standards of operational safety. An
extensive safety audit was carried out by SIOP
(Shell
International Oil Products-Netherlands) for the entire plant, and
results were found to be satisfactory. All personnel at the
Jamnagar Complex are provided with protective equipment, and
use of the same is constantly monitored to inculcate a safety
culture.
The Jamnagar Complex has prepared an onsite emergency plan
for efficient management of any possible situation. Mock drills are
organised to familiarise the plant personnel regarding the steps to
be taken during such emergencies.
The Jamnagar complex houses three fire stations that are
manned round the clock. A fire training ground has been designed
in house, with various modules, to impart hands on training in fire
fighting. All operating personnel and the auxiliary fire squad have
been trained.
The Jamnagar complex has been provided with mobile and fixed
fire protection systems/facilities. A mobile van has been designed,
constructed and commissioned with all necessary communication
and rescue equipment to work as a field emergency control centre
during major emergencies. A specialised Hydraulic Platform with
boom of 30 meters height has also been procured for specialised
emergencies
rescue operations and elevated height
emergencies.
Personnel at the Naroda manufacturing complex performed a
safety mime at the Gujarat State Safety Conference, organized by
the Gujarat Safety Council, Baroda. This effort was well received.
The Naroda Complex continued to excel in safety measures and
kept up its record of lowest number of injuries and accidents
amongst the textile mills operating at Ahmedabad.

Environment

As an integral part of its environment protection drive, Reliance
employs proven, world class technologies at all its plants, to
ensure the minimum quality/quantity of waste generation per unit
of output, low emission of pollutants, minimum solid waste
generation per unit of output, low noise pollution level during plant
operations, and in-built measures for waste reduction, waste
recycling and waste utilisation.
The Hazira manufacturing complex has received the ISO - 14001:
1996 certification from the international certification agency,
Lloyd's Register Quality Assurance (LRQA) for its Environmental
Management Systems. Hazira
integrated
petrochemicals complex in India to receive the ISO - 14001
certification for the entire complex.
The maximum water cess rebate was granted by Gujarat Pollution
Control Board for the year 1998-99 to the Hazira manufacturing
complex signifying their satisfaction with the measures taken by
Reliance for treatment of waste water generated from various
process plants.
The Hazira complex has also been honoured with the "Golden
Jubilee Memorial Trust Award instituted by the South Gujarat
Chamber of Commerce & Industry for an Outstanding Pollution
Control Programme for the year 1998-99.
The Hazira complex was audited three times during the year
1999-2000, by the Gujarat Pollution Control Board’s recognised
auditors. The Board expressed their fullest satisfaction with the

the only

Environmental Management System developed, and pollution
prevention and control measures taken by Reliance.
Other significant achievements of the Hazira Complex in the area
of environment management included:
An overall 10% reduction in liquid effluent generation in Cracker
plant;
Implementation of "Environmentally Conscious Plant" award
system (an in-house competition in the complex) to promote
environment awareness;
Usage of high efficiency emulsifier to reduce COD in effluent from
PVC Plant;
Effluent load in PE-I reduction by 300 cum/day by recycling pump
seal water;
Recovery of 3 TPH of steam condensate from reslurry heater in
PE-I plant;
Phasing out of CFC based silicon spray used in POY spinning
Reduction of water consumption in POY cooling towers by 23 %.
The Patalganga complex has continued to meet the highest
standards of environment protection, as in the past, and has
satisfactorily passed all regular tests and audits.
The continued improvement in overall environmental performance
achieved by the Naroda manufacturing complex is the key reason
behind the complex's ISO 14001 certification. Naroda today
houses the only composite mill in India with this prestigious
certification.
The Jamnagar Manufacturing Complex has set up a state of the
art effluent
the
environment. This sophisticated and modern effluent treatment
plant treats the effluents generated in the complex. Treated
sewage, industrial effluent and stack emissions are extensively
monitored regularly, to ensure that no harm is done to the
environment. The complex ensures that all effluents meet
specifications laid down in the statutory regulations. All emission/
effluent parameters are well within limits.
The complex's production processes have been designed to
ensure that the products meet not just present norms, but even
future environmental regulations without requiring any major
modifications.
Reliance is committed to transform the arid land in and around the
Jamnagar complex into a lush green environment with green belt
and agroforestry plantations. Tree plantation, green belt and
agroforestry plantations will cover about 2,200 acres of the total
area.
Over 2.3 million trees have already been planted in and around
the complex as a part of this initiative. The trees being grown in
the complex are mango, teak, neem, guava and custard apple,
among others. In all, over 200 species are being planted in the
green belt. This diversity of plants and fruits slated to be grown in
and around the complex will prove to be a source of pride for the
environment friendly complex.
The Jamnagar complex has been designed in a way to ensure that
groundwater is not depleted. Seawater is the source of water for
the refinery complex. Seawater desalination plants meet all
domestic and process water requirements. The Jamnagar
operations will not affect the quality of air, surface water, ground
water, seawater and soil. A well planned monitoring system has
been set in place to monitor the quality of the environment.

treatment plant

the safety of

to ensure

Energy Conservation

for

its overall strategy

Reliance has always focussed on energy conservation as a key
component of
remaining globally
competitive, by maintaining overall energy costs below
comparable costs for its global peer group.
Energy costs are typically a significant cost in petrochemicals
for being
operations. The company's
globally competitive in terms of energy costs revolves around
relying on captive power generation for all its complexes, and
continuously working towards conserving energy and optimising

fundamental strategy

its usage in all aspects of its operations.
Energy conservation measures are being taken up in the areas of
steam, power and fuel consumption at all sites. The manufacturing
sites depend on gas and steam turbines for power generation, and
heat recovery steam generators and boilers for steam generation.
Consumption of power and steam in the process plants has been
steadily brought down to below benchmark plant norms. Also,
cheaper fuels are being utilised in the gas turbines and waste heat
boilers, in order to improve fuel consumption.

Reliance Industries Limited

GROWTH IS L IFE

chilling of inlet air to the gas turbines,
operation at base load to realise minimum heat rates, and
export of power to the state grid

Some of the measures to improve fuel efficiency include:
-
-
-
During the year, 70 schemes relating to energy conversation were
implemented at the various manufacturing sites. Some of these
schemes include converting fixed speed motor drives to variable
speed drives, change of cooling water fans from metallic blades to
FRP blades, increase in process furnace efficiency by changing
the air/fuel ratio, optimisation of CW header pressure drop, heat
integration between waste heat streams and process streams
requiring heat, and installation of photocells for lighting.
In addition to the above, 28 other schemes are at various stages
of implementation relating to energy conservation in process
plants.
Some of the more significant energy conservation initiatives and
achievements at the Hazira and Patalganga complexes are
discussed here.
The Hazira complex bagged the first prize in the National Energy
conservation Award - 1999 contest instituted by the Ministry of
Power, Government of India.
The energy index of the Hazira complex has come down from 2.45
Gcal/MT in 1998-99 to 2.26 Gcal/MT in 1999-2000.
The total cost reduction potential for all the energy saving
schemes at their full potential, works out to Rs. 28 crores per
annum.
Some of the major energy conservation schemes implemented at
Hazira are listed below:
-

Optimisation of modified plant air compressor operation in
CPP, resulted into stopping of one compressor in POY.
Scheme for utilising aromatics plant condensate as boiler
feed water in cracker de-aerator to achieve savings in LP
steam, power and chemicals.
Implementation of quench water waste heat recovery and
steam drum blowdown recovery in the cracker plant.
Improvement in furnace efficiency to 85% by optimising air -
fuel ratio in the VCM plant.
Optimization of CP 1/2/3 and CP 4/5/6 HCT pump operation
resulted into stoppage of 2 numbers of pumps - leading to
savings of 324 MW of power per annum.

Optimization of chilled water circulation pump during winter
operation in POY plant resulted into power savings of 510
MW per annum.
In POY plant, Dowtherm fuel consumption reduced by
increasing the Dow condensate temperature from 280 deg. C
to 285 deg. C.
Additional schemes that are under progress/ implementation
include revamp of solvent stripper column in PTA plant,
replacement of conventional air washers with cell type air
recycle
washers
cyclohexane stream to heat the hot flush flow for reduction of
heat losses in PE plant, etc.

in POY plant, heat

recovery

from

The Patalganga complex received the second prize from the
Ministry of Power, Government of India in the National Energy
Conservation Award - 1999 contest. The unit has been getting first
prize for the last 3 years. This year, the first prize was awarded to
the Hazira site.
A cost saving of Rs. 5 crores per annum has been achieved from
energy conservation measures taken up at the cooling water,
boiler feed water and LP steam system.
Some of the schemes that have been implemented at Patalganga
are:
-

Changing of connections from delta to star of under-loaded
motors in PTA and LAB plants for maximum utilization of
available power.
Total recycling of process water in PTA plant for saving DM
water and also reducing effluent generation.
Saving in Boiler feed water in PTA plant by optimizing the
operating pressure of condensate collection drum.
Utilization of liquid byproducts from PX plants as fuel for gas
turbine as well as for supplementary firing in HRSG.
Power saving by virtue of replacement of conventional packs
cleaning system by hydrotherm process in the polyester yarn
plants.
Additional schemes that are under progress/ implementation
include installation of back pressure turbine to eliminate
letdown of steam, optimization of LAB (FE) feed kerosene
preheat train, GT inlet air cooling to lower the fuel specific
consumption, and implementation of changes arising out of
the pinch analysis study in the PX and PTA plants.

Community Development

Reliance's community development programmes are designed to
meet the obligations of a responsible corporate citizen, and to
support the development of the people in the neighbouring
communities.
During the year, Reliance has made a contribution of nearly Rs.
8.5 crores ($ 2 million) towards the Sir Hurkisondas Nurrotumdas
Hospital and Research Centre (HNH), located in the heart of
Mumbai.
HNH is among the oldest hospitals in the city, with a history of 75
years of service to the society. The hospital has 330 beds, and the
facilities are intended to be significantly upgraded to international
levels, by installation of state-of-the-art equipment.
Reliance has contributed an amount of approximately Rs. 2 crores
(approx. $ 0.5 million) this year towards support for the families of
the martyrs of the Kargil conflict, and other related army welfare
activities.
Other important initiatives by Reliance include the establishment
of a modern 82 bed Dhirubhai Ambani hospital, and the setting up
of
the Jamnaben Hirachand Ambani school, at Lodhivali
(Patalganga complex) to provide education to more than 2,000
students.
A fully equipped school is functioning at Hazira, with provision for
education of more than 2,000 students. The school at the
Jamnagar complex is located on an area of 6 acres, and has
facilities for education of over 1,200 students.

Responding to a severe water shortage, the Jamnagar complex
has recently arranged the supply of 16 lakh gallons of water per
day, for the people of Jamnagar city. This is equivalent to nearly
700 tankers of water per day, and represents almost 10% of the
water consumption of the city. Supply of water has also been
commenced to affected areas in Rajasthan.
The Patalganga manufacturing complex has arranged the supply
of potable water to nearby villages, provided financial support to
Balwadis, and facilitated implementation of government schemes
in nearby areas to promote education. The complex also
constructed a civic centre in the Township for promoting social,
cultural and educational interaction.
The community development initiatives undertaken by the Hazira
manufacturing complex included the following:
-

Extending financial support to Junagam for the construction
of the school building;
Organising sewing classes in villages, Damka and Suvali,
throughout the year to provide training to 75 women;
Extending financial support to Ichhapore Gram Panchayat for
the construction of a Gram Panchayat Bhavan.
Provision of mobile health services to the villages of Vansva,
Rajgari, Mora, Suvali, Junagam, Bhatlai and Damka on
regular basis. The health unit on wheels has rendered free
treatment to over 5,800 needy patients in 7 villages spread
over an area of 35 kms.

Reliance Industries Limited

GROWTH IS L IFE

The following medical camps were organized during the year:
diabetic/hypertension/ anemia detection camp, camp
for
orthopaedically handicapped persons, diagnostic and operative
eye camp; camp for skin diseases; children health check-up
camp; blood donation camp; and gynaecology/cancer detection
camp for women.
The community development
Jamanagar manufacturing complex included the following:
-

Provided water facilities through a 3 Km pipe line and
underground as well as overhead water tank to the village of
Motikhavdi.

initiatives undertaken by

the

financial support

Construction of Community Health Center, and providing
mobile dispensary services and free medical facilities round
the clock to all villagers at Motikhavdi.
Extending
for construction of school
buildings, community halls, medical camps, temples, roads,
water
the neighbouring villages of Padana,
Meghpar, Sikka, Mithapur, Nana Lakhiya, Nani Khavdi,
Jogvad and Navagam.
Provision of cattle fodder to the surrounding 8 villages for the
year 1999-2000.

tanks,

Foreign exchange savings, taxes paid, and exports

Foreign Exchange Savings

Reliance primarily manufactures products
import
substitutes, thereby contributing to savings of precious foreign
exchange for the country.

that are

During the year, Reliance saved Rs. 14,293 crores ($ 3,277
million) in foreign exchange for the country - representing an
increase of 51% from the foreign exchange savings of Rs. 9,487
crores ($ 2,236 million) achieved in the last year.

Foreign exchange savings are expected to increase further in the
coming years, with increase in production and exports.

products. During the year, the company exported petroleum
products worth Rs. 333 crores ($ 76 million) sourced from RPL.

Reliance's export revenues have increased more than 20 times in
the past 4 years, from a small beginning of Rs. 86 crores ($ 25
million).

Reliance's exports, even at these levels, account for only around
9% of its total revenues.

Reliance's export revenues are likely to increase further to over
Rs. 2,200 - 2,600 crores ($ 500 - 600 million) during the current
year.

Taxes Paid

Reliance is one of India's largest contributors to the national
exchequer, primarily by way of payment of customs and excise
duties to various government agencies.

During the year, Reliance paid a total of Rs. 3,719 crores ($ 853
million) in taxes and duties - representing an increase of 29% over
the Rs. 2,893 crores ($ 682 million) contributed in the form of
taxes and duties during the year 1998-99.

Reliance's payment of duties and taxes has risen consistently
over the years despite the decline in the rates of custom and
excise duties. This is on account of the continued growth in
production and sales volumes.

Exports

Reliance's total export revenues, including deemed exports,
increased 164% from Rs. 685 crores ($ 161 million) last year, to
Rs. 1,811 crores ($ 415 million) during the year 1999-2000.

This represents an increase of 116%, from Rs. 685 crores ($ 161
million) to Rs. 1,478 crores ($ 339 million) for Reliance's own
products.

Reliance has also entered into long term arrangements with
Reliance Petroleum (RPL), for exports of various petroleum

requirement of

Reliance's
feedstock, namely,
naphtha, can now be met entirely from the new Jamnagar refinery
and petrochemicals complex. This will lead to the company
turning into a net earner of foreign exchange during the current
year.

its principal

Reliance's products are exported to every part of the world. Its
international customers are based in the US, Canada, UK,
Ireland, France, Germany, Spain, Netherlands, Italy, Greece,
Belgium, Hungary, Australia, New Zealand, Argentina, Mexico,
Chile, Brazil, Colombia, Hong Kong, Singapore, China, and
several other countries.

Buyers of Reliance's products include some of the largest
industrial companies and trading enterprises in the world, such
as, Shell, DuPont, BP Chemicals, Wellman, Huntsman, Unifi,
Mitsubishi, Mitsui, Sumitomo, Unilever, Samsung,
LG
International, Marubeni, Matsushita, and Acqua Minerale.

Reliance endeavours to export value added quality products to
discerning customers, on considerations of superior economics.
This is in line with the company's strategy of moving up the value
chain by focusing on speciality products across its product
categories and markets.

Based on current exports, Reliance already ranks among the top
manufacturer - exporters from India, and is likely to emerge as the
largest manufacturer exporter from the country in the future.

Corporate Governance

The Securities and Exchange Board of
India (SEBI) has
introduced a comprehensive code on Corporate Governance. The
code is required to be implemented on or before March 31, 2001.

Reliance has voluntarily complied with a substantial portion of the
code for corporate governance in the year ended March 31, 2000
itself.

Reliance has set new benchmarks in adequate and timely
corporate disclosure, becoming the only Indian company, with its
scale and complexity of operations, to regularly publish its audited
annual results, together with the complete Annual Report, soon
after the close of each financial year.

Reliance has taken the lead in having its accounts audited by a
firm of international accountants, in addition to the regular audit

by the statutorily appointed Indian auditors.

Reliance provides, as a matter of
regular practice, a
reconciliation of its quarterly and annual accounts with US GAAP,
for the convenience of its wide base of international debt and
equity investors.

Reliance was also the first Indian company to voluntarily initiate
the process, of regularly making detailed presentations on current
financial performance, to international and domestic debt and
equity investors, including the leading government-controlled
investment institutions in the country.

This has been appreciated as a welcome step in promoting
corporate governance, given the large shareholding of the
institutional investors in leading Indian corporates.

Reliance Industries Limited

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Reliance communicates corporate,
financial and product
information, online, on its website, www.ril.com. During the year,
Reliance's website was rated amongst the most informative
corporate Indian sites, by a leading international securities house.

for Corporate Law and
Reliance has endowed a chair
Governance, at the National Law School Of the India University, to
co-ordinate and manage studies, academic courses, training,
curriculum development, as well as publication and dissemination
of information and documentation pertaining to Corporate Law
and Governance.

Reliance believes that all its operations and actions must
serve the underlying goal of enhancing overall shareholder
value, over a sustained period of time.

2. Board of Directors

The Board of Directors of the Company is comprised of:
-
-
-

5 promoter, executive Directors
1 non-promoter, executive Director
2
independent, non executive, nominee Directors
representing ICICI as lender, and GIC as investors,
respectively
4 non-executive Directors (of whom 3 are independent).

Corporate Ethics

Reliance has a defined policy framework for ethical business
conduct by its personnel.
The Ethics Policy sets forth, inter alia:

Our Values and Commitments

Our Code of Ethics

Our Business Policies

The Insider Trading Policy

A detailed programme for Ethics Management at Reliance.

-
These policies support the consistent endeavour to enhance the
reputation of the company.
During this year, Reliance has become the first Indian company to
voluntarily
framework,
transparently disclosing the detailed guidelines followed by the
towards capital
company
expenditure, acquisitions, debt
to
shareholders, and investments in affiliate companies.
A detailed report on Corporate Governance, in line with the SEBI
prescribed format incorporated in the Listing Agreements follows:

reduction, distributions

for utilisation of

allocation

articulate

its cash

capital

flows

its

1. Company's Philosophy on Code of Governance
Reliance's philosophy on corporate governance envisages
the attainment of
transparency,
accountability and equity, in all facets of its operations, and in
all
including
shareholders, employees, the government and lenders.
Reliance is committed to achieving the highest international
standards of corporate governance.

inter-actions with

its stakeholders,

the highest

levels of

its

Attendance of each Director at the Board of Directors
meetings and the last AGM is as follows:
Director

Attended

No. of meetings
Held

Last AGM
Attended

D.H. Ambani
M.D. Ambani
A.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli*
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
T.R.U. Pai
S. Venkitaramanan
U. Mahesh Rao

6
6
6
6
6
-
6
6
6
6
6
6

6
4
5
5
1
-
6
5
5
6
5
6

Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes

*Appointed as additional Director with effect from 1st April,
2000
Number of Board of Directors meetings held, and the
dates on which held
6 Board meetings were held during the year, as against the
minimum requirement of 4 meetings. The dates on which the
meetings were held are as follows: 22nd April, 25th May, 8th
July, 20th October in 1999, and 20th January, and 30th March
in the year 2000.

The "Values and Commitments" policy document states that Reliance believes that any business conduct can be ethical only when
it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.
These values are not to be lost sight of by anyone at Reliance under any circumstances irrespective of the goals that are intended to
be achieved. To us, the means are as important as the ends.
In pursuit of these values outlined in the "Values and Commitments" policy document, we are committed to an ethical treatment of all
our stakeholders - our employees, our customers, our environment, our shareholders, our lenders and other investors, our suppliers
and the Government. A firm belief that every Reliance team member holds is that the other persons' interests count as much as their
own.
The "Code of Ethics" and the "Business Policies" are in alignment with Reliance's Values and Commitments. The essence of these
documents is that each employee should conduct the company's business with integrity, in compliance with applicable laws, and in a
manner that excludes considerations of personal advantage.

The "Code of Ethics" policy document contains the policy on
the following:

The "Business Policies" document contains the policy on the
following:

Conflict of Interest

Payments and Gifting

Receipt of Gifts

Purchases through suppliers

Appointment of
representatives

full-time agents, consultants and

Political Contributions

Fair Market Practices

Inside Information

Financial, Records and Accounting integrity

External Communication

- Work Ethics

Personal Conduct

Health Safety and Environment

Quality

The "Insider Trading Policy" document contains the policies prohibiting insider trading.

Reliance Industries Limited

GROWTH IS L IFE

Information placed before the Board of Directors
It is Reliance's policy that, in addition to matters statutorily
requiring Board approval, all major decisions,
involving
mobilisation of
investments and capital
resources, new
expenditure, acquisitions, risk management, and technology, are
considered by the Board.
The following information is already regularly placed before the
Board, as will also be required in the future by SEBI's code for
corporate governance:

Annual operating plans and budgets and any updates.

- Capital budgets and any updates.

- Quarterly results for the company and its operating divisions

or business segments.

- Minutes of audit committee meetings.

Information on recruitment and remuneration of senior officers
just below the board level

- Material communications from government bodies

Fatal or serious accidents, dangerous occurences, any
material effluent, pollution problems.

- Details of any joint venture or collaboration agreement.

Labour Relations

- Material transactions which are not in the ordinary course of

business.

- Disclosures by the management on material transactions, if

any, with potential for conflict of interest

- Quarterly details of foreign exchange exposures and risk

management strategies

- Compliance with all regulatory and statutory requirements

3. Audit Committee

Reliance had already constituted an Audit Committee,
comprising of four independent, non executive Directors in
1999:
Y.P. Trivedi, Chairman
S. Venkitaramanan
U. Mahesh Rao
T. R. U. Pai

The broad terms of reference of the Audit committee are as
follows:
-

Review of the Company's financial reporting process,
and its financial statements
Review of accounting and
practices
Review of the internal control and internal audit systems
Review of risk management policies and practices

financial policies and

-
-

The Committee has met 4 times for the financial year ended
March 31, 2000, as against the minimum requirement of 3
meetings. All the committee members were present for all 4
meetings, except Mr. T.R.U. Pai who has attended 1 meeting.

4. Remuneration Committee

Reliance has constituted a Remuneration Committee,
comprising of 3 independent, non executive Directors:
M.L. Bhakta, Chairman
Y. P. Trivedi
U. Mahesh Rao

The Remuneration Committee is responsible for determining
the compensation payable to the wholetime directors, based
on performance and defined criteria.

The Committee has met once for the financial year ended
March 31, 2000. All 3 members attended the meeting.

The remuneration policy is directed towards rewarding
performance, based on review of achievements.
Details of remuneration to all the directors for the year:
The aggregate value of salary, perquisites and commission
paid for the year 1999-2000 to Mr. D.H. Ambani, Chairman,
was Rs. 5.09 crores, Mr. M.D. Ambani, Vice Chairman and
Managing Director, Rs. 4.06 crores, Mr. A.D. Ambani,
Managing Director, Rs. 4.06 crores, Mr. N.R. Meswani,
Executive Director, Rs. 1.09 crores, and Mr. H.R. Meswani,
Executive director, Rs. 1.09 crores.
The sitting fees paid for the year 1999-2000 to Mr. R.H.
Ambani, Director, was Rs. 12,000, Mr. M.L. Bhakta, Director,
Rs. 34,000, Mr. Y.P. Trivedi, Director, Rs. 50,000, Mr. T.R.U.
Pai, Director, Rs. 14,000, Mr. S. Venkitaramanan, Nominee
Director - ICICI, Rs. 20,000, and Mr. U. Mahesh Rao,
Nominee Director - GIC, Rs. 20,000. No sitting fees was paid
to any of the other Directors.

5. Shareholders' Committee

Reliance has constituted a Shareholders' Committee,
comprising of M. L. Bhakta, Y. P. Trivedi, M. D. Ambani and
A. D. Ambani.

The Committee will oversee the performance of the Registrar
and Transfer Agents, and recommend measures to improve
the level of investor services.

The company has authorised the Managing Directors and the
Company Secretary severally to approve the share transfers.

The Board has designated Rohit C. Shah, Vice President and
Company Secretary, as the Compliance Officer.

The total number of complaints received, and replied to the
satisfaction of shareholders during the year, was 70,549.

Outstanding complaints as on 31st March, 2000 were 1,070.
These have been attended/replied to by April 12, 2000.

The number of pending share transfers as on 31st March,
2000 was 1,667. These have been approved/dealt with by
April 3, 2000.

6. General Body Meetings

AGM
AGM

Date
26/6/97

Location and time for last 3 Annual General Meetings were:
Year
Location
Birla Matushri Sabhagar,
1996-97
19 Marine Lines,
Mumbai 400020
11.00a.m.
Same as above
1997-98
1998-99
11.00a.m.
Same as above
No special resolution was put through postal ballot last year,
and nor is any proposed for this year, as there is no
procedure for the same presently.

Time
11.00a.m.

24/6/98
26/6/99

AGM
AGM

7. Disclosures on materially significant related party
transactions i.e. transactions of the company of material
nature, with
the
management, their subsidiaries or relatives, etc. that may
have potential conflict with the interests of the company
at large.
There are no such transactions during the year.

the directors or

its promoters,

8. Details of non-compliance by the company, penalties,
strictures imposed on the company by stock exchanges
or SEBI, or any statutory authority, on any matter related
to capital markets, during the last three years.
None.

9. Means of communication

report sent

Half-yearly
shareholders
This will be done for the half year ending 30th September,
2000.

to each household of

Reliance Industries Limited

GROWTH IS L IFE

Quarterly results
The quarterly results are published in all leading national
newspapers, and displayed on
the corporate website,
www.ril.com, alongwith the official news release, and the
the media, analysts,
detailed presentations made
institutional investors, etc.

The Management Discussion and Analysis (MD&A) is a part
of the annual report, and each quarterly official media
release.

10. General Shareholder Information

Detailed information in this regard is provided in the
Shareholder Information section of this Annual Report.

Awards - Recognition of Excellence at Reliance

Golden Jubilee Memorial Trust Award instituted by South Gujarat
Chamber of Commerce & Industry for Outstanding Pollution
Control Programme for the year 1994-95, 1995-96 & 1998-99.
Gujarat Safety Council Award for Achieving the Lowest Disable
Injury Index for the year 1993, 1995 & 1996.
Indian Chemical Manufacturers Association Award
for
Environmental Control Strategies & Safety in Chemical plants for
the year 1995.
Indian Merchants Chamber Award for Outstanding Achievement
towards control of Air & Water Pollution in Industry for the year
1994.
National Safety Award from the Ministry of Labour (Govt. of India)
for the longest accident free period for the year 1991.
Award for Good Housekeeping
Baroda Productivity Council 1st
for Good
Housekeeping Contest for Petrochemical Complex for the years
1993, 1995 & 1996.

trophy

rank

Patalganga Petrochemicals Complex
Awards/ recognition in the areas of Health,
Safety, and Environment
5 Star Grading (British Safety Council) - 1992, 1994 & 1996
Award of Honour (National Safety Council, (U.S.A.) - 1992, 1994 &
1995
Sword of Honour (British Safety Council) - 1992, 1993 & 1994

Reliance has received several national and international awards
over the years, in recognition of its consistent performance, and
the pursuit of excellence by its people.

Corporate recognition
Reliance has been named amongst the "World's 100 best
managed companies" by Industry Week - a leading US magazine,
in August, 1999.
Reliance was one of the two Indian companies to be included in
Industry Week's 1999 list of the world's 100 best-managed
companies. Reliance was chosen as one of the best managed
companies thorough a rigorous selection procedure, highlighting
its superior and consistent financial performance, and also its
investment in such areas as research and development, new
markets, employees and society.
Reliance has been selected as the "Leading Company in India", in
December, 1999, in the Asia's Leading Companies Survey, of "Far
Eastern Economic Review - AC Nielsen Research (Singapore)".
Reliance was also rated as No. 1 on "Financial Soundness" and
"Long Term Vision", and as No. 2 among "Companies others try to
emulate", as part of this survey.

Recognition for the Chairman,
Mr. D.H. Ambani

The Chairman of the company, Mr. D.H. Ambani has been
conferred the "Indian Entrepreneur of the 20th Century" award in
March, 2000 by FICCI (Federation of Indian Chambers of
Commerce and Industries), for his meticulous scripting of one of
the most remarkable stories of business endeavour of the 20th
Century.
He has also been voted as the most admired Indian of the
millennium in the field of Business of Economics in "Legends - A
celebration of Excellence" poll audited by Ernst & Young for Zee
Network, in January, 2000.
Mr. D. H. Ambani has been awarded the prestigious Dean's Medal
in June, 1998, by the Wharton School, University of Pennsylvania,
for setting an outstanding example of leadership.

Hazira Petrochemicals Complex

Awards/ recognition in the areas of Health, Safety,
and Environment
British Safety Council National Safety Award for the year 1996
and 1999.
British Safety Council Sword of Honour for the year 1993-94.
Reliance was placed among the safest 30 companies in the world
by getting this award.
Five Star Rating Award (91.6%) for outstanding performance in
the field of Safety & Health by British Safety Council, in the year
1994-95.
British Safety Council Award for Lowest Accident / Incident rate
for the year 1992.
in
Federation of Gujarat
Environmental Preservation & Pollution Control for the year 1995
and 1999.

Industries Award

for Excellence

Reliance Industries Limited

GROWTH IS L IFE

Directors’ Report

The Directors have pleasure in presenting the 26th Annual Report and the audited accounts for the financial year ended 31st March, 2000.

Financial Results

Gross profit before interest and depreciation

Less :Interest

Depreciation

1999-2000

Rs. Crs.

US$ Mn*

4,746.61

1,088.17

1,008.00

231.09

1998-99

Rs. Crs.

US$ Mn

3,317.54

728.81

781.89

171.77

2,533.59

1,776.66

Less : Transfer from General Reserve

1,255.23

1,278.36

293.06

921.62

855.04

201.52

Profit before Tax

Less :Provision for Taxation

Profit after Tax

Balance in Profit and Loss Account

Investment Allowance (Utilised) Reserve Written Back
Debenture Redemption Reserve Written back

2,460.25

564.02

1,733.69

408.60

57.00

13.07

30.00

7.07

2,403.25

1,132.67

30.00
232.12

550.95

259.67

6.88
53.21

1,703.69

1,047.89

401.53

246.97

–
–

Surplus Available for Appropriation

3,798.04

870.71

2,751.58

648.50

Appropriations :

Capital Redemption Reserve

Debenture Redemption Reserve

General Reserve

Dividend on Preference Shares

Interim Dividend on Equity Shares

Recommended dividend on Equity Shares

Tax on dividend

Balance carried to Balance Sheet

* 1 US $ = Rs. 43.62 (Exchange rate as on 31-3-2000)

JAMNAGAR MANUFACTURING COMPLEX

During the year, the company has commissioned the paraxylene
and the polypropylene plants at its Jamnagar manufacturing complex
ahead of schedule and within the budgeted cost.

The company’s Jamnagar manufacturing complex now houses the
world’s largest paraxylene facility of 1.4 million tonnes per year.
Similarly, the polypropylene plant at the complex with a capacity to
produce 600,000 tonnes per year also ranks amongst the largest in
the world. These plants make the company the third largest
paraxylene producer and fifth largest polypropylene producer in the
world.

With the completion of the petrochemical manufacturing complex
at Jamnagar, the company’s total production capacity has
increased by 50% - to 9 million tonnes.

Dividends
The Directors have declared an interim dividend of Rs. 4 per
Equity share on 933757027 Equity shares of Rs. 10 each and pro-
rata dividend of Re.0.92 per Share on 12,00,00,000 Equity
Shares, for the financial year ended 31st March, 2000. The Interim
Dividend will be paid to all those Equity Shareholders whose
names appear in the Register of Members as on 25th April, 2000.
The Directors have also declared interim 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, 10.5%

192.12

44.04

–

1,400.00

320.96

35.57

384.65

–

46.22

1739.48

3,798.04

8.15

88.18

–

10.60

398.78

870.71

204.50

1,000.00

23.39

–

350.16

40.86

1,132.67

2,751.58

48.20

235.68

5.51

–

82.53

9.63

266.95

648.50

- 50,00,000 Redeemable Preference Shares of Rs. 100 each,
8.75-9.75% -117,12,000 Redeemable Preference Shares of Rs. 100
each, 9.50% -1,15,00,000 Redeemable Preference Shares of Rs.
100 each and 9.75% -65,00,000 Redeemable Preference Shares
of Rs. 100 each which has been paid on 23rd March, 2000.
As no final dividend has been recommended on the equity and
preference shares, the interim dividend, shall be fully adjusted as
final dividend for the financial year ended 31st March, 2000.

Allotment of Shares
During the year ended 31st March, 2000 the holders of 7 (seven)
3.5% Convertible Bonds ( FCCB) issued in international market
have opted for conversion and accordingly the company has
allotted 7624 Equity Shares of Rs 10 each. The company has also
allotted 12,00,00,000 Equity Shares of Rs. 10 each against
exercise of option by the warrantholders.

Energy, Technology and 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
During the year Reliance Ventures Limited has become a subsidiary
company and Reliance Strategic Investments Limited has become

Reliance Industries Limited

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and ceased to be a subsidiary company. 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 , Reliance Industrial Investments and Holdings Limited and
Reliance Ventures Limited and the respective Auditors’ Report thereon
for the year ended 31st March, 2000, are annexed.

Fixed Deposits
The Company has not accepted/renewed any deposits during the
year. Deposits of Rs. 0.31 crores due for repayment on or before
31st March, 2000 were not claimed by 524 depositors as on that
date and as on date of this report.

Personnel
As required by the provisions of Section 217(2A) of the Companies
Act, 1956, read with Companies (Particulars of Employees) Rules,
1975 as amended, the names and other particulars of the employees
are set out in the Annexure to the Directors’ Report. 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
Shri H.S.Kohli was appointed as an Additional Director designated
as Executive Director with effect from 1st April,2000. He holds office
until the conclusion of this Annual General Meeting and is eligible for
reappointment. The company has received a notice under Section
257 of the Companies Act,1956, proposing his appointment as a
Director, subject to retirement by rotation.
Shri Nikhil R. Meswani, Shri R.H.Ambani and Shri T.R.U. Pai, retire
by rotation and being eligible offer themselves for reappointment.

Auditors and Auditors’ Report
Messrs. Chaturvedi and Shah and Messrs. Rajendra and 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.
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. Deloitte Haskins and Sells, member
firm of Deloitte Touche Tohmatsu International (DTTI), 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, Banks, Government Authorities and Share Holders 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
Dhirubhai H. Ambani
Chairman

Mumbai
Dated: 5th May, 2000

Annexure to Directors’ Report

PARTICULARS REQUIRED UNDER THE COMPANIES
(DISCLOSURES OF PARTICULARS IN THE REPORT OF
BOARD OF DIRECTORS) RULES, 1988

Conservation of Energy

Energy Conservation Measures taken: -

Optimization of cooling water consumption over the heat
exchangers network in PTA and Energy centre which led
to stoppage of one cooling water circulation pump along
with one CT fan.

One Boiler feed water pump stopped after lowering the
pressure drop in the system.

Elimination of double pumping raw water system by
rerouting the pretreater outlet system feeding DMW system.

Replacement of metallic fin fans blades in PTA and PX by
FRP blades resulting in lower power consumption.

Modification in LP steam header pressure control logic for
maximum utilization of steam generated in PTA plant.

One each of two sets of pumps in PTA plant which were
running in parallel without any standby was stopped, making
efficient use of single drives which otherwise were operating
at lower efficiencies.

Changing of connections from delta to star of under-loaded
motors in PTA and LAB plants for maximum utilization of
available power.

Optimum distribution of load on the two processes air
compressors in PTA plant to arrive at minimum total cost
towards energy consumption.

Utilization of PTA purification second crystallizes excess
flash steam in process water heater after study of heat
integration.

10.

Total recycle of process water in PTA plant saving DM water
and also reducing effluent generation.

11. Reduction in blow down water quantity in PTA plant steam
drum by installation of automatic blow down system.

12. Saving in Boiler feed water in PTA plant by optimizing the
operating pressure of condensate collection drum.

13. Pinch analysis studies carried out for process heat

integration in PX and PTA plant.

14. Steam leaks index calculations developed for regular
monitoring of steam leaks in the plants and taking corrective
actions in time.

15. Optimizations of atomizing steam pressure in LAB plant.

16. PFY CP Quench AHUs-Cell deck type Air washers were
installed and Cooling coils were relocated to save
Refrigeration and Steam consumption and improve quench
screen life.

17. Variable Speed drive provided on the FD fan motor of Dow

vaporizer.

18. Modification of steam traps assembly in PX plant to reduce

wastage of steam.

19. Reduction in nitrogen consumption in PTA plant by

optimizing the purging flows.

20. Up-gradation of simulation package for better results on

optimizing the process design.

21.

Improvement in LAB plant FE APH design for saving on
fuel.

22. Utilization of liquid byproducts from PX plants as fuel for
gas turbine as well as for supplementary firing in HRSG.

23.

Installation of photocells to optimize on plant lighting thereby

Reliance Industries Limited

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avoiding any unnecessary illumination.

24. Dow venting system optimization at PFY CP-I saving on

Dow heat.

48. Reduction of the excess air in the dowtherm vaporiser by
density correction in PE plant has resulted in saving in fuel

49. Recovery of cooling water from PE-II pumps seal coolers.

25. Power saving by virtue of replacement of conventional

50. Recovery of re-slurry heater condensate using pumping

packs cleaning system by hydrotherm process.

trap in PE plant.

26. Cooling cost reduction by replacement of water-cooled
condensers by air-cooled condensers in all Dow vent
condensate tanks in Fibre complex.

27. Reduction in O2 in flue gas of Dow vaporizer at RPU by

1.5%

28. Replacement of conventionally heated dryers by Heat of

Compression Air Dryers.

29. More efficient pump installed for Dow Vaporizer at RPU.

30. Optimization of Compressed Air and Refrigeration System

in Fibre Complex (1 MW).

51. DM water recycle in Palletizing Section in PP plant.

52.

In PP Plant, 4 Nos. of motors of 110 kW replaced with 90
kW motor.

53. Optimization of Dow feed pump operation in POY utility to

save power of 468.6 MW/annum.

54. CP/4/5 jet water pump optimization has resulted into saving

of 420 MW/annum power.

55. Optimization of CP1/2/3 and CP 4/5/6 HCT pump operation
has resulted into stoppage of 2 nos. of pumps to save
324.45 MW/annum power.

31. Elimination of continuous blow down by the use of filming
amines replacing the conventional three chemical
treatments in boilers at EC.

56. POY quench unit operation optimization has resulted in
saving of 6744 MT/annum LP steam and 739.3 MW/annum
power in the chillers.

32. Optimization in cooling water supply to MEG 3 plant led to
substitution of a 900 KW pump by a 400 KW pump.

33. Providing insulation on make-up waterline to de-aerators

in CPP to save 13 T/Hr LP steam in de-aerator.

34.

Installation of moisture traps in cooler and moisture
separator of plant air system in CPP to stop compressed
air loss.

35. Optimisation of modified Plant Air compressor operation in

CPP resulted into stopping of one compressor in POY.

36. During Silent Hours, AC unit operation optimised in MRS-

3 building to save power of 550 kWh /Day.

37.

38.

Improved heat recovery of return condensate by cleaning
of Raw Condensate - Treated Condensate Inter-changer
in CPU has resulted into savings of 7 Tons / Hr. of LP steam
in de-aerator.

Increased extraction of 40K steam in cracker plant from
propylene refrigeration turbine, has resulted in decreased
generation of 40K steam

39. Quench Water waste heat recovery and steam drum
blowdown recovery in Cracker plant implemented

40. Steam from Fuel Gas Turbine exhaust to de-aerator has

led to saving of 12K steam @10 T/Hr in Cracker plant.

41. After conducting study of Charge gas compressor circuit
pressure, a line size was changed resulting in power saving
of 350 kWh.

42. Use of TDP Xylene product pump for Toluene service during
MSTDP unit shut down results in power saving in Aromatics
plant.

43. Cooling water system audit conducted in PTA-1 plant to
reduce the circulation rate, which resulted in stoppage of
one pump.

44. Diversion of clean condensate from cooling tower to
condensate drum and diversion of dirty condensate to
cooling tower in MEG plant, has resulted in saving in fresh
condensate generation

45.

Furnace efficiency improved to 85% by optimising Air - Fuel
ratio in VCM plant.

46. Condensate recovery system upgraded in PVC plant

resulting in better condensate recovery

47. Utilisation of fuel gas in place of MP steam in PVC dryer

has resulted in saving in fuel

57. Optimization of chilled water circulation pump during winter
operation in POY plant resulted into power saving of 510
MW/ annum.

58.

59.

In POY plant, Dowtherm fuel consumption reduced by
increasing the Dow condensate temperature from 280 DEG
C to 285 DEG C.

Filter water saving in POY Cooling Tower by rerouting the
once through cooling water to cooling tower.

60. Bypassing of draw Stand-1 Heating System in PSF draw
lines resulted in saving of 262.8 MW/annum power and
10161.6 MT/annum LP steam.

61.

In PFF, CP-8 cooling system audit resulted in stoppage of
coolers of hot and cold condensate tank, stoppage of two
out of four dow coolers of vent condensate tank; stoppage
of glycolysis liquid dow system cooler; and stoppage of
vent ejector system.

62. Optimisation of CP-7 cooling tower fan operation in PSF

plant.

63.

64.

In PFF, optimisation of EG Recovery steam ejector resulted
in saving in steam.

In PSF, optimization of condenser Fans of HCT and CCT
in CP-7 resulting in stoppage of 4 Nos. 37 kW fans.

65. Stopping the TOW conveyer belt blower after crimper in

PSF draw line.

66. Utilization of flash steam in PFF for 1.4 bar and 4.5 bar

users.

67.

Interconnection of New Spinning and Old Spinning AC
Plants - saving of electrical energy/year is approx.1.8 lacs
units.

68. Replacement of Aluminium fan by FRP fan in Sulzer AC
Plant - saving of electrical energy/year is approx.20000
units.

69. Saving in water by re-circulation and recovery.

Additional Investments / Proposals, being implemented
for reduction in Consumption of Energy: -

GT Suction air filter replacements to reduce pressure drops
and improve GT heat rate to save fuel.

Diversions of flash steam from blowdown drum to CPP de-
aerator to save 2 T/Hr. low-pressure steam in de-aerator.

Preheating quench water in GHU coolers in Cracker Plant
to save about 7 T/Hr. LP steam.

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GROWTH IS L IFE

Naphtha pre-heating in Cracker plant being implemented
to save energy of 5.6 Gcal/hr.

Additional 10" MP steam header to avoid let down 12 T/Hr.
of HP steam to MP steam in Aromatic Plant during MSTDP
unit shutdown.

Replacement of DH Column fans by FRP fans in PTA plant
would result into power saving of 228 kW.

Revamp of solvent stripper column in PTA plant resulting
in savings of LP steam by 4 T/Hr.

Trimming of carbonate pump impeller for lower flow for all
MEG plants for power savings of 600 MWH/annum.

Condensate routing to feed pre-heater for all MEG plants
resulting in savings of 1.5 T/Hr. of equivalent boiler feed
water.

10. Optimizing VCM plant EDC Cracking Furnaces resulting in

savings of 150 ksm3/annum of fuel gas.

11. Use of low-pressure flash steam in stripper in PE plant.

Total LP steam savings 4 T/Hr.

12. Heat recovery from recycle Cyclohexane stream to heat
the hot flush flow for reduction of heat losses in PE plant.

13. Use of variable speed drive for reactor feed pump in PE-II

plant to save power of about 1620 MWH/annum.

14. Power savings by replacing conveying blower motors of
both the lines in PP plant by lower rating motors. Power
savings estimated at 320 MWH/annum

15.

16.

17.

To modify the chilled water circuit in Polyester plant,
bypassing the hot well and directly hooking plant return to
chiller inlet. Power savings estimated at 350 kW.

In POY plant, replace conventional air washers with cell
type air washers. Savings potential is 30 kWh/AHU.

In PSF Plant, improve drawline condensate recovery by
taking the original flash tank in line. LP steam savings
estimated at 7 T/Hr.

18. Scheme for utilising Aromatics plant condensate as boiler
feed water in cracker de-aerator being implemented.
Achieved saving in LP steam, power and chemicals.
Installation of back pressure turbine in place of existing
letdown between 100 bar to 30 bar steam.

19.

20. Optimization of LAB (FE) feed kerosene preheat train.
21. Gas turbine inlet air cooling to increase the capacity

utilization and lower specific fuel consumption.

22. Recovery of methane from ETP plant for use as fuel.
23. Explore more efficient heat transfer equipment in polyester

24.

plants.
Implementation of modifications suggested by pinch
analysis studies in PX and PTA plants.

25. SDY chips drying by dehumidified LP air instead of HP

Nitrogen.

26.

Installation of cell deck type Air Washers and Relocation
of cooling coils to be done for AHUs of CP-2/3 to save
refrigeration and steam consumption and improve the
quench screen life.

27. Provision of variable speed drive for FD fans of new Dow

vaporizer at RPU.

Impact of Measures at (a) and (b) above for Reduction
of Energy Consumption and on the Cost of Production
of Goods :-

Changing over of cooling water supply for MEG#3 from
CT# 1 to CT#3 has led to saving of Rs. 35 lacs/annum in
CPP.

Providing insulation on make-up water line to de-aerators
in CPP has resulted into savings of Rs.3 crores/annum

Installation of moisture traps in cooler and moisture
separator of plant air system in CPP has led to savings of
Rs.4 lacs/annum.

Optimisation of Plant Air compressor operation in CPP has
resulted in power savings equivalent to Rs.78 lacs/annum.

During Silent Hour, AC unit operation optimised in MRS-3
building. This has led to power savings of 550 kWh/Day,
equivalent cost savings of Rs. 4.41 lacs/annum.

Improved heat recovery from return condensate has given
a savings of 7 Tons / Hr of LP steam in de-aerator. This has
led to saving of Rs.3 crores/annum.

Direct utilization of Aromatics plant condensate as boiler
feed water in cracker de-aerator would lead to total savings
of Rs. 2 crores/annum in LP steam, power and chemicals.

Increased extraction of 40K steam in cracker plant from
propylene refrigeration turbine has resulted into SHP steam
saving 10 MT/hr, equivalent to Rs. 3.3 crores/annum

Quench Water waste heat recovery in Cracker has resulted
into saving of Rs.1.7 crores/annum. Recovery of steam
drum blowdown in Cracker plant has led to saving of
Rs.0.5 crores/annum.

10. Steam from Fuel Gas Turbine exhaust to de-aerator has
given a savings of 12K steam @10 T/Hr. in Cracker plant.

11. Naphtha pre-heating in Cracker plant would lead to saving

of Rs.287 lacs/annum.

12.

Increased line size of Charge Gas Compressor circuit in
Cracker has resulted into power savings of 350 kWh
equivalent to Rs. 1.4 crores/annum.

13. Use of TDP Xylene product pump for Toluene service during
MSTDP unit shut down has led to saving on power
consumption by Rs. 4 lacs/annum in Aromatics plant.

14. Reduce cooling water circulation in PTA-1 plant has enabled
to stop one circulation pump. Saving through reduced power
consumption is Rs.40 lacs/year.

15. Stopping of one Compressor in MEG plant during July and
August has resulted into power saving of 153205 kWh,
equivalent to Rs.1.65 lacs / Month.

16. Diversion of clean condensate from cooling tower to
condensate drum and diversion of dirty condensate to
cooling tower in MEG plant has led to savings of Rs. 24
lacs/annum.

17.

Furnace efficiency improved to 85% by optimising Air - Fuel
ratio in VCM plant.

18. Condensate recovery system upgraded. Energy saving is
Rs.10 lacs/annum. And productivity increase by 0.3 to 0.5
MT per hour due to increased steam pressure in PVC plant.

19. Utilisation of fuel gas instead of MP steam in PVC dryer

28. Study of old cooling water system at RPU so as to stop

has resulted into savings of Rs.6 crores/annum.

cooling water circulation pump.

29. Replace gland packing of chilled water pumps at RPU by

mechanized seals.

20. Reduction of excess air in the dowtherm vaporiser by
density correction has resulted into fuel saving of Rs. 6
lacs /annum in PE plant

30. Collection, polishing and reusing of steam condensate in

21. Heat recovery from recycle Cyclohexane stream would lead

CPP - @120000 M3 of DM water/year.

to savings of Rs.40 lacs/annum.

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

22. Recovery of cooling water from PE II pumps seal coolers.
Equivalent savings achieved Rs.5.15 lacs/annum.

23. Recovery of re-slurry heater condensate using pumping
trap in PE plant would lead to recovery of LP condensate
2.5 T/Hr, equivalent cost savings of Rs.2.2 lacs/annum.

24. DM water recycle in Pelletising Section in PP plant has

resulted into saving of Rs. 4.75 lacs/annum.

25.

In PP Plant, 4 Nos. of motors of 110 kW replacement with
90 kW motor has resulted in savings of Rs.8 lacs/annum.

26. Optimization of Dow feed pump operation in POY utility
has led to power saving of 468.6 MW/annum, equivalent to
Rs. 11.57 lacs/annum.

27. CP/4/5 jet water pump optimization has resulted into power
saving of 420 MW/annum, equivalent to Rs. 10.3 lacs/
annum.

28. Optimization of CP1/2/3 and CP 4/5/6 HCT pump operation
has resulted into stoppage of 2 nos. of pumps. This has led
to power saving of 324.45 MW/annum, equivalent to Rs.
8.0 lacs/annum.

29. POY quench unit operation optimization has resulted in
6744 MT/annum LP steam and 739.3 MW/annum power in
the chillers, equivalent savings Rs. 50 lacs/annum

30. Optimization of chilled water circulation pump during winter
operation in POY plant has led to power saving of 510 MW/
annum, equivalent to Rs. 12.6 lacs/annum.

31.

32.

In POY plant, Dowtherm fuel consumption reduced by
increasing the Dow condensate temperature from 280 DEG
C to 285 DEG C. This has resulted into fuel saving of 146
NM3/hr, equivalent to Rs 100 lacs/annum.

Filter water saving in POY Cooling Tower by rerouting the
once through cooling water to cooling tower has resulted
into saving of Filter water, equivalent to Rs. 8.7 lacs/annum.

33. Bypassing of draw Stand-1 Heating System in PSF draw
lines has resulted in saving of 262.8 MW/annum power
and 10161.6 MT/annum LP steam, equivalent to Rs 55 lacs/
annum.

34.

In PFF, CP-8 : stoppage of coolers has resulted in cost
saving of Rs 26 lacs/annum

35. Optimization of CP-7 cooling tower fan operation has

resulted into saving of Rs. 1.2 lacs/annum

36.

In PFF, optimization of EG Recovery steam ejector and
stoppage of the ejector while EG Recovery in stopped
condition has resulted into saving of 2234 MT/annum steam,
equivalent to Rs. 13.51 lacs/annum.

37.

In PSF, optimization of condenser Fans of HCT and CCT
in CP-7 has led to cost saving of Rs. 32 lacs/annum

38. Stopping the TOW conveyer belt blower after crimper in
PSF draw line has resulted into stoppage of 8 nos. blowers.
This has led to 60 KW/hr power saving, equivalent to
Rs. 13 lacs/annum

43. Additional 10" MP steam header to avoid let down 12 T/Hr.
of HP steam to MP steam in Aromatic Plant during MSTDP
unit shutdown would result into saving of Rs.130 lacs /
annum.

44. Replacement of DH Column fans by FRP fans in PTA plant
would lead to power saving of 228 kW, equivalent to Rs. 45
lacs/annum.

45. Revamp of solvent stripper column in PTA plant would result
into saving of LP steam by 4 T/Hr, equivalent to Rs.150
lacs / annum.

46.

Trimming of carbonate pump impeller for lower flow for all
MEG plants would lead to power saving of 600 MWH/
annum. Estimated savings is Rs.15 lacs /annum.

47. Condensate routing to feed pre-heater for all MEG plants
would result into saving of 1.5 T/Hr. of boiler feed water,
equivalent to Rs.9 lacs / annum.

48. Optimizing VCM plant EDC Cracking Furnaces would lead
to saving of 150 ksm3/annum of fuel gas, equivalent to
Rs.4 lacs /annum.

49. Use of low-pressure flash steam in stripper in PE plant
would result into LP steam savings of 4 T/Hr, equivalent to
Rs.153 lacs / annum.

50. Use of variable speed drive for reactor feed pump in PE-II
plant would lead to power saving of 1620 MWH / annum.

51. Power savings by replacing conveying blower motors of
both the lines in PP plant by lower rating motors would
result into power savings of 320 MWH/annum, equivalent
to Rs.8 lacs/annum.

52. Modification of chilled water circuit in Polyester plant,
bypassing the hot well and directly hooking plant return to
chiller inlet would lead to power saving of 350 kW, equivalent
to Rs.139 lacs/annum.

53.

54.

In POY plant, replacement of conventional air washers with
cell type air washers would result into savings of 30 kWh/
AHU, equivalent to Rs.26 lacs/annum.

In PSF Plant, improvement of drawline condensate recovery
by taking the original flash tank in line would result into LP
steam saving of 7 T/Hr, equivalent to Rs.29 lacs/annum.

55. Stopping of cooling water circulation pump and the cooling

tower fan resulted into power saving of 900 kWh.

56. Stopping of one boiler feed water pump resulted into power

saving of 485 kWh.

57. Elimination of double pumping of raw water system by
rerouting of pretreater outlet stream feeding DMW system
saved on power by 37 kWh.

58. Replacement of metallic fin fan blades saved on power by

30KW.

59. Modification in LP steam header pressure control system
effectively stopped the venting of steam from PTA steam
drum to the tune of 65 TPD.

39. Utilization of low-pressure flash steam in PFF has resulted

60. Optimum division of loading of process air compressors in

into savings of Rs. 42 lacs/annum.

PTA plant resulted in power saving.

40. Replacement of GT Suction air filter to reduce pressure
drop would result into naphtha saving of 168 MT/annum
per GT, equivalent to Rs.18 lacs/GT.

61. Utilization of PTA purification second crystallizes excess
flash steam in process water heater saved 150 TPD of
steam.

41. Diversion of flash steam from blowdown drum to CPP de-
aerators would lead to savings of 2 MT/Hr. low pressure
steam, equivalent to Rs.80 lacs / annum.

42. Preheating quench water in GHU coolers in Cracker Plant
would result into saving of about 7 T/Hr. LP steam, estimated
to be Rs.230 lacs / annum.

62.

50 TPD of boiler feed water saved by installation of
automatic blow down system for PTA steam drum.

63. Optimization of operating pressure of condensate collection
drum in PTA plant resulted in 100 TPD saving of makeup
DM water.

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

64. Modification in PFY CP quench AHU resulted in saving of

Rs.17 lacs/annum.

65. Provision of variable speed drive for FD fan of Dow vaporizer

saved power by 17 kWh

66. Dow venting system optimization resulted in saving 0.3

mbtu/hr of Dow heat.

67. Use of Hydrotherm process for cleaning of packs resulted

in saving of Rs.1.63 crores/annum.

68. Reduction of %O2 in Dow vaporizer flue gases saved on

fuel by Rs.1.3 lacs/annum.

69. Replacement of conventionally heated dryers by Heat of
Compression Air Dryers led to saving of Rs.1.6 lacs/annum.

70. More efficient pump installed for Dow Vaporizer at RPU

saving Rs.5.5 lacs/annum.

71. Optimization of compressed Air and refrigeration systems
in Fibre complex saved power to the tune of 1 MW.

72. Steam integration through backpressure turbine would lead

to generation of 4 MW power.

73. Savings of Rs.24 lacs/annum can be achieved by using LP

air in place of HP N2 for drying of SDY chips.

74.

Implementation of revamping suggested by Pinch analysis
studies in PX and PTA plants would enable the savings to
the tune of Rs.6.5 crores/annum.

75. Stopping of old offsite cooling water pump at RPU would

result in saving of Rs.11 lacs/annum.

76.

The potential of saving Rs.25 lacs/annum is expected by
optimum performance of cooling water pumps at RPU.

Technology Absorption

FORM - 'B'

Form for disclosure of particulars with respect to:

Research and Development (R&D)

Specific Areas in which Research and Development (R&D)
is being carried out by the company:

PTA wastewater quality improvement

RIL has entered into agreement with M.S.University,
Baroda to carry out research on biodegradability of
purified terephthalic acid and paratoulic acid present
in PTA plant effluent by anaerobic route. Upon
implementation of recommendations it is expected
to generate additional methane gas, which can be
used as a fuel in RIL complex. This unique research,
being carried out for first time in the country, is
multipurpose vehicle to achieve pollution abatement
and energy conservation by using renewable energy
source.

Recovery of metals and chemicals from PTA plant
effluent

RIL has entered into agreement with UDCT, Mumbai
to carry out research on recovery of metals mainly
Cobalt and other organic acids in their usable form
from PTA plant effluent. This will be a path-breaking
step, as RIL will achieve "Zero Discharge" status on
liquid effluent front. The products recovered will yield
Rs. 3 crores per annum.

Kinetic reaction model of oxidation reactor in PTA
plant

RIL and UDCT, Mumbai are jointly developing real
time kinetic model for oxidation reactor. It will predict
the performance of reaction and hence the quality of
product on line. This will result in high degree of

product quality consistency, required in today's
competitive world.

Recovery of product and cobalt metal from PTA plant
effluent

RIL carried out experiments in the laboratory to settle
the Purified Terephthalic acid (Product), Paratoluic
acid (Product intermediate) and metals in the form
of
their compounds. By use of different
polyelectrolytes and optimising conditions for product
and metal salt settlement, high recovery % is
achieved. Plant scale design of equipment is in
progress. Upon implementation, it will result in saving
of Rs 2.5 crores per annum and reduce the COD
load by half.

Solid waste disposal from effluent treatment plant

Till recently clariflocculator sludge from central
effluent treatment plant were subjected to sludge
drying in conventional drying beds, followed by
disposal. A novel method was indigenously
developed and commissioned using sludge dryer to
dry the sludge from 90% to 10%.

This has reduced manual handling of sludge from
14 TPD to less than 1.5 TPD. The dried product is
finding end use as briquette fuel.

Dry By-product Disposal from VCM plant

The Dry By-product is being generated during the
manufacturing of VCM. The conventional method for
its disposal is burning in Incinerator. Due to the
presence of over 500 ppm iron in this by-product,
the tubes of waste heat recovery unit (WHRU) of
incinerator get clogged, thereby forcing its shutdown
within a month.

In order to mitigate this problem and increase the
run length of incinerator, two concepts have been
simultaneously developed.

To take steps to minimize iron pick up along with this
Dry By-product

To remove iron from the dry by-product with the
simplest unit operation, so that iron-free Dry By-
product can be easily fired.

We have achieved successful results on both counts
upto semi-commercial scale and our endeavour will
be to implement these on commercial scale. This
innovative technological approach is unique in the
world and shall be a breakthrough in the disposal of
VCM by-product.

In PVC plant, new alternative Polymerizer coating
has been commercially implemented in low K-value
grades to improve the product quality specially with
respect to Film defects

Triple catalyst system has been successfully tried in
PVC pipe grade to improve the Polymerizer
productivity by reducing the reaction time.

A new generation/alternative emulsifier was tried and
implemented in all PVC grades, in place of
conventional primary emulsifier, to reduce PVC
operating cost and COD of the effluent.

10. Alternative Polymerization chain terminator has been
tried, to reduce PVC operating cost and to
significantly improve thermal stability of the product.

11.

To maintain product grades superiority edge in
polymers, the process of benchmarking with the

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

PP Fibre grade cracking ratio has been increased
which has improved product physical properties
considerably.

PP product specifications optimized to attain good
flexural/stiffness balance for ICP grades.

Superior quality of benzene manufactured by
identifying and eliminating impurties.

6 new grades have been developed in Staple and
Tow.

4 new PFY grades developed.

Reduction in specific consumption of acetic acid in
PTA plant.

Reduction of catalyst specific consumption by
recovery and recycle of catalyst from residue in PTA
plant.

10. PTA oxidation reactor operation optimized using the

reactor model.

11. Higher LAB production achieved due to improved

PACOL operation.

12. PAREX operation optimized and hence utilities

consumption reduced by using simulation.

Import substitution

PTA plant control valve gate manufactured locally

PTA plant geared pump gears developed indigenously.

PP plant gear box bearing sleeve developed indigenously.

PTA and PVC plant backdrive components manufactured
indigenously.

PE plant pump body manufactured indigenously

Nash compressor body manufactured indigenously.

VCM plant Oxy reactor sparger component manufactured
indigenously.

Indigenisation of various spares and accessories resulted
in a savings of Rs 95 lacs.

Indigenisation of various chemicals and additives resulted
in savings of Rs 11 crores

Future plan of action

To establish separate R and D groups, in the form of
modules, for focussing on different areas of research
relevant to current business viz. fibres, polymeric materials,
catalysts, petrochemical process and energy.

To have R and D interaction with leading universities /
research institutes in USA, Europe and Asia in the form of
joint projects, training, lectures, seminars, workshops etc.

Some specific areas in which the research efforts to be
concentrated in the near future -

Development of polyolefin catalysts

Reduction in reaction time in PVC.

New generation scavengers to improve thermal
stability in PVC

Development of new grades in PP, PE, POY, and PTY
for new applications.

preferred international grades has been launched.

12.

To improve Aromatics product quality as per customer
demand, RIL has taken up characterisation of
undesirable impurities and identification of streams
where they concentrate.

13. POY modified polymer trials conducted for different
deniers 115/34, 235/34, 51/14, 115/108, 265/108,
126/34.

14.

Trials conducted for development of 4 new POY
grades.

15. RE-15 Spin Finish trial conducted for better product

performance in POY.

16. SS powder recovery trial conducted in POY for cost

saving.

17. PSF Finish oil related R&D trials carried out to

improve fibre performance in textile mills.

18. Oxidation reactor tracer experiments carried out by
injecting radioactive tracer to determine the
Residence time distribution in the reactor. This was
done to determine the cleanliness of reactor internals
and make an estimation of its fouling.

19. Development of soft sensors done to predict quality
of product and incorporate changes in process to
enhance quality.

20. Development of alternate sources of catalysts,

additive and spin finish oil in PFY plant.

21.

22.

Trials conducted for improving FDY productivity

Introduction of cranking air system for starting of DG
Sets has resulted in improvement of the reliability of
DG Sets' instantaneous starting.

23. Catalyst recovery from oxidation of mother liquor in

PTA plant.

24. Water recovery from purification of mother liquor in

PTA plant.

25. Organic and catalyst recovery from purification of

mother liquor in PTA plant.

26. Development of kinetic reaction model for oxy-reactor

in PTA plant.

27. Effect of reflux cooling on reactor operation and it's

effect on CTA quality.

28. Process parameter optimization in PACOL section

of LAB plant.

29. Development of process and optimization of process
parameters for conversion of heavy aromatics stream
to xylenes in PX plant.

30. Process heat integration using pinch technology
approach in PX, PTA, LAB and Fibre plants.

31. Metallurgy study of various imported machinery
components to develop the components locally.

Benefits derived as a result of the above R&D :

Product Development/Improvement:

For the first time in India, RIL has successfully
developed the toughest high flow LLD grades for
master batch application. These grades have found
high degree of acceptability in Indian market

8 new polypropylene grades have been successfully
launched and accepted in Indian market. These
include grades for battery containers, Automotive
parts, fibre, rigid packing, extrusion coating raffia
fabrics and furniture moulding.

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Expenditure on R&D :

Rs. Crores

Capital

Recurring

Total

Total R and D expenditure

as percentage of turnover

NIL

49.65

0.24%

Information regarding imported technology

Product

Technology from

Ethylene and Cracker
Products

Purified Terephthalic Acid

Stone and Webster Engineering
Corp. - USA

John Brown Engineers - UK
(ICI PLC - UK)

Mono Ethylene Glycol

Shell (Lummus Crest B.V.Holland)

PVC Expansion

Polypropylene

Geon Co. - U.S.A.

John Brown Engineers - UK
(Shell / Union Carbide)

Polyethylene Terephthalate

Sinco Engineering - Italy

High Density Polyethylene

Navacor, Canada

Polyester Staple Fibre Fill

Dupont - U.S.A. /Chemtex - U.S.A.

Paraxylene

Polypropylene

UOP Inter America Inc. - U.S.A.

Union Carbide U.K.

Year of

Import

1992

1994

1996

1994

1995

1998

1999

Status of

implementation/

Absorption

Full

C. Foreign Exchange Earnings and Outgo

2. Total Foreign exchange used and earned

Rs. Crores

1. Activities relating to export, initiatives to increase exports,
Developments of New export markets for Products and
Services and Export Plan.

The Company has continued to maintain focus and avail of
export oppurtunities based on economic considerations.
During the year, the Company had exports worth Rs.1,475.99
crores (US$ 338.37 million)

a. Total Foreign exchange earned

1,948.41

b. Total savings in foreign exchange through
products manufactured by the Division
and deemed exports (US$ 3,276.75 million)

Sub total (a + b)

c. Total Foreign Exchange used

14,293.21

16,241.62

4,093.00

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Annexure to Directors’ Report

Form ‘A’
Form for disclosure of particulars with respect to Conservation of Energy

Part ‘A’

Power and Fuel Consumption

1. Electricity

a) Purchased Units (lacs)

Total Cost (Rs. in crores)*
Rate/ Unit (Rs.)
b) Own Generation

Through Diesel Generator
Units (lacs)
Units per unit of fuel
Cost/ Unit (Rs.)
Through Steam Turbine/ Generator
Units (lacs)
Units per unit of fuel
Cost/ Unit (Rs.)

Furnace Oil
Quantity (K. Ltrs)
Total Cost (Rs. in crores)
Average Rate per Ltr. (Rs.)

3. Diesel Oil/GT Fuel

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.)

* Excluding demand charges.

Part ‘B’

Consumption per Unit of Production

April ’99 to
March ’2000

5,583.47
194.62
3.49

68.97
3.48
2.11

22,641.89
4.19
1.56

136,463.88
89.68
6.57

39,027.48
48.06
12.31

208,836.60
66.84

3,200.59

April ’98 to
March ’99

2,027.52
49.11
2.42

53.24
3.44
2.37

22,335.55
4.23
0.98

147,119.30
76.75
5.22

31,846.15
31.61
9.93

343,019.40
84.43

2,461.50

PFY
Per MT

PVC
Fabrics
Per 1000 Mtrs.
Per MT
Current Previous 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
Year

CRACKER
Per MT

MEG
Per MT

PTA
Per MT

PX
Per MT

LAB
Per MT

PSF
Per MT

HDPE
Per MT

PET
Per MT

FF
Per MT

PP
Per MT

Year

Electricity (KWH)

2726

2559

959

1047

556

605

456

539

532

Furnace Oil (Ltrs)/
HSD/HFHSD

LSHS (Kgs)

–

Gas (SM3)

1840

1637

321

–

225

270

–

553

248

631

719

564

575

316

323

369

359

1023 1310

166

175

302

356

343

–

177

–

Note : The above figures in addition to direct consumption also include allocated consumption in the supporting utilities and facilities applicable to respective products.

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Auditors’ Report

To the Members,
RELIANCE INDUSTRIES LIMITED
We have audited the attached Balance Sheet of RELIANCE
INDUSTRIES LIMITED as at 31st March 2000 and the Profit and
Loss Account of the Company for the year ended on that dated
annexed thereto and report that :
1. As required by the Manufacturing and Other Companies
(Auditors' Report) Order, 1988 issued by the Company Law
Board in terms of Section 227 (4A) of the Companies Act
1956, we give in the Annexure hereto a statement on the
matters specified in paragraphs 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to in

paragraph 1 above, we state that :
a) We have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit.
In our opinion, proper books of account, as required by
law, have been kept by the Company, so far as appears
from our examination of such books.

For Chaturvedi and Shah
Chartered Accountants

D. Chaturvedi
Partner

Mumbai
Dated : 5th May, 2000

referred

(3C) of

in Section 211

c) The Balance Sheet and Profit and Loss Account referred
to in this report are in agreement with the books of
account.
In our opinion the Balance Sheet and the Profit and Loss
the mandatory Accounting
Account complies with
Standards
the
Companies Act, 1956.
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, 2000 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 Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Annexure to Auditors’ Report

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.
information and
explanations given to us, the fixed assets have been
physically verified by the management during the year in a
is
phased periodical manner which
reasonable, having regard to the size of the Company and
nature of the assets. No material discrepancies were
noticed on such verification.

in our opinion

According

the

2. None of the fixed assets have been revalued during the

year.

3. As explained to us, the stock of stores, spare parts, raw
materials and finished goods have been physically verified
by the management at regular 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
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 us business.

to us,

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
the normally accepted accounting
principles and is on the same basis as in the preceding year
except for changes of cost formula from FIFO to weighted

average cost and exclusion of recoverable taxes and duties
incurred as required by Accounting Standard 2 issued by the
Institute of Chartered Accountants of India (Refer Note 4,
Schedule 'O') and the same has no material impact on the
profit for the year.

7. The Company has not

taken any

loans, secured or
unsecured from companies, firms or other parties listed in
the register maintained under Section301 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 Section 301 and/or
the
companies under the same management as defined under
sub-section (1B) of Section 370 of the Companies Act,
1956, except interest free loans to its subsidiary companies
and advance towards promoters contribution. Attention is
invited to Note No 10 of Schedule 'O' to the accounts. In our
opinion, having regard to the long term involvement with
these companies and considering the explanations given to
us in this regard, the terms and conditions of the above are
not, prima facie, prejudicial to the interests of the Company.
In respect of the loans and advances in the nature of loans
given by the Company to parties, other than to the
companies mentioned in para 8 above, where stipulated,
they are generally repaying the principal amounts as
stipulated/reschedule and are also generally regular in the
payment of interest, where applicable.

10. In our opinion and according to the information explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

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 realisable by-
products and scrap, wherever significant.

15. In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
16. The Central Government has prescribed maintenance of
Cost Records under Section 209 (1)(d) of the Companies

Act, 1956 in respect of certain manufacturing activities of
the Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the
opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have not,
however, made a detailed examination of the same.

17. According to the records of the Company, Provident Fund
and Employees State Insurance dues have been regularly
deposited with the appropriate authorities.

18. According to the information and 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, 2000 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
those payable under
contractual obligation or in accordance with generally
accepted business practice.

than

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 and Shah
Chartered Accountants

D. Chaturvedi
Partner

Mumbai

Dated : 5th May, 2000

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

International Accountants’ Report

the Management and

To the Board of Directors of
RELIANCE INDUSTRIES LIMITED
We have audited
the Balance Sheet of RELIANCE
INDUSTRIES LIMITED as at 31st March, 2000 and the Profit
and Loss Account of the Company for the year ended on that
date (the financial statements) attached hereto, which have
been prepared in accordance with the Generally Accepted
Accounting Principles
India and Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956.
Respective Responsibilities of
Auditors
The management of the company is responsible for the
preparation of
financial
statements have also been audited by firm of Chartered
Accountants appointed as Auditors under the statute (The
Companies Act) who submit separately
in
accordance with the provisions of the Companies Act. It is our
responsibility to form an independent opinion, based on our
audit of the statements and to report our opinion to you as a
concurrent special assignment.
Basis of Opinion
We conducted our audit in accordance with the auditing
standards issued by the Institute of Chartered Accountants of
India. An audit includes examination, on a test basis of evidence
relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant

financial statements. The

report

these

their

estimates and judgements made by the management in the
preparation of the financial statements, and whether the
accounting policies are appropriate to the circumstances to the
company, consistently applied and adequately disclosed.
We planned and performed audit so as to obtain all information
and explanation, which to the best of our knowledge and belief
were necessary for the purposes of our audit.
The financial statements dealt with by this report are in
agreement with books of accounts of the company.
Opinion
In our opinion and to the best of our information and according
to the explanations given to us, the financial statements read
with the accounting policies and notes thereon give a true and
fair view:
(i) in the case of the Balance Sheet, the state of affairs of the
Company as at 31st March, 2000 and
(ii) in the case of the Profit and Loss Account, of the profit for
the year ended on that date.

For Deloitte Haskins and Sells
Chartered Accountants

(P. R. Barpande)
Partner

Mumbai
Dated: 5th May, 2000

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Balance Sheet as at 31st March, 2000

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital - Equity
Share Capital - Preference
Reserves and Surplus

Securitisation of Future Receivables
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, 2000
Rs.

Rs.

(Rs. in crores)

As at
31st March, 1999
Rs.

Rs.

1,053.45
292.95
12,636.35

5,988.11
5,532.13

24,330.95
9,214.06

15,116.89
331.42

47.48
1,823.20
842.46
1,081.55

3,794.69
4,059.26

7,853.95

3,600.03
265.80

3,865.83

‘A’
‘A’
‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘I’

‘N’
‘O’

12,369.34

965.02

10,685.29

24,019.65

13,982.75

–

11,520.24

25,502.99

933.39
252.95
11,183.00

5,477.64
5,207.65

18,650.33
6,691.93

11,958.40
3,437.83

15,448.31
6,066.56

15,396.23
4,294.59

25.61
1,408.61
457.10
4,897.60

6,788.92
1,676.26

8,465.18

3,591.98
544.37

4,136.35

3,988.12

25,502.99

4,328.83

24,019.65

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

D. Chaturvedi
Partner

R.J. Shah
Partner

A.D. Ambani
Managing Director

N.R. Meswani
Executive Director

H.R. Meswani
Executive Director

Mumbai
Dated: 5th May, 2000

Rohit C. Shah
Vice President and Company Secretary

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Profit and Loss Account for the year ended 31st March, 2000

GROWTH IS L IFE

Schedule

1999-2000

(Rs. in crores)

1998-99

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’]

‘J’
‘K’

‘L’
‘M’

Profit Before Tax

Provision for Taxation

Profit for the year

Add :

Balance brought forward from last year
Debenture Redemption Reserve Written back
Investment Allowance (Utilised)
Reserve Written Back

Amount Available For Appropriations

APPROPRIATIONS

Capital Redemption Reserve
Debenture Redemption Reserve
General Reserve
Interim Dividend on Preference Shares
Interim Dividend on Equity Shares
Proposed Dividend on Equity Shares
Tax on Dividend

Balance Carried to Balance Sheet

Significant Accounting Policies
Notes on Accounts

‘N’
‘O’

20,301.39
687.30
343.68

21,332.37

486.01
16,099.75
1,008.00

1,278.36

18,872.12

2,460.25
57.00

2,403.25

1,132.67
232.12

30.00

3,798.04

14,553.26
607.55
(152.43)

15,008.38

190.32
11,500.52
728.81

855.04

13,274.69

1,733.69
30.00

1,703.69

1,047.89
–

–

2,751.58

1,776.66
921.62

–
204.50
1,000.00
23.39
–
350.16
40.86

2,058.56

1,739.48

1,618.91

1,132.67

2,533.59
1,255.23

192.12
–
1,400.00
35.57
384.65
–
46.22

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

D. Chaturvedi
Partner

R.J. Shah
Partner

A.D. Ambani
Managing Director

N.R. Meswani
Executive Director

H.R. Meswani
Executive Director

Mumbai
Dated: 5th May, 2000

Rohit C. Shah
Vice President and Company Secretary

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

120,00,00,000 Equity Shares of Rs. 10 each
(120,00,00,000)

10,00,00,000 Preference Shares of Rs. 100 each
(10,00,00,000)

As at
31st March, 2000
Rs.

Rs.

1,200.00

1,000.00

(Rs. in crores)

As at
31st March, 1999
Rs.

Rs.

1,200.00

1,000.00

2,200.00

Issued, Subscribed and Paid up:

Equity

105,37,57,027 Equity Shares of Rs. 10 each fully
(93,37,49,403) paid up

Less: Calls in arrears - by others

1,053.76
0.31

933.75
0.36

1,053.45

933.39

Preference

1,17,45,000 10% Cumulative Redeemable
(1,27,45,000) Preference Shares of Rs. 100 each

fully paid-up (Redeemable at par
on 15th September, 2000)

10,50,000 10.5% Cumulative Redeemable
(10,50,000) Preference Shares of Rs. 100 each

fully paid-up (Redeemable at par
on 15th September, 2002)

50,00,000 10.5% Cumulative Redeemable
(50,00,000) Preference Shares of Rs. 100 each

fully paid-up (Redeemable at par
on 17th September, 2002)

– 9.75% Cumulative Redeemable

(65,00,000) Preference Shares of Rs. 100 each

fully paid-up (Redeemable at par
on 28th July, 1999)
1,15,00,000 9.50% Cumulative Redeemable

(-) Preference Shares of Rs. 100 each
fully paid-up (Redeemable at par on
31st July, 2004)

117.45

127.45

10.50

50.00

–

115.00

10.50

50.00

65.00

–

292.95

1,346.40

252.95

1,186.34

Notes:

1. Of the above Equity Shares:

(a)

(b)

(c)

48,17,70,552
(48,17,70,552)

Shares were allotted as Bonus Shares by capitalisation of Share Premium and Reserves.

18,05,78,290
(18,05,78,290)

Shares were allotted pursuant to Schemes of Amalgamation without payments being received in
cash.

33,04,27,345
(21,04,19,721)

Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term
Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited
equity shares.

2. During the year company has issued and redeemed 117,12,000 Cumulative Redeemable Preference Shares of Rs. 100 each

aggregating Rs. 117.12 crores at par.

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘B’

RESERVES and SURPLUS

As at

(Rs. in crores)

As at

Revaluation Reserve

As per last Balance Sheet

Capital Reserves

As per last Balance Sheet
Add : On Redemption of Bonds/Debentures

Less: Adjusted on Sales Tax Assessment

Capital Redemption Reserve
As per last Balance Sheet
Add : Transferred from Profit and Loss Account

Securities Premium Account
As per last Balance Sheet
Add : Received during the year

Less:

Issue Expenses
Premium on Redemption of Debentures/Bonds

Less : Calls in arrears - by others

Debenture Redemption Reserve
As per last Balance Sheet
Add : Transferred from/(to) 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

General Reserve

As per last Balance Sheet
Less: Transferred to Profit and Loss Account*
[Refer Note 3(a) and 3(b), Schedule ‘O’]

Add : Transferred from Profit and Loss Account

Profit and Loss Account

31st March, 2000

31st March, 1999

Rs.

2,771.06

187.57
–

187.57

–

–
192.12

4,677.76
780.10

5,457.86
2.65
5.99

5,449.22
2.84

740.01
(232.12)

238.70

30.00

1,428.38
1,255.23

173.15
1,400.00

183.24
4.58

187.82

0.25

187.57

–
–

192.12

–

4,737.09
–

4,737.09
0.07
59.26

4,677.76
3.15

5,446.38

4,674.61

740.01

238.70

10.00

507.89

208.70

10.00

535.51
204.50

238.70

–

1,350.00
921.62

428.38
1,000.00

1,573.15
1,739.48

12,636.35

1,428.38
1,132.67

11,183.00

* Cumulative amount transferred on account of Depreciation on Revaluation
Rs. 1,895.27 crores (Previous Year Rs.1521.21 crores)

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘C’

SECURED LOANS

A) DEBENTURES

Non-Convertible Debentures

Less : Calls in arrears - by others

Deep Discount Debenture

Less : Unamortised Discounts

B) TERM LOANS

From Banks

a) Foreign Currency Loans

b) Rupee Loans

From Financial Institutions

a) Foreign Currency Loans

b) Rupee Loans

C) WORKING CAPITAL LOANS

From Banks

As at

(Rs. in crores)

As at

31st March, 2000

31st March, 1999

Rs.

3,406.50

–

3,406.50

616.00

242.65

373.35

750.87

650.07

1,400.94

7.97

150.54

158.51

3,779.85

3,578.04

0.67

3,577.37

–

1,527.00

12.52

33.72

46.24

3,577.37

1,559.45

648.81

5,988.11

1,573.24

327.03

5,477.64

Note: Secured Loans include loans of Rs. 4.55 crores and Debentures of Rs. 370.00 crores repayable / redeemable within one year.

SCHEDULE ‘D’
UNSECURED LOANS

ii)

From Banks

From Others

As at
31st March, 2000
Rs.

Rs.

778.37

4,753.76

5,532.13

(Rs. in crores)
As at
31st March, 1999
Rs.

Rs.

751.71

4,455.94

5,207.65

Note : Short Term Loans raised by issue of commercial paper and outstanding at year end Rs. NIL (Previous Year Rs. NIL)

(Maximum amount outstanding at any time during the year Rs. 595.00 crores.)

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘E’

FIXED ASSETS

Description

Leasehold Land
Freehold Land
Development Rights/
Producing Properties
Buildings
Plant and Machinery
Electrical Installation
Factory Equipments
Furniture and Fixtures
Vehicles
Ships
Aircrafts
Jetties

Total

Previous Year

Capital Work-in-Progress

NOTES :

As At
1-4-99
Rs.

54.65
23.67

822.37
1,269.18
15,340.03
447.35
230.27
74.68
81.69
198.30
46.87
61.27

18,650.33

17,848.33

Gross Block

Depreciation

Additions

Rs.

4.55
0.55

123.40
191.19
5,062.12
231.45
21.17
7.30
8.65
18.35
0.05
51.98

5,720.76

Deduc-
tions
Rs.

As At
31-3-2000
Rs.

-
-

59.20
24.22

945.77
1,456.18
20,381.52
678.80
247.72
81.28
82.78
213.31
46.92
113.25

-
4.19
20.63
-
3.72
0.70
7.56
3.34
-
-

40.14

Upto
1-4-99
Rs.

2.74
-

59.14
109.47
6,176.97
91.48
37.87
26.32
18.85
131.50
18.09
19.50

24,330.95

6,691.93

924.68

122.68

18,650.33

4,944.47

For the
Year
Rs.

0.52
-

52.62
31.16
2,360.52
26.15
12.96
5.42
7.80
12.02
4.67
19.75

2,533.59

1,776.66

Deduc-
tions
Rs.

Upto
31-3-2000
Rs.

3.26
-

111.76
140.32
8,531.57
117.63
50.61
31.49
23.64
141.77
22.76
39.25

-
-

-
0.31
5.92
-
0.22
0.25
3.01
1.75
-
-

11.46

29.20

(Rs. in crores)

Net Block

As At
31-3-2000
Rs.

55.94
24.22

834.01
1,315.86
11,849.95
561.17
197.11
49.79
59.14
71.54
24.16
74.00

As At
31-3-99
Rs.

51.91
23.67

763.23
1,159.71
9,163.06
355.87
192.40
48.36
62.84
66.80
28.78
41.77

9,214.06

15,116.89

11,958.40

6,691.93

11,958.40

331.42

3,437.83

Leasehold Land includes Rs. 0.11 crores in respect of which lease-deeds are pending execution.
Buildings include cost of shares in Co-operative Societies Rs. 0.01 crores (Previous Year Rs. 0.01 crores).

a)
b)
c) Capital Work-in-Progress includes :

Rs.8.73 crores on account of Pre-operative Expenses (Previous Year Rs. 558.98 crores).
Rs.100.80 crores on account of cost of construction materials at site (Previous Year Rs. 82.04 crores).
Rs.78.62 crores on account of advance against Capital Expenditure (Previous Year Rs. 58.58 crores).

(i)
(ii)
(iii)
Additions and Capital Work-in-Progress include Rs. 214.13 crores on account of exchange difference during the year
(Previous Year Rs. 21.68 crores)
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.
Gross Block includes Rs. 2,771.06 crores being the amount added on revaluation of Plant and Machinery as at 01-04-1997.

* Refer to Note 3(a) and 3 (b), Schedule ‘O’.

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

As at

(Rs. in crores)

As at

31st March, 2000

31st March, 1999

Rs.

SCHEDULE ‘F’

INVESTMENTS

A. LONG TERM INVESTMENTS
Government and other securities
Unquoted

Post Office Time Deposit
7 Years National Savings Certificate
(Deposited with Sales Tax Dept.)
(Rs. Nil : Previous Year Rs. 5,000)
Indira Vikas Patra
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

6,01,08,033 Reliance Capital Ltd. of Rs. 10 each

(6,05,79,809)

69,80,000 Reliance Industrial Infrastructure

(69,80,000) Ltd. of Rs. 10 each

–
–

0.51
–

487.85

16.58

111,23,37,100 Reliance Petroleum Ltd. of Rs. 10 each

2,157.62

(-)

(Company under the same management)

2,662.05

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
(5) Mahajan Co-operative Shops and

Warehouse Society Ltd. of Rs. 200 each,
(Rs. 1,000; Previous Year Rs. 1,000)

165 The Art Silk Co-operative
(165) Society Ltd. of Rs.100 each,

(Rs.16,500; Previous Year Rs. 16,500)

20 The Bombay Market Art Silk

(20) Co-operative (Shops and Warehouses)

Society Ltd., of Rs.200 each,
(Rs. 4,000; Previous Year Rs. 4,000)

15 Pandesara Industrial Co-operative

(15) Society 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
(300) Private Ltd. of Rs.10 each

(Rs. 3,000; Previous Year Rs. 3,000)

800 Reliance Global Trading
(800) Private Ltd. of Rs.10 each

(Rs. 8,000; Previous Year Rs. 8,000)

51,02,080 Reliance Telecom Limited

(51,02,080) of Rs. 10 each

–

3.93

–

5.10

9.03

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

0.20
–

0.51
–

0.51

0.71

486.54

16.58

–

503.12

–

3.93

–

5.10

9.03

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ ( contd.)

INVESTMENTS

Unquoted, partly paid up

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.

(1,000) of Rs. 10 each Rs. 2.50 paid up

(Rs. 2,500; Previous Year Rs. 2,500)
1,250 Reliance Global Trading Private Ltd.

(1,250) of 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
(86,00,000) Preference Shares

of Reliance Enterprises Limited,
of Rs. 100 each
1,08,00,000 14% Cumulative Redeemable
(32,00,000)

Preference Shares of
Reliance Ports and Terminals Ltd.,
of Rs. 100 each
37,50,000 14% Cumulative Redeemable
(37,50,000) Preference Shares of Reliance

Utilities and Power Limited,
of Rs. 100 each

As at
31st March, 2000
Rs.

Rs.

(Rs. in crores)
As at
31st March, 1999
Rs.

Rs.

–

86.00

108.00

37.50

–

86.00

32.00

37.50

231.50

155.50

In Warrant Equity Shares
Quoted, partly paid up

16,02,52,100 Warrant Equity Shares 2000 of Reliance

48.08

(-) Petroleum Ltd. of Rs. 10 each, Rs. 3 paid-up
(Company under the same management)
16,02,52,100 Warrant Equity Shares 2001 of Reliance

(-) Petroleum Ltd. of Rs. 10 each, Rs. 3 paid-up
(Company under the same management)

48.08

96.16

–

In Debentures
Unquoted, fully paid up

- 14% Optionally Fully Convertible

(2,23,52,830) Debentures of Reliance Petroleum Ltd.

of Rs. 770 each, fully paid up
(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

20,20,000 Reliance Ventures Ltd. of Rs. 10 each

(-)

–

1,721.17

2,998.74

2,388.82

0.21

147.50

2.02

149.73

0.21

147.50

–

147.71

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ ( contd.)

INVESTMENTS

In Debentures of Subsidiary Companies
Unquoted, fully paid up

8,83,143 Zero Coupon Optionally Convertible
(8,83,143) Unsecured Debentures of Reliance

Industrial Investments and
Holdings Ltd. of Rs. 5,000 each

2,79,90,000 0% Unsecured Convertible

(2,79,90,000) Debentures of Reliance Industrial

Investments and Holdings Ltd.
of Rs. 100 each

Other Investments
In Equity Shares
Quoted, fully paid up

15,51,549 BSES Ltd. of Rs. 10 each
(15,51,549)

9,52,347 Larsen and Toubro Ltd.

(17,82,347) of Rs. 10 each

Unquoted, fully paid up

1,000 Air Control and Chemical Engineering

(1,000) Co. Ltd. of Rs. 100 each

TOTAL (A)

B. CURRENT INVESTMENTS
Other Investments
In Units
Quoted

1,61,100 SBI Magnum Multiplier Plus 1993 units

(3,05,200) of Rs. 10 each

85,600 Units of Unit Scheme 1964, Unit Trust of India

(85,600)

of Rs. 10 each

Unquoted

78,25,116 Reliance Capital Vision Fund Units

(1,06,42,017) of Rs. 10 each

10,00,000 Reliance Capital Growth Fund Units

(25,00,000) of Rs. 10 each

In Investment Management Account

With Union Bank of Switzerland
With Credit Suisse

As at
31st March, 2000
Rs.

Rs.

(Rs. in crores)
As at
31st March, 1999
Rs.

Rs.

441.58

279.90

441.58

279.90

721.48

871.21

869.19

33.73

28.37

62.10

0.01

0.16

0.13

0.29

7.83

1.00

8.83

2,081.86
43.01

2,124.87

33.73

43.36

77.09

0.01

62.11

3,932.57

77.10

3,335.82

0.31

0.13

0.44

10.64

2.50

13.14

539.34
405.85

945.19

TOTAL (B)

TOTAL (A+B)

2,133.99

6,066.56

958.77

4,294.59

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ ( contd.)

INVESTMENTS

AGGREGATE VALUE OF

Quoted Investments

Unquoted Investments

Movements during the year

Purchased and Sold

Mutual Fund Units

Reliance Liquid Fund

As at
31st March, 2000
Rs.

Rs.

(Rs. in crores)
As at
31st March, 1999
Rs.

Rs.

Book

Value

Rs.

Market

Value

Rs.

Book

Value

Rs.

Market

Value

Rs.

2,820.60

3,245.96

8,689.71

583.14

296.35

–

3,711.45

–

Face Value

Rs.

Nos.

Cost

(In crores) (Rs. in crores)

10.00

201.50

2,273.72

Face Value

Rs.

Nos.

Cost

Rs. in crores

Debentures

12.75% Reliance Petroleum Ltd. Non Convertible Debenture

10,000,000.00

120

Equity Shares

Larsen and Toubro Ltd.

Reliance Capital Ltd.

Reliance Strategic Investments Private Liumited

(Rs. 2,000)

10.00

50,000

535,600

200

2.05

9.27

–

*The Company's investment in Reliance Petroleum Ltd., a Company under the same management is towards promoters

contribution. It includes 85,62,300 shares subject to lock-in-period upto February, 2001. The Company has given an

undertaking to financial institutions not to dispose off 32,00,37,700 shares till the loans granted by them to

Reliance Petroleum Ltd. are outstanding.

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘G’

CURRENT ASSETS

INTEREST ACCRUED ON INVESTMENTS

INVENTORIES
(Certified and Valued by the Management)
Stores, Chemicals and Packing Materials.
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

SCHEDULE ‘H’

LOANS AND ADVANCES

UNSECURED - (CONSIDERED GOOD)
Loans to subsidiary companies
Advances recoverable in cash or in kind or for
value to be received
Deposits
Balance with Customs, Central Excise Authorities, etc.

NOTES :

Advances includes:

As at
31st March, 2000
Rs.

Rs.

(Rs. in crores)

As at
31st March, 1999
Rs.

Rs.

47.48

25.61

642.62
297.35
96.09
787.14

61.01
62.59

123.60
62.59

61.01

781.45

1.00

41.37

29.30
1,009.88

556.46
312.60
52.57
486.98

1,823.20

1,408.61

58.40
44.35

102.75
44.35

58.40

398.70

842.46

457.10

1.08

40.15

1.21
4,855.16

1,081.55

3,794.69

4,897.60

6,788.92

As at
31st March, 2000
Rs.

Rs.

(Rs. in crores)

As at
31st March, 1999
Rs.

Rs.

2,411.16

1,221.45
297.91
128.74

4,059.26

359.48

1,032.61
163.64
120.53

1,676.26

(i) Rs 0.21 crores to Officers ( Maximum amount outstanding at any time during the year Rs 0.21 crores)

(ii) Rs NIL to Reliance Petroleum Limited, a Company under the same management towards advance against promoters'
contribution.(Previous Year Rs 40.77 crores)(Maximum amount outstanding anytime during the year Rs 401.17 crores.)

(iii) Rs. 165.41 crores towards Preference Shares / Debentures Application money pending allotment.

(Previous Year Rs 134.71 crores)

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Schedules forming part of the Balance Sheet

SCHEDULE ‘I’

CURRENT LIABILITIES AND PROVISIONS

As at
31st March, 2000
Rs.

Rs.

(Rs.in crores)

As at
31st March, 1999
Rs.

Rs.

CURRENT LIABILITIES

Sundry Creditors
Interim Dividend
Unclaimed Dividend
Interest accrued but not due on loans

PROVISIONS

Provision for Wealth Tax
Provision for Income Tax
Provision for Leave Encashment
Proposed Dividend
Tax on Dividend

2,959.29
384.65
21.65
234.44

13.90
195.00
14.59
–
42.31

3,345.20
–
12.42
234.36

3,600.03

3,591.98

6.73
138.00
10.96
350.16
38.52

265.80

3,865.83

544.37

4,136.35

* Includes for capital expenditure Rs. 372.43 crores.(Previous Year Rs 331.54 crores), acceptances of Rs 5.33 crores

(Previous Year Rs 6.47 crores)

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘J’

OTHER INCOME

Dividends :

From Current Investments
From Long Term Investments

[Tax Deducted at source Rs. Nil;
(Previous Year Rs. 0.01 crores)]
Interest Received :

From Current Investments
From Long Term Investments
From Others

[Tax Deducted at source Rs. 0.69 crores;
(Previous Year Rs. 3.13 crores)]
Profit on Sale of Long Term Investments (net)
Profit on Sale of Current Investments (net)
Profit on Sale of Assets
Miscellaneous Income

Rs.

0.01
20.74

472.09
87.44
35.15

1999-2000
Rs.

(Rs. in crores)

1998-99
Rs.

Rs.

0.06
20.63

20.75

20.69

367.89
124.15
70.42

594.68

55.96
2.73
0.42
12.76

687.30

562.46

–
3.39
4.72
16.29

607.55

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘K’

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)
Finished goods
Stock-in-process

STOCK-IN-TRADE (at commencement)
Finished goods
Stock-in-process

SCHEDULE ‘L’

MANUFACTURING AND OTHER EXPENSES

RAW MATERIALS CONSUMED
INTER-DIVISIONAL TRANSFERS
MANUFACTURING EXPENSES

Other Materials and Utilities Consumed
Machinery Repairs
Building Repairs
Labour, Processing and Machinery Hire Charges
Excise Duty
Lease Rent
Exchange Differences (Net)

PAYMENTS TO AND PROVISIONS
FOR EMPLOYEES

Salaries, Wages and Bonus
Contribution to Provident Fund, Gratuity Fund,

Superannuation Fund, Employee’s State Insurance
Scheme, Pension Scheme, Labour Welfare Fund etc.

Employee’s Welfare and other amenities

SALES and DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses
Brokerage and Commission
Warehousing and Distribution Expenses
Sales Tax

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 and Donations

Less : Pre-operative Expenses of Projects Under Commissioning (net)

1999-2000

(Rs. in crores)
1998-99

Rs.

787.14
96.09

486.98
52.57

Rs.

1,229.49
49.02
19.96
199.69
2,451.53
37.83
(289.26)

281.33

36.17
57.30

41.16
100.28
226.61
8.31

48.56
28.45
85.17
27.37
25.53
2.15
123.49
7.50
183.76
4.00
21.55

883.23

539.55

343.68

1999-2000
Rs.

6,642.44
4,454.23

486.98
52.57

637.20
54.78

539.55

691.98

(152.43)

(Rs. in crores)
1998-99
Rs.

Rs.

3,210.94
3,929.11

1,096.61
72.20
20.42
85.77
1,929.46
50.15
(21.64)

3,698.26

3,232.97

358.30

290.44

374.80

376.36

262.96

35.92
59.42

30.90
78.08
179.34
2.12

49.56
25.16
73.34
28.88
30.91
1.95
95.37
1.33
172.58
4.00
7.21

557.53

16,103.62

3.87

16,099.75

490.29

11,512.05

11.53

11,500.52

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘M’

INTEREST

Debentures
Fixed Loans

Others

As at
31st March, 2000
Rs.

Rs.

(Rs. in crores)

As at
31st March, 1999
Rs.

Rs.

794.73
156.99

56.28

1,008.00

608.21
60.00

60.60

728.81

Significant Accounting Policies

SCHEDULE ‘N’

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
have been 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 all power plants, ships, aircrafts, computer systems and plant and machinery at Patalganga, Naroda and Hazira
excluding Cracker and Aromatics plants, depreciation has been provided on written down value basis (WDV) 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 lease hold 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 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) In the case of inter-related assets and liabilities the net balances are restated at year end rates.

Subject to the above:
(I) 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.

(II) Non monetary foreign currency items are carried at cost.

(c) Branch income and expenses are translated at average rate. Branch monetary assets and liabilities are translated at year-end rates. Non

monetary items are translated at the rates on the date of transaction.

(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 acquisition of fixed assets in which case they are adjusted to the carrying cost of such
assets.

Investments
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.

Inventories
Inventories are valued at lower of cost or net realisable value except for by products. By products are valued at net realisable value. Cost is
determined using weighted average cost method.

G. Sales

Sales include inter-divisional transfers and sales during trial run; adjusted for discounts (net).

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

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’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 up to 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 Un-incorporated joint venture with Oil and Natural Gas Corporation
Ltd. and Enron Oil and Gas India Ltd. are accounted on the basis of available information on line by line basis with similar items in the
company’s financial statements, according to the participating interest of the company.

Issue Expenses
Issue Expenses pertaining to the projects are capitalised.

SCHEDULE ‘O’

Notes on Accounts

(a) The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.
(b) Figures have been presented in 'crores' of rupees with two decimals in accordance with the approval received from the

2.
3.

Company Law Board. Figures less than Rs. 50,000 have been shown at actuals in brackets.
Sales include Inter-divisional transfers of Rs. 4,454.23 crores (Previous Year Rs. 3,929.11 crores).

(a) On account of technological advancements and increasing obsolescence, the Company has changed the method of
depreciation for its plant and machinery at Hazira commissioned between 1-4-1995 and 31-3-1999 except Cracker and
Aromatics plants from Straight Line to Written Down Value method with effect from April 1, 1999.
In compliance with the Accounting Standards (AS 6) issued by the Institute of Chartered Accountants of India, depreciation
has been recomputed from the date of commissioning of these plants at WDV rates applicable to those years. Consequent to
this, there is an additional charge for depreciation during the year of Rs. 881.17 crores due to the said change which relates to
the previous years and an equivalent amount has been withdrawn from General Reserve and credited to the Profit and Loss
Account.
Had there been no change in the method of depreciation, the charge for the year would have been lower by Rs 299.86 crores,
excluding the charge relating to the previous years.
Consequently, the Net Block of Fixed Assets and Reserves and Surplus are lower by Rs. 1,181.03 crores.

(b) The Gross Block of Fixed Assets include Rs 2771.06 crores (Previous Year Rs 2771.06 crores) on account of revaluation of
Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge of depreciation of Rs
374.06 crores (Previous Year Rs 728.26 crores) and an equivalent amount has been withdrawn from General Reserve and
credited to the Profit and Loss Account.
The Company has during the year valued inventories of raw materials at weighted average cost as permissible under the
Accounting Standard 2 (AS 2) "Valuation of Inventories" issued by the Institute of Chartered Accountants of India instead of
First In First Out (FIFO) formula hitherto followed, as in the opinion of the company such change would result in a more
appropriate presentation of the financial statements. The Company has also excluded recoverable taxes and duties incurred
from valuation of inventories as required by AS 2.
However consequent to this, there is no material impact on the profits for the year.
The expense on account of exchange difference on outstanding forward exchange contracts to be recognised in the Profit and
Loss Account of subsequent accounting period aggregate to Rs. NIL. (Previous Year Rs 0.14 crores)

(a) Auditors’ Remuneration :

Audit Fees
Tax Audit Fees

i)
ii)
iii) For Certification and Consultation in finance and tax matters

iv) Expenses reimbursed

(b) Cost Audit Fees

Reliance Industries Limited

1999-2000
1.00
0.40
0.65

0.10

2.15

0.03

(Rs. in crores)
1998-99
1.00
0.20
0.65

0.10

1.95

0.03

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘O’ (Contd.)

Managerial Remuneration :

i)
Salaries
ii) Perquisites
iii) Commission

iv) Contribution to Provident Fund and Superannuation Fund
v) Provision for Gratuity

1999-2000
2.61
0.99
11.78

15.38

0.45
0.58

16.41

Computation of net profit in accordance with Section 198 read with Section 309(5) of the Companies Act, 1956.

Profit before taxation
Add
Less

Depreciation as per accounts
Transfer from General Reserve

Add

Less

Provision for Doubtful Debts
Loss on Sale of Assets
Managerial Remuneration

Depreciation under Section 350
of the Companies Act, 1956
Profit on Sale of Assets
Profit on Sale of Investments

Net Profit for the year

Salaries, Perquisites and Commission
@ 0.75 % of the above.

Less

Salaries and Perquisites

Balance commission

Rs.

2,533.59
1,255.23

Rs.

1,776.66
921.62

1999-2000
Rs.
2460.25

1,278.36

18.24
7.50
15.38

3779.73

1,670.10
0.42
58.69

2050.52

15.38

3.60

11.78

(Rs. in crores)
1998-99
2.12
0.90
2.70

5.72

0.30
0.06

6.08

(Rs. in crores)
1998-99
Rs.
1,733.69

855.04

23.00
1.33
5.72

2,618.78

1,467.53
4.72
3.39

1,143.14

5.72

3.02

2.70

10.

11.

A sum of Rs. 0.07 crores (net debit) (Previous Year Rs. 0.65 crores net debit) is adjusted to General Expenses
representing Net Prior Period Items.

The income-tax assessments of the Company have been completed up to Assessment Year 1997-98. The total demand
raised by the Income-Tax Department up to the said Assessment Year is Rs. 467.30 crores, which is disputed. Based on
the decisions of the Appellate authorities 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 reserves 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.

The company has an investment of Rs.0.21 crores in the Share Capital, loan of Rs. 12.72 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 2000. 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.

Fixed assets taken on lease amount to Rs. 434.22 crores. (Previous Year Rs. 436.47 crores). Future obligations towards
lease rentals under the lease agreements as on 31st March 2000 amount to Rs. 54.20 crores. (Previous Year Rs. 91.71
crores)

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘O’ (Contd.)

12. PRE-OPERATIVE EXPENSES

(In respect of Projects up to 31st March 2000, to be capitalised.)

Opening Balance

Add : Pre-operative expenditure transferred from

Profit and Loss account

Lease Expenses and Hire Charges

Interest

Issue Expenses

Rs.

3.87

7.49

267.52

–

Less : Capitalised during the year

Closing Balance

13. CONTINGENT LIABILITIES

(a) Estimated amount of contracts remaining to be executed

on capital accounts and not provided for

(b) Outstanding guarantees furnished to Banks and Financial

Institutions including in respect of Letters of Credit
(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/Warant Equity

Shares/Debentures

(f) Claims against the company/disputed liabilities not

acknowledged as debts

(g) Sales tax deferral liability assigned

1999-2000

Rs.
558.98

278.88

837.86

829.13

8.73

As at

Rs.

11.53

4.11

363.25

24.94

(Rs. in crores)

1998-99

Rs.
189.86

403.83

593.69

34.71

558.98

(Rs. in crores)

As at

31st March, 2000

31st March, 1999

Rs.

63.92

150.34

203.38
370.74
865.36

110.75

235.27

923.58

635.16

1623.00
61.33
–

200.92

235.27

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Notes on Accounts

Licensed Capacity

Installed Capacity

UNIT

1999-2000

1998-99

1999-2000

1998-99

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.

1,550,000
755,000
291,000
465,000
197,000
165,000
N.A.
N.A.
N.A.
N.A.

N.A.
N.A.
600,000
75,000
75,000
N.A.

N.A.
N.A.
N.A.
22
708,800
800,000
20,160
1,646,000
150,000
150,000
N.A.
N.A.

1,550,000
755,000
291,000
465,000
197,000
165,000
N.A.
N.A.
N.A.
N.A.

N.A.
N.A.
600,000
75,000
75,000
N.A.

N.A.
N.A.
N.A.
N.A.
1,104,800
1,268,000
31,860
1,400,000
–
150,000
N.A.
N.A.

750,000
365,000
291,000
225,000
197,000
165,000
975,000
960,000
270,000
235,000

750,000
365,000
235,000
225,000
197,000
165,000
975,000
360,000
270,000
235,000

320,000

320,000
152,300+ 152,300+
300,000
37,500
50,000
100,000

300,000
37,500
50,000
100,000

24,094
23,040
607
20
–
–
–
1,646,000
150,000
–
80,000
30,000

24,094
23,040
607
28
–
–
–
246,000
–
–
80,000
30,000

SCHEDULE ‘O’ (Contd.)

14. LICENSED AND INSTALLED CAPACITY

(As certified by the management)

(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
High/Linear Low Density Polyethylene
(f)
(Swing Plant)

(g) Polyester Filament Yarn/Polyester Chips
(h)

(i) Mono Ethylene Glycol
(ii) Higher Ethylene Glycol
(iii) Ethylene Oxide
Linear Alkyl Benzene

(i)
(j) Man-made Fibre spun yarn on worsted

system (Spindles)

(k) Man-made Fibre on cotton system (Spindles)
(l)

(m)

(n)

(i) Man-made Fabrics (Looms)
(ii) Knitting M/c
(i) Chlorine
(ii) Caustic Soda
(iii) Hydrogen
(i) Paraxylene
(ii) Orthoxylene
LDPE

(o)
(p) Poly Ethylene Terephthalate
(q) Polyester Staple Fibre Fill

N.A. - Delicensed vide notification No 477(E) dated 27th July 1991 and press note No. 1 (1998 series), dated

8th June, 1998.
Includes 32,300 MT based on average Denier of 40.

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘O’ (Contd.)

15. The Department of Company Affairs, Government of India vide its Order No. 46/12/2000/CL-III dated May 3, 2000 and issued
under Section 211 (4) of the Companies Act, 1956 has exempted the company from publication of certain information in the
Balance Sheet viz. disclosure of nature of security and terms of redemption of secured loans, balances with non scheduled
banks, amounts due to small scale industrial undertakings and in the Profit and Loss Account under paras 3(i)(c), 3(i)(d),
3(ii)(a)(1) and (2), 3(ii)(b), 3(x)(a), 3(x)(b) and 4-D(c) of Part II, Schedule VI to the Companies Act, 1956.

16. PRODUCTION MEANT FOR SALE

Products

Fabrics
Polyester Filament Yarn
PET
Polyester Staple Fibre
Fibre Fill
PTA
LAB
Normal Paraffin
Ethylene Glycol
PVC
Ethylene
Paraxylene
Propylene
Benzene
Xylene
Orthoxylene
Toluene
PE
PP
Crude Oil
Gas

Unit

1999-2000

Meters in lacs
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
BBTU

309.62
2,43,755
73,786
3,13,129
17,367
6,06,023
1,12,608
2,133
2,08,282
2,89,848
40,362
5,00,220
–
1,88,267
28,583
38,978
58,645
3,82,218
6,19,397
3,42,138
30,780

1998-99

352.09
2,32,278
67,132
2,63,381
11,746
4,66,913
99,789
8,719
2,07,876
2,74,476
34,277
–
915
1,22,123
31,823
-
59,967
3,64,676
3,76,924
3,13,134
24,209

17. SALES (excluding inter divisional transfers)

Products

Unit

1999-2000

1998-99

Quantity

Rs. in crores

Quantity

Rs. in crores

Fabrics
Polyester Filament Yarn
PET
Polyester Staple Fibre
Fibre Fill
PTA
LAB
Normal Paraffin
Ethylene Glycol
PVC
Ethylene
Paraxylene
Propylene
Benzene
Xylene
Orthoxylene
Toluene
PE
PP
Crude Oil
Gas
Petroleum Products
Others

Meters. In lacs
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
BBTU

365.17
2,51,349
78,454
3,43,009
18,887
6,05,423
1,10,544
2,133
2,08,864
2,58,096
40,362
4,76,069
–
1,74,147
28,532
35,315
58,245
3,65,462
6,09,023
3,42,138
30,780

377.95
2,31,831
66,733
2,68,957
14,212
4,98,427
1,02,756
8,719
2,32,845
2,67,676
34,277
–
915
1,26,872
28,388
–
60,126
3,66,961
3,79,659
3,13,134
24,209

271.86
1,820.66
270.94
1,774.16
75.94
1,756.82
569.82
7.53
707.61
1,127.73
130.06
852.97
–
287.84
53.80
73.08
102.85
1,689.91
2,296.27
174.35
309.40
332.86
1,160.70

312.73
1,512.68
214.44
1,285.86
54.61
1,081.04
476.52
31.07
577.96
832.40
59.15
–
1.51
145.52
42.17
–
77.41
1,441.72
1,318.32
107.81
246.42
–
804.81

15,847.16

10,624.15

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘O’ (Contd.)

18. VALUE OF IMPORTS ON C.I.F. BASIS IN RESPECT OF

Raw Materials
Stores, Chemicals and Packing Materials
Capital Goods

19. EXPENDITURE IN FOREIGN CURRENCY

Interest on Foreign Currency Loans
Premium on Redemption of Bonds
Interest on Debentures held by
Non residents on repatriation basis (Gross)
Technical Know-how and Engineering Fees
Oil and Gas Activity
Other Matters

20. EARNINGS IN FOREIGN EXCHANGE

FOB Value of Exports
Interest
Others

21. EXPENDITURE ON RESEARCH AND DEVELOPMENT

Total Revenue Expenditure including amortisation of
deferred cost and Unamortised Deferred Research
and Development Expenditure

22. REMITTANCE IN FOREIGN CURRENCY

ON ACCOUNT OF DIVIDEND

(Rs. in crores)
1998-99
Rs.

1999-2000
Rs.

2,410.05
313.06
114.40

1,766.82
360.76
627.52

1999-2000
Rs.

(Rs. in crores)
1998-99
Rs.

488.69
–

0.01
472.92
133.84
71.81

475.11
53.37

0.39
241.87
158.86
185.18

1999-2000

Rs.

1475.99
472.42
–

(Rs. in crores)
1998-99

Rs.

589.56
370.99
0.70

1999-2000

Rs.

49.65

(Rs. in crores)
1998-99

Rs.

41.30

1999-2000

Rs.

1998-99

Rs.

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
foreign currency cannot be
dividend
ascertained. The total amount remittable in this respect
is given herein below:

remitted

(a) Number of Non-Resident Shareholders

(b) Number of Equity Shares held by them

32,131

18,085

23,52,66,428

24,96,80,562

(c)

(i) Amount of Dividend Paid (Gross) (Rs. in crores)

88.22

87.38

Tax Deducted at Source Rs. Nil (Previous Year Nil)

(ii) Year to which dividend relates

1998-99

1997-98

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Notes on Accounts

23. BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE

Registration Details

Registration No. :

1 1

- 1

9 7

8 6

State Code:

1 1

Balance Sheet Date :

3 1

- 0

3 -

0 0

II. Capital Raised during the year (Amount Rs. crores)

Public Issue :

Bonus Issue :

N I

Rights Issue :

Private Placement :

(Preference Shares)

N I L

2 3 2 . 1 2

Conversion of Bonds :

0 .

0 1

Exercise of warrants

1 2 0 . 0 0

III. Position of Mobilisation and Deployment of Funds (Amount Rs. crores)

Total Liabilities :

2 9

3 6

8 .

8 2

Total Assets :

9 3 6 8 . 8 2

Sources of Funds

Paid-up Capital :

Secured Loans :

Application of Funds

3 4

6 .

4 0

Reserves and Surplus :

2 6 3 6 . 3 5

9 8

8 .

1 1

Unsecured Loans :

5 5 3 2 . 1 3

Net Fixed Assets :

1 5

4 4

8 .

3 1

Investments :

6 0 6 6 . 5 6

Net Current Assets:

9 8

8 .

1 2

IV. Performance of Company (Amount Rs. crores)

Turnover :

2 0

3 0

1 .

3 9

Total Expenditure :

8 8 7 2 . 1 2

Profit Before Tax :

4 6

0 .

2 4

Profit After Tax :

2 4 0 3 . 2 5

Earnings per share in Rs.

2 .

4 3

Dividend : Rs. per share

4 . 0 0

V. Generic Names of Three Principal Products of Company (as per monetary terms)

Item Code No. (ITC Code) :

2 9 1 7 2

0 0

Product Description :

P U R I F I E D

T E R E P H T H A L

I C

A C I D

( P T A )

Item Code No. (ITC Code) :

3 9 0 2 1 0

0 0

Product Description :

P O L Y P R O P Y L E N E

( P P )

Item Code No. (ITC Code) :

5 4 0 2 4 2

0 0

Product Description :

P O L Y E S T E R

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 and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

D. Chaturvedi
Partner

R.J. Shah
Partner

A.D. Ambani
Managing Director

N.R. Meswani
Executive Director

H.R. Meswani
Executive Director

Mumbai
Dated: 5th May, 2000

Rohit C. Shah
Vice President and Company Secretary

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Statement Pursuant to Section 212 of the Companies Act, 1956, relating to
Company’s Interest in Subsidiary Companies.

Name of Subsidiary Company

Devti Fabrics Ltd.

Reliance Industrial
Investments and
Holdings Ltd.

Reliance Ventures Ltd

The financial year of the Subsidiary
Companies ended on

Date from which they become Subsidiary
Companies

31st March, 2000

30th September, 1985

30th December, 1988

7th October, 1999

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.

2,10,070 Equity
Shares of the face value
of Rs. 10 each fully
paid-up

14,75,04,400 Equity
Shares of the face
value of Rs. 10 each
fully paid-up

20,20,000 Equity Shares
of the face value of Rs. 10
each fully paid-up

b. Extent of interest of holding company
at the end of the financial year of the
subsidiary companies.

The net aggregate amount of the
subsidiary companies Profit/(Loss) so
far as it concerns the members of the
holding Company.

a. Not dealt with in the holding

Company’s accounts.

i) For the financial year ended
31st March, 2000
ii) For the previous financial years

of the subsidiary companies since
they became the holding
Company’s subsidiaries.

b. Dealt with in holding company’s

accounts:

i) For the financial year ended

31st March, 2000

ii) For the previous financial years of
the subsidiary Companies since
they became the holding
Company’s subsidiaries

100 %

100%

Rs. 0.10 lacs

Rs. 6,917.11 lacs

Rs. 0.10 lacs

(Rs. 1,195.66 lacs)

Rs. 926.87 lacs

NIL

Rs. 2,673.89 lacs

NIL

For and on behalf of the Board

A.D. Ambani
Managing Director

N.R. Meswani
Executive Director

H.R. Meswani
Executive Director

Mumbai
Dated: 5th May, 2000

Rohit C. Shah
Vice President and Company Secretary

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Cash Flow Statement Annexed to the Balance Sheet
for the period April 1999-March 2000

A: CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit after tax as per P and L Account
Adjusted for :

Net Prior Year Adjustments
Tax Provision
Provision for Doubtful Debts
Profit/(Loss) on Sale of Discarded Assets
Depreciation
Transferred from General Reserve
Adjustment on Sales Tax Assessment
Effect of Exchange Rate Change
Profit on Sale of Investments/Dividend Income
Interest/Other Income
Interest Expenses

Operating Profit before Working Capital Changes
Adjusted for :

Trade and Other Receivables
Inventories
Trade Payables

Cash Generated from Operations

Net Prior Year Adjustments
Taxes Paid

Net Cash From Operating Activities

B: CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments
Sale of Investments
Movement in Investment Management Account
Movement in Loans
Interest Income
Dividend Income

Net Cash Used in Investing Activities

1999-2000

(Rs. in crores)

1998-99

Rs.

2,403.25

1,703.69

0.07
57.00
18.24
7.07
2,533.59
(1,255.23)
–
(331.87)
(79.45)
(594.67)
1,008.00

(1,080.70)
(414.59)
(583.59)

0.65
30.00
23.00
(3.39)
1,776.66
(921.62)
(0.25)
(8.43)
(24.08)
(562.48)
728.81

97.96
(64.65)
30.55

1,038.87

2,742.56

63.86

2,806.42

(0.65)
(25.00)

2,780.77

(1,822.28)
14.83
(3,722.70)
2,053.61
1,660.22
(481.91)
554.78
20.69

(1,722.76)

1,362.75

3,766.00

(2,078.88)

1,687.12

(0.07)
(56.50)

1,630.55

(2,111.89)
21.61
(2,998.41)
2,464.83
(1,179.68)
(1,789.38)
572.11
20.75

(5,000.06)

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Cash Flow Statement Annexed to the Balance Sheet
for the period April 1999-March 2000

C: CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds from Issue of Share Capital (net)
Securitisation of Future Receivables
Redemption of Preference Share Capital
Proceeds from Long Term Borrowings
Repayment of Long Term Borrowings
Short Term Loans
Dividends Paid
Interest Paid
Effects of exchange rate change
Net Cash used in Financing Activities

Net Increase/(Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Closing Balance of Cash and Cash Equivalents

Mumbai
Dated: 5th May, 2000

Auditors’ Report

Rs.

1999-2000
Rs.

(Rs. in crores)
1998-99
Rs.

Rs.

1,129.83
(965.02)
(192.12)
2,645.19
(2,372.83)
631.19
(418.93)
(1,241.95)
338.10
(446.54)

(3,816.05)

4,897.60

1,081.55

74.01
665.02
–
2,875.76
(777.25)
246.86
(385.69)
(1,034.69)
42.06
1,706.08

2,764.09

2,133.51

4,897.60

For and on behalf of the Board

A.D. Ambani
Managing Director

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, 2000 and 31st March, 1999 and found the same in
agreement therewith.

For Chaturvedi and Shah
Chartered Accountants

D. Chaturvedi
Partner

Mumbai
Dated: 5th May, 2000

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Reconciliation of Profit determined under Indian GAAP
to Net Income in accordance with US GAAP

The following reconciliation between accounting principles generally accepted in India ("Indian GAAP") and accounting principles
generally accepted in the United States of America ("US GAAP") has been provided as additional disclosure to assist readers who may
be unfamiliar with Indian GAAP.

It may, however be noted that 91% of the revenue of the Company is 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, 2000

Profit after tax determined under Indian GAAP

Adjustments to conform with US GAAP

Share in Income of Affiliates and Subsidiaries
Leases
Indirect Preoperative Expenses
Foreign Currency
Depreciation
Deferred Income Tax
Issue Expenses

Income before cumulative effect of accounting changes and extraordinary item

Loss on extinguishment of debt - extraordinary item

Cumulative effect of change in depreciation method,

(net of Rs. 310 crores of deferred income taxes)

Consolidated net income in accordance with US GAAP

1 US $= Rs. 43.62 (Exchange rate as on 31.03.2000)

Notes

Rs.
(crores)

US $
(Millions)

1
2
3
4
5
6
7

2,403

517
(5)
(4)
(338)
71
(276)
(4)

2,364

(6)

(495)

1,863

551

118
(1)
(1)
(77)
16
(63)
(1)

542

(1)

(114)

427

Notes to Reconciliation of Profit determined under Indian GAAP with Net Income according to US GAAP.

1. Share in Income of Affiliates and Subsidiaries

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'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.
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.
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.
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.
Foreign Currency
Under Indian GAAP foreign exchange difference relating to acquisition of fixed assets is adjusted to the carrying cost of such
assets. Other foreign exchange differences are recognised in profit and loss account. Under US GAAP, all gains or losses arising
out of foreign exchange differences are required to be included in the determination of net income.

5. Depreciation

Under Indian GAAP indirect preoperative expenses incurred during construction are capitalised. Under US GAAP, such indirect
costs must be expensed as incurred. Depreciation has been adjusted to take account of the adjustments to fixed assets for indirect
preoperative expenses and foreign currencies.

6. 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.
Issue Expenses
Under Indian GAAP debt issue expenses may be capitalised or charged to share premium. Under US GAAP, debt issue cost are
amortised over the life of the debt.

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Loss on extinguishment of debt.
Under Indian GAAP debt extinguishment premiums are adjusted against Securities Premium account. Under US GAAP, such
premium for early extinguishment of debt are expensed as incurred and treated as extraordinary item.

9. Cumulative effect of change in accounting principle

On account of technological advancements and increasing obsolescence, the Company has changed the method of depreciation
for plant and machinery situated at Hazira commissioned between April1, 1995 and March 31, 1999, except Cracker and aromatics
plants, from Straight Line to Written Down value method with effect from April 1, 1999. The new method has been applied
retrospectively to plant and equipment acquisitions of prior years.
Under Indian GAAP consequent to this, there is an additional charge for depreciation during the year relating to previous years and
an equivalent amount has been withdrawn from General Reserve and credited to Profit and Loss Account.
Under US GAAP, the cumulative effect of the change in depreciation method for previous years has reduced the consolidated net
income by Rs. 495 crores (net of Rs. 310 crores in deferred income taxes) after taking into account the adjustments to fixed assets
for indirect preoperative expenses and foreign currencies. Had there been no change in the method of depreciation, the charge for
the year would have been lower by Rs. 274 crores, excluding the charge relating to the previous years.

10. Use of Estimates

The preparation of financial statements in conformity with US GAAP requires the use of estimates. Actual results could differ from
those estimates.

As per our report of even date

For Deloitte Haskins and Sells
Chartered Accountants

P.R. Barpande
Partner

Mumbai
5th May, 2000.

For and on behalf of the Board

A.D. Ambani

Managing Director

N.R. Meswani

Executive Director

International Accountants’ Report

To The Board of Directors
Reliance Industries Limited
We have audited the accompanying reconciliation of Profit after
Tax determined under accounting principles generally accepted
in India ("Indian GAAP") to Consolidated Net Income in
accordance with accounting principles generally accepted in the
United States of America ("US GAAP ("the Reconciliation") for
the year ended 31st March, 2000 for Reliance Industries Limited
("Reliance").
the responsibility of
Reliance's management. Our responsibility is to express an
opinion on the Reconciliation based on our audit.
We conducted our audit in accordance with auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the Reconciliation is free
of material misstatement. An audit also includes assessing the

This Reconciliation

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 Reconciliation 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.

As per our report of even date

For Deloitte Haskins and Sells

Chartered Accountants

P.R. Barpande
Partner

Mumbai
5th May, 2000.

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

Reliance Industries Limited

GROWTH IS L IFE

Financial Ratios

1999-00

1998-99

1997-98

1996-97

1995-96

22.6
20.0
11.5
72.9
2.7
1.8
1.8
2.3

88.1
8.6
3.3
17.5

1.1
0.8
1.5
0.8
5.9
201.4
69.9
104.6
12.3
8.8
1.1

21.8
18.4
34.0
38.4
41.1
164.5
94.2
9.0
32.9
19.5
57.5
15.3
10.9

2.4
57.8
184.6
127.6
15.5

129.9
34.6
40.0
4.0
19.7
22.4
24.8
2.4
9.2
14.1
1.6
213.8

21.9
18.6
11.2
72.5
3.2
2.4
1.9
1.7

91.5
4.5
4.0
16.9

1.5
1.4
1.9
0.9
4.7
253.8
84.8
125.2
14.3
7.7
12.2

19.0
17.1
28.9
10.3
3.1
87.2
91.6
9.7
35.3
15.7
69.6
38.5
20.8

2.2
44.6
169.2
87.5
10.4

129.8
27.1
37.5
3.8
24.5
18.0
2.1
1.0
4.8
7.3
0.8
150.8

21.0
19.0
12.0
73.8
3.0
2.3
1.7
3.7

94.9
2.7
2.4
16.9

1.4
1.2
1.7
0.7
4.6
372.0
107.0
144.7
18.1
10.2
8.5

21.6
17.2
30.6
52.3
24.9
241.9
88.9
10.0
36.6
24.1
84.1
34.5
19.4

1.8
35.0
140.4
77.1
9.9

128.3
24.7
35.0
3.5
22.6
17.6
22.1
1.4
7.2
10.1
1.2
180.3

21.6
19.0
14.7
72.5
3.2
2.6
1.5
3.3

95.6
1.2
3.2
19.2

1.3
1.1
1.6
0.9
4.6
802.2
189.9
240.6
36.5
16.8
19.0

22.3
16.5
29.2
11.9
1.4
24.4
79.7
12.4
45.4
34.1
51.2
41.5
19.2

1.4
26.9
116.4
52.0
8.2

92.0
18.8
32.5
3.3
22.6
14.4
3.6
1.7
8.3
10.9
1.6
244.1

21.7
19.0
16.2
72.2
3.7
2.4
1.9
–

95.6
1.1
3.4
16.5

1.0
0.8
1.4
0.6
5.5
886.7
223.9
228.7
37.0
19.8
29.8

24.7
20.5
25.8
9.9
22.5
(49.6)
113.1
9.8
35.7
21.1
57.2
19.3
10.3

1.3
30.1
105.5
54.6
9.2

89.5
17.6
30.0
3.0
23.8
13.9
19.1
1.2
6.1
7.7
1.2
180.0

Profitability Ratios
EBIDTA / total revenue (%)
Operating profit margin (%)*
PAT / total revenue (%)
Operating expenses / total revenue (%)
Establishment expenses / total revenue (%)
Employee costs / total revenue (%)
Selling expenses / total revenue (%)
Tax / PBT (%)

Domestic revenue / total revenue (%)
Export revenue / total revenue (%)
Other income / total revenue (%)
Cash profit / total revenue (%)

Balance Sheet Ratios

Acid test ratio
Cash and cash equivalents / current liabilities
Current ratio
Debt - equity ratio
Depreciation for the year / average gross block (%)
Capital expenditure / depreciation (%)
Capital expenditure / cash profit (%)
Capital expenditure / pre-tax profit (%)
Capital expenditure / total revenue (%)
Capital expenditure / total assets (%)
CWIP / total assets (%)

Efficiency Ratios

ROE (PAT / average net worth**) (%)
ROCE (PBIT / average capital employed) (%)
Cash profit / average net worth (%)
Growth in total revenue (%)
Growth in net profit (%)
Growth in export revenue (%)
Sales / total assets (%)
Inventory / sales (%)
Inventory turnover ( no of days )
Debtors turnover ( no of days )
EBITDA / net debt (%)
Cash and cash equivalents / total revenue (%)
Cash and cash equivalents / total assets (%)

Employee Related Ratios

Cost per employee (Rs lakhs)
Value added per employee (Rs lakhs)
Total Assets per employee (Rs lakhs)
Sales per employee (Rs lakhs)
PBT per employee (Rs lakhs)

Other Ratios

Book value (Rs.)
Cash Earning Per Share (Rs.)
Dividend (%)
Dividend per share (Rs.)
Dividend payout (%)
EPS - Earning Per Share (Rs.)
EPS growth (%)
Price / book value, end of year
Price / cash earnings, end of year
Price / earnings, end of year
Price / total revenue, end of year
Enterprise value / total revenue (%)

* excluding other income
** adjusted for CWIP and revaluation
EBITDA : Earnings before interest, tax, depreciation, and amortisation
PBIT: Profit before interest and tax
PBT: Profit before tax

PAT: Profit after tax
CWIP: Capital work in progress
ROE: Return on equity
ROCE: Return on capital employed

Reliance Industries Limited

00081020.p65 (005100029.p65) May 25, 2000 @ 12:07 pm

GROWTH IS L IFE

Directors’ Report

To the Members,
Your Directors present the 16th Annual Report together with the
audited Statement of Accounts for the financial year ended
31st March, 2000.
Operations
The Company has earned profit of Rs 0.10 lacs during the year
under review as against Rs. 1.51 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 N. M. Sanghavi 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 Auditors of the Company, M/s. Chaturvedi and Shah and M/s.
Rajendra and 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.

Mumbai
Dated : 17th April, 2000

For and on behalf of the Board

V.M. Ambani

N.M. Sanghavi

J.B. Dholakia

}

Directors

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Auditors’ Report

To
The Members of Devti Fabrics Limited.
We have audited the attached Balance Sheet of DEVTI FABRICS
LIMITED as at 31st March, 2000, and the Profit and Loss Account
of the Company for the year ended on that date annexed thereto
and report that:
1. As required by the Manufacturing and Other Companies
(Auditors' Report) Order, 1988, issued by the Company Law
Board in terms of Section 227 (4A) of the Companies Act,
1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
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.
In our opinion proper books of account as required by
law have been kept by the Company, so far as appears
from our examination of such books.

(b)

(d)

to in this Report are in agreement with the books of
account.
In our opinion, the Balance Sheet and Profit and Loss
Account complies with
the
mandatory accounting standards referred to in Section
211 (3C) of the Companies Act, 1956.

requirements of

the

(e) Although the Company had incurred substantial losses
in the past resulting in the erosion of its net worth, the
accounts of the Company are prepared on a going
concern basis. Subject to above, in our opinion and to
the best of our information and according to the
explanations given to us, the said Balance Sheet and
Profit and Loss Account read together with the notes
thereon, give the information required by the Companies
Act, 1956, in the manner so required and give a true and
fair view :
(i)

in so far as it relates to the Balance Sheet of the
state of affairs of the Company as at 31st March,
2000 and
in so far as it relates to the Profit and Loss Account
of the 'Profit' of the Company for the year ended on
that date.

(ii)

For Chaturvedi and Shah
Chartered Accountants

H.P. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Annexure to Auditors’ 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

The Company has maintained proper records showing full
particulars including quantitative details and situation of its
fixed assets. We are informed that most of the assets have
been physically verified by the management at the year end
and that no material discrepancies were noticed on such
verification. In our opinion, the frequency of such verification
is reasonable having regard to the size of the Company and
the nature of its assets.

2. None of the fixed assets have been revalued during the year.
3. According to the information and explanations given to us,
the stock of raw materials have been physically verified by
the Management during the year. In our opinion, the
frequency of such verification is reasonable.
In our opinion, the procedures of physical verification of
stocks followed by the Management are reasonable and
adequate in relation to the size of the Company and the
nature of its business.

5. As explained to us, there were no material discrepancies

10.

noticed on physical verification of the stocks.
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 the normally accepted accounting
principles and is on same basis as in the preceding year.
The Company has taken an interest free unsecured loans
from the holding Company. It has not taken any other loan,
secured or unsecured, from companies, firms or other
parties as listed in the register maintained under Section 301
of the Companies Act, 1956, or from companies under the
same management within the meaning of Section 370(1B) of
the Companies Act, 1956. The terms and conditions of the
loan are not, in our opinion, prima-facie prejudicial to the
interests of the Company.
The Company has not granted any loans, secured or
unsecured to companies, firms, or other parties listed in the
register maintained under Section 301 of the Companies
Act, 1956 or to companies under the same management
within the meaning of Section 370 (1B) of the Companies
Act, 1956.
The Company has not given any loans and advances in the
nature of loans.
information and
In our opinion and according
explanations given to us, there are adequate internal control

the

11.

procedures commensurate with the size of the Company and
the nature of its business with regard to purchase and sale of
goods.
information and
In our opinion and according
explanations given to us, there are no transactions of
purchase of goods or materials and sale of goods materials
and services made in pursuance of contracts or arrangement
entered in the register maintained under Section 301 and
aggregating during the year to Rs.50,000/- or more in respect
of each party.

the

12. As explained to us, in the opinion of the management the raw
materials 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

15.

question of by products or realisable scrap does not arise.
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 the Provident Fund
and Employees' 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, Sales-Tax, Excise Duty and Customs Duty
were outstanding as at 31st March, 2000 for a period of more
than six months from the date they became payable.

19. According to the information and explanations given to us, no
personal expenses of 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.
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.

21.

For Chaturvedi and Shah
Chartered Accountants

H.P. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Balance Sheet as at 31st March, 2000

Schedule

As at
31st March, 2000
Rs.

Rs.

(Rs. in lacs)
As at
31st March, 1999
Rs.

Rs.

SOURCES OF FUNDS:

Shareholders’ Funds
Capital

Loan Funds
Unsecured Loans
(From Holding Company)

TOTAL

APPLICATION OF FUNDS:

Fixed Assets
Gross Block
Less : Depreciation

Net Block

Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances

Loans and Advances

Less : Current Liabilities and Provisions

Current Liabilities

Net Current Assets

Profit and Loss Account

TOTAL

Notes on Accounts

‘A’

‘B’

‘C’

‘D’

‘E’

‘I’

21.01

1,271.88

1,292.89

1,247.01

1,268.02

30.83
12.58

17.13

18.25

6.50
40.43
0.37

47.30
13.77

61.07

6.96

80.20

1,195.56

1,292.89

54.11

1,195.66

1,268.02

30.46
13.33

1.92
70.96
0.67

73.55
13.75

87.30

7.10

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

H.P. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

R.J. Shah
Partner

V.M. Ambani

N.M. Sanghavi

J.B. Dholakia

}

Directors

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

Profit and Loss Account for the year ended 31st March, 2000

GROWTH IS L IFE

Schedule

1999-2000

(Rs. in lacs)

1998-1999

Rs.

INCOME

Sales

Other Income

Variation in stock

EXPENDITURE

Purchases

‘F’

‘G’

Manufacturing and Other Expenses

‘H’

Depreciation

Profit for the year

Add : Balance brought forward from last year

Balance carried to Balance Sheet

Notes on Accounts

‘I’

128.35

0.01

(4.58)

116.84

5.73

1.11

48.86

2.45

4.58

123.78

55.89

44.54

8.73

1.11

123.68

0.10

(1,195.66)

(1,195.56)

54.38

1.51

(1,197.17)

(1,195.66)

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

H.P. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

R.J. Shah
Partner

V.M. Ambani

N.M. Sanghavi

J.B. Dholakia

}

Directors

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

2,50,000 Equity Shares of Rs. 10 each

Issued, Subscribed and Paid up:

2,10,070 Equity Shares of Rs. 10 each fully paid up

(Held by Reliance Industries Limited,
the Holding Company)

As at
31st March, 2000
Rs.

(Rs. in lacs)
As at
31st March, 1999
Rs.

25.00

21.01

25.00

21.01

(Rs. in lacs)

SCHEDULE ‘B’
FIXED ASSETS

Description

Buildings

Furniture and Fixture

Vehicles

Total

Previous Year

SCHEDULE ‘C’

CURRENT ASSETS

Gross Block

Depreciation

Net Block

As at
1.4.1999
Rs.

Additions

Rs.

Deduc-
tions
Rs.

As at
31.3.2000
Rs.

As at
1.4.1999
Rs.

For the
year
Rs.

Deduc-
tions
Rs.

Up to
31.3.2000
Rs.

As at
31.3.2000
Rs.

As at
31.3.1999
Rs.

27.48

3.34

0.01

30.83

30.93

27.48

10.53

0.37

0.10

2.97

0.01

30.46

30.83

2.04

0.01

12.58

11.51

0.92

0.19

1.11

0.36

0.04

11.45

1.87

0.01

13.33

12.58

16.03

1.10

17.13

18.25

16.95

1.30

18.25

Inventories
(as verified, valued and certified by the management)

Raw materials
Stock in Trade

Sundry Debtors (Unsecured, considered good)*

Over Six months
Others

Cash and Bank Balances

Balance with Scheduled Banks:
In Current Account

As at
31st March, 2000

(Rs. in lacs)
As at
31st March, 1999

Rs.

1.92
-

36.60
34.36

Rs.

1.92
4.58

35.79
4.64

1.92

70.96

0.67

73.55

6.50

40.43

0.37

47.30

* Includes Rs. 12.30 lacs due from Reliance Petroleum Ltd., a Company under the same management

(previous year Rs. 24.64 lacs)

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘D’
LOANS AND ADVANCES

(Unsecured, considered good)

Advances recoverable in cash or in kind
or for value to be received
Deposits

SCHEDULE ‘E’
CURRENT LIABILITIES AND PROVISIONS

Current Liabilities

Sundry Creditors
Other Liabilities

As at
31st March, 2000
Rs.

0.08
13.67

13.75

As at
31st March, 2000
Rs.

0.56
6.54

7.10

(Rs. in lacs)
As at
31st March, 1999
Rs.

0.10
13.67

13.77

(Rs. in lacs)
As at
31st March, 1999
Rs.

-
6.96

6.96

Schedules Forming Part of the Profit and Loss Account

SCHEDULE ‘F’
OTHER INCOME

Profit on sale of fixed assets
Excess provision for expenses no longer required

SCHEDULE ‘G’
VARIATION IN STOCK

Stock at close

Stock at Commencement

SCHEDULE ‘H’
MANUFACTURING AND OTHER EXPENSES

Raw Materials Consumed

Stock at commencement
Add : Purchases

Less : Stock at close

Manufacturing Expenses

Electric Power, fuel and water
Stores and spares written off (net)

Payment to and Provisions for Employees

Retrenchment/Voluntary Retirement Scheme
Compensation

Establishment Expenses

Insurance
Rates and taxes
Payment to Auditors
General Expenses
Loss on sale of assets

00081030.p65

May 25, 2000 @ 12:08 pm

Devti Fabrics Limited

1999-2000
Rs.
0.01
-

0.01

1999-2000
Rs.
-

4.58

(4.58)

1999-2000

Rs.

–

4.50

–

1.23

5.73

Rs.

1.92
–

1.92

4.50
–

0.25
0.44
0.37
0.17
–

(Rs. in lacs)
1998-1999
Rs.
-
2.45

2.45

(Rs. in lacs)
1998-1999
Rs.
4.58

4.58

(Rs. in lacs)

1998-1999

Rs.

1.92
–

1.92

4.46
1.79

0.39
0.20
0.37
0.13
0.02

Rs.

–

6.25

1.37

1.11

8.73

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘I’

1. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation of Financial Statements

ii)

The Financial Statements have been prepared under the Historical Cost Convention, in accordance with the generally
accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the
Company. The same are prepared on a going concern basis.
The Company follows mercantile system of accounting and recognises significant items of income and expenditure on
accrual basis.

b) Fixed Assets and Depreciation

Fixed assets are stated at acquisition cost less accumulated depreciation.

i)
ii) Depreciation is provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the

Companies Act, 1956.

Inventories
Raw Material is valued at cost and Stock in Trade is valued at cost or market value whichever is lower.

The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

3. Auditors’ Remuneration:

(a) Audit fees
(b) Tax audit fees

1999-2000
Rs.

(Rs. in lacs)
1998-1999
Rs.

0.26
0.11

0.37

0.26
0.11

0.37

4. As the company has not carried out any manufacturing activity during the year, information required under paragraphs 3

and 4 of schedule VI of the Companies Act, 1956 is given to the extent applicable.

5. Contingent Liability

Claims against the company/disputed liabilities
not acknowledged as debts for ex-employees.

Licensed and Installed Capacity

As at
31st March,
2000
Rs.

(Rs. in lacs)

As at
31st March,
1999
Rs.

13.99

10.50

Licensed Capacity

Installed Capacity

31.3.2000

31.3.1999

31.3.2000

31.3.1999

N.A.

7. Quantitative Information

UNIT

Quantity

Rs./lacs

Quantity

Rs./lacs

1999-2000

1998-1999

a) Opening stock

Fabrics
b) Closing stock
Fabrics
c) Purchases

Fabrics(net of purchase return)
Pillows

d) Sales

Fabrics
Pillows

e) Raw Material Consumed

Mtrs/lacs

0.09

Mtrs/lacs

Mtrs/lacs
Nos.

–

1.07
32

1.16
32

4.58

–

116.79
0.05

128.29
0.06
–

–

0.09

0.58
–

0.49
–

–

4.58

44.54
–

48.86
–
–

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘I’ (Contd.)

8. Additional information as required under Part IV of Schedule VI to the Companies Act, 1956.

Balance Sheet Abstract and Company's General Business Profile:

1. Registration Details:

Registration No.

3 1 5

9 3

State Code

Balance Sheet Date

3 1

- 0 3 -

0 0

2. Capital raised during the year: (Rs. in lacs)

Public Issue

Bonus Issue

N I

Rights Issue

Private Placement

3. Position of mobilisation and deployment of funds: (Rs. in lacs)

1 1

N I L

2 9 2 .

8 9

Total Assets

1 2 9 2 . 8 9

2 1 .

0 1

Reserves and Surplus

N I L

N I

Unsecured Loans

1 2 7 1 . 8 8

Total Liabilities

Source of Funds:

Paid-up Capital

Secured Loans

Application of Funds:

Net Fixed Assets

Net Current Assets

Accumulated Losses

1 9 5 .

5 6

4. Performance of Company: (Rs. in lacs)

1 7 .

1 3

Investments

8 0 .

2 0

Miscellaneous
Expenditure

Turnover

Profit before tax

1 2 8 .

3 6

Total Expenditure

1 2 8 . 2 6

0 .

1 0

Profit after tax

Earnings per Share (Rs)

0 .

0 5

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

0 . 1 0

N I L

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

H.P. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

R.J. Shah
Partner

V.M. Ambani

N.M. Sanghavi

J.B. Dholakia

}

Directors

Devti Fabrics Limited

00081030.p65

May 25, 2000 @ 12:08 pm

GROWTH IS L IFE

Directors’ Report

To the Members,

Your Directors present the 14th Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2000.

Financial results

Profit before taxation
Less: Provision for taxation

Profit after taxation

1999-2000
Rs.

Rs.

7467.11
550.00

6917.11

(Rs. in lacs)
1998-1999
Rs.

Rs.

883.49
–

883.49

Add :

Taxes for the earlier years
Balance brought forward from last year

(33.23)
926.87

4.19
39.19

Balance carried forward to Balance sheet

Income
During the year, the Company has received dividend income of
Rs. 1314.18 Lacs from its investments.

Dividend
The Directors have not recommended dividend on Equity shares
for the financial year ended 31st March, 2000.

Directors
Shri. Sandeep Junnarkar 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
Being an investment company, there are no particulars furnished
in this report as required under Section 217(1)(e) of the
Companies Act, 1956, relating to conservation of energy and

Mumbai
Dated : 17th April, 2000

893.64

7810.75

43.38

926.87

technology absorption. There was no foreign exchange earnings
or outgo during the year.

Non-Banking Financial Companies
Directions
The Company's application for registration under Section 45 I A
of the Reserve Bank of India Act, 1934, to carry on the business
its
as a Non-Banking Financial
consideration.

(Reserve Bank)

is pending

institution

for

Deposits
The Company has not accepted any public deposit during the
year. Hence, no information is required to be appended to this
report
terms of Non-Banking Financial Companies
Acceptance of Public Deposits (Reserve Bank) Directions, 1988.

Auditors
The Auditors of the Company, M/s. Chaturvedi and Shah and M/
s Rajendra and 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

Alok Agarwal

S. Seth

Sandeep Junnarkar

}

Directors

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Auditors’ 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,
2000, and the Profit and Loss Account of the Company for the
year ended on that date annexed thereto and report that:
1. As required by the Manufacturing and Other Companies
(Auditors' Report) Order, 1988 issued by the Company Law
Board in terms of Section 227 (4A) of the Companies Act,
1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
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.
In our opinion proper books of account as required by
law have been kept by the Company, so far as appears
from our examination of such books.

the

requirements of

The Balance Sheet and Profit and Loss Account referred
to in this Report are in agreement with the books
of account.
In our opinion, the Balance sheet and Profit and Loss
Account complies with
the
mandatory accounting standards referred to in Section
211 (3C) of the Companies Act, 1956.
In our opinion and to the best of our information and
according to the explanations given to us, the said
Balance Sheet and Profit and Loss Account read
together with the notes thereon, give the information
required by the Companies Act, 1956, in the manner so
required and give a true and fair view :
i)

ii)

For Chaturvedi and Shah
Chartered Accountants

Rajesh D. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Annexure to Auditors’ 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

The company has maintained proper records showing full
particulars including quantitative details and situation of its
fixed assets. According to information and explanations given
to us, the fixed assets have been physically verified by the
management at the year end and no material discrepancies
were noticed on such verification as compared to the
available records. In our opinion the frequency of such
verification is reasonable having regard to the size of the
Company and the nature of its assets.

2. None of the fixed assets have been revalued during the year.
3. 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.

4.. The Company has received unsecured loans from its holding
Company. It has not taken any other loan, secured or
unsecured, from companies, firms and other parties as listed
in
the
the register maintained under Section 301 of
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.
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 its Holding
Company, the rate of interest and other terms and conditions
of the said loan are not, in our opinion, prima facie prejudicial
to the interest of the Company.
In respect of the loans and advances in the nature of loans
given by the Company, there are no specific stipulations as to
repayment of principal amounts and interest has been
charged wherever stipulated.
In our opinion and according to the information and

explanations given to us, the Company has not accepted
any deposits from the Public.
In our opinion the Company has an internal audit
arrangement commensurate with its size and the nature of its
business.

9. According to the information and explanations given to us,
the provisions of the Employees' Provident Fund and
Miscellaneous Provisions Act, 1952 and the Employees'
State Insurance Act, 1948 are not applicable to the
Company.

10. 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, 2000 for a period of more
than six months from the date they became payable.
information and
In our opinion and according
explanations given to us, no personal expenses of
employees or Directors have been charged to revenue
account.

the

11.

12. 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.

13. 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.

14. 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.
In our opinion, the Company has maintained proper records
and made timely entries in respect of investments dealt in or
traded by the Company. The Company's investments are
held in its own name, save and except, those in the process
of being transferred in its name.

15.

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Reliance Industrial Investments and Holdings Limited

For Chaturvedi and Shah
Chartered Accountants

Rajesh D. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Balance Sheet as at 31st March, 2000

Schedule

As at
31st March, 2000
Rs.

Rs.

(Rs. in lacs)
As at
31st March, 1999
Rs.

Rs.

SOURCES OF FUNDS:

Shareholders’ Funds

Capital
Reserves and Surplus

Loan Funds

Secured Loans
Unsecured Loans

TOTAL

APPLICATION OF FUNDS:

Fixed Asset

Gross Block
Less : Depreciation

Net Block

Investments

Current Assets, Loans and Advances
Current Assets

Cash and bank balances

Loans and advances

‘A’
‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

Less : Current Liabilities and Provisions

‘H’

Current Liabilities
Provisions

Net Current Assets

TOTAL

Notes on Accounts

‘K’

14,750.44
8,205.91

5,052.05
170,257.50

14,750.44
1,322.03

22,956.35

16,072.47

11,338.77
106,848.55

175,309.55

198,265.90

118,187.32

134,259.79

5.04
0.18

4.57
0.04

4.86

197,966.56

4.53

175,360.56

4.53

1,043.97

1,048.50

203.41
550.61

754.02

4.12

744.43

748.55

41,852.90
0.95

41,853.85

294.48

198,265.90

(41,105.30)

134,259.79

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

Alok Agarwal

S. Seth

Rajesh D. Chaturvedi
Partner

R.J. Shah
Partner

Mumbai
Dated : 17th April, 2000

}

Directors

Assistant
Secretary

Sandeep Junnarkar

Kalpana Srinivasan

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Profit and Loss Account for the year ended 31st March, 2000

INCOME

Income on Investments

Miscellaneous receipts

Interest received
[Tax Deducted at source Rs. NIL,
previous year Rs. NIL]

EXPENDITURE

Schedule

1999-2000

(Rs. in lacs)

1998-1999

Rs.

‘I’

7,980.39

2.74

1,335.02

1,071.75

0.95

344.23

9,318.15

1,416.93

Establishment and Other Expenses

‘J’

Discount on debentures

Provision for diminution in market value
of investments

Interest - Others
Depreciation

32.05

213.28

300.74

1,304.83
0.14

Profit before tax

Less: Provision for taxation

Profit after tax

Add : Taxation for earlier years

Balance brought forward from last year

(33.23)
926.87

Balance carried to Balance Sheet

Notes on Accounts

‘K’

35.69

98.77

0.20

398.74
0.04

4.19
39.19

533.44

883.49

–

883.49

43.38

926.87

1,851.04

7,467.11

550.00

6,917.11

893.64

7,810.75

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

Alok Agarwal

S. Seth

Rajesh D. Chaturvedi
Partner

R.J. Shah
Partner

Mumbai
Dated : 17th April, 2000

}

Directors

Assistant
Secretary

Sandeep Junnarkar

Kalpana Srinivasan

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

As at
31st March, 2000

Rs.

(Rs. in lacs)
As at
31st March, 1999

Rs.

14,99,90,000

Equity Shares of Rs. 10 each.

14,999.00

10,000

11% Non-Cumulative Redeemable
Preference Shares of Rs. 10 each

Issued, Subscribed and Paid up:

14,75,04,400

Equity Shares of Rs. 10 each fully paid up
(Held by Reliance Industries Limited,
the Holding Company)

1.00

15,000.00

1.00

15,000.00

14,750.44

Note: Refer Note of Schedule ‘D’ in respect of option on unissued share capital.

SCHEDULE ‘B’

RESERVES AND SURPLUS

General Reserves:

As per last Balance Sheet

Profit and Loss Account

SCHEDULE ‘C’

SECURED LOANS

As at
31st March, 2000

(Rs. in lacs)

As at
31st March, 1999

Rs.

395.16
7,810.75

8,205.91

Rs.

395.16
926.87

1,322.03

As at
31st March, 2000

(Rs. in lacs)
As at
31st March, 1999

Rs.

12,40,000

Secured, Redeemable, Not-Interest
Bearing, Non-Convertible Debentures

Redemption value
Less : Discount to be written off in future

3,720.00
2,167.95

3,720.00
2,381.23

Secured loan from a Bank

1,552.05

3,500.00

5,052.05

1,338.77

10,000.00

11,338.77

NOTE:

The debentures referred to in A above are redeemable at Rs. 300 each on maturity i.e. on 28-02-2006 (issued at Rs. 100 each)
and are secured by way of a second and subservient charge on the Company's immovable property situated at Mumbai and by
way of pledge of securities.
The loan referred to in B above is repayable not later than 20-04-2000 and is secured by way of pledge of securities.

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘D’

UNSECURED LOANS

A. Zero Coupon Convertible Unsecured

Redeemable Debentures of Rs. 5,000 each

As at
31st March, 2000

Rs.

44,157.15

(Rs. in lacs)

As at
31st March, 1999

Rs.

44,157.15

B. Zero % Fully-Convertible Unsecured Debentures of

27,990.00

Rs. 100 each.

C. Loans from Holding Company

98,110.35

170,257.50

34,701.40

106,848.55

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.

SCHEDULE ‘E’

FIXED ASSETS

Description

Building

Computer

Total

Previous Year

As at
1.4.1999
Rs.

4.57

—

4.57

—

Gross Block
Additions

Rs.

—

0.47

4.57

As at
31.3.2000
Rs.

As at
1.4.1999
Rs.

4.57

0.47

5.04

4.57

0.04

—

0.04

—

Depreciation
for the year

Rs.

0.08

0.06

0.14

0.04

(Rs. in lacs)

Net Block

As at
31.3.2000
Rs.

As at
31.3.1999
Rs.

0.12

0.06

0.18

0.04

4.53

—

4.53

4.45

0.41

4.86

4.53

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘F’

INVESTMENTS

As at
31st March, 2000

Rs.

(Rs. in lacs)
As at
31st March, 1999

Rs.

Investments : (Valued, Verified and Certified by Management)

(A)

Long Term Investments

Quoted:

Equity Shares - Fully paid-up

1,36,22,707
(1,27,14,783)

8,82,370

1,06,63,308
(1,31,63,772)

95,96,69,700
(38,31,84,000)

BSES Ltd. of Rs. 10 each

Kothari Sugars and Chemicals Ltd.
of Rs. 10 each

21,488.64

337.30

Larsen and Toubro Ltd. of Rs. 10 each

10,906.58

Reliance Petroleum Ltd. of Rs. 10 each

136,757.21

Warrant Equity Shares (WES) - Fully paid-up

–
(9,57,96,000)

WES 1999 of Reliance Petroleum Ltd.
of Rs. 10 each.

9,57,96,000

WES 2000 of Reliance Petroleum Ltd.
of Rs. 15 each.

WES 2001 of Reliance Petroleum Ltd.
of Rs. 15 each.

Unquoted:

Equity Shares - Fully paid-up

1,700

3,500

Farvision Securities Private Ltd. of
Rs. 100 each

Neha Real Estates Private Limited of
Rs. 10 each

22,900

Observer (India) Ltd. of Rs. 10 each

1,150

1,200

Reliance Aromatics and Petrochemicals
Pvt. Ltd. of Rs. 10 each

Reliance Energy and Project Development
Pvt. Ltd. of Rs. 10 each

Reliance Telecom Ltd. of Rs. 10 each

Debentures - Fully paid-up

–
(48,06,897)

Reliance Petroleum Ltd.
Unsecured Fully-Convertible Non Interest
bearing Debentures of Rs. 950 each.

–

14,369.40

9.35

24.69

3.79

0.11

0.12

0.01

–

20,107.67

337.30

13,415.30

57,477.60

9,579.60

14,369.40

9.35

24.69

3.79

0.11

0.12

0.01

45,665.52

TOTAL (A)

198,266.60

175,359.86

(B)

Current Investments
Quoted:
Equity Shares - Fully paid-up
200
2,500
Debentures - Fully Paid-up
1,250

HDFC Bank Ltd. of Rs. 10 each
M H Mills and Industries Ltd. of Rs. 10 each

14% Non-Convertible Debentures of
M H Mills and Industries Ltd. of Rs. 45 each.

TOTAL (B)

TOTAL (A+B)
Less : Provision for diminution in the value of investments

0.02
0.94

0.56

1.52

198,268.12
301.56

197,966.56

0.02
0.94

0.56

1.52

175,361.38
0.82

175,360.56

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

The Company’s investment in Reliance Petroleum Ltd., a Company under the same management is towards promoters’
contribution. This investment (excluding investment in 19,15,92,000 Equity shares) is subject to lock in up to June 30,2001 and
the Company has given an undertaking to Financial Institutions for non-disposal of the said investment, till the loans granted by
them to Reliance Petroleum Ltd. are outstanding.

AGGREGATE VALUE OF

Quoted Investments
Unquoted Investments

SCHEDULE ‘G’

CURRENT ASSETS, LOANS AND ADVANCES

Current Assets

Cash and Bank Balances:

Cash on hand
Balance with Scheduled Banks:

In Current Account

Loans and Advances
Advances recoverable in cash or
in kind or for value to be received
Advance Payment of Taxes

SCHEDULE ‘H’

CURRENT LIABILITIES AND PROVISIONS

Current Liabilities

Sundry Creditors
Other Liabilities

Provisions

For Taxation
For Super annuation
For Gratuity
For Leave encachment

As at
31st March, 2000

Book Value

Market Value

As at
31st March, 1999
Market Value

Book Value

Rs.

197,928.49
38.07

197,966.56

745,710.26

129,656.97
45,703.59

175,360.56

165,708.46

As at
31st March, 2000
Rs.

Rs.

(Rs. in lacs)

As at
31st March, 1999
Rs.

Rs.

0.03

4.50

427.14
616.83

0.04

4.08

4.53

4.12

558.60
185.83

1,043.97

1,048.50

744.43

748.55

As at
31st March, 2000
Rs.

Rs.

(Rs. in lacs)

As at
31st March, 1999
Rs.

Rs.

–
203.41

550.00
–
0.17
0.44

342.58
41,510.32

203.41

41,852.90

–
0.39
0.56
–

550.61

754.02

0.95

41,853.85

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Schedules Forming Part of the Profit and Loss Account

SCHEDULE ‘I’

INCOME ON INVESTMENTS

1999-2000

(Rs. in lacs)

1998-1999

Dividend

From Long Term Investments

Profit on Sale of Investments (Net)
From Long Term Investments

From Current Investments

SCHEDULE ‘J’

ESTABLISHMENT AND OTHER EXPENSES

Salary, Wages and Bonus
Contribution to Super annuation, Gratuity etc.
Legal and Professional charges
Trusteeship Fee
Filing Fees(Rs. 360/-)
Travelling expenses
Custodian fees and demat charges
Miscellaneous expenses

Auditors’ Remuneration :

Audit Fees
Tax Audit Fees

Rs.

1,314.18

1,070.31

6,666.21

—

6,666.21

7,980.39

1999-2000

Rs.

1.05
0.53

Rs.
5.71
0.37
0.18
1.00
—
0.22
22.52
0.47

1.58

32.05

—

1.44

Rs.

1.05
0.53

1.44

1,071.75

(Rs. in lacs)

1998-1999

Rs.
6.13
0.95
5.50
0.25
0.01
—
16.86
4.41

1.58

35.69

SCHEDULE ‘K’

1. Significant accounting policies:-

a) Basis of Preparation of Financial Statements

Notes on Accounts

ii)

The financial statements have been prepared under the historical cost convention, in accordance with the generally
accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the
Company.
The Company
and expenditure on accrual basis.

follows mercantile system of accounting and

recognises significant

items of

income

b) Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

i)
ii) Depreciation is provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to

the Companies Act, 1956.

Investments

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.

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

3. 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.

4. 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

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Notes on Accounts

SCHEDULE ‘K’ (Contd.)

5. Additional information as required under Part IV of Schedule VI to the Companies Act, 1956:

Balance Sheet Abstract and Company’s General Business Profile:

1. Registration Details:

Registration No.

4 1 0

8 1

State Code

1 1

Balance Sheet Date

3 1

- 0 3 -

0 0

2. Capital raised during the year: (Rs. in lacs)

Public Issue

Bonus Issue

N I

Rights Issue

Private Placement

N I L

3. Position of mobilisation and deployment of funds: (Rs. in lacs)

Total Liabilities

1 9 8

2 6 5 .

9 0

Total Assets

1 9

8 2 6 5 . 9 0

Source of Funds:

Paid-up Capital

1 4

7 5 0 .

4 4

Reserves and Surplus

8 2 0 5 . 9 1

Secured Loans

0 5 2 .

0 5

Unsecured Loans

1 7

0 2 5 7 . 5 0

Application of Funds:

Net Fixed Assets

4 .

8 6

Investments

1 9

7 9 6 6 . 5 6

Net Current Assets

2 9 4 .

4 8

Accumulated Losses

N I

Miscellaneous
Expenditure

N I L

4. Performance of Company: (Rs. in lacs)

Turnover/Income

Profit before Tax

3 1 8 .

1 5

Total Expenditure

1 8 5 1 . 0 4

4 6 7 .

1 1

Profit after Tax

6 9 1 7 . 1 1

Earnings per Share (Rs)

4 .

6 9

Dividend Rate(%)

N I L

5. Generic names of principal products, services of the Company:

Item Code No.

Product Description

N A

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

Alok Agarwal

S. Seth

Rajesh D. Chaturvedi
Partner

R.J. Shah
Partner

Mumbai
Dated : 17th April, 2000

}

Directors

Assistant
Secretary

Sandeep Junnarkar

Kalpana Srinivasan

Reliance Industrial Investments and Holdings Limited

00081040.p65 May 25, 2000 @ 12:09 pm

GROWTH IS L IFE

Directors’ Report

To the Members,
Your Directors present the 1st Annual Report together with the
Audited Statement of Accounts for the period 27th July, 1999
(date of incorporation) to 31st March, 2000.

Operations
During the period, the Company has earned a profit of Rs. 0.10
lacs. Your Company has not recommended any dividend on
equity shares for the period under review.

Income
During the year, the Company has received interest income of
Rs. 0.41 lacs.

Wholly owned subsidiary of Reliance Industries Ltd
Reliance Industries Limited has acquired entire equity share
capital on 7th October 1999. The Company has therefore
become the wholly owned subsidiary of Reliance Industries Ltd.
consequently, the Company became a deemed public company
under section 43A of the Companies Act, 1956.

Change of name
The Company has changed its name to Reliance Ventures
Limited w.e.f 1st November, 1999.

Directors
Shri L. V. Merchant and Shri M. D. Sudharsan were appointed as
Additional Directors in terms of Section 260 of the Companies
Act, 1956. They shall hold office upto the date of ensuing Annual
General Meeting. Necessary resolutions have been set out in the
notice for appointment of Shri L V. Merchant and Shri M. D.
Sudharsan as directors at the ensuing Annual General Meeting.
Shri Bimal C. Pathak and Ms. Mangal K. Kulkarni, resigned as
Directors of the Company. The Board wishes to place on record
the valuable services rendered by them during their tenure
as Directors.

Conservation Of Energy, Technology Absorption And
Foreign Exchange Earnings And Outgo
Being an investment company, there are no particulars furnished
in this report as required under Section 217(1)(e) of the
Companies Act, 1956, relating to conservation of energy and
technology absorption. There was no foreign exchange earnings
or outgo during the year.
Registration As Non-Banking Financial Company
The Company received certificate of registration under Section
45 I A of the Reserve Bank of India Act, 1934, to commence the
business of Non-Banking Financial institution on 18th October,
1999.

Mumbai
Dated : 17th April, 2000

For and on behalf of the Board

L.V. Merchant

M. D. Sudharsan

}

Directors

Reliance Ventures Limited

00081050.p65 May 25, 2000 @ 12:10 pm

To ,

GROWTH IS L IFE

Auditors’ Report

The Board of Directors of RELIANCE VENTURES LIMITED
We have audited the attached Balance Sheet of Reliance
Ventures Limited as at 31st March, 2000 and the Profit and
Loss Account of the company for the period ended on that date
annexed thereto and report that:
1. As required by the Manufacturing and Other Companies
(Auditors' Report) Order, 1988, issued by the Company Law
Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
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.
In our opinion, proper books of account as required by
law have been kept by the Company so far as appears
from our examination of such books.

the

requirements of

The Balance Sheet and Profit and Loss Account
referred to in this Report are in agreement with the
books of account.
In our opinion, the Balance Sheet and Profit and Loss
Account complies with
the
mandatory accounting standards referred to in Section
211(3C) of the Companies Act, 1956.
In our opinion and to the best of our information and
according to the explanations given to us, the said
Balance Sheet and Profit and Loss Account read
together with the notes thereon, give the information
required by the Companies Act, 1956, in the manner so
required and give a true and fair view:
i)

in so far as it relates to the Balance Sheet of the
state of affairs of the Company as at 31st March
2000, and
in so far as it relates to the Profit and Loss
Account of the 'Profit' of the Company for the
period ended on that date.

ii)

For Chaturvedi and Shah
Chartered Accountants

Rajesh D. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Annexure to Auditors’ 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 has 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 carried out 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.
The Company has taken interest-free unsecured loans from
its holding Company. It has not taken any loans, secured or
unsecured from companies, firms or other parties listed in
the register maintained under Section 301 of the Companies
Act, 1956, or from companies under the same management
within the meaning of sub section (1B) of Section 370 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.
The Company has not granted any loan, secured or
unsecured to companies, firms, or other parties listed in the
Register maintained under Section 301 of the Companies
Act, 1956, or to Companies under the same management
within the meaning of sub section (1B) of Section 370 of
the Companies Act, 1956.
The Company has not given any loans or advances in the
nature of loans during the year, and hence clause regarding
repayment is not applicable.
In our opinion and according
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.
In our opinion and according to the information and
explanations given to us, the Company has not accepted

the

For Chaturvedi and Shah
Chartered Accountants

Rajesh D. Chaturvedi
Partner

Mumbai
Dated : 17th April, 2000

00081050.p65

May 25, 2000 @ 12:10 pm

any deposits from public, as defined under Section 58A of the
Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 during the year.
In our opinion
internal audit
arrangement commensurate with its size and the nature of its
busienss.

the Company has an

9. According to the information and explanations given to us,
the provisions of the Employees' Provident Fund and
Miscellaneous Provisions Act, 1952, and the Employees'
State Insurance Act, 1948 are not applicable to the
Company.

10. 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, 2000 for a period of more than
six months from the date they became payable.
In our opinion and according
information and
explanations given to us, no personal expenses of Directors
have been charged to revenue account.

the

11.

12. The Company is not a Sick Industrial Company within the
meaning of clause (0) of sub section (1) of section 3 of the
Sick Industrial Companies (Special Provisions) Act, 1985.

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.
In our opinion, the Company has maintained proper records
and made timely entries in respect of investments made by
the Company. The Company's investments are held in its
own name.

14.

For Rajendra and Co.
Chartered Accountants

R.J. Shah
Partner

Reliance Ventures Limited

GROWTH IS L IFE

Balance Sheet as at 31st March, 2000

Schedule

(Rs. In lacs)

As at
31st March, 2000

Rs.

SOURCES OF FUNDS

Shareholders' Funds
Share Capital
Reserves and Surplus:
Profit and Loss Account

Loan Funds
Unsecured loan from the Holding Company

Total

APPLICATION OF FUNDS

Investments

Current Assets, Loans and Advances
Current Assets

Cash and Bank balances

Loans and Advances

Less : Current Liabilities and Provisions

Current Liabilities

Sundry Creditors

Provisions

Provision for taxation

Net Current Assets

Miscellaneous Expenditure
(To the extent not written off or adjusted)

Total

Notes on Accounts

202.00

0.10

0.94

0.09

1.03

0.06

0.02

0.08

202.10

141,733.62

141,935.72

141,933.62

0.95

1.15

141,935.72

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

L.V. Merchant

Rajesh D. Chaturvedi
Partner

R.J. Shah
Partner

M. D. Sudarshan

}

Directors

Mumbai
Dated : 17th April, 2000

Reliance Ventures Limited

00081050.p65 May 25, 2000 @ 12:10 pm

Profit and Loss Account for the Period ended 31st March, 2000

GROWTH IS L IFE

Schedule

(Rs. In lacs)

For the period ended
31st March, 2000

INCOME

Interest
(Tax Deducted at source Rs. 0.09 lacs)

EXPENDITURE

Audit fees

Filling fees

General expenses

Miscellaneous Expenditure written off

Profit befor tax

Less : Provision for Taxation

Balance carried to Balance Sheet

Notes on Accounts

Rs.

0.06

0.03

0.02

0.18

Rs.

0.41

0.29

0.12

0.02

0.10

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

L.V. Merchant

Rajesh D. Chaturvedi
Partner

R.J. Shah
Partner

M. D. Sudarshan

}

Directors

Mumbai
Dated : 17th April, 2000

00081050.p65

May 25, 2000 @ 12:10 pm

Reliance Ventures Limited

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

20,20,000
4,80,000

Equity Shares of Rs.10 each
Unclassified Shares of Rs.10 each

Issued, Subscribed and Paid up:

20,20,000

Equity Shares of Rs.10 each fully paid up
(held by Reliance Industries Limited,
the Holding Company)

SCHEDULE ‘B’

INVESTMENTS

Long Term Investments (other Investments)
Unquoted
In Debentures - fully paid up
(Zero coupon Optionally Fully Convertible Debentures
of Rs.1000 each)

42,00,000
3,21,000

28,84,042

33,94,160
33,94,160

Reliance Polyolefins Pvt. Ltd.
Reliance Chemicals Pvt. Ltd.
- (Series I)
Reliance Chemicals Pvt. Ltd.
- (Series II)
Reliance Aromatics and Petrochemicals Pvt. Ltd.
Reliance Energy and Project Development Pvt. Ltd.

(Rs. in lacs)
As at

31st March, 2000
Rs.

202.00
48.00

250.00

202.00

(Rs. in lacs)
As at

31st March, 2000
Rs.

42,000.00
3,210.00

28,840.42

33,941.60
33,941.60

141,933.62

Reliance Ventures Limited

00081050.p65 May 25, 2000 @ 12:10 pm

GROWTH IS L IFE

Schedules Forming Part of the Balance Sheet

SCHEDULE ‘C’

CURRENT ASSETS, LOANS AND ADVANCES

Current Assets
Cash and Bank Balances
Balance with Bank
In Current Account with a Scheduled Bank

Loans and Advances
Advances recoverable in cash or in kind or
for value to be received

SCHEDULE ‘D’

MISCELLANEOUS EXPENDITURE

Preliminary Expenses
Less: Written off during the period

(Rs. in lacs)
As at

31st March, 2000
Rs.

0.94

0.09

1.03

(Rs. in lacs)
As at

31st March, 2000
Rs.

1.33
0.18

1.15

Notes on Accounts

Schedule 'E'

SIGNIFICANT ACCOUNTING POLICIES

a) General

The financial statements have been prepared in accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956.

b) Revenue recognition

The Company follows mercantile system of accounting and recognises significant items of income and expenditure on
accrual basis.

c) Preliminary expenses are amortised over a period of five years on pro-rata basis.

The Company was incorporated on 27th July, 1999 and the Accounts are therefore prepared for the period 27th July,
1999 to 31st March, 2000. This being the first financial year of the Company, no corresponding figures for the previous
year are available.

Consequent to fresh Certificate of Incorporation dated 1st November, 1999 received from the Registrar of Companies
Maharashtra, name of the Company has been changed from "Reliance Fertilizers Private Limited" to "Reliance Ventures
Private Limited".

During the year the Company became a Public Limited Company by virtue of Section 43A of the Companies Act, 1956.

As the Company is not a manufacturing company, information required under paragraphs 3 and 4 of Schedule VI of the
Companies Act, 1956 are given to the extent applicable.

00081050.p65

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Reliance Ventures Limited

GROWTH IS L IFE

Notes on Accounts

Schedule 'E' (contd..)

Balance sheet abstract and Company's General Business Profile as per Part IV of Schedule VI to the Companies Act,
1956.

1. Registration Details:

Registration No.

1 2 1 0

0 9

State Code

1 1

Balance Sheet Date

3 1

- 0 3 -

0 0

2. Capital raised during the year: (Rs. in lacs)

Public Issue

Bonus Issue

N I

Rights Issue

N I L

Private Placement

2 0 2 . 0 0

3. Position of mobilisation and deployment of funds: (Rs. in lacs)

Total Liabilities

1 4 1

9 3 5 .

7 2

Total Assets

1 4

1 9 3 5 . 7 2

Source of Funds:

Paid-up Capital

Secured Loans

Application of Funds:

2 0 2 .

0 0

Reserves and Surplus

0 . 1 0

N I

Unsecured Loans

1 4

1 7 3 3 . 6 2

Net Fixed Assets

N I

Investments

1 4

1 9 3 3 . 6 2

Net Current Assets

Accumulated Losses

0 .

9 5

N I

Miscellaneous
Expenditure

4. Performance of Company: (Rs. in lacs)

Turnover/Income

Profit before Tax

0 .

4 1

Total Expenditure

0 .

1 2

Profit after Tax

Earnings per Share (Rs)

0 .

0 0

5 3

Dividend per Share (Rs)

5. Generic names of principal products, services of the Company:

Item Code

Product Description

N A

1 . 1 5

0 . 2 9

0 . 1 0

N I L

As per our Report of even date

For and on behalf of the Board

For Chaturvedi and Shah
Chartered Accountants

For Rajendra and Co.
Chartered Accountants

L.V. Merchant

Rajesh D. Chaturvedi
Partner

R.J. Shah
Partner

M. D. Sudarshan

}

Directors

Mumbai
Dated : 17th April, 2000

Reliance Ventures Limited

00081050.p65 May 25, 2000 @ 12:10 pm

GROWTH IS L IFE

Investor Guide

Share Buyback - Frequently Asked
Questions

•

the

Reliance has announced
largest ever share buyback
programme in India. As part of the ongoing investor relations
programme, Reliance's management and investor relations team
have met large numbers of retail and institutional, domestic and
international, investors, ever since the company announced the
share buyback programme on April 12, 2000.
For the benefit and understanding of investors at large, many of
the commonly asked questions, alongwith
the company's
responses, are tabulated below. This is in addition to the detailed
explanatory statement provided as a part of the notice for the
Annual General Meeting, and other information contained in this
annual report.
Why is Reliance proposing to buy back its own
shares ?
The key objectives of RIL's share buyback programme are to:
•

Reward shareholders by returning cash to them, in a tax
efficient, and investor friendly, manner
Endeavour to manage share price volatility, lower "beta"
(relative volatility of the Reliance share compared to the
Sensex), neutralise the impact of pure speculative forces,
and attract longer term investors
Send a powerful signal to the market on perceived under-
valuation of the Reliance share
Improve financial parameters, such as Return of Equity
(ROE), and optimise weighted average cost of capital
(WACC), thereby enhancing global competitiveness
Achieve higher all-round valuation for the Reliance share,
enabling use of the share, in the longer term, as "currency"
for acquisitions
•
Achieve even higher overall shareholder value enhancement
Why has the company proposed an amount of just
Rs. 1,100 crores (over $ 250 million) for the share
buyback programme, when its cash resources are
much larger ?
The maximum amount the company may allocate, at this stage,
for the share buyback is approximately Rs. 3,000 crores (nearly $
700 million).
The company has proposed an allocation of Rs. 1,100 crores
(over $ 250 million) for the buyback, representing over 35% of the
maximum permissible amount. This itself makes the buyback the
largest ever in India.
In the best overall interests of shareholders, the company has
naturally to balance the utilisation of its cash resources for
different objectives, such as capital investments for attractive
future growth opportunities, reduction of debt, distribution to
shareholders, etc. The company has already articulated a capital
allocation framework in this regard, in the Chairman's Speech at
its Annual General Meeting held in June, 1999.
Why has the company proposed a maximum
buyback price of Rs. 303, when it considers the share
price to be under-valued ?
The maximum share buyback price of Rs. 303 represents a
significant 52% premium to the low of Rs. 199, touched as
recently as in March, 2000. The price of Rs. 303 also represents a
22% premium to the average trading range for the Reliance share
for the past year.
This price represents a nominal premium to the price on the day
the company filed the notice with the stock exchanges, giving
intimation of the proposal to consider the share buyback.

Internationally, share buybacks are implemented at or around the
price prevailing at the time of announcement of the buyback.
The maximum price has been specified, in a manner that will lead
to judicious utilisation of shareholders' resources, improvement in
all financial parameters, and to achieve maximisation of overall
shareholder value.
As the company itself is willing to buy its own shares
only up to Rs. 303 per share, should this be
considered as the "cap" price for the share ?
The price of Rs. 303 per share is, conceptually, more in the nature
of a "floor" price, rather than a "cap." This is because the company
itself is willing to invest substantial resources, and to emerge as a
"buyer" upto that price.
Can the company increase either the maximum
amount allocated for the buyback, or the maximum
price specified for this purpose ?
The company may, at any time, call for an extraordinary general
meeting (EGM) of its shareholders, for increasing the maximum
amount allocated for the buyback, and/or the maximum buyback
price, if this is required to be done. This process would typically
entail a timeframe of around 6 to 8 weeks.
How many shares will the company buyback under
this programme ?
Reliance intends to utilise the entire allocated amount of Rs.
1,100 crores (over $ 250 million) to buyback its shares, within a
maximum price of Rs. 303 per share.
The actual number of shares that will be bought back will depend
upon the price at which shares become available for the buyback.
Assuming the entire amount of Rs. 1,100 crores (over $ 250
million) is deployed at the maximum price of Rs. 303 per share,
Reliance will buyback over 3.6 crore shares, from the secondary
markets.
This represents approximately 3.4% of the company's total equity
capital, and obviously, a much larger percentage of the company's
floating stock in the secondary markets.
When will the company actually start buying back
its own shares ?
The resolution for approving the share buyback programme is
being placed before the shareholders of the company at the
company's forthcoming annual general meeting (AGM) on June
13, 2000.
The buyback programme can be launched after the resolution is
approved, subject to completion of necessary formalities, such as
making of a Public Announcement, etc. This would typically
involve a further timeframe of 2 to 3 weeks.
For how long will the company keep buying back
its own shares ?
The shareholders' resolution remains effective for a period of one
year after approval. Reliance can buyback its shares over this
period of one year i.e. till June 12, 2001.
How will the company actually buyback its own
shares ?
The company is proposing to use the "open market" purchases
methodology for buying back its shares. This means the company
will buyback its shares in the secondary market, by placing buying
orders, from time to time, on the electronic screens of the stock
exchanges.
How will I know that Reliance is actually buying back
its shares from time to time ?
Reliance will make a Public Announcement, and publish the same

00081060.p65

May 25, 2000 @ 12:11 pm

Reliance Industries Limited

GROWTH IS L IFE

in leading newspapers, before commencing the share buyback.
In accordance with prevailing SEBI regulations, Reliance's name
will be disclosed as a "buyer" on the exchanges' trading screens,
whenever the company is buying back its own shares, through its
notified broking firms.
Reliance will provide details of the actual share buyback, on a
daily basis, to the stock exchanges. These details will also be
published in leading national newspapers, on a daily basis, as
required by SEBI regulations.
What is the advantage of making "open market"
purchases ?
Internationally, the "open market" purchases methodology is
recognised as the most transparent, and cost and time efficient,
manner of implementing a share buyback.
This method provides maximum flexibility to the company and its
shareholders, and is considered more likely to have a lasting and
positive impact on floating stock, share price performance, etc.
As per SEBI guidelines, the company will make full disclosure, on
a daily basis, of shares actually bought back under this
methodology.
This is also the only share buyback method, under which, the
company's promoters are not allowed to participate in the
buyback, and are restrained from offering/selling any portion of
their own shareholdings in the company.
Is there any possibility that Reliance's promoters
may indirectly sell off their own shares during the
buyback?
Reliance's promoters have made a public statement that they will
not sell any part of their shareholdings in the company, either
under the buyback or otherwise.
Reliance's promoters have, to the contrary, publicly disclosed
their intention to increase their shareholdings in the company,
from time to time, through purchases of shares from the
"creeping acquisition"
secondary markets, utilising SEBI's
provisions.
What will be the impact of the share buyback
programme on Reliance's financial performance?
As a matter of policy, Reliance does not make any comments and/
or projections regarding its future financial performance.
Leading global securities research houses, using their own
proprietary earnings models, have estimated that a share
buyback, as per the proposed terms, will impact Reliance's
financial performance in the following manner:
•

Improvement in Return on Equity (ROE) by 70 to 100 basis
points, to nearly 23%
•
Improvement in Earnings Per Share (EPS) by 2% to 3%
How will the share buyback affect the company's
equity and/or floating stock?
As per the SEBI's guidelines, any shares bought under the share
buyback programme compulsorily have to be cancelled. This will

lead to a reduction in Reliance's equity share capital, to the extent
the shares are bought back.
The buyback will lead to reduction of the floating stock of the
company's shares, to the extent shares are bought back by the
company.
If Reliance wants to return money to its
shareholders, why doesn't it simply increase
dividends?
Under the prevailing corporate and direct taxes environment in
India, share buyback is a more tax efficient way of returning cash
to shareholders, as compared to dividends.
This is because the company has presently to pay a tax of 22% on
the amounts paid as dividends. There is no such tax on the
amount deployed for the share buyback.
The share buyback also provides a higher degree of flexibility as
to the timing and pattern of the cash flows, for the company as
well as the shareholders.
Besides, there are several other advantages of the buyback, as
discussed above, which cannot be achieved by simply increasing
dividends.
If Reliance is talking of returning money to
shareholders, should I understand that the company
can not find sufficient attractive growth
opportunities?
Reliance has significant opportunities for profitable growth in the
future, in its petrochemicals and oil and gas businesses, as well
as in the refining and marketing, telecom, power and other
businesses being pursued by other group companies.
Reliance will continue to pursue all these growth opportunities, in
a manner consistent with the objective of maximising overall
shareholder value.
It is for this reason, Reliance has allocated only a portion of its
overall cash resources for the share buyback programme.
Is there any possibility of Reliance making a fresh
equity offering, to take advantage of the higher share
price that may result because of the buyback ?
As per existing laws, Reliance can not issue any fresh equity
shares, for a minimum period of 2 years, from the date of
completion of the share buyback programme.
I am a long term shareholder in Reliance, and have
no desire to sell my shares to the company. How
does the company's share buyback programme
affect me ?
As you do not wish to sell your shares, you are not required to do
anything. The buyback is intended to achieve the diverse
objectives as described above. Reliance is implementing the
buyback in the interests of enhancing overall shareholder value,
and endeavouring to bring increased returns to millions of its long
term investors.

Nomination facility

The Companies (Amendment) Act, 1999 has introduced through
Section 109A, the facility of nomination to share/debenture/
deposit holders. This facility is mainly useful for all holders holding
the shares/debentures/deposits in single name. In cases where
the securities/deposits are held in joint names, the nomination will
be effective only in the event of the death of all the holders.

Investors are advised to avail of this facility, especially investors
holding securities in single name, to avoid the process of
transmission by law.

Investors holding shares in physical form may send enclosed
nomination form to the registrar and transfer agent of the
company at Hyderabad. However, if the shares are held in
dematerialised form, the nomination has to to be conveyed to your
depository participants directly, as per the format prescribed by
them.

100

Reliance Industries Limited

00081060.p65 May 25, 2000 @ 12:11 pm

GROWTH IS L IFE

Dematerialisation of Securities

The Securities and Exchange Board of India through a Press
Release, dated December 4, 1998, indicated that delivery of
shares of Reliance Industries Limited in dematerialised form will
be compulsory on all stock exchanges with facilities for trading in
electronic form, for all categories of investors with effect from April
5, 1999; the concept of a market lot in respect of the Company's
shares will also stand abolished, with effect from the same date.
During the year, several members particularly Individual including
small shareholders of the Company, availed the facility of
dematerialisation of shares of the Company.

In case you have any queries or seek any clarifications with
regard to the process of dematerialisation of securities or the
functioning of a Depository Participant (DP), you may contact
your nearest IRC of Karvy Consultants Limited (KCL), the
Registrars and Transfer Agents of the Company. The investor
relation officer present there would guide you through the process
of opening an account and help clarify your doubts regarding
trading of securities in dematerialised form.

Reliance was one of the first to offer the facility of transfer cum
demat, once SEBI announced that the shares should be traded
only in electronic form.

In order to facilitate better understanding of the process and to
enable the investor to avail of this facility, the following points may
be noted while lodging documents for transfer-cum-demat.

DOs
•

Lodge documents for transfer together with a request for
simultaneous demat with KCL.
Specify at the IRC counter at the time of lodgement, your
desire for transfer-cum-demat.
Await the confirmation letter from KCL giving details of
shares transferred.
Submit the confirmation letter received from KCL after
transfer with your Depository Participant (DP) along with the
Demat Request Form (DRF).
Sign the DRF in the same manner as signed on the transfer
deed submitted for transfer.
Ensure that the DRF is submitted by you mentioning your
Client ID where the names are in similar pattern as
mentioned in the transfer deed.
Mention the quantity of shares on the DRF that has been
transferred as mentioned in the confirmation letter.
Mention on the DRF the details of the distinctive numbers/
certificate numbers as given in the confirmation letter.
Ensure that the demat request is generated and forwarded by
your DP within the prescribed time as mentioned in the
confirmation letter.

DONT's
•
•

Lodge the documents for transfer with your DP.
Submit a DRF to the DP without the confirmation letter from
KCL.
Submit the DRF without signature of all the joint holders.
Sign the DRF in a different pattern from the signature on the
transfer deed.

•

•
•

If there is a delay in submitting the DRF to your DP, the physical
certificates will be despatched by KCL.

Payment of dividend through Electronic Clearing Service

The Reserve Bank of India has introduced a new method of
payment which provides you an option to collect your dividend/
interest directly through your bank accounts rather than receiving
them through post. Under the new method, your bank account
would be directly credited through the new payment mechanism
and an advice thereof would be issued by us after the transaction
is effected. Your bank branch will credit your account and indicate
the credit entry as "ECS" in your pass book/statement of account.
Initially, only individual transactions upto Rs. 1,00,000 would be
covered under the Scheme. If you maintain more than one bank
account, payment can be received at any one of your accounts.
You do not have to open a new bank account for the purpose. The
highlights of this service are:

Instant credit to the bank account of the Investor through
electronic clearing at no extra cost.

Exposure to delays in postal service avoided.

c. As there can be no loss in transit of the instruments, issue of

duplicate instrument is avoided;

d. Prompt credit of dividend/interest is assured.

e. No chance of fraudulent encashment of instrument.

The new method will enable you to receive the dividend/interest
quickly and safely and will minimize the risk of loss of warrants
sent through post or fraudulent encashment of the same.

If you would like to avail of this new method of payment, you are
requested to fill up the Mandate Form attached herewith. The
information provided by you will be kept confidential and would be
utilized only for the purpose of effecting the payments meant for
you.

This would be an additional mode of payment. You would have the
right to withdraw from this mode of payment by giving an advance
notice of six weeks. If you have furnished the bank account
number and name of the bank and its branch for printing those
details on the dividend/interest warrant in response to our
previous circular, you may still avail this new method of payment in
substitution of your earlier instructions.

The above information may kindly be provided only in the
enclosed format and mailed to the Company's Registrar and
Transfer Agents - M/s. Karvy Consultants Limited, Unit: U-31, 46,
Avenue 4 , Street No. 1, Banjara Hills, Hyderabad 500 034.

It may be noted that this facility is presently made available to the
investors residing at sixteen centres, viz., Mumbai, New Delhi,
Calcutta, Chennai, Ahmedabad, Bangalore, Hyderabad, Pune,
Kanpur, Nagpur, Jaipur, Chandigarh, Patna, Bhubaneswar,
Guwahati and Thiruvananthapuram. As per Reserve Bank of
India (RBI), this service will shortly be extended to 30 more
Centres to include Lucknow, Coimbatore, Amritsar, Ludhiana,
and Baroda. Information from the investors residing in other areas
will be used as and when RBI issues necessary directions to this
effect.

Reliance Industries Limited

101

00081060.p65

May 25, 2000 @ 12:11 pm

GROWTH IS L IFE

Shareholders’ Information

1. Annual General Meeting

- Date and Time
-

Venue

Financial Calendar
(tentative)

3. Book closure date

4. Dividend payment date

(a) Listing of Equity Shares on

June 13, 2000 at 11.00 a.m.
Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020

Annual General Meeting
Results for quarter ending June 30, 2000
Results for quarter ending September 30, 2000
Results for quarter ending December 31, 2000
Results for year ending March 31, 2001

June 13, 2000
Third week of July, 2000
Third week of October, 2000
Third week of January, 2001
Third week of April, 2001

25th April, 2000 to 29th April, 2000, on account of interim dividend

16th May, 2000 onwards

Stock Exchanges at

: Mumbai • Ahmedabad • Bangalore • Calcutta • New Delhi • Chennai • Cochin •

(b) Listing of Non-Convertible

Debentures (Series PPD-III and
PPD-VIII)

Receipts (GDRs) at

6. Stock Code

Kanpur • Pune and the National Stock Exchange (NSE).
Bombay Stock Exchange and National Stock Exchange on Wholesale Debt Market
Segment.

Luxembourg Stock Exchange and traded on PORTAL System (NASDAQ, USA) and
SEAQ System (London Stock Exchange).

Trading Symbol Bombay Stock Exchange
Trading Symbol Bombay Stock Exchange (Demat Segment)
Trading Symbol National Stock Exchange
Trading Symbol National Stock Exchange (Demat Segment)
(For T+5 settlement) and ‘RELIANCEBE’ (For T+1 settlement)

:
:
:
:

‘RIL 325’
‘RILDM500325’
‘RELIANCE EQ’
‘RELIANCEAE’

7. Stock Market Data

Bombay Stock Exchange (BSE)
(In Rs.)

National Stock Exchange (NSE)
(In Rs.)

April 99
May 99
June 99
July 99
August 99
September 99
October 99
November 99
December 99
January 2000
February 2000
March 2000
8. Share price performance in comparison to broad based indices – BSE Sensex and NSE Nifty

Month’s High Price
136.30
191.00
192.45
200.80
195.00
250.00
268.85
241.50
242.50
339.50
380.00
322.50

Month’s Low Price
116.10
130.50
164.85
171.50
166.20
181.60
228.30
214.30
215.25
240.00
311.45
199.00

Month’s High Price
137.95
190.85
196.15
199.80
194.85
250.00
238.20
223.45
220.30
341.90
374.00
329.85

Month’s Low Price
116.05
134.25
165.10
170.15
167.00
182.50
222.00
212.50
216.20
237.50
306.45
197.15

RIL share price performance relative to BSE Sensex based on share price on 31st March, 2000
Period

% Change in

Year to Date
Financial Year 1999-2000
Year-on-Year
2 years
3 years
5 years
10 years

RIL share price
+25%
+139%
+141%
+78%
+141%
+137%
+861%

Sensex
-11%
+36%
+34%
+28%
+49%
+53%
+540%

RIL share price performance relative to Nifty based on share price on 31st March, 2000
Period

% Change in

Year to Date
Financial Year 1999-2000
Year-on-Year
2 years
3 years
5 years

RIL share price
+25%
+139%
+141%
+78%
+141%
+137%

Nifty
-4%
+44%
+42%
+37%
+58%
+54%

RIL relative to Sensex
+36
+103
+107
+49
+92
+83
+320

RIL relative to Nifty
+29
+95
+99
+41
+83
+82

102

Reliance Industries Limited

00081060.p65 May 25, 2000 @ 12:11 pm

GROWTH IS L IFE

9. Registrar and Transfer Agents: (Share :
transfer and communication regarding
share certificates, dividends and
change of address)

Karvy Consultants Ltd.
21, Avenue 4, Street No.1
Banjara Hills
Hyderabad 500 034

10. Share Transfer System

Share transfer requests received in physical form with demat requests are registered
within an average of 10 days from the date of receipt. Share transfer requests received
in physical form without demat requests are registered within an average of 20 days.

11. Distribution of Shareholding as on 31st March, 2000:

12. Dematerialisation of Shares

: Over 64% of the outstanding shares have been dematerialised up to 31st March,

2000.

Trading in Equity Shares of the Company is permitted only in dematerialised form
w.e.f. 5th April, 1999 as per notification issued by the Securities and Exchange Board
of India (SEBI).

Liquidity:
RIL shares are among the most liquid and actively traded shares on the Indian stock exchanges. RIL shares consistently rank among
the top few traded shares, both in terms of number of shares traded, as well as in terms of value. The highest trading activity is
witnessed on the NSE and BSE stock exchanges. Relevant data for the average daily turnover for the financial year 1999-2000 is
given below:

In no. of shares (in lakhs)
In value terms (Rs. crores)
($ million)

Bombay Stock Exchange
(BSE)
67.79
152.57
34.98

National Stock Exchange
(NSE)
89.56
200.16
45.89

BSE + NSE
157.35
352.73
80.86

13. Outstanding GDR/Warrants and

: Outstanding GDRs as on 31st March, 2000 represent 3,44,88,175 shares (6.55%).

Convertible Bonds, Conversion date
and likely impact on the Equity

There are no further outstanding instruments, which are convertible into equity in
the future.

14. Plant locations

•

Patalganga Complex
B-4, Industrial Area, Patalganga
Off Bombay-Pune Road
Near Panvel, Dist. Raigad 410 207
Maharashtra State, India.

• Hazira Complex

Village Mora, Bhatha P.O.
Surat-Hazira Road
Surat 394 510, Gujarat State, India.

• Naroda Complex

103/106, Naroda Industrial Estate
Naroda, Ahmedabad 382 330
Gujarat State, India.

•

Jamnagar Complex
Village Motikhavdi
P.O. Digvijay Gram, Dist. Jamnagar
Gujarat 361 140, India.

15. (i)

Investor Correspondence
For transfer / dematerilisation of
shares, payment of dividend on
shares, interest and redemption
of debentures, and any other
query relating to the shares and
debentures of the Company.

(ii) Any query on Annual Report

Karvy Consultants Ltd.
21, Avenue 4, Street No. 1
Banjara Hills
Hyderabad 500 034

Secretarial Department
"Chitrakoot", 'C' & 'D' Block, Ground Floor
Shree Ram Mills Compound
Ganpatrao Kadam Marg, Worli
Mumbai 400 013

00081060.p65

May 25, 2000 @ 12:11 pm

Reliance Industries Limited

103

GROWTH IS L IFE

List of Investor Service Centres of Karvy Consultants Ltd.

City

STD Code Tel. No.

Fax No.

Agra
Ahmedabad
Allahabad
Alwar
Ambala

Amritsar
Asansole
Bangalore

Bangalore
Baroda
Bellary
Bhopal
Bhubaneshwar
Calcutta
Chandigarh
Chennai
Cochin
Coimbatore
Dhanbad

Erode
Goa
Gulbarga
Guwahati
Gwalior
Hyderabad
Indore
Jabalpur
Jaipur

Jammu
Jamnagar
Jamshedpur

(0562) 352368

(079) 6420422 / 6400528

(05352) 400588
(0144) 22752
(0171) 530891

(0183) 220370 / 551679
(0341) 204968 / 200169

(0562)
(079)
(05352)

(0171)

(0183)

(080) 6621184 / 6621192/

(080)

6621193

(080) 5253249 / 5362930

(0265) 361514 / 363207

(08392) 76073 / 78358

(0755) 554165 /555732
(0674) 500909 / 503777

(033) 4644891 / 4647232

(0172) 705543

(044) 8258034 / 8253445

(0484) 310884 / 322152
(0422) 497562 / 452437
(0326) 302838 / 304068/
303000
(0424) 221671
(0832) 226150 / 228470

(08472) 27635

(0361) 543322
(0751) 321524

(080)
(0265)
(08392)
(0755)
(0674)
(033)

(044)
(0484)
(0422)
(0326)

(0832)
(08472)
(0361)

(040) 3353758 / 3351988

(040)

(0731) 432837
(0761) 312009
(0141) 363321 / 375039 /

(0141)

375099
(0191) 547246
(0288) 540998
(0657) 432064

352368
6565551
400988
--
442929/
445795
229473
--
6621196

5257926
363207
77592
555732
501657
4644866
--
8273181
323104
497562
303021

--
223742
26794
515251
--
3351969
--
--
364660

(0657)

423061

(022) 2855587 / 2855814

(022)

STD Code Tel. No.

City
Jodhpur
Kanpur
Kolhapur
Lucknow
Ludhiana
Madurai
Mumbai (Fort)
Mumbai (Andheri)

Mumbai
(Raheja Centre)
Mangalore
Mysore
Nagpur

(0291) 627918 / 641533
(0512) 357672 /295125
(0231) 651716
(0522) 230273 / 285782
(0161) 424862 / 426112
(0452) 537948

(022) 2675829 / 2676283
(022) Voice Mail

9729044
6367226 / 6369044

(0824) 492302
(0821) 510781
(0712) 537531 / 538131
533428

New Delhi

(011) Toll Free

1600157777
5154978 / 5154940

Patna
Pondicherry
Pune
Rajahmundry
Rajkot
Ranchi
Rourkela
Salem
Shimoga
Solapur
Sirsi
Surat
Tanjore
Varanasi
Vijayawada
Visakhapatnam

(0612) 654020
(0413) 330291

(020) 5530204 / 5

(0883) 74318
(0281) 223733 / 232229
(0651) 203166
(0661) 506116 / 505388
(0427) 419515 / 415898

(08182) 78199

(0217) 311027

(08384) 75319

(0261) 227365 / 226036

(04362) 23406

(0542) 323930
(0866) 436965 / 437250
(0891) 575202 / 573143

Fax No.

--
--
652108
230552
402125
537948
2671237

(0231)
(0522)
(0161)
(0452)
(022)

(022)

6310882

2852215
--
--

(0712)

538133

(011)

(0413)
(020)
(0883)
(0281)
(0651)

(0427)
(08182)
(0217)
(08384)

(0866)
(0891)

5105993
--
330291
323292
494318
232229
201979
--
419515
78199
311219
77929
--
--
--
436241
550328

104

Reliance Industries Limited

00081060.p65 May 25, 2000 @ 12:11 pm

To,
Reliance Industries Limited
C/o Karvy Consultants Ltd.
46, Avenue 4, Street No.1
Banjara Hills
Hyderabad 500 034

GROWTH IS L IFE

Nomination Request Form
(For shares held in physical form)

From

Folio No.

No. of Shares/
Debentures

I am / we are holder(s) of Shares / Debentures of the Company as mentioned above. I/We nominate the following person(s) in whom all
rights of transfer and/or amount payable in respect of shares/debentures shall vest in the event of my/our death.

Nominee’s name

Age

To be furnished in case the nominee is a minor

Date of Birth

Guardian’s Name *

Occupation of
Nominee Tick ((cid:252) )

Nominee’s
Address

Telephone No.

Email Address

Service

Professional

Business

Farmer

Student

Household

Others

Pin Code

Fax No.

Std Code

Specimen signature of Nominee /
Guardian (in case nominee is minor)

* To be filled in case nominee is a minor

Kindly take the aforesaid details on record.

Thanking you,
Yours faithfully,

Name of all the holder(s)
(as appearing on the Certificate(s)

Signature as per specimen
recorded with company

Sole /
1 st holder

2nd holder

3rd holder

4th holder

Signature of two Witnesses

00081060.p65

May 25, 2000 @ 12:11 pm

Name and Address

Signature with date

Reliance Industries Limited

105

INSTRUCTIONS :

GROWTH IS L IFE

Please read the instructions given below very carefully and follow the same to the letter. If the form is not filled as
per instructions, the same will be rejected.

The nomination can be made by individuals only. Non individuals including society, trust, body corporate, partner-
ship firm, Karta of Hindu Undivided Family, holder of power of attorney cannot nominate. If the shares / deben-
tures are held jointly all joint holders will sign (as per the specimen registered with the Company) the nomination
form.

A minor can be nominated by a holder of shares / debentures and in that event the name and address of the
Guardian shall be given by the holder.

The nominee shall not be a trust, society, body corporate, partnership firm, Karta of Hindu Undivided Family, or a
power of attorney holder. A non-resident Indian can be a nominee on re-patriable basis.

Transfer of share/debenture in favour of a nominee and repayment of amount to nominee shall be a valid discharge
by a company against the legal heir.

Only one person can be nominated for a given folio.

Details of all holders in a folio need to be filled; else the request will be rejected.

The nomination will be registered only when it is complete in all respects including the signature of (a) all regis-
tered holders (as per specimen lodged with the company) and (b) the nominee.

Whenever the Shares / Debentures in the given folio are entirely transferred or transposed with some other folio,
then this nomination will stand rescinded.

10.

Upon receipt of a duly executed nomination form, the Registrar and Transfer Agent of the company will register the
form and allot a registration number. This number and folio no. should be quoted by the nominee in all future
correspondence.

11.

The nomination can be varied or cancelled by executing fresh nomination form.

12.

The company will not entertain any claims other than those of a registered nominee, unless so directed by
a Court.

FOR OFFICE USE ONLY

Nomination Registration Number

Date of Registration

Checked by and Signature of Employee

106

Reliance Industries Limited

00081060.p65 May 25, 2000 @ 12:11 pm

GROWTH IS L IFE

ELECTRONIC CLEARING SERVICES (ECS) MANDATE FORMAT

To
Karvy Consultants Limited
Unit : U-31, 46, Avenue 4 , Street No. 1, Banjara Hills
Hyderabad 500 034

Dear Sirs,

FORM FOR ELECTRONIC CLEARING SERVICES FOR PAYMENT OF DIVIDEND/INTEREST.

Please fill-in the information in CAPITAL LETTERS in ENGLISH ONLY. Please TICK (cid:254) wherever is applicable.

For shares held in physical form
Master
Folio No.

For shares held in electronic form

---------------- FOR OFFICE USE ONLY --------

ECS
Ref.No.

DP. Id

Client Id

Name of
First holder

Bank name

Branch name

Branch code

(9 Digits Code Number appearing on the MICR Band of the cheque supplied by the Bank). Please attach a
xerox copy of a cheque or a blank cheque of your bank duly cancelled for ensuring accuracy of the banks
name, branch name and code number.

Account type

----Ł

Savings

Current

Cash Credit

A/c. No. (as appearing
in the cheque book)

----Ł

Effective date of this
mandate

----Ł

I, hereby, declare that the particulars given above are correct and complete. If any transaction is delayed or not
effected at all for reasons of incompleteness or incorrectness of information supplied as above, Karvy Consultants
Limited, will not be held responsible. I agree to avail the ECS facility provided by RBI, as and when implemented by
RBI/Reliance Industries Limited.

I further undertake to inform the Company any change in my Bank/branch and account number.

Dated:
Note : On dematerialisation of existing physical shares, for which you have availed ECS facility, the above form needs to

(Signature of First holder)

be re-submitted.

00081060.p65

May 25, 2000 @ 12:11 pm

Reliance Industries Limited

107

GROWTH IS L IFE

108

Reliance Industries Limited

00081060.p65 May 25, 2000 @ 12:11 pm

GROWTH IS L IFE

ATTENDANCE SLIP

Reliance Industries Limited
Registered Office: 3rd floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021.

PLEASE FILL ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.
Joint shareholders may obtain additional Slip on request.

DP. Id*

Client Id*

NAME AND ADDRESS OF THE SHAREHOLDER
No. of Share(s) held:

Master Folio No.

I hereby record my presence at the 26TH ANNUAL GENERAL MEETING of the company held on Tuesday, the
13th June, 2000 at 11.00 a.m. at Birla Matushri Sabhagrah, New Marine Lines, Mumbai 400 020.

Signature of the shareholder or proxy

* Applicable for investors holding shares in electronic form.

TEAR HERE

Reliance Industries Limited
Registered Office: 3rd floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021.

DP. Id*

Client Id*

I/We

hereby appoint

PROXY FORM

Master Folio No.

being a member/members of Reliance Industries Limited

or failing him

as my/our proxy to vote for me/us and on my/our behalf at the 26th Annual General Meeting to be held on
Tuesday the 13th June, 2000. at 11.00 a.m. or at any adjournment thereof.

Signed this

day of

2000.

* Applicable for investors holding shares in electronic form.

Affix a 30

paise

Revnue

Stamp

Note: The Proxy in order to be effective should be duly stamped, completed and signed and must be deposited at the Registered
Office of the Company not less than 48 hours before the time for holding the aforesaid meeting. The Proxy need not be a member of
the Company.

00081060.p65

May 25, 2000 @ 12:11 pm

Reliance Industries Limited

109

GROWTH IS L IFE

Book Post

To,

If undelivered please return to:

Karvy Consultants Limited
46, Avenue 4, Street No. 1
Hyderabad 500 034
India.
Tel. Nos.: 91-40-3320251/3320751/3312454
Fax No.: 91-40-3311968
E-mail: reliance@indl.vsnl.net.in

110

Reliance Industries Limited

00081060.p65 May 25, 2000 @ 12:11 pm

GROWTH IS L IFE

A n n u a l R e p o r t 1 9 9 9 - 2 0 0 0

Reliance Industries Limited

111

00081060.p65

May 25, 2000 @ 12:11 pm

{{{{{{{{{{

Reliance Industries Limited,

India’s largest private sector enterprise,

is a major player in the Indian Petrochemicals sector.

Reliance’s operations capture value addition

at every stage from producing crude oil and gas to

polyester and polymer products

and are vertically integrated

to the production of textiles.

Reliance has one of the largest

marketing networks in the Indian industry.

All its brands are market leaders.

||||||||||